Design-Build and Turnkey 1st Ed (1995 Orange Book)

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Conditions of Contract for Design-Build and Turnkey (1st Edition, 1995). Part 1: General Conditions; Part 2: Guidance for the Preparation of Conditions Particular Application.

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ISBN:

2-88432-010-5

The Orange Book - Conditions of Contract for Design-Build and Turnkey
First edition; 1995
Part I: General Conditions Part II: Guidance for the Preparation of the Particular Conditions Part III: Forms of Tender, and Agreement Part IV: Model Terms of an Appointment for a Dispute Adjudication Board FOREWORD CONTENTS The terms of the Conditions of Contract for Design - Build and Turnkey have been prepared by the Federation Internationale des Ingenieurs Conseils (FIDIC) and are recommended for general use for the purpose of the design and construction of works where tenders are invited on an international basis; with minor modifications, the Conditions are also suitable for use on domestic contracts.
		Parts I, II and III: soft cover ; 150 pages Part IV: insert ; 4 pages
Foreword
There are no universally accepted definitions of the terms "design-build" and "turnkey", except that both involve the Contractor's total liability for design. For the Employer, such single-point responsibility may be advantageous, but the benefits may be offset by having less control over the design process and more difficulty in imposing varied requirements. Under the usual arrangements for a design-build contract, the Contractor is responsible for the design and provision, in accordance with the Employer's requirements, of works which may include any combination of engineering (including civil, mechanical, electrical, etc) and building works; and interim payments are made as construction proceeds. In Part 1, Clause 13 sets out the payment arrangements. The Conditions are also intended for use on turnkey contracts, under which the Employer's requirements usually include provision of a fully-equipped facility, ready for operation (at the turn of the "key"); such contracts are often contractor-financed. Turnkey contracts typically include design, construction, fixtures, fittings and equipment, the scope of which would be defined in other contract documents. In addition, the contract may impose a requirement for the Contractor to operate the Works, either for a few months' commissioning period, or for some years' operation on a build-operate-transfer contract. Advice on turnkey arrangements is included in Part II, together with sample wording for contractor-finance. The version in English of the Conditions is considered by FIDIC as the official and authentic text for the purposes of translation (translations are available from the bookshop). In the preparation of the Conditions it was recognized that, while there are many sub-clauses which will be generally applicable, there are some sub-clauses which must necessarily vary to take account of the circumstances relevant to the particular contract. The sub-clauses which were considered to be applicable to the majority of contracts have therefore been presented in Part I - General Conditions, which will facilitate their incorporation into the contract. Part I - General Conditions and Part 11 - Conditions of Particular Application will together comprise the Conditions governing the rights and obligations of the parties. It will be necessary to prepare the Part II for each individual contract, taking particular account of the references to Part 11 which are contained in some sub-clauses in Part I. In order to assist in the preparation of Part II and the other tender documents, explanatory material and example wording are published with these Conditions in the Guidance for the Preparation of Conditions of Particular Application. More detailed guidance will be included in a guide to the use of these conditions, to be published by early 1996.
Contents
1 THE CONTRACT 1.1 Definitions 1.2 Headings and Marginal Notes 1.3 Interpretation 1.4 Law and Language 1.5 Contract Agreement 1.6 Priority of Documents 1.7 Documents on Site 1.8 Communications 1.9 Provision of Construction Documents 1.10 Employer's Use of Contractor's Documents 1.11 Contractor's Use of Employer's Documents 1.12 Confidential Details 1.13 Compliance with Statutes, Regulations and Laws 1.14 Joint and Several Liability 2 THE EMPLOYER 2.1 General Obligations 2.2 Access to and Possession of the Site 2.3 Permits, Licenses or Approvals 2.4 Employer's Entitlement to Terminate 3 THE EMPLOYER'S REPRESENTATIVE 3.1 Employer's Representative's Duties and Authority 3.2 Requirements for Employer's Representative 3.3 Employer's Representative's Authority to Delegate 3.4 Employer's Representative's Instructions 3.5 Employer's Representative to Attempt Agreement 4 THE CONTRACTOR 4.1 General Obligations 4.2 Performance Security 4.3 Contractor's Representative 4.4 Co-ordination of the Works 4.5 Subcontractors 4.6 Assignment of Subcontractor's Obligations 4.7 Setting Out 4.8 Quality Assurance 4.9 Site Data 4.10 Matters Affecting the Execution of the Works 4.11 Unforeseeable Sub-Surface Conditions 4.12 Access Route 4.13 Rights of Way and Facilities 4.14 Program 4.15 Progress Reports 4.16 Contractor's Equipment 4.17 Safety Precautions 4.18 Protection of the Environment 4.19 Electricity, Water and Gas 4.20 Employer Supplied Machinery and Materials. 4.21 Clearance of Site 4.22 Security of the Site 4.23 Contractor's Operations on Site 4.24 Fossils 5 DESIGN 5.1 General Obligations 5.2 Construction Documents 5.3 Contractor's Undertaking 5.4 Technical Standards and Regulations 5.5 Samples 5.6 As-Built Drawings 5.7 Operation and Maintenance Manuals 5.8 Error by Contractor 5.9 Patent Rights 6 STAFF AND LABOUR 6.1 Engagement of Staff and Labour 6.2 Rates of Wages and Conditions of Labour 6.3 Persons in the Service of Others 6.4 Labour Laws 6.5 Working Hours 6.6 Facilities for Staff and Labour 6.7 Health and Safety 6.8 Contractor's Superintendence 6.9 Contractor's Personnel 6.10 Disorderly Conduct 7 PLANT, MATERIALS AND WORKMANSHIP 7.1 Manner of Execution 7.2 Delivery to Site 7.3 Inspection 7.4 Testing 7.5 Rejection 7.6 Ownership of Plant and Materials 8 COMMENCEMENT, DELAYS AND SUSPENSION 8.1 Commencement of Works 8.2 Time for Completion 8.3 Extension of Time for Completion 8.4 Delays Caused by Authorities 8.5 Rate of Progress 8.6 Liquidated Damages for Delay 8.7 Suspension of Work 8.8 Consequences of Suspension 8.9 Payment for Plant and Materials in Event of Suspension 8.10 Prolonged Suspension 8.11 Resumption of Work 9 TESTS ON COMPLETION 9.1 Contractor's Obligations 9.2 Delayed Tests 9.3 Retesting 9.4 Failure to Pass Tests on Completion 10 EMPLOYER'S TAKING OVER 10.1 Taking-Over Certificate 10.2 Use by the Employer 10.3 Interference with Tests on Completion 11 TESTS AFTER COMPLETION 11.1 Employer's Obligations 11.2 Delayed Tests 11.3 Retesting 11.4 Failure to Pass Tests after Completion 12 DEFECTS LIABILITY 12.1 Completion of Outstanding Work and Remedying Defects 12.2 Cost of Remedying Defects 12.3 Extension of Contract Period 12.4 Failure to Remedy Defects 12.5 Removal of Defective Work 12.6 Further Tests 12.7 Right of Access 12.8 Contractor to Search 12.9 Performance Certificate 12.10 Unfulfilled Obligations 13 CONTRACT PRICE AND PAYMENT 13.1 The Contract Price 13.2 Advance Payments 13.3 Application for Interim Payment Certificates 13.4 Schedule of Payments 13.5 Plant and Materials for the Permanent Works 13.6 Issue of Interim Payment Certificates 13.7 Payment 13.8 Delayed Payment 13.9 Payment of Retention Money 13.10 Statement at Completion 13.11 Application for Final Payment Certificate 13.12 Discharge 13.13 Issue of Final Payment Certificate 13.14 Cessation of Employer's Liability 13.15 Calculation of Payments in Foreign Currency 13.16 Changes in Legislation 14 VARIATIONS 14.1 Right to Vary 14.2 Value Engineering 14.3 Variation Procedure 14.4 Payment in Applicable Currencies 14.5 Provisional Sums 15 DEFAULT OF CONTRACTOR 15.1 Notice to Correct 15.2 Termination 15.3 Valuation at Date of Termination 15.4 Payment after Termination 15.5 Bribes 16 DEFAULT OF EMPLOYER 16.1 Contractor's Entitlement to Suspend Work 16.2 Termination 16.3 Cessation of Work and Removal of Contractor's Equipment 16.4 Payment on Termination 17 RISK AND RESPONSIBILITY 17.1 Indemnity 17.2 Contractor's Care of the Works 17.3 Employer's Risks 17.4 Consequences of Employer's Risks 17.5 Contractor's Risks 17.6 Limitation of Liability 18 INSURANCE 18.1 Insurance for Design 18.2 Insurance for Works and Contractor's Equipment 18.3 Insurance against Injury to Persons and Damage to Property 18.4 Insurance for Workers 18.5 General Requirements for Insurances 19 FORCE MAJEURE 19.1 Definition of Force Majeure 19.2 Effect of Force Majeure Event 19.3 Contractor's Responsibility 19.4 Employer's Responsibility 19.5 Payment to Contractor 19.6 Optional Termination, Payment and Release 19.7 Release from Performance under the Law 20 CLAIMS, DISPUTES AND ARBITRATION 20.1 Procedure for Claims 20.2 Payment of Claims 20.3 Dispute Adjudication Board 20.4 Procedure for Obtaining Dispute Adjudication Board's Decision 20.5 Amicable Settlement 20.6 Arbitration 20.7 Failure to Comply with Dispute Adjudication Board's Decision 20.8 Expiry of Dispute Adjudication Board's Appointment

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