Building and Engineering Works

STANDARD
CONTRACT AGREEMENT
AND CONDITIONS OF CONTRACT
2009
BUILDING AND ENGINEERING WORKS
With options set out in the Contract Agreement and Conditions of Contract in respect of:
I. The contractor's design obligations;
II. Lump Sum/Remeasurable Works;
III. Pre-Construction Appointment and Services;
IV. Dredging/Reclamation/Marine Works; and
V. Electro-Mechanical Works
New Ministry Conditions
Introduction
The standard form building contracts, consultant appointments and other documents set out in this
publication are the result of a review commissioned by the Ministry of Works in order to update
the previous forms in line with current international best practice. The new contracts reflect the
legal and regulatory requirements of the Kingdom of Bahrain and in a form that is designed to
achieve improved efficiency in the way that the Ministry's projects are designed and built.
The new contracts are not intended to place additional risk on consultants and contractors, and are
designed to help identify risks early and ensure that their time and cost effects can be minimised.
In order to ensure that the new contracts can be easily understood by the staff of the Ministry and
its consultants and contractors, they follow the same format and wording of previous Ministry
forms except where changes are appropriate.
One major change is the integration of the previous alternative forms of building contract into a
single form with a series of options created to deal with, for example, different types of project,
different approaches to pricing and different treatments of design liability.
Other changes that will benefit not only the Ministry but also its consultants and contractors
include:
• An option for early appointment of the contractor to provide preconstruction services such
as surveys, designs, subcontractor/supplier appointments and project programming;
• Creation of Key Dates Schedules to identify and integrate the deadlines to be met by the
Ministry and its consultants and contractors;
• A clearer system for communications between the Ministry, its consultants and contractors
including the option of a Core Group of named individuals authorised together to review
early warning of problems;
• Early evaluation of the time and cost consequences of the Variations so that these do not
result in misunderstandings or later disputes;
• The option of mediation as a less costly and less time consuming means of resolving any
disputes that may arise;
• An option to include a clause on fluctuations.
The above are examples of the changes introduced and the Ministry appreciates the feedback
provided by consultants and contractors in consultation. When the new suite of contracts is used
on future projects, the Ministry is confident that their provisions will be beneficial to all parties.
Acknowledgments
The Ministry of Works of the Government of the Kingdom of Bahrain would like to express its
deepest gratitude to the following ministries, directorates, organizations and persons for the help,
assistance and collaboration provided.
Ministry of Works
• H.E. Fahmi Bin Ali Al-Jowder - Minister of Works
• Mrs. Effat Redha Husain - Assistant Undersecretary, Technical Services

(Chairperson; Committee for Updating Conditions of Contracts)
Committee Members:
Mr. Basheer Mohammed Saleh

Mr. Rod Acosta
Mr. Colin Cunningham
Mr. Khalid Salem Bu Hamood
Mr. Saleh Ghuloom Ali
Mrs. Shaheera Mahmood Zainal
Mr. K.K. Gopinathan
Mrs. Nadia A. Aziz
Other Ministries, Directorates & Organizations
Ministry of Finance
Ministry of Housing
Ministry of Health
Ministry of Education
Ministry of Interior
Ministry of State for Defence (BDF)
Tender Board
Bahrain Chamber of Commerce & Industry
Legal Affairs Directorate
Bahrain Society of Engineers
Baker Wilkins & Smith (Middle East) - Chartered Surveyors
Trowers & Hamlins – Solicitors
Various Contracting Organizations in Kingdom of Bahrain
Various Engineering/QS Consultants in Kingdom of Bahrain
And all other organizations/personnel who contributed in the Updating of Conditions of

Contracts.
Copyright-Ministry of Works SFMinor09

CONDITIONS OF CONTRACT
TABLE OF CONTENTS
Page
FORM OF CONTRACT AGREEMENT 1

APPENDIX TO TENDER 4
CONDITIONS OF CONTRACT PART 1 9
DEFINITIONS
1.1 Definitions 9
1.2 Singular and Plural 15
1.3 Headings 15
1.4 References 15
1.5 Prior Contracts 15
1.6 Working Days 15
INSTRUCTIONS AND COMMUNICATIONS
2.1 Engineer's Authority 15
2.2 Engineer's Representative 16
2.3 Communications in Writing 16
2.4 Core Group and Early Warning (if applicable) 16
2.5 Engineer to Act Impartially 17
2.6 Quantity Surveyor 17
2.7 Employer’s Representative 17
2.8 Failure to comply with Engineer's Instructions 17
2.9 Objection to Engineer's Instructions 18
2.10 Contract Confidential 18
2.11 Language and Calendar 18
ASSIGNMENT AND SUB-CONTRACTING
3.1 Assignment 18
3.2 Sub-Contracting 18
3.3 Specified Sub-Contractors 19
3.4 Sub-Contracting Procedures 19
3.5 Responsibility for Sub-Contractors 19
Copyright-Ministry of Works SFBldgEng09

BAHRAINI AND NON-BAHRAINI RESOURCES
4.1 Bahraini Contracting firms 20
4.2 Bahraini Employees 20
4.3 Non-Bahraini Employees 20
4.4 Agent of Contractor 20
4.5 Bahrain Register of Commerce 20
CONTRACT DOCUMENTS
5.1 Documents and Discrepancies 21
5.2 Order of priority 21
SUPPLY AND CUSTODY OF DRAWINGS AND DOCUMENTS
6.1 Copies of Drawings and Specifications provided by the Engineer 21
6.2 Copies of Drawings and Specifications provided by the Contractor 22
6.3 Contractor's Notice of required Drawings and Specifications 22
SUPPLEMENTARY DRAWINGS AND CONTRACTOR’S DRAWINGS
7.1 Drawings and Specifications issued by the Engineer 22
7.2 Drawings and Specifications submitted by the Contractor 22
7.3 Contractor's Designers 23
7.4 Detail of Contractor's Drawings and Specifications 23
7.5 Review and Approval of Contractor's Drawings and Specifications 23
CONTRACTOR'S RESPONSIBILITIES
8.1 Contractor's General Responsibilities 24
8.2 Design and Build (if applicable) 24
8.3 Limited Contractor Design (if applicable) 24
8.4 Statutory Liabilities 24
8.5 Checking of Site Investigations 24
8.6 Satisfaction of Engineer 24
8.7 Sufficiency of Tender 25
SECURITY
9.1 Performance Bond 25
9.2 Adjusted Performance Bond 25
9.3 Advance Payment Guarantee 26
9.4 Parent Company Guarantee 26
9.5 Failure to provide Security 26
9.6 Duration and Cost of Security 26
9.7 Approved Banks or Insurance Companies 26

SITE
10.1 Inspection of Site 26
10.2 Adverse site conditions (if applicable) 27
SETTING OUT
11.1 Setting-out 27
EXCAVATED MATERIALS
12.1 Excavated Materials and Finds 27
ANTIQUITIES
13.1 Antiquities 28
13.2 Instructions as to Antiquities 28
PROGRAMME
14.1 Programme 28
14.2 Revised Programme 28
14.3 Approval of Programme 29
14.4 Key Dates Schedule (if applicable) 29
EMPLOYEES
15.1 Contractor’s Supervision 29
15.2 English speaking capability 29
CONTRACTOR’S EMPLOYEES
16.1 Contractor’s Employees 29
16.2 Removal of Persons from Works and Site 30
LABOUR LAWS
17.1 Compliance with Labour Laws 30
17.2 Housing of labour 30
17.3 Festivals and Religious Customs 30
TRAINING
18.1 Training 30
18.2 Control of Employer's Staff 31

HEALTH AND SAFETY
19.1 Health and Safety 31
19.2 Security, Fencing and Lighting 31
19.3 Safety and protection of the Environment 32
19.4 Epidemics 32
19.5 First Aid 32
19.6 Accidents 32
RISK AND INSURANCE
20.1 Care of Works 33
20.2 Excepted Risks 33
INSURANCE OF THE WORKS
21.1 Insurance of Works 34
21.2 Application of Insurance Monies 34
21.3 Responsibility for amounts not recovered 35
DAMAGE TO PERSONS AND PROPERTY
22.1 Damage to Persons and Property 35
THIRD PARTY INSURANCE
23.1 Third Party Insurance 36
23.2 Cross Liabilities clause 36
23.3 Professional Indemnity Insurance/Product Liability Insurance 36
ACCIDENT OR INJURY TO WORKMEN
24.1 Accident or Injury to Workmen 36
24.2 Insurance against Accident or Injury to Workmen 37
EVIDENCE AND TERMS OF INSURANCE
25.1 Evidence and terms of insurances and Approved Insurance Companies 37
25.2 Adequacy of insurances 37
25.3 Remedy on Contractor’s Failure to Insure 37
LAWS
26.1 Proper Law 38
COMPLIANCE WITH LAWS
27.1 Compliance with Laws 38
27.2 Giving of Notices and Payment of Fees 38

INTELLECTUAL PROPERTY RIGHTS
28.1 Intellectual Property Rights 38
28.2 Licence 39
28.3 Liability for Drawings and Specifications 39
28.4 Ownership of Drawings and Specifications 39
28.5 Royalties 39
CONDUCT OF WORKS
29.1 Interference with Traffic and Adjoining Properties 39
EXTRA ORDINARY TRAFFIC & WATERBORNE TRAFFIC
30.1 Extraordinary Traffic 40
30.2 Waterborne Traffic 40
OPPORTUNITIES FOR OTHER CONTRACTORS
31.1 Opportunities for other Contractors 40
KEEP SITE CLEAR
32.1 Contractor to keep Site Clear 40
CLEARANCE OF SITE ON COMPLETION
33.1 Clearance of Site on Completion 41
CONDUCT OF PERSONNEL
34.1 Alcoholic Liquor or Drugs 41
34.2 Arms and Ammunition 41
34.3 Disorderly Conduct 41
34.4 Site Facilities 41
QUALITY CONTROL
35.1 Quality of Materials and Workmanship and Tests 42
35.2 Contractor assistance 42
35.3 Testing before release 42
SAMPLES, INSPECTONS, TESTING
36.1 Cost of Samples 42
36.2 Inspection and Testing 43
36.3 Dates for Inspection and Testing 43
36.4 Cost of Tests 43
36.5 Additional Tests 43

INSPECTION OF WORKS
37.1 Inspection of Operations 44
37.2 Rejection 44
37.3 Status of Samples, Tests and Inspections 45
EXAMINATION OF WORKS
38.1 Examination of Work before Covering up 45
38.2 Uncovering and Making Openings 45
REMOVAL OF IMPROPER WORK
39.1 Removal of Improper Work, Materials and Equipment 45
COMMENCEMENT, PROGRESS AND COMPLETION
40.1 Commencement of Works 46
POSSESSION OF SITE
41.1 Possession of Site 46
41.2 Possession non-exclusive 46
SUSPENSION OF WORKS
42.1 Suspension of Works 47
42.2 Suspension lasting more than 90 days 47
42.3 Licences and Facilities 47
42.4 Use of Site only for Purpose of Contract 48
42.5 Access for Maintenance 48
42.6 Restriction of Access to Employer’s Property 48
42.7 Impossibility 48
TIME FOR COMPLETION
43.1 Time for Completion 48
EXTENSION OF TIME
44.1 Extension of Time for Completion 49
44.2 Unavoidable additional work or expenditure 50
44.3 Notification of Claims 51
44.4 Interim Particulars 51
WORKING HOURS
45.1 No night, Friday or Public Holiday work 52

RATE OF PROGRESS
46.1 Rate of Progress 52
PENALTY FOR DELAY
47.1 Penalty for Delay 52
47.2 Reduction of Penalty for Delay 53
TAKING OVER OF WORKS
48.1 Taking Over of Works 53
48.2 Taking Over in Sections 53
48.3 Reinstatement of Surfaces 53
DEFECTS
49.1 Defects Liability Period 54
49.2 Execution of Work of Repair 54
49.3 Cost of Execution of Work of Repair 54
49.4 Remedy on Contractor’s Failure to carry out Work Required 55
49.5 Contractor to Search 55
49.6 Defects Liability Certificate 55
49.7 Unfulfilled Obligations 55
URGENT REPAIRS
50.1 Urgent Repairs 55
VARIATIONS
51.1 Variations 56
51.2 Contractor Proposed Variation 56
51.3 Variation Submission 57
51.4 Engineer's Consideration of Variation 57
51.5 Time and Cost of Variation 57
51.6 Urgent Variations 57
51.7 Minimum effect of Variations 58
51.8 Binding Variations 58
VALUATION OF VARIATIONS
52.1 Valuation of Variations 58
52.2 Power of Engineer to Fix Rates 58
52.3 Entitlement to Payment for Variations 58
52.4 Daywork 59
52.5 Continuation of Works 59

CLAIMS PROCEDURE
53.1 Notice of Claims 60
53.2 Contemporary Records 60
53.3 Failure to Comply 60
53.4 Payment of Claims 60
CONTRACTOR’S EQUIPMENT
54.1 Contractor’s Equipment (if applicable) 60
MATERIALS, GOODS AND EQUIPMENT
55.1 Approval of materials, goods and equipment not implied 61
55.2 Vesting of materials, goods and equipment not on Site 61
55.3 Actions by Contractor 61
55.4 Vesting in Employer 62
55.5 Lien on materials, goods and equipment 62
55.6 Delivery to the Employer of vested materials, goods and equipment 62
55.7 Export Licences 62
55.8 Materials Supplied by Employer 63
55.9 Incorporation in Sub-Contracts 63
REMEASUREMENT
56.1 Quantities 63
WORKS TO BE MEASURED
57.1 Works to be Measured 63
57.2 Measurement Net 64
PROVISIONAL AND PRIME COST SUMS
58.1 Expenditure of Provisional Sums 64
58.2 Expenditure of Prime Cost Sums 64
58.3 Production of Vouchers 65
NOMINATED SUBCONTRACTORS
59.1 Nominated Subcontractors (if applicable) 65

PAYMENT
60.1 Advance Payment Certificate 65
60.2 Monthly Statements 65
60.3 Monthly Payments 66
60.4 Final Account 66
60.5 Retention or Retention Bond 67
60.6 Payment of Retention Money 67
60.7 Interest on Overdue Payments 68
60.8 Correction and withholding of certificates 68
60.9 Copy certificate to Contractor 69
60.10 Currency of Payments 69
60.11 Payment to Contractor’s Bank 69
60.12 Payments due from the Contractor 69
60.13 Contract Price not Subject to Adjustment 69
60.14 Customs Duty 70
WARRANTY AND LIABILITY
61.1 Warranties 70
62.1 Decennial Liability 70
62.2 Cessation of Employer’s Liability 71
REMEDIES AND POWERS
63.1 Insolvency of Contractor 71
63.2 Default of Contractor 71
63.3 Valuation Date of Termination 72
63.4 Payment after Termination 72
63.5 Assignment of Benefit of Agreements 72
DEFAULT OF EMPLOYER
64.1 Default of Employer 73
64.2 Clearance of Site 73
64.3 Payment after termination for Employer default 73
CORRUPTION
65.1 Prevention of Corruption 74

SPECIAL RISKS
66.1 Special Risks (if applicable) 74
DISPUTES
67.1 Settlement of Disputes 74
67.2 Mediation (if applicable) 75
67.3 Arbitration 75
67.4 Arbitration rules 75
ANNEX 1 To Conditions of Contract - Form of Advance Payment Guarantee 77

ANNEX 2 To Conditions of Contract - Form of Performance Bond 79
ANNEX 3 To Conditions of Contract - Form of Parent Company Guarantee 81
ANNEX 4 To Conditions of Contract - Form of Vesting Certificate 83
ANNEX 5 To Conditions of Contract - Form of Request for Payment by
Direct Bank Transfer 85
ANNEX 6 To Conditions of Contract - Form of Retention Bond 87
ANNEX 7 To Conditions of Contract - Form of Direct Agreement 89
Conditions of Contract Part 2 - Part 2 A - Conditions of Particular Application 91

2.4 Core Group and Early Warning 91
10.2 Adverse Site Conditions 92
14.4. Key Dates Schedule 92
54 Contractor’s Equipment 93
59 Nominated Sub-Contractors 96
66 Special Risks 98
67.2 Mediation 100
70.1 Fluctuations 102
Appendix 1 To Part 2 A of The Part 2 Conditions - Form of Key Dates Schedule 105
Part 2 B of The Part 2 Conditions - Pre-Construction Appointment And Services 109
Appendix 1 to Part 2 B of the Part 2 Conditions - Pre-Construction Services 112
Appendix 2 to Part 2 B of the Part 2 Conditions - Pre-Construction Costs 113
Part 2 C of the Part 2 Conditions - Dredging and/or Reclamation and/or Marine Works 114
Part 2 D of the Part 2 Conditions - Electro Mechanical Works 115

FORM OF CONTRACT AGREEMENT
(PROJECT TITLE)
CONTRACT NUMBER: [ ]
THIS CONTRACT AGREEMENT is made the [ ] day of [ ] 20 [
]
BETWEEN
1 THE GOVERNMENT OF THE KINGDOM OF BAHRAIN as represented by

THE MINISTRY OF WORKS of P.O. BOX [ ], Bahrain
(the Employer); and
2 [ ] of P.O. BOX [ ] Bahrain,

Commercial Registration Number [ ] (the Contractor).
WHEREAS the Employer requires [ ] (the Works) to be executed and

completed by the Contractor and has accepted the Contractor’s Tender dated [ ] (the
Tender) as modified and/or amplified by the items referred to in Article 2.f below, for the
execution and completion of the Works for the sum of:
Bahrain Dinars [ ] (BD [ ]) (the Contract

Price).
NOW IT IS AGREED as follows:
1.1 In this Agreement words and expressions shall have the same meanings as in the
Conditions of Contract referred to in Article 2.b of this Contract Agreement.
2.1 The following documents shall form and be read and construed as part of the
Contract:
a this Contract Agreement and the Appendix to Tender
b Part 1 of the Conditions of Contract and Part 2 of the Conditions of Contract

(where stated to be applicable)
c the Specifications
d the Drawings
e the Tender
Copyright-Ministry of Works SFBldgEng09 1

f the following modifications to the Tender:
[ ]
g the Key Dates Schedule (Delete if not applicable)
h the Schedule of Rates and Prices/Bill of Quantities (Delete as

appropriate);and
i the Letter of Award (Delete if not applicable).
3.1 In consideration of the payments to be made by the Employer to the Contractor

pursuant to the Contract the Contractor hereby covenants with the Employer to
execute and complete the Works and remedy any defects in accordance with the
Contract.
4.1 In consideration of the execution and completion of the Works and the remedying
of any defects in accordance with the Contract, the Employer hereby covenants to
pay the Contractor the Contract Price at the times and in the manner prescribed by
the Contract.
5.1 The Contractor warrants to the Employer:
a that all materials, goods and equipment supplied under the Contract shall be
new (or as otherwise required by the Contract), free from liens and
encumbrances, free from material or structural defects of any kind, the best
and most suitable of their respective kinds for their intended uses and shall
conform to their descriptions as set out in the Contract, and
b that all workmanship shall conform strictly to the standards laid down in the
Contract and, if no such standards are laid down, to the best accepted
international standards of current professional construction and engineering
practice, and
c that the Works shall not be defective or incomplete by reason of:
i incorrect selection or quantities of materials or equipment;
ii faulty materials, equipment or workmanship;
iii incorrect or incomplete designs or other documents for which the

Contractor is responsible;
iv inadequate Site supervision by the Contractor or incorrect

instructions issued by the Contractor; or

v any act or omission of the Contractor or its Sub-Contractors,
employees, agents or representatives.
6.1 The warranties set out in Article 5 of this Contract Agreement shall not limit and
are in addition to all other express and implied warranties, rights and remedies
provided in or arising out of the Contract or otherwise and the Contractor (and,
subject to the terms of that security, any party providing security for its obligations
under the Contract) shall be liable for the satisfaction and full performance of all
such warranties.
IN WITNESS whereof the authorised representatives of the Employer and the Contractor
have signed this Contract Agreement on the date stated at the beginning of this Contract
Agreement.
SIGNED for and on behalf of

THE KINGDOM OF BAHRAIN
MINISTRY OF WORKS
in the presence of:
SIGNED for and behalf of:

[Contractor]:
in the presence of:

APPENDIX TO TENDER
Matters related to Conditions of Contract

Description Clause Details
The Employer's Representative shall be 2.7 [ ] of [ ]
The Engineer shall be 2.1 [ ] of [ ]
The Quantity Surveyor shall be 2.6 [ ] of [ ]
The Engineer's Representative shall be 2.2 [ ] of [ ]
Limits on Engineer's authority [Delete if 2.1 [ ]

not applicable]
Language 2.11 The [ ] language shall be used

for all correspondence, Drawings,
Specifications, operating and
maintenance instructions and other
documents and communications
Specified Sub-Contractors 3.3 [ ]
Contractor's Design Obligations 8.2 Clause 8.2 (design and build)

& 8.3 applies/does not apply [Delete as
applicable]
Clause 8.3 (design contributions as

stated in the Specifications)
applies/does not apply [Delete as
applicable]
Amount of Performance Bond 9.1 Required/not required
[[ ] % of the Contract Price]
Reduction of Performance Bond 9.2 Applicable/not applicable

proportionate to value of particular parts
of Works subject to extended Defects
Liability Period
Advance Payment Guarantee 9.3 Required/not required
Parent Company Guarantee 9.4 Required/not required

Amount of Insurance of Works 21.1 BD[ ]
Level of cover required for additional 21.1 [ ]% of the value of the Contract
professional and legal fees Price
Minimum amount of third party 23.1 BD [ ] per occurrence with the

insurance number of occurrences unlimited
Minimum amounts of professional 23.3 BD [ ] for each and every claim

indemnity and/or product liability with the number of claims unlimited
insurances (Delete as appropriate)
Works/part of the Works for which 23.3 [ ]

professional indemnity and/or product
liability insurance is to be taken out and
maintained:
Period for issue of Notice to Commence 40.1

Works [and Sections]
Period for commencing the Works [and 40.1 [[ ] days from the Notice to
Sections] Commence]
Time for Completion of Works [and 43.1 [ ] for the Works

Sections] [and the following times for the
following Sections:]
Unavoidable additional work or 44.2 [ ] from the Time

expenditure - initial period for Completion
Amount of penalty 47.1 [ ]
Maximum penalty for delay 47.1 [[ ]% of Contract Price]
Defects Liability Period 49.1 1 Year
Extended Defects Liability Period for 49.1 [ ]

particular equipment/parts of the Works
Materials or equipment in respect of 55.2 [ ]

which payment may be made prior to
delivery to Site
Contract Price is Lump 56 The remeasurement provisions set out

Sum/Remeasurable & 57 in Clause 56 and 57 shall/shall not
apply [Delete as applicable]

Advance payment 60.1 [[ ]% of the Contract Price]
Proportion of advance payment to be 60.2

deducted from each monthly statement
Maximum percentage value of listed 60.3 [[ ]% in respect of materials on Site

materials and [ ]% in respect of duly vested
materials off Site]
Minimum amount of interim certificates 60.3 BD [ ]
Submission of Final Account 60.4 [ ] after the date of the

Taking Over Certificate
Issue of Final Certificate 60.4 [ ] after receipt of the final

account
[ ] after expiry of the period

for submission of the final account
Percentage of Retention Money 60.5 [ ]%
Limit of Retention Money 60.5 [ ]%
Retention Bond 60.5 Acceptable/not acceptable in place of

Retention Money
Discretion of the Engineer to release part 60.6 Applicable/not applicable

of Retention Monies to acknowledge zero
or low levels of defects during extended
Defects Liability Period
Rate of interest on overdue payments 60.7 [ ] % per annum
Extended warranties in respect of 61.1 [ ]

particular equipment/parts of the Works

Part 2 Conditions
If a Clause below is stated to apply the

wording set out in the Part 2
Conditions in relation to that Clause
shall be incorporated in to the
Contract
Core Group and Early Warning 2.4 Clause 2.4 shall apply and the
members of the Core Group shall be:
For the Employer:
For the Engineer:
For the Contractor:
For the Quantity Surveyor:
[Delete if not applicable]
Adverse Site Conditions 10.2 Clause 10.2 applies/does not apply

[Delete as applicable]
Key Dates Schedule 14.4 Clause 14.4 shall apply and the
Employer and the Contractor shall
adhere to the Key Dates Schedule set
out in the Part 2 Conditions [Delete if
not applicable]
Contractor's Equipment 54 Clause 54 applies/does not apply

Nominated Sub-Contractors 59 Clause 59 applies/does not apply

[Delete as applicable] and
Nominated Subcontractors are as
follows:
Special Risks 66 Clause 66 applies/does not apply

Mediation 67.2 Clause 67.2 [applies and the mediator

(if not agreed between the parties)
shall be appointed by [ ]/[does not
apply] [Delete as applicable]
Fluctuations 70.1 Clause 70.1 of the Part 2 Conditions

applicable/not applicable [Delete as
applicable]
Pre-Construction Services Part 2B of the Part 2 Conditions

applicable]
Dredging and/or Reclamation and/or Part 2C of the Part 2 Conditions

Marine Works applicable/not applicable [Delete as
applicable]
Electro-Mechanical Works Part 2D of the Part 2 Conditions

applicable]
Initials of Signatory of Tender: ___________________________

CONDITIONS OF CONTRACT PART 1
DEFINITIONS
1.1 Definitions
In the Contract the following words and expressions shall have the following
meanings, except where the context otherwise requires:
Advance Payment Certificate means an advance payment certificate as referred to

in Clause 60.1
Advance Payment Guarantee means an advance payment guarantee as referred to

in Clause 9.3 and in the form set out in Annex 1 to the Conditions of Contract.
Agent means a commercial agent appointed by the Contractor in accordance with

Bahrain Laws.
Antiquity means any fossil, coin, artefact, remains, structure or other object of
historical, geographical or archaeological interest or value which may be found on
or beneath the Site.
Appendix to Tender means the appendix to the Tender forming part of the
Contract as annexed to the Contract Agreement.
approved means approved in writing and approval means approval in writing.
Authority means any duly constituted Government or municipal or regulatory

authority in Bahrain.
Bahrain means the Kingdom of Bahrain.
CIF or any other such trade term shall have the definition ascribed to it in
“Incoterms” published by the International Chamber of Commerce and current at
the date of the Contract.
COEPP means the Bahrain Committee for Organising Engineering Professional

Practice.
Commencement Date means the date upon which the Contractor receives a Notice
to Commence issued by the Engineer pursuant to Clause 40.1.
Completion means completion of the Works in accordance with the Contract as

necessary for the Employer to use and occupy the Works to the agreed standards.
Conditions of Contract means these Part 1 Conditions of Contract and those Part 2
Conditions stated to apply in the Appendix to Tender

Contract means the Contract Agreement, the Conditions of Contract, the
Specifications, the Drawings, the Tender, any modifications to the Tender listed in
the Contract Agreement, the Key Dates Schedule (if any) and the Schedule of Rates
and Prices/Bill of Quantities.
Contract Agreement means the contract agreement signed by the Employer and
the Contractor and forming part of the Contract.
Contractor means the person or persons, firm or company which has signed the
Contract Agreement as Contractor and includes the Contractor’s successors and
permitted assigns.
Contractor's Equipment means all machinery, appliances and things (other than
Temporary Works) required for the execution of the Works and the remedying of
any defects, but does not include materials, goods or equipment intended to form or
forming part of the Permanent Works.
Contract Price means the sum stated as the Contract Price in the Contract
Agreement, subject to such adjustments as may be made in accordance with the
Contract.
Core Group, if stated in the Appendix to Tender to be applicable, means the

individuals identified as such in the Appendix to Tender as Core Group members,
subject only in each case to replacement in accordance with Clause 2.4a, as set out
in the Part 2 Conditions, and so that references shall apply to each and all Core
Group members.
Cost means all expenditure properly incurred or to be incurred in connection with

the Works whether on or off the Site and shall include all overhead costs unless
otherwise stated in the Schedule of Rates and Prices/Bill of Quantities.
Defects Liability Certificate means a defects liability certificate issued in

accordance with Clause 49.6.
Defects Liability Period means any defects liability period stated by reference to
Clause 49.1 in the Appendix to Tender or in Part 2 C of the Part 2 Conditions.
Direct Agreement means a direct agreement between the Employer and a Sub-
Contractor as referred to in Clause 23.3 and Clause 59.2 c as set out in the Part 2
Conditions (if stated to be applicable in the Appendix to Tender) and in the form set
out in Annex 7 to the Conditions of Contract.
Drawings means the drawings forming part of the Contract including all related
calculations, specifications and technical information and any modification of
such Drawings and such other Drawings as from time to time may be provided or
approved by the Engineer in accordance with Clauses 6 and 7.

