You are on page 1of 56

ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 1

First English Edition 2015

Form of Main Contract


E1(A) for Building Projects
(With Quantities)

SAMPLE

CyJCCT: Cyprus Joint Construction Contracts Tribunal

Members: Cyprus Association of Civil Engineers and Architects


Document serial number: Cyprus Architects’ Association
Cyprus Association of Civil Engineers
Cyprus Association of Chartered Quantity Surveyors
Cyprus Federation of Building Contractors Associations
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 2

E1(A) Form of Main Contract for Building Projects


(With Quantities)
First Edition: July 1996
COPYRIGHTS: The Cyprus Joint Construction Contracts Tribunal
Constituent bodies: Cyprus Association of Civil Engineers and Architects
Cyprus Architects’ Association
Cyprus Association of Civil Engineers
Cyprus Association of Chartered Quantity Surveyors
Cyprus Federation of Building Contractors Associations

All Rights Reserved


No part of this publication may be reproduced or transmitted in any document or by any means without the
permission of the Publisher.
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 3

FORWARD

The Conditions of the E1(A) Form of Contract for Building Projects (With Quantities), First Edition, July 1966,
were prepared by the Cyprus Joint Construction Contracts Tribunal and are recommended for use in building
projects executed in the Republic of Cyprus where the Main Contract includes Bills of measured and firm
quantities of work.

The Publisher

The Cyprus Joint Construction Contracts Tribunal


ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 4
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 5

CONTENTS

Clause Pages

Articles of Contract Agreement 1


1: Definitions and interpretations 4
2: Contractor’s obligations 5
3: Architect’s instructions 6
4: Contract Documents 6
5: Statutory obligations, notices, fees and charges 7
6: Levels and setting out of the Works 8
7: Materials, goods and workmanship to conform to description, testing and inspection 8
8: Royalties and patent rights 9
9: Site Agent 9
10: Right of access for the Employer and the Architect to the Works 9
11: Clerk of Works 9
12: Variations, Provisional Sums, Prime Cost Sums and Prime Cost Rates 10
13: Contract Bills 11
14: Contract Sum 11
14A: Value Added Tax 11
15: Unfixed materials and goods 12
16: Practical Completion and Defects Liability Period 12
17: Partial possession by Employer 12
18: Assignment or sub-letting 13
19: Injury to persons and property and Employer’s indemnity 13
20: Insurance against injury to persons and property 14
21: Insurance of the Works and/or of existing structures and their contents 15
22: Possession, completion and postponement 24
23: Damages for non-completion 24
24: Extension of time 24
25: Loss and expense caused by disturbance of the regular progress of the Works 25
26: Determination by Employer 26
27: Determination by Contractor 27
28: Nominated Sub-Contractors 29
29: Nominated Suppliers 31
30: Artists and tradesmen 33
31: Certificates and payments 33
32: Fluctuations in labour cost and in the prices of materials 37
33: Outbreak of hostilities 40
34: War Damage 40
35: Antiquities 41
36: Settlement of disputes 41
37: Performance Guarantee 44
38: Advance Payments 45
39: Interest on outstanding payments 45
40: Subsequent legislation 46
Appendix to the Contract Conditions 47
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 6
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 1

ARTICLES OF CONTRACT AGREEMENT


An Agreement made the …………………………… day of the month …………………………………… of the year ……………….

BETWEEN ………………………………………………………………………………………………………………………………………….

of (or whose registered office is situated at) …………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………………

(hereinafter called “the Employer”) of the one part and …………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………………

of (or whose registered office is situated at) ………………………………………………………………………………………………….

……………………………………………………………………………………………………………………………………………………………..

(hereinafter called “the Contractor”) of the other part.

WHEREAS the Employer is desirous of erecting* ………………………………………………………………………………………...

……………………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………………

(hereinafter referred to as “the Works”) at ……………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………………

and has caused Drawings and Bills of Quantities which show and describe the Works to be executed to be prepared
respectively by the Architect referred to in paragraph 3. and the Quantity Surveyor referred to in paragraph 4. of
these Articles of Contract Agreement.

