07b. PSSCOC 2014 (20 Nov 15)

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PUBLIC SECTOR

STANDARD CONDITIONS OF CONTRACT


for Construction Works 2014

1 DEFINITIONS AND INTERPRETATION

1.1 Definitions

In the Contract (as hereinafter defined) the following words and expressions shall have the
meanings hereby assigned to them except where the context otherwise requires:

(a) “Appendix” means the appendix to these Conditions.

(b) “Claimed Amount” means the whole or part of any payment claimed by the Contractor
in a Payment Claim pursuant to Clause 32.1(1).

(c) “Conditions” means the Standard Conditions and Particular Conditions (if any) of
Contract for Construction Work contained in the Contract and Option Modules
specified in the Appendix.

(d) “Contract” means the Conditions and Appendix, the Specifications, Drawings,
Schedule of Rates (if any), Bills of Quantities (if any), the Tender, Letter of
Acceptance, Agreement and such other letters and documents as the parties may
expressly identify in writing and agree as forming part of the contract.

(e) “Contract Sum” means the lump sum set out in the Letter of Acceptance, and shall be
fixed subject only to adjustments expressly provided for in the Conditions.

(f) “Contractor” means the person or firm or corporation whose Tender has been accepted
by the Employer and includes the Contractor’s legal personal representatives and any
person to whom the rights or liabilities of the Contractor have been assigned or
transferred with agreement in writing of the Employer under Clause 30.1.

(g) “Construction Equipment” means all equipment, apparatus and things of whatsoever
nature required for the execution and completion of both the Temporary Works and
the Permanent Works and the remedying of any defects therein, but does not include
Plant, materials, goods or work or other things intended to be part of the Works.

(h) “Contractor’s Representative” means the person duly appointed pursuant to Clause
11.2 of the Conditions.

(i) “Date of Substantial Completion” means the date stated in a certificate issued pursuant
to Clause 17.1 or Clause 17.3.

(j) “Defect” means any part of the Works not executed provided or completed in
accordance with the Contract. For the avoidance of doubt and without limiting the
generality of the expression the term shall be taken to include any item of Plant,
material, goods or work incorporated or used in the Works which does not or may not
conform to the relevant quality standards or pass the tests prescribed in or to be
inferred from the Contract.

(k) “Defects Liability Period” means the Defects Liability Period set out in the Appendix
hereof, calculated from:

(i) the Date of Substantial Completion of the Works certified by the


Superintending Officer in accordance with Clause 17; or

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(ii) in the event of more than one Certificate of Substantial Completion having
been issued by the Superintending Officer under Clause 17, the respective
Dates of Substantial Completion so certified.

(l) “Drawings” means the drawings referred to in the Contract including such drawings
which have been prepared by the Contractor and accepted by the Superintending
Officer pursuant to Clause 6.2 and such other drawings as may from time to time be
issued or accepted in writing by the Superintending Officer.

(m) “Employer” means the government or the statutory body specified in the Appendix.

(n) “Final Account Certificate” means the document issued by the Superintending Officer
under Clause 32.5.

(o) “Final Payment Claim” means a claim for payment made by the Contractor pursuant
to Clause 32.4(1).

(p) “Letter of Acceptance” means the formal acceptance by the Employer of the Tender.

(q) “Loss and Expense” means:

(i) the direct relevant costs of labour, Plant, materials, or goods actually incurred;
and

(ii) costs of an overhead nature actually and necessarily incurred on the Site but in
either case only in so far they would not otherwise have been incurred and
which were not and should not have been provided for by the Contractor; and

(iii) 15% of any such costs, such 15% to be inclusive of and in lieu of any profits,
head office or other administrative overheads, financing charges (including
foreign exchange losses) and any other costs, loss or expense of whatsoever
nature and howsoever arising.

(r) “Option Module” means an Option Module appearing at the end of the Conditions.

(s) “Payment Claim” means a claim for payment made by the Contractor pursuant to
Clause 32.1(1).

(t) “Payment Certificate” means a certificate issued by the Superintending Officer


pursuant to Clause 32.2(1) or Clause 32.5(1)(a) in response to a Payment Claim or
Final Payment Claim made by the Contractor.

(u) “Permanent Works” means the works of a permanent nature (including Plant) to be
executed in accordance with the Contract.

(v) “Plant” means machinery, apparatus and the like intended to form or forming part of
the Permanent Works.

(w) “Provisional Sum Items” means items of work which shall only be executed or
provided upon instruction in writing by the Superintending Officer who may decide
that the work in whole or in part or not at all may be carried out by the Contractor.

(x) “Rates” means those in the Schedule of Rates or the rates and prices contained in Bills
of Quantities, whichever is applicable, including any modifications or additions
thereto agreed in writing by the Employer and the Contractor.

(y) “Response Amount” means the amount that the Superintending Officer proposes to
pay to the Contractor in the Payment Certificate issued pursuant to Clause 32.2(1).

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(z) “Site” means the lands and other places on, in, under, over or through which the
Works are to be executed or carried out or any other lands or places provided by the
Employer for the purposes of the Contract.

(aa) “Specifications” means all specifications contained in the Contract including any
modifications or additions thereto as may from time to time be issued or approved in
writing by the Superintending Officer.

(ab) “Superintending Officer” means the person, firm or corporation appointed as such by
the Employer for the purposes of the Contract.

(ac) “Superintending Officer’s Representative” means the person, appointed from time to
time by the Superintending Officer under Clause 2.2.

(ad) “Tender” means the Contractor’s offer to the Employer to design (to the extent
provided for by the Contract), execute and complete the Works for a lump sum as
accepted by the Letter of Acceptance.

(ae) “Temporary Works” means all works of a temporary nature of every kind (other than
Construction Equipment) required or provided in or about the execution of the Works
and the remedying of any defects therein.

(af) “Time for Completion” means time or times for the completion of the Works or any
phase or part of the Works set out in the Letter of Acceptance or Appendix subject to
such extension or extensions of time (if any) as the Contractor may be allowed under
the Contract.

(ag) “Works” means the Temporary Works and the Permanent Works, and where the
context requires, a phase or part of the Works.

1.2 Singular and Plural

Words importing the singular also include the plural and vice versa where the context requires.

1.3 Headings and Marginal Notes

The headings and marginal notes in the Conditions shall not be deemed to be part of the
Conditions or be taken into consideration in the interpretation or construction of the
Conditions or of the Contract.

1.4 Joint and Several Liability

If the Contractor is a joint venture partnership, the individual partners or companies


comprising the Contractor shall be deemed jointly and severally liable to the Employer under
this Contract.

2 SUPERINTENDING OFFICER AND SUPERINTENDING OFFICER’S


REPRESENTATIVE

2.1 Superintending Officer’s Authority

(1) The authority of the Superintending Officer shall be that stated in or necessarily to be
implied from the Contract. Any limitations on the authority of the Superintending
Officer are set out in the Appendix.

(2) Except as expressly stated in the Contract, the Superintending Officer shall have no
authority to relieve the Contractor of any of his obligations under the Contract.

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2.2 Superintending Officer’s Representative

The Superintending Officer’s Representative shall be appointed by and be responsible to the


Superintending Officer and shall carry out such duties and exercise such authority as may be
delegated to him by the Superintending Officer under Clause 2.3.

2.3 Superintending Officer’s Authority to Delegate

The Superintending Officer may from time to time delegate to the Superintending Officer’s
Representative any of the duties or functions vested in the Superintending Officer other than
those listed in the Appendix pursuant to Clause 2.1 and he may at any time revoke such
delegation. Any such delegation or revocation shall be in writing and shall not take effect until
a copy of such delegation and/or revocation has been delivered to the Contractor. Any act
done by the Superintending Officer’s Representative in accordance with such delegation shall
have the same effect as though it had been done by the Superintending Officer. Provided that:

(a) any failure of the Superintending Officer’s Representative to disapprove any Plant,
materials, goods or work shall not prejudice the authority of the Superintending
Officer to disapprove such Plant, materials, goods or work and to give instructions for
the rectification of any such Plant, materials, goods or work;

(b) if the Contractor disputes any act of the Superintending Officer’s Representative, he
shall refer the matter to the Superintending Officer who shall confirm, reverse or vary
(as the case may be) the act or decision of the Representative.

2.4 Appointment of Assistants

The Superintending Officer or the Superintending Officer’s Representative may appoint in


writing any number of persons to assist the Superintending Officer’s Representative in the
carrying out of his duties under Clause 2.2. The Contractor shall be notified in writing of the
names, duties and authority (if any) of such assistants. Unless authorised in writing by the
Superintending Officer, such assistants shall have no authority to issue any instructions to the
Contractor save insofar as such instructions may be necessary to enable them to carry out their
duties and to secure that the Plant, materials, goods or work are in accordance with the
Contract.

2.5 Instructions by Superintending Officer

Instructions given by the Superintending Officer shall be in writing. Provided that if for any
reason the Superintending Officer considers it necessary to give any such instruction orally,
the Contractor shall comply with such instruction. Confirmation in writing of such oral
instruction given by the Superintending Officer, whether before or after the carrying out of the
instruction, shall be deemed to be an instruction within the meaning of this Clause. Provided
further that if the Contractor, within 7 days, confirms in writing to the Superintending Officer
any oral instruction of the Superintending Officer and such confirmation is not contradicted in
writing within 7 days by the Superintending Officer, it shall be deemed to be an instruction of
the Superintending Officer. The provisions of this Clause shall equally apply to instructions
given by the Superintending Officer’s Representative and any assistants of the Superintending
Officer or the Superintending Officer’s Representative appointed pursuant to Clause 2.4.

2.6 Failure to Comply with Superintending Officer’s Instructions

If the Contractor, after receipt of an instruction from the Superintending Officer or the
Superintending Officer’s Representative, fails to comply with it within 14 days (or within such
period as may be stipulated in the instruction):

(a) the Employer may employ and pay other persons to do whatever may be necessary to
give effect thereto and may recover the amount of any cost, loss, expense and damage
incurred or suffered in connection therewith;

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(b) the amount of any other loss or damage suffered or incurred by the Employer as a
result of the Contractor’s default shall be recoverable from the Contractor.

2.7 Urgent Repairs

If by reason of any accident or failure or other event occurring to or in connection with the
Works, either during the execution of the Works or during the Defects Liability Period, any
remedial or other work shall in the opinion of the Superintending Officer be urgently
necessary and the Contractor is unable or unwilling at once to do such remedial or other work,
the Superintending Officer may authorise the carrying out of such remedial or other work by a
person other than the Contractor. If the remedial or other work so authorised by the
Superintending Officer is work which in the opinion of the Superintending Officer the
Contractor was liable to do or for which he was otherwise responsible under the Contract, the
amount of any cost, loss, expense or damage incurred in carrying out the same shall be
recoverable by the Employer from the Contractor.

2.8 No Obligation to Exercise Powers

(1) The Superintending Officer, the Superintending Officer’s Representative or any


assistant appointed pursuant to Clause 2.4 shall at no time be under any obligation or
duty to the Contractor either on behalf of the Employer or his own account to exercise
or not to exercise any of his powers under the Contract, nor shall any failure to do so
on his part in any way prejudice the rights of the Employer against the Contractor or
render the Employer liable to the Contractor.

(2) The provisions of this Clause shall not affect the liability of the Employer for any act
or omission of the Superintending Officer, the Superintending Officer’s
Representative or any assistant appointed pursuant to Clause 2.4 acting on behalf of
the Employer within the scope of the authority conferred on that person.

3 CONTRACT DOCUMENTS

3.1 Contract Documents to be Taken as Mutually Explanatory

The several documents forming the Contract are to be taken as mutually explanatory of one
another but in the event of any conflict or inconsistency between the Conditions and the other
documents forming the Contract, the Conditions shall be given precedence. Within the
Conditions, the Particular Conditions, if any, shall be given precedence.

3.2 Custody and Supply of Drawings and Documents

(1) The Drawings shall remain in the sole custody of the Superintending Officer but four
copies of the Drawings shall be provided to the Contractor free of charge. The
Contractor shall make at his own cost any further copies required by him. Unless it is
strictly necessary for the purposes of the Contract, the Drawings, Specifications and
other documents provided by the Employer or the Superintending Officer shall not,
without the consent of the Superintending Officer, be used or communicated to a third
party by the Contractor.

(2) The Contractor shall supply to the Superintending Officer six copies of all Drawings,
Specifications and other documents submitted by the Contractor and accepted by the
Superintending Officer in accordance with Clause 6.2, together with a reproducible
copy of any material which cannot be reproduced to an equal standard by
photocopying. In addition, the Contractor shall supply such further copies of such
Drawings, Specifications and other documents as the Superintending Officer may
request in writing for the use of the Employer, who shall pay the cost of such copies.

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3.3 Drawings to be Kept on Site

One copy of the Drawings, provided to or supplied by the Contractor as aforesaid, shall be
kept on the Site by the Contractor and the same shall at all reasonable times be available for
inspection and use by the Superintending Officer and by any other person authorised by the
Superintending Officer in writing.

3.4 Need for Further Drawings etc.

The Contractor shall give adequate notice in writing to the Superintending Officer:

(a) of any further drawing, specification or other information which the Superintending
Officer is required to provide under the Contract;

(b) of any drawing, specification, instruction or other information which is required by


any specific time, whenever the planning or execution of the Works is likely to be
delayed or disrupted by its lack, and whether or not the need for it is shown on any
programme accepted by the Superintending Officer under Clause 9.

The notice shall also state the consequences in terms of delay to the progress or completion of
the Works or any part of the Works and any financial consequences should the Superintending
Officer not comply with any of the requirements of the notice. The Superintending Officer
shall on receipt of the notice comply with its requirements, provided that it is given in
sufficient time for the Superintending Officer reasonably to prepare and issue the information
required.

3.5 Further Supplementary Drawings etc. and Instructions

The Superintending Officer shall issue to the Contractor, from time to time, such further or
revised drawings, specifications or instructions as may in his opinion be necessary for the
purposes of the execution and completion of the Works. The Contractor shall carry out and be
bound by the same.

3.6 Delay and Time

If:

(a) the Contractor shall have duly given notice pursuant to Clause 3.4 and if the
Superintending Officer shall not have complied with any of its requirements; or

(b) the Superintending Officer shall not have issued any further or revised drawing
specification or instruction as required by Clause 3.5,

and if thereby the progress or completion of the Works or any part of the Works has been
materially affected then, subject to compliance by the Contractor with Clauses 14, 23 and 32,
the Superintending Officer may grant an extension of time pursuant to Clause 14 and may
certify pursuant to Clause 32 such sum as may be reasonable in respect of any Loss and
Expense incurred by the Contractor.

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4 GENERAL OBLIGATIONS OF THE CONTRACTOR

4.1 Contractor’s General Responsibilities

The Contractor shall, with due care and diligence, design (to the extent provided for by the
Contract), execute and complete the Works and remedy any defects in the Works in
accordance with the provisions of the Contract and to the satisfaction of the Superintending
Officer. The Contractor shall provide all superintendence, labour, Plant, Construction
Equipment, materials, goods and all other things, whether of a temporary or permanent nature
required in and for such design, execution, completion of the Works and remedying of any
Defect. Nothing in this Clause shall affect the Contractor’s responsibilities under common law
to complete the Works.

4.2 Site Operations and Methods of Construction

The Contractor shall take full responsibility for the adequacy, stability and safety of all Site
operations and methods of construction. Provided that the Contractor shall not be responsible
(except as stated hereunder or as may be otherwise agreed in writing between the Employer
and the Contractor) for the design of the Permanent Works or for the design of any Temporary
Works not prepared by the Contractor or by any sub-contractor or supplier.

4.3 Contractor’s Responsibility for Subcontractors

Save as otherwise expressly provided in the Contract, the Contractor shall make good any
damage, loss or injury suffered by the Employer by reason of any breach of contract,
repudiation, default or failure, whether total or partial, on the part of any subcontractor or
supplier whether nominated or privately engaged by the Contractor, and shall indemnify the
Employer against all and any loss, expense, costs, damages, liability or claim arising
therefrom.

4.4 Responsibility for Identifying Ambiguities, Discrepancies, etc.

(1) The Contractor shall forthwith notify the Superintending Officer in writing of any
ambiguity, discrepancy, conflict, inconsistency or omission in or between any of the
Contract documents that may at any time be found. The Superintending Officer insofar
as it may affect the execution or completion of the Works shall then explain and adjust
it and may issue to the Contractor an instruction so as to resolve the ambiguity,
discrepancy, conflict, inconsistency or omission. If, in the opinion of the Contractor,
compliance with any such instruction is likely to or has involved the Contractor in any
Loss and Expense which could not have been reasonably foreseen by an experienced
contractor (assuming a diligent perusal of the documents submitted prior to Contract),
the Contractor shall forthwith notify the Superintending Officer in writing and subject
to compliance by the Contractor with Clauses 14, 23 and 32, the Superintending
Officer may grant an extension of time pursuant to Clause 14 and may certify pursuant
to Clause 32 such sum as may be reasonable in respect of such Loss and Expense.

(2) In the event that instructions issued by the Superintending Officer to resolve such
ambiguity, discrepancy, conflict, inconsistency or omission result in a reduction in the
Contract Sum, such reduction shall be determined in accordance with Clause 20 and
the Superintending Officer shall be entitled to reduce any valuation of the Works made
under Clause 32 accordingly.

(3) Nothing in Clause 4.4(1) or the Contract shall entitle the Contractor to an extension of
time or Loss and Expense or any other compensation or remedy whatsoever (whether
pursuant to the Contract or as damages or otherwise in law) for any ambiguity,
discrepancy, conflict, inconsistency or omission in any of the documents which could
have been found prior to the date of the Letter of Acceptance and the Contractor shall
be deemed to have found it and to have entered into the Contract with full knowledge
of it and of any resolution of it.

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4.5 Security Deposit

(1) Within 14 days of the Letter of Acceptance or such other longer period as may be
prescribed by the Employer in the Appendix, the Contractor shall deposit with the
Employer an amount specified in the Appendix and by way of security for the due
performance of and observance by the Contractor of his obligations under the
Contract.

(2) The Contractor may, in lieu of the cash deposit in Clause 4.5(1) and for the same
purposes, provide a guarantee for an equivalent amount from a Monetary Authority of
Singapore (MAS)-approved bank or MAS-approved insurance company and in the
prescribed form.

(3) The term “Security Deposit” shall hereafter refer to:

(i) the cash deposited under Clause 4.5(1); or

(ii) the cash proceeds of any or all demands on the guarantee provided pursuant to
Clause 4.5(2).

The Employer may utilise the Security Deposit to make good any loss or damage
sustained or likely to be sustained as a result of any breach of contract whatsoever by
the Contractor, including any liquidated damages. If the amount of the Security
Deposit utilised by the Employer to make good any such loss or damage is found to be
greater than the amount of loss or damage actually sustained by the Employer, then the
Employer shall pay the balance of the amount utilised by the Employer without the
addition of interest to the Contractor or to the bank or insurer, as the case may be,
upon issue of the Final Completion Certificate. Where the Security Deposit is made in
cash, the Employer shall pay to the Contractor the unutilised amount without interest
upon the issue of the Final Completion Certificate.

(4) The provisions of this Clause shall not affect the rights and remedies expressly
reserved herein to the Employer or bar the Employer from claiming loss, expense,
costs or damages incurred or sustained or likely to be sustained by the Employer as a
result of any breach of contract of whatsoever nature by the Contractor.

4.6 Sufficiency of Tender

Subject to Clause 5.2, the Contractor shall be deemed to have satisfied himself before
submitting the Tender as to the correctness and sufficiency of the Tender which shall be
deemed to cover all his obligations under the Contract and all matters and things necessary for
the proper construction and completion of the Works.

4.7 Patents, Trademarks, Copyrights, etc.

The Contractor shall defend, indemnify and save harmless the Employer from and against all
claims and proceedings for or on account of infringements of any patent rights, design,
trademark name or copyright or other protected rights in respect of any Construction
Equipment, Plant, materials, goods or design (submitted by the Contractor pursuant to his
obligations under the Contract) used for or in connection with or for incorporation in the
Works and from or against all loss, expense, costs or damages whatsoever in respect of such
claims or proceedings or in relation thereto, except where such infringement results from
compliance with the design or Specifications provided by the Superintending Officer.

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5 SUB-SURFACE AND GROUND CONDITIONS

5.1 Inspection of Site and Geotechnical Information

The Contractor shall be deemed to have inspected and examined the Site and its surroundings
and to have satisfied himself before submitting the Tender as to the nature of the ground and
sub-soil and the form and nature of the Site. Geotechnical information obtained from site
investigation, reports, publications and/or journals concerning the site may be provided by the
Employer. The provision of the geotechnical information by the Employer shall not relieve the
Contractor from the responsibility of carrying out his own investigation and/or search for
existing and other additional geotechnical information relevant to the Site.

5.2 Adverse Physical Conditions

If the Contractor shall encounter adverse physical conditions (other than weather conditions or
effects due to weather conditions on the Site) in the course of carrying out sub-surface works,
which adverse physical conditions could not have been reasonably foreseen by an experienced
contractor and the Contractor is of the opinion that additional cost will be incurred which
would not have been incurred if such adverse physical conditions had not been encountered, he
shall if he intends to make any claim forthwith give notice in writing to the Superintending
Officer pursuant to Clauses 14 and 23. As soon as possible thereafter, the Contractor shall
give details of the anticipated effects of such adverse physical conditions the measures he is
taking or is proposing to take and the extent of the anticipated delay in or interference with the
execution of the Works. If, in the opinion of the Superintending Officer, such adverse
physical conditions could not have been reasonably foreseen by an experienced contractor,
then subject to compliance by the Contractor with Clauses 14, 23 and 32 the Superintending
Officer may grant an extension of time pursuant to Clause 14 and may certify pursuant to
Clause 32 such sum as may be reasonable in respect of such Loss and Expense (but not
including any loss, expenses, costs or damages which are the Contractor’s responsibility under
Clause 4.2) to which the Contractor shall have been put by reason:

(a) of complying with any instruction which the Superintending Officer may issue to the
Contractor in connection therewith; and

(b) of any proper and reasonable measures approved by the Superintending Officer which
the Contractor may take in the absence of specific instructions from the
Superintending Officer.

For the purpose of this Clause, adverse physical conditions shall be deemed to include
unforeseen sub-surface and ground conditions and all underground services which are in use.
The cost of diversion of underground services would be borne by the Employer unless
otherwise specified.

5.3 Underground Services

Information on underground services obtained from the relevant service providers may be
provided by the Employer. The provision of the information on underground services shall not
relieve the Contractor from the responsibility of engaging licensed cables/services detection
workers to carry out all cables/services detection work. In the event of any damage to the
underground services, the Contractor shall be liable for all costs and charges incurred.

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6 PERMANENT WORKS DESIGNED BY THE CONTRACTOR

6.1 Contractor’s Design Responsibility

Where the Contract expressly provides that the whole or any part of the Permanent Works
shall be designed by the Contractor, he shall be fully responsible for the suitability, adequacy,
integrity, durability and practicality of the design as set out in the Drawings, Specifications,
manuals, calculations and other information submitted for the acceptance of the
Superintending Officer under Clauses 6.2 and 6.3, including any subsequent amendment of
such design.

6.2 Submission of Documents Prior to Commencement

Where the Contract expressly provides that the whole or any part of the Permanent Works
shall be designed by the Contractor, the Contractor shall not proceed with the execution of the
same until he has submitted to the Superintending Officer such Drawings, Specifications,
manuals, calculations and other information as shall be necessary to demonstrate the
suitability, adequacy, integrity, durability and practicality of such design and the
Superintending Officer has issued his acceptance in writing of such design. Acceptance by the
Superintending Officer of such submission shall not relieve or in any way limit the
responsibility of the Contractor under Clause 6.1.

6.3 Submission of Documents after Completion

Upon the Date of Substantial Completion (or the latest Date of Substantial Completion if there
is more than one Date of Substantial Completion), the Contractor shall submit for the
acceptance of the Superintending Officer operation and maintenance manuals together with
Drawings of the Permanent Works designed by the Contractor as completed in sufficient detail
to enable the Employer to operate, maintain, dismantle, reassemble and adjust the Permanent
Works incorporating such design.

6.4 Amendment and Modification of Accepted Design

The Superintending Officer may instruct the Contractor at any time, before, during or after the
execution or completion of the Works to amend or modify the design provided by the
Contractor in respect of any deficiency of any kind or nature discovered by the Superintending
Officer and to carry out such work as is necessary to give effect to such amended or modified
design in accordance with the Superintending Officer’s instruction. All work necessary
(including re-design work) or variations required as a result of such an instruction and their
costs shall be the entire responsibility of and shall be borne by the Contractor.

7 NOTICES AND FEES

7.1 Generally

The Contractor shall comply with and give notices required by any law, regulation or by-law,
or by any public authority or public service company, relating to the Works or, in the case of a
public authority or public service company, with whose systems the same are or will be
connected. The Contractor shall pay and indemnify the Employer against any fees or charges
imposed by law, regulation or by-law, or by any public authority or public service company in
respect of the Works.

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7.2 Variations Arising from Compliance

The Contractor shall, before making any variation from the Drawings and Specifications
necessitated by the compliance with Clause 7.1, give to the Superintending Officer notice in
writing specifying and giving the reasons for such variation and applying for instructions in
reference thereto. Provided that if the Contractor does not receive instructions from the
Superintending Officer within 7 days from the date of the receipt of his application by the
Superintending Officer, he shall proceed with the Works conforming to the law, regulation,
by-law or requirements of the public authority or public service company in question. Any
variation necessitated as aforesaid which could not have been reasonably foreseen by an
experienced contractor at the time of submission of the Tender (and if it is not required by or
in consequence of any deficiency or fault in the design of any part of the Works for which the
Contractor is responsible under the Contract) shall be deemed a variation under Clause 19 and
dealt with as such.

7.3 Cost of Compliance

The Contractor shall be wholly responsible for compliance with the requirements of any law,
regulation, by-law or public authority as stipulated in Clause 7.1 notwithstanding that such
written law is enforced by the Employer or that such public authority is, or is part of, the
Employer. The Employer shall be deemed not to be responsible or liable for:

(a) any costs imposed by any requirements of any law, regulation, by-law or public
authority; or

(b) any default or delay by any public authority in the enforcement or implementation of
any law, regulation or by-law.

8 SETTING OUT

8.1 Accurate Setting Out

The Contractor shall be responsible for:

(a) the accurate setting out of the Works in relation to the original points, lines and levels
of reference given by the Superintending Officer in writing;

(b) the correctness of the position, levels, dimensions and alignment of all parts of the
Works; and

(c) the provision of all necessary instruments, equipment, apparatus and labour in
connection with the foregoing responsibilities.

8.2 Errors in Setting Out

If at any time during the execution of the Works, any error appears in the positions, levels,
dimensions or alignment of any part of the Works, the Contractor, on being required so to do
by the Superintending Officer shall, at his own cost, rectify such error to the satisfaction of the
Superintending Officer.

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9 PROGRAMME FOR THE WORKS

9.1 Programme to be Furnished

(1) Within 30 days after the date of the Letter of Acceptance or such other time as the
Superintending Officer may reasonably require, the Contractor shall submit to the
Superintending Officer a programme for the Works in the form and in compliance
with the requirements specified in the Contract or otherwise required in writing by the
Superintending Officer. The Contractor shall, whenever required by the
Superintending Officer, furnish him with such further particulars and information as
the Superintending Officer may reasonably require for the purpose of determining the
acceptability of the programme for the Works.

(2) Within 30 days of receiving the programme and any further particulars and
information required in relation to it, the Superintending Officer shall notify the
Contractor in writing if it is accepted or unacceptable. If the Contractor is not so
notified, the programme shall be deemed to be accepted.

(3) If the programme is not acceptable to the Superintending Officer, he shall notify in
writing the Contractor of his reasons for rejecting it and the Contractor shall within 14
days of receiving such notification submit a programme acceptable to him. Subject to
Clause 31.1, the Superintending Officer shall within a further 14 days of the
submission of such further programme notify the Contractor in writing whether such
further programme is accepted or unacceptable. If the Contractor is not so notified,
such further programme shall be deemed to be accepted. If it is not acceptable, then
the same procedure as set out above shall apply.

9.2 Revision of Programme

Should it appear to the Superintending Officer at any time that the actual progress of the
Works does not conform with the programme accepted under Clause 9.1, the Superintending
Officer may instruct in writing the Contractor to supply additional particulars or to submit a
revised or modified programme (or both) in order to show and to ensure completion of the
Works within the Time for Completion. The Contractor shall comply with such an instruction
within 7 days or such other period as the Superintending Officer may specify in the
instruction.

9.3 Acceptance of Programme

The acceptance by the Superintending Officer of the programme or of any revised or modified
programme shall not relieve the Contractor of any of his obligations to execute and complete
the Works in accordance with the Contract and by the Time for Completion, and such
acceptance shall not be construed as the grant of an extension of time under Clause 14 or as a
waiver of or fetter on the exercise by the Superintending Officer of his powers under Clause
15 or by the Employer or the Superintending Officer under Clause 31.

9.4 Failure to Submit Adequate Programme

In the event that the Contractor fails to comply with Clauses 9.1 and/or 9.2, without prejudice
to any other rights and remedies which may be available to the Employer or the
Superintending Officer, the Superintending Officer shall have the power to certify that ten
percent (10%) of all moneys that may be due to the Contractor as interim payments be retained
by the Employer, in addition to such other retentions as may be allowed under the terms of this
Contract, until such time that the Superintending Officer is satisfied that the Contractor has
complied with the requirements of Clauses 9.1 and/or 9.2. The amount retained by the
Employer shall only be released to the Contractor, without interest, upon a certificate by the
Superintending Officer that it may be paid.

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10 QUALITY IN CONSTRUCTION

10.1 Plant, Materials, Goods and Workmanship

All Plant, materials, goods and workmanship shall be:

(a) of the respective kinds described in the Contract and in accordance with the
instructions of the Superintending Officer; and

(b) subjected from time to time to such tests as the Superintending Officer may by
instruction require at the place of manufacture, fabrication or preparation, or on the
Site or at such other place or places as may be specified in the Contract, or at all or any
of such places.

10.2 Contractor to Provide Everything Necessary for Testing

The Contractor shall provide everything necessary as are required for examining, measuring
and testing any Plant, materials goods or workmanship and shall supply samples of materials,
before incorporation in the Works, for testing as may be selected and required by the
Superintending Officer.

10.3 Cost of Samples

Save as otherwise expressly provided in the Contract, samples shall be supplied by the
Contractor at his own cost.

10.4 Cost of Test

The cost of making any test required by the Superintending Officer shall be borne by the
Contractor if the need for such a test is provided in the Contract (unless the Contract provides
otherwise) or if the test is in the opinion of the Superintending Officer required in consequence
of some prior failure or breach of contract or other default of the Contractor. The cost of
making any test which is not so required shall be borne by the Contractor only if the test shows
that the relevant Plant, materials, goods or workmanship were not in accordance with the
Contract or did not meet the Superintending Officer’s instructions or satisfaction. If the test
shows otherwise, then subject to compliance by the Contractor with Clauses 14, 23 and 32, the
Superintending Officer may grant an extension of time pursuant to Clause 14 and may certify
pursuant to Clause 32 the cost of the test and/or for any Loss and Expense which the
Contractor may have incurred as a result of such test. The cost of the test shall be valued in
accordance with Clause 20 as if it were a variation ordered under Clause 19 but shall not
otherwise be construed as variation to the Works for the purpose of Clause 19 or 20.

10.5 Examination and Measurement of Works before Covering Up

No Works shall be covered up or put out of view without the approval of the Superintending
Officer or the Superintending Officer’s Representative and the Contractor shall afford full
opportunity for the Superintending Officer or the Superintending Officer’s Representative to
examine and measure any of the Works which is about to be covered up or put out of view.
The Contractor shall give due notice to the Superintending Officer’s Representative whenever
any such Works are ready or about to be ready for examination and the Superintending
Officer’s Representative shall without unreasonable delay, unless he considers it unnecessary
and advises the Contractor in writing accordingly, attend for the purpose of examining and
measuring such Works. If the Contractor shall fail and/or neglect to comply with the
provisions of this Clause:

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(a) the Superintending Officer may require the Contractor to uncover any part or parts of
the Works or to do all such things as are necessary for the Superintending Officer or
the Superintending Officer’s Representative to inspect the Works as constructed and
the cost of such requirements as directed by the Superintending Officer shall be borne
by the Contractor whether or not such part or parts uncovered are found to be executed
in accordance with the Contract and the Contractor shall not be entitled to any
extension of time for any delay thereby caused; and

(b) the additional cost of any measures or requirements carried out by or directed by the
Superintending Officer shall be borne by the Contractor.

10.6 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 Superintending Officer may from time to time instruct in writing and shall
reinstate and make good such part or parts to the satisfaction of the Superintending Officer. If
any such part or parts have been covered up or put out of view after compliance with the
requirements of Clause 10.5 and are found to be executed in accordance with the Contract,
then subject to compliance by the Contractor with Clauses 14, 23 and 32 the Superintending
Officer may grant an extension of time pursuant to Clause 14, and may certify pursuant to
Clause 32 such sum as may be reasonable to cover the costs of uncovering, making openings
in or through, reinstating and making good the same and any Loss and Expense but in any
other case all such costs and any Loss and Expense shall be borne by the Contractor and the
Contractor shall also not be entitled to any extension of time for any delay caused by such
instruction.

10.7 Defects during the Progress of the Works

If the Superintending Officer during the progress of the Works finds any Defect, he may
instruct the Contractor in writing to do any or all of the following:

(a) To demolish and reconstruct any work so that it is in accordance with the Contract.

(b) To remove from or not to bring to the Site any materials or goods which in the opinion
of the Superintending Officer are or may not be in accordance with the Contract and to
replace such materials or goods with materials or goods which are in accordance with
the Contract.

(c) To remove from the Site any Plant which in the opinion of the Superintending Officer
is not or may not be in accordance with the Contract and to provide Plant which is in
accordance with the Contract by the provision of new or alternative or repaired Plant.

The Superintending Officer’s instruction may specify the time or times within which the
Contractor is to comply with the instruction. If the Contractor disputes the instruction of the
Superintending Officer, he shall nevertheless comply with it but he may take action in
accordance with and subject to Clauses 14, 23, 32 or 35. If the Superintending Officer or an
arbitrator should decide that the Superintending Officer was not justified either wholly or in
part in giving the instruction then provided that the Contractor shall have complied with
Clauses 14, 23 and 32 the Superintending Officer may certify (or the arbitrator may award)
any Loss and Expense incurred by the Contractor and may grant an extension of time pursuant
to Clause 14.

10.8 Default of Contractor in Compliance

If the Contractor should fail or refuse to comply with an instruction of the Superintending
Officer pursuant to Clause 10.7, the Employer shall be entitled without prejudice to any other
rights and remedies to employ and pay others to carry out the subject-matter of the instruction
and the amount of any loss, expense, costs or damages suffered or incurred by the Employer
shall be recoverable from the Contractor.

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11 ADMINISTRATION

11.1 Days and Hours of Working

Subject to any provision to the contrary contained in the Contract, and subject to any written
law on noise pollution (including the Environmental Protection and Management (Control of
Noise at Construction Sites) Regulations), no work which requires supervision shall be carried
out during the night or on Sundays or on public holidays without the written permission of the
Superintending Officer except when such work is rendered unavoidable or necessary for the
saving of life or property or for the safety of the Works, in which case the Contractor shall
inform the Superintending Officer at the earliest possible opportunity of the same. For the
purposes of this Clause, the term “night” shall mean the period from 6.00 p.m. to 8.00 a.m.

11.2 Contractor’s Representative

(1) The Contractor shall appoint a competent and authorised person to represent him
(hereinafter called the “Contractor’s Representative”) and shall notify in writing the
Employer and the Superintending Officer of the name of such person. The
Contractor’s Representative shall be constantly on the Site during normal working
hours and shall give his whole time to the superintendence of the Works including the
remedying of any Defects after the Date of Substantial Completion. Any instructions
given to him by the Superintending Officer shall be deemed to have been given to the
Contractor.

(2) The Superintending Officer shall be empowered to object to the appointment or


employment or continued employment of any person appointed or employed as the
Contractor’s Representative and upon receipt from the Superintending Officer of a
notice of objection in writing, the Contractor shall forthwith remove him from the Site
provided always that the Superintending Officer shall not issue such a notice of
objection unreasonably or vexatiously.

11.3 Removal of Workmen and Other Personnel

The Contractor shall use or employ in and about the execution of the Works only such persons
as are careful, skilled and experienced in their respective vocations, trades and callings and the
Superintending Officer shall be at liberty to object to and require the Contractor to remove
immediately from the Works any such person employed by the Contractor in or about the
execution of the Works who in the opinion of the Superintending Officer misconducts himself
or is incompetent or negligent in the proper performance of his duties and whose continued
presence is undesirable or unacceptable. Such persons shall not be again used or employed
upon the Works without the prior written permission of the Superintending Officer.

11.4 Access for Superintending Officer

The Superintending Officer and any person authorised by him to examine or inspect the Works
shall at all reasonable times have access to the Works and to the factories, workshops or other
places where any Plant, materials, goods or work are being fabricated, prepared or stored for
the Contract. The Contractor shall ensure that sub-contracts shall contain provisions entitling
the Superintending Officer and any person authorised by him to have such access.

12 POSSESSION OF SITE AND COMMENCEMENT OF WORKS

12.1 Commencement of Works

The Contractor shall commence the Works:

(a) on the date specified in the Letter of Acceptance; or

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(b) if no date is specified in the Letter of Acceptance, on the date specified in an
instruction in writing to that effect from the Superintending Officer.

Thereafter the Contractor shall proceed with due diligence and expedition and without delay in
accordance with the Contract and in accordance with the programme or any revised or
modified programme accepted by the Superintending Officer pursuant to Clause 9. The Time
for Completion shall run from the date on which the Contractor is to commence the Works
under this Clause.

12.2 Site Possession

Save insofar as the Contract may expressly provide, the Employer shall, on or before the date
when the Contractor is to commence the Works pursuant to Clause 12.1, give to the Contractor
possession of so much of the Site as may be required to enable the Contractor to commence
the construction of the Works and will 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 construction of the Works in accordance with the Contract.
The Contractor’s licence to occupy and use the Site for the purposes of carrying out the Works
shall not be exclusive and shall be subject to the Employer’s rights under Clause 12.5 and as
otherwise provided in the Contract to enter so much of the Site as may not be required by the
Contractor for the purposes of the Works either because a phase or part of the Works has been
completed (whether or not a Certificate of Substantial Completion has been issued in respect
such phase or part) or because work is not actively being carried out on that phase or part of
the Works at that time.

12.3 Failure to Give Possession

If the Employer shall fail to give possession of the Site or any part of the Site in accordance
with Clause 12.2, then subject to compliance with Clauses 14, 23 and 32, the Superintending
Officer may grant an extension of time pursuant to Clause 14 and may certify pursuant to
Clause 32 any Loss and Expense which the Contractor may have incurred by reason of such
failure.

12.4 Rights of Access etc.

The Contractor shall at his own expense be responsible for obtaining any rights of way or of
access (including rights of over-sailing) that may be required by him or his methods of
operation for the purposes of the execution and completion of the Works. The Contractor shall
also provide at his own cost and expense any additional accommodation or land outside the
Site required by him for the purpose of the Works.

12.5 Other Contractors

(1) The Employer reserves the right to employ or otherwise engage any persons to carry
out on Site, work which does not form any part of the Works, whether or not
information with respect to such work is provided in the Contract. Every person so
employed shall be deemed to be a person for whom the Employer is responsible and
not to be a subcontractor. The Contractor shall permit the execution of any work by
any such person employed or engaged by the Employer. For the avoidance of doubt,
any properly authorised authority or statutory boards who may be employed in the
execution on or near the Site of any work not in the Contract shall not be regarded as
contractors of the Employer and shall not be deemed to be a person for whom the
Employer is responsible.

(2) If any part of the Works depends for proper execution or results upon the work of any
such person employed or engaged by the Employer as aforesaid, the Contractor shall
inspect and promptly report in writing to the Superintending Officer any apparent
discrepancies or defects in such work that may materially and adversely affect the
execution of the Works. Failure of the Contractor so to report to the Superintending

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Officer shall constitute acceptance by the Contractor of such person’s work as fit and
proper to receive into the Works.

13 SUSPENSION

13.1 Suspension of Work

(1) The Contractor shall, on the instruction in writing of the Superintending Officer,
suspend the progress of the Works or any phase or part of the Works for such time or
times and in such manner as the Superintending Officer may consider necessary and
shall, during such suspension, properly protect and secure the Works or such phase or
part of the Works so far as is necessary in the opinion of the Superintending Officer.

(2) Subject to Clauses 13.2, 23 and 32, the Superintending Officer may certify any Loss
and Expense which the Contractor may have incurred in giving effect to the
instruction beyond any loss, expense, costs or damages which would have been
incurred or for which the Contractor had or ought to have allowed in the Tender and,
subject to Clause 14, may grant the Contractor an extension of time unless such
instruction, loss, expense, costs or damages or extension is:

(a) otherwise provided for in the Contract; or

(b) necessary by reason of some default on the part of the Contractor or is caused
by an event which it was or would have been the Contractor’s responsibility to
have overcome; or

(c) necessary for the proper execution of the Works or for the safety of the Works
or any part of the Works.

13.2 Suspension Lasting More than 90 Days

If the progress of the Works or any part of the Works is suspended on the instruction in writing
of the Superintending Officer for more than 90 days, the Contractor may, unless such
suspension is otherwise provided for in the Contract, or continues to be necessary by reason of
some default on the part of the Contractor, or for the proper execution of the Works, or for the
safety of the Works or any part of the Works, serve a notice in writing on the Superintending
Officer requiring permission within 30 days from the receipt of such notice to proceed with the
Works or that part of the Works which is suspended. If such permission is not granted within
such period of 30 days, the Contractor may by a further notice in writing so served elect to
treat the suspension where it affects part only of the Works as an omission of such part under
Clause 19.1 or, where it affects the whole of the Works, as if the Employer had at the expiry of
such period of 30 days given a Notice of Termination pursuant to Clause 31.4, in which event
the Contractor shall be entitled to be paid in accordance with the provisions of Clause 31.4(2).

14 TIME FOR COMPLETION

14.1 Contractor to Complete on Time

The Contractor shall complete the Works and any phase or part of the Works within the Time
or Times for Completion stated in:

(a) The Letter of Acceptance; or

(b) The Appendix, as the case may be.

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14.2 Extension of the Time for Completion

The time within which the Works or any phase or part of the Works is to be completed may be
extended by the Superintending Officer either prospectively or retrospectively and before or
after the Time for Completion by such further period or periods of time as may reasonably
reflect delay in completion of the Works which, notwithstanding due diligence and the taking
of all reasonable steps by the Contractor to avoid or reduce such delay, will or might be or has
been caused by any of the following events:

(a) Force majeure.

(b) Exceptionally adverse weather conditions or severe haze conditions the assessment of
which shall be in accordance with the relevant provision in the Contract.

(c) Industrial action by workmen, strikes, lock-outs or embargoes affecting any of the
trades employed upon the Works or in the preparation, manufacture or transportation
of materials or goods required for the Works and provided the same are not due to any
unreasonable act or default of the Contractor or of any subcontractor. Provided that
this event shall only apply if the industrial action by workmen, strike, lock-out or
embargo causing the delay is in Singapore.

(d) One or more of the “excepted risks” referred to in Clause 25.2.

(e) Compliance with the requirements of any law, regulation, by-law or public authority
or public service company as stipulated in Clause 7.1.

(f) Fire, storm, lightning, high winds, earthquake or flooding.

(g) Ordering of test by the Superintending Officer which is not provided by the Contract
pursuant to Clause 10.4 and the uncovering or making openings for inspection of any
work pursuant to Clause 10.6, unless the test or inspection showed that the Plant,
materials, goods or workmanship had not been in accordance with the provisions of
the Contract.

(h) The issue of any instruction for a variation.

(i) The issue of an instruction by the Superintending Officer in relation to a Provisional


Sum Item but only if and to the extent that such instruction gives rise to a variation of
the work described under the Provisional Sum Item.

(j) Failure of the Employer to give possession of the Site or any part of the Site to the
Contractor in as required by Clause 12.2.

(k) Subject to Clause 13.1(2) an instruction by the Superintending Officer to suspend any
work.

(l) The Contractor not having received from the Superintending Officer within a
reasonable time necessary Drawings, instructions or other information in regard to the
Works for which notice has been given by the Contractor in accordance with Clause
3.4.

(m) Acts or omissions of other contractors engaged by the Employer in executing work not
forming part of the Contract.

(n) Any act of prevention or breach of contract by the Employer not mentioned in this
Clause.

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(o) Any search instructed by the Superintending Officer under Clause 18.4 and such
search reveals any defect, shrinkage or other fault for which the Contractor is not
liable.

(p) Adverse physical conditions which fall within Clause 5.2.

(q) Any other ground for extension of time expressly mentioned in the Contract and not
mentioned in this Clause 14.2.

Provided always that the Contractor shall not be entitled to any extension of time where the
instructions, or acts of the Employer or the Superintending Officer are necessitated by or
intended to cure any default of or breach of Contract by the Contractor and such disentitlement
shall not set the Time for Completion at large.

14.3 Notice

(1) If the Contractor is of the opinion that the progress or completion of the Works is or
will be or has been delayed by any of the events stated in Clause 14.2, he shall
forthwith notify the Superintending Officer in writing of such event and shall in any
case do so within 60 days of the occurrence of such event. If the Contractor is of the
opinion that the event is one which entitles him to an extension of time under Clause
14.2, he shall in that notice and in any case not later than the 60 day period set out
above inform the Superintending Officer, together with the appropriate Contract
references, of the reasons why there will or may be delay to the completion of the
Works or any part or section of the Works, the length of the delay and of the extension
of time required, and the effect of the event on the programme accepted under Clause
9. Both the submission of a notice in writing and of the further information within the
60 day period set out above shall be conditions precedent to any entitlement to an
extension of time. Subject also to compliance with Clause 14.3(2) hereof, the
Superintending Officer shall notify the Contractor in writing within 60 days of the
receipt of the notice in writing whether in his opinion the event is one which does or
might entitle the Contractor to an extension of time.

(2) If the Superintending Officer is of the opinion that the notice given by the Contractor
or the accompanying references or reasons are insufficient to enable him to decide on
the Contractor’s application, the Superintending Officer may require the Contractor to
provide within 14 days or such other period as may be required by the Superintending
Officer such further particulars concerning any event and the circumstances of the
delay, the measures planned and/or taken to prevent or minimise delay and any further
information which the Superintending Officer may reasonably require.

(3) When the Superintending Officer has received sufficient information to enable him to
decide the Contractor’s application, he shall, within a reasonable time, make in writing
to the Contractor such extension of time, if any, of the whole or any phase or part of
the Works (as the case may be) as may in his opinion be fair, reasonable and necessary
for the completion of the Works. The Superintending Officer shall take into account
the effect, or extent, of any work omitted under the Contract and shall also take into
account whether the event in question is one which will delay completion of the
Works. The Superintending Officer shall also take into account any delays which may
operate concurrently with the delay due to the event or events in question and which
are due to acts or default on the part of the Contractor.

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(4) Provided that the Contractor shall have complied with the requirements of Clause
14.3(1), if the Contractor shall not have provided the Superintending Officer with
sufficient information to enable him to decide the Contractor’s application, the
Superintending Officer may nevertheless make in writing to the Contractor such
extension of time of the whole or any phase or part of the Works (as the case may be)
as may in his opinion appear to be fair, reasonable and necessary for completion of the
Works on the information available to him, taking into account all the matters set out
in Clause 14.3(3).

(5) Provided that the Contractor shall have complied with the requirements of Clause
14.3(1), if the Contractor is dissatisfied with any extension of time made or not made
by the Superintending Officer and shall dispute it, he shall not in any reference to the
Superintending Officer or to any arbitrator pursuant to Clause 35 or otherwise (or to
any other tribunal) claim a greater extension of time than that notified pursuant to
Clause 14.3(1) or advance new or additional grounds not submitted to the
Superintending Officer before he made his decision, nor shall the Superintending
Officer or the arbitrator (or any other tribunal) in considering the dispute make a
decision taking into account information which was not available to the
Superintending Officer at the time when the Superintending Officer made his original
decision to make or not to make an extension of time.

15 EXPEDITING PROGRESS OF WORKS

15.1 Notification to Expedite

If for any reason which does not entitle the Contractor to an extension of time, the rate of
progress of the Works or any phase or part of the Works is at any time, in the opinion of the
Superintending Officer, too slow to achieve completion by the Time for Completion of the
Works or the relevant phase or part of the Works, the Superintending Officer shall notify in
writing the Contractor accordingly. The Contractor shall thereupon take such steps as are
necessary to expedite progress and to complete the Works or the relevant phase or part of the
Works in accordance with the Contract. Such steps shall include, if required by the
Superintending Officer, the preparation of a revised or modified programme for acceptance
pursuant to Clause 9. Unless the Superintending Officer shall issue an instruction for variation
as described in Clause 19.1(f), the Contractor shall not be entitled to any additional payment
whatsoever for taking any of the steps referred to herein.

15.2 Work to Expedite Progress

If, as a result of any notice given by the Superintending Officer under Clause 15.1, the
Contractor considers that it is necessary to do any work at night or on Sundays or on public
holidays, he shall be entitled to seek the consent of the Superintending Officer so to do, which
consent shall not be unreasonably withheld.

16 LIQUIDATED DAMAGES

16.1 Payment by the Contractor

(1) If the Works shall not have been substantially completed within the Time for
Completion or any extended time made pursuant to Clause 14, the Contractor shall
pay or allow to the Employer liquidated damages calculated at the rate or rates stated
in the Appendix hereto for the period during which the Works shall so remain
incomplete and the Employer may recover the amount of such liquidated damages
from the Contractor. The payment or deduction of such damages shall not relieve the
Contractor from his obligation to complete the Works or from any other of his
obligations and liabilities under the Contract.

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(2) The provisions of Clause 16 shall apply mutatis mutandis to any phase or part of the
Works for which a separate rate of liquidated damages is stated in the Appendix
hereto.

16.2 Reduction of Liquidated Damages

If, before the Time for Completion has expired, the Superintending Officer has issued a
Certificate of Substantial Completion in respect of any part of the Works (or, where
applicable, in respect of any part of any phase or part of the Works set out in the Appendix),
the Contractor shall nevertheless remain liable for liquidated damages for any failure to
complete the remainder of the Works by the Time for Completion but such liquidated damages
in respect of the remainder of the Works (or, where applicable, in respect of the remainder of
that particular phase or part of the Works) shall, for any period of delay after the date stated in
such Certificate of Substantial Completion, and in the absence of alternative provisions in the
Contract, be reduced in the proportion which the value of the part so certified bears to the
value of the whole of the Works (or, where applicable, of that particular phase or part of the
Works).

16.3 Employer’s Common Law Rights for Damages

In the event that the Employer for whatever reason shall not be entitled in law to recover
liquidated damages, the Employer shall remain entitled to recover such loss, expense, costs or
damages as he would have been entitled under common law as if the provisions in this Clause
relating to the payment of liquidated damages had not formed part of the Contract. The
Contractor’s liability to pay the Employer such loss, expense, costs or damages shall not be
limited in any way whatsoever by the amount of liquidated damages for which he might
otherwise have been liable.

16.4 Extension of Time During Delay Period

For the avoidance of doubt, if the Contractor shall have failed to complete the Works or any
phase or part of the Works by the Time for Completion and the execution of the Works
thereafter is delayed by any of the events set out in Clause 14.2(g) to (q) inclusive, the
Employer’s right to liquidated damages shall not be affected thereby but, subject to
compliance by the Contractor with Clause 14, the Superintending Officer shall grant an
extension of time pursuant to Clause 14. Such extension of time shall be added to the Time for
Completion of the Works (or of the relevant phase or part).

17 SUBSTANTIAL COMPLETION

17.1 Certificate of Substantial Completion

(1) When the Contractor considers that the whole of the Works have been substantially
completed, he may give notice in writing to that effect to the Superintending Officer
accompanied by an undertaking, in the prescribed form, to complete any outstanding
work during the Defects Liability Period. Within 21 days of the receipt of such notice
and undertaking the Superintending Officer shall either:

(a) issue to the Contractor a Certificate of Substantial Completion, with a copy to


the Employer, stating the date on which in his opinion the Works were
substantially completed in accordance with the Contract; or

(b) give instructions in writing to the Contractor specifying all the works which in
his opinion are required to be done by the Contractor before the issue of a
Certificate of Substantial Completion.

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Provided that the Superintending Officer may, at his discretion and without the receipt
of any notice or undertaking from the Contractor, exercise either of the powers given
to him in Clause 17.1(1)(a) and Clause 17.1(1)(b).

(2) If the Superintending Officer has given instructions pursuant to Clause 17.1(1)(b):

(a) he may notify the Contractor of any defects in the Works affecting substantial
completion that may appear after such instructions and before completion of
the works specified therein and such defects shall comprise part of the said
instructions; and

(b) the Contractor shall not be entitled to be issued the Certificate of Substantial
Completion until the works specified in the said instructions have been
completed to the satisfaction of the Superintending Officer.

17.2 Access for Remedial Work

Upon the Date of Substantial Completion, the Contractor’s licence to occupy the Site for the
purposes of carrying out the Works shall terminate save that the Contractor shall be permitted
to re-enter the Site to carry out any outstanding work (and the rectification of defects during
the Defects Liability Period) with due expedition and without delay, upon giving reasonable
notice in writing to the Superintending Officer.

17.3 Completion of Phase or Part

(1) In accordance with the procedure set out in Clause 17.1, the Contractor may request
the Superintending Officer to issue a Certificate of Substantial Completion in respect
of:

(a) any phase or part of the Works in respect of which a separate Time for
Completion is provided in the Appendix;

(b) any substantial part of the Works which has been both completed to the
satisfaction of the Superintending Officer and, otherwise than as provided for
in the Contract, occupied or used by the Employer; or

(c) any part of the Works in respect of which the Superintending Officer has
issued an instruction for early occupation or use by the Employer prior to the
completion of the whole of the Works (where such prior occupation or use is
not provided for in the Contract or has not been agreed by the Contractor).

(2) The provisions of Clause 17.1 shall apply mutatis mutandis to the provisions of Clause
17.3(1).

18 DEFECTS

18.1 Completion of Outstanding Works and Remedying Defects

To the intent that the Works shall, at or before the expiration of the Defects Liability Period,
be in the condition required by the Contract and shall meet all other requirements of the
Contract, the Contractor:

(a) shall complete with due expedition and without delay any work outstanding at the
Date or Dates of Substantial Completion (whether or not the subject of any
undertaking to do so) and as may be instructed by the Superintending Officer; and

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(b) shall execute all such works of amendment, reconstruction and remedying defects,
shrinkages or such other faults of whatever nature as the Superintending Officer may
at any time during the Defects Liability Period or within 14 days after its expiration
instruct the Contractor to execute.

For the avoidance of doubt, the obligation of the Contractor to comply with this Clause shall
not in any way prejudice the Employer’s rights under the provisions of any guarantee relating
to the Works or any phase or part of the Works required by the Specifications or provided by
any supplier or sub-contractor.

18.2 Cost of Remedying Defects

All work referred to in Clause 18.1(b) shall be executed by the Contractor at his own cost if
the necessity for such work is in the opinion of the Superintending Officer, due to:

(a) the fact that it is a Defect; or

(b) where the Contractor is responsible for the design of the whole or any part of the
Permanent Works, any fault in such design; or

(c) the neglect or failure on the part of the Contractor to comply with any obligation,
expressed or implied, on the Contractor’s part under the Contract.

If the necessity for the execution of any work is other than one of the causes set out in
paragraphs (a) - (c) above, subject to compliance by the Contractor with Clause 23, such work
shall be valued in accordance with Clause 20 as if it were a variation ordered under Clause 19
but shall not otherwise be construed as a variation to the Works for the purposes of Clause 19
or 20.

18.3 Diminution in Value of Works

If any Defect which the Contractor would otherwise have been liable to rectify at his own cost
is such that in the opinion of the Superintending Officer it will be impracticable or
inconvenient to rectify, the Superintending Officer shall ascertain the diminution in the value
of the Works to the Employer due to such Defect and the amount of the diminution shall be
recoverable by the Employer.

18.4 Contractor to Search

If any Defect, shrinkage or other fault in the Works appears at any time from the
commencement of Works to the end of the Defects Liability Period, the Superintending
Officer may instruct the Contractor to search under the direction of the Superintending Officer
for the cause of the Defect, shrinkage or other fault. If such Defect, shrinkage or other fault is
one for which the Contractor is liable under the Contract or the necessity for such a search is
caused by the Contractor or arises from some default by the Contractor, the cost of the work
carried out in searching as aforesaid shall be borne by the Contractor and the Contractor shall
in such case remedy such Defect, shrinkage or other fault at his own cost.

18.5 Liability at Common Law

The provisions of Clause 18.1 to 18.4 shall not derogate in any way whatsoever from the
Contractor’s liability under the Contract or otherwise for defective work at common law.

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19 VARIATIONS TO THE WORKS

19.1 Variations

The term “variation” shall mean any change in the original Contract intention as deduced from
the Contract as a whole describing or defining the Works to be carried out and shall include
but is not restricted to:

(a) an increase or decrease in the quantity of any part of the Works;

(b) an addition to or omission from the Works;

(c) a change in the character, quality or nature of any part of the Works;

(d) a change in the levels, lines, positions and dimensions of any part of the Works;

(e) the demolition of or removal of any part of the Works no longer desired by the
Employer or the Superintending Officer;

(f) a requirement to complete the Works or any phase or part by a date earlier than the
relevant Time for Completion.

For the avoidance of doubt the term “variation” shall include any changes as aforesaid which
may be designed to alter the use to which the Works will be put, but shall exclude any
instruction (which would otherwise be a variation) which has arisen due to or is necessitated
by or is intended to cure any default of or breach of contract by the Contractor.

19.2 Power to Order Variations

The Superintending Officer may at any time issue an instruction in writing requiring a
variation. If or to the extent that an instruction does not state that it requires a variation but the
Contractor considers that it does require a variation, the Contractor shall within 14 days from
the date of receipt of the instruction notify in writing the Superintending Officer who may, if
he thinks fit, within 14 days from the date of receipt of the Contractor’s notification, confirm,
modify, rescind or contradict in writing the instruction and the Contractor shall then comply
forthwith.

19.3 Submission of Quotations

The Superintending Officer may, before issuing an instruction for any variation, require the
Contractor to submit a quotation for any proposed variation and the Contractor shall be
obliged to submit such quotation in writing at his own cost. The Superintending Officer may
before or after issuing an instruction under Clause 19.2 accept in writing the Contractor’s
quotation and the provisions of Clause 20 shall not apply to the valuation of that variation nor
shall the Contractor be entitled to any Loss and Expense in respect of that instruction or any
other compensation, damages or other amount whatsoever other than a valuation made in
accordance with the accepted quotation. An instruction requiring a variation shall not be
treated as an acceptance of any quotation.

19.4 Alternative Proposals by Contractor

(1) The Contractor may submit in writing to the Employer, at his own cost, a detailed
proposal for variations to the Works, which is likely to offer significant benefits
(including long-term or life-cycle cost benefits) to the Employer.

(2) If the Employer requires it, and if the Contractor wants to proceed with the proposal,
the Contractor shall provide (at no cost to the Employer) a report on the details,
implications and benefits of the proposal including the estimated cost savings that
would arise from any proposed variations.

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(3) The proposal shall not include anything which might adversely affect or compromise
the safety or quality of construction or operation or maintenance of the Works or
which may be inconsistent with any provision of this Contract or the purpose and
intent of the Works.

(4) The Employer shall consider the Contractor’s proposal, but is not bound to accept any
proposal or proposed variations. No claim by the Contractor will arise out of the
Employer’s failure to accept any proposal or proposed variations.

(5) The Employer may accept all or any part of the proposal subject to such conditions or
modifications as it thinks fit. If such conditions or modifications are accepted by the
Contractor, the Superintending Officer shall issue an instruction in writing requiring
all or any part of the proposed variations to be carried out and the Contractor shall
comply with such instructions.

(6) The Contractor’s responsibilities and obligations in respect of the Works under the
Contract shall continue to apply notwithstanding the Employer’s acceptance of the
whole or any part of the Contractor’s proposal.

(7) The actual cost savings (being the actual reduction in the amount of direct relevant
costs of labour, plant, materials or goods) arising from any proposed variations
accepted by the Employer under this Clause shall be shared by the Contractor and the
Employer in equal proportions. The Contractor shall be entitled to claim payment of
half the amount of the actual cost savings in accordance with Clause 32.

