FIDIC COMPARED WITH CPWD CONTRACT

CONDITIONS

Prepared By Tarandeep Singh

NICMAR
1. ENGINEER:

FIDIC:
Independent of Employer and Contractor
Employer selects him with regard to his ability
Not a party to the contract therefore no administrative pressures
In case Engineers decision not acceptable - DAB by either party.

CPWD:
Normally an officer of the relevant department namely an
employee
Subjected to administrative pressures leading to delicate situations
resulting from indecision.
Authorized to sign the contract therefore becomes part of the
contract
Thus cannot remain impartial to the contractor and becomes partial
to the employer and in his personal interest

2. COMPOSITION OF CONTRACTS

FIDIC:
Contract Agreement,
the Letter of Acceptance,
the Letter of Tender,
these Conditions,
the Specification,
the Drawings,
the Schedules,
further documents(if any)

CPWD:
The tender
The acceptance the formal agreement
The conditions of contract
The specifications
The drawings
 The instructions issued from time to time by the engineer and all
these documents shall be deemed to be one Contract and shall be
complimentary to one another

3. PRIORITIES OF DOCUMENTS

FIDIC:
the Contract Agreement (if any),
the Letter of Acceptance,
the Letter of Tender,
the Particular Conditions
the General Conditions,
the Specification,
the Drawings, and
the Schedules and any other documents forming part of
the Contract

CPWD:
Description of Schedule of Quantity
Particular specification
Special condition, if any
Drawings
CPWD specification
Indian Standard Specifications - BIS

NOTE: In FIDIC the documents named in the priority list are essentially
those mentioned as Contract Documents, however the priorities set by
CPWD includes description of schedule and ISS-BIS both of which are not
part of the contract documents.

4. AMBIGUTIES and/or DESCREPENCIES IN DOCUMENTS

FIDIC:
In case of ambiguities the same shall be explained and adjusted
by the Engineer, who shall then issue instructions to resolve the
problem A friendly approach

CPWD:
 the accepting authority shall be the deciding authority with regard
to the intention of the document and his decision shall be final and
binding on the contractor dictatorial overview of the situation-
Engineer is an Employer

5. DISRUPTION OF PROGRESS

FIDIC:
Disruption of progress contractor gives notice of delay for late
submission of drawings. Likely time of delay also to be mentioned.
In case of delay on part of the Engineer and contractor suffers
delay and costs Engineer shall determine EOT and cost to be
provided to the contractor
Vice- versa delays and disruption on part of contractor shall be
considered by the Engineer

CPWD:
Disruption due to
force majeure, bad weather, fire, commotion, contractor
engaged by engineer for works not being part of the contract, non
availability of stores being the responsibility of the government to
supply, any other cause beyond the control of contractor:
Request of extension of time can be made by the Contractor.
Engineer-in-charge to give fair consideration for completion of
work and provide for extension.
Decision within three months and this shall be final and binding

NOTE: (a) In CPWD for reasons where the Engineer-in-charge is personally

responsible for delay is not listed as qualifier for request for extension.
(b) No mention of a monetary compensation against losses resulting form
delays that are not attributable to the contractor.

6. IMPARTIALLITY OF THE ENGINEER

FIDIC:
Engineer shall consult with each party in an endeavor to reach
agreement, if no agreement reached then engineer to make a fair
determination in accordance with the contract.
 CPWD:
This impartiality is impossible as the Engineer and the Employer
are one and the same.

7. PERFROMANCE SECURITY

FIDIC:
Employer shall not make a claim under performance security for
reasons except those specified
Employer to indemnify and hold contractor harmless against and
from all damages resulting from a claim under performance
security to the extent to which the Employer was not entitled to
make a claim.

CPWD:
No such mention of reasons for claim under performance security
Also, it is impossible to believe that the Employer shall give any
indemnity.

8. RISKS

FIDIC:
Provisions for a fair share of risks have been made
Unforeseen physical condition Engineer to determine the
entitlement of contractor for EOT and extra cost.
Several categories of risks and situations provide for the Employer
to indemnify the contractor from damage or loss form those
situations

CPWD:
Do not provide for this and therefore all risks are transferred to the
contractor, thereby raising the price structure

9. ENGINEERS DECISION FINAL AND BINDING

FIDIC:
 None of the decisions are final and binding on either party

CPWD:

Serial Clause Authority whose Topic

No. decision is said
to be final

1. Clause 2 Superintending Decision on the compensation to be

Engineer levied for failure to maintain the agreed
rate of progress, or for delay in
completion.
2. Clause 3 Engineer-in- Opinion of the Engineer-in-charge,
charge regarding whether the contractor shall not
be able to complete the work by the
specified date of completion, for the
purposes of taking further action under
clause 3 to determine the contract.
3. Clause 3 Engineer-in- Notice to be issued for determining the
charge contract.
4. Clause 3 Engineer-in- The cost of the labour and materials input
charge for carrying out the work which is to be
debited to the contractors account under
clause 3(b)
5. Clause 3 The value of the work to be credited to the
contractors account when the work is
carried out at the risk and cost of the
contractor after determination of the
contract.
6. Clause 4 Engineer-in- Exercising the decision to take
charge possession of, or to use on hire, the
contractors materials and stores on
determination of the contract under
clause 3. Also, the hire charges to be paid
to the contractor if the tools and plant are
used as on hire.
7. Clause Engineer-in- Adoption of the mode of recovery
10 charge prescribed in clause 42 at any stage of the
work when the reconciliation between the
quantity issued, quantity required as per
theoretical requirement and the balance
quantity available, is not satisfactory.
Serial Clause Authority whose Topic
No. decision is said
to be final

8. Clause Engineer-in- Price to be allowed for the materials

10 charge returned by the contractor from the
materials issued to him which are found
to be surplus
9. Clause Engineer-in- Extension of time to be granted for delay
10 charge in supply of stipulated materials.
10. Clause Engineer-in- Payment of secured advance on
10 B charge perishable materials provided insurance
is made for full cost of those materials.
11. Clause Engineer-in- Decision to suspend work for reasons
15 charge specified in clause 15(i), which include
contractors defaults as well as other
reasons such as safety of work etc.
12. Clause Engineer-in- Acceptance of sub-standard work at
16 charge reduced rates or rejecting the sub-
standard work and getting it rectified at
the contractors risk and cost.
13. Clause Divisional Recovery to be made for non-submission
19 D Officer or incorrect submission of the prescribed
periodical labour returns.
14. Clause Divisional Recovery to be made for breach of labour
19 G Officer regulations, or in furnishing the required
statements/information, or for furnishing
incorrect information.
15. Clause Superintending Levy of compensation due to delay in
19 J Engineer acceptance of a completed building, such
delay being attributed to unauthorised
occupation of the building during
construction
16. Clause Chief Engineer Decision on the dispute referred to the
25 Chief Engineer for adjudication within the
terms of clause 25, if the contractor fails
to give a notice, for appointment of an
arbitrator, within 30 days of receipt of the
decision from the Chief Engineer.
17. Clause Engineer-in- Amount payable to the contractor for
27 charge work done against the lump sum
provision made in the tender.
Serial Clause Authority whose Topic
No. decision is said
to be final

18. Clause Engineer-in- Number of coal mining/controlled area

30 charge labourers employed by the contractor,
and the number of days for which they
have been employed, in contravention of
the provisions of clause 30.
19. Clause Engineer-in- Cost to be recovered from the contractor
32 charge towards damage and abnormal repairs
becoming necessary when contractor
uses water from existing wells and hand
pumps etc.
20. Clause Engineer-in- Price to be allowed for surplus materials
33 charge taken over, when the materials were
originally procured with government
assistance.
21. Clause Divisional Liability on the contractor for damage to,
34 Officer or delay in returning of, the departmental
plant and machinery issued to the
contractor.
22. Clause Superintending Decision on the dispute for extent of hire
34 Engineer charges, and the number of days for
which the hire charges are payable, by the
contractor under clause 34 (iv) for the
plant and machinery issued to him.
23. Clause Engineer-in- Decision on the dispute on correctness of
34 charge the entries made in the logbook with
regard to the departmental machinery
issued to the contractor.
24. Clause Divisional Decision on the extent of the liability on
34 Officer the contractor for damage to or loss of
parts in the departmental machinery
issued to the contractor and for his failure
to return the same in time.
25. Clause Engineer-in- Decision on the issue whether no
36 charge technical representative is employed by
the contractor in terms of clause 36.
26. Clause Engineer-in- Decision recorded in the site order book
36 charge and the measurements recorded in the
Measurement books, if it is already held
that no technical representative is
Serial Clause Authority whose Topic
No. decision is said
to be final

employed by the contractor, in terms of

clause 36.
27. Clause Superintending Decision on whether the delay in
38 Engineer execution of work is due to reasons within
the control of the contractor, in relation to
the contractors entitlement for claims for
reimbursement of taxes paid on account
of introduction of new taxes under the
Constitution (46th Amendment) Act, 1982.
28. Clause Engineer-in- Decision with regard to the theoretical
42 charge quantities of materials issued by the
department, that should have been used
and the consequential recovery to be
made in accordance with the procedure
and rates as per clause 42.
29. Clause Superintending Decision regarding the theoretical
42 Engineer quantities of materials that should have
been used in non-schedule items.
30. Clause Engineer-in- Decision regarding the quality and the
43 charge quantity of materials collected by the
contractor, and the purpose for which
such materials were collected, for the
purposes of evaluating the compensation
to be paid to the contractor when damage
occurs in war like situations.
31. Safety Engineer-in- Decision on the extent to which the safety
Code charge precautions are required to be taken.
Item 8(p)
32. CPWD Superintending Application and interpretation of
contract Engineer amendments made in the regulations.
ors
labour
regulatio
ns item
18