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Form of Sub-Contract and Agreement Page 1

FORM OF SUB-CONTRACT

FOR USE WITH THE FIDIC CONSTRUCTION CONDITIONS OF CONTRACT FIRST EDITION 1999

Form of Sub-Contract and Agreement Page 2

AN AGREEMENT made the ..... . ......... .......... .... .... day of......... ... ........ ... .......... .. ....... 2 .... ..... ......... . . BETWEEN ............ ... ..... . ... .. ... .... ... ........ .... .. ...................... .... .. ...... ..... , ...... .. ...... ............. of/whose registered office is at .. .... .. ................ .......................... .. ......... . ......... ... ............ .. ......... ... ............. ... . ... ... .. . ... ... . .. . .. ... ... .. . .. . .. . ... ... ... ... ... ... ... ... ... ..... .. . ... ... .... ... ... ... (hereinafter called 'the Contractor') of the one part and ......... ... ...... ..... . ........ ... ............ . .. . ... ........... ...... ........ . .............. ... ... . .. .... .. ...... .. .. of/whose registered office is at ..................................... .. .................................. .. ....................... . ........... . ..... . ... .. . ... ' " ............ ... ................. ... ............... .. . .. . (hereinafter called 'the Sub-Contractor') of the other part. WHEREAS the Contractor has entered into a Contract (hereinafter called 'the Main Contract') particulars of which are set out in the First Schedule hereto: AND WHEREAS the Sub-Contractor having been afforded the opportunity to read and note the provisions of the Main Contract (other than details of the Contractor's prices thereunder), has agreed to execute upon the terms hereinafter appearing the works which are described in the documents specified in the Second Schedule hereto and which form part of the Works to be executed by the Contractor under the Main Contract: NOW IT IS HEREBY AGREED as follows: Definitions

1.

(1)

In this Sub-Contract (as hereinafter defined) all words and expressions have the same meaning as in the Main Contract unless otherwise provided or where the context otherwise requires. (a) 'the Main Contract' means the contract, particulars of which are given in the First Schedule hereto. 'the Sub-Contract' means this Agreement together with such other documents as are specified in the Second Schedule hereto, but excluding any standard printed conditions that may be included in such other documents unless separately specified in the said Schedule. 'the Sub-Contract Works' means the works described in the documents specified in the Second Schedule hereto. 'the Main Works' means the Works as defined in the Main Contract. 'the Price' means the sum specified in the Third Schedule hereto as payable to the Sub-Contractor for the Sub-Contract Works or such other sum as may become payable under the SUb.-Contract 'Sub-Contractor's Equipment' means all appliances or things of whatsoever nature required by the Sub-Contractor in the fulfilment of his obligations under the Sub-Contract but does not include materials or other things intended to form or forming part of the Sub-Contract Works. 'maintain' means the execution of outstanding work and the correction of defects as required by Clause 11 of the Main

(b)

(c)

(d)

(e)

(f)

(g)

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Contract and the words 'maintenance' and 'maintaining' shall be construed accordingly. (h) 'insolvent' has the following meaning: A company becomes insolvent on the making of an administration order against it, on the appointment of an administrative receiver or a receiver or manager of its property, or the appointment of a receiver, on the passing of a resolution for voluntary winding up without a declaration of solvency , or on the making of a winding-up order. A partnership becomes insolvent on the making of a windingup order against it or the partnership grants a trust deed for its creditors. An individual becomes insolvent on the making of a bankruptcy order against him or when he grants a trust deed for his creditors. A company, partnership or individual shall also be treated as insolvent on the occurrence of any event corresponding to those specified above under the law of the country. (2) Words importing the singular also include the plural and vice-versa where the context requires The headings, marginal notes and notes for guidance in this Agreement shall not be deemed to be part thereof or taken into consideration in the interpretation or construction thereof or of the Sub-Contract. All references herein to clauses are references to clauses numbered in this Agreement and not to those in any other document forming part of the SubContract unless otherwise stated. The Sub-Contractor shall execute, complete and maintain the Sub-Contract Works in accordance with the Sub-Contract and to the reasonable satisfaction of the Contractor and of the Engineer. The Sub-Contractor shall exercise all reasonable skill care and diligence in designing any part of the Sub-Contract Works for which design he is responsible. The Sub-Contractor shall provide all labour, materials, Sub-Contractor's Equipment, Temporary Works and everything whether of a permanent or temporary nature required for the execution, completion and maintenance of the Sub-Contract Works, except as otherwise agreed in accordance with Clause 4 and set out in the Fourth Schedule hereto. The Sub-Contractor shall not assign the whole or any part of the benefit of this Sub-Contract nor shall he sub-let the whole or any part of the SubContract Works without the previous written consent of the Contractor. Provided always that the Sub-Contractor may without such consent assign either absolutely or by way of charge any sum which is or may become due and payable to him under this Sub-Contract. (4) Copyright of all Drawings, Specifications and the Bill of Quantities (except the pricing thereof) supplied by the Employer or the Engineer or the Contractor shall not pass to the Sub-Contractor but the Sub-Contractor

(3)

(4)

General

2.

(1)

(2)

(3)

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may obtain or make at his own expense any further copies required by him for the purposes of the Sub-Contract. Similarly copyright of all documents supplied by the Sub-Contractor under the Sub-Contract shall remain in the Sub-Contractor but the Employer and the Engineer and the Contractor shall have full power to reproduce and use the same for the purpose of completing, operating, maintaining and adjusting the Works. (5) Nothing in this Sub-Contract confers or purports to confer on any third party any benefit or any right to enforce any term of the Sub-Contract. The Sub-Contractor shall be deemed to have full knowledge of the provisions of the Main Contract (other than the details of the Contractor's prices thereunder as stated in the Bills of Quantities or Schedules of rates and prices as the case may be), and the Contractor shall, if so requested by the Sub-Contractor, provide the Sub-Contractor with a true copy of the Main Contract (less such details), at the Sub-Contractor's expense. The Main Contractor shall on request provide the Sub-Contractor with a copy of the Appendix to the Form of Tender to the Main Contract together with details of any contract conditions which apply to the Main Contract which differ from the applicable standard FIDIC Construction Conditions of Contract. Save where the provisions of the Sub-Contract otherwise require, the SubContractor shall so execute, complete and maintain the Sub-Contract Works that no act or omission of his in relation thereto shall constitute, cause or contribute to any breach by the Contractor of any of his obligations under the Main Contract and the Sub-Contractor shall, save as aforesaid, assume and perform hereunder all the obligations and liabilities of the Contractor under the Main Contract in relation to the Sub-Contract Works. Nothing herein shall be construed as creating any privity of contract between the Sub-Contractor and the Employer. (3) The Sub-Contractor shall indemnify the Contractor against every liability which the Contractor may incur to any other person whatsoever and against all claims, demands, proceedings, damages, costs and expenses made against or incurred by the Contractor by reason of any breach by the Sub-Contractor of the Sub-Contract. The Sub-Contractor hereby acknowledges that any breach by him of the Sub-Contract may result in the Contractor's committing breaches of and becoming liable in damages under the Main Contract and other contracts made by him in connection with the Main Works and may occasion further loss or expense to the Contractor in connection with the Main Works and all such damages loss and expense are hereby agreed to be within the contemplation of the parties as being probable results of any such breach by the Sub-Contractor. The Contractor shall permit the Sub-Contractor for the purpose of executing and completing the Sub-Contract Works to use such scaffolding as is from time to time provided by the Contractor in connection with the Main Works, but the Contractor shall not be bound to provide or retain any such scaffolding for the Sub- Contractor's use. No such permission shall imply any warranty by the Contractor as to the fitness, condition or suitability of such scaffolding, nor shall it impose any liability upon the Contractor in respect of its use by the Sub-Contractor, his servants or agents, nor relieve the SUb-Contractor of any statutory or other obligation

Main Contract

3.

(1)

(2)

(4)

Contractor's Facilities

4.

(1)

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to test or inspect the scaffolding to be used by his servants or agents or to provide suitable scaffolding for their use. (2) The Contractor shall provide at the Site the Contractor's Equipment and/or other facilities (if any) specified in Part 1 of the Fourth Schedule hereto and shall permit the Sub-Contractor in common with such other contractors as the Contractor may allow, to have the use thereof for the purposes of executing and completing but not of maintaining the Sub-Contract Works, upon such terms and conditions (if any) as are specified in the said schedule, but the Contractor shall have no liability to the Sub-Contractor in respect of any failure to provide such Contractor's Equipment or facilities, if such failure is due to circumstances outside the Contractor's control, nor in respect of any inadequacy or unfitness for the Sub-Contractor's purposes of any Contractor's Equipment or facilities so provided. The Contractor shall also provide for the exclusive use of the SubContractor the Contractor's Equipment and/or other facilities (if any) specified in Part II of the Fourth Schedule upon such terms and conditions (if any) as are specified in the said Schedule, but the Contractor shall have no liability to the Sub-Contractor in respect of any failure to provide such Contractor's Equipment and facilities, if such failure is due to circumstance outside the Contractor's control, nor in respect of any inadequacy or unfitness for the Sub-Contractor's purposes of any such Contractor's Equipment or facilities so provided. The Sub-Contractor shall indemnify the Contractor against any damage or loss whatsoever arising from the misuse by the Sub-Contractor, his servants or agents of the Contractor's Equipment and/or other facilities provided for his use by the Contractor. The Sub-Contractor shall in the execution of the Sub-Contract Works on the Site observe the same hours of working as the Contractor, unless otherwise agreed, and shall comply with all reasonable rules and regulations of the Contractor governing the execution of the work, the arrival at and the departure from the Site of materials and Sub-Contractor's Equipment and the storage of materials and Sub-Contractor's Equipment on the Site. The Contractor shall from time to time make available to the SubContractor such part or parts of the Site and such means of access thereto within the Site as shall be necessary to enable the Sub-Contractor to execute the SUb-Contract Works in accordance with the Sub-Contract, but the Contractor shall not be bound to give the Sub-Contractor exclusive possession or exclusive control of any part of the Site. The Sub-Contractor shall permit the Engineer, the Engineer's Representative and other the Engineer's servants and agents and the Contractor, his servants and agents (including any other sub-contractors engaged in the execution of the Main Works), during working hours to have reasonable access to the Sub-Contract Works and to the places on the Site where any work or materials therefor are being executed prepared or stored and the Sub-Contractor shall also permit or procure reasonable access for the Engineer, his servants and agents and for the Contractor, his servants and agents to such places off the Site where work is being executed or prepared by or on behalf of the Sub-Contractor in connection with the Sub- Contract Works Within 10 days, or such other period as may be agreed in writing, of receipt

(3)

(4)

Site Working and Access

5.

(1)

(2)

(3)

Commencement

6.

(1)

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and Completion

of the Contractor's written instructions so to do, the Sub-Contractor shall enter upon the Site and commence the execution of the Sub-Contract Works and shall thereafter proceed with the same with due diligence and without any delay, except such as may be expressly sanctioned or ordered by the Contractor or be wholly beyond the control of the Sub-Contractor. Subject to the provisions of this Clause, the Sub-Contractor shall complete the Sub-Contract Works within the Period for Completion specified in the Third Schedule hereto. (2) If the Sub-Contractor shall be delayed in the execution of the Sub-Contract Works: (a) by any circumstances or occurrence (other than a breach of this Sub-Contract by the Sub-Contractor) entitling the Contractor to an extension of his time for completion of the Main Works under the Main Contract; or by the ordering of any variation of the Sub-Contract Works to which paragraph (a) of this sub-clause does not apply; or by any breach of this Sub-Contract by the Contractor; then in any such event the Sub-Contractor shall be entitled to such extension of the Period for Completion as may in all the circumstances be fair and reasonable.

(b)

(c)

Provided always that in any case to which paragraph (a) of this sub-clause applies it shall be a condition precedent to the Sub-Contractor's right to an extension of the Period for Completion that he shall have given written notice to the Contractor of the circumstances or occurrence which is delaying him within 14 days of such delay first occurring together with full and detailed particulars in justification of the period of extension claimed in order that the claim may be investigated at the time and in any such case the extension shall not in any event exceed the extension of time to which the Contractor is properly entitled under the Main Contract. (3) Where differing Periods of Completion are specified in the Third Schedule for different parts of the Sub-Contract Works, then for the purposes of the preceding provisions of this Clause each such part shall be treated separately in accordance with sub-clause (2) above. Nothing in this Clause shall be construed as preventing the Sub-Contractor from commencing off the Site any work necessary for the execution of the Sub-Contract Works at any time before receipt of the Contractor's written instructions under sub-clause (1) of this Clause. The Contractor shall notify the Sub-Contractor in writing of all extensions of time obtained under the provisions of the Main Contract which affect the Sub-Contract. Subject to Clause 8 (Variations), the Sub-Contractor shall in relation to the Sub-Contract Works comply with all instructions and decisions of the Engineer and of the Engineer's Representative which are notified and confirmed in writing to him by the Contractor, irrespective of whether such instructions and decisions were validly given under the Main Contract. The Sub-Contractor shall have the like rights, (if any), to payment against the Contractor in respect of such compliance as the Contractor has against the Employer under the Main Contract. Further if any such instruction or decision notified and confirmed as aforesaid is invalidly or incorrectly given

(4)

(5)

Instructions and Decisions

7.

(1)

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by the Engineer under the Main Contract, then the Sub-Contractor shall be entitled to recover such costs as may be reasonable (if any) from the Contractor of complying therewith provided that such costs were not caused or contributed to by any breach of this Sub-Contract by the SubContractor. (2) The Contractor shall have the like powers in relation to the Sub-Contract Works to give instructions and decisions as the Engineer has in relation to the Main Works under the Main Contract and the Sub-Contractor shall have the like obligations to abide by and comply therewith and the like rights in relation thereto as the Contractor has under the Main Contract. The said powers of the Contractor shall be exercisable in any case irrespective of whether the Engineer has exercised like powers in relation thereto under the Main Contract. The Sub-Contractor shall make such variations of the Sub-Contract Works, whether by way of addition, modification or omission, as may be: (a) ordered by the Engineer under the Main Contract and confirmed in writing to the Sub-Contractor by the Contractor; or (b) agreed to be made by the Employer and the Contractor and confirmed in writing to the Sub-Contractor by the Contractor; or (c) ordered in writing by the Contractor. Any order relating to the Sub-Contract Works which is validly given by the Engineer under the Main Contract and constitutes a variation thereunder shall for the purposes of this Clause be deemed to constitute a variation of Sub-Contract Works, if confirmed by the Contractor in accordance with paragraph (a) hereof.

Variations

8.

(1 )

(2)

The Sub-Contractor shall not act upon an unconfirmed order for the variation of the Sub-Contract Works which is directly received by him from the Employer or the Engineer. If the Sub-Contractor shall receive any such direct order, he shall forthwith inform the Contractor's agent or foreman in charge of the Main Works thereof and shall supply him with a copy of such direct order, if given in writing. The Sub-Contractor shall only act upon such order as directed in writing by the Contractor, but the Contractor shall give his directions thereon with all reasonable speed. Save as aforesaid the Sub-Contractor shall not make any alteration in or modification of the Sub-Contract Works. Variations carried out in accordance with this Clause shall be valued as provided in Clause 9 and payment made in accordance with Clause 15. All authorised variations of the Sub-Contract Works shall be valued in the manner provided by this Clause and the value thereof shall be added to or deducted from the price specified in the Third Schedule hereto or as the case may require. The value of all authorised variations shall be ascertained by reference to the rates and prices (if any), specified in the Sub-Contract for the like or analogous work, but if there are no such rates and prices, or if they are not applicable, then such value shall be such as is fair and reasonable in all the circumstances. In determining what is fair and reasonable valuation, regard shall be had to any valuation made under the Main Contract in respect of

(3)

(4)

Valuation of Variations

9.

(1 )

(2)

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the same variation. (3) Where an authorised variation of the Sub-Contract Works, which also constitutes an authorised variation under the Main Contract is measured by the Engineer thereunder, then provided that the rates and prices in this Sub-Contract permit such variation to be valued by reference to measurement, the Contractor shall permit the Sub-Contractor to attend any measurement made on behalf of the Engineer and such measurement made under the Main Contract shall also constitute the measurement of the variation for the purposes of this Sub-Contract and it shall be valued accordingly. In any bill of quantities or price breakdown submitted by the Sub-Contractor and forming part of this Sub-Contract quantities stated therein shall be taken to define and limit the extent of any work to be done by the SubContractor in the execution and completion of the Sub-Contract Works. Where the Sub-Contractor has been ordered in writing by the Contractor to carry out any additional or substituted work on a daywork basis the SubContractor shall be paid for such work under the conditions set out in the Dayworks Schedule included in the Bill of Quantities under the Main Contract (if any) and at the rates and prices affixed to his Tender in the Third Schedule or as otherwise agreed. Without prejudice to the generality of Clause 3(1) where the SubContractor is to be paid for dayworks at the rates provided in the Dayworks Schedule included in the Bill of Quantities under the Main Contract the Main Contractor shall provide the Sub-Contractor with a copy of the said Daywork Schedule which should be referred to in Schedule 2. Without prejudice to the generality of Clause 3 hereofwheneverthe Contractor is required by the terms of the Main Contract to give any return, account, notice or other information to the Engineer or to the Employer, the Sub-Contractor shall in relation to the Sub-Contract Works give a similar return, account or notice or such other information in writing to the Contractor as will enable the Contractor to comply with such terms of the Main Contract and shall do so in sufficient time to enable the Contractor to comply with such terms punctually. Provided always that the Sub-Contractor shall be excused any noncompliance with this sub-clause for so long as he neither knew nor ought to have known of the Contractor's need of any such return, account, notice or information from him. (2) (a) Subject to the Sub-Contractors complying with this subclause 10(2), the Contractor shall take all reasonable steps to secure from the Employer such contractual benefits, if any, as may be claimable in accordance with the Main Contract on account of any unforeseeable physical conditions that may affect the execution of the SUb-Contract Works and the Sub-Contractor shall in sufficient time afford the Contractor all information and assistance that may be requisite to enable the Contractor to claim such benefits. Where the Contractor has claimed additional payment under the Main Contract on account of unforeseeable physical conditions affecting the execution of the Sub-Contract Works and the Engineer has determined a sum due to the

(4)

(5)

(6)

Notices and Claims

10.

(1)

(b)

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Contractor by reason of such conditions or obstructions, the Contractor shall within 28 days from such determination by the Engineer determine and notify in writing to the SubContractor such proportion of any such sum which it is in all the circumstances fair and reasonable to pay to the SubContractor. Provided that the Contractor shall have no liability to make any such payment to the Sub-Contractor to the extent that the Engineer has determined a sum due to the Contractor by reason of adverse physical conditions or artificial obstructions but the Employer is insolvent and has failed to make payment to the Contractor in respect of such determination. (c) Where the Contractor has claimed an extension of time under the Main Contract on account of unforeseeable physical conditions affecting the execution of the SubContract Works and the Engineer has determined an extension of time to which the Contractor is entitled by reason of such conditions or obstructions, the Contractor shall determine such proportion of any such extension which it is in all the circumstances fair and reasonable to pass on to the Sub-Contractor. Save as aforesaid the Contractor shall have no liability to the Sub-Contractor in respect of any condition, obstruction or circumstance that may affect the execution of the SubContract Works and the Sub-Contractor shall be deemed to have satisfied himself as to the correctness and sufficiency of the Price to cover the provision and doing by him of all things necessary for the performance of his obligations under the Sub-Contract Provided always that nothing in this Clause shall prevent the Sub-Contractor claiming for delays in the execution of the Sub-Contract Works solely by the act or default of the Main Contractor on the ground only that the Main Contractor has no remedy against the Employer for such delay.

(d)

(3)

If by reason of any breach by the Sub-Contractor of the provisions of subclause (1) of this Clause the Contractor is prevented from recovering any sum from the Employer under the Main Contract in respect of the Main Works, then without prejudice to any other remedy of the Contractor for such breach, the Contractor may deduct such sums from monies otherwise due to the Sub-Contractor under this SUb-Contract. Where it is provided by the Main Contract that the property in any SubContractor's Equipment, Temporary Works, materials or things whatsoever shall in certain events vest in the Employer or revest in the Contractor, then in so far as such Sub-Contractor's EqUipment, Temporary Works, materials or things are to be provided by the Sub-Contractor in connection with the Sub-Contract Works, the property therein shall pass from the SubContractor to the Contractor immediately before it is due to vest in the Employer in pursuance of the Main Contract and shall re-pass from the Contractor to the Sub-Contractor immediately after it has revested in the Contractor in pursuance of the Main Contract. Without prejudice to the generality of Clause 3 (Main Contract), the SubContractor shall comply with the reqUirements of the Main Contract as to the bringing on to and removal from the Site of Sub-Contractor's

Property in Materials and Plant

11.

(1)

(2)

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Equipment, Temporary Works, materials and other things and in so far as any items thereof are hired by the Sub-Contractor, he shall comply with all the requirements of the Main Contract as to the terms of such hirings and as to the giving of information and certificates in relation thereto. Indemnities

12.

(1)

The Sub-Contractor shall at all times indemnify the Contractor against all liabilities to other persons (including the servants and agents of the Contractor or Sub-Contractor) for bodily injury, damage to property or other loss which may arise out of or in consequence of the execution, completion or maintenance of the Sub-Contract Works and against all costs, charges and expenses that may be occasioned to the Contractor by the claims of such persons. Provided always that the Contractor shall not be entitled to the benefit of this indemnity in respect of any liability or claim if he is entitled by the terms of the Main Contract to be indemnified in respect thereof by the Employer. Provided further that the Sub-Contractor shall not be bound to indemnify the Contractor against any such liability or claim if the injury, damage or loss in question was caused solely by the wrongful acts or omissions of the Contractor, his servants or agents.

(2)

The Contractor shall indemnify the Sub-Contractor against all liabilities and claims against which the Employer by the terms of the Main Contract undertakes to indemnify the Contractor and to the like extent, but no further. If the Sub-Contractor shall complete the Sub-Contract Works as required by Clause 2(1) before the substantial completion of the Main Works, or where under the Main Contract the Main Works are to be completed by sections before the substantial completion of the section or sections in which the Sub-Contract Works are comprised, the Sub-Contractor shall maintain the SUb-Contract Works in the condition required by the Main Contract (fair wear and tear excepted) to the satisfaction of the Engineer and shall make good every defect and imperfection therein from whatever cause arising until such substantial completion of the Main Works or section thereof is achieved and subject to Clause 14(lnsurance), shall not be entitled to any additional payment for so dOing unless such defect or imperfection is caused by the act, neglect or default of the Employer, his servants or agents under the Main Contract or of the Contractor, his servants or agents under the Sub-Contract. After completion of the Main Works or of the section or sections thereof in which the Sub-Contract Works are comprised, as the case may be, the Sub-Contractor shall maintain the Sub-Contract Works and shall make good such defects and imperfections therein as the Contractor is liable to make good under the Main Contract for the like period and otherwise upon the like terms as the Contractor is liable to do under the Main Contract. Provided always that if any defect or imperfection made good by the SubContractor under this sub-clause is caused by the act, neglect or default under the Sub-Contract of the Contractor, his servant or agents, then notwithstanding that the Contractor may have no corresponding right under the Main Contract, the Sub-Contractor shall be entitled to be paid by the Contractor his reasonable costs of making good such defect or imperfection.

Outstanding Work and Defects

13.

(1 )

(2)

Insurances

14.

(1 )

The Sub-Contractor shall effect insurance against such risks as are

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specified in Part I of the Fifth Schedule hereto and in such sums and for the benefit of such persons as are specified therein and unless the said Fifth Schedule otherwise provides, shall maintain such insurance from the time that the Sub-Contractor first enters upon the Site for the purpose of executing the Sub-Contract Works until he has finally performed his obligations under Clause 13 (Outstanding Work and Defects). (2) The Contractor shall maintain in force until such time as the Main Works have been substantially completed or ceased to be at his risk under the Main Contract, the policy of insurance specified in Part II of the Fifth Schedule hereto. In the event of the Sub-Contract Works, or any SubContractor's Equipment, Temporary Works, materials or other things belonging to the Sub-Contractor being destroyed or damaged during such period in such circumstances that a claim is established in respect thereof under the said policy, then the Sub-Contractor shall be paid the amount of such claim, or the amount of his loss, whichever is the less, and shall apply such sum in replacing or repairing that which was destroyed or damaged. Save as aforesaid the Sub-Contract Works shall be at the risk of the SubContractor until the Main Works have been substantially completed under the Main Contract or if the Main Works are to be completed by sections, until the last of the sections in which the Sub-Contract Works are comprised has been substantially completed, and the Sub-Contractor shall make good all loss of or damage occurring to the Sub-Contract Works prior thereto at his own expense. Where by virtue of this Clause either party is required to effect and maintain insurance, then at any time until such obligation has fully been performed, he shall if so required by the other party produce for inspection satisfactory evidence of insurance and in the event of his failing to do so, the other party may himself effect such insurance and recover the cost of so doing from the party in default. (a) The Sub-Contractor shall not less than 7 days before the date specified in the First Schedule (the 'Specified Date') or otherwise as agreed submit to the Contractor a written statement of the value of all work properly done under the Sub-Contract and of all materials delivered to the Site for incorporation in the Sub-Contract Works and if allowable under the Main Contract the value of off-site materials for incorporation in the Sub-Contract Works at the date of such statement. The statement shall be in such form and contain such details as the Contractor may reasonably require and the value of work done shall be calculated in accordance with the rates and prices, if any, specified in the Sub-Contract, or if there are no such rates and prices, then by reference to the Price. The statement submitted by the SUb-Contractor as provided in the preceding sub-clause shall constitute a 'valid statement' for the purposes of this Clause but not otherwise. The Contractor shall make applications for payment in accordance with the Main Contract and subject to the SubContractor having submitted a valid statement shall include in such applications claims for the value of work and materials set out in such statement. In any proceedings instituted by the Contractor against the

(3)

Payment

15.

(1)

(b)

(2)

(a)

(b)

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Employer to enforce payment of monies due under any certificate issued by the Engineer in accordance with the provisions of the Main Contract there shall be included all sums certified and unpaid in respect of the Sub-Contract Works.

(3)

(a)

Within 26 days of the Specified Date or otherwise as agreed but subject as hereinafter provided. there shall be due to the Sub-Contractor in respect of the value of the work and materials if included in a valid statement payment of a sum calculated and determined by the Contractor in accordance with the rates and prices specified in this Sub-Contract. or by reference to the Price. as the case may require. but subject to a deduction of previous payments and of retention monies at the rate(s) specified in the Third Schedule hereto until such time as the limit of retention (if any) therein specified has been reached. The Contractor shall notify the SubContractor in writing of the amount so calculated and determined within 21 days of the Specified Date. The final date for payment shall be 7 days later. Subject to Clauses 3(4), and 10(3) and 17(3) and as hereinafter provided and without prejudice to any rights which exist at Common Law the Contractor shall be entitled to withhold or defer payment of all or part of any sums otherwise due pursuant to the provisions hereof where:(i) the amounts or quantities included in any valid statement together with any other sums to which the Sub-Contractor might otherwise be entitled do not exceed the minimum amount stated in the Third Schedule, or the amounts or quantities included in any valid statement together with any sums which are the subject of an application by the Contractor in accordance with Clause 15(2) are insufficient to justify the issue of an interim certificate by the. Engineer under the Main Contract. or the amounts or quantities included in any valid statement are not certified in full by the Engineer, providing such failure to certify is not due to the act or default of the Contractor. or the Contractor has included the amounts or quantities set out in the valid statement in his own statement in accordance with the Main Contract and the Engineer has certified but the Employer is insolvent and has failed to make payment in full to the Contractor in respect of such amounts or quantities. or a dispute arises or has arisen between the SubContractor and the Contractor and/or the Contractor and the Employer involving any question of measurement or quantities or any matter included in any such valid statement.

(b)

(ii)

(iii)

(iv)

(v)

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(c)

Any payment withheld under the provisions of sub-clauses (b) (iii), (iv) or (v) above shall be limited to the extent that the amounts in any valid statement are not certified, not paid by the Employer or are the subject of a dispute as the case may be. The provisions of this Clause with regard to the time for payment shall not apply to the amounts or quantities in any valid statement by the Sub-Contractor which are included in the Contractor's statement of final account to the Employer under the provisions of the Main Contract. In respect of any such amounts or quantities the Contractor shall determine and notify in writing to the Sub-Contractor the amount due to the Sub-Contractor, within 28 days of the issue by the Engineer of a certificate stating the amount due to or from the Contractor pursuant to the Main Contract Conditions in respect of the Contractor's statement of final account. Payment of the amount determined by the Contractor shall be due to the Sub-Contractor upon such determination and notification. The final date for payment shall be 7 days later. Provided that the Contractor shall have no liability to make such payment of such amount to the extent that the Engineer has certified such amount or any part thereof pursuant to the provisions of the Main Contract, but the Employer is insolvent and has failed to make payment in full to the Contractor in respect of such certified amount. In the event of the Contractor failing to make payment of any sum properly due and payable to the Sub-Contractor, the Contractor shall pay to the Sub-Contractor interest on such overdue sum at the rate payable by the Employer to the Contractor under the provisions of the Main Contract. Provided that where the Contractor fails to make payment of any sum properly due and payable to the Sub-Contractor and where the Engineer has certified such amount or any part thereof pursuant to the provisions of the Main Contract, then to the extent that the Employer is insolvent and has failed to make payment to the Contractor in respect of such certified amount, the Contractor shall have no obligation to pay interest to the Sub-Contractor. Notwithstanding sub-clause (e) the Sub-Contractor shall be paid any interest actually received by the Contractor from the Employer which is attributable to monies due to the SubContractor.

(d)

(e)

(f)

(4)

The Contractor shall have power to omit from any determination of the value of work and materials included in a valid statement the value of any work done, goods or materials supplied or services rendered with which he may for the time being be dissatisfied and for that purpose or for any other reason which to him may seem proper may delete, correct or modify any sum previously determined by him as due for payment to the SubContractor. (a) Within 35 days of the issue by the Engineer of a Certificate including an amount in respect of payment to the Contractor of the first half of the retention monies or where the Main Works are to be completed by sections for any section in

(5)

Form of Sub-Contract and Agreement Page 14

which the Sub-Contract Works are comprised there shall be due to the Sub-Contractor the first half of the retention monies under this Sub-Contract and the Contractor shall so notify the Sub-Contractor in writing. The final date for payment shall be 7 days later. Provided that the Contractor shall have no liability to make such payment if the Employer is insolvent and has failed to release the first half of the retention monies due under the Main Contract. (b) Within 28 days of the date of issue of the Performance Certificate under the Main Contract, there shall be due to the Sub-Contractor the second half of the retention monies under this Sub-Contract. The Contractor shall so notify the SubContractor in writing within the same 28 day period. The final date for payment shall be 7 days later. Provided that the Contractor shall have no liability to make such payment if the Employer is insolvent and has failed to release the second half of the retention monies due under the Main Contract.

(6)

Within three months after the Sub-Contractor has finally performed his obligations under Clause 13 (Outstanding Work and Defects), or within 14 days after the Contractor has recovered full payment under the Main Contract in respect of the Sub-Contract Works, whichever is the sooner and provided that one month has expired since the submission by the SubContractor of his valid statement of final account to the Contractor, the Contractor shall determine the amount finally due under the Sub-Contract from the Contractor to the Sub-Contractor or from the Sub-Contractor to the Contractor as the case may be, after giving credit to the Sub-Contractor for the Price and/or any other sums that may have become due under the Sub-Contract and after giving credit to the Contractor for all amounts previously paid by the Contractor and for all sums to which the Contractor is entitled under the SUb-Contract. The Contractor shall notify the SubContractor in writing of the amount so determined within the same period. The final date for payment shall be 7 days later. Provided always that if the Contractor shall have been required by the Main Contract to give to the Employer or to procure the Sub-Contractor to give to the Employer any undertaking as to the completion or maintenance of the Sub-Contract Works, the Sub-Contractor shall not be entitled to payment under this Sub-Contract until be has given a like undertaking to the Contractor or has given the required undertaking to the Employer, as the case may be.

(7)

The Contractor shall not be liable to the Sub-Contractor for any matter or thing ariSing out of or in connection with this Sub-Contract or the carrying out of the Sub-Contract Works unless the Sub-Contractor has made written claim in respect thereof to the Contractor before the Engineer issues the Performance Certificate in respect of the Main Works, or, where under the Main Contract the Main Works are to be completed by sections, the Performance Certificate in respect of the last of such sections in which the Sub-Contract Works are comprised. Every written notification given by the Contractor to the Sub-Contractor of amounts of payments due to the Sub-Contractor under this Sub-Contract shall specify the amount (if any) of the payment made or proposed to be made and the basis on which that amount was calculated. In the event of the Contractor withholding any payment after any final date

(8)

(9)

Form of Sub-Contract and Agreement Page 15

for payment hereunder, he shall notify the Sub-Contractor of his reasons in writing not less than one day before the final date for payment specifying the amount proposed to be withheld and the ground for withholding payment or if there is more than one ground each ground and the amount attributable to it. Determination of the Main Contract

16.

(1)

If the Main Contract is determined for any reason whatsoever before the Sub-Contractor has fully performed his obligations under this Sub-Contract, then the Contractor may at any time thereafter by written notice to the SubContractor forthwith determine the SUb-Contractor's employment under the Sub-Contract and thereupon the Sub-Contractor shall, subject to Clause 11 (Property in Materials and Plant), with all reasonable speed remove his men and the Sub-Contractor's Equipment from the Site. Upon such a determination of the Sub-Contractor's employment, the other provisions of this Sub-Contract shall cease to have effect and subject to sub-clause (3) hereof, the Sub-Contractor shall be entitled to be paid the full value, calculated by reference to the Price and to the rates and prices contained in any bill of quantities or schedule forming part of this SubContract, of all work properly done on the Site by the SUb-Contractor and of all materials properly brought and left on the Site by the Sub-Contractor, together with his reasonable costs of removing his Sub-Contractor's Equipment from the Site, but less such sums as the Sub-Contractor has already received on account. Furthermore if at the date of such determination the Sub-Contractor has properly prepared or fabricated off the Site any goods for subsequent incorporation in the Sub-Contract Works and he shall deliver such goods to the Site or to such other place as the Contractor may reasonably direct, then he shall be paid for such goods as for materials properly brought and left on the Site by him. Provided always that nothing herein shall affect the rights of either party in respect of any breach of this SUb-Contract committed by the other prior to such determination, nor any right which accrued to the Sub-Contractor prior to such determination to receive any payment which is not in respect or on account of the Price.

(2)

(3)

If the Main Contract is determined by the Employer in consequence of any breach of this Sub-Contract by the Sub-Contractor, then the provisions of the preceding sub-clause as to payment shall not apply, but the rights of the Contractor and the Sub-Contractor hereunder shall be the same as if the Sub-Contractor had by such breach repudiated this SUb-Contract and the Contractor had by his notice of determination under sub-clause (1) of this Clause elected to accept such repudiation. If:

SubContractors Default

17.

(1 )

(a)

the Sub-Contractor is in breach of the Sub-Contract in suspending performance of his obligations under the SubContract; or the Sub-Contractor fails to proceed with the Sub-Contract Works with due diligence after being required in writing so to do by the Contractor; or the Sub-Contractor fails to execute the SUb-Contract Works or to perform his other obligations in accordance with the

(b)

(c)

Fo"" of Sub-Contract and Agreement Page 16

Sub-Contract after being required in writing so to do by the Contractor; or (d) the Sub-Contractor refuses or neglects to remove defective materials or make good defective work after being directed in writing so to do by the Contractor; or the SUb-Contractor becomes bankrupt or has a receiving order or administration order made against him or presents his petition in bankruptcy or makes an arrangement with or assignment in favour of his creditors or agrees to carry out the SUb-Contract under a committee of inspection of his creditors or (being a corporation) goes into liquidation (other than a voluntary liquidation for the purposes of amalgamation or reconstruction); or . the Contractor is required by the Engineer to remove the Sub-Contractor from the Works after due notice in writing from the Engineer to the Contractor in accordance with the Main Contract

(e)

(f)

then in any such event and without prejudice to any other rights or remedies, the Contractor may by written notice to the Sub-Contractor forthwith determine the Sub-Contractor's employment under this SubContract and thereupon the Contractor may take possession of a/l materials, Sub-Contractor's Equipment and other things whatsoever brought on to the Site by the Sub-Contractor and may use them for the purpose of executing, completing and maintaining the SUb-Contract Works and may, if he thinks fit, sell all or any of them and apply the proceeds in or towards the satisfaction of monies otherwise due to him from the SubContractor. (2) Upon such a determination, the rights and liabilities of the Contractor and the Sub-Contractor shall, subject to the preceding sub-clause, be the same as if the Sub-Contractor had repudiated this Sub-Contract and the Contractor had by his notice of determination under the preceding subclause elected to accept such repudiation. The Contractor may in lieu of giving notice of determination under this Clause take part only of the Sub-Contract Works out of the hands of the Sub-Contractor and may by himself, his servants or agents execute, complete and maintain such part and in such event the Contractor may recover his reasonable costs of so doing from the Sub-Contractor, or deduct such costs from monies otherwise becoming due to the SubContractor. If any dispute or difference shall arise between the Contractor and the SubContractor in connection with or arising out of the Sub-Contract or the carrying out of the Sub-Contract Works (excluding a dispute concerning VAT but including a dispute as to any act or omission of the Engineer) whether arising during the progress of the Sub-Contract Works or after their completion it shall be settled in accordance with the following provisions.

(3)

Disputes

18.

(1)

(2)

(a)

Where the Sub-Contractor seeks to make a submission that payment is due of any amount exceeding the amount determined by the Contractor as due to the Sub-Contractor, or that any act, decision, opinion, instruction or direction of

Form of Sub-Contract and Agreement Page 17

the Contractor or any other matter arising under the SubContract is unsatisfactory, the Sub-Contractor shall so notify the Contractor in writing, stating the grounds for such submission in sufficient detail for the Contractor to understand and consider the Sub-Contractor's submission. (b) Where in the opinion of the Contractor such a submission gives rise to a matter of dissatisfaction under the Main Contract, the Contractor shall so notify the Sub-Contractor in writing as soon as possible. In that event, the Contractor shall pursue the matter of dissatisfaction under the Main Contract promptly and shall keep the Sub-Contractor fully informed in writing of progress. The SUb-Contractor shall promptly provide such information and attend such meetings in connection with the matter of dissatisfaction as the Contractor may request. The Contractor and the SubContractor agree that no such submission shall constitute nor be said to give rise to a dispute under the Sub-Contract unless and until the Contractor has had the time and opportunity to refer the matter of dissatisfaction to the Engineer under the Main Contract and either the Engineer has given his decision or the time for the giving of a decision by the Engineer has expired. The Contractor or the Sub-Contractor may at any time before service of a notice to refer to arbitration under Clause 20(6) by notice in writing seek the agreement of the other for the dispute to be considered Dispute Adjudication Board procedures under Clause 20.4. of the Main Contract If the other party agrees to this procedure any recommendation of the Dispute Adjudication Board shall be deemed to have been accepted as finally determining the dispute unless and until a notice of dissatisfaction has been given by either party. The Contractor and the Sub-Contractor each has the right to refer any dispute under the Sub-Contract for adjudication by the Dispute Adjudication Board. Unless the adjudicator has already been appointed he is to be appointed in accordance with Sub-Clauses 20.2 and 20.3 of the Main Contract. The adjudicator shall reach a decision within the times allowed in Sub-Clause 20.4. The adjudicator shall act impartially.

(3)

(a)

(b)

(4)

(a)

(b)

(c)

(d) (5)

The decision of the Dispute Adjudication Board shall be binding until the dispute is finally determined by legal proceedings or by arbitration (if the Sub-Contract provides for arbitration or the parties otherwise agree to arbitration ). The Dispute Adjudication Board shall not be liable for anything done or omitted in the discharge or purported discharge of its functions as adjudicator unless the act or omission is in bad faith and any employee or agent of the adjudicator shall Similarly not be liable.

(6)

Form of Sub-Contract and Agreement Page 18

(7)

(a)

All disputes arising under or in connection with the SubContract, other than failure to give effect to a decision of an adjudicator, shall, following the failure to reach agreement through Adjudication and Amicable Settlement be finally determined by reference to arbitration. The party seeking arbitration shall serve on the other party a notice in writing to refer the dispute to arbitration. The arbitrator shall be a person appointed in accordance with the provisions of the main Contract. If an arbitrator declines the appointment or after appointment is removed by order of a competent court or is incapable of acting or dies and the parties do not within one month of the vacancy arising fill the vacancy then either party may apply to the Association of Professional Engineers of Trinidad and Tobago (APETT), The Professional Centre, 11-13 Fitz Blackman Drive, Port of Spain. to appoint another arbitrator to fill the vacancy. Any reference to arbitration under this Clause shall be deemed to be a submission to arbitration within the meaning of the Arbitration Act Chapter 4:01 of the laws of Trinidad and Tobago (1980) or any statutory re-enactment or amendment thereof for the time being in force. The reference shall be conducted in accordance with the procedure set out in the Second Schedule or any amendment or modification thereof being in force at the time of the appointment of the arbitrator. In the event of any inconsistency between the procedure set out in the Second Schedule and this Clause, this Clause shall prevail. Neither party shall be limited in the arbitration to evidence or argument put to any adjudicator pursuant to sub-clause 20.4 of the Main Contract. The award of the arbitrator shall be binding on the parties. Unless the parties otherwise agree in writing any reference to arbitration may proceed notwithstanding that the SubContract Works are not then complete or alleged to be complete. The arbitrator shall have full power to open up, review and revise any decision, opinion, instruction, direction or valuation of the Contractor or an adjudicator. If, when a dispute in connection with the Main Contract (hereinafter called a Main Contract Dispute) is referred to the Dispute Adjudication Board under the Main Contract, and the Contractor is of the opinion that the Main Contract Dispute has any connection with the Sub-Contract Works then the Contractor may by notice in writing require that the SubContractor shall as soon as is practicable provide such information and attend such meetings in connection with the Main Contract Dispute as the Contractor may request.

(8)

(a)

(b)

(9)

(a)

(b)

(c) (d)

(e)

(10)

(a)

Form of Sub-Contract and Agreement Page 19

(b)

If a Main Contract Dispute has been referred to the Dispute Adjudication Board under the Main Contract and the Contractor is of the opinion that the Main Contract Dispute has any connection with a dispute which is to be (but has not yet been) referred for conciliation or adjudication under this Sub-Contract (hereinafter called a Connected Dispute), the Contractor may by notice in writing require that the Connected Dispute be referred to the conciliator or adjudicator to whom the Main Contract Dispute has been referred. If the Contractor is of the opinion that a Main Contract Dispute has any connection with a dispute in connection with the Sub-Contract (hereinafter called a Related Sub-Contract Dispute) and the Main Contract Dispute is referred to an arbitrator under the Main Contract, the Contractor may by notice in writing require that the Sub-Contractor provide such information and attend such meetings in connection with the Main Contract Dispute as the Contractor may request The Contractor may also by notice in writing require that any Related Sub-Contract Dispute be dealt with jOintly with the Main Contract Dispute and in like manner. In connection with any Related Sub-Contract Dispute the Sub-Contractor shall be bound in like manner as the Contractor by any award by an arbitrator in relation to the Main Contract Dispute. If a dispute arises under or in connection with the SubContract (hereinafter called a Sub-Contract Dispute) and the Contractor is of the opinion that the Sub-Contract Dispute raises a matter or has any connection with a matter which the Contractor wishes to refer to arbitration under the Main Contract, the Contractor may by notice in writing require that the Sub-Contract Dispute be finally determined jointly with any arbitration to be commenced in accordance with the Main Contract. In connection with the Sub-Contract Dispute, the Sub-Contractor shall be bound in like manner as the Contractor by any award by an arbitrator concerning the matter referred to arbitration under the Main Contract.

(c)

(d)

(11)

All matters and information placed before the Dispute Adjudication Board pursuant to a reference under sub-clause 20.4 of the Main Contract shall be deemed to be submitted to him without prejudice and the Dispute Adjudication Board shall not be called as witness by the parties or anyone claiming through them in connection with any adjudication, arbitration or other legal proceedings arising out of or connected with any matter so referred to him. The Sub-Contractor is deemed not to have allowed in the Price for any tax payable by him as a taxable person to the Commissioners of Customs and Excise. Tax invoices shall not be submitted to the Contractor by the SubContractor. Where the Sub-Contractor is registered as a taxable person under the Value Added Tax Act as amended from time to time there shall be added to the amount of every payment made by the Contractor to the Subcontractor pursuant to Clause 15 and paid by the Contractor a separately identified

Value Added Tax

19.

(1)

(2)

(3)

Form of Sub-Contract and Agreement Page 20

amount equal to the amount of tax properly payable by the Sub-Contractor in respect of the taxable supply to which the payment made under Clause 15 (3) relates.

(4)

Where the Contractor makes any provision pursuant to Clause 4 (Contractor's Facilities) and that provision is a taxable supply to the SubContractor by the Contractor the Sub-Contractor shall pay tax to the Contractor in accordance with the requirements of the Contractor at the rate properly payable by the Contractor to the Commissioners of Customs and Excise.

Law of SubContract Performance Security

20.
21.

The Law of the Country applying to the Main Contract shall apply to this SubContract The Sub-Contractor shall provide a performance security to the Contractor worded identically to either Annex C EXAMPLE FORM OF PERFORMANCE SECURITY - DEMAND GUARANTEE

Or Annex D EXAMPLE FORM OF PERFORMANCE SECURITY - SURETY BOND

The amount of the bond or guarantee shall be 10% of the Accepted Contract Price The performance security shall be provided within 14 days of the acceptance of the tender. No work on site is to be started until the performance security has been received by the Contractor.

Fonn of Sub-Contract and Agreement Page 21

FIRST SCHEDULE PARTICULARS OF MAIN CONTRACT The applicable standard conditions of Main Contract on which the Main Contract is based is the FIDIC Construction Contract First Edition 1999.

Brief Description of Main Works:


The Works comprise the erection of a Secondary School on the site of the existing Aranguez Junior Secondary School, Boundary Road Extension in the County of St. George East, Trinidad and Tobago. The School is approximately 15,000 square metres the buildings range from one to three floors. The structure is of reinforced concrete.

Bills of Quantities
The Bills of Quantities for the Main Contract Comprise the following: Preliminaries/General Conditions Provisional Sums & Oayworks Block A Block B1 Block B2 Block C Block D Block E Block F Block G Block H Block J Block K Administration Block Classroom Block B1 Classroom Block B2 Cafeteria Multipurpose Hall Science & Technical Block Visual & Performing Arts Guard Booth Farm Buildings Maintenance & Security Block Pavilion Services Building External Works

Date(s) on which Main Contractor will be submitting statements to the Employer - 'Specified Date':
The Main Contractor will submit Applications for Interim Certificates at the end of each month during the contract period.

Minimum amount of Interim Certificates under Main Contract:

TT$1,000,000.00

Form of Sub-Contract and Agreement Page 22

SECOND SCHEDULE

(A)

Further Documents forming part of the Sub-Contract


Employer's Drawings Designs - Tenderer's Drawings and calculations to be submitted General Specification Tenderer's Priced Schedule of Quantities

(8)

Sub-Contract Works
The manufacture, supply and installation of Air Conditioning and Ventilation Systems to the Aranguez Junior Secondary School, Boundary Road Extension in the County of st. George East, Trinidad and Tobago.

(C)

Fluctuation Provisions (if any) affecting payments under this Agreement


No mechanism for recovery of cost increases due to fluctuations in the prices of materials, labour, plant, supervision, or any other resource required for the erection and completion of the Sub-Contract Works is included in this Sub-Contract or the Main Contract.

(D)

Arbitration Procedure
Arbitration shall be carried out in accordance with the procedures set out in the Main Contract in Clause 20.

Form of SUb-Contract and Agreement Page 23

THIRD SCHEDULE (A) The Price shall be the total amount inserted in the Letter of Tender. This amount is deemed to be the same as the total of the priced Schedule of Quantities submitted by the Sub-Contractor and incorporated in the Second Schedule. The price is deemed to include all necessary materials, labour, plant, supervision, insurances, head office overheads and the like and no adjustments shall be made unless in accordance with a Variation issued under Clause 8 hereof. This express statement is intended to make the price limit and define the Sub-Contract Works in terms of Clause 9 (4). (i) (ii) (iii) (C) Percentage of Retention - Works Percentage of Retention - Materials on Site Limit of Retention 5%

(8)

20% Where listed in Main Contract


5% of the Accepted Contract Amount

(i)

Percentages to allow on the Prime Cost of Labour for sub-contractor's profit, overheads, attendances and other costs associated with the employment of labour Tenderer to Insert

- --_%

(ii)

Percentages to allow on the Prime Cost of Materials for sub-contractor's profit, overheads, attendances, loading, transportation, off loading and storage on site and other costs associated with the supply of materials. Tenderer to Insert

- -- _%

(iii)

Percentages to allow on the Prime Cost of Plant for sub-contractor's profit, overheads, attendances, fuels, oils, other consumables and other costs associated with the operation of plant. Tenderer to Insert

- - -_ %

(D)

Period for Completion

The Main Contract extends over a 730 calendar day period. The Nominated Subcontractor for Air Conditioning and ventilation Systems is to provide a programme which will allow work on site to commence and be completed at the times indicated on the Main Contract Outline Programme. The Nominated Subcontractor will thereafter adjust its programme in consultation with the Main Contractor and this programme will be incorporated in the main Contractor's Programme in accordance with Clause 8.3 of the Main Contract. (E) Minimum Payment Amount

TT$100,OOO.00

Form of S. b-Contract and Agreement Page 24 u

FOURTH SCHEDULE Contractor's Facilities PART I - Common Facilities (Clause 4 (2)) (A) Contractor's Equipment Standing scaffolding Power for small tools Terms and Conditions

(8) Other Facilities

Form of Sub-Contract and Agreement Page 25

FOURTH SCHEDULE Contractor's Facilities PART 11- Exclusive Facilities (Clause 4 (3)) (A) Contractor's Equipment Terms and Conditions

(8) Other Facilities

Form of Sub-Contract and Agreement Page 26

FIFTH SCHEDULE INSURANCES Part I Sub Contractor's Insurances

The Sub-Contractor is to provide insurances to cover any risks properly the responsibility of the SubContractor where such risks are not covered by the Main Contract Insurances. Part" Contractor's Policy of Insurance The Main Contract Insurance provisions are as set out in the General Conditions of Contract. The following particulars are contained in the Letter of Tender Appendix:

Periods for submission of insurance:

(a) evidence of insurance

18.1

Within 14 days of the Letter of Acceptance Commencement Date TI$ 200,000.00

(b) relevant policies Maximum amount of deductibles for insurance of the Employer's risks Minimum amount of third insurance party

18.1 18.2(d)

18.3

TI$ 6,500,000.00 with no limit on the number of occurrences.

Form of SUb-Contract and Agreement Page 27

IN WITNESS whereof the parties hereto have caused this Agreement to be executed the day and year first above written

THE COMMON SEAL of the above named Contractor was hereunto affixed as a Deed in the presence of

DIRECTOR

DIRECTOR/SECRETARY

THE COMMON SEAL of the above named Sub-Contractor was hereunto affixed as a Deed in the presence of

DIRECTOR

DIRECTOR/SECRETARY

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