(8) For the avoidance of doubt, Clause 20.1 and 20.2 shall apply to the valuation of the
variations carried out pursuant to Clause 19.4(5) for the purposes of determining the
actual cost savings arising from the variations. The Contractor shall not be entitled to
any Loss and Expense in respect of an instruction or any other compensation, damages
or other amount whatsoever other than a valuation determined in accordance with
Clause 20.1 and 20.2.

(9) The Employer shall bear his own costs and expenses incurred in reviewing and
assessing the proposal received.

20 VALUATION OF VARIATIONS

20.1 Valuation Methods

Subject to Clause 19.3 and Clause 20.4, all variations shall be valued as follows:

(a) Where the varied work is of a similar character to, is executed under similar conditions
as and does not significantly change the quantity of work described in the Contract,
the Rates for the Works as set out in the Contract shall determine the valuation; or

(b) Where the varied work is of similar character to work described in the Contract but is
not executed under similar conditions of such work described in the Contract or
involves significant changes in the quantity of such work described in the Contract,
the Rates for the Works as set out in the Contract shall be the basis for determining the
valuation but with a fair allowance for any differences in such conditions and/or
quantity; or

(c) Where (a) and (b) above do not apply, then by measurement and valuation at fair
market rates and prices;

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(d) Where none of the above methods is applicable or appropriate in the circumstances of
the particular varied work, then the valuation shall be based on the cost of necessary
Plant, materials or goods, labour and any additional equipment necessary for the
execution of the varied work plus 15 per cent. This percentage shall be deemed to
compensate adequately the Contractor in respect of all supervision, the use of
Construction Equipment, overheads, profit and all other costs or damages incurred in
or connected with the execution of the varied work;

(e) The Rates for the Works as set out in the Contract shall determine the valuation of
items omitted; provided that if omissions vary the conditions under which any
remaining items of work are carried out, the values for such remaining items shall be
determined under Clauses 20.1 (b) or (c) or (d) as the case may be.

20.2 Agreement on Valuation

(1) The Contractor shall carry out all variations instructed by the Superintending Officer
pending the valuation of the variations by the Superintending Officer.

(2) (a) Upon progressive completion of the variation works, the Contractor may
submit his claim for the variations in his Payment Claims in accordance with
Clause 32.1. The Superintending Officer shall certify such amounts as are due
to the Contractor for the variations in accordance with Clause 32.2.

(b) When the Contractor considers that the respective variation works have been
substantially completed, he may give notice in writing to that effect to the
Superintending Officer. The Superintending Officer shall either:

(i) certify in writing that the variation works in his opinion were
substantially completed; or

(ii) give instructions in writing specifying the works which in his opinion
are required to be done.

Provided that the Superintending Officer may, at his discretion and without
the receipt of any notice from the Contractor, exercise either Clause
20.2(2)(b)(i) or Clause 20.2(2)(b)(ii).

(c) The Contractor shall, within 30 days from the date of the Superintending
Officer’s certification, submit to the Superintending Officer a valuation of the
said variations (with such details and particulars including invoices and
receipts as the Superintending Officer may require for the purpose of valuing
the said variations) based on the completed variation works. Thereafter, the
Contractor shall include his claim for the said valuations in the next Payment
Claim to be submitted by the Contractor under Clause 32.1.

(d) The Superintending Officer shall, within 60 days from the date of his
certification, value the total amount due for the said variations based on the
completed variation works and shall notify the Contractor in writing of the
value of the variations. Thereafter, the Superintending Officer shall certify the
amounts due to the Contractor for the said variations in the next Payment
Certificate to be issued by the Superintending Officer under Clause 32.2.

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(e) The Contractor shall, within 30 days of the receipt of the Superintending
Officer’s notice of the value of the variations, give notice of any disagreement
in writing to the Superintending Officer and shall at the same time set out the
valuation which he considers should have been made, giving full details and
particulars and the appropriate Contract references. If the Contractor does not
give notice of his disagreement with the valuation of the Superintending
Officer within 30 days of receipt of the Superintending Officer’s valuation, he
shall be deemed to have accepted the valuation and such valuation shall be
final and binding on the Contractor and shall not thereafter be disputed or
questioned by the Contractor in any way whatsoever.

(f) Following receipt of the Contractor’s notice of disagreement, the


Superintending Officer may amend the whole or any part of any valuation
previously made and make the necessary adjustment in the next Payment
Certificate.

(g) Any notice of disagreement submitted by the Contractor in accordance with


Clause 20.2(2)(e) which is not dealt with or resolved by the Superintending
Officer’s amendment in the next Payment Certificate shall be reconsidered by
the Superintending Officer when the Superintending Officer issues the Interim
Final Account in accordance with Clause 32.5(1) and (2).

20.3 Provisional Sum Items

Where the Contractor is instructed by the Superintending Officer to execute or provide some
or all of the Plant, materials, goods or work described as a Provisional Sum Item, the valuation
of that instruction shall be made in accordance with Clause 20.1 (unless otherwise provided in
the Contract).

20.4 Daywork

(1) The Superintending Officer may, if in his opinion it is necessary and desirable, order
in writing that any work to be carried out as a result of an instruction ordered under
Clause 19.2 shall be executed on a daywork basis.

(2) The Contractor shall then be paid for such work at the daywork rates set out in the
Contract or if no such rates are available as provided, then at the rates determined by
Superintending Officer as prevailing when the work is actually carried out.

(3) It is a condition precedent to payment that the Contractor shall submit to the
Superintending Officer the daywork sheets specifying the number of man-hours spent
on the work on a daily basis, and statement showing any Plant, Construction
Equipment, material and goods necessary in respect of all works executed on a
daywork basis for verification within 3 days after the work has been executed.

(4) The Contractor shall inform the Superintending Officer in advance whenever he
proposes to carry out daywork.

21 MEASUREMENT

21.1 Contractor to Attend Measurement

The Superintending Officer shall give reasonable notice to the Contractor when he requires
any part of the Works to be measured. The Contractor shall then:

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(a) forthwith attend or send a properly qualified and authorised representative to take
jointly with the Superintending Officer any measurements of the Works that may be
necessary for the purposes of any valuation, including the valuation of any variation;
and

(b) supply documents and information necessary for the taking or calculation of any
measurement and all other particulars that may be reasonably required by the
Superintending Officer for the purposes of establishing an agreed measurement.

21.2 Contractor to Provide Assistance

The Contractor shall at his own cost provide the Superintending Officer with assistance and
with every appliance necessary for measuring the Works.

21.3 Record of Measurements

Any measurements taken jointly shall be recorded at the time and signed by the representative
of the Contractor and the Superintending Officer. If the Contractor does not attend or send a
representative to take the measurements jointly with the Superintending Officer, the
measurements made by the Superintending Officer notified in writing to the Contractor shall
be taken to be correct and shall be final and binding on the Contractor.

21.4 Failure to Agree Measurements

If the Contractor attends or sends a representative but there is no agreement on the whole or
part of the measurements, the Contractor shall notify in writing the Superintending Officer
within 14 days of the date upon which the measurements were taken of the respects in which
the measurements taken by the Superintending Officer are not accepted as correct. Such
notice shall set out in detail the documents and other information in justification.

22 CLAIMS FOR LOSS AND EXPENSE

22.1 Reasons for Loss and Expense

The Contractor shall be entitled to recover as Loss and Expense sustained or incurred by him
and for which he would not be reimbursed by any other provision of the Contract, all loss,
expense, costs or damages of whatsoever nature and howsoever arising as a result of the
regular progress and/or completion of the Works or any phase or part of the Works having
been disrupted, prolonged or otherwise materially affected by:

(a) the issue of an instruction for a variation;

(b) the issue of an instruction in relation to Provisional Sum Items but only if and to the
extent that such instruction on a true interpretation of the Contract as a whole,
constitutes a variation in kind or extent, from the Works described under the
Provisional Sum Items;

(c) failure of the Employer to give possession of the Site to the Contractor in accordance
with Clause 12.2;

(d) the suspension by the Superintending Officer of any work for a cause which entitles
the Contractor to recover Loss and Expense;

(e) the Contractor not having received from the Superintending Officer within a
reasonable time necessary Drawings, instructions or other information in regard to the
Works for which notice in writing had been given by the Contractor in accordance
with Clause 3.4;

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(f) the issue of an instruction by the Superintending Officer under any of Clauses 3.6, 4.4,
10.4, 10.6, 18.2, 18.4 and 25.1(3) but only if the Employer is liable to pay to the
Contractor any Loss and Expense by reason of such an instruction;

(g) unforeseeable adverse physical conditions of which notice in writing has been given
pursuant to Clause 5.2;

(h) acts or omissions of other contractors engaged by the Employer in executing work not
forming part of this Contract; or

(i) any act of prevention or breach of contract by the Employer not mentioned in this
Clause.

Provided always that the Contractor shall not be entitled to any such Loss and Expense where
it arises from or is necessitated by or is intended to cure any default or breach of contract by
the Contractor.

22.2 Sufficiency of Loss and Expense

The Contractor shall not be entitled to recover any loss, expense, costs or damage whatsoever
resulting from any disruption, prolongation or other material effect to the regular progress or
completion of the Works or any phase or part of the Works except in accordance with the
express provisions of the Contract.

23 PROCEDURE FOR CLAIMS

23.1 Notice of Claims

(1) Whenever the Contractor intends to claim any payment pursuant to the Contract (other
than Clause 20), he shall give notice in writing of his intention to do so to the
Superintending Officer within 60 days after the event giving rise to his claim has first
arisen and shall comply with Clause 23.2 to 23.4. The notice shall specify the event
and its consequences, and the giving of such a notice shall be a condition precedent to
any entitlement that the Contractor may have.

(2) The fact that the Contractor does not or may not know whether the valuation of a
variation has been agreed or whether the Superintending Officer has decided to
include in any certificate any amount in respect of any claim shall not excuse the
Contractor from the requirement to give a notice under Clause 23.1(1).

23.2 Contemporary Records

Upon the happening of any event in respect of which the Contractor may intend to make a
claim, the Contractor shall keep such contemporary records as may reasonably be necessary to
support any claim he may subsequently wish to make. Without necessarily admitting the
Employer’s liability, the Superintending Officer may, on receipt of a notice under Clause 23.1,
inspect such contemporary records and may instruct the Contractor to keep any further
contemporary records which he considers to be material to the claim of which notice has been
given. The Contractor shall permit the Superintending Officer to inspect all records kept
pursuant to this Clause and shall supply him with copies of such records as and when the
Superintending Officer so instructs.

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23.3 Substantiation of Claims

Within 30 days, or such other time as may be agreed by the Superintending Officer, of giving
notice under Clause 23.1, the Contractor shall send to the Superintending Officer an account in
writing giving detailed particulars of the amount claimed and the grounds upon which the
claim is based, together with particulars of any claim for extension of time made pursuant to
Clause 14 and for any Loss and Expense associated therewith (where applicable). Where the
event giving rise to the claim has a continuing effect, such account shall be considered to be an
interim account and the Contractor shall, at such intervals as the Superintending Officer may
require, send such further interim accounts giving the accumulated amount of the claims and
any further grounds upon which they are based. Within 30 days of the end of the effects
resulting from the event, the Contractor shall send to the Superintending Officer a final
account of the claims. The obligation to give particulars of any claim for an extension of time
under this Clause shall not release the Contractor from his obligations under Clause 14.3(1).

23.4 Access to Contractor’s Books and Documents

In order to verify any claim submitted under this Clause, the Superintending Officer shall have
access to all books, documents, papers or records in the possession, custody or control of the
Contractor that are material to the claim for the purpose of making audit, examination,
excerpts and transcriptions. Such books, documents, papers or records shall remain available
in accordance with this Clause until all claims, arbitration or litigation have been finally
disposed of. The Contractor shall use his best endeavours to ensure that all books, documents,
papers or records in the possession custody or power of a subcontractor or supplier where
material to the claim are similarly made available.

23.5 Payment of Claims

(1) Subject to compliance with Clause 23.1 to Clause 23.4, the Contractor shall be entitled
to have included in any payment certified by the Superintending Officer pursuant to
Clause 32 such amount in respect of any claim as the Superintending Officer may
consider due to the Contractor.

(2) If the Contractor fails to supply the Superintending Officer with sufficient
substantiation of the whole of any amount claimed, the Contractor shall only be
entitled to payment in respect of such part of the amount as may have been
substantiated to the satisfaction of the Superintending Officer.

(3) The inclusion by the Superintending Officer in any certificate under Clause 32 of any
amount in respect of any claim or any payment by the Employer in respect of any such
amount shall not:

(a) prejudice the Employer’s right to dispute the Contractor’s entitlement to the
amount certified either in principle, or as to its quantification or from referring
such dispute for decision pursuant to Clause 35; and

(b) be taken into account by the Superintending Officer or any arbitrator (or other
tribunal) in deciding whether the Contractor shall repay to the Employer the
whole or any part of such amount.

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23.6 Failure to Comply

If the Contractor shall have complied with Clause 23.1 but shall not have complied fully or at
all with any of the provisions of Clause 23.2 to 23.4, the Superintending Officer shall be
entitled to make such assessment, valuation or opinion as shall be reasonable on the basis of
the information available to him. If the Contractor should dispute such an assessment,
valuation or opinion, such dispute shall be decided by the Superintending Officer or the
arbitrator (or other tribunal) on the basis only of the information available to the
Superintending Officer at the time when he made his assessment, valuation or opinion and no
account shall be taken of any information which the Contractor did not supply to the
Superintending Officer, whether or not he could have done so.

24 CONSTRUCTION EQUIPMENT, TEMPORARY WORKS, MATERIALS AND


GOODS

24.1 Exclusive Use for the Works

All Construction Equipment, Temporary Works, Plant, materials and goods provided by the
Contractor shall, when brought on to the Site, be deemed to be exclusively intended for the
execution of the Works and the Contractor shall not remove the same or any part of such
Construction Equipment, Temporary Works, Plant, materials or goods except for the purpose
of moving it from one part of the Site to another, without the consent in writing of the
Superintending Officer. Provided that consent shall not be required for vehicles engaged in
transporting any staff labour, Construction Equipment, Temporary Works, Plant, materials or
goods to and from the Site.

24.2 Vesting

All Construction Equipment, Temporary Works, Plant, materials and goods owned by the
Contractor, or by any company in which the Contractor has a controlling interest, shall, when
on the Site, be deemed to be the property of the Employer. Provided always that the vesting of
such property in the Employer shall not prejudice the right of the Contractor to the sole use of
the said Construction Equipment, Temporary Works, Plant, materials and goods for the
purpose of the Works nor shall it affect the Contractor’s responsibility to operate and maintain
the same under the provisions of the Contract.

24.3 Employer not Liable for Damage

The Employer shall not at any time be liable for loss or damage to any of the said Construction
Equipment, Temporary Works, materials or goods nor for any loss, expense, costs, damages,
liability or claim arising from the presence or use of the said Construction Equipment,
Temporary Works, materials or goods.

24.4 Conditions for Hire of Construction Equipment

With a view to securing, in the event of termination under Clause 31, the continued
availability, for the purpose of executing the Works, of any hired Construction Equipment, the
Contractor shall not bring on to the Site any hired Construction Equipment unless there is an
agreement for the hire of such Construction Equipment (which agreement shall be deemed not
to include an agreement for hire purchase) which contains a provision that the owner of such
Construction Equipment will, on request in writing made by the Employer within 7 days after
the date on which the termination has become effective, and on the Employer undertaking to
pay all hire charges in respect of such Construction Equipment from such date, hire such
Construction Equipment 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 of such
Construction Equipment by any other contractor employed by Employer for the purpose of
executing and completing the Works and remedying any Defects therein under the terms of
Clause 31.
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24.5 Revesting and Removal

Upon the removal, with the consent of the Superintending Officer under Clause 24.1, of any
such Construction Equipment, Temporary Works, materials or goods as have been deemed to
have become the property of the Employer under Clause 24.2, the property therein shall be
deemed to revest in the Contractor and, upon completion of the Works and the making good of
all Defects, the property in the remainder of such Construction Equipment, Temporary Works
and materials shall, subject to Clause 31, be deemed to revest in the Contractor.

24.6 Incorporation of Clause in Subcontracts

The Contractor shall, where entering into any subcontract for the execution of any part of the
Works, incorporate in such subcontract (by reference or otherwise) the provisions of this
Clause in relation to the Construction Equipment, Temporary Works, materials or goods
brought on to the Site by the subcontractor.

25 GENERAL RESPONSIBILITIES

25.1 Care of the Works

(1) From the date of commencement of the Works until 14 days after the Date of
Substantial Completion (or the latest date if more than one) certified by the
Superintending Officer pursuant to Clause 17, the Contractor shall take full
responsibility for the care of the whole Works or of any phase or part of the Works
which has not been substantially completed as well as any Plant, materials, or goods
intended for or connected with the Works and all Construction Equipment, Temporary
Works, materials, goods, structures, other works, workers’ quarters on the Site and any
other things of whatsoever nature required by the Contractor for the purposes of the
Contract.

(2) The Contractor shall take full responsibility for the care of any outstanding work
which he shall have undertaken or shall be obliged to complete during the Defects
Liability Period until such outstanding work has been completed to the satisfaction of
the Superintending Officer.

(3) (a) In the event of any damage, loss or injury to the Works or parts of the Works
from any cause whatsoever (except the “excepted risks” as defined in Clause
25.2), the Contractor shall, at his own cost, make good with all reasonable
expedition such damage, loss or injury to the satisfaction of the
Superintending Officer and shall notwithstanding such damage, loss or injury
proceed with the construction and completion of the Works in all respects in
accordance with the Contract and the Superintending Officer’s instructions.

(b) In the event of any damage, loss or injury to the Works happening from any of
the “excepted risks”, the Contractor shall, if and to the extent required by any
instruction in writing of the Superintending Officer, rectify and make good the
same. Subject to compliance by the Contractor with Clause 23, the
Superintending Officer shall certify pursuant to Clause 32 any Loss and
Expense incurred by the Contractor in complying with the instructions of the
Superintending Officer.

(c) In the event of damage, loss or injury to the Works happening from an
excepted risk and also from a risk for which the Contractor is responsible
under Clause 25.1(1) and 25.1(2), the Superintending Officer shall, when
certifying the amount, make a fair apportionment of the costs so that the
Employer shall not be obliged to pay costs for which the Contractor was
responsible under the Contract.

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25.2 Excepted Risks

The “excepted risks” are:

(a) insofar as they occur in Singapore and directly affect the execution of the Works:

(i) war and hostilities (whether war be declared or not), invasion, act of foreign
enemies;

(ii) rebellion, revolution, insurrection or military or usurped power or civil war;

(iii) riot, commotion or disorder, unless solely restricted to employees of the


Contractor or of his sub-contractors and arising from the conduct of the
Works;

(iv) ionising radiations, or contamination by radio activity from any nuclear fuel,
or from any nuclear waste from the combustion of nuclear fuel, radioactive,
toxic, explosive, or other hazardous properties of any explosive, nuclear
assembly or nuclear component;

(v) pressure waves caused by aircraft or other aerial devices travelling at sonic or
supersonic speeds;

(b) the use or occupation of the Employer of any part of the Works, except as may be
expressly provided in the Contract;

(c) the design of the Works, other than any part of the design provided by the Contractor
or for which the Contractor is responsible under the Contract.

26 INDEMNITY PROVISIONS

26.1 Injury to Persons

(1) The Contractor shall be liable for and shall indemnify the Employer against any loss,
expense, costs, damages, liability or claim whatsoever in respect of personal injury to
or the death of any person whomsoever arising out of or in the course of or by reason
of the carrying out of the Works, unless the same is shown to be due solely to any
negligent or wilful act of the Employer or of any person for whom the Employer is
responsible.

(2) For the avoidance of doubt, the indemnity provided by the Contractor under Clause
26.1 shall include any damages or compensation payable at common law or under any
statute in respect of or in consequence of any accident, illness or injury to any
workman or other person in the employment of the Contractor or any subcontractor,
save and except an accident, illness or injury resulting solely from any act or default of
the Employer, or of any person for whom the Employer is responsible.

26.2 Damage to Property

Without prejudice to his liabilities in regard to completing the Works under Clause 4.1, the
Contractor shall be liable for and shall indemnify the Employer against any loss, expense,
costs, damages, liability or claim due to injury or damage of any kind to any property real or
personal (including any property of the Employer other than the Works) insofar as such injury
or damage arises out of or in the course of or by reason of the carrying out of the Works,
unless the Contractor proves to the satisfaction of the Superintending Officer that it was not
due to any negligence, omission, breach of contract or default of the Contractor, or of any
person for whom the Contractor is responsible including the Contractor’s servants or agents or
any subcontractors and their servants or agents.
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26.3 Contractor to Rectify Damage

Without prejudice to the provisions of Clause 26.2, where injury or damage of any kind arises
to any property out of or in the course of or by reason of the carrying out of the Works, the
Superintending Officer shall be entitled to instruct the Contractor to rectify any such injury or
damage at any time before the issue of the Final Completion Certificate and the Contractor
shall upon receipt of such an instruction forthwith comply with the same. If the Contractor
later establishes that he would not be liable for such injury or damage by virtue of Clause 26.2
or otherwise, the Superintending Officer’s instruction shall be deemed to have been and shall
be treated as a variation issued pursuant to Clause 19.1 and, notwithstanding the issue of a
Final Account Certificate, shall be entitled to be paid in respect of such variation.

27 INSURANCE FOR PERSONAL INJURY, WORK INJURY COMPENSATION


AND PROPERTY DAMAGE

27.1 The Policies

(1) Without prejudice to his liability to indemnify the Employer under Clause 26, the
Contractor shall, before commencement of any work under the Contract, maintain:

(a) such insurances (subject to any limitations permitted by the Specifications or


other Contract documents) as are necessary to cover the liability of the
Contractor or, as the case may be, of any such subcontractor, in respect of
personal injuries or death arising out of or in the course of or by reason of the
carrying out of the Works or the sub-contract works including any liability of
the Contractor under the Work Injury Compensation Act or any subsequent
modification or re-enactment of such Act; and

(b) such insurances as may be specifically required by the Contract in respect of


injury or damage to property real or personal (other than the Works) arising
out of or in the course of or by reason of the carrying out of the Works and
caused by any negligence, omission, breach of contract or default of the
Contractor, his servants or agents or, as the case may be, of such subcontractor
and his servants or agents. Such insurances shall be subject to such limitations
as to the extent of liability for any one accident as may be set out in the
Appendix hereto.

The Contractor’s insurances shall provide for the Employer’s interests to be noted as
“Principal” (for Work Injury Compensation/Employer’s Liability) or as an “Additional
Insured” with a “cross liability” provision (for Third Party Liability).

(2) Any such insurance as is referred to in Clause 27.1(1) shall be placed with an insurer
approved by the Superintending Officer and the Contractor shall deposit with the
Superintending Officer before the commencement of any work on Site a copy of the
policy or policies of insurance and no later than 14 days thereafter the receipts in
respect of the premiums paid under such policy or policies.

27.2 Damage to Property when Contractor Not Negligent

(1) The Contractor shall, before commencement of any work under the Contract, maintain
in the joint names of the Employer and Contractor such insurances for such amounts
of indemnity as may be specified in the Specifications or other Contract documents in
respect of any loss, expense, costs, damages, liability or claim which the Employer
may incur or sustain due to injury or damage of any kind to property real or personal
(including property of the Employer but not the Works themselves) caused by
collapse, subsidence, vibration, weakening or removal of support or lowering of
ground water arising out of or in the course of or by reason of the carrying out of the
Works except injury or damage:

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(a) caused by any breach of contract, negligence, omission or default of the
Contractor, his servants or agents or of any subcontractor , his servants or
agents or any other person responsible for the provisions of any Plant,
materials, goods or work for the Works;

(b) attributable to any error or omission in the design of the Works (other than
work for the design of which the Contractor is responsible under the
Contract); and

(c) from any of the “excepted risks” as defined in Clause 25.2.

(2) Any such insurance as is referred to in Clause 27.2(1) shall be placed with an insurer
approved by the Superintending Officer and the Contractor shall deposit with the
Superintending Officer before the commencement of any work on Site a copy of the
policy or policies of insurance and no later than 14 days thereafter the receipts in
respect of the premiums paid under such policy or policies.

27.3 Default in Insuring

Should the Contractor or any subcontractor default in taking out or maintaining the insurance
policies as stipulated in Clauses 27.1 and 27.2, the Employer (without prejudice to any other
rights and remedies available) may himself insure against any risk with respect to which the
default has occurred and the amount paid by him in respect of premiums shall be recoverable
from the Contractor.

28 INSURANCE OF THE WORKS

28.1 Risks to be Insured

(1) Without limiting his obligations or responsibilities under Clause 25, the Contractor
shall, before commencement of any work under this Contract, in the joint names of the
Employer and the Contractor, insure against all damage, loss or injury from whatever
cause arising (other than the “excepted risks” as defined in Clause 25.2) for which he
is responsible under the terms of the Contract, the Permanent Works, any Temporary
Works and all unfixed Plant, materials and goods delivered on or adjacent to the Site
for incorporation into the Works (but excluding tools and Construction Equipment
owned or hired by the Contractor or any subcontractors) and any structures or other
works erected on or adjacent to the Site to the value of not less than the Contract Sum
shown in the Letter of Acceptance (plus the percentage stated in the Appendix for
professional fees). The Contractor shall keep such Permanent Works, Temporary
Works, materials, goods, structures or works so insured until 14 days after the Date of
Substantial Completion (or the latest Date of Substantial Completion if more than one)
certified by the Superintending Officer pursuant to Clause 17 and during the Defects
Liability Period for damage, loss or injury arising from a cause occurring prior to the
commencement of the Defects Liability Period.

(2) Such insurance shall be effected with an insurer in terms approved by the
Superintending Officer and the Contractor shall deposit with the Superintending
Officer before the commencement of any work on Site a copy of the policy or policies
of insurance and no later than 14 days thereafter the receipts in respect of the
premiums paid under such policy or policies. Each policy taken out pursuant to
Clause 28 shall provide expressly for the payment in the first place to the Employer of
any insurance moneys due under the policy.

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(3) In the event that the Contractor defaults in taking out or maintaining such insurance
policies as aforesaid, the Employer (without prejudice to any other rights or remedies
available) may himself insure against any risk in respect of which the default has
occurred and any amount paid by him in respect of premiums shall be recoverable
from the Contractor.

(4) Where the Contractor maintains a general policy of insurance with insurers approved
by the Superintending Officer covering contracts as well as the Contract against the
aforesaid insured risks, and in the like terms as to payment of insurance moneys to the
Employer, then the maintenance by the Contractor of such policy shall, if the
Employer’s interest is endorsed thereon, be a discharge of the Contractor’s obligations
to insure in joint names. In such a case, the production by the Contractor, as and when
required by the Superintending Officer, of current certificates of insurance from the
insurers confirming the existence and continuance of the relevant cover required by
this Clause shall be a sufficient discharge of the Contractor’s aforesaid obligation to
deposit the policy or policies and receipts for premiums paid with the Employer. Such
certificates shall state expressly any exclusions or limitations of liability or insurance
excesses under the policy.

28.2 Application of Insurance Moneys

(1) Upon the occurrence of any damage, loss or injury to the Works or unfixed Plant,
materials or goods prior to completion from any cause whatsoever the Contractor shall
(subject to Clause 25.1(3)) proceed immediately to rectify and make good the same
free of charge. Any moneys, if and when received under the policies of insurance
under this Clause shall be paid in the first place to the Employer and then (less only
the aforesaid percentage for professional fees, if any) released to the Contractor by
instalments on the interim certificates of the Superintending Officer.

(2) The amounts released as aforesaid shall be calculated as from the date of receipt of the
moneys in proportion to the extent of the work of restoration, replacement or repair
previously carried out by the Contractor.

29 DAMAGE TO PROPERTY OF EMPLOYER OR GOVERNMENT

29.1 Costs of Making Good Damages Loss or Injury

(1) In the case of damage, loss or injury to property belonging to the Employer (other than
property forming part of the Works) or the government or any other statutory or public
authority (hereinafter called the “relevant authority”) caused by the Contractor or any
person for whom the Contractor is responsible including the Contractor’s servants or
agents or any subcontractors and their servants or agents arising directly or indirectly
out of or in relation to or in connection with the design for which the Contractor is
responsible, construction or completion of the Works under the Contract, the cost of
making good such damage, loss or injury shall be recoverable by the Employer from
the Contractor on presentation of an itemised certificate from the Employer or the
relevant authority specifying the amount payable save and to the extent that the
Contractor may prove to the satisfaction of the Superintending Officer that the amount
or any part of it was not caused by any negligence, omission, breach of contract or
default of the Contractor, or any person for whom the Contractor is responsible as set
out above. The cost of making good such damage, loss or injury shall be recoverable
by the Employer from the Contractor whether or not the Employer is liable in law to
the relevant authority for the damage, loss or injury.

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(2) Provided always that:

(a) Upon payment or deduction of such cost being made, the Employer shall,
where the property does not belong to the Employer, pay the amount to the
relevant authority and furnish to or procure for the Contractor such discharge
or release as the Contractor may reasonably require.

(b) If the cost which the Contractor is liable to pay has not been ascertained at the
time any moneys payable to the Contractor are due for release to him, then the
Employer may withhold a sum which is, in the opinion of the Superintending
Officer, sufficient to cover such liability. As soon as the cost payable by the
Contractor has been ascertained and deducted from the sum retained, the
balance if any shall be released to the Contractor.

(3) Nothing herein shall affect in any way any other remedy at law that the owners of the
property which has suffered damage, loss or injury may have against the Contractor.

30 ASSIGNMENT AND SUBCONTRACTING

30.1 Assignment by Contractor

The Contractor’s performance by himself and his servants of a main contractor’s principal
functions of controlling the Site with his own Site staff, co-ordinating the work of any
subcontractors and ordering of materials and goods for the Works, is of the essence of the
Contract and unless the Employer shall agree in writing, the Contractor shall neither assign his
interests, rights or benefits under the Contract nor transfer his liability nor make arrangements
for the vicarious performance of such functions by any other person nor make arrangements
whereby the execution of the Works is carried out by another person or persons.

30.2 Subcontractors

The Contractor shall ensure that all subcontractors, appointed directly by the Contractor, are
registered with the Building and Construction Authority or other government registration body
at the time of their appointment. Except where expressly provided by the Contract, the
Contractor shall not engage or permit the engagement of any subcontractor without the prior
written consent of the Superintending Officer, which consent shall not be unreasonably
withheld.

31 TERMINATION BY THE EMPLOYER

31.1 Termination for Default

(1) If in the opinion of the Superintending Officer the Contractor:

(a) has abandoned the Contract;

(b) has, without reasonable cause, failed to commence the Works in accordance
with the Contract;

(c) has failed to comply with his obligations under Clause 9 or has failed to
execute the Works in accordance with a programme accepted under Clause 9
whereby the Works or any phase or part will be completed within the Time for
Completion or any extended time or has otherwise failed to proceed with the
Works with due diligence or expedition;

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(d) has persistently failed to remove Plant, materials, goods or work from the Site
or to pull down and replace work following the expiry of 14 days from receipt
by the Contractor of a written notice by the Superintending Officer to the
effect that the Plant, materials, goods or work have been condemned and
rejected by the Superintending Officer;

(e) has acted in breach of Clause 30.1 or 30.2; or

(f) has persistently refused or failed to comply with a written instruction from the
Superintending Officer which the Superintending Officer is empowered to
give under the Contract,

then the Superintending Officer may issue a certificate (called hereafter a


“Termination Certificate”) identifying the nature of the default to the Employer with a
copy to the Contractor at the same time.

(2) If the Contractor:

(a) has committed an act of bankruptcy or becomes bankrupt or insolvent or


makes a composition with creditors or if, being a company, any winding up
order of any kind is made, or a receiver or manager or judicial manager of the
Contractor’s undertaking or assets is appointed, or possession taken or
execution levied by creditors or debenture holders or under a floating charge;

(b) has offered or given or agreed to give to any person, any gift or consideration
of any kind as an inducement or reward for doing or forbearing to do or for
having done or forborne to do any action in relation to the obtaining or
execution of this Contract with the Employer, or for showing or forbearing to
show favour or disfavour to any person in relation to this Contract or any other
Contract with the Employer, or if any of the like acts shall have been done by
any person employed by the Contractor or acting on his behalf (whether with
or without the knowledge of the Contractor), or if in relation to this Contract
or any other contract with the Employer the Contractor or any person
employed by him or acting on his behalf shall have committed any offence
under the Penal Code or the Prevention of Corruption Act or any re-enactment
or modification of such Code or Act or shall have abetted or attempted to
commit such an offence or shall have given any fee or reward the receipt of
which is an offence under the said Acts;

(c) has failed to provide the Security Deposit in accordance with Clause 4.5;

(d) has failed to insure the Works or to deposit insurance policies or receipts for
premiums as required by Clauses 27 and 28;

(e) shall have been issued with a Termination Certificate or a copy thereof and
either:

(i) the default in the Termination Certificate has not been made good
within 7 days; or

(ii) the default has been repeated within 30 days of the Termination
Certificate; or

(iii) any other default such as would entitle the Superintending Officer to
issue a Termination Certificate has been committed by the Contractor
within 30 days of the issue of the original Termination Certificate,

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then the Employer, without prejudice to any other rights and remedies available to
him, may give to the Contractor notice in writing of the termination of the
employment of the Contractor whereupon the Contractor’s employment under the
Contract shall terminate. Upon receipt of the Employer’s notice , the Contractor shall
immediately vacate and surrender possession of the Site to the Employer, leaving all
Construction Equipment, Plant, Temporary Works, temporary buildings, structures,
tools, goods, equipment and unfixed materials upon the Site, other than those which
the Contractor may be specifically directed in writing by the Superintending Officer to
remove.

31.2 Effects of Termination for Default

(1) In the event of the termination of the employment of the Contractor under Clause 31.1,
the Employer or any other contractor appointed by him may use for completion of the
Works any of the Construction Equipment, Plant, Temporary Works, temporary
buildings, structures, tools, goods, equipment and unfixed materials left upon the Site
pursuant to Clause 31.1(2) as the Employer may think proper. Further the Employer
shall have a lien over all of the said Construction Equipment, Plant, Temporary
Works, temporary buildings, structures, tools, goods, equipment and unfixed materials
and may sell any of the same and apply the proceeds of sale in or towards the
satisfaction of any sums due or becoming due to him from the Contractor under the
Contract.

(2) The Superintending Officer shall, as soon as may be practicable after such
repossession of the Site by the Employer pursuant to this Clause, determine what
amount (if any) had, at the time of such repossession been reasonably earned by or
would reasonably accrue to the Contractor in respect of work then actually done by
him under the Contract, the value of any of the unfixed or partially fixed Plant,
materials or goods, the value of any Construction Equipment, Temporary Works,
temporary buildings, structures, tools or equipment and the amount received from any
proceeds of sale.

(3) No sum shall be certified as due to the Contractor nor shall the Employer be liable to
pay to the Contractor any sum (including damages and amounts for which the
Employer was liable at the date of termination) in respect of the Contract until the
expiry of the Defects Liability Period of the whole of the Works and thereafter until
the Superintending Officer has ascertained and certified an amount (called hereafter
“the Employer’s Cost”) representing the total of the cost to the Employer of
completion and remedying of any Defects, damages for delay in completion (if any) as
provided by Clause 31.3 or otherwise and all other expenses incurred by the
Employer. The Contractor shall then be entitled to receive only such sum (if any) as
the Superintending Officer may certify would have been payable to the Contractor
upon due completion of the Works by the Contractor after deducting the Employer’s
Cost. If the Employer’s Cost exceeds the sum which would have been payable to the
Contractor upon due completion by the Contractor, then the Contractor shall, upon
demand, pay to the Employer such excess and such excess shall be deemed a debt due
by the Contractor to the Employer and shall be recoverable accordingly.

31.3 Liquidated Damages after Termination

If the employment of the Contractor has been terminated for default pursuant to Clause 31.1
and completion of the Works or any phase or part by the Employer or by other contractors or
persons appointed by the Employer to complete the Works, phase or part has been delayed
beyond the Time for Completion, the following provisions shall have effect:

(a) The Employer shall be entitled to the same liquidated damages for delay as those
which would have been payable if the Contractor had completed the Works or phase
or part on the actual completion date of the Employer or the other contractors or
persons appointed by the Employer.

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(b) For the purpose of giving effect to the above, the Superintending Officer shall, upon
the completion of the Works or phase or part issue a certificate. Such certificate shall
state the date upon which the Contractor should have completed the Works or phase or
part and shall also state the full period of delay for which the Contractor is responsible
and shall compute the total damages due to the Employer therefor. The certificate
shall give credit for events occurring after the termination of the Contractor’s
employment which would have entitled the Contractor to an extension of time had he
duly executed and completed the Works or phase or part and duly complied with
Clause 14. In assessing the period of delay, the Superintending Officer shall also
reduce the period of delay to the extent that there has been any failure by the Employer
or by any other contractors or persons engaged by the Employer to use due diligence
and expedition in arranging for or completing the remaining parts of the Works or
phase or part.

(c) Upon the issue of a certificate under Clause 31.3(b), the amount of damages certified
by such certificate shall be immediately recoverable by the Employer from the
Contractor.

31.4 Termination Without Default

(1) The Employer may at any time, give the Contractor a written Notice of Termination.
This shall have the effect of immediately terminating the employment of the
Contractor under the Contract and the Contractor shall immediately thereafter vacate
the Site, remove all his Construction Equipment and labour force from the Site and
surrender possession of the Site to the Employer.

(2) In the event of a Notice of Termination under Clause 31.4(1) or where Clause 13.2 is
applicable, the Superintending Officer shall subject to compliance by the Contractor
with Clause 23 certify payment to the Contractor:

(a) for all work executed prior to the date of termination at the Rates for the
Works set out in the Contract including

(i) the amounts payable in respect of any other items shown and
separately priced in the Contract including those for Construction
Equipment, Temporary Works and the like, so far as the work
comprised therein has been carried out or performed, and a proper
proportion of any such items which have been partially carried out or
performed;

(ii) the cost of Plant, materials or goods reasonably ordered for the Works
which have been delivered to the Contractor or of which the
Contractor is legally liable to accept delivery, and where such Plant,
materials or goods will become the property of the Employer upon
such payments made by him; and

(b) any Loss and Expense suffered by the Contractor in connection with or as a
consequence of the termination.

The Superintending Officer shall expeditiously certify the amounts payable to the
Contractor under this Clause, and the Contractor shall provide all reasonable
assistance to the Superintending Officer. In the event that the Contractor does not
submit the necessary information required, the Superintending Officer shall make his
certification on the information available. The amount certified shall be paid by the
Employer less any sums previously paid or due to or recoverable by the Employer
from the Contractor.

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32 PROGRESS PAYMENTS AND FINAL ACCOUNT

32.1 Payment Claims

(1) The Contractor shall submit to the Employer (with a copy to the Superintending
Officer), at monthly intervals (on the day of each month specified by the
Superintending Officer following the month in which the Contract is made), a claim
for payment (hereafter referred to as the “Payment Claim”) in such form as the
Superintending Officer may from time to time prescribe. For the purposes of payment
claims made under this Clause, the Payment Claim shall have the same meaning
ascribed in the Building and Construction Industry Security of Payment Act (hereafter
referred to as the “Act”). The Payment Claim shall be made in compliance with the
requirements of the Act and shall show the amounts (hereafter referred to as the
“Claimed Amount”) to which the Contractor considers himself to be entitled up to the
last day of the monthly interval in question in respect of:

(a) the value of the Permanent Works executed;

(b) any other items shown and separately priced in the Contract including those
for Construction Equipment, Temporary Works and the like;

(c) the value of materials, Plant and goods delivered by the Contractor on the Site
for incorporation in the Permanent Works but not incorporated in such Works;

(d) any other sum to which the Contractor is entitled pursuant to Clause 23.5; and

(e) any amount due to the Contractor under an Option Module.

(2) The Contractor may submit such monthly Payment Claims up to the Superintending
Officer’s issue of the Interim Final Account in Clause 32.5(1) and (2).

32.2 Payment Certificates

(1) Within 14 days of receiving a Payment Claim duly submitted pursuant to Clause 32.1,
the Superintending Officer shall issue a certificate (hereafter referred to as the
“Payment Certificate”) to the Contractor (with a copy to the Employer) showing the
amounts, which may consist of deduction of any sums which have been or may
become due and payable by the Contractor to the Employer under the Contract or
otherwise (hereafter referred to as the “Response Amount”) to which the Contractor is
in his opinion entitled in respect of the Claimed Amount. The Superintending Officer
shall substantiate with reasons in his Payment Certificate if the Response Amount is
less than the Claimed Amount or if payments are withheld. Such Payment Certificate
issued by the Superintending Officer shall comply fully with the requirements for
Payment Response made in contemplation of the Act.

(2) The Payment Certificate issued under Clause 32.2(1) shall be deemed the Payment
Response from the Employer, which meaning shall be the same ascribed in the Act if
the Employer does not provide any response within 14 days from the Payment Claim.
Where the Employer provides a Payment Response in compliance with the Act within
14 days from the Payment Claim, the Employer’s Payment Response shall take
precedence over the Payment Certificate issued pursuant to Clause 32.2(1) and shall
constitute the Payment Response defined in the Act.

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32.3 Correction of Certificates

The Superintending Officer may by any certificate make any correction or modification in
respect of any error whether arithmetical or otherwise in any previous certificate which has
been issued by him and make such adjustments as may be necessary in the amount of payment
due and payable to the Contractor to take into account any over or under valuation in any
previous certificate. Where the amount paid by the Employer to the Contractor pursuant to
any error in a previous certificate exceeds any amount due and payable to the Contractor under
any subsequent interim certificate or the Final Account Certificate, such excess shall be
recoverable by the Employer from the Contractor.

32.4 Final Payment Claim

(1) Within 90 days of the Date of Substantial Completion (or the last Date of Substantial
Completion, if more than one), the Contractor shall submit in writing to the Employer
(with a copy to the Superintending Officer) a claim for final payment in such form as
the Superintending Officer may prescribe (hereafter referred to as the “Final Payment
Claim”).

(2) This Final Payment Claim shall show the final amounts to which the Contractor
considers himself to be entitled in respect of all the matters set out in Clause 32.1. If or
to the extent that the measurements of the Works have not been completed by the
Superintending Officer pursuant to Clause 21.1 (other than by reason of any failure on
the part of the Contractor), the Contractor shall set out his best estimates of the
relevant measurements and amounts due in respect of the Works. The Final Payment
Claim shall also show all adjustments which the Contractor considers should be made
to the Contract Sum. Insofar as substantiation of any claim has not been provided
pursuant to Clause 23.3 or 23.4, the Contractor shall provide such substantiation with
such a Final Payment Claim. Failure by the Contractor to provide with the Final
Payment Claim such substantiation in respect of any event occurring before the Date
of Substantial Completion shall subject to Clause 23.5(2) and 23.6 bar the Contractor
from advancing any claim for such an amount.

(3) The Final Payment Claim made under this Clause shall constitute a Payment Claim
made under the Act, provided always that the requirements for the Final Payment
Claim made are fully complied with under the Act.

32.5 Interim Final Account, Final Account and Final Account Certificate

(1) (a) Within 21 days of receiving the Final Payment Claim duly submitted by the
Contractor pursuant to Clause 32.4, the Superintending Officer shall provide the
Contractor with an interim assessment of the draft final account (hereafter
referred to as the “Interim Final Account”) and at the same time issue the
Payment Certificate based on this Interim Final Account. The Interim Final
Account shall be the Superintending Officer’s interim assessment of the matters
set out in Clause 32.5(3). The Payment Certificate issued by the Superintending
Officer under this Clause shall comply fully with the requirements for Payment
Response made in contemplation of the Act.

(b) The Payment Certificate issued under Clause 32.5(1)(a) shall be deemed the
Payment Response from the Employer, which meaning shall be the same
ascribed in the Act if the Employer does not provide any response within 21
days from the Final Payment Claim. Where the Employer provides a Payment
Response in compliance with the Act within 21 days from the Final Payment
Claim, the Employer’s Payment Response shall take precedence over the
Payment Certificate issued pursuant to Clause 32.5(1)(a) and shall constitute the
Payment Response defined in the Act.

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(2) (a) In the event the Contractor fails to submit the Final Payment Claim pursuant to
Clause 32.4, the Superintending Officer shall in any event issue his Interim
Final Account within 150 days from the Date of Substantial Completion (or the
last Date of Substantial Completion, if more than one). Within 30 days after his
issue of the Interim Final Account, the Superintending Officer shall issue a
payment certificate certifying the amount due to the Contractor (if any) based on
his Interim Final Account. For the avoidance of doubt, the Interim Final
Account or payment certificate issued under this Clause 32.5(2)(a) shall not be
subject to the Act.

(b) If the Contractor does not agree to the Interim Final Account issued under
Clause 32.5(2)(a), he may submit his grounds of dispute in writing to the
Superintending Officer. The Superintending Officer may amend the disputed
amount (or other amounts not in dispute) and issue to the Contractor a notice of
amendment to the Interim Final Account or, if he decides not to issue a notice of
amendment to the Interim Final Account, he shall inform the Contractor
accordingly.

(3) The Superintending Officer shall not later than 30 days after the end of the Defects
Liability Period (or the latest if there are more than one such period) provide the
Contractor with a draft of the final account (hereinafter referred to as the “Final
Account”). The Final Account shall show:

(a) the adjustments which the Superintending Officer considers should be made to
the Contract Sum;

(b) the amounts to which the Superintending Officer considers that the Contractor
is entitled under the express provisions of the Contract; and

(c) the amounts to which the Superintending Officer considers that the Employer
is entitled under the express provisions of the Contract.

(4) Within 30 days of the receipt by the Contractor of the Final Account, the Contractor
shall notify the Superintending Officer in writing as to whether or not the amounts set
out in the Final Account are accepted by the Contractor. If the Contractor does not
accept an amount, he shall submit his grounds of dispute in writing to the
Superintending Officer within the said 30 days. Any amount in respect of which the
Contractor has not submitted his grounds of dispute within the said 30 days shall be
deemed to have been accepted by and shall be final and binding on the Contractor.

(5) Within 30 days of the Superintending Officer’s receipt of the Contractor’s grounds of
dispute, the Superintending Officer may amend the disputed amount (or other amounts
not in dispute) and issue to the Contractor a notice of amendment to the Final Account
or, if he decides not to issue a notice of amendment to the Final Account, he shall
inform the Contractor accordingly. Any grounds of dispute submitted by the
Contractor in accordance with Clause 32.5(4) which is not dealt with or resolved by
the Superintending Officer’s notice of amendment shall be resolved in accordance with
Clause 35.

(6) The Superintending Officer shall issue a Final Account Certificate:

(a) within 30 days of the acceptance or deemed acceptance by the Contractor of


Final Account or of the amendment to the Final Account as the case may be;
or

(b) where there is no agreement on the whole or any part of the Final Account,
within 30 days from the date the Superintending Officer in writing informs the
Contractor that he would not issue a notice of amendment to the Final
Account.

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(7) The Final Account Certificate shall certify the difference between:

(a) the Contract Sum as adjusted in accordance with the terms of the Contract by
the Superintending Officer together with any further amounts which the
Superintending Officer considers the Contractor to be entitled pursuant to the
express provisions of the Contract; and

(b) the amounts so far certified for payment (whether or not paid),

and the difference shall be a debt payable by the Employer to the Contractor or the
Contractor to the Employer as the case may be.

(8) The Superintending Officer may, within 30 days of the issue of the Final Account
Certificate or the Final Completion Certificate, whichever is the later, amend the Final
Account and/or Final Account Certificate in the event of any error or accidental
inclusion or exclusion of any Plant, materials, goods or work or figure in any
computation. The provision of Clause 32.5(4) and 32.5(5) shall apply, mutatis
mutandis, with respect to such amendments.

(9) For the avoidance of doubt, the Superintending Officer shall not be obliged to issue a
Final Account Certificate before the Final Completion Certificate referred to in Clause
34.1 shall have been issued, and the issue of a Final Account or a Final Account
Certificate before the issue of the Final Completion Certificate shall not relieve the
Contractor from his obligations and liabilities arising during the Defects Liability
Period.

32.6 Period for Honouring Certificate

(1) The amount due to the Contractor under any certificate issued by the Superintending
Officer pursuant to Clause 32 or any other term of the Contract shall (subject to the
Employer's right to deduct or set-off any sum or damages for which the Contractor is
or may be liable under the Contract or in any other way) be paid by the Employer to
the Contractor:

(a) Where the Contractor is a taxable person under the Goods and Services Tax
Act, within 21 days or such other time period as may be stipulated in the
Appendix after the date the tax invoice (as referred to in Clause 32.7(3)) is
submitted to the Employer; or

(b) In any other case, within 21 days or such other time period as may be
stipulated in the Appendix after the expiry of the period within which the
Payment Response is required to be provided under the Building and
Construction Industry Security of Payment Act. The Contractor shall submit to
the Employer an invoice within 7 days of the date of payment response.

(2) Where a time period is stipulated in the Appendix, that time period shall prevail. In the
event that the Employer fails to make payment within the times stipulated, the
Employer shall pay to the Contractor interest at the rate stated in the Appendix (or at
the rate of 5% a year if none is stated) upon all sums unpaid from the date by which
the same should have been paid.

32.7 Claim and Payment of Goods and Services Tax

(1) The Contractor shall be deemed not to have allowed in his tender for goods and
services tax (hereafter called “GST”) chargeable under the Goods and Services Tax
Act (hereafter in Clause 32.7 called “the Act”) for the supply of goods, services or
works required under the Contract.

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(2) Unless the Contractor is not a taxable person under the Act, the Employer shall
reimburse the Contractor any GST charged on the goods, services or works required
under the Contract.

(3) The Contractor, when submitting the Payment Claims required by Clause 32.1 and the
Final Payment Claim required by Clause 32.4, shall also show the amount which he
considers himself to be entitled in respect of GST payable to him by the Employer.
Upon issue of each certificate the Contractor shall forthwith prepare and submit to the
Employer within 7 days the tax invoice under the Act in respect of the certificate. The
amount of GST in the invoice shall accord with the amount of GST stated in the
relevant certificate.

(4) If the Employer notifies the Contractor that it intends to apply to the Comptroller of
Goods and Services Tax for approval to issue to itself tax invoices in respect of the
certificates, or that it has obtained such approval, the Contractor shall give his written
agreement that, if such approval is or has been granted, he will not issue tax invoices
in respect of such certificates. If such approval is or has been granted by the
Comptroller of Goods and Services Tax then the Contractor shall not issue tax
invoices in respect of such certificates, provided that the Employer may, at any time
by notice in writing served on the Contractor, reimpose on him the obligations
contained in Clause 32.7(3) above.

(5) If any dispute, difference or question shall arise between either the Employer or the
Contractor and the Comptroller of Goods and Services Tax in relation to any tax
chargeable or alleged to be chargeable in connection with the Contract or the Works or
any part thereof, each shall render to the other such support and assistance as may be
necessary to resolve the dispute, difference or question.

(6) Clause 35 shall not apply to any dispute, difference or question arising under Clause
32.7.

32.8 Delay in Certification

Under no circumstances shall the Employer be liable to pay to the Contractor any damages,
whether by way of interest or otherwise, for any failure or delay by the Superintending Officer
in certifying any payment due or payable to the Contractor.

33 FLUCTUATIONS

33.1 Schedule of Materials

(1) The Contract Sum shall be adjusted upwards or downwards to take account of any rise
or fall in material prices respectively during the currency of the Contract. Such price
adjustments shall be calculated based on the fluctuations in the material price indices.
For the purpose of this clause, the material price indices shall be those as published by
the Building and Construction Authority.

(2) The materials applicable for price adjustments shall be specified in the Appendix. The
Conditions, Specifications or Contract Documents shall set out the methodology,
based on the fluctuations in the material price index of each of material specified in
the Appendix, to work out the price adjustments.

(3) On delivery of the said materials to Site, the Contractor shall notify the Superintending
Officer the delivery of the materials. Upon availability of the material price index of
the said material, the Contractor shall submit to the Superintending Officer what he
considers to be the price adjustment, which is worked out based on the methodology
set out in Clause 33.1(2)

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(4) Provided that sufficient substantiation has been given of the price adjustment, the
Superintending Officer shall ascertain the amount which in his opinion represents the
price adjustment to which the Contractor is entitled to be paid or the Employer is
entitled to credit and shall so notify the Contractor in writing.

33.2 Payment

Effect shall be given to the Superintending Officer’s ascertainment of the amount of the
difference by inclusion in the Contractor’s Payment Claim made pursuant to Clause 32.1(1)
and in the Superintending Officer’s certificates issued under Clause 32.

33.3 Contractor in Delay

No further upward or downward adjustments in respect of the prices of materials delivered


after the Time for Completion or any extension thereof, whichever is the later, shall apply in
the event the Contractor is in delay.

33.4 Sub-Contract Work

This Clause shall apply to materials specified in the Schedule of Material Prices purchased by
any sub-contractors (but not to Nominated Sub-Contractors unless expressly incorporated into
their sub-contracts).

34 FINAL COMPLETION CERTIFICATE

34.1 Time for Issue

Within 30 days after the expiration of the Defects Liability Period, or if different Defects
Liability Periods shall become applicable to different phases or parts of the Works, the latest
of such Periods or as soon thereafter as any work instructed pursuant to Clause 18 shall have
been completed, the Superintending Officer shall issue to the Contractor, with a copy to the
Employer, a Final Completion Certificate.

34.2 Certificate not Conclusive

No certificate of the Superintending Officer shall of itself be conclusive evidence that the
Works have been completed or that any Plant, materials, goods or work to which it relates are
in accordance with the Contract.

35 SETTLEMENT OF DISPUTES

35.1 Reference to the Superintending Officer

(1) If a dispute or difference of whatsoever kind shall arise between the Employer or the
Superintending Officer or the Superintending Officer’s Representative and the
Contractor in connection with or arising out of the Contract or the execution of the
Works, whether during the execution of the Works or after their completion and
whether before or after any termination of the Contract or the Contractor’s
employment, including any dispute or difference as to any opinion, instruction,
determination, decision, certificate or valuation of the Superintending Officer or the
Superintending Officer’s Representative, it shall in the first place be referred by either
party in writing to the Superintending Officer for his decision. Such reference shall
state that it is made pursuant to this Clause and a copy shall be sent to the other party
to the Contract.

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(2) No later than the expiry of 30 days after the date upon which the Superintending
Officer received such reference, the Superintending Officer shall give notice of his
decision in writing to the Employer and to the Contractor and shall for information
state therein that it is given pursuant to this Clause. Such decision shall identify the
reference pursuant to which it is made and shall be final and binding on the parties to
this Contract unless, as hereinafter provided, either party shall require that the decision
should be referred to arbitration.

(3) Unless the Contract has already been repudiated or the employment of the Contractor
terminated or the carrying out of the Works completed, the Contractor shall, in case of
any reference, continue to proceed with the Works in accordance with his obligations
under the Contract and the Contractor and the Employer shall give effect forthwith to
every decision of the Superintending Officer unless and until the same shall be revised
by an arbitrator as hereinafter provided (or as may be otherwise ordered by a Court of
competent jurisdiction).

35.2 Reference to Arbitration

If either the Employer or Contractor is dissatisfied with the decision of the Superintending
Officer made pursuant to Clause 35.1 hereof, or if the Superintending Officer fails to give
notice of his decision on or before the expiry of the 30 day period following the date on which
the Superintending Officer received the reference, then the Employer or the Contractor may,
within 90 days from the date of receipt of the aforesaid decision of the Superintending Officer,
or within 90 days from the date of expiry of the aforesaid 30 day period (as the case may be)
give notice to the other party with a copy for information to the Superintending Officer of his
intention to refer the decision or the dispute or difference that had not been decided to an
arbitrator. The arbitrator may be agreed upon by the parties or failing such agreement, shall be
a person to be nominated on the application of either party by the Chairman of the Singapore
International Arbitration Centre. Subject to Clause 35.3, such reference shall not, without the
Employer’s consent in writing, be initiated before the Date of Substantial Completion of the
Works (or if there is more than one such Date of Substantial Completion, the latest) or alleged
Date of Substantial Completion of the Works. Any such reference shall be deemed to be a
submission to arbitration within the meaning of the Arbitration Act or any re-enactment or
modification thereof.

35.3 Arbitration in Event of Termination

Notwithstanding Clause 35.1, if the dispute or difference concerns the termination of the
employment of the Contractor or the repudiation or abandonment of the Contract by either
party, such dispute or difference shall not be referred to the Superintending Officer for
decision pursuant to Clause 35.1 but shall be referred to an arbitrator in accordance with
Clause 35.2. Any dispute or difference raised by the Contractor in connection with the
termination of his employment or the repudiation or abandonment of the Contract by the
Employer shall be referred to arbitration within 60 days of the notice of termination or act of
repudiation or abandonment. Failure to do so within such period shall bar the Contractor
absolutely from pursuing such dispute or difference in any arbitration or court proceedings
whatsoever.

35.4 Powers of the Arbitrator

An arbitrator appointed pursuant to Clause 35.2 or Clause 35.3 hereof shall have full power to
open up, review and revise any certificate, opinion, decision, requirement or notice and to
determine all matters in dispute or difference which shall be submitted to him in the same
manner as if no such certificate, opinion, decision, requirement or notice had been given,
subject to any provision of the Contract which may constitute a decision or certificate or other
document as final or binding or any document or event or omission as barring or preventing a
claim being advanced by one party against the other.

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35.5 Reference to Adjudication

(1) Notwithstanding Clause 35.1, if a dispute or difference involves a Payment Claim or


Payment Response to which the Building and Construction Industry Security of
Payment Act applies, the Contractor shall be entitled to make an adjudication
application in accordance with the Building and Construction Industry Security of
Payment Act, in which case the provisions of the Act shall apply.

(2) Notwithstanding Clause 35.5(1), both parties may by mutual agreement refer the
dispute or difference to mediation under Clause 35.6 and/or to arbitration under Clause
35.2.

35.6 Mediation

(1) The parties agree that before referring any dispute or difference to arbitration or court
proceedings, they shall consider resolving the dispute or difference through formal
mediation. If both parties agree to attempt resolving the dispute through mediation,
the parties agree to do so at the Singapore Mediation Centre in accordance with its
prevailing prescribed form, rules and procedures.

(2) For avoidance of doubt, the provision herein shall not amount to any legal obligation
on the part of either party to attempt mediation or the extent to which they shall do so,
as a means of resolving their dispute or difference. However, the period between the
time of receipt of the formal Notice for mediation and the rejection of the Notice or the
time of termination of mediation for that matter shall not be taken into account in
computing any periods under clause 35.2 and 35.3.

36 RECOVERY BY THE EMPLOYER

36.1 Wherever in the Contract provision is made for the Employer to recover any amount from the
Contractor such amount may be deducted from or reduced by any sum due or to become due at
any time thereafter from the Employer to the Contractor under this contract between the
Employer and the Contractor or may be recovered by the Employer from the Contractor as a
debt.

37 GOVERNING LAW & NOTICES

37.1 Law

(1) The law governing this Contract and any arbitration commenced under these
Conditions shall be the law of Singapore, and any such arbitration shall be held in
Singapore.

(2) Unless otherwise expressly stated in this Contract, a person who is not a party to this
Contract shall have no right under the Contracts (Rights of Third Parties) Act to
enforce any of its terms.

(3) Where the Building and Construction Industry Security of Payment Act applies to this
Contract, all provisions in this Contract shall be read to give effect to the provisions of
the Act. For that purpose, the parties shall be entitled to such rights and be subject to
such obligations as may be set out in the Building and Construction Industry Security
of Payment Act.

37.2 Notices

(1) The Contractor shall provide in his Form of Tender an address in Singapore for
service of documents, hereafter referred to as “the Service Address”.

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(2) The Contractor shall give 14 days written notice to the Superintending Officer before
any change in the Service Address.

(3) Except as provided in Clause 37.2(4), all certificates, notices or instruction to be given
to the Contractor by the Employer or the Superintending Officer under the terms of the
Contract shall be sent by post, cable, telex or facsimile transmission to or left at the
Service Address.

(4) All certificates and notices under Clauses 31 and 35 shall be given by pre-paid
registered mail or hand delivery to:

(a) in the case of the Contractor, the Service Address; and

(b) in the case of the Superintending Officer or the Employer, such address as the
Superintending Officer shall in writing notify the Contractor.

(5) Without prejudice to any other method of service that is authorised by law, service of
any originating process by the Employer or Superintending Officer on the Contractor
shall be deemed to be due service if it is posted to or left at the Service Address.

38 COMPLIANCE WITH PREVAILING LAW

38.1 Nothing in these Conditions shall be interpreted as authorising or permitting the doing of any
act that is prohibited by any written law.

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