Early Warning, if stated in the Appendix to Tender to be applicable, means early
warning in accordance with the system described in Clause 2.4e, as set out in the
Part 2 Conditions.
Employer means the Government of the Kingdom of Bahrain as represented by the

Ministry of Works and the legal successors in title to the Employer.
Employer's Representative means the party named as the Employer's

Representative in the Appendix to Tender or any other Employer's Representative
appointed from time to time by the Employer and notified to the Engineer and the
Contractor.
Engineer means the party named as the Engineer in the Appendix to Tender,
whether its profession is that of an engineer or an architect or any other discipline,
or any other Engineer appointed from time to time by the Employer and notified to
the Contractor to act as Engineer for the purposes of the Contract in place of the
Engineer previously named.
Engineer's Instruction Form means the Employer's standard form on which the
Engineer shall issue its instructions, a blank copy of which has been supplied to the
Contractor.
Engineer’s Representative means the party named as Engineer's Representative in

the Appendix to Tender or any other Engineer's Representative appointed from time
to time by the Engineer to perform the duties referred to in Clause 2.2, whose
authority shall be notified to the Contractor by the Engineer.
Excepted Risks means excepted risks as described in Clause 20.2.
GCC means the Gulf Cooperation Council.
Government means the Government of the Kingdom of Bahrain.
Intellectual Property Rights means all intellectual property rights (including

without limitation patents, trademarks, designs, design rights, copyright, inventions,
trade secrets, know-how and confidential information) and all applications for
protection of any of the same.
Key Dates Schedule, if stated in the Appendix to Tender to be applicable, means

any key dates schedule as described in Clause 14.4 and forming part of the Contract
as set out in the Part 2 Conditions and any modification to such key dates schedule
made in accordance with the Contract.
Laws mean all laws applicable to the Contract and the Works including all
'Statutes', 'Decrees', 'Orders', 'Ordinances', 'Regulations' and 'Bye-laws' of any
Authority in force from time to time in the Kingdom of Bahrain.

Letter of Award means a letter (if any) issued to the Contractor by the Employer
forming part of the Contract confirming that the Employer will enter into a contract
with the Contractor subject to the terms of such letter.
Lump Sum means fixed price and not Remeasurable.
month means a Gregorian calendar month.
Nominated Sub-Contractor if stated in the Appendix to Tender to be applicable,

means any Nominated Sub-Contractor identified in the Appendix to Tender or in
accordance with Clause 59 as set out in the Part 2 Conditions (if stated to be
applicable in the Appendix to Tender) and to whom the Contractor shall sub-
contract any work or services or supplies.
Notice to Commence means a letter to commence the Works or a Section issued in

accordance with Clause 40.1.
Parent Company Guarantee means a parent company guarantee as referred to in

Clause 9.4 and in the form set out in Annex 3 to the Conditions of Contract.
Part 1 Conditions means these Part 1 Conditions of Contract forming part of the
Conditions of Contract.
Part 2 Conditions means the Part 2 Conditions of Particular Application forming

part of the Conditions of Contract where stated to be applicable.
Performance Bond means a performance bond as referred to in Clause 9.1 and in

the form set out in Annex 2 to the Conditions of Contract.
Permanent Works means the permanent works to be executed in accordance with

the Contract.
Pre-Construction Services Appointment, if stated in the Appendix to Tender to

be applicable, means the pre-construction services appointment set out in Part 2 B
of the Part 2 Conditions.
Prices/Bill of Quantities, if listed in Article 2 of the Contract Agreement, means

the priced and completed bill of quantities forming part of the Contract.
Prime Cost Sum means a sum included in the Contract and so designated in the
Schedule of Rates or Prices/Bills of Quantities to be expended in accordance with
Clause 58.2 for the execution of work or the supply of goods, materials or services
which will be carried out but in respect of which for whatever reason the scope of
such work, goods, materials or services has not been determined at the time of
Tender.
Programme means the detailed Programme described in Clause 14.

Provisional Sum means a sum included in the Contract and so designated in the
Schedule of Rates or Prices/Bill of Quantities to be expended in accordance with
Clause 58.1 for the execution of work or the supply of goods, materials or services,
or for contingencies, which sum may be used in whole or in part or not at all at the
direction and discretion of the Engineer.
Public Holiday means any public holiday recognised by the Government.
Quantity Surveyor means the Quantity Surveyor named in the Appendix to

Tender or any other quantity surveyor appointed from time to time by the Employer
and notified to the Contractor to act as Quantity Surveyor for the purposes of the
Contract in place of the Quantity Surveyor previously named.
Remeasurable means remeasurable in accordance with Clauses 56 and 57 as to the

quantities of works, materials, goods and equipment where so stated in the
Schedule of Rates and Prices/Bill of Quantities or otherwise agreed as part of a
Variation in accordance with Clauses 51 and 52.
Request for Payment by Bank Transfer means a request as referred to in Clause

60.11 and in the form set out in Annex 5 to the Conditions of Contract.
Retention Bond means a retention bond as referred to in Clause 60.5 and in the
form set out in Annex 6 to the Conditions of Contract.
Retention Money means the monies retained by the Employer pursuant to Clause
60.5.
Risk Management means a structured approach to ensure that risks are identified
at the earliest opportunity, that their potential impacts are allowed for and that
where possible such risks or their impacts are minimised.
Schedule of Rates and Prices, if listed in Article 2 of the Contract Agreement,

means the schedule of rates and prices forming part of the Contract.
Section means a part of the Works specifically identified in the Appendix to Tender
as a Section.
Site means the land and other places on, under, in or through which the Permanent
Works and/or Temporary Works are to be executed and any other lands and places
provided by the Employer for working space or any other purpose as may be
specifically designated in the Specifications as forming part of the Site.
Special Risks means those risks identified in Clauses 20.2a, b, c, f and g insofar as
they relate to Bahrain.
Specifications means the specifications for the Works forming part of the Contract
and includes the Employer's general and particular Specifications (the latter taking
precedence over the former) and any modification or addition as may from time to
time be provided or approved by the Engineer in accordance with Clauses 1 and 51.
Specified Sub-Contractor means any Specified Sub-Contractor identified in the

Appendix to Tender by reference to Clause 3.3
Sub-Contract means any sub-contract to be entered into between the Contractor

and any Sub-Contractor.
Sub-Contractor means any sub-contractor or entity appointed by the Contractor to

provide any work, services or supplies forming part of or in relation to the Works.
Taking Over Certificate means a certificate issued pursuant to Clause 48.
Temporary Works means all temporary works of every kind (other than
Contractor's Equipment) required in connection with the execution of the Works.
Tender means the tender submitted by the Contractor to the Employer for the
execution of the Works forming part of the Contract subject to the modifications set
out in Article 2.f of the Contract Agreement.
Tests on Completion means the tests specified in the Contract or otherwise agreed
by the Engineer and the Contractor which are to be made by the Contractor before
the Works or any Section are taken over by the Employer.
Time for Completion means the time for completing the execution of and passing
the tests on completion of the Works or any Section or part of the Works as stated
in the Contract, subject to extension under Clause 44, calculated from the
Commencement Date.
Value Engineering means a structured system for the review of the design, supply
and construction process to identify options and scope for improvement, including
reduced capital and/or whole-life costs, improved buildability and improved
functionality.
Variation means a variation to the Works made in accordance with Clauses 51 and
52.
Variation Form means the Employer's standard form for use by the Engineer to
confirm a Variation, a blank copy of which has been supplied to the Contractor.
Variation Submission means a variation submission as described in Clause 51.3.
Vesting Certificate means a vesting certificate as referred to in Clause 55.3 and as

set out in Annex 4 to the Conditions of Contract.

Working Day means Sunday to Thursday inclusive but not including any public
holiday recognised in Bahrain.
Works means the works to be executed in accordance with the Contract including
all obligations of design (subject to Clause 8), supply, construction, completion,
commissioning, taking over and defects rectification.
writing means any manuscript type-written or printed statement.
1.2 Singular and Plural
Words used in the singular shall have the same meaning in the plural and vice
versa.
1.3 Headings
The headings in these Conditions of Contract shall not be taken into consideration
in the interpretation or construction of the Contract.
1.4 References
References in these Conditions of Contract to Clauses and Annexes shall, unless

otherwise stated, be treated as references respectively to Clauses in and Annexes
annexed to these Conditions of Contract.
1.5 Prior Contracts
The Contract supersedes all prior contracts, agreements and understandings

between the parties in relation to the Works and no change termination or attempted
waiver of any of the provisions hereof shall be binding unless in writing and signed
by the party against whom the same is to be enforced. By entering into the Contract
the Contractor is deemed to have waived its general terms and/or conditions of
business (if any).
1.6 Working Days
Whenever the date for the performance of any term, condition, obligation,
covenant, agreement or provision required or provided under the Contract falls on a
date that is not a Working Day, such date shall be extended to the next succeeding
Working Day.
INSTRUCTIONS AND COMMUNICATIONS
2.1 Engineer's Authority
The Contractor shall take instructions and directions only from the Engineer or,
subject to delegation in accordance with Clause 2.2, from the Engineer’s

Representative, in either case using an Engineer's Instruction Form. The Engineer
shall issue such notices, approvals, consents, opinions, instructions, decisions,
certificates, orders and other communications as are specified in or are necessary
pursuant to the Contract. In the event of the Engineer being required under the
terms of its appointment by the Employer to obtain the prior approval of the
Employer in relation to any matter governed by the Contract, particulars of such
requirements shall be set out in the Appendix to Tender.
2.2 Engineer's Representative
The Engineer may from time to time delegate to the Engineer's Representative any
of the powers and authorities vested in the Engineer and shall notify the Employer
and the Contractor of all such delegations. Any communication given by the
Engineer's Representative to the Contractor within the terms of such delegation, but
not otherwise, shall bind the Employer and the Contractor as though it has been
given by the Engineer provided always that:
a failure of the Engineer's Representative to disapprove any work, materials,

goods or equipment shall not prejudice the power of the Engineer thereafter
to disapprove such work, materials, goods or equipment and to order their
rectification, pulling down, removal or breaking up; and
b if the Contractor shall be dissatisfied by reason of any decision of the

Engineer's Representative it shall be entitled to refer the matter to the
Engineer, who shall confirm, reverse or vary such decision within seven (7)
days.
2.3 Communications in Writing
All communications between the Employer or the Employer's Representative or the

Engineer or the Engineer's Representative or the Quantity Surveyor and the
Contractor shall be in writing including any notice, request, submission, decision,
consent, approval, comment, valuation, agreement, opinion and instruction and
shall be effective on the date that they are delivered by hand or by registered post or
by fax to the address of the relevant party as stated in the Appendix to Tender (or in
the case of a non-Bahraini Contractor to the address referred to in Clause 4.4) or as
otherwise duly notified and where the Employer has supplied a copy template form
to use for a specific purpose pursuant to the Contract (including, but not limited to,
the Engineer's Instruction Form and the Variation Form), that form must be used. If
the correct form is not used the communication shall not be valid.
2.4 Core Group and Early Warning (if applicable)
If stated to be applicable in the Appendix to Tender Clause 2.4 as set out in the Part
2 Conditions shall apply and shall be incorporated in the Contract.

2.5 Engineer to Act Impartially
Wherever under the Contract the Engineer is required to exercise its discretion by:
a giving its decision, opinion or consent;
b expressing its satisfaction or approval or dissatisfaction or disapproval;
c determining value; or
d otherwise taking action which may affect the rights and obligations of the
Employer or the Contractor
it shall exercise such discretion impartially, using its professional duty of care,
within the terms of the Contract and having regard to all the circumstances. Any
such decision, opinion, consent, expression of satisfaction or approval or
dissatisfaction or disapproval, determination of value or action may be opened up,
reviewed or revised as provided in Clause 67.
2.6 Quantity Surveyor
The Quantity Surveyor shall advise and assist the Engineer in respect of all
financial and contractual matters relating to implementation of the Contract but the
Quantity Surveyor shall have no authority to issue instructions to the Contractor.
2.7 Employer’s Representative
The Employer’s Representative shall represent the Employer for the purposes of the
Contract if and to the extent of any delegated authority notified by the Employer to
the Engineer and the Contractor but the Employer's Representative shall have no
authority to give instructions to the Contractor.
2.8 Failure to comply with Engineer's Instructions
The Contractor shall promptly carry out any instruction of the Engineer that is
consistent with the Contract, and issued on the Engineer's Instruction Form. If the
Engineer has reason to consider that failure to carry out any such instruction shall
materially adversely affect the Works, and if the Contractor shall not carry out such
instruction within seven (7) days from the date of a notice from the Engineer under
this Clause 2.8 repeating the instruction then the Employer may, subject to Clause
2.9, employ and pay another party to carry out such instruction and the Contractor
shall permit such other party to do so and to enter and use the Site as necessary for
such purpose and any consequent cost additional to the Contract Price shall be
borne by the Contractor by payment to the Employer or by deduction from
payments otherwise due to the Contractor pursuant to Clause 60 or shall be
recoverable as a debt due from the Contractor.

2.9 Objection to Engineer's Instructions
If the Contractor believes that an instruction issued by the Engineer pursuant to

Clause 2.8 is contrary to the Contract or otherwise demonstrably not in the best
interests of the Works or believes that the instruction should be considered pursuant
to Clauses 51 and 52 the Contractor shall notify the Engineer within three (3) days
of the date of such instruction. Following consultation with the Quantity Surveyor
and the Employer (as required) the Engineer shall confirm, amend or withdraw the
relevant instruction or issue an instruction in accordance with Clause 51.1 and the
Contractor shall comply with such confirmation, amendment, withdrawal or (if the
Engineer issues an instruction in accordance with Clause 51.1) comply with the
procedures set out in Clauses 51 and 52, or within three (3) days from its date shall
implement the procedures described in Clause 51.2 or Clause 67.
2.10 Contract Confidential
The Contractor shall treat the Contract, and any other documents and information
provided by the Employer or the Engineer pursuant to the Contract, as private and
confidential and, except where strictly necessary for the purposes of the Contract,
shall not disclose the same to any third party without the prior consent of the
Engineer. The Contractor shall impose an equivalent condition on all its Sub-
Contractors.
2.11 Language and Calendar
The Contract shall be interpreted and construed in accordance with the English
language. All correspondence, Drawings, Specifications, operating and
maintenance instructions and other documents and communications shall be written
in the language specified in the Appendix to Tender (unless specifically instructed
otherwise in the Specifications). All references to dates or periods of time shall be
construed in accordance with the Gregorian calendar.
ASSIGNMENT AND SUB-CONTRACTING
3.1 Assignment
The Contractor shall not assign the Contract or any part thereof or any benefit or
interest therein without the prior consent of the Employer.
3.2 Sub-Contracting
The Contractor shall not sub-contract the whole of the Works and except where
otherwise provided by the Contract, the Contractor shall not sub-contract any part
of the Works without the prior consent of the Engineer (which shall not be
unreasonably withheld) and such consent if given shall not relieve the Contractor
from any liability or obligation under the Contract and the Contractor shall remain

responsible for the acts, defaults and neglects of any Sub-Contractor and its agents,
servants or workmen.
3.3 Specified Sub-Contractors
Where the Employer and the Contractor have agreed that the Contractor shall
appoint Specified Sub-Contractors, such Specified Sub-Contractors shall be named
in a list set out in the Appendix to Tender and any Specified Sub-Contractor so
selected by the Contractor shall be a Sub-Contractor for whom the Contractor shall
be entirely responsible and shall not be treated as a Nominated Sub-Contractor for
any of the purposes of the Contract.
3.4 Sub-Contracting Procedures
Subject to Clause 59 as set out in the Part 2 Conditions (if stated in the Appendix to
Tender to be applicable) in relation to any proposed Sub-Contract:
a the Contractor shall propose a Sub-Contractor for the Engineer's acceptance

unless a list of previously approved Sub-Contractors has been set out in the
Specifications, in which case Sub-Contractors shall be selected only from
such list;
b the procedure for selection of Sub-Contractors shall be monitored by the

Engineer;
c the Contractor shall impose on each Sub-Contractor all the terms and
conditions of the Contract insofar as they are applicable to the relevant Sub-
Contract; and
d the Contractor shall not enter into any binding contract with any Sub-
Contractor without the Employer's prior approval of the Sub-Contractor
(and, if the Engineer so requires, its prior approval of the Sub-Contract
documents) and such approval shall not relieve the Contractor of any of its
obligations under the Contract.
3.5 Responsibility for Sub-Contractors
Subject to Clause 59 as set out in the Part 2 Conditions (if stated in the Appendix to
Tender to be applicable) the Contractor shall be responsible for observance by its
Sub-Contractors (including Specified Sub-Contractors) of all the provisions of the
Contract and, except where otherwise expressly agreed, the cost of such observance
shall be deemed to be included and covered by the Contract Price.

BAHRAINI AND NON-BAHRAINI RESOURCES
4.1 Bahraini Contracting firms
The Contractor shall make all practicable use of all available skills and capabilities
of local Bahraini contracting firms as Sub-Contractors in the execution of the
Works and in the supply of materials, goods and equipment forming part of the
Works and in the provision of Contractor's Equipment and Temporary Works for
the purpose of the Works.
4.2 Bahraini Employees
The Contractor shall employ Bahraini staff at the percentage set from time to time
for the private sector by the Government, and in the case of breach by the
Contractor of this undertaking the Employer shall have the right to terminate
employment of the Contractor under the Contract in accordance with Clause 63.2
without prejudice to any other remedies available to the Employer. The Contractor
shall not recruit or attempt to recruit its staff and labour from among persons in the
service of the Government.
4.3 Non-Bahraini Employees
When specifically qualified persons are not available in Bahrain, the Contractor
may employ persons not normally resident in Bahrain and the entry of such persons
shall be governed by the procedures laid down in the Laws concerning the entry of
aliens.
4.4 Agent of Contractor
The Contractor, if not a Bahraini or GCC company, firm or individual shall have an
agent in Bahrain whose name and address shall be stated in the Tender. All notices
and correspondence sent to this address in Bahrain shall be validly served on the
Contractor.
4.5 Bahrain Register of Commerce
The Contractor shall comply with the Laws under which all persons and companies
engaged in business in Bahrain are required to be registered in the “Register of
Commerce.” Persons or companies not entered in the register are not permitted to
carry out business in Bahrain. The Laws require that any firm wishing to carry out
business in Bahrain shall make application to the Directorate of Commerce and
Companies’ affairs in the Ministry of Industry and Commerce of the Government
not later than one (1) month after or earlier than three (3) months before starting
business.

CONTRACT DOCUMENTS
5.1 Documents and Discrepancies
All documents comprising the Contract shall be treated as complementary and it

shall be the duty of the parties to warn each other of any error, omission or
discrepancy of which they become aware and (within the scope of their agreed
roles, expertise and responsibilities) to put forward proposals to resolve any such
error, omission or discrepancy fairly and constructively without increasing the
Contract Price, delaying the Time for Completion or adversely affecting the quality
of the Works. Any proposal pursuant to this Clause 5.1 shall be subject to approval
by the Employer before implementation.
5.2 Order of priority
In the event that a discrepancy cannot be resolved as above and except where a
different priority is agreed by the parties, the priority between the documents
comprising the Contract shall be as follows in descending order:
a the Contract Agreement;
b the Conditions of Contract;
c the Specifications;
d the Drawings;
e any modifications to the Tender stated in Article 2.f of the Contract

Agreement;
f the Letter of Award (if applicable).
g the Tender;
h the Key Dates Schedule (if applicable); and
i the Schedule of Rates and Prices/Bill of Quantities.
SUPPLY AND CUSTODY OF DRAWINGS AND DOCUMENTS
6.1 Copies of Drawings and Specifications provided by the Engineer
The Engineer shall provide to the Contractor free of charge two (2) copies of the
Drawings and Specifications and other documents issued by the Engineer in
accordance with Clause 7, one (1) copy of which shall be kept by the Contractor on
the Site and shall be available at all reasonable times for inspection and use by the
Engineer and by any person authorised by the Engineer. Upon issue of the Defects

Liability Certificate, the Contractor shall return to the Engineer all Drawings,
Specifications and other documents provided pursuant to the Contract.
6.2 Copies of Drawings and Specifications provided by the Contractor
The Contractor shall supply to the Engineer four (4) copies of all Drawings,
Specifications and other documents submitted by the Contractor and approved by
the Engineer in accordance with Clause 7. The Contractor shall supply such further
copies of such Drawings, Specifications and other documents as the Engineer may
request for the use of the Employer who shall pay the reasonable cost of
reproduction.
6.3 Contractor's Notice of required Drawings and Specifications
The Contractor shall give reasonable prior notice (being in any event not less than
seven (7) days) to the Engineer whenever planning or progress of the Works may
be delayed or disrupted unless any further Drawing or Specifications or other
document is issued by the Engineer in accordance with Clause 7.1 and the Key
Dates Schedule (if stated in the Appendix to Tender to be applicable). Such notice
shall include details of the Drawing or Specifications or other document required
and why and by when it is required and of any delay or disruption likely to be
suffered if it is late.
SUPPLEMENTARY DRAWINGS AND CONTRACTORS DRAWINGS
7.1 Drawings and Specifications issued by the Engineer
The Engineer shall provide to the Contractor during the progress of the Works such
further Drawings and Specifications or other documents as shall be agreed in the
Key Dates Schedule at the times stated in the Key Dates Schedule (if stated in the
Appendix to Tender to be applicable) or otherwise as shall be necessary for the
proper and adequate execution of the Works at such times as shall be reasonable in
all the circumstances. The Contractor shall comply with the requirements set out in
such further Drawings, Specifications and other documents which shall become part
of the Contract.
7.2 Drawings and Specifications submitted by the Contractor
Where the Contract provides that any part of the Permanent Works shall be
designed by the Contractor, the Contractor shall submit to the Engineer for
approval:
a in accordance with the Key Dates Schedule (if stated in the Appendix to
Tender to be applicable) or otherwise within such reasonable time as is
necessary to allow for the Engineer's approval without delaying the progress
of the Works, such Drawings and Specifications and other documents as

shall be necessary to satisfy the Engineer as to the suitability and adequacy
of that design (and upon approval by the Engineer such Drawings and
Specifications shall become part of the Contract), and
b as a condition precedent to the issue of any Taking Over Certificate in

accordance with Clause 48, operation and maintenance manuals together
with drawings of the Permanent Works as completed in sufficient detail to
enable the Employer to operate, maintain, dismantle, reassemble and adjust
the Permanent Works incorporating that design. The Works shall not be
considered to be completed for the purposes of taking over in accordance
with Clause 48 until such operation and maintenance manuals and drawings
have been submitted to and approved by the Engineer, unless the Employer
agrees otherwise (in which case the Employer shall not release one (1) half
of the Retention Money under Clause 60.6a until such operation and
maintenance manuals and drawings have been submitted).
7.3 Contractor's Designers
All designs carried out by the Contractor, or on behalf of the Contractor by any
Sub-Contractor, shall be prepared by qualified designers who are engineers or
architects or other suitably qualified professionals and who are COEPP registered
and compliant or who are approved Sub-Contractors not working in Bahrain.
Subject only to Clause 23.3, nothing contained in the Contract shall create any
contractual relationship or professional obligations between any such Sub-
Contractor and the Employer.
7.4 Detail of Contractor's Drawings and Specifications
Where design is to be undertaken by the Contractor or any Sub-Contractor, the

Contractor shall prepare the Drawings and Specifications and other documents in
sufficient detail to satisfy all regulatory approvals and to provide Sub-Contractors,
employees, agents and representatives with sufficient instructions to execute the
Works, and to describe the operation of the completed Works. The Engineer shall
have the right to review and inspect the preparation of such Drawings and
Specifications and other documents, wherever they are being prepared.
7.5 Review and Approval of Contractor's Drawings and Specifications
Neither the pre-construction review by the Engineer of the Drawings and

Specifications and other documents for which the Contractor is responsible, nor any
other review or approval by the Engineer or others employed on the Employer’s
behalf in accordance with this Clause 7, shall relieve the Contractor of any of its
responsibilities, obligations or liabilities under the Contract.