AND WHEREAS the Contractor has supplied the Employer with a fully priced copy of the said Bills of Quantities
(hereinafter referred to as “the Contract Bills”) AND WHEREAS the said Drawings which are numbered and
registered in the Contract Bills (hereinafter referred to as “the Contract Drawings”) and the Contract Bills have been
signed by or on behalf of the parties hereto:

NOW IT IS HEREBY AGREED AS FOLLOWS:

1. For the consideration hereinafter mentioned, the Contractor will upon and subject to the Contract Conditions
annexed hereto (hereinafter referred to as “the Conditions”), carry out, complete and maintain the Works
shown upon, described by or referred to in the Contract Documents (as these are defined in the said Conditions).

2. The Employer will pay to the Contractor the sum of (in words) ………………………………………………………………

……………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………(€ ……………………………………………….)

exclusive of Value Added Tax (hereinafter referred to as “the Contract Sum”) or such other sum as may become
payable hereunder at the times and in the manner specified in the said Conditions.

3. The term “the Architect” in these Articles of Contract Agreement and in the said Conditions shall mean

……………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………….

* State nature of intended Works.

1
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 2

of …………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………... or, in the event of his death or ceasing to be the

Architect for the purpose of this Contract, such other person as the Employer shall nominate for that purpose,
not being a person to whom the Contractor shall object for reasons considered to be sufficient by an Arbitrator
appointed, or as the case may be, the two Arbitrators or the Umpire appointed, in accordance with Clause 36
of the said Conditions. Provided always that no person subsequently appointed to be the Architect under this
Contract shall be entitled to disregard or overrule any Certificate or opinion or decision or approval or
instruction given or expressed by the Architect for the time being.

4. The term “the Quantity Surveyor” in these Articles of Contract Agreement and in the said Conditions shall
mean ……………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………

of ……………………………………………………………………………………………………………………………………………….

……………………………………………………………………………………….. or, in the event of his death or ceasing to be

the Quantity Surveyor for the purpose of this Contract, such other person as the Employer shall nominate for
that purpose, not being a person to whom the Contractor shall object for reasons considered to be sufficient by
an Arbitrator appointed or, as the case may be, the two Arbitrators or the Umpire appointed, in accordance with
Clause 36 of the said Conditions.

2
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 3

AS WITNESS the hands of the parties hereto the date and year first above written

Signed by or on behalf of the Employer

Name:………………………………………………………………… (signature)………………………………………………………

Description:………………………………………………………….

In the presence of:

Name…………………………………………………………… (signature)……………………………………………………….

Address…………………………………………………………

Description……………………………………………………..

and

Name…………………………………………………………… (signature)……………………………………………………….

Address…………………………………………………………

Description…………………………………………………..

Signed by or on behalf of the Contractor

Name:………………………………………………………………… (signature)………………………………………………………

Description:………………………………………………………….

In the presence of:

Name…………………………………………………………… (signature)……………………………………………………….

Address…………………………………………………………

Description……………………………………………………..

and

Name…………………………………………………………… (signature)……………………………………………………….

Address…………………………………………………………

Description……………………………………………………..

3
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 4

THE CONDITIONS HEREINBEFORE REFERRED TO:


Clause 1: Definitions and interpretations
(1) In the Contract, as hereinafter defined, the following words and expressions shall have the meaning hereby
assigned to them, except where the context otherwise requires:

― “Employer” shall be deemed to mean the party named in the Articles of Contract Agreement who employs
the Contractor to carry out and complete the Works and the legal successors in title to the Employer, but
not, except with the consent of the Contractor, any assignee of the Employer.

― “Contractor” shall be deemed to mean the person or persons, firm or company named in the Articles of Con-
tract Agreement who is employed by the Employer to carry out, complete and maintain the Works and
includes the Contractor’s legal successors in title, personal representatives and permitted assigns.

― “Architect” shall be deemed to mean the Architect or Civil Engineer designated as Architect in the Articles
of Contract Agreement or, pursuant to the provisions of paragraph 3 of the Articles of Contract Agreement,
any other Architect or Civil Engineer appointed from time to time by the Employer to act as the Architect
for the purposes of the Contract in place of the Architect or Civil Engineer so designated.

