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    Compensation Events

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    Woodlock Limited
    The document outlines compensation events and termination clauses in a construction contract. It lists 11 compensation events including the employer not providing site access, ordering delays, and adverse ground conditions. It states the contract price and completion date can be adjusted for compensation events. It also lists 5 fundamental breaches allowing contract termination including the contractor stopping work for over 28 days or the employer not paying within 84 days of certification.

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    © All Rights Reserved
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    Compensation Events

    Uploaded by

    Woodlock Limited
    31 views2 pages
    The document outlines compensation events and termination clauses in a construction contract. It lists 11 compensation events including the employer not providing site access, ordering delays, and adverse ground conditions. It states the contract price and completion date can be adjusted for compensation events. It also lists 5 fundamental breaches allowing contract termination including the contractor stopping work for over 28 days or the employer not paying within 84 days of certification.

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    The document outlines compensation events and termination clauses in a construction contract. It lists 11 compensation events including the employer not providing site access, ordering delays, and adverse ground conditions. It states the contract price and completion date can be adjusted for compensation events. It also lists 5 fundamental breaches allowing contract termination including the contractor stopping work for over 28 days or the employer not paying within 84 days of certification.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    31 views2 pages

    Compensation Events

    Uploaded by

    Woodlock Limited
    The document outlines compensation events and termination clauses in a construction contract. It lists 11 compensation events including the employer not providing site access, ordering delays, and adverse ground conditions. It states the contract price and completion date can be adjusted for compensation events. It also lists 5 fundamental breaches allowing contract termination including the contractor stopping work for over 28 days or the employer not paying within 84 days of certification.

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    © All Rights Reserved
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    3. Compensation 3.

    1 The following shall be Compensation Events:


    Events
    (a) The Employer does not give access to a part of the Site by
    the Site Possession Date pursuant to GCC Sub-Clause 20.1.
    (b) The Employer modifies the Schedule of Other Contractors
    in a way that affects the work of the Contractor under the
    Contract.
    (c) The Project Manager orders a delay or does not issue
    Drawings, Specifications, or instructions required for
    execution of the Works on time.
    (d) The Project Manager instructs the Contractor to uncover or
    to carry out additional tests upon work, which is then found
    to have no Defects.
    (e) The Project Manager unreasonably does not approve a
    subcontract to be let.
    (f) Ground conditions are substantially more adverse than could
    reasonably have been assumed before issuance of the Letter
    of Acceptance from the information issued to bidders
    (including the Site Investigation Reports), from information
    available publicly and from a visual inspection of the Site.
    (g) The Project Manager gives an instruction for dealing with an
    unforeseen condition, caused by the Employer, or additional
    work required for safety or other reasons.

    (h) Other contractors, public authorities, utilities, or the


    Employer does not work within the dates and other
    constraints stated in the Contract, and they cause delay or
    extra cost to the Contractor.

    (i) The advance payment is delayed.

    (j) The effects on the Contractor of any of the Employer’s


    Risks.

    (k) The Project Manager unreasonably delays issuing a


    Certificate of Completion.

    3.2 If a Compensation Event would cause additional cost or would


    prevent the work being completed before the Intended Completion
    Date, the Contract Price shall be increased and/or the Intended
    Completion Date shall be extended. The Project Manager shall
    decide whether and by how much the Contract Price shall be
    increased and whether and by how much the Intended Completion
    Date shall be extended.
    3.3 As soon as information demonstrating the effect of each
    Compensation Event upon the Contractor’s forecast cost has been
    14. Completion 14.1 The Contractor shall request the Project Manager to issue a
    Certificate of Completion of the Works, and the Project Manager
    shall do so upon deciding that the whole of the Works is completed.
    15. Taking Over 15.1 The Employer shall take over the Site and the Works within seven
    days of the Project Manager’s issuing a certificate of Completion.
    16. Final Account 16.1 The Contractor shall supply the Project Manager with a detailed
    account of the total amount that the Contractor considers payable
    under the Contract before the end of the Defects Liability Period.
    The Project Manager shall issue a Defects Liability Certificate and
    certify any final payment that is due to the Contractor within 56
    days of receiving the Contractor’s account if it is correct and
    complete. If it is not, the Project Manager shall issue within 56 days
    a schedule that states the scope of the corrections or additions that
    are necessary. If the Final Account is still unsatisfactory after it has
    been resubmitted, the Project Manager shall decide on the amount
    payable to the Contractor and issue a payment certificate.
    17. Operating and 17.1 If “as built” Drawings and/or operating and maintenance manuals
    Maintenance are required, the Contractor shall supply them by the dates stated
    Manuals in the PCC.
    17.2 If the Contractor does not supply the Drawings and/or manuals by
    the dates stated in the PCC pursuant to GCC Sub-Clause 55.1, or
    they do not receive the Project Manager’s approval, the Project
    Manager shall withhold the amount stated in the PCC from
    payments due to the Contractor.
    18. Termination 18.1 The Employer or the Contractor may terminate the Contract if the
    other party causes a fundamental breach of the Contract.

    18.2 Fundamental breaches of Contract shall include, but shall not be


    limited to, the following:

    (a) the Contractor stops work for 28 days when no stoppage of


    work is shown on the current Program and the stoppage has
    not been authorized by the Project Manager;
    (b) the Project Manager instructs the Contractor to delay the
    progress of the Works, and the instruction is not withdrawn
    within 28 days;
    (c) the Employer or the Contractor is made bankrupt or goes into
    liquidation other than for a reconstruction or amalgamation;
    (d) a payment certified by the Project Manager is not paid by the
    Employer to the Contractor within 84 days of the date of the
    Project Manager’s certificate;
    (e) the Project Manager gives Notice that failure to correct a
    particular Defect is a fundamental breach of Contract and the

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