CONTRACTOR'S RESPONSIBILITIES
8.1 Contractor's General Responsibilities
The Contractor shall, subject to the provisions of the Contract, and with due care
and diligence, execute the Works and provide all resources and labour, supervision,
materials, goods, equipment, workmanship, Temporary Works, Contractor's
Equipment and all other things, whether of a temporary or permanent nature,
required in and for such execution and specified in or reasonably inferred from the
Contract, and shall be fully responsible for all aspects of the adequacy, stability,
security and safety of the Works and the Site and all Site operations and methods of
construction.
8.2 Design and Build (if applicable)
If this Clause 8.2 is stated to be applicable in the Appendix to Tender, the

Contractor accepts full responsibility to the Employer for all aspects of the design
of the Works in accordance with the Contract including any design undertaken in
relation to the Works before or after the date of the Contract Agreement by or on
behalf of the Employer or the Engineer or any other party (including any design
work undertaken by a Nominated Sub-Contractor).
8.3 Limited Contractor Design (if applicable)
If this Clause 8.3 is stated to be applicable in the Appendix to Tender, the

Contractor shall be responsible only as expressly provided in the Specifications for
the design and specification of particular parts of the Permanent Works and for the
design and specification of any Temporary Works.
8.4 Statutory Liabilities
The design responsibilities of the Contractor under the Contract are without
prejudice to the Contractor's statutory and other duties and liabilities under the
Laws.
8.5 Checking of Site Investigations
The Contractor shall check all Site investigations prepared or provided by the
Employer for any part of the Works and shall be responsible for the results of such
Site investigations as if they had been prepared by or for the Contractor. The
Employer shall take no responsibility for any information contained in the Site
investigation reports.
8.6 Satisfaction of Engineer
The Contractor shall execute the Works in accordance with the Contract to the
satisfaction of the Engineer.

8.7 Sufficiency of Tender
The Contractor shall be deemed to have satisfied itself before submitting the Tender
as to the correctness and sufficiency of the rates, quantities (if the Contract Price is
stated to be Lump Sum in the Appendix to Tender) and prices stated in the
Schedule of Rates and Prices/Bill of Quantities which shall (except as is otherwise
provided in the Contract) cover all its obligations under the Contract (including
those in respect of the supply of goods, materials, Temporary Works, Contractor's
Equipment and services and all contingencies for which there is a Provisional Sum)
and all things necessary for the proper execution and completion of the Works.
SECURITY
9.1 Performance Bond
If the Appendix to Tender provides for the Contractor to obtain and provide a
Performance Bond, then the Contractor shall have obtained and provided to the
Employer (with a copy to the Engineer):
a prior to the date of the Contract Agreement, if a Letter of Award has been
issued; or
b within ten (10) days from the date of the Contract Agreement, if a Letter of
Award has not been issued
such Performance Bond in the sum stated in the Appendix to Tender and
substantially in the form set out in Annex 2.
9.2 Adjusted Performance Bond
If so stated in the Appendix to Tender, the Contractor shall be entitled upon the
expiry of the Defects Liability Period to provide to the Employer (with a copy to
the Engineer) in place of the original Performance Bond a new reduced
Performance Bond for the duration of any extended Defects Liability Period in
respect of any particular part of the Works (the amount of such reduced
Performance Bond being in the same proportion as the value of that part bears to
the whole of the Works).
If the Contractor is required to obtain and provide a Performance Bond in

accordance with Clause 9.1 and if the Contract Price is increased by twenty percent
(20%) or more beyond the amount stated in the Contract Agreement, then the
Contractor shall obtain and provide to the Employer (with a copy to the Engineer)
within fourteen (14) days from the date of an instruction to this effect from the
Engineer a new increased Performance Bond in a sum equivalent to the percentage
set out in the Appendix to Tender of the increased Contract Price.

9.3 Advance Payment Guarantee
If the Appendix to Tender provides for the Employer to make an advance payment
to the Contractor, then the Contractor shall obtain and provide to the Employer
(with a copy to the Engineer) an Advance Payment Guarantee in the amount of
such advance payment substantially in the form set out in Annex 1 prior to the
Engineer issuing an Advance Payment Certificate to the Contractor.
9.4 Parent Company Guarantee
If the Appendix to Tender provides for the Contractor to provide a Parent Company
Guarantee, then the Contractor shall obtain and provide to the Employer (with a
copy to the Engineer) within fourteen (14) days from the date of the Contract
Agreement such Parent Company Guarantee from its ultimate parent company,
substantially in the form set out in Annex 3.
9.5 Failure to provide Security
If the Contractor shall fail to comply with the provisions of any of Clauses 9.1, 9.2
or 9.4, the Employer shall be entitled to treat the Contract as repudiated by the
Contractor and upon such repudiation to recover all loss, cost and expense
occasioned by such repudiation.
9.6 Duration and Cost of Security
The Contractor shall at all times maintain any Performance Bond, Advance
Payment Guarantee and Parent Company Guarantee for the respective periods
referred to in the forms set out in Annexes 1, 2 and 3. The costs of obtaining and
maintaining such Performance Bond, Advance Payment Guarantee and Parent
Company Guarantee shall be met by the Contractor.
9.7 Approved Banks or Insurance Companies
The institution providing any Performance Bond and/or Advance Payment

Guarantee shall be one of the banks or insurance companies approved for the time
being by the Employer.
SITE
10.1 Inspection of Site
The Contractor shall be deemed to have inspected and examined the Site and its
surroundings and to have satisfied itself, before submitting the Tender, as to the
nature of the ground and sub-soil, the prevailing climatic conditions, the form and
nature of the Site, the extent and nature of all work, materials, goods and equipment
necessary for the execution of the Works, the means of communication with and

access to the Site, the Contractor's Equipment and facilities it may require and in
general to have obtained for itself all necessary information as to risks,
contingencies and all other circumstances influencing or affecting the Tender.
10.2 Adverse site conditions (if applicable)
If stated to be applicable in the Appendix to Tender Clause 10.2 as set out in the
Part 2 Conditions shall apply and shall be incorporated in the Contract
SETTING OUT
11.1 Setting-out
The Contractor shall be responsible for the true and proper setting-out of the Works
in relation to original points, lines and levels of reference given by the Engineer and
for the correctness of the positions, levels, dimensions and alignment of all parts of
the Works and for the provision of all instruments, appliances and labour necessary
for such purposes. If at any time during the progress of the Works any error shall
appear or arise in the positions, levels, dimensions or alignment of any part of the
Works, the Contractor on being instructed so to do by the Engineer shall at its own
cost rectify such error to the satisfaction of the Engineer, unless such error is based
on incorrect data supplied by the Engineer in which case the expense of rectifying
the same shall be borne by the Employer. The checking of any setting-out or of any
line or level by the Engineer shall not in any way relieve the Contractor of its
responsibility for their correctness and the Contractor shall carefully protect and
preserve all bench-marks, sight-rails, pegs and other things used in setting-out the
Works.
EXCAVATED MATERIALS
12.1 Excavated Materials and Finds
Subject to Clause 13.1, all materials of any kind obtained from the Site, or any
other site which is being used for any purpose in connection with the Works, or any
other excavations shall remain the property of the Employer and such materials
shall be dealt with as provided in the Contract and the Engineer may direct their use
in the Works or disposal by other means. If and whenever the Employer’s property
is permitted by the Engineer to be used in substitution for any item which the
Contractor would otherwise have provided for or in connection with the Works, the
Engineer shall ascertain the amount of any consequent saving in the cost of the
execution of the Works and the Contract Price shall be reduced by the amount of
any such saving.

ANTIQUITIES
13.1 Antiquities
All Antiquities which may be found on the Site or elsewhere in the execution of the
Works shall so far as is legal remain or become the property of the Employer and
upon discovery of such an Antiquity the Contractor shall forthwith:
a use its best endeavours not to disturb the Antiquity;
b cease work if and in so far as the continuance of work would endanger the
Antiquity or prevent or impede its excavation or its removal;
c take all steps which may be necessary to preserve the Antiquity in the exact
position and condition in which it was found; and
d inform the Engineer of the discovery and precise location of the Antiquity.
13.2 Instructions as to Antiquities
The Engineer shall issue instructions as to what is to be done concerning an

Antiquity reported to it by the Contractor under Clause 13.1, which may include
instructions requiring the Contractor to permit the examination, excavation or
removal of the Antiquity by a third party.
PROGRAMME
14.1 Programme
Within fourteen (14) days from the date of the Contract Agreement the Contractor
shall submit to the Engineer for its approval a detailed Programme for the execution
of the Works, in such form and detail as the Engineer shall reasonably prescribe.
The Contractor shall, whenever required by the Engineer, also provide for its
information a general description of the arrangements and methods which the
Contractor proposes to adopt for the execution of the Works.
14.2 Revised Programme
If at any time it appears to the Engineer that the progress of the Works does not
conform to the approved Programme referred to in Clause 14.1 the Contractor shall
produce, within five (5) days of a request of the Engineer, a revised Programme
showing modifications to the approved Programme resulting from and identifying
any matter affecting the progress of the Works.

14.3 Approval of Programme
The submission to and approval by the Engineer of any Programme and/or other
description in accordance with this Clause 14 shall not relieve the Contractor of any
of its duties or responsibilities under the Contract.
14.4 Key Dates Schedule (if applicable)
If stated to be applicable in the Appendix to Tender Clause 14.4 and the Key Dates
Schedule, as set out in the Part 2 Conditions shall apply and shall be incorporated in
the Contract.
EMPLOYEES
15.1 Contractor’s Supervision
The Contractor shall provide all necessary supervision during the execution of the
Works for the proper fulfilling of the Contractor’s obligations under the Contract.
A competent and authorised representative of the Contractor previously approved
by the Engineer shall be constantly on the Site and shall give its whole time to the
supervision of the Works and shall receive, on behalf of the Contractor, directions
and instructions from the Engineer. If approval of the Contractor's authorised
representative shall be withdrawn by the Engineer in accordance with Clause 16.2,
the Contractor shall replace him by another authorised representative approved by
the Engineer.
15.2 English speaking capability
All supervisory staff of the Contractor (including the representative referred to in

Clause 15.1) and all Sub-Contractors down to and including foreman level shall
have a reasonable command of the English language. During the progress of the
Works there shall be on Site a sufficient number of people provided by the
Contractor sufficiently competent in both English and Arabic to ensure
transmission and comprehension of all instructions and decisions.
CONTRACTOR’S EMPLOYEES
16.1 Contractor’s Employees
The Contractor shall provide and employ on the Site in connection with the
execution of the Works:
a only such technical employees as are skilled and experienced in their

respective professions and trades and such sub-agents, foremen and leading
hands as are competent to give proper supervision to those parts of the
Works they are required to supervise, and

b such skilled, semi-skilled and unskilled labour as is necessary for the proper
and timely execution of the Works.
16.2 Removal of Persons from Works and Site
The Engineer may object to and require the Contractor to remove immediately from
the Works and the Site any person employed by the Contractor in connection with
the execution of the Works who, in the opinion of the Engineer, misconducts
himself or is incompetent or negligent in the proper performance of his duties, or
whose employment is otherwise considered by the Engineer to be undesirable and
such person shall not be again employed upon the Works or the Site without the
prior consent of the Engineer. Any person so removed from the Works and the Site
shall be replaced as soon as possible and without affecting the progress of the
Works by a competent substitute approved by the Engineer.
LABOUR LAWS
17.1 Compliance with Labour Laws
The Contractor shall, and shall ensure that all of its Sub-Contractors shall, in
respect of all labour and personnel employed by them upon the Works in Bahrain,
comply with all requirements upon employers of labour in Bahrain imposed under
the Laws,.
17.2 Housing of labour
The Contractor shall not house any employees on the Site, unless the Employer has
given its specific prior approval.
17.3 Festivals and Religious Customs
The Contractor shall, in all its dealings with its employees and those of its Sub-
Contractors and agents employed on or in connection with the Works, have due
regard to all recognised Islamic festivals and other official public holidays ordered
by the Government and religious or other customs.
TRAINING
18.1 Training
During the execution of the Works the Contractor shall, within the Contract Price
and in accordance with the Specifications:
a make use of members of the Employer's staff with a view to imparting a full
knowledge of the Works to such members; and

b design and implement formal training activities for the Employer's staff with
the objective of ensuring a complete transfer of technology systems used for
the Works, for such staff.
18.2 Control of Employer's Staff
The Contractor shall have full control of and responsibility for members of the
Employer’s staff who undertake any training pursuant to Clause 18.1 and shall
provide full opportunity and use its best endeavours to ensure that the Employer’s
staff so assigned shall acquire the maximum knowledge and familiarisation.
HEALTH AND SAFETY
19.1 Health and Safety
The Contractor shall be obliged to provide a health and safety officer in relation to
the Works and shall be responsible for compliance with all Laws relating to the
health and safety of the Works, the Site and all persons engaged on the Works and
utilising the Site and for all activities required to achieve such compliance and
shall:
a notify the Employer's health and safety officer (whose name and address
shall be notified to the Contractor by the Engineer) of its health and safety
proposals for the Works and the Site prior to commencement of the Works;
b provide such further information regarding health and safety matters relating
to the Works and the Site as the Employer's health and safety officer may
reasonably request at any time;
c allow the Employer's health and safety officer to visit the Site and inspect
the Works and the Site at any time; and
d as a precondition to the issue of a Taking Over Certificate in respect of the

Works or a Section provide to the Engineer records of all health and safety
matters relating to the occupation, operation and maintenance of the
completed Works or Section.
19.2 Security, Fencing and Lighting
The Contractor shall be responsible for the security of the Site including, without
limitation, proper fencing, lighting, guarding, warning signs and watching of all the
Works and each Section and part on the Site, in accordance with the Specifications,
until the date stated in the Taking Over Certificate for the Works or that Section or
part and for the proper provision during such period of temporary roadways,
footways, guards and fences as far as the same may be necessary by reason of the
Works or that Section or part for the use, safety and protection of the owners and

occupiers of adjacent property, the public and others. No naked light shall be used
by the Contractor on the Site, otherwise than in the open air, without prior consent
from the Engineer.
19.3 Safety and protection of the Environment
The Contractor shall, throughout the execution of the Works and the Defects
Liability Period:
a have full regard for the safety of all persons entitled to be upon the Site and
keep the Site (so far as the same is under its control) and the Works (so far
as the same are not completed or occupied by the Employer) in an orderly
state appropriate to the avoidance of danger to such persons; and
b take all reasonable steps to protect the environment on and off the Site and
to avoid damage or nuisance to persons or to property of the public or others
resulting from pollution, noise or other causes arising as a consequence of
its methods of operation.
19.4 Epidemics
In the event of any outbreak of illness of epidemic nature the Contractor shall
comply with and carry out such Laws as may be made by the Government or other
appropriate Authorities for the purpose of dealing with and overcoming such
outbreak.
19.5 First Aid
The Contractor shall in accordance with Clause 19.1 provide and maintain in an
easily accessible position on the Site an adequate first aid outfit. At least one of its
employees on Site shall be fully qualified in the administration of first aid.
19.6 Accidents
The Contractor shall within twenty-four (24) hours of the occurrence of any
accident on the Site or in connection with the execution of the Works supply the
Engineer with full details in triplicate and shall supply such information as may be
required by the Engineer and shall, in the event of death and/or serious injury on the
Site or in connection with the execution of the Works, immediately notify the
Engineer, the Employer and the relevant Authority.

RISK AND INSURANCE
20.1 Care of Works
From the commencement of the Works until the date stated in the Taking Over
Certificate for the whole of the Works the Contractor shall take full responsibility
for the care of the Works, provided that:
a if the Engineer shall issue a Taking Over Certificate in respect of any

Section or part of the Works the Contractor shall cease to be liable for the
care of that Section or part of the Works from the date stated in the Taking
Over Certificate in respect of that Section or part and the responsibility for
the care of that Section or part shall pass to the Employer; and
b the Contractor shall take full responsibility for the care of any outstanding
work which it shall have undertaken to finish during the Defects Liability
Period until such outstanding work is completed to the satisfaction of the
Engineer;
c the Contractor shall be liable for any loss or damage to the Works
occasioned by it in the course of complying with its obligations under
Clauses 49 and 50.
In case of any loss or damage to the Works or to any part of the Works from any
cause whatsoever (except the Excepted Risks as defined in Clause 20.2), while the
Contractor shall be responsible for the care of the Works or such part, the
Contractor shall at its own cost repair and make good such loss or damage, so that
at Completion the Works shall be in good order and condition and in conformity in
every respect with the requirements of the Contract and the Engineer’s instructions.
In the event of any such loss or damage caused by any of the Excepted Risks, the
Contractor shall, if and to the extent required by the Engineer and subject always to
the provisions of Clause 66 (if stated in the Appendix to Tender to be applicable),
repair and make good the same at the cost of the Employer instructed as a Variation
in accordance with Clauses 51 and 52.
20.2 Excepted Risks
The Excepted Risks are:
a war, hostilities (whether war is declared or not), invasion, act of foreign

enemies;
b rebellion, revolution, insurrection or military or usurped power, civil war;
c (unless solely restricted to employees of the Contractor or of its Sub-

Contractors) disorder;

d a cause solely due to use or occupation by the Employer of any part of the
Permanent Works,
e a cause solely due to the design of the Works by the Engineer or any other
Consultant engaged by the Employer;
f ionising radiation or contamination by radio-activity from any nuclear fuel

or from any nuclear waste from the combustion of nuclear fuel, radio-
activity toxic explosive, or other hazardous properties of any explosive,
nuclear assembly or nuclear component thereof; and
g pressure waves caused by aircraft or other aerial devices travelling at sonic

or supersonic speeds.
INSURANCE OF WORKS
21.1 Insurance of Works
Without limiting its obligations and responsibilities under Clause 20 the Contractor
shall insure the following in the joint names of the Employer and the Contractor
against all loss or damage caused by fire, theft, lightning, storm, tempest, flood,
explosion, bursting or overflowing of water tanks, apparatus or pipes, earthquake,
aircraft or other aerial devices or articles dropped from them, riot and civil
commotion, subsidence, heave, vibration and weakening or removal of support or
lowering of groundwater (but not the Excepted Risks) and in such manner that the
Employer and the Contractor are covered for the periods stipulated in Clause 20.1:
a the Works in the amount stated in the Appendix to Tender, together with the
materials, goods and equipment for incorporation in the Works at their
replacement value, cost of demolition and removal of debris, temporary
shoring plus the percentage value of the Contract Price stated in the
Appendix to Tender to cover additional professional and legal fees;
b the Temporary Works, Contractor's Equipment and other goods and

materials brought on to the Site by the Contractor to their replacement
value.
21.2 Application of Insurance Monies
Should all or any part of the Works or any of Temporary Works, Contractor's
Equipment or any other goods and equipment and materials to be insured under
Clause 21.1 be damaged or lost by reason of any risk insured against under Clause
21.1, the Contractor shall immediately make good such damage or loss and every
sum of money received under the policy or policies shall be paid to the Employer
and shall be paid by it to the Contractor by such instalments as the Engineer shall
certify, having regard to the progress made by the Contractor in making good such

damage or loss, if any, so far as such damage or loss ought in the opinion of the
Engineer be made good for the proper execution and completion of the Works.
If and so far as such insurance monies shall not be required for such purposes they
shall upon the direction of the Engineer be paid over to the Contractor. If and so far
as such insurance monies shall be insufficient for such purposes, the deficiency
shall be borne by the Contractor.
21.3 Responsibility for amounts not recovered
Any amounts not insured and any amounts not recovered from insurers shall be
borne by the party responsible for the relevant insurance in accordance with their
responsibilities under the Contract.
DAMAGE TO PERSONS & PROPERTY
22.1 Damage to Persons and Property
The Contractor shall indemnify the Employer against all losses and claims in
respect of death or injury to any person (including any employee of the Employer)
or loss of or damage to any property (including any property of the Employer other
than the Works) caused by or arising out of or in consequence of the execution of
the Works and against all claims, proceedings, damages, costs, charges and
expenses whatsoever in respect of or in relation thereto except any compensation or
damages in respect of:
a the permanent use or occupation of the Site and the Works or any Section or
part thereof by the Employer;
b death of or injury to persons or damage or loss to property resulting from

any act or neglect of the Employer, its agents, servants or other contractors
(not being employed by the Contractor or any Sub-Contractor) and any
claims, proceedings, damages, costs, charges and expenses in respect
thereof or in relation thereto and where the death or injury or damage or loss
was contributed to by the Contractor, its Sub-Contractors, employees,
agents or representatives, such part of the compensation or damages as may
be just and equitable having regard to the extent of the responsibility of the
Employer, its agents or servants or other contractors for the death, injury,
loss or damage.

THIRD PARTY INSURANCE
23.1 Third Party Insurance
Throughout the execution of the Works the Contractor shall, without limiting its
obligations and responsibilities under Clause 22, insure in the joint names of the
Employer and the Contractor for at least the amount stated in the Appendix to
Tender against its liability for any death of or injury to any person (including any
employee of the Employer) or any damage or loss to any property (including any
property of the Employer) caused by or arising out of or in consequence of the
execution of the Works other than due to the matters referred to in the exceptions to
Clause 22.1.
23.2 Cross Liabilities clause
The policies of insurance taken out under Clauses 21.1 and 23.1 shall contain a
cross-liabilities clause indemnifying each of the jointly insured against claims made
on it by the other jointly insured.
23.3 Professional Indemnity Insurance/Product Liability Insurance
If and to the extent that the Contractor or any Sub-Contractor is responsible for
providing designs for all or part of the Works the Contractor or (subject to the
Engineer's prior consent) such Sub-Contractor shall take out and maintain
professional indemnity insurance and/or product liability insurance covering the
Contractor's design liability under the Contract without unusual or onerous
conditions attached to it for the Works or part of the Works as set out in the
Appendix to Tender and in the amount or amounts set out in the Appendix to
Tender for any one claim with the number of claims unlimited for a period
beginning no later than the Commencement Date and ending ten (10) years after the
date of Completion stated in the Taking Over Certificate for the whole of the
Works. If the Engineer provides its consent to one (1) or more Sub-Contractors
taking out and maintaining such insurance in place of the Contractor, then such
consent shall be subject to the Contractor obtaining from each Sub-Contractor and
submitting to the Employer a signed Direct Agreement in the form set out in Annex
7.
ACCIDENT OR INJURY TO WORKMEN
24.1 Accident or Injury to Workmen
The Employer shall not be liable for or in respect of any damages or compensation
payable in respect or in consequence of any accident or injury to any workman or
other person in the employment of the Contractor or any Sub-Contractor, save and
except an accident or injury resulting from any act or default of the Employer, its
employees, agents or servants. The Contractor shall indemnify and keep
indemnified the Employer against all such damages and compensation, save and
except as aforesaid, and against all claims, proceedings, costs, charge and expenses
whatsoever in respect thereof or in relation thereto.
24.2 Insurance against Accident or Injury to Workmen
The Contractor shall insure the liability described in Clause 24.1 and shall maintain
such insurance during the whole time that any persons are employed by it or its
Sub-Contractors on the Works provided always that, in respect of any persons
employed by any Sub-Contractor, the Contractor’s obligation to insure under this
Clause 24.2 shall be satisfied if the Sub-Contractor shall insure against the liability
in respect of such persons in such manner that the Employer is indemnified under
the policy. Where required, the Contractor shall register and maintain registration
with the General Organisation for Social Insurance in Bahrain and shall on demand
produce to the Engineer its current certificate of registration.
EVIDENCE AND TERMS OF INSURANCE
25.1 Evidence and terms of insurances and Approved Insurance Companies
The Contractor shall provide evidence to the Engineer prior to the start of work on
Site that the insurances required under Clauses 21.1, 23.1, 23.3 and 24.2 have been
effected, in the form of originals of the insurance policies, notices of renewal and
receipts for payment of current premiums for the Engineer's approval and, upon
approval, the Contractor shall provide copies of the same to the Employer. All such
insurances shall be taken out with one of the insurance companies recognised by the
Employer for the time being and in terms approved by the Employer, which
approval shall not be unreasonably withheld.
25.2 Adequacy of insurances
The Contractor shall notify the insurers providing the insurances referred to in
Clauses 21.1, 23.1, 23.3 and 24.2 of changes in the nature, extent or programme for
the execution of the Works and shall ensure the continued adequacy of the
insurances at all times in accordance with the terms of the Contract.
25.3 Remedy on Contractor’s Failure to Insure
If the Contractor shall fail to effect and keep in force the insurances referred to in
Clauses 21.1, 23.1, 23.3 and 24.2 or any other insurance which it may be required
to effect under the terms of the Contract, then the Employer may suspend all or part
of the Works by immediate notice to the Contractor until the Contractor takes out
all such insurances and the Contractor shall, during such suspension, properly
protect and secure the Works or such part or parts so far as is necessary in the
opinion of the Engineer and the provisions of Clause 42 shall not apply to such
suspension. The extra cost incurred by the Employer as a result of any suspension

under this Clause 25.3 shall be borne and paid by the Contractor and any such
suspension shall not entitle the Contractor to claim for any unavoidable additional
work or expenditure pursuant to Clause 44.2 or otherwise or an extension of the
Time for Completion pursuant to Clause 44.1 or otherwise. Alternatively, and at
the Employer's sole discretion, the Employer may effect and keep in force any such
insurance and pay such premium as may be necessary for that purpose and from
time to time deduct the amount so paid by the Employer from any monies due or
which may become due to the Contractor, or recover the same as a debt due from
the Contractor.
LAWS
26.1 Proper Law
The Contract is made in Bahrain. The Laws of Bahrain shall be the proper laws of
the Contract.
COMPLIANCE WITH LAWS
27.1 Compliance with Laws
The Contractor shall, in all matters arising in the performance of the Contract,
conform in all respects with the provisions of the Laws and shall keep the Employer
indemnified against all penalties and liabilities of every kind for breach of any such
Laws.
27.2 Giving of Notices and Payment of Fees
The Contractor shall give all notices and pay all fees required to be given or paid by
any Laws in relation to the execution of the Works and by the rules and regulations
of all public bodies and companies whose property or rights are affected or may be
affected in any way by the Works. No additional payment shall be made by the
Employer to the Contractor in respect of any such fees and the Contractor shall be
deemed to have included for the payment of all such fees in the Contract Price.
INTELLECTUAL PROPERTY RIGHTS
28.1 Intellectual Property Rights
The Contractor warrants to the Employer that no Drawing, Specifications or other

document that it prepares and nothing else that it contributes to the Works shall
infringe any Intellectual Property Rights, and undertakes to indemnify the
Employer in respect of any legal liability and related costs arising out of or in
connection with any such infringement of any Intellectual Property Rights.

28.2 Licence
The Contractor shall retain Intellectual Property Rights in all Drawings,

Specifications and other documents that it prepares or contributes in relation to the
Works, and as beneficial owner grants to the Employer an irrevocable, non-
exclusive, royalty-free licence to copy and use all such Drawings, Specifications
and other documents for any purpose relating to completion and use of the Works,
in all cases with the right to transfer and sub-license such rights for the same
purposes, and shall ensure that such licence shall have the support of such rights
from third parties as are necessary to allow the grant of such licence.
28.3 Liability for Drawings and Specifications
The Contractor shall not be liable for the use of any Drawing, Specifications or
other document that it prepares for any purpose other than that for which it was
agreed to be prepared as stated in, or reasonably inferred from, the Contract.
28.4 Ownership of Drawings and Specifications
Subject to the Intellectual Property Rights described in Clause 28.2, ownership in

all the existing documents and other physical embodiments of designs by the
Contractor relating to the Works shall transfer from the Contractor to the Employer
immediately prior to the Contractor suffering an event of insolvency as described in
Clause 63.1 or termination of its employment as described in Clauses 63.2 or 64.1
or 66.5 (if stated in the Appendix to Tender to be applicable) and in such
circumstances the Contractor shall hand over all such documents and designs to the
Employer immediately upon request.
28.5 Royalties
Except where otherwise specified in the Specifications, the Contractor shall pay all
tonnage and other royalties, rent and other payments or compensation, if any, for
getting stone, sand, gravel , clay or other materials required for or in connection
with the Works or for dumping any such materials removed from the Site.
CONDUCT OF WORKS
29.1 Interference with Traffic and Adjoining Properties
All operations necessary for the execution of the Works shall, so far as compliance
with the requirements of the Contract permits, be carried on so as not to interfere
with the convenience of the public, or the access to, use and occupation of public or
private roads and footpaths to or of properties whether in the possession of the
Employer or of any other person and without disturbance to any party.

EXTRAORDINARY TRAFFIC AND WATERBORNE TRAFFIC
30.1 Extraordinary Traffic
The Contractor shall use its best endeavours to prevent any of the highways or
bridges communicating with or on the routes to the Site from suffering loss or
damage by any traffic of the Contractor or any of its Sub-Contractors and shall
select routes, choose and use vehicles and restrict and distribute loads so that any
such extraordinary traffic as shall inevitably arise from the moving of Contractor's
Equipment or other materials, goods or equipment from and to the Site shall be
limited as far as reasonably possible, and so that minimum loss and damage shall be
occasioned to such highways and bridges.
30.2 Waterborne Traffic
Where the nature of the Works requires the use by the Contractor of waterborne
transport Clause 30.1 shall be construed as though “highway” included a lock,
dock, sea wall or other structure related to a waterway and “vehicle” included craft.
OPPORTUNITIES FOR OTHER CONTRACTORS
31.1 Opportunities for other Contractors
The Contractor shall in accordance with the requirements of the Engineer allow all
reasonable opportunities for carrying out their work to any other contractors or
workmen employed by the Employer and/or any other Authority executing on or
near the Site any work not included in the Contract. If the Contractor shall, on the
request of the Engineer, make available to any such party, any roads or ways for the
maintenance of which the Contractor is responsible, or permit the use by any such
party of the Contractor’s Equipment and Temporary Works, or provide any other
service for any such party a fair contribution to the cost of such maintenance or use
or provision shall be priced as a Variation in accordance with Clauses 51 and 52.
KEEP SITE CLEAR
32.1 Contractor to keep Site Clear
During the progress of the Works the Contractor shall keep the Site reasonably free
from all unnecessary obstructions and shall store or dispose of (subject to the
provisions of Clause 54 as set out in the Part 2 Conditions, if stated in the Appendix
to Tender to be applicable) any Contractor's Equipment and other materials, goods
and equipment (including packing materials) and clear away and remove from the
Site any rubbish or Temporary Works no longer required.

CLEARANCE OF SITE ON COMPLETION
33.1 Clearance of Site on Completion
On the issue of the Taking Over Certificate in respect of the whole of the Works the
Contractor shall clear away and remove from the Site (subject to the provisions of
Clause 54.7 as set out in the Part 2 Conditions, if stated in the Appendix to Tender
to be applicable) all Contractor's Equipment and surplus materials (including
packing materials), rubbish and Temporary Works of every kind, and leave the
whole of the Site and Works clean and in a proper condition to the satisfaction of
the Engineer.
CONDUCT OF PERSONNEL
34.1 Alcoholic Liquor or Drugs
The Contractor shall not, otherwise than in accordance with the Laws, import, sell,
give, barter or otherwise dispense of any alcoholic liquor or drugs or permit or
suffer any such importation, sale, gift, barter or disposal by its Sub-Contractors or
employees.
34.2 Arms and Ammunition
The Contractor shall not give, barter or otherwise dispose of to any person or
persons any arms or ammunition of any kind or permit or suffer such activities.
34.3 Disorderly Conduct
The Contractor shall at all times take all reasonable precautions to prevent any
unlawful, riotous or disorderly conduct by or amongst its employees and those of its
Sub-Contractors and agents and for the preservation of peace and protection of
persons and property in the neighbourhood of the Works.
34.4 Site Facilities
The Contractor shall at its own cost and so far as is reasonably practicable and
necessary having regard to local conditions provide on the Site to the satisfaction of
the Engineer an adequate supply of drinking and other water, shelter, sanitary
facilities, canteen facilities, office and other temporary premises and electric lights
for the use of all the Contractor’s and any Sub-Contractors' employees and provide
facilities for the Employer and the Consultants as set out in the Specifications.

QUALITY CONTROL
35.1 Quality of Materials and Workmanship and Tests
The quality of workmanship, materials, goods and equipment used for or in

connection with the Works shall be:
a in accordance with all applicable Bahraini and international standards stated

in the Specifications, and otherwise appropriate to the intended purposes of
the Works;
b of the respective kinds described in the Contract and in accordance with the
Engineer’s instructions;
c subjected from time to time to such tests as the Engineer may direct at the
place of manufacture and/or fabrication or on the Site and/or at such other
places as may be specified in the Contract.
35.2 Contractor assistance
The Contractor shall provide such assistance, instruments, machines, labour and
materials as are normally required for testing any work and the quality, weight or
quantity of any such materials, goods and equipment and shall supply samples of
materials before incorporation in the Works for testing as may be selected and
required by the Engineer.
35.3 Testing before release
If the Engineer or an independent testing laboratory (a Laboratory) (if stated in the

Specifications to be used to carry out such test or tests) has carried out any test or
tests pursuant to Clause 35.2 the approval of the Engineer (or such Laboratory,
whichever has carried out such test or tests) shall be obtained before any
manufactured or fabricated materials or equipment are released from the place of
manufacture whether or not the items have passed any tests required by the
Specifications.
SAMPLES, INSPECTIONS, TESTING
36.1 Cost of Samples
All samples shall be supplied by the Contractor at its own cost if their supply is
provided for in or inferred from the Contract and otherwise they shall be priced as
Variations in accordance with Clauses 51 and 52, if instructed by the Engineer.

36.2 Inspection and Testing
The Engineer or a Laboratory shall be entitled, during manufacture, fabrication or

preparation to inspect and test the materials, goods and equipment to be supplied
under the Contract. If materials, goods or equipment are being manufactured,
fabricated or prepared in workshops or places other than those of the Contractor,
the Contractor shall obtain permission for the Engineer or such Laboratory to carry
out such inspection and testing in those workshops or places. Such inspection or
testing shall not release the Contractor from any obligation under the Contract.
36.3 Dates for Inspection and Testing
The Contractor shall agree with the Engineer on the time and place for the
inspection or testing of any materials, goods or equipment as provided pursuant to
the Contract. The Engineer shall give the Contractor not less than twenty-four (24)
hours notice of its or a Laboratory's intention to carry out the inspection or attend
the tests. If the Engineer, or its duly authorised representative, or such Laboratory
does not attend on the date agreed, the Contractor may, unless otherwise instructed
by the Engineer, proceed with the tests, which shall be deemed to have been made
in the presence of the Engineer. The Contractor shall forthwith forward to the
Engineer duly certified copies of the test readings. If the Engineer has not attended
the tests, it shall accept such readings as accurate and shall accept all certified test
readings from such Laboratory as accurate.
36.4 Cost of Tests
The cost of making any test and/or inspection of workmanship, materials, goods or
equipment shall be borne by the Contractor if such test is provided for in or inferred
from the Contract and (in respect of a test under load or to ascertain whether the
design of finished or partially finished work is appropriate for its intended
purposes) if it is stated in the Contract in sufficient detail to enable the Contractor to
price or allow for the same in its Tender.
36.5 Additional Tests
If any test is ordered by the Engineer which by reference to Clause 36.2 is:
a not provided for in or inferred from the Contract, or
b (in the cases mentioned) is not so stated in the Contract, or
c though so intended or provided for is ordered by the Engineer to be carried

out by an independent person at any place other than the Site or the place of
manufacture or fabrication of the materials tested,

then the cost of such test shall be borne by the Contractor if the test shows the
materials, goods, equipment or workmanship not to be in accordance with the
provisions of the Contract or the Engineer’s instructions, but otherwise shall be
borne by the Employer and priced as a Variation in accordance with Clauses 51 and
52.
If any test shows that any materials, goods, equipment or workmanship are not in
accordance with the Contract, the Engineer may require the Contractor to carry out
further additional testing, which in the opinion of the Engineer is necessary to
verify the extent of the failure in the quality of such materials, goods, equipment or
workmanship in such other part or parts of the Works and the cost of any additional
testing so required shall be borne by the Contractor regardless of whether or not
such test shows the materials, goods, equipment or workmanship to be in
accordance with the provisions of the Contract and to the satisfaction of the
Engineer, and the Contractor shall not be allowed to claim any extension of time as
a result of having to carry out such tests except if and to the extent that such tests
relate to materials, goods, equipment or workmanship or a part or parts of the
Works which have been previously approved by the Engineer.
INSPECTION OF WORKS
37.1 Inspection of Operations
The Engineer and any person authorised by it shall at all times have access to the
Site and the Works and to all workshops and places where work is being prepared
or from where materials, goods and equipment are being obtained for the Works
and the Contractor shall afford every facility for and every assistance in or in
obtaining the right to such access.
37.2 Rejection
If any materials, goods or equipment are not ready for inspection or testing or if, as
a result of the inspection or testing the Engineer determines that the materials,
goods or equipment are defective or otherwise not in accordance with the Contract,
it may reject the materials, goods or equipment and shall notify the Contractor
immediately as to the reasons for such rejection. The Contractor shall then promptly
make good the defect or ensure that rejected materials, goods or equipment comply
with the Contract. If the Engineer so requests, the tests of rejected materials, goods
or equipment shall be made or repeated under the same terms and conditions. All
costs incurred by the Employer by the repetition of the tests shall, after due
consultation with the Contractor, be determined by the Engineer and shall be
recoverable from the Contractor by the Employer and may be deducted from any
monies due or to become due to the Contractor.

37.3 Status of Samples, Tests and Inspections
Neither any sample, test or inspection undertaken or instructed by the Engineer nor
any resultant approval shall relieve the Contractor of any of its responsibilities,
obligations or liabilities under the Contract.
EXAMINATION OF WORKS
38.1 Examination of Work before Covering up
No work shall be covered up or put out of view without the approval of the
Engineer and the Contractor shall afford full opportunity for the Engineer to
examine and measure any work which is about to be covered up or put of view. The
Contractor shall give due notice to the Engineer whenever any such work is ready
or about to be ready for examination and the Engineer shall, unless it considers it
unnecessary and advises the Contractor accordingly, promptly attend for the
purpose of examining such work.
38.2 Uncovering and Making Openings
The Contractor shall uncover any part or parts of the Works or make openings in or
through the same as the Engineer may from time to time direct and shall reinstate
and make good such part or parts to the satisfaction of the Engineer. If any such
part or parts have been covered up or put out of view after compliance with the
requirements of Clause 38.1 and are found to be executed in accordance with the
Contract, the expenses of uncovering, making openings in or through, reinstating
and making good the same shall be borne by the Employer and priced as a
Variation in accordance with Clauses 51 and 52, but in any other cases all costs
REMOVAL OF IMPROPER WORK
39.1 Removal of Improper Work, Materials and Equipment
The Engineer shall during the progress of the Works have power to instruct from
time to time:
a the removal from the Site, within such time or times as may be specified in
the order, of any work, materials, goods or equipment which, in the opinion
of Engineer, are not in accordance with the Contract;
b the substitution of proper and suitable work, materials, goods or equipment;

and
c the removal and proper re-execution, notwithstanding any previous test or

interim payment, of any work which in respect of workmanship, materials,

goods or equipment is not, in the opinion of the Engineer, in accordance
with the Contract.
COMMENCEMENT, PROGRESS AND COMPLETION
40.1 Commencement of Works
The Engineer shall issue a Notice to Commence in respect of the Works and any
Section identified in the Appendix to Tender within the period or periods stated in
the Appendix to Tender and the Contractor shall commence the Works and each
Section within the period or periods stated in the Appendix to Tender after the
receipt by it of a Notice to Commence from the Engineer and shall then proceed
with the Works and each Section in accordance with the Contract.
POSSESSION OF SITE
41.1 Possession of Site
Save insofar as the Contract may prescribe:
a the extent or portions of the Site of which the Contractor is to be given

possession from time to time;
b the order in which such portions shall be made available to the Contractor;
c the order in which the Works shall be executed
the Employer shall, following the Notice to Commence, give to the Contractor
possession of so much of the Site as may be required to enable the Contractor to
commence and proceed with the execution of the Works in accordance with the
Programme and the Key Dates Schedule (if stated in the Appendix to Tender to be
applicable) and shall, from time to time as the Works proceed, give to the
Contractor possession of such further portions of the Site as may be required to
enable the Contractor to proceed with the execution of the Works in accordance
with such Programme and Key Dates Schedule (if stated in the Appendix to Tender
to be applicable).
41.2 Possession non-exclusive
Possession of the Site to the Contractor given under Clause 41.1 shall not be for its
exclusive use except in respect of such parts as may be designated by the Engineer.

SUSPENSION OF WORKS
42.1 Suspension of Works
The Contractor shall, on the instruction of the Engineer, suspend the progress of all
or any part of the Works for such time or times and in such manner as the Engineer
may consider necessary, and shall during such suspension properly protect and
secure the Works or such part so far as is necessary in the opinion of the Engineer.
The extra cost incurred by the Contractor giving effect to the Engineer’s
instructions under this Clause 42.1 shall be borne and paid by the Employer unless
such suspension is:
a otherwise provided for in the Contract; or
b necessary by reason of some default on the part of the Contractor; or
c necessary by reason of climatic conditions on the Site; or
d necessary for the proper execution or safety of the Works or the relevant
part insofar as such necessity does not stem from any act or default by the
Engineer or the Employer or from the operation of Clause 42
and provided that the Contractor shall not be entitled to recover any such extra cost
unless it gives notice of its intention to claim to the Engineer in accordance with
Clause 44.3.
42.2 Suspension lasting more than 90 days
If the progress of the Works or any part thereof is suspended on the instruction of
the Engineer and if permission to resume work is not given by the Engineer within
a period of ninety (90) days from the date of suspension then, unless such
suspension is within Clauses 42.1a, b, c or d, the Contractor may serve notice on
the Engineer requiring permission within twenty-eight (28) days from the receipt of
such notice to proceed with the Works, or that part in respect of which progress is
suspended and, if such permission is not granted within that time, the Contractor by
a further notice may treat the suspension where it affects part only of the Works as
an omission of such part under Clause 51 or where it affects the whole Works as an
abandonment of the Contract by the Employer in which case Clause 64.1 shall
apply.
42.3 Licences and Facilities
The Contractor shall bear all costs and charges for special or temporary licences
required by it in connection with access to the Site and shall provide at its own cost
all and any additional facilities outside the Site required by it for the purposes of the
Works.

42.4 Use of Site only for Purpose of Contract
The Contractor shall not use any portion of the Site for any purpose not connected
with the Works except with the prior approval of the Engineer.
42.5 Access for Maintenance
The Contractor shall maintain access to, in and through the Site for the inspection,
operation and maintenance of any of the Employer’s property which lies within the
Site or is accessed via the Site.
42.6 Restriction of Access to Employer’s Property
The Contractor and its Sub-Contractors and their employees, agents and
representatives shall not use or enter any buildings or property or land on or outside
the Site owned by or under control of the Employer except with the prior approval
of the Engineer, and the Contractor shall warn its Sub-Contractors, employees,
agents and representatives of this restriction.
42.7 Impossibility
If after the Commencement Date it becomes impossible to proceed with or

complete the Works, by reason of loss or damage to the Works caused by any risk
required to be insured under Clause 21.1, or any Excepted Risk, or any act of any
Authority, despite the Employer and the Contractor having used their best
endeavours to avoid or overcome the consequences of any such event, then the
Contractor shall give immediate notice to the Engineer who shall within fourteen
(14) days issue a notice suspending the Works in accordance with Clause 42.1.
TIME FOR COMPLETION
43.1 Time for Completion
The whole of the Works and, if applicable, any Section required to be completed
within a particular time as stated in the Appendix to Tender, shall be completed in
accordance with the provisions of Clause 48 within the Time for Completion stated
in the Appendix to Tender for the whole of the Works or the relevant Section (as
the case may be), calculated from the Commencement Date or such extended time
as may be allowed under Clause 44. If the Contractor fails to complete the Works
within such period the Engineer shall issue a notice in writing to the Contractor to
that effect and, for the avoidance of doubt, such written notice may be issued by the
Engineer even if the Contractor has notified the Engineer of its claim for an
extension of the Time for Completion pursuant to Clause 44.3. The fixing of a new
Time for Completion, after the issue of such a notice, shall cancel that notice and
the Engineer shall issue a further notice in writing under this Clause 43.1 as may be
necessary.

EXTENSION OF TIME
44.1 Extension of Time for Completion
In the event of a delay caused by:
a delay by the Engineer under Clause 7.1 or any other default or failure of the
Employer or Engineer (not caused or contributed to by the Contractor or any
Sub-Contractor or other party for whom the Contractor is responsible)
beyond any agreed time limit stated in this Contract or the Key Dates
Schedule (if stated in the Appendix to Tender to be applicable), provided
that the Contractor has given notice to the Employer not less than seven (7)
days before expiry of the agreed time limit and has complied with its
obligations under Clause 6.3;
b discovery of an Antiquity after the date of the Contract Agreement, not

indicated in or reasonably apparent from an inspection of the Site or the
results of any Site surveys and investigations carried out by the Contractor
(or which should have been carried out by the Contractor in accordance with
the Contract) or provided to the Contractor prior to the date of the Contract
Agreement;
c delay in receipt of any of the third party consents listed in the Specifications,
provided that the Contractor has taken all proper and timely steps to avoid
or reduce such delay;
d a change in any Law after the date of the Contract affecting the Works and
not reasonably foreseeable by the Contractor;
e weather conditions which the meteorological office records for the area
nearest to the Site indicate are exceptionally adverse for the time of year;
f delay by any Authority in carrying out work pursuant to its powers and
obligations in relation to the Works, provided that the Contractor has
supplied all necessary information, placed all necessary orders and
otherwise performed its obligations under the Contract in respect of such
work as soon as reasonably practicable and so as not to delay or disrupt the
relevant Authority in relation to such work;
g opening up for inspection or testing of any part of the Works in accordance

with Clauses 37 or 38 but only where stated in Clauses 37 or 38 to be at the
cost of the Employer;
h loss or damage occasioned by any one or more of the matters required to be

insured pursuant to Clause 22.1 or by any Excepted Risks (but subject to
Clause 20.1 regarding costs);

i suspension of the Works in accordance with Clause 42, but only where
stated in Clause 42 to be at the cost of the Employer;
j failure by the Employer to allow access to or possession of all or any part of

the Site in breach of Clause 41;
k damage or obstruction by any other contractor appointed by the Employer

and, provided that the Contractor has taken all reasonable precautions to
avoid or reduce such damage or obstruction
being such as fairly to entitle the Contractor to an extension of the Time for
Completion, the Engineer shall, after due consultation with the Employer and the
Contractor, determine the amount of such extension and shall notify the Contractor
accordingly, with a copy to the Employer.
44.2 Unavoidable additional work or expenditure
In the event that the Contractor is properly required to undertake unavoidable

additional work or expenditure as a direct result of any one or more of the events
described in Clause 44.1 a, b, d, g, i, j and k, for which it would not be reimbursed
by a payment under any other provision of the Contract the Contractor may notify a
claim for the value of such additional work or expenditure in accordance with
Clauses 44.3 and 44.4 and the Engineer shall (after due consultation with the
Quantity Surveyor) determine the value of such unavoidable additional work or
expenditure which has been properly and reasonably incurred by the Contractor and
which shall be added to the Contract Price, calculated wherever possible on the
basis of the Schedule of Rates and Prices/Bills of Quantities subject to the
following conditions:
a the Contractor shall minimise the amount of any such additional work or
expenditure and its cost and duration; and
b the cost of any such unavoidable additional work or expenditure shall not
include any additional profit or any loss of profit on other projects; and
c the Contractor shall not be entitled to claim any additional payment of any
kind, other than those payments to be made pursuant to this Clause 44.2, by
reason of any event described in this Clause 44.2
Provided always that the Contractor shall not be entitled to any such reimbursement
for any unavoidable additional work or expenditure incurred during the initial
period stated in the Appendix to Tender. For the avoidance of doubt, the
Contractor shall be entitled to make a claim under Clause 44.1 during such initial
period but not a claim for unavoidable work or expenditure.

44.3 Notification of Claims
The Engineer is not bound to make any determination under Clause 44.1 or 44.2
unless the Contractor has:
a within seven (7) days after such event has first arisen or after it has become
(or should reasonably have become) apparent to the Contractor that the
event had or was likely to cause it to incur unavoidable additional work or
expenditure and/or delay, notified the Engineer and within such notification
included its proposals to minimise any delays to the Time for Completion
and/or any increase in the Contract Price; and
b within twenty-eight (28) days (or such other reasonable time as may be
agreed by the Engineer) after such first notification submitted to the
Engineer detailed particulars of any requested extension of the Time for
Completion and/or unavoidable additional work or expenditure claims
including detailed analysis of the effect of the event on the Key Dates
Schedule (if stated in the Appendix to Tender to be applicable) and on the
critical path identified in the Programme to which it may consider itself
entitled as a result of the event or events.
44.4 Interim Particulars
Where an event notified under Clause 44.3 has a continuing effect such that the
Contractor cannot submit detailed particulars within the period referred to in Clause
44.3b, it shall nevertheless be entitled to an extension of the Time for Completion
and/or unavoidable additional work or expenditure claim if it submits to the
Engineer interim particulars at intervals of not more than twenty-eight (28) days
and final particulars within twenty-eight (28) days of the end of the effects resulting
from the event (without duplicating detailed particulars). On receipt of such interim
particulars, the Engineer shall make an interim determination of extension of the
Time for Completion and/or unavoidable additional work or expenditure claim and,
on receipt of the final particulars the Engineer shall review all the circumstances
and shall determine an overall extension of the Time for Completion and/or
adjustment to the Contract Price in relation to the unavoidable additional work or
expenditure in regard to the event. In both such cases the Engineer shall make its
determination after due consultation with the Employer, the Quantity Surveyor and
the Contractor, and shall notify the Contractor of the determination with a copy to
the Employer.

WORKING HOURS
45.1 No night, Friday or Public Holiday work
Subject to any provision to the contrary in the Specifications and Clause 46, none
of the Works shall be carried on during the night or on Fridays or on Public
Holidays without the prior approval of the Engineer, except when the work is
unavoidable or absolutely necessary for reasons of health and safety, in which case
the Contractor shall immediately advise the Engineer and provided that the
provisions of this Clause 45 shall not be applicable in the case of any work which it
is customary to carry out by rotary or double shifts.
RATE OF PROGRESS
46.1 Rate of Progress
If for any reason not falling within Clause 44.1 the rate of progress of the Works or
any Section is at any time, in the opinion of the Engineer, too slow to achieve
Completion by the prescribed or extended Time for Completion, the Engineer shall
notify the Contractor and the Contractor shall take such steps as are necessary and
as the Engineer may approve to expedite progress so as to complete the Works or
such Section by the Time for Completion. The Contractor shall not be entitled to
any additional payment for taking such steps. If, as a result of any notice given by
the Engineer under this Clause 46, the Contractor shall seek the Engineer’s
permission to carry out any work at night or on Fridays, such permission shall not
be unreasonably refused.
PENALTY FOR DELAY
47.1 Penalty for Delay
If the Contractor shall fail to achieve Completion of the Works or any Section
within the Time for Completion referred to in Clause 43.1, then the Contractor shall
pay to the Employer, subject to the Engineer having issued a notice under Clause
43.1, the sum stated in the Appendix to Tender as the penalty for such default for
every day or part of a day which shall elapse between the Time for Completion
referred to in Clause 43.1 and the date of Completion of the Works as stated in the
Taking Over Certificate in respect of the Works or the relevant Section but the sum
of such payment shall not in any case exceed the maximum percentage of the
Contract Price named in the Appendix to Tender. The Employer may, without
prejudice to any other method of recovery, deduct the amount of such penalty from
any monies in its hands which are otherwise due or which may become due to the
Contractor. The payment or deduction of such penalty shall not relieve the
Contractor from its obligation to complete the Works or from any other of its
obligations and liabilities under the Contract.