― “Quantity Surveyor” shall be deemed to mean the Quantity Surveyor designated as such in the Articles of
Contract Agreement or, pursuant to the provisions of paragraph 4 of the Articles of Contract Agreement,
any other Quantity Surveyor appointed from time to time by the Employer to act as the Quantity Surveyor
for the purposes of the Contract in place of the Quantity Surveyor so designated. Provided always that the
Quantity Surveyor shall have no authority or obligation to decide on anything concerning the determination
or the allocation of responsibilities or liabilities in this Contract.

― “the Republic” or “the State” shall be deemed to mean the Republic of Cyprus.

― “Statutory Authorities” shall refer to Statutory Authorities of the Republic and shall be deemed to mean
any Executive Authorities or Governmental Instruments or any other carriers of Executive Power and also
Legal Persons of Public Nature and Local Authority Organisations.

― “Drawings” shall be deemed to mean the drawings which are numbered and referred to in the General
Conditions and Specifications.

― “Contract Bills” shall be deemed to mean the document which incorporates the Bills of Preliminaries and
General Conditions, the Bills of Measured and Estimated Works and the General Pricing Summary.

― “General Conditions and Specifications” shall be deemed to mean the document which incorporates the
Instructions to Tenderers, the Form of Tender, the Contract Bills, the Technical Specifications and any
other document as may be specified therein as forming part of the General Conditions and Specifications.

― “Notice of Acceptance” shall be deemed to mean the letter with which the Employer accepts officially the
Contractor’s tender.

― “Conditions” shall be deemed to mean these Conditions, including the attached Appendix.

― “Contract” or “Contract Documents” shall be deemed to mean when signed by or on behalf of the Employer
and the Contractor, the Drawings, the priced and completed General Conditions and Specifications, the
Notice of Acceptance, the completed Articles of Contract Agreement and these Conditions.

― “Contract Sum” shall be deemed to mean the sum stated in the Articles of Contract Agreement subject to
such additions thereto or deductions therefrom as may be made under the express provisions of these
Conditions.

― “Works” shall be deemed to mean the whole of the works referred to in the Articles of Contract Agreement
as these are shown upon, described by or referred to in the Contract Documents and shall include all non
permanent works of every kind required in or about the carrying out, completion and maintenance of the
permanent works in accordance with the provisions of this Contract.

4
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 5

― “the Site” shall be deemed to mean the land on, under, in or through which the Works are to be executed
and any other lands or other places provided by the Employer to the Contractor for working space or for
any other purpose in connection with this Contract, as may be specifically designated as such in the Contract
Documents.

― “Provisional Sums” shall be deemed to mean sums provided in the Contract Bills for work or expenses
which cannot be entirely foreseen, defined or detailed at the time of issue of the tender documents.

― “Provisional items” shall be deemed to mean provisional items of work or provisional quantities of work
provided in the Contract Bills for work or expenses the necessity and requirement of which cannot be
finalized at the time of issue of the tender documents.

― “Prime Cost Sums” or “P.C. Sums” shall be deemed to mean sums provided in the Contract Bills for work
to be executed by Nominated Sub-Contractors or Statutory Authorities or for materials or goods to be
supplied by Nominated Suppliers.

― “Prime Cost Rates” or “P.C. Rates” shall be deemed to mean provisional unit rates provided in the Contract
Bills for purchasing materials or goods from Nominated Suppliers.

― “work” shall be deemed to mean work, service or other relevant obligation.

― “day” shall be deemed to mean calendar day “week” shall be deemed to mean calendar week and “month”
shall be deemed to mean Gregorian calendar month.

― “date for the submission of tenders” or “date for tenders” shall be deemed to mean the date on which the
Contractor submits to the Employer his tender for the execution, completion and maintenance of the Works,
as this date is specified in the Notice of Acceptance.

― “material date for the submission of tenders” or “material date for tenders” shall be deemed to mean the
date 42 days before the date for the submission of tenders.

― “expenses” shall be deemed to mean any direct actual financial expenses and incurred charges, and “losses”
shall be deemed to mean any direct actual financial losses including any losses in respect of loss of profit.

(2) In these Conditions:

(a) where the context and the meaning of the phrase so requires, words importing the singular only, shall also
include the plural and vice versa,

(b) the headings of the Clauses shall not be deemed to be part thereof nor they shall be taken into
consideration in the construction or the interpretation of these Conditions.

(c) any Greek word or expression which is set out in these Conditions in a parenthesis shall be deemed as
an explanatory and (where the context and the meaning of the phrase so implies) broadening definition
in the Greek language which will apply to the preceding English word or expression to which it refers.

Clause 2: Contractor’s obligations


(1) The Contractor shall upon and subject to these Conditions, carry out, complete and maintain the Works shown
upon, described by or referred to in the Contract Documents in full compliance therewith, using materials and
workmanship of the quality and standards therein specified, provided always that where and to the extent that
approval of the quality of materials or of the standards of workmanship is a matter for the opinion of the
Architect, such quality and standards shall be to the reasonable satisfaction of the Architect.

(2) If the Contractor shall find any discrepancy in or divergence between any two or more of the following
documents, including a divergence between parts of anyone of them or between documents of the same
description, namely:

(i) the Notice of Acceptance,

5
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 6

(ii) the Contract Drawings,

(iii) the Contract General Conditions and Specifications,

(iv) any instructions issued by the Architect under these Conditions [save insofar as any such instruction
requires a variation in accordance with the provisions of Clause 12(1) of these Conditions], and

(v) any drawings or documents issued by the Architect under Clause 4(3), Clause 4(4) or Clause 6 of these
Conditions,

he shall immediately give to the Architect a written notice specifying the discrepancy or divergence, and the
Architect shall issue instructions in regard thereto.

Clause 3: Architect’s instructions


(1) The Contractor shall [subject to sub-clauses (2) and (3) of this Condition] forthwith comply with all instructions
issued to him by the Architect in regard to any matter in respect of which the Architect is expressly empowered
by these Conditions to issue instructions. If within 7 days after receipt of a written notice from the Architect
requiring compliance with an instruction the Contractor does not comply therewith, then the Employer may
employ and pay other persons to execute any work whatsoever which may be necessary to give effect to such
instruction and all costs incurred in connection with such employment shall be recoverable from the Contractor
by the Employer as a debt or may be deducted by him from any monies due or to become due to the Contractor
under this Contract.

(2) Upon receipt of what purports to be an instruction issued to him by the Architect, the Contractor may request
the Architect to specify in writing the provision of these Conditions which empowers the issue of the said
instruction. The Architect shall forthwith comply with any such request, and if the Contractor shall thereafter
comply with the said instruction (neither party before such compliance having given to the other a written
request to concur in the appointment of an Arbitrator under Clause 36 of these Conditions in order that it may
be decided whether the provision specified by the Architect empowers the issue of the said instruction), then
the issue of the same shall be deemed for all the purposes of this Contract to have been empowered by the
provision of these Conditions specified by the Architect in answer to the Contractor’s request.

(3) All instructions issued by the Architect shall be issued in writing. Any instruction issued orally shall be of no
immediate effect, but shall be confirmed in writing by the Contractor to the Architect within 7 days, and if not
dissented from in writing by the Architect to the Contractor within 7 days from receipt of the Contractor’s
confirmation, the said instruction shall take effect as from the expiration of the latter said 7 days.

Provided always:

(a) that if the Architect within 7 days of giving such oral instruction shall himself confirm the same in writing,
then the Contractor shall not be obliged to confirm as aforesaid, and the said instruction shall take effect
as from the date of the Architect’s confirmation, and

(b) that if neither the Contractor nor the Architect shall confirm such oral instruction in the manner and at
the time aforesaid but the Contractor shall nevertheless comply with the same, then the Architect may
confirm the same in writing at any time prior to the issue of the Final Certificate, and the said instruction
shall thereupon be deemed to have taken effect on the date on which it was issued.

Clause 4: Contract Documents


(1) The Contract Documents shall be signed in duplicate and shall remain in the custody of the Employer and the
Contractor so as to be available at all reasonable times for the inspection of the Architect or of the Quantity
Surveyor.

(2) Immediately after the execution of this Contract the Architect, without charge to the Contractor, shall furnish

6
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 7

him (unless he shall have been previously furnished) with

(a) one copy of the Articles of Contract Agreement and of these Conditions,

(b) two copies of the Contract Drawings, and

(c) two copies of the Contract General Conditions and Specifications and (if requested by the Contractor)
with one copy of the unpriced Contract Bills.

(3) So soon as possible after the execution of this Contract, the Architect, without charge to the Contractor, shall
furnish him (unless he shall have been previously furnished) with two copies of any specifications, descriptive
schedules or other like documents as are reasonably necessary for use in carrying out the Works. Provided
that nothing contained in the said specifications, descriptive schedules or other like documents shall impose any
obligations beyond those imposed by the Contract Documents.

(4) As and when from time to time may be necessary, the Architect, without charge to the Contractor, shall furnish
him with two copies of such drawings and details as are reasonably necessary either to explain and amplify the
Contract Drawings or to enable the Contractor to carry out and complete the Works in accordance with these
Conditions.

(5) The Contractor shall keep on the Site a full set of the copy of the Contract Drawings, one copy of the Contract
General Conditions and Specifications, one copy of the specifications, descriptive schedules or other like
documents referred to in sub-clause (3) of this Condition, and one copy of the drawings and details referred to
in sub-clause (4) of this Condition, so as to be available to the Architect or to his representative at all reasonable
times.

(6) Upon final payment under Clause 31(7) of these Conditions, the Contractor shall, if so requested by the
Architect, forthwith return to the Architect all drawings, details, specifications, descriptive schedules and other
documents of a like nature which bear his name and the name of the Quantity Surveyor.

(7) None of the documents hereinbefore mentioned shall be used by the Contractor for any purpose other than this
Contract and neither the Employer, nor the Architect or the Quantity Surveyor shall divulge or use, except for
the purposes of this Contract, any of the prices in the Contract Bills.

(8) Unless otherwise expressly stated in these Conditions, any Certificate to be issued by the Architect under these
Conditions shall be issued to the Employer with a copy to the Contractor.

Clause 5: Statutory obligations, notices, fees and charges


(1) (a) The Contractor shall comply with, and give all notices required by, any Law of the Republic, any
Ministerial Decree or Regulation issued under any Law of the Republic or by any decree or regulation
of any Statutory Authority which has any jurisdiction with regard to the Works or with whose systems
the same are or will be connected (all requirements to be so complied with being referred to in these
Conditions as “the Statutory Requirements”).

(b) If the Contractor shall find any divergence between the Statutory Requirements and all or any of the
documents referred to in Clause 2(2) of these Conditions or any variation instruction issued in accordance
with Clause 12(1) of these Conditions, he shall immediately give to the Architect a written notice
specifying the divergence.

(c) If the Contractor gives notice under paragraph (b) of this sub-clause or if the Architect shall otherwise
discover or receive notice of a divergence between the Statutory Requirements and all or any of the
documents referred to in Clause 2(2) of these Conditions or any variation instruction issued in accordance
with Clause 12(1) of these Conditions, the Architect shall, within 7 days of the discovery or receipt of
such notice, issue instructions in relation to the divergence. If and insofar as the instructions require the
Works to be varied, they shall be deemed to be Architect‘s instructions issued in accordance with Clause
12(1) of these Conditions.

7
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 8

(d) (i) If any emergency compliance with paragraph (a) of this sub-clause requires the Contractor to supply
materials or execute work before receiving instructions under paragraph (c) of this sub-clause, the
Contractor shall supply such limited materials and execute such limited work as are reasonably
necessary to secure immediate compliance with the Statutory Requirements.

(ii) The Contractor shall forthwith inform the Architect of the emergency and of the steps that he is
taking under this paragraph of this Condition.

(iii) Work executed and materials supplied by the Contractor under sub-paragraph (i) of this paragraph
shall be deemed to have been executed and supplied pursuant to an Architect‘s instruction in
accordance with Clause 12(1) of these Conditions provided that the emergency arose because of a
divergence between the Statutory Requirements and all or any of the documents referred to in
Clause 2(2) of these Conditions or any variation instruction issued in accordance with Clause 12(1)
of these Conditions, and the Contractor has complied with sub-paragraph (ii).

(e) Provided that the Contractor complies with paragraph (b) of this sub-clause, the Contractor shall not be
liable to the Employer under this Contract if the Works do not comply with the Statutory Requirements
where and to the extent that such non-compliance of the Works results from the Contractor having
carried out work in accordance with the documents referred to in Clause 2(2) of these Conditions or
any variation instruction issued in accordance with Clause 12(1) of these Conditions.

(2) