CONDITIONS OF CONTRACT

TABLE OF CONTENTS

FORM OF CONTRACT AGREEMENT 1

APPENDIX TO TENDER 4
DEFINITIONS AND INTERPRETATION
1.1 Definitions 6
1.2 Interpretation 8
INTENTION OF THE PARTIES
2.1 Contractor's obligations 8
2.2 Documents and discrepancies 9
2.3 Copies of Drawings and Specifications provided by the Contractor 9
2.4 Design and Build (if applicable) 9
2.5 Contractor Designs 9
2.6 Engineer's duties 9
THE WORKS
3.1 The Commencement of the Works 10
3.2 Extension of Completion Date 10
3.3 Penalties for late Completion 10
3.4 Completion 11
3.5 Defects liability 11
CONTROL OF THE WORKS
4.1 Assignment 11
4.2 Sub-contracting 11
4.3 Contractor's Representative 11
4.4 Exclusion from the Works 11
4.5 Engineer's instructions 12
4.6 Variations 12
4.7 Provisional sums 12
4.8 Possession 12
4.9 Unavoidable additional work and expenditure 12
PAYMENT
5.1 Progress payments and retention 13

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 5.2 Penultimate certificate 13
5.3 Final certificate 14
5.4 Payment by the Employer or Contractor 14
5.5 Interest on overdue payments (if applicable) 14
5.6 Fixed price 14
5.7 Payment to Contractor's Bank 14
5.8 Payment due from Contractor 14
LAWS
6.1 Compliance with Laws 15
6.2 Bahrain Register of Commerce 15
6.3 Prevention of corruption 15
INDEMNITY AND INSURANCE
7.1 Indemnity 15
7.2 Third party insurance 16
7.3 Insurance of the Works 16
7.4 Cross liabilities clause 16
7.5 Professional Indemnity Insurance (if applicable) 16
7.6 Recognised insurers 17
7.7 Insurance policies 17
TERMINATION AND IMPOSSIBILITY
8.1 Termination by the Employer 17
8.2 Termination by the Contractor 18
8.3 Impossibility 19
SERVING OF NOTICES
9.1 Serving of notices 19
PERFORMANCE BOND
10.1 Performance Bond (if applicable) 19
DISPUTES
11.1 Settlement of disputes 19
11.2 Mediation (if applicable) 20
11.3 Arbitration 21

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 11.4 Arbitration rules 21
PROPER LAW
12.1 Proper Law 22

APPENDIX 1 - Form of Performance Bond 23

APPENDIX 2 - Form of Request for Payment by Direct Bank Transfer 25

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