47.2 Reduction of Penalty for Delay
If a Taking Over Certificate is issued in respect of any Section or part pursuant to

Clause 48, the penalty for delay shall, for any period of delay after such Taking
Over Certificate and in the absence of alternative provisions in the Contract, be
reduced in the proportion which the value of the Section or part so certified bears to
the value of the whole of the Works.
TAKING OVER OF WORKS
48.1 Taking Over of Works
When the whole of the Works have achieved Completion and have satisfactorily
passed any final tests and other procedures that may be prescribed by the
Specifications the Contractor shall give notice to the Engineer requesting the
Engineer to issue a Taking Over Certificate in respect of the Works. The Engineer
shall, within twenty-one (21) days from the date of such notice either issue to the
Contractor, with a copy to the Employer, a Taking Over Certificate stating the date
on which, in its opinion, the Works achieved Completion in accordance with the
Contract or give instructions to the Contractor specifying all the work which, in the
Engineer’s opinion, requires to be done by the Contractor before the issue of such
Taking Over Certificate. The Engineer shall also notify the Contractor of any
defects in the Works affecting Completion that may appear after such instructions
and before Completion of the Works. The Contractor shall be entitled to receive a
Taking Over Certificate within twenty-one (21) days of Completion to the
satisfaction of the Engineer of the Works and making good any defects so notified.
48.2 Taking Over in Sections
In accordance with the procedure set out in Clause 48.1 the Contractor may request
and the Engineer shall issue a Taking Over Certificate in respect of:
a any Section in respect of which a separate Time for Completion is provided

in the Appendix to Tender; and
b any substantial part of the Permanent Works which has both achieved
Completion to the satisfaction of the Engineer and is occupied or used by
the Employer and/or which the Employer wishes to use or occupy.
48.3 Reinstatement of Surfaces
A Taking Over Certificate given in respect of any Section or part of the Permanent
Works before completion of the whole of the Works shall not be deemed to certify
Completion of any ground or other surfaces requiring reinstatement, unless such
Taking Over Certificate shall expressly so state.

DEFECTS
49.1 Defects Liability Period
The Defects Liability Period shall be as stated in the Appendix to Tender calculated
from the date of Completion of the Works stated in the Taking Over Certificate
issued in accordance with Clause 48 or, in the event of more than one Taking Over
Certificate having been issued by the Engineer under Clause 48, from the respective
dates so certified and for all purposes the Defects Liability Period shall include any
extended Defects Liability Period stated in the Appendix to Tender in respect of
particular equipment or parts of the Works and, where there are parts of the Works
that serve and/or are located in more than one Section, the Defects Liability Period
in respect of those parts of the Works shall be calculated from the date of
Completion of the Works stated in the Taking Over Certificate for the last Section
comprising any part of those Works.
49.2 Execution of Work of Repair
The Contractor shall:
a finish any items of work agreed to be outstanding on the date stated in the
Taking Over Certificate within the periods stated in such Taking Over
Certificate or otherwise as soon as practicable after such date; and
b execute all such work of amendment, reconstruction, rectification and

making good defects, imperfections, shrinkages or other faults as may be
required of the Contractor by the Engineer at any time during the Defects
Liability Period, or within fourteen (14) days after its expiration, as a result
of inspections made by the Engineer prior to its expiration, and the
Contractor shall commence and complete such work within any periods
stated in the Specifications and otherwise within a reasonable period of time
following the Engineer requesting such work to be carried out.
49.3 Cost of Execution of Work of Repair
All work referred to in Clause 49.2 shall be carried out by the Contractor at its own
expense if due to materials, goods, equipment or workmanship not being in
accordance with the Contract, or to neglect or failure on the part of the Contractor
to comply with any obligation under the Contract or, where the Contractor is
responsible for the design of any part of the Works, any fault in such design. If such
work shall be due to any other cause, the value of such work shall be ascertained
and paid for as a Variation in accordance with Clauses 51 and 52.

49.4 Remedy on Contractor’s Failure to carry out Work Required
If the Contractor shall fail to do any such work required by the Engineer in
accordance with Clause 49.2, then Clause 2.8 shall apply.
49.5 Contractor to Search
The Contractor shall, if required by the Engineer, search under the direction of the
Engineer for the cause of any defect, imperfection, shrinkage or fault appearing
during the progress of the Works or during the Defects Liability Period. Unless
such defect, imperfection, shrinkage or fault shall be one for which the Contractor
is liable under the Contract, the cost of the work carried out by the Contractor in
searching shall be borne by the Employer. If such defect, imperfection, shrinkage or
fault shall be one for which the Contractor is liable under the Contract, the cost of
the work carried out in searching shall be borne by the Contractor and who shall
repair, rectify and make good such defect, imperfection, shrinkage or fault at its
own expense in accordance with the provisions of Clause 49.
49.6 Defects Liability Certificate
The Defects Liability Certificate shall be issued by the Engineer within twenty-
eight (28) days after the expiration of the Defects Liability Period, or if different
Defects Liability Periods shall become applicable to different parts of the Works
the expiration of the latest such period, or (if later) as soon as any works ordered
during such period pursuant to Clauses 49 and 50 shall have been completed to the
satisfaction of the Engineer.
49.7 Unfulfilled Obligations
Notwithstanding the issue of the Defects Liability Certificate the Contractor and,
subject to Clause 62.1, the Employer shall remain liable for the fulfilment of any
obligation incurred under the provisions of the Contract prior to the issue of the
Defects Liability Certificate which remains unperformed at the time such Defects
Liability Certificate is issued.
URGENT REPAIRS
50.1 Urgent Repairs
If, by reason of any accident, or failure, or other event occurring to in or in

connection with the Works, or any part thereof, either during the execution of the
Works, or during the Defects Liability Period, any remedial or other work or repair
shall in the opinion of the Engineer be urgently necessary for the safety of the
Works and the Contractor when notified by the Engineer is unable or unwilling
immediately to do such work or repair, the Employer may employ and pay other
persons to carry out such work or repair as the Engineer may consider necessary. If

the work or repair so done by the Employer is work which, in the opinion of the
Engineer, the Contractor was liable to do at its own expense under the Contract, all
expenses properly incurred by the Employer in so doing shall be recoverable from
the Contractor by the Employer, or may be deducted by the Employer from any
monies due or which may become due to the Contractor.
VARIATIONS
51.1 Variations
The Engineer may instruct in accordance with this Clause 51 any Variation of the
form, quality or quantity of all or any part of the Works that may, in its opinion, be
necessary including any:
a increase or decrease in the quantity of any work, materials or equipment

included in the Works;
b omission of such work, materials or equipment;
c change in the character or quality or kind of any such work, materials or

equipment;
d change in the levels, lines, position and dimensions of any part of the
Works;
e additional work of any kind necessary for the completion of the Works; or
f change in any specified sequence or timing of construction of any part of the

Works
and no such Variation shall in any way vitiate or invalidate the Contract and all
such Variations shall be valued in accordance with this Clause 51 and Clause 52
and shall be issued on a Variation Form provided that where a Variation is
necessitated by a default of or breach of the Contract by the Contractor or any party
for which it is responsible, any additional cost attributable to such default or breach
51.2 Contractor Proposed Variation
The Contractor may propose a Variation to the Engineer at any time if it is

demonstrably in the best interests of the Works, and any such proposed Variation
shall be considered by the Engineer and, if approved by the Employer, shall then be
notified by the Engineer to the Contractor in accordance with Clause 51.3.

51.3 Variation Submission
When the Engineer notifies a proposed Variation to the Contractor in accordance

with Clauses 51.1 or 51.2, the Contractor within fourteen (14) days (or such other
period as may be agreed) shall submit to the Engineer a Variation Submission
comprising its proposals as to the effect of the proposed Variation on the Contract
Price, calculated in accordance with Clause 52 and as to its effect on the progress of
the Works and the Time for Completion.
51.4 Engineer's Consideration of Variation
The Engineer shall consider any Variation Submission submitted pursuant to

Clause 51.3 and shall seek to agree it with the Contractor (with or without
modification). By notice within seven (7) days from the date of a Variation
Submission (or such other period as may be agreed), the Engineer shall:
a instruct the Contractor using a Variation Form to proceed with the Variation
(whether or not reserving any aspect of the Variation Submission for later
agreement or suggested modification); or
b withdraw the proposed Variation.
51.5 Time and Cost of Variation
If the Engineer instructs the Contractor to proceed with a Variation pursuant to

Clause 51.4, but the Employer and the Contractor have not agreed within a further
twenty-eight (28) days from the date of such instruction to proceed any time and/or
cost proposals in the Variation Submission, then the Engineer shall ascertain the
time and cost effects of such Variation on a fair and reasonable basis utilising
wherever possible relevant periods of time in the Key Dates Schedule (if stated in
the Appendix to Tender to be applicable) and prices calculated in accordance with
Clause 52 and shall notify the Contractor accordingly. If the Contractor disputes
any consequent adjustment to the Contract Price or Time for Completion, it shall
notify such dispute under Clause 67 within twenty-eight (28) days from the date of
the Engineer’s notice and, in the absence of such notification of dispute or pending
its resolution, the adjustment to the Contract Price and/or the Time for Completion
set out in the Engineer’s notice shall prevail.
51.6 Urgent Variations
If the Employer considers a proposed Variation to be sufficiently urgent or that for

any other reason such Variation should be valued after implementation, the
Engineer shall instruct the Contractor to proceed with that Variation using a
Variation Form (marked as an "Urgent Variation"), by reference to this Clause 51.6
in advance of a Variation Submission, which shall then be submitted in accordance

with Clause 51.3 and considered and evaluated in accordance with Clauses 51.4 and
51.5.
51.7 Minimum effect of Variations
In all cases any Variation Submission shall minimise any increase in the Contract
Price and any delay in the Time for Completion.
51.8 Binding Variations
Any Variation and its effect on the Contract Price and/or Time for Completion,
when agreed or established in accordance with this Clause 51, shall be binding on
the parties.
VALUATION OF VARIATIONS
52.1 Valuation of Variations
All Variations shall be valued at the rates and prices set out in the Schedule of
Rates and Prices/Bill of Quantities if, in the opinion of the Engineer the same shall
be applicable. If the Schedule of Rates and Prices/Bill of Quantities does not
contain any rates or prices applicable to the Variation, then after due consultation
by the Engineer with the Quantity Surveyor and the Contractor, suitable rates or
prices shall be agreed upon between the Engineer and the Contractor. In the event
of disagreement the Engineer shall fix such rates or prices as shall, in its opinion, be
reasonable and proper having regard to all the circumstances. At any stage in the
valuation process the Contractor shall, when required to do so by the Engineer
and/or the Quantity Surveyor, produce all quotations, invoices, vouchers and any
other such evidence as requested by the Engineer and/or the Quantity Surveyor.
52.2 Power of Engineer to Fix Rates
If the nature or amount of any Variation relative to the nature or amount of the
whole of the Works or to any part thereof shall be such that, in the opinion of the
Engineer, the rate or price contained in the Schedule of Rates and Prices/Bill of
Quantities for any item of the Works is, by reason of such Variation, rendered
unreasonable or inapplicable, then a suitable rate or price shall be agreed upon
between the Engineer, the Quantity Surveyor and the Contractor. In the event of
disagreement the Engineer shall fix such other rate or price as shall, in its opinion,
be reasonable and proper having regard to the circumstances.
52.3 Entitlement to Payment for Variations
No Variation instructed by the Engineer pursuant to Clause 51 shall be valued

under Clause 52.1 or under Clause 52.2, unless before the implementation of the
Variation, notice shall have been given either:

a by the Contractor to the Engineer of its Variation Submission in accordance
with Clause 51.3;
b by the Engineer to the Contractor in accordance with Clause 51.6 of its

entitlement to implement the Variation prior to its valuation.
52.4 Daywork
The Engineer may, if, in its opinion it is necessary instruct that any Variation shall
be executed on a daywork basis. The Contractor shall then be paid for such
Variation under the conditions for daywork and at the rates and prices for dayworks
set out in the Schedule of Rates and Prices/Bill of Quantities.
The Contractor shall provide to the Engineer such receipts or other vouchers as may
be necessary to prove the amounts paid and, before ordering materials, shall submit
to the Engineer quotations for the same for its approval.
In respect of all work executed on a daywork basis, the Contractor shall, during the
continuance of such work, deliver each day to the Engineer an exact list in duplicate
of the names, occupation and time of all workmen employed on such work and a
statement, also in duplicate, showing the description and quantity of all materials
and Contractor's Equipment used on it (other than Contractor's Equipment allowed
for it elsewhere in the Contract Price). One copy of each list and statement shall, if
correct, or when agreed, be signed by the Engineer and returned to the Contractor.
At the end of each month the Contractor shall deliver to the Engineer a priced
statement of the labour, materials and Contractor's Equipment (except as aforesaid),
used and the Contractor shall not be entitled to any payment unless such lists and
statements have been fully and punctually delivered or unless if the Engineer shall
consider that for any reason the sending of such lists or statements by the
Contractor is impracticable and shall authorise payment for such work, either as
daywork on being satisfied as to the time employed and materials and Contractor's
Equipment used on such work, or at such value thereof as shall, in its opinion, be
fair and reasonable.
52.5 Continuation of Works
For the avoidance of doubt, the Contractor shall proceed with the Works while the
procedures set out in Clauses 51 and 52 are implemented.

CLAIMS PROCEDURE
53.1 Notice of Claims
In addition to obligations in relation to notification of claims under Clauses 44, 51

and 52 the Contractor shall send to the Engineer once every month an account
giving detailed particulars of all claims, pursuant to Clause 44.3 or Clauses 51 and
52 and stating any additional payment to which the Contractor may consider itself
entitled, and no claim for payment for any such work shall be considered which has
not been included in such particulars. If the particulars of a claim are not available
by the end of the current month the Contractor shall inform the Engineer that it
intends to submit a claim and it shall include full particulars in the next month's
account and if detailed particulars of a claim have already been submitted a
monthly cross-reference to the submitted detailed particulars shall be sufficient.
53.2 Contemporary Records
In addition to the accounts referred to in Clause 53.1, the Contractor shall keep such
contemporary records as may reasonable and necessary to support any claim it may
wish to make. The Engineer shall, on receipt of a notice under Clause 53.1, inspect
such contemporary records and may instruct the Contractor to keep any further
contemporary records as are reasonable and may be material to the relevant claim.
The Contractor shall permit the Engineer and the Quantity Surveyor to inspect all
records kept pursuant to this Clause 53.2 and shall supply copies as and when the
Engineer shall so instruct.
53.3 Failure to Comply
If the Contractor fails to comply with any of the provisions of this Clause 53 and
Clauses 44.3, 51 and 52 in respect of any claim, its entitlement to payment in
respect of such claim shall be void.
53.4 Payment of Claims
The Contractor shall be entitled to include in any payment application pursuant to

Clause 60 such amount in respect of any claim as the Engineer, after due
consultation with the Contractor, has notified the Contractor to be due.
CONTRACTOR’S EQUIPMENT
54.1 Contractor's Equipment (if applicable)
If stated to be applicable in the Appendix to Tender Clause 54 as set out in the Part

MATERIALS, GOODS AND EQUIPMENT
55.1 Approval of materials, goods and equipment not implied
The operation of this Clause 55 shall not imply any approval by the Engineer of any
materials, goods or equipment nor shall it prevent the rejection of any such
materials, goods or equipment at any time by the Engineer.
55.2 Vesting of materials, goods and equipment not on Site
If it is agreed that the Contractor shall be paid under Clause 60.2c in respect of
materials, goods and equipment listed in the Appendix to Tender before the same
are delivered to the Site, the Contractor shall transfer the property in the same to the
Employer before delivery to the Site by taking the actions described in Clause 55.3
if:
a such materials, goods and equipment have been manufactured or prepared

and are substantially ready for incorporation in the Works; and
b such materials, goods and equipment are the property of the Contractor or
the contract for the supply of the same to the Contractor expressly provides
that ownership shall pass unconditionally to the Employer upon the
Contractor taking the actions described in Clause 55.3.
55.3 Actions by Contractor
In order to transfer ownership of any materials, goods or equipment to the

Employer in accordance with this Clause 55 the Contractor shall take or cause the
supplier of such materials, goods and equipment to take the following actions:
a provide to the Engineer a Vesting Certificate in the form set out in Annex 4
evidencing that ownership of the materials, goods and equipment has vested
in the Employer;
b suitably mark or otherwise plainly identify the said materials, goods and
equipment so as to show that their destination is the Site, that they are the
property of the Employer and (where they are not stored at the premises of
the Contractor) to whose order they are held;
c set aside and store the said materials, goods and equipment so marked or
identified to the satisfaction of the Engineer; and
d send to the Engineer a schedule listing and giving the value of every item of
the materials, goods and equipment so set aside and stored and inviting it to
inspect the same.

55.4 Vesting in Employer
Upon the Engineer approving materials, goods and equipment for the purposes of
this Clause 55 and upon payment in full (less Retention Money) of the agreed value
of such materials, goods and equipment, the same shall vest in and become the
absolute property of the Employer and shall be in the possession of the Contractor
for the sole purpose of delivering them to the Employer and incorporating them in
the Works provided that:
a approval by the Engineer for the purposes of this Clause 55 or any payment
certified by it in respect of materials, goods and equipment pursuant to
Clause 60 shall be without prejudice to the exercise of any power of the
Engineer contained in the Contract to reject any materials, goods or
equipment which are not in accordance with the provisions of the Contract
and upon any such rejection the property in the rejected materials, goods or
equipment shall immediately re-vest in the Contractor;
b the Contractor shall be responsible for any loss or damage to such materials,
goods and equipment and for the cost of storing, handling and transporting
the same and shall effect such additional insurance as may be necessary to
cover the risk of such loss or damage.
55.5 Lien on materials, goods and equipment
Neither the Contractor nor a Sub-Contractor nor any other person shall have a lien
on any materials, goods or equipment which have vested in the Employer under
Clause 55.3 for any sum due to the Contractor or any Sub-Contractor or other
person and the Contractor shall take all such steps as may reasonably be necessary
to ensure that the title of the Employer and the exclusion of any such lien are
brought to the notice of Sub-Contractors and other parties dealing with any such
materials, goods and equipment.
55.6 Delivery to the Employer of vested materials, goods and equipment
Upon cessation of the employment of the Contractor under the Contract before the
completion of the Works whether as a result of the operation of Clause 63 or
otherwise, the Contractor shall deliver to the Employer any materials, goods or
equipment ownership of which has vested in the Employer by virtue of Clause 55.3
and if it shall fail to do so the Employer may enter any premises of the Contractor
or of any Sub-Contractor and remove such goods and materials and recover the cost
of so doing from the Contractor.
55.7 Export Licences
The Contractor shall obtain from the relevant authority of the country of export any
export licence required under the laws of the country of manufacture or production

of any materials, goods or equipment forming part of or for use in connection with
the Works. Any delay in obtaining such export licence shall not entitle the
Contractor to apply for an extension of the Time for Completion under Clause 44.
55.8 Materials Supplied by Employer
All materials supplied to the Contractor by the Employer for incorporation in the
Works shall remain the property of the Employer but shall be at the sole risk of the
Contractor until completion of the Works and the Contractor shall be responsible
for the same and shall make good at its own expense any loss or damage that may
happen thereto and shall insure the materials in accordance with Clause 21. All
such materials supplied to the Contractor which are not incorporated into the Works
shall be returned to the Employer at the Contractor’s expense.
55.9 Incorporation in Sub-Contracts
The Contractor shall incorporate provisions equivalent to those provided in this

Clause 55 in every Sub-Contract.
REMEASUREMENT
56.1 Quantities
If stated in the Appendix to Tender that this Clause 56 applies, the quantities set out
in the Schedule of Rates and Prices/Bill of Quantities are the estimated quantities of
work, materials and equipment, but they are not to be taken as the actual and correct
quantities required for the Works to be executed by the Contractor in fulfilment of
its obligations under the Contract.
WORKS TO BE MEASURED
57.1 Works to be Measured
If stated in the Appendix to Tender that this Clause 57 applies, the Engineer shall,
except as otherwise stated, ascertain and determine by measurement the value of
work done in accordance with the Contract. The Engineer shall, when it requires
any part or parts of the Works to be measured, give notice to the Contractor who
shall immediately assist the Engineer and the Quantity Surveyor in making such
measurement, and shall provide all particulars required. Should the Contractor not
assist, then the measurement made by the Engineer shall be the correct
measurement of the relevant work. For the purpose of measuring such Permanent
Work as is to be measured by records, the Engineer shall prepare records month by
month of such work and the Contractor, as and when called upon to do so shall,
within fourteen (14) days, examine and agree such records with the Engineer and
sign the same when so agreed. If the Contractor does not so examine and agree such
records, they shall be taken to be correct. If after examination of such records the

Contractor does not sign the same as agreed they shall nevertheless be taken to be
correct unless the Contractor shall within fourteen (14) days of such examination
lodge with the Engineer, notice of the respects in which such records are claimed to
be incorrect.
57.2 Measurement Net
The Works shall be measured net notwithstanding any general or local custom,
except where otherwise specifically described or prescribed in the Specifications.
PROVISIONAL AND PRIME COST SUMS
58.1 Expenditure of Provisional Sums
Expenditure of any Provisional Sum shall be subject to:
a the preparation of all remaining design information required for execution of

the Provisional Sum work; and
b unless the Employer has proposed a Nominated Sub-Contractor for such

work, the invitation by the Contractor of appropriate Sub-Contractor prices
and proposals for such Provisional Sum work or the submission by the
Contractor of its own prices and proposals for such Provisional Sum work;
and
c the review of all prices and proposals by the Engineer; and
d the approval of such prices and proposals by the Employer (unless the
Employer has proposed a Nominated Sub-Contractor to undertake such
works); and
e the authorisation by the Engineer of the relevant Provisional Sum work.
58.2 Expenditure of Prime Cost Sums
Subject to Clause 58.3 the expenditure of any Prime Cost Sum shall be subject to:
a the preparation of all remaining design information required for the

execution of the Prime Cost Sum work; and
b the determination by the Quantity Surveyor of a rate on which to calculate

the price of such Prime Cost Sum work or (unless the Employer has
proposed a Nominated Sub-Contractor for such Prime Cost Sum work) the
invitation by the Contractor of appropriate Sub-Contractor prices and
proposals for such Prime Cost Sum work or the submission by the
Contractor of its own prices and proposals for such Prime Cost Sum work;
and

c confirmation by the Contractor of its profit and overheads for supervising
such Prime Cost Sum work as set out in the Bills of Quantities/Schedule of
Rates and its rates for attendance and special attendance; and
d review of all prices and proposals by the Engineer and the Quantity
Surveyor; and;
e the authorisation by the Engineer of the relevant Prime Cost Sum work and
the amount payable for such Prime Cost Sum work.
58.3 Production of Vouchers
The Contractor shall, when required by the Engineer, produce all quotations,
invoices, vouchers and accounts or receipts in connection with expenditure in
respect of Provisional Sums and Prime Cost Sums.
NOMINATED SUBCONTRACTORS
59.1 Nominated Subcontractors (if applicable)
If stated to be applicable in the Appendix to Tender Clause 59 as set out in the Part
PAYMENT
60.1 Advance Payment Certificate
If provision is made in the Appendix to Tender for an advance payment, then

following the signing of the Contract Agreement and on presentation of the
Performance Bond and Advance Payment Guarantee in accordance with Clause 9,
an application may be made to the Engineer for an Advance Payment Certificate
and the Engineer shall issue to the Contractor an Advance Payment Certificate
within fourteen (14) days after receiving such application.
60.2 Monthly Statements
The Contractor shall submit to the Engineer after the end of each month a statement
in a form approved by the Engineer showing as at the end of that month:
a the estimated contract value of the Permanent Works executed;
b a list of any goods or materials delivered to the Site for but not yet
incorporated in the Permanent Works and their contract value;
c a list of any goods or materials listed in the Appendix to Tender which have
not yet been delivered to the Site but of which the property has vested in the
Employer pursuant to Clause 55 and their contract value;

d any other amounts which the Contractor is itself entitled under the terms of
the Contract; and
e the deduction to be made in respect of a proportion of any advance payment

as stated in the Appendix to Tender
unless in the opinion of the Contractor such values and amounts together shall not
justify the issue of an interim certificate.
Any amounts payable in respect of Nominated Sub-Contractors and Retention

Money are to be listed separately.
60.3 Monthly Payments
Within fourteen (14) days from the date of submission to the Engineer in
accordance with Clause 60.2 of the Contractor’s monthly statement, the Engineer
shall certify such statement to the Contractor and the Employer, and the Employer
shall within forty-two (42) days after such certified statement has been delivered to
the Employer pay to the Contractor (after deducting any previous payments on
account):
a the amount which in the opinion of the Engineer on the basis of the monthly
statement is due to the Contractor on account of Clauses 60.2a and 60.2d
less Retention Money as provided in Clause 60.5; and
b such amounts (if any) as the Engineer may consider proper (but in no case
exceeding the percentage of the value stated in the Appendix to Tender) in
respect of Clauses 60.2b and 60.2c less Retention Money as provided in
Clause 60.5.
The amounts certified in respect of any Nominated Sub-Contractors and Retention

Money shall be shown separately in the certificate. The Engineer shall not be bound
to issue an interim certificate for a sum less than that named in the Appendix to
Tender.
60.4 Final Account
Not later than the period set out in the Appendix to Tender after the date of the
Taking Over Certificate for the whole of the Works the Contractor shall submit to
the Engineer a statement of final account and all information reasonably required
for its verification showing in detail the value in accordance with the Contract of
the work done in accordance with the Contract together with all further sums which
the Contractor considers to be due to it under the Contract up to the date of such
Taking Over Certificate. Within the period set out in the Appendix to Tender after
receipt of the final account and of all information reasonably required for its
verification, or within the period set out in the Appendix to Tender after expiry of

the period for their submission if they have not been submitted within that period,
the Engineer shall issue to the Employer and the Contractor a final certificate
stating the amount (excluding any Retention Money) which in its opinion is finally
due under the Contract up to the date of such Taking Over Certificate and, after
giving credit to the Employer for all amounts previously paid by the Employer and
for all sums to which the Employer is entitled under the Contract up to the date of
such Taking Over Certificate (excluding any Retention Money), the balance if any
due from the Employer to the Contractor or from the Contractor to the Employer as
the case may be. Such balance shall be paid to or by the Contractor as the case may
require within forty-two (42) days after such certificate has been delivered to the
Employer and the Contractor.
60.5 Retention or Retention Bond
The Retention Money to be retained pursuant to Clauses 60.3a and 60.3b shall be a
sum equal to the percentage stated in the Appendix to Tender, excluding any
amounts due to the Contractor under Clause 44.2, until the amount so retained
reaches the limit of Retention Money stated in the Appendix to Tender provided
that if a Retention Bond is stated to be acceptable in the Appendix to Tender and if
such a Retention Bond has been duly provided, then no Retention Money shall be
retained.
60.6 Payment of Retention Money
Retention Money shall be paid as follows:
a if the Engineer shall issue a Taking Over Certificate in respect of any

Section or part of the Works pursuant to Clauses 48.2 or 48.3 there shall
become due on the date of issue of such Taking Over Certificate, one (1)
half of the amount retained as Retention Money in respect of such Section
or part as certified pursuant to Clause 60.3 provided that any sum or sums
paid under this Clause 60.6 shall not exceed in aggregate one (1) half of the
total Retention Money deducted in accordance with Clauses 60.3a and 60.3b
at the date of issue by the Engineer of such Taking Over Certificate subject
to the Contractor complying with its obligations under Clause 7.2b;
b one (1) half of the Retention Money less any sums paid pursuant to Clause
60.6a shall become due to the Contractor on delivery to the Employer of the
Taking Over Certificate for the whole of the Works issued by the Engineer
pursuant to Clause 48.1 subject to the Contractor complying with its
obligations under Clause 7.2b;
c the other half of the Retention Money shall become due to the Contractor on
the issue of the Defects Liability Certificate notwithstanding that at such

time there may be outstanding claims by the Contractor against the
Employer
provided always that:
d if at such time there shall remain to be executed by the Contractor any

outstanding work referred to under Clause 48 or any works ordered during
such period pursuant to Clauses 49 and 50, the Employer shall be entitled to
withhold payment until the completion of such works of so much of the
second half of the Retention Money as shall in the opinion of the Engineer
represent the cost of the works so remaining to be executed;
e in the event of different Defects Liability Periods having become applicable

to different Sections or portions of the Works pursuant to Clause 48, the
expression “issue of the Defects Liability Certificate” shall for the purposes
of this Clause 60.6 be deemed to mean the issue of the latest of such
certificates subject only to any exercise of the Engineer of any discretion
stated in the Appendix to Tender for it to release part of any Retention
Money to acknowledge zero or very low defects arising during any extended
Defects Liability Period agreed for any particular items of specialist
equipment or parts of the Works; and
f all amounts of Retention Money due to the Contractor shall be subject to

statements, certificates and payment in accordance with Clauses 60.2 and
60.3.
60.7 Interest on Overdue Payments
In the event of failure by the Employer to make payment in accordance with

Clauses 60.3, 60.4 and 60.6, the Employer shall pay to the Contractor interest upon
any overdue payment at the rate stated in the Appendix to Tender from the latest
date when the payment should have been made.
60.8 Correction and withholding of certificates
The Engineer may omit from any certificate the value of any work, materials, goods
or equipment which are not in accordance with the Contract and may by any
certificate delete, correct or modify any amount previously certified by it provided
always that:
a the Engineer shall not in any certificate delete or reduce any sum previously
certified in respect of work done, goods or materials supplied or services
rendered by any Nominated Sub-Contractor if the Contractor shall have
already paid or be bound to pay that sum to the Nominated Sub-Contractor;
and

b if the Engineer in the final certificate shall delete or reduce any sum
previously certified in respect of work done, goods or materials supplied or
services rendered by any Nominated Sub-Contractor and already paid by the
Contractor to the Nominated Sub-Contractor, the Employer shall reimburse
to the Contractor the amount of any sum overpaid by the Contractor to the
Nominated Sub-Contractor in accordance with the certificates issued under
Sub Clause 60.3 which the Contractor shall be unable to recover from the
Nominated Sub-Contractor together with interest at the rate stated in Clause
60.7 from forty-two (42) days after the date of the final certificate issued
under Clause 60.4 until the date of such reimbursement.
60.9 Copy certificate to Contractor
Every certificate issued by the Engineer pursuant to this Clause 60 shall be

simultaneously sent to the Employer and copied to the Contractor.
60.10 Currency of Payments
All payments to the Contractor shall be made in Bahrain Dinars unless otherwise
agreed by the Employer and the Contractor.
60.11 Payment to Contractor’s Bank
If the Contractor wishes payment of any monies due to it under the Contract to be
made to its bank then it shall arrange for its bank to complete and shall then itself
complete and deliver to the Employer a Request for Payment by Bank Transfer in
the form set out in Annex 5. Any such payment by the Employer to the Contractor’s
bank shall be subject to and on the basis of the conditions and provisions set out in
such Request for Payment by Bank Transfer.
60.12 Payments due from the Contractor
All costs, damages or expenses for which the Contractor is liable to the Employer
under the Contract may be deducted by the Employer from any monies due or
becoming due to the Contractor under the Contract or may be recovered by action
at law or otherwise from the Contractor.
60.13 Contract Price not Subject to Adjustment
Subject to Clause 60.14 and save as specifically provided elsewhere in the

Conditions of Contract the Contract Price shall not be adjusted in respect of any
increase or decrease of cost to the Contractor in carrying out the Works by reason
of alterations in the rate of wages and allowances payable to labour or changes in
conditions of employment, changes in the cost of materials, goods and equipment
(whether for the Permanent or Temporary Works), consumable stores and fuel
and power or variation in the rates of freight and insurance or the incidence or

rates of landing charges or variation in the cost of any other matter or thing of any
nature subsequent to the date of the Tender.
60.14 Customs Duty
If after the date of the Tender there shall be any alteration of customs duty payable
in respect of any materials, goods or equipment imported into Bahrain by the
Contractor (or in its name by an agent) for the Works and which alteration increases
or decreases the cost to the Contractor in carrying out the Works, the net increase or
decrease of cost shall be certified by the Engineer and shall be paid to or allowed by
the Contractor and the Contract Price adjusted accordingly.
WARRANTY AND LIABILITY
61.1 Warranties
Notwithstanding the issue of a Defects Liability Certificate in respect of the Works

or any Section, the Contractor shall remain liable for the Works and each Section in
respect of:
a its statutory duties under the Laws;
b all and any extended warranties for particular items of equipment or parts of
the Works as identified in the Specifications or Appendix to Tender;
c any ongoing maintenance obligations of the Contractor under the Contract

or under any other contract.
62.1 Decennial Liability
The Contractor shall be liable for the consequences of errors, omissions or

negligence on its part and in particular:
where Clause 8.2 is stated to be applicable in the Appendix to Tender it shall be

liable for any defects in the design and construction of any part of the Works; and
where Clause 8.3 is stated to be applicable in the Appendix to Tender it shall be

liable for those defects in the design of the Works for which it is responsible, and
shall be liable for defects in the construction of any part of the Works
if and to the extent that any such defects become apparent during the period of ten
(10) years from the date of Completion stated in the Taking Over Certificate for the
part of the Works.

62.2 Cessation of Employer’s Liability
The Employer shall not be liable to the Contractor for any matter or thing arising
out of or in connection with the Contract or the execution of the Works unless the
Contractor shall have made a claim in respect thereof before the issue of the
Defects Liability Certificate under Clause 49.6.
REMEDIES AND POWERS
63.1 Insolvency of Contractor
If the Contractor shall become bankrupt, or have a receiving order made against it,
or shall present its petition in bankruptcy, or shall make an arrangement with or
assignment in favour of its creditors, or shall agree to carry out the Contract under a
committee of inspection of its creditors or, being a corporation, shall go into
liquidation (other than a voluntary liquidation for the purposes of amalgamation or
reconstruction), or if the Contractor shall assign the Contract without the prior
consent of the Employer, or shall have an execution levied on its goods, then the
employment of the Contractor under the Contract shall automatically terminate and
the Engineer and the Employer may take the actions described in the remainder of
this Clause 63.
63.2 Default of Contractor
If the Engineer shall certify to the Employer that in its opinion the Contractor:
a has breached Clause 4.2; or
b has abandoned the Works or the Contract; or
c has failed to commence the Works or has suspended the progress of the
Works for twenty-eight (28) days after receiving notice from the Engineer to
proceed; or
d has failed to remove materials, goods or equipment from the Site or to

remove and replace work for twenty-eight (28) days after receiving from the
Engineer notice that such materials, goods, equipment or work have been
condemned and rejected by the Engineer under the Contract; or
e is not executing the Works in accordance with the Contract, or is not

carrying out its obligations under the Contract; or
f has in breach of Clause 3 sub-contracted any part of the Works,
then the Employer may, after giving not less than fourteen (14) days notice to the
Contractor specifying the breach (and if the breach is not remedied during that
period), terminate the employment of the Contractor under the Contract and the
Contractor shall immediately leave the Site in an orderly manner and the Employer
may enter upon the Site and the Works and may itself complete the Works or may
employ any other contractor to complete the Works. The Employer or such other
contractor may use for such completion so much of the Contractor's Equipment,
Temporary Works and materials, goods and equipment which have become the
property of the Employer under Clause 54.2 as it or they may think proper, and the
Employer may, at any time, sell any of the said Contractor's Equipment, Temporary
Works and unused materials, goods and equipment and apply the proceeds of sale
in or towards the satisfaction of any sums due or which may become due to it from
the Contractor under the Contract.
63.3 Valuation Date of Termination
The Engineer shall, as soon as practicable after termination of the employment of

the Contractor pursuant to Clauses 63.1 or 63.2, fix and certify what amount, if any,
had at the time of such termination been reasonably due to the Contractor in respect
of work then done by it under the Contract and the value of any of the said unused
or partially used materials, goods and equipment and any Temporary Works.
63.4 Payment after Termination
If Contractor's employment is terminated under Clauses 63.1 or 63.2, the Employer

shall not be liable to pay to the Contractor any money on account of the Contract,
including any sum properly certified by the Engineer as due but not yet paid by the
Employer, until the costs of completion of the Works and all damages for delay in
Completion and other expenses incurred by the Employer have been ascertained
and their amount certified by the Engineer, in conjunction with the Quantity
Surveyor. The Contractor shall then be entitled to receive only such amount, if any
as the Engineer may certify would have been payable to it upon due Completion by
it after deducting the said amount. If such amount shall exceed the sum which
would have been payable to the Contractor on due completion by it, then the
Contractor shall upon demand pay to the Employer the amount of such excess and
it shall be a debt due by the Contractor to the Employer and shall be recoverable
accordingly.
63.5 Assignment of Benefit of Agreements
Unless prohibited by the Laws and if so required by the Engineer, the Contractor
shall upon the termination of its employment under Clauses 63.1 or 63.2 assign to
the Employer without payment the benefit of any agreement which the Contractor
has entered into for the supply of materials, goods or equipment or for the execution
of any works for the purposes of the Contract but on the terms that a Sub-
Contractor shall be entitled to make any reasonable objection to any further
assignment thereof by the Employer and the Employer may pay the Sub-Contractor
for any such materials, goods and equipment supplied and delivered to the Site and

for works executed under such agreement insofar as amounts due have not already
been paid by the Contractor. The Employer’s rights under this Clause 63.5 are in
addition to its rights to pay Nominated Sub-Contractors as provided in Clause 59.4
and payments under Clause 59.4 or under this Clause 63.5 may be made out of
Retention Money in the hands of the Employer.
DEFAULT OF EMPLOYER
64.1 Default of Employer
In the event of the Employer:
a failing to pay to the Contractor the amount due under any certificate of the
Engineer within three (3) months after the same shall have become due
under the terms of the Contract, subject to any deductions or set off that the
Employer is entitled to make under the Contract; or
b interfering with or obstructing the issue of any such certificate; or
c abandoning the Works in accordance with Clause 42.2 or giving notice to

the Contractor that for unforeseen reasons, it is impossible for it to continue
to meet its contractual obligations
the Contractor shall be entitled without prejudice to any other rights or remedies to
terminate its employment under the Contract by giving not less than fourteen (14)
days prior notice to the Employer.
64.2 Clearance of Site
Upon the expiry of such notice the Contractor shall promptly remove from the Site
all Contractor's Equipment and Temporary Works.
64.3 Payment after termination for Employer default
In the event of such termination the Employer shall be under the same obligations
to the Contractor in regard to payment as if the Contract had been terminated under
the provisions of Clause 66 (if stated in the Appendix to Tender to be applicable)
but in addition to the payments specified in Clause 66.7 (if stated in the Appendix
to Tender to be applicable) the Employer shall pay to the Contractor the amount of
any loss or damage to the Contractor arising out of or in connection with or by
consequence of such termination.

CORRUPTION
65.1 Prevention of Corruption
Any commission, advantage, gift, gratuity, reward or bribe given, promised or

offered by or on behalf of the Contractor or any Sub-Contractor, employee, agent or
representative or any other person on its or their behalf to any officer, servant,
representative or agent of the Employer or of the Engineer or to any person on their
behalf or on behalf of any of them in relation to the obtaining or to the execution of
the Contract or of any other contract with the Employer shall, in addition to any
criminal liability which may be thereby incurred, subject the Contractor to the
termination of its employment under the Contract and under all other contracts
which it may have entered into with the Employer and also to the payment of any
loss or damage resulting from such cancellation. The Employer shall be entitled
upon a certificate to the Engineer to deduct the amounts so certified from any
monies due to the Contractor under the Contract or any other contract or to recover
the said amounts as a debt due or partly the one and partly the other as the
Employer shall deem advisable.
SPECIAL RISKS
66.1 Special Risks (if applicable)
If stated to be applicable in the in the Appendix to Tender Clause 66 as set out in

the Part 2 Conditions shall apply and shall be incorporated in the Contract.
DISPUTES
67.1 Settlement of Disputes
If any dispute or difference shall arise between the Employer and the Contractor in
connection with or arising out of the Contract or the Works including any dispute as
to any decision opinion instruction direction certificate or valuation of the Engineer
(whether during the progress of the Works or after their completion and whether
before or after the determination abandonment or breach of the Contract) it shall be
referred to and settled by the Engineer who shall notify its decision to the Employer
and the Contractor. Unless the Contract shall have already been determined or
abandoned the Contractor shall continue to proceed with the Works in accordance
with the Contract and shall immediately give effect to every such decision of the
Engineer unless and until the same shall be revised by mediation in accordance with
Clause 67.2 (if stated in the Appendix to Tender to be applicable) or an Arbitration
Committee (as defined in Clause 67.3) as appointed in accordance with Clause
67.3. Such decision shall be final and binding on the Contractor and the Employer
unless either of them shall require that the matter be referred to mediation or
arbitration in accordance with Clauses 67.2 or 67.3.

67.2 Mediation (if applicable)
If stated to be applicable in the Appendix to Tender Clause 67.2 as set out in the
Part 2 Conditions shall apply and shall be incorporated in the Contract.
67.3 Arbitration
If the Engineer shall fail to give such decision for a period of three (3) months after
being requested to do so or if either the Employer or the Contractor is dissatisfied
with any such decision of the Engineer then and in any such case subject to Clause
67.2 (if stated in the Appendix to Tender to be applicable) either the Employer or
the Contractor may within three (3) months after receiving notice of such decision
or within three (3) months after the expiration of the said period for such decision
or within three (3) months after the failure of any mediation under Clause 67.2 (as
the case may be) require that the matter be referred to the arbitration of an
arbitration committee (the Arbitration Committee) to be formed of three (3)
members. The Employer and the Contractor shall each appoint one (1) member and
if one party fails so to appoint within fifteen (15) days of being requested by the
other party so to do, the H.E. The Minister of Justice of the Kingdom of Bahrain
upon a request from either party shall appoint a member for the party who has so
failed to appoint. The third member, who shall be the Chairman of the Arbitration
Committee, shall be appointed by agreement between the other two (2) members
and if such agreement is not reached within fifteen (15) days after their
appointment, the said H.E. The Minister of Justice of the Kingdom of Bahrain shall
appoint the third member upon the request of either party.
67.4 Arbitration rules
In any arbitration:
a the Arbitration Committee shall have full power to open up, revise and
review any decision, opinion, direction, certificate or valuation of the
Engineer;
b neither party shall be limited in the proceedings before the Arbitration

Committee to the evidence or agreements put before the Engineer for the
purpose of obtaining its said decision;
c no decision given by the Engineer in accordance with the Contract shall

disqualify it from being called as a witness and giving evidence before the
Arbitration Committee on any matter relevant to the dispute or difference
referred to the Arbitration Committee;
d no such appointments of arbitration shall be made and no arbitration shall

proceed until after the date of issue of the Taking Over Certificate with
respect to the whole of the Works unless the reference to arbitration relates

solely to the withholding by the Engineer of the Taking Over Certificate
with respect to the whole of the Works to which certificate the Contractor
claims in accordance with the Conditions of Contract to be entitled;
e the award of the Arbitration Committee shall be reached if not unanimously

by a majority of the Arbitration Committee;
f the award of the Arbitration Committee shall be final and binding on the
parties;
g the costs of the arbitration shall be within the discretion of the Arbitration
Committee; and
h such arbitration shall take place in Bahrain and shall be conducted in the
English Language.

ANNEX 1
To Conditions of Contract
Form of Advance Payment Guarantee
(see Clauses 9.3 of the Conditions of Contract and the Appendix to Tender)
FORM OF ADVANCE PAYMENT GUARANTEE
To be engrossed on Bank headed paper and addressed to the Employer.
No terms shall be deleted from this Guarantee nor shall any terms be added.
_______________________________________________________________________
Bank Ref: Dated:
Dear Sirs,
Advance Payment Guarantee Number:
Contractor:
Date of Contract:
_______________________________________________________________________
In consideration of you, [ ] (the Employer) having made an advance payment of [ ] ([

]) (Advance Payment) being an amount equal to [ ] percent ([ ]%) of the price
recorded in the above contract (the Contract) to [ ] of [ ] (the Contractor) we, the [
] Bank of [ ] irrevocably and unconditionally guarantee to the Employer subject to the terms
below, that the Contractor shall perform and fulfil all the undertakings, covenants, terms and
conditions of the Contract for [ ] (the Works) and of any extensions of the Contract, and that
the Contractor shall perform and fulfil all the undertakings, covenants, terms and conditions
of the Contract and all changes, modifications, additions or amendments to the Contract that
may be made, and that the Contractor shall also fully indemnify, defend and hold harmless the
Employer from all costs, liability and damage which the Employer may suffer by reason of
the failure of the Contractor to do so.
In the event that the Employer, in its absolute discretion, gives written notice to us at any time
of the failure of the Contractor to perform or fulfil any of the acts or obligations set out in the
above paragraph, we unconditionally and irrevocably undertake, without any right of set off
or counterclaim whether on our behalf or on behalf of the Contractor, to pay to the Employer
the sum equivalent to the lesser of BD[ ] ([ ]) (the amount of the Advance Payment) or such
portion of the Advance Payment as may then be outstanding. Such written notice of the
Employer shall be conclusively binding on us for all purposes under this Advance Payment
Guarantee.

We further agree that any change, modification, addition or amendment which may be made
to the terms and conditions of the Contract, or to the Works to be performed pursuant to the
Contract, or to the payments to be made on account pursuant to the Contract, or any extension
of the time of performance of the Works, or any settlement, promise not to sue or other action
on the part of either the Employer or the Contractor to the other shall not in any way release
us from our continuing liability under this Advance Payment Guarantee, and we expressly
waive our right to consent to or to receive notice of any such change, modification, addition,
amendment, extension, settlement, promise or action.
This Advance Payment Guarantee shall be valid from the date upon which the Advance
Payment is received by the Contractor and shall remain valid until the extinction of the
Advance Payment by its recoupment from the Contractor in accordance with the terms of the
Contract whereupon our liability under this Advance Payment Guarantee shall immediately
automatically cease or until the [ ] day of [ ] 20[ ] when the
amount of the Advance Payment still outstanding at such date shall automatically fall due for
payment and shall be paid to the Employer within seven (7) days.
This Advance Payment Guarantee shall be governed by and interpreted under the Laws of the
Kingdom of Bahrain. It shall be returned to us on its expiry.
Signed …………………………………… (as appropriate by properly authorized

officials for and on behalf of the
Guaranteeing Bank)

ANNEX 2
Form of Performance Bond
(see Clause 9.1 of the Conditions of Contract and the Appendix to Tender)
To be engrossed on Insurance Company / Bank headed paper and addressed to the Employer.
No terms shall be deleted from this Performance Bond nor shall any terms be added
Bank ref: Dated:
Dear Sirs,
Performance bond number:
Project:
Contractor:
Date of Contract:
___________________________________________________________________________
In consideration of you, [ ] of [ ] (the Employer)

having agreed to enter into the above contract (the Contract) with [ ] of [ ]
(the Contractor), we, the [ ] Insurance Company / Bank of [ ] irrevocably and
unconditionally guarantee to the Employer subject to the terms below , that the Contractor
shall well and truly perform and fulfil all undertakings, covenants, terms and conditions of the
Contract for [ ] (the Works) and any extensions of the Contract, and that the
Contractor shall perform and fulfil all the undertakings, covenants, terms and conditions of
the Contract and all changes, modifications, additions or amendments to the Contract that may
be made, and that the Contractor shall also fully indemnify, defend and hold harmless the
Employer from all costs, liability and damage which the Employer may suffer by reason of
the failure of the Contractor so to do.
In the event that the Employer, in its absolute discretion, gives written notice to us at any time
of the failure of the Contractor to perform or fulfil any of the acts or obligations set out in the
above paragraph, we unconditionally and irrevocably undertake, without any right of set off
or counterclaim whether on our behalf or on behalf of the Contractor, to pay to the Employer
the sum of BD[ ] ([ ]) being an amount equal to [ ] per cent ([ ]%) of the price
recorded in the Contract. Such written notice of the Employer shall be conclusively binding
on us for all purposes under this Performance Bond.

We further agree that any change, modification, addition or amendment which may be made
to the terms and conditions of the Contract, or to the Works to be performed pursuant to the
Contract, or to the payments to be made on account pursuant to the Contract, or any extension
of the time of performance of the Works or any settlement, promise not to sue or other action
on the part of either the Employer or the Contractor to the other shall not in any way release
us from our continuing liability under this Performance Bond, and we expressly waive our
right to consent to or to receive notice of any such change, modification, addition,
amendment, extension, settlement, promise or action.
This Performance Bond shall be valid until the [ ] day of [ ] 20[ ] or until the date of
issue of the Defects Liability Certificate (as defined in the Contract) by the Engineer (as
defined in the Contract) whichever shall be the later and any request for payment under this
Performance Bond must be received by us on or before the later of such dates.
This Performance Bond shall be governed by and interpreted under the Laws of the Kingdom
of Bahrain. It shall be returned to us on its expiry.
Signed …………………………………… (as appropriate by properly authorized

officials for and on behalf of the
Guaranteeing Bank)
To:

ANNEX 3
Form of Parent Company Guarantee
(see Clause 9.4 of the Conditions of Contract)
Name and address of Employer: [ ] (together with

successors and assigns, the Employer).
Brief description of Contract: [ ] between the Employer and [ ] (the Contractor)

dated [ ] (the Contract).
In consideration of you, the Employer, awarding the Contract to the Contractor, we (name of
parent company) [ ] irrevocably and unconditionally guarantee to you,
as a primary obligation, the due performance of all the Contractor’s obligations and liabilities
under the Contract, including the Contractor’s compliance with all its terms and conditions
according to their true intent and meaning.
If the Contractor fails to so perform its obligations and liabilities and comply with the
Contract, we shall indemnify the Employer against and from all damages, losses and expenses
(including legal fees and expenses) which arise from any such failure for which the
Contractor is liable to the Employer under the Contract.
This Guarantee shall continue in full force and effect until all the Contractor’s obligations and
liabilities under the Contract have been discharged, when this guarantee shall expire and shall
be returned to us, and our liability under this Guarantee shall be discharged absolutely.
This Guarantee shall apply and be supplemental to the Contract as amended or varied by the
Employer and the Contractor from time to time. We hereby authorise them to agree any such
amendment or variation, the due performance of which and compliance with which by the
Contractor are likewise guaranteed under this Guarantee. Our obligations and liabilities under
this Guarantee shall not be discharged by any allowance of time or other indulgence
whatsoever by the Employer to the Contractor, or by any variation or suspension of the works
to be executed under the Contract, or by any amendments to the Contract or to the constitution
of the Contractor or the Employer, or by any other matters, whether with or without our
knowledge or consent.

This Guarantee shall be governed by the Laws of the Kingdom of Bahrain and any dispute
under this Guarantee shall be settled in accordance with the dispute resolution provisions set
out in the Contract. We confirm that the benefit of this Guarantee may be assigned subject
only to the provisions for assignment of the Contract.
Date…………………………. Signature(s)……………………………………
(as appropriate by properly authorised officials for
and on behalf of the parent company)

ANNEX 4
Form of Vesting Certificate
We, [ ] of [ ] in consideration of receipt of payment

for the materials/goods detailed in the attached Schedule (the Materials/Goods), declare and
undertake as follows:-
1. The Materials/Goods are intended for inclusion in the works comprising [

] (the Works) which we have undertaken to construct at [ ] (the
Site) under a contract dated [ ] (the Contract) between us and [
] (the Employer) and nothing remains to be done to the Materials/Goods to
complete the same up to the point of their incorporation in the Works.
2. The Materials/Goods have been and shall remain set apart at the premises where
they have been manufactured, assembled or are stored, or shall be stored at the Site,
and have been and shall remain clearly and visibly marked, individually or in sets,
either by letters or figures or by reference to a pre-determined code so as to identify
the Employer’s interest therein and their destination as being the Works.
3. Any sub-contract or supply contract relating to the Materials/Goods is in writing

and expressly provides that the property in the Materials/Goods has passed
unconditionally to us and a copy of the relevant sub-contract or supply contract is
attached hereto.
4. The Materials/Goods are and shall remain in accordance with the Contract.
5. The Materials/Goods are and shall remain insured against loss or damage for their
full value under a policy of insurance protecting the interests of the Employer and
us in respect of all appropriate risks during the period commencing on the date of
this Certificate until the date of incorporation of the Materials/Goods in the Works
and a copy of the relevant insurance certificate/policy is attached to this
Certificate.
6. The Materials/Goods shall automatically on the date of this Vesting Certificate

become the property of the Employer free from any charge, lien, pledge, retention
of title claim or other third party interest.
7. We shall not, except for use upon the Works remove the Materials/Goods or cause
or permit the same to be moved or removed from the premises where they are
currently located, namely [ ].

8. We shall remain responsible for any loss of or damage to the Materials/Goods and
for the cost of storage, handling and insurance of the Materials/Goods until such
time as they are incorporated into the Works.
Dated
............................................................................................
Signed for and on behalf of

............................................................................................
By
............................................................................................
Witness to the Signature

............................................................................................
Name
............................................................................................
Address
............................................................................................
............................................................................................
............................................................................................
Occupation
............................................................................................

ANNEX 5
Form of Request for Payment by Direct Bank Transfer
To be engrossed on Contractor’s headed paper and addressed to the Employer.
No terms shall be deleted from this Request nor shall any terms be added
To: The Employer

Re: Project Name:
Contract No:
Contractor:
___________________________________________________________________________
Dear Sirs,
We refer to the Contract dated [ ] for [

] (the Contract) between you (the Employer) and us (the Contractor). We have made no
previous request to you regarding the method of payment of monies falling due under the
Contract (the Contract Proceeds).
We hereby request and authorise you to pay as from the date of this Request the Contract
Proceeds into our Account No [ ] with [ ] (the Bank).
In submitting this authority and Request it is hereby agreed as follows: -
a the receipt of the Bank shall constitute a complete discharge in favour of the
Employer of all payments so made;
b the Contractor undertakes to raise no claim in respect of and to accept

liability for and to indemnify and hold harmless the Employer from any and
all claims made by third parties including the Bank and from any and all
costs and losses arising in connection with:
i the making by the Employer of any payments of the Contract Proceeds

to the Bank pursuant to this authority and request;

ii the failure of the Employer howsoever caused to commence, continue
or cease making any payments of the Contract Proceeds to the Bank
pursuant to this authority and Request provided that in such case
payment is otherwise made as required by law or order of the Courts of
the Kingdom of Bahrain
c this authority and Request neither is nor constitutes notice of and

assignment of the Contract Proceeds in favour of the Bank.
d Contract Proceeds shall mean those sums which are due to the Contractor
under the Contract between the Employer and the Contractor and which
sums are subject to any deductions or set off made by the Employer in
accordance with the provisions of the Contract.
e this authority and Request cannot be varied or cancelled without the prior
written consent of the Bank.
Yours faithfully
CONTRACTOR:
Signature:
1. We hereby confirm our understanding and unqualified acceptance of the terms of

this letter and agree that neither this letter nor any payment made pursuant to this
letter shall create any contractual or fiduciary relationship between the Employer
and the Bank.
Countersigned: ……………………………………….. for and on behalf of the

Bank.
Dated: …………………………………………
2. We hereby acknowledge receipt of the original of this letter and confirm that we
have no objection to the method of payment suggested.
Countersigned: …………………………………..for and on behalf of the

Employer.
Dated: ……………………………………..

ANNEX 6
Form of Retention Bond
(see Clause 60.5 of the Conditions of Contract and the Appendix to Tender)
To be engrossed on Insurance Company / Bank headed paper and addressed to the Employer.
No terms shall be deleted from this Retention Bond nor shall any terms be added
Bank ref: dated:
Dear Sirs,
Retention Bond Number:
Project:
Contractor:
Date of Contract:
1. In consideration of you, [ ] of [ ] (the

Employer) having agreed to enter into the above contract (the Contract) with [
] of [ ] (the Contractor) and payment to the Contractor of the Contract Price
(as defined in the Contract), we, the [ ] Insurance Company / Bank of
[ ] (the Surety) guarantee unconditionally and irrevocably
guarantees as the primary obligor to pay to the Employer immediately on first
demand of the Employer (waiving all rights of objection and defence and without
reference to the Contractor) any amount demanded by the Employer from time to
time up to the maximum aggregate value of this bond at the time of the demand.
2. The value of this bond shall be for an amount of BD[ ] ([ ] Bahraini Dinars)
up to the date stated on the Defects Liability Certificate (as defined in the Contract)
for the whole of the Works and thereafter be for an amount of BD[ ] ([
] Bahraini Dinars).
3. Any demand by the Employer shall be in writing addressed to the office of the
Surety at [ ] (ref:[ ]) and shall state the amount of the payment
which is to be made to the Employer by the Surety.

4. The Surety's obligations under this bond shall be continuing and shall remain in full
force and effect until the [ ] day of [ ] 200[ ] or until the date stated on the
Defects Liability Certificate (as defined in the Contract) whereupon this bond shall
expire whichever shall be the later except in relation to demands made by the
Employer prior to such date and not satisfied by the Surety.
5. The benefit of this bond shall be freely assignable by the Employer without the
consent of the Surety or the Contractor being required to any party to whom the
benefit of the Contract has been assigned.
6. Notices and communications shall be deemed to have been served or received in the
case of:
6.1 personal delivery on the date of delivery;
6.2 pre-paid registered or recorded delivery mail on the second working day after the
notice or communication is posted.
7. This Retention Bond shall be governed by and interpreted under the Laws of the
Kingdom of Bahrain and in the event of any dispute or difference arising out of or
in connection with this Retention Bond the parties hereto submit to the non-
exclusive jurisdiction of the Courts of the Kingdom of Bahrain.
8. This Retention Bond shall be returned to the Surety on its expiry.
SIGNED _______________________________________________________
(as appropriate by properly authorised officials for and on behalf of the
guaranteeing Bank / Insurance Company)
To:

ANNEX 7
Form of Direct Agreement
(see Clause 23.3 and Clause 59.2 c (if stated to be applicable in the Appendix to Tender)
of the Conditions of Contract)
THIS AGREEMENT is made the day of 200[ ]
BETWEEN
(1) [ ] (the Employer, which expression shall include its successors

in title and assigns) of the first part;
(2) [ ] whose registered office is at [ ] (the Sub-Contractor) of the

second part; and
(3) [ ] whose registered office is at [ ] (the Contractor)

of the third part.
RECITALS
(A) The Employer has entered into an agreement with the Contractor in connection
with the carrying out of [ ] (the Works) [
] (the Site); and
(B) The Sub-Contractor carries on business as a [ ] contractor and has been

appointed as such by the Contractor under a sub-contract dated [ ]
(the Sub-Contract) for the carrying out of [ ] (the Sub-
Contract Works).
IT IS AGREED AS FOLLOWS:
1. Duty of Skill and Care
The Sub-Contractor warrants to the Employer that:-
1.1 in respect of the carrying out of the Sub-Contract Works the Sub-Contractor has
exercised and shall continue to exercise all the reasonable skill and care and
diligence to be expected of a properly qualified and competent contractor
experienced in carrying out such work in respect of projects of a similar size, scope,
nature, complexity and character as the Sub-Contract Works; and

1.2 the Sub-Contractor has complied and shall comply in all respect with the provisions
of the Sub-Contract.
2. Insurance
2.1 The Sub-Contractor warrants to the Employer that it has at all relevant times
maintained and that it shall maintain the professional indemnity insurance and/or
product liability insurance cover specified in the Sub-Contract with reputable
insurers with a limit of indemnity not less than Bahrain Dinars [ ]
(BD[ )] in respect of any one claim in respect of any negligence omission
or default on the Sub-Contractor’s part in the performance of its obligations and
duties under this Agreement for a period of ten (10) years from the date of
completion stated in the Taking-Over Certificate relating to the whole of the Works
pursuant to the Contract provided always that such insurance cover is available and
continues to be available to organisations acting in the capacity of the Sub-
Contractor at commercially reasonable rates and on commercially reasonable terms.
2.2 As and when reasonably required by the Employer (but not more frequently than
once every twelve months) the Sub-Contractor shall produce for inspection
satisfactory documentary evidence that the insurances referred to in Clause 2.1
being properly maintained (although for the avoidance of doubt the Sub-Contractor
shall not be required to provide copies of policies).
3. Notices
3.1 Any notice to be served under the terms of this Agreement shall be in writing and if
despatched by registered post or recorded delivery to any party at its
aforementioned address shall be deemed to have been received by such party forty-
eight (48) hours after being posted.
4. Applicable law and dispute resolution
4.1 The construction validity and performance of this Agreement shall be governed by
Laws of the Kingdom of Bahrain and the provisions of the Sub-Contract shall
apply, in respect of any disputes or differences which may arise in respect of this
Agreement.
IN WITNESS WHEREOF the parties hereto have executed this Agreement the day and year
first above written
Executed by
Executed by

CONDITIONS OF CONTRACT PART 2
PART 2 A - CONDITIONS OF PARTICULAR APPLICATION
If stated to be applicable in the Appendix to Tender the provisions set out below shall apply
and shall be incorporated in the Contract:
2.4 Core Group and Early Warning
a The Contractor and the Employer shall establish a Core Group who shall
meet regularly to review and stimulate the progress of the Works and the
implementation of the Contract. Members of the Core Group shall comprise
the individuals so listed in the Appendix to Tender subject to replacement
only with the prior consent of the Employer, the Engineer and the
Contractor;
b Each of the Employer and the Contractor shall ensure that any of its
employees who are Core Group members shall attend Core Group meetings
and fulfil the agreed functions of a Core Group member in accordance with
the Contract and shall arrange for the Quantity Surveyor and particular Sub-
Contractors to attend any Core Group meeting if their expertise is relevant
to the subject matter of the meeting;
c A meeting of the Core Group members shall be convened by the Engineer at

the request of any Core Group member, at not less than seven (7) days
notice to all Core Group members stating its agenda (unless all Core Group
members agree a shorter period). Each such meeting shall be chaired by the
Engineer and shall deal only with the matters listed in its agenda (unless all
Core Group members agree otherwise);
d Decisions of the Core Group shall be by unanimous agreement of all Core

Group members present at that meeting and any decision of the Core Group
shall be confirmed by an instruction of the Engineer. The Employer and the
Contractor shall comply with any decision of the Core Group made within
the scope of its agreed functions and confirmed by an instruction of the
Engineer; and
e The Employer and the Contractor shall operate an Early Warning system,
whereby the Employer and the Contractor shall notify the other and the
Engineer as soon as it is aware of any matter adversely affecting or
threatening the Works or the Contractor’s or the Employer’s performance
under the Contract, and (within the scope of its agreed role, expertise and
responsibilities) shall include in such notification proposals for avoiding or
remedying such matter. The Engineer shall convene a meeting of the Core
Group within seven (7) days from the date of any such notification to agree

an appropriate course of action unless all Core Group members agree such
course of action without a meeting.
10.2 Adverse Site conditions
If during the execution of the Works the Contractor shall encounter Site conditions
which could not reasonably have been foreseen, the Contractor shall immediately
give notice of such conditions to the Engineer as a proposed Variation in
accordance with Clause 51.2 and if in the opinion of the Engineer such conditions
could not reasonably have been foreseen under all the relevant circumstances by a
contractor experienced in works equivalent to the Works, then the Engineer shall
notify a proposed Variation in accordance with Clause 51.3 in respect of the
additional cost which the Contractor shall have incurred by reason of such
conditions including the proper and reasonable cost:
a of complying with any instruction which the Engineer may issue to the
Contractor in connection with such conditions; and
b of any proper and reasonable measures approved by the Engineer which the
Contractor may take in the absence of specific instructions from the
Engineer.
14.4 Key Dates Schedule
a The Employer, the Contractor and the Engineer have agreed the Key Dates
Schedule, which is set out in Appendix 1 to Part 2 A and identifies the
following:
i times for Completion of particular Sections and parts of the Works, and
dates/periods for agreed pre-conditions and procedures for Site
access/possession, for the issue of Taking Over Certificates and for
inspections, tests and commissioning;
ii deadlines for preparation and issue in accordance with Clauses 6 and 7 of all
remaining Drawings and Specifications and other documents necessary for
the Works to be executed and deadlines for submission by the Contractor of
all Drawings and Specifications and other documents required by the
Engineer from the Contractor (and its Sub-Contractors) in accordance with
Clauses 6 and 7 and otherwise necessary for the Engineer to complete its
own Drawings and Specifications and other documents;
iii in relation to each Provisional Sum or Prime Cost Sum, deadlines for the
preparation of all remaining Drawings and Specifications and other
documents (according to Clauses 6 and 7) with further periods of time for
the Contractor to invite Sub-Contractor bids, for those bids to be reviewed

and approved by the Employer and for the Engineer to authorise the
Provisional Sum or Prime Cost Sum item in accordance with Clause 58.
b The Employer, the Engineer and the Contractor shall comply with the Key
Dates Schedule;
c The Engineer may instruct acceleration, postponement or resequencing of

any date or period stated in the Key Dates Schedule and such instruction
shall be treated as a Variation proposed by the Employer in accordance with
Clause 51.3;
The Contractor shall update the Key Dates Schedule regularly to reflect any agreed
adjustment pursuant to the Contract (including adjustments to the Programme) and
any events affecting progress of the Works and shall circulate it to the Employer
and the Engineer. The receipt or use of any updated Key Dates Schedule shall not
be evidence of the Employer's or the Engineer's agreement to its contents.
54 Contractor's Equipment
54.1 For the purpose of this Clause 54:
a the expression “Essential Hired Plant” shall mean all Contractor's

Equipment, Temporary Works and materials for Temporary Works the
withdrawal of which in the event of a termination under Clause 63 might
(having regard to the methods of construction employed prior to the
forfeiture) endanger the safety or stability of or result in serious disturbance
to the execution of any part of the Works and which are held by the
Contractor under any Agreement for Hire;
b the expression “Hired Plant” shall mean any Contractor's Equipment,

Temporary Works and materials for Temporary Works (other than Essential
Hired Plant) held by the Contractor under any Agreement for Hire;
c the expression “Agreement for Hire” shall not include an agreement for hire
purchase;
d the expression “Hire Purchase Plant” shall mean any Contractor's

Equipment, Temporary Works and materials for Temporary Works held by
the Contractor under an agreement for hire purchase.

54.2 Vesting of Certain Contractor's Equipment
All Contractor's Equipment, Temporary Works and materials provided by the

Contractor shall, when brought on to the Site, immediately become the property of
the Employer.
54.3 Conditions of Hire of Certain Contractor's Equipment
With a view to securing, in the event of termination under Clause 63, the continued
availability for the purpose of executing the Works of any Essential Hired Plant, the
Contractor shall not bring on to the Site any Essential Hired Plant unless the
agreement for hire thereof contains a provision that the owner thereof shall, on
request made by the Employer, within seven (7) days after the date on which any
such termination has become effective and on the Employer undertaking to pay all
hire charges in respect thereof from such date, hire such Essential Hired Plant to the
Employer on the same terms in all respects as the same was hired to the Contractor,
save that the Employer shall be entitled to permit the use thereof by any other
Contractor employed by it for the purpose of completing the Works under the terms
of Clause 63.
54.4 Costs for Purpose of Clause 63
In the event of the Employer entering into any agreement for hire of Essential Hired
Plant pursuant to Clause 54.3, all sums properly paid by the Employer under any
such agreement and all expenses incurred by it in entering into such agreement shall
be deemed for the purposes of Clause 63 to be part of the cost of completion the
Works.
54.5 Contractor’s Certificate as to Hiring Provisions
The Contractor shall upon request made by the Engineer at any time in relation to
any item of Essential Hired Plant immediately notify to the Engineer the name and
address of the owner thereof and shall certify that the agreement for the hire of such
Essential Hired Plant contains a provision in accordance with the requirements of
Clause 54.3. The Contractor shall also upon request as aforesaid give a like
notification (but without certificate) in regard to any Hire Purchase Plant.
54.6 Hire Purchase Payments by Employer
The Employer shall in order to avoid seizure by the owner of any Hire Purchase
Plant, be entitled to pay to such owner the amount of any overdue instalment or
other sum payable under any agreement for hire purchase, and in the event of its
doing so, any amount so paid by it shall be a debt due from the Contractor to the
Employer and may be deducted by the Employer from any monies due or that may
become due to the Contractor under the Contract or may be recovered by the
Employer from the Contractor at law.

54.7 Irremovability of Certain Contractor's Equipment
No Contractor's Equipment, Temporary Works or materials or any part thereof

(except Hired Plant) shall be removed from the Site without the prior consent of the
Engineer, which consent shall not be unreasonably withheld where the same is no
longer immediately required for the purpose of execution of the Works. The
Employer shall permit the Contractor the exclusive use of all such Contractor's
Equipment. Temporary Works and materials in and for the execution of the Works
until the occurrence of any event which gives the Employer the right to exclude the
Contractor from the Site and itself proceed with the completion of the Works.
54.8 Re-vesting and Removal of Contractor's Equipment
Upon removal with the Engineer's consent of such Contractor's Equipment,

Temporary Works or materials as have been deemed to have become the property
of the Employer under Clause 54.2, ownership shall be deemed to re-vest in the
Contractor and upon completion of the Works ownership of the remainder of such
Contractor's Equipment, Temporary Works and materials shall subject to Clause 63
be deemed to re-vest in the Contractor who shall remove the same including any
Essential Hired Plant, Hired Plant or Hire Purchase Plant within such reasonable
time after Completion of the Works as may be allowed by the Engineer, failing
which the Employer may:
a sell any such Contractor's Equipment, Temporary Works and materials; and
b return at the Contractor’s expense to the person, firm or company from

whom it was hired by the Contractor, any Essential Hired Plant, Hired Plant
or Hire Purchase Plant and, after deduction from any proceeds of sale,
further to Clause 54.8a, of the cost, charges and expenses of such sale and/or
return, shall pay the balance (if any) to the Contractor and if the proceeds of
any such sale are insufficient to meet all such costs, charges, and expenses,
the excess shall be a debt due from the Contractor to the Employer and shall
be recoverable by the Employer from the Contractor and deductible from
amounts otherwise due.
54.9 Liability for Loss or Injury to Contractor's Equipment
The Employer shall not at any time be liable for the loss of or injury to any of the
Contractor's Equipment, Temporary Works or other materials, goods or equipment
which have been deemed to have become the property of the Employer under
Clause 54.2 save as stated in Clauses 20 and 66 (if stated in the Appendix to Tender
to be applicable) and the Employer shall not be responsible for maintaining or
insuring the same.

54.10 Incorporation in Sub-Contracts
The Contractor shall when entering into any Sub-Contract for the execution of any
part of the Works incorporate in such Sub-Contract (by reference or otherwise) the
provisions of this Clause 54 in relation to Contractor's Equipment and Temporary
Works including Essential Hired Plant, Hired Plant and Hire Purchase Plant
brought on to the Site by the Sub-Contractor.
54.11 Landing Charges and Customs Duties
The Contractor shall pay all charges and other expenses including customs and
import duties in connection with the landing and shipment of all Contractor's
Equipment, goods, materials and equipment and other things of whatsoever nature
brought into or despatched from Bahrain for the purpose of the Contract.
NOMINATED SUB-CONTRACTORS
59.1 The Nominated Sub-Contractors shall be those identified as such in the Appendix
to Tender, whether by name or trade, or those specifically nominated by the
Employer as Nominated Sub-Contractors after the date of the Contract Agreement
and during the progress of the Works.
59.2 Objection to Nominated Sub-Contractors
The Contractor shall not be obliged to employ any Nominated Sub-Contractor who
shall decline to enter into a Sub-Contract with the Contractor containing provisions:
a that in respect of its work, goods, materials or services (including any

designs) the Nominated Sub-Contractor shall undertake towards the
Contractor to discharge the Contractor's own obligations and liabilities
towards the Employer under the terms of the Contract and shall indemnify
the Contractor from and against the same and from all claims, proceedings,
damages, costs, charges and expenses arising out of or in connection with
any failure to perform such obligations or to fulfil such liabilities,
b that the Nominated Sub-Contractor shall indemnify the Contractor from and
against any negligence by the Nominated Sub-Contractor, its agents,
workmen and servants and from and against any misuse by it or them of any
Contractor's Equipment or Temporary Works provided by the Contractor for
the purposes of the Contract and from claims as stated in Clause 59.2a, and
c that the Nominated Sub-Contractor shall enter into a Direct Agreement in

the form set out in Annex 7 in favour of the Employer (amended
accordingly).

59.5 Assignment of Nominated Sub-Contractors’ Obligations
In the event of a Nominated Sub-Contractor having undertaken towards the

Contractor any continuing obligation extending for a period exceeding that of the
Defects Liability Period under the Contract, the Contractor shall at any time, after
the expiration of the Defects Liability Period, assign to the Employer, at the
Employer’s request and cost, the benefit of such obligation for the unexpired
duration thereof.
SPECIAL RISKS
Notwithstanding anything else contained in the Contract:
66.1 No Liability for Special Risks
The Contractor shall be under no liability in respect of destruction of or damage to

the Works (save to work previously condemned under the provisions of Clause 39)
or to property whether of the Employer or third parties, or for or in respect of injury
or loss of life if and to the extent that these are caused by any Special Risk. The
Employer shall indemnify the Contractor against the Special Risks and all claims,
proceedings, damages, costs, charges and expenses arising out of or in connection
with the Special Risks.
66.2 Damage to Works by Special Risks
If the Works or any materials, goods or equipment on or near or in transit to the

Site, or any other property of the Contractor used or intended to be used for the
purposes of the Works, shall sustain destruction or damage by reason of any of the
Special Risks, the Contractor shall be entitled to payment for:
a any permanent work and any materials, goods and equipment so destroyed
or damaged;
b replacing or making good any such destruction or damage to the Works; and
c replacing or making good such materials, goods and equipment or other

property of the Contractor used or intended to be used for the purposes of
the Works.
66.3 Projectiles and Missiles
Destruction, damage, injury or loss of life caused by the explosion or impact

whenever and wherever occurring of any mine, bomb, shell, grenade or other
projectile, missile, munitions or explosive of war shall be deemed to be a
consequence of the Special Risks.

66.4 Increased Costs arising from Special Risks
The Employer shall repay to the Contractor any increased cost of or incidental to
the execution of the Works, except as may be attributable to the cost of
reconstruction work condemned under the provisions of Clause 39, prior to the
occurrence of any Special Risk which is attributable to or consequent on or the
result of or connected with the said Special Risks, subject to the other provisions of
this Clause 66 in regard to outbreak of war, and the Contractor shall as soon as any
such increase of cost shall come to its knowledge forthwith notify the Engineer with
full details.
66.5 Outbreak of War
If, during the execution of the Works, there shall be an outbreak of war, (whether
war is declared or not) in any part of the world which materially affects the
execution of the Works, the Contractor shall, unless and until its appointment under
the Contract is terminated under the provisions of this Clause 66, continue to use its
best endeavours to complete the execution of the Works provided always that the
Employer shall be entitled at any time after such outbreak of war to terminate the
employment of the Contractor under the Contract by giving notice to the Contractor
terminating the employment of the Contractor, but without prejudice to the rights of
either party in respect of any antecedent breach.
66.6 Removal of Contractor's Equipment on Termination
If the employment of the Contractor shall be terminated under Clause 66.5, the
Contractor shall, with all reasonable despatch, remove from the Site all Contractor's
Equipment and Temporary Works.
66.7 Payment if Employment Terminated
If the employment of the Contractor under the Contract is terminated under Clause
66.5, the Contractor shall be paid by the Employer, insofar as such amounts shall
not have already been covered by payments on account made to the Contractor, for
all work executed prior to the date of termination at the rates and prices provided in
the Contract and in addition:
a the amounts payable in respect of any preliminary items, so far as the

relevant work or service have been carried out or performed, and a proper
proportion as certified by the Engineer of any such items where the relevant
work or service has been partially carried out or performed;
b the cost of materials or goods reasonably ordered for the Works which shall
have been delivered to the Contractor or of which the Contractor is legally
liable to accept delivery, such materials or goods becoming the property of
the Employer upon such payments being made;

c a sum to be certified by the Engineer, being the amount of any expenditure
reasonably incurred by the Contractor in the expectation of completing the
whole of the Works insofar as such expenditure shall not have been covered
by other payments in this Clause 66.7;
d any additional sum payable under the provisions of Clauses 66.1, 66.2 and
66.4;
e the reasonable cost of removal of Contractor's Equipment and Temporary

Works under Clause 66.6 and, if required by the Contractor, its return to the
Contractor’s main plant yard in its country of registration or to other
destination, at no greater cost; and
f the reasonable cost of repatriation of all the Contractor's employees

employed on or in connection with the Works at the time of such termination
Provided always that against any payments due from the Employer under this
Clause 66.7, the Employer shall be entitled to be credited with any outstanding
balances due from the Contractor for advances in respect of materials, goods and
equipment and any other amounts which at the date of termination were recoverable
by the Employer from the Contractor under the terms of the Contract.
67.2 Mediation
If the parties are unable to reach agreement on any matter on which the Engineer
has given a decision or failed to give a decision in accordance with Clause 67.1,
then the matter shall immediately be referred by the parties to a neutral mediator
(the Mediator) whose costs shall be paid in equal shares by the parties and the
following clauses shall apply:
a if the parties are unable to agree on the choice of a Mediator, or if the

chosen Mediator is unable or unwilling to act, then either party may
immediately apply to the organisation stated in the Contract Agreement to
appoint a Mediator;
b the parties shall, within fourteen (14) days of the appointment of a Mediator,
or any other such period as the parties may subsequently agree, jointly meet
with the Mediator to agree a programme for the exchange of any relevant
information and the structure to be adopted for the negotiations;
c all negotiations shall be conducted in confidence and are not to be referred

to in any concurrent or subsequent proceedings, unless they conclude with a
legally binding agreement. If the parties accept the Mediator's
recommendations, or otherwise reach agreement on the resolution of their
dispute, such agreement shall be recorded and, once signed by the
designated representatives, shall be binding on the parties;

d if no agreement is reached, either party may invite the Mediator to provide
to both parties a non-binding opinion. Such opinion shall not be used in
evidence in any concurrent or subsequent proceeding without the prior
consent of both parties; and
e the parties shall bear their own costs of preparing and submitting evidence
to the Mediator. If the Mediator finds that the mediation has been initiated
or conducted frivolously or vexatiously, then the Mediator shall have the
power to order the party so initiating or conducting the mediation to pay the
reasonable costs of the other party for preparing for and attending the
mediations and if the costs cannot be agreed, they shall be assessed by the
Mediator, whose decision shall be binding on the parties.
If the parties fail to reach agreement within twenty-eight (28) days of the Mediator
being appointed, or such other period as the parties may agree, then both parties
shall be entitled to submit the dispute to arbitration under the terms of Clause 67.3.
With the agreement of the parties, the Mediator shall record those facts that the
parties have agreed. All other matters in dispute shall be referred to an Arbitration
Committee (as defined in Clause 67.3) who shall be allowed access to the recorded
and agreed facts. The Mediator's role shall cease on the appointment of the
Arbitration Committee and the Mediator shall not be required to appear as a witness
in the arbitration, or to provide any additional evidence obtained during the
mediation.

FLUCTUATIONS
70.1 Adjustments to Lump Sum Contract Price
Adjustments to the Lump Sum Contract Price shall be made in respect of rise or fall
in the cost of specified materials as set out in this Clause.
a For the purpose this Clause:
“Specified Item” means an item which has been identified as an item whose
tendered rate will be adjusted in accordance with this Clause by inclusion in
the Schedule of Rates and Prices (Part A) in the Form of Tender.
“Special Material” means the material listed against a Specified Item in the
Schedule of Rates and Prices (Part A) in the Form of Tender.
“Basic Rate” means the rate, as supplied to the Contractor, on Site,

including the cost of transportation and delivery to Site but excluding
supporting, placing and fixing costs, for the Specified Material on the date
28 days prior to the latest date for submission of tenders; and
“Current Rate” means the rate, as supplied to the Contractor on Site,

including the cost of transportation and delivery to Site but excluding
supporting, placing and fixing costs, for the Special Material prevailing at
any date subsequent to the date 28 days prior to the latest date for
submission of tenders.
b The adjustment to the Lump Sum Contract Price under the terms of this
Clause shall be calculated applying an adjusted rate to the quantity of work
under Specified Items in the Schedule of Rates and Prices. The Specified
Items and Specified Materials are indicated in the Schedule of Rates and
Prices (Part A) in the Form of Tender. The revised rate for each Specified
Item shall be adjusted by adding or deducting the difference between the
Basic and Current Rates for the Specified Material to the rate for the
appropriate Specified Item. The adjustment shall be calculated separately
for each payment made in accordance with Clause 60 and shall only apply to
the estimated quantity of work incorporated into the Permanent Works
during the period in which the change in the cost of the Specified Material
has occurred. The adjustment shall only apply when the Current Rate varies
from the Basic Rate for a Specified Material by a margin of 5% or more
above or below the Basic Rate. If the Current Rate is within a margin of 5%
above or below the Basic Rate then the Basic Rate shall apply to the
Specified Material. The adjustment shall only apply up to a limit of the
quantity shown against the Specified Item in the Schedule of Rates and
Prices or varied quantity determined in accordance with Clause 51. Such

adjustment may be either an addition or a deduction from the Bill of
Quantities rate.
c The Contractor shall use due diligence to ensure that excessive wastage of
the Specified Materials shall not occur. Any specified Materials removed
from the Site shall be clearly identified in the records required under
paragraph (h) of this Clause.
d The provisions of this Clause shall not apply to fuels used in Contractor’s
Equipment engaged on the Site for the purposes of executing the Works,
including:
i) fuels used in vehicles owned by the Contractor (or hired by him under
long term arrangements under which the Contractor is obligated to
supply fuel) engaged in transporting any staff, labour, Contractor’s
Equipment, Temporary Works, Plant or materials to and from the Site.
ii) fuels sold or supplied to any employee of the Contractor or to any person for
use in any motor vehicle not being used for the purposes of the
Contract.
e The Contractor shall at all times have regard to suitable markets and shall,
whenever buying materials a variation in the cost of which would give rise
to an adjustment of the Lump Sum Contract Price under this Clause, be
diligent to buy or procure the same at the most economical prices as are
consistent with the due performance by the Contractor of his obligations
under the Contract.
If at any time there shall have been any lack of diligence, default or
negligence on the part of the Contractor, whether in observing the above
requirements or otherwise, then, for the purposes of adjusting the Lump
Sum Contract Price pursuant hereto, no account shall be taken of any
increase in cost which may be attributable to such lack of diligence, default
or negligence and the amount by which any cost would have been decreased
but for such lack of diligence, default or negligence shall be deducted from
the Lump Sum Contract Price.
f No other adjustment to the Lump Sum Contract Price on account of

fluctuation in the cost of materials shall be made.
g Overheads and Profits Excluded
In determining the amount of any adjustment to the Lump Sum Contract

Price pursuant to this Clause no account shall be taken of any overheads or
profits.

h Notices and Records
The Contractor shall forthwith, or the Engineer shall give notice to the
Contractor thereof, upon the happening of any event which may or may be
likely to give rise to adjustment of the Lump Sum Contract Price pursuant to
this Clause, give notice thereof to the Engineer and the Contractor shall
keep such books, accounts and other documents and records as are
necessary to enable adjustment under this Clause to be made and shall, at
the request of the Engineer, furnish any invoices, accounts, documents or
records so kept and such other information as the Engineer may require.
The Contractor shall submit claims for an adjustment to the Lump Sum
Contract Price pursuant to this Clause within the first 10 calendar days of
the calendar month following the calendar month in which the notice has
been given to the Engineer pursuant to this Clause.
i Adjustment after Date of Completion
Adjustment to the Lump Sum Contract Price, after the due date for
completion of the whole of the Works pursuant to Clause 43, or after the
date of completion of the whole of the Works certified pursuant to Clause
48, shall be made in accordance with Current Prices, as applicable, ruling at
the date for completion or the date stated in the Certificate of Completion,
whichever is the earlier.
j Determination of Adjustment to Lump Sum Contract Price
The amount of any adjustment to the Lump Sum Price pursuant to this
Clause shall be determined by the Engineer in accordance with the
foregoing rules.
k Provide that if the Engineer and Contractor are unable to agree a suitable
rate for the Specified Items, or the Contractor fails to submit a claim for
adjustment of the Lump Sum Price, due to the change in respect of rise or
fall in the cost of Specified Materials, as set out in this Clause then the
Engineer shall fix such rates as shall, in his opinion, be reasonable and
proper having regard to the circumstances.

APPENDIX 1 TO PART 2 A OF THE PART 2 CONDITIONS
Form of Key Dates Schedule

(see Part 2 A and Clause 14.4 of the Conditions of Contract)
Activity Responsible Relevant Comments

party Dates/Periods of
Time
1. Possession and Taking

Over of the Works and
each Section of the
Works
• Commencement of
Works/each Section
• Date for Completion

of Works/each
Section
• Preconditions for
commencement of
Works/each Section
and Site access and
possession/issue of
Taking Over
Certificate
• Procedures for
commencement of
Works/each Section
and Site access and
possession
• Procedures for
inspections, tests,
commissioning and
issue of Taking Over
Certificate for
Works/Sections

Time
2. Restrictions caused by
work being carried out
by other contractors
• Dates/periods when
parts of Site shall be
unavailable
• Dates/periods when
parts of Site shall be
subject to restricted
access
• Relevant procedures
3. Deadlines for
preparation and issue
of remaining Drawings
and Specifications and
other documents
necessary for the
Works/each Section to
be constructed
• Deadlines for
Drawings and
Specifications and
other documents
required by the
Engineer from the
Contractor (and its
relevant Sub-
Contractors)
• Period for approval

by the Engineer of
Drawings and
Specifications and
other documents as
submitted

Time
• Related Drawings
and Specifications
and other documents
of the Engineer to be
completed utilising
Drawings and
Specifications and
other documents
submitted by the
Contractor
• Remaining
Drawings and
Specifications and
other documents to
be issued to the
Contractor by the
Engineer
4. Provisional Sums
• Deadlines for
preparation of
remaining Drawings
and Specifications
and other documents
required for each
Provisional Sum
and/or Prime Cost
Sum item
• Periods for the

Contractor to invite
Sub-Contractors to
bid against
completed design
information

Time
• Periods for Sub-

Contractors' bids to
be reviewed and
approved by the
Engineer
• Deadline for the

Engineer to
authorise relevant
Provisional Sum
item

PART 2 B OF THE PART 2 CONDITIONS
PRE-CONSTRUCTION APPOINTMENT AND SERVICES
The appointment of the Contractor is conditional pending satisfactory completion of the Pre-
Construction Services (as defined in these Part 2 B Conditions) in accordance with the
provisions of the Pre-Construction Services Appointment set out below [Delete if not
applicable]
1. The Employer confirms, subject to the terms of this Pre-Construction Services

Appointment, the authority of the Contractor to undertake the pre-construction
services forming part of the Works as listed in Appendix 1 to this Pre-Construction
Services Appointment (the Pre-Construction Services) and the Employer's
conditional acceptance of the Tender.
2. The Pre-Construction Services shall be undertaken by the Contractor subject to and in

accordance with the Contract. In all matters the performance of the Pre-Construction
Services shall be governed by the Conditions of Contract as if for those purposes the
term "the Works" in the Conditions of Contract was replaced by the term "the Pre-
Construction Services".
3. The Pre-Construction Services shall commence with effect from the date or dates, and
shall be completed within the periods of time set out in Appendix 1 to this Pre-
Construction Services Appointment.
4. In consideration of the Contractor properly performing the Pre-Construction Services

in accordance with the terms of this Pre-Construction Services Appointment, the
Employer shall pay the Contractor the amounts set out in Appendix 2 to this Pre-
Construction Services Appointment (the Pre-Construction Costs) in instalments and
according to procedures equivalent to those set out in the Conditions of Contract. The
Contractor shall not be entitled to any further payment other than in accordance with
Appendix 2 to this Pre-Construction Services Appointment and the Employer shall not
be liable to the Contractor in respect of any loss of profits, loss of future contracts or
other indirect or consequential losses.
5. The Employer's conditional acceptance of the Tender to undertake the Works is

subject to the following conditions:
a Completion of the Pre-Construction Services to the reasonable satisfaction of

the Engineer;
b Submission of any required Performance Bond, Parent Company Guarantee

and Advance Payment Guarantee in accordance with Clause 9 of the
Conditions of Contract;
c [Other pre-conditions.]

6. For the avoidance of doubt, this Pre-Construction Services Appointment does not
constitute unconditional acceptance of the Tender nor does it constitute authority for
the Contractor to commence any part or parts of the Works (other than the Pre-
Construction Services), both of which are conditional upon the Employer notifying the
Contractor of its unconditional acceptance of the Tender to undertake the Works.
7. The Contractor shall obtain the consent of the Employer before entering into any Sub-
Contracts or placing any orders with Sub-Contractors in connection with the Pre-
Construction Services and shall ensure that any such Sub-Contract and order contains
a provision allowing the benefit of such Sub-Contract or order to be assigned to the
Employer (or to any replacement contractor appointed by the Employer) in the event
that the Employer terminates this Pre-Construction Services Appointment for any
reason.
8. The Contractor shall keep the Engineer fully informed of the progress of the Pre-
Construction Services and shall report to the Engineer no less than monthly with
supporting documentary evidence of all Pre-Construction Costs which the Contractor
incurs pursuant to this Pre-Construction Services Appointment.
9. Within seven (7) days from the date of this Pre-Construction Services Appointment
and as a pre-condition of entry to the Site the Contractor shall provide the Employer
with evidence of insurances in accordance with Clauses 21, 23 and 24 of the
Conditions of Contract.
10. The Contractor hereby grants to the Employer a licence in accordance with Clause 28
of the Conditions of Contract to use and reproduce all drawings, details, plans,
calculations, specifications and other work (and the designs contained within them)
(the Proprietary Material) prepared by the Contractor or on its behalf pursuant to
this Pre-Construction Services Appointment for any purpose connected with the Pre-
Construction Services. This licence shall carry the right to grant sub-licences and
shall survive the termination (for any reason) of the instruction contained in this Pre-
Construction Services Appointment.
11. The Contractor shall supply to the Employer on request two (2) copies of all and any
Proprietary Material and warrants that in respect of all such Proprietary Material in
respect of which Intellectual Property Rights are vested in any other party, the
Contractor is authorised by such party to grant the Employer a licence on the terms set
out in paragraph 10 above.
12. The Contractor's agreed profit and overhead forming part of the Contract Price are
separately stated as Lump Sums/percentages [Delete as appropriate] in the Schedule
of Rates and Prices/Bill of Quantities with a view to incentivising the Contractor to
seek savings and efficiencies that shall reduce the other costs forming part of the
Contract Price. If a reduction in any part of the Contract Price is achieved by means
of proposals for Value Engineering or Risk Management submitted by the Contractor
and approved by the Employer, in accordance with this Pre-Construction Services
Appointment, then such reduction shall [not result in any reduction in the Contractor's
profit and overhead]/[and shall result in an increase in the Contractor's agreed profit
and overhead equivalent to [ ] percent [( )%] of such
reduction in the Contract Price].
13. Any proposed reduction in the Contract Price that is achieved by means of the Pre-
Construction Services, whether through Value Engineering, Risk Management or
otherwise, shall be submitted as a proposed variation in accordance with Clause 51 of
the Conditions of Contract.
14. The Employer shall be entitled to terminate the Contractor's employment under this
Pre-Construction Services Appointment by not less than seven (7) days notice at any
time prior to unconditional acceptance of the Tender in accordance with paragraph 6
of this Pre-Construction Services Appointment, in which event:-
a the Employer shall pay the Contractor all Pre-Construction Costs properly
incurred in accordance with the terms of this Pre-Construction Services
Appointment, subject to the Contractor having performed such Pre-
Construction Services to the reasonable satisfaction of the Engineer;
b the Contractor shall deliver to the Employer all the Proprietary Material
prepared by the Contractor or on its behalf in relation to the Pre-
Construction Services;
c the Contractor shall consult with the Employer regarding the action to be
taken for the fulfilment or cancellation of any Sub-Contracts and orders to
Sub-Contractors made by the Contractor pursuant to this Pre-Construction
Services Appointment, and shall supply to the Employer all related invoices
and other documents;
d the Contractor, if required, shall assign to the Employer or its nominee the
benefit of any or all Sub-Contracts and orders made by the Contractor
pursuant to this Pre-Construction Services Appointment; and
e the Contractor shall immediately vacate the Site and leave it in a clean and
proper condition.

Appendix 1 to Part 2 B of the Part 2 Conditions
Pre-Construction Services
The Pre-Construction Services shall comprise the following:-
1. The following Site and other investigations and reports to be completed by the
following dates:-
[ ]
2. The following designs/design reports/Value Engineering exercises to be completed

by the following dates:-
[ ]
3. Procurement of the following Sub-Contractors in accordance with the following

procedures to be completed by the following dates:-
[ ]
4. Agreement of the Key Dates Schedule forming part of the Contract and the
Programme as required by the Contract to be completed by [ ].
5. Review/resubmission of the following elements of the Contract Price to be

completed by the following dates:
[ ]
6. The following Risk Management exercises leading to review/reduction of risk

allowances forming part of the Contract Price to be completed by the following
dates:-
[ ]

Appendix 2 to Part 2 B of the Part 2 Conditions
Pre-Construction Costs

PART 2 C OF THE PART 2 CONDITIONS
DREDGING AND/OR RECLAMATION AND/OR MARINE WORKS
The Works comprise or include dredging and/or reclamation and/or marine works and the
Conditions of Contract shall be subject to the amendments set out below. [Delete if not
applicable]
Amendments to Conditions of Contract for Dredging/Reclamation/Marine Works
If this Part 2 C is stated to be applicable in the Appendix to Tender then the Conditions of
Contract shall be subject to the following amendments:
10.1 Inspection of Site
Insert at the end of Clause 10.1 the words:
"References to the Site in this Clause 10.1 shall include hydrological/bathy-metric

hydrographic and sub-seabed conditions."
49.1 Defects Liability Period
The Defects Liability Period for that part of the Works that comprises dredging, as
described in the Specifications and Drawings, shall be [ ] months.

PART 2 D OF THE PART 2 CONDITIONS
ELECTRO MECHANICAL WORKS
The Works comprise or include major electro-mechanical works and the Conditions of
Contract shall be subject to the amendments set out below. [Delete if not applicable]
If this Part 2 D is stated to be applicable in the Appendix to Tender, then the Conditions of
Contract shall be subject to the following amendments:
Clause
1.1 Definitions Insert the following additional definitions:
"Plant means machinery, computer hardware and software,

apparatus, materials, articles and things of all kinds to be
provided under the Contract other than Contractor's Equipment;
Tests on Completion means the tests specified in the Contract

(or otherwise agreed by the Employer and the Contractor) which
are to be made by the Contractor upon completion of erection
and/or installation before the Works are taken over by the
Employer."
Insert the following additional clauses 68 and 69:
68.1 Engineer's "68.1 The Engineer shall be entitled at all reasonable times
entitlement during manufacture to inspect, examine and test (in
to test accordance with Clauses 36 and 37) on the Contractor's
premises or elsewhere the materials, workmanship and
performance of all Plant prior to its delivery. If any part
of the Plant is being manufactured on premises other than
the Contractor's own premises, the Contractor shall obtain
permission for the Engineer to inspect, examine and test
as if the Plant were being manufactured on the
Contractor's premises. Such inspection, examination and
testing shall not release the Contractor from any
obligation under the Contract.
68.2 Certificate 68.2 When the Engineer is satisfied that any Plant has passed a
of test or test or inspection referred to in this Clause 68, it shall
inspection notify the Contractor.
68.3 Delivery 68.3 The Contractor shall apply to the Engineer for permission
to deliver any Plant to the Site. No Plant may be

delivered to the Site without the Engineer's prior approval.
68.4 Inspection 68.4 The Contractor shall inform the Engineer of the readiness
of Plant for shipment of any Plant to the Site. The Engineer may
upon notice inspect the Plant ready for shipping to ascertain proper
of readiness packing. The Contractor shall not be entitled to claim any
for shipment rights for itself under the Contract arising out of the non-
inspection by the Engineer of Plant ready for shipment
nor shall any inspection under this Clause 68.4 relieve the
Contractor of any obligation or liability under the
Contract.
If the Engineer shall have inspected any Plant pursuant to

this Clause 68.4, and is satisfied with the packing then the
Plant may, subject to the prior approval of the Engineer,
be shipped to the Site. If the Engineer chooses not to
inspect the Plant the Contractor may proceed with
shipment of the Plant in question immediately upon
receipt of notice from the Engineer to that effect.
68.5 Packing and 68.5 The Contract Price shall be deemed to include the cost of
marking packing and/or protection as prescribed by the
Specifications and, if not so prescribed, in accordance
with international packing practices.
The Contractor shall be liable for proper packing and/or

protection of Plant to be shipped in accordance with this
Clause 68.5 and shall clearly mark each part of any
shipment.
68.6 Unloading 68.6 The Contractor shall be responsible for the reception and
safe unloading on Site of all Plant delivered for the
purposes of the Contract.
68.7 Employer's 68.7 The Employer shall at the request of the Contractor and
lifting for the execution of the Works operate any suitable lifting
equipment equipment belonging to the Employer that may be
available on the Site and the Contractor shall pay a
reasonable sum therefore. The Employer shall during
such operation retain control of and be responsible for the
safe working of the lifting equipment but shall not be
responsible for any negligence or default of the
Contractor.

69.1 Tests on 69.1 The Contractor shall give to the Engineer not less than
Completion twenty-one (21) day's notice of the date after which it will
be ready to make the Tests on Completion. Unless
otherwise agreed the Tests on Completion shall take place
within ten (10) days after the said date on such day or
days as the Engineer shall notify the Contractor.
69.2 69.2 If in the opinion of the Engineer the Tests on Completion

are being unduly delayed it may, by notice, call upon the
Contractor to make such Tests on Completion within ten
(10) days from the receipt of the said notice, and the
Contractor shall make the said Tests on Completion on
such day within the said ten (10) days as the Contractor
may fix and of which it shall given a minimum of two (2)
day's notice to the Engineer. If the Contractor fails to
make such Tests on Completion within such time the
Engineer may itself proceed to make the Tests on
Completion. All Tests on Completion so made by the
Engineer shall be at the risk and expense of the Contractor
unless the Contractor shall establish that the Tests on
Completion were not being unduly delayed in which case
Tests on Completion so made shall be at the risk and
expense of the Employer.
69.3 69.3 The Contractor, except where otherwise specified, shall

provide at its expense, subject to the provisions of Clause
69.5, such labour, materials, electricity, fuel, water, stores
and apparatus as may be required and as may be
reasonably demanded to carry out such Tests on
Completion efficiently.
69.4 69.4 If any part of the Works fail to pass the Tests on
Completion, Tests on Completion of such part shall, if
required by the Engineer or by the Contractor, be repeated
within a reasonable time on the same terms and
conditions, save that all reasonable expenses to which the
Employer may be put by the repetition of the Tests on
Completion shall be deducted from the Contract Price.
69.5 Additional 69.5 If any Test on Completion is ordered by the Engineer

Tests which is either:
a not so intended by or provided for by the Contract; or

b although so intended by or provided for, is ordered by
the Engineer to be carried out by an independent
person at any place other than the Site or the place of
manufacture or fabrication of the materials or items
tested
then the cost of such Test on Completion shall be borne by

the Contractor if the test shows that the Plant is not in
accordance with the provisions of the Contract or the
Engineer's instructions but otherwise shall be borne by the
Employer.
69.6 69.6 In the event of the Works being divided by the Contract
into two (2) or more Sections then separate Tests on
Completion shall be carried out for each Section.
69.7 Spare Parts 69.7 The Contractor shall supply the Employer with such
quantity and quality of spare parts for such number of
years of operation and at such times as are set out in the
Specifications and if no time is set out there, by the date
of the Tests on Completion at the latest. Any default by
the Contractor in this respect shall entitle the Employer to
withhold any outstanding payment due to the Contractor
until the date of delivery of such spare parts.
69.8 69.8 Any spare parts including wear and tear parts to be
supplied under the Contract shall be identical and
interchangeable with the corresponding parts previously
supplied under the Contract and shall in all respects
conform to the requirements of the Specifications
governing such parts.
69.9 69.9 The Contractor shall on the basis of the spare parts list
recommended in the Specifications prepare and deliver to
the Engineer within the period set out in the
Specifications separate spare lists, for the period or
periods of operation mentioned in the Specifications. The
Contractor may add to but cannot delete any item from
such recommended spare parts list. The Contractor shall
in such lists specify the unit price of each item and, where
appropriate, the formula for calculating any increase in
the unit price during the period referred to in Clause
69.11.

69.10 69.10 After the initial delivery to the Employer of the spare
parts pursuant to Clause 69.7 the Contractor shall on
request from the Employer supply promptly spare parts to
the Employer at the same price then being offered by the
Contractor to other commercial customers for similar
quantities under similar conditions. If the Contractor
overcharges the Employer for such spare parts, the
Employer shall be repaid the amount of such overcharge.
If the Contractor fails to supply any such parts the
Employer shall be paid by the Contractor all increased
costs, losses and expenses occasioned thereby.
69.11 69.11 The Contractor undertakes to manufacture and/or supply

on request from the Employer all spare parts mentioned in
the lists referred to in Clause 69.9 for the period of [
] after the date of issue of the Taking Over Certificate for
the Works or the final Section provided always that if the
Contractor shall decide to discontinue the manufacture
and/or supply of spare parts during such period then it
shall be released from such undertaking subject to it
notifying the Employer accordingly and at the time of
such notification supplying the Employer, at no cost to the
Employer, with one complete set of reproducible
manufacturing drawings for such spare parts and with
completion specifications for such spare parts.
69.12 69.12 Spare parts consumed during the Defects Liability Period
in substitution for defective parts shall be replaced by the
Contractor at the Contractor's expense.
69.13 69.13 69.13 The Contractor shall not use any spare parts provided
under this Clause 69 without the approval of the
Employer. All parts so used shall be replaced by the
Contractor prior to the date of issue of the Taking Over
Certificate for the Works or for the Section of the Works
for which such parts are intended."

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STANDARD

AND CONDITIONS OF CONTRACT

BUILDING AND ENGINEERING WORKS

I. The contractor's design obligations;

II. Lump Sum/Remeasurable Works;

III. Pre-Construction Appointment and Services;

IV. Dredging/Reclamation/Marine Works; and

• An option to include a clause on fluctuations.

• H.E. Fahmi Bin Ali Al-Jowder - Minister of Works

• Mrs. Effat Redha Husain - Assistant Undersecretary, Technical Services

Mr. Basheer Mohammed Saleh

Other Ministries, Directorates & Organizations

And all other organizations/personnel who contributed in the Updating of Conditions of

Copyright-Ministry of Works SFMinor09

FORM OF CONTRACT AGREEMENT 1

Copyright-Ministry of Works SFBldgEng09

Copyright-Ministry of Works SFBldgEng09

Copyright-Ministry of Works SFBldgEng09

Copyright-Ministry of Works SFBldgEng09

Copyright-Ministry of Works SFBldgEng09

Copyright-Ministry of Works SFBldgEng09

Copyright-Ministry of Works SFBldgEng09

Copyright-Ministry of Works SFBldgEng09

Copyright-Ministry of Works SFBldgEng09

ANNEX 1 To Conditions of Contract - Form of Advance Payment Guarantee 77

Conditions of Contract Part 2 - Part 2 A - Conditions of Particular Application 91

Copyright-Ministry of Works SFBldgEng09

1 THE GOVERNMENT OF THE KINGDOM OF BAHRAIN as represented by

2 [ ] of P.O. BOX [ ] Bahrain,

WHEREAS the Employer requires [ ] (the Works) to be executed and

Bahrain Dinars [ ] (BD [ ]) (the Contract

NOW IT IS AGREED as follows:

a this Contract Agreement and the Appendix to Tender

b Part 1 of the Conditions of Contract and Part 2 of the Conditions of Contract

Copyright-Ministry of Works SFBldgEng09 1

g the Key Dates Schedule (Delete if not applicable)

h the Schedule of Rates and Prices/Bill of Quantities (Delete as

i the Letter of Award (Delete if not applicable).

3.1 In consideration of the payments to be made by the Employer to the Contractor

5.1 The Contractor warrants to the Employer:

c that the Works shall not be defective or incomplete by reason of:

i incorrect selection or quantities of materials or equipment;

ii faulty materials, equipment or workmanship;

iii incorrect or incomplete designs or other documents for which the

iv inadequate Site supervision by the Contractor or incorrect

Copyright-Ministry of Works SFBldgEng09 2

SIGNED for and on behalf of

in the presence of:

SIGNED for and behalf of:

in the presence of:

Copyright-Ministry of Works SFBldgEng09 3

Matters related to Conditions of Contract

The Employer's Representative shall be 2.7 [ ] of [ ]

The Engineer shall be 2.1 [ ] of [ ]

The Quantity Surveyor shall be 2.6 [ ] of [ ]

The Engineer's Representative shall be 2.2 [ ] of [ ]

Limits on Engineer's authority [Delete if 2.1 [ ]

Language 2.11 The [ ] language shall be used

Specified Sub-Contractors 3.3 [ ]

Contractor's Design Obligations 8.2 Clause 8.2 (design and build)

Clause 8.3 (design contributions as

Amount of Performance Bond 9.1 Required/not required

[[ ] % of the Contract Price]

Reduction of Performance Bond 9.2 Applicable/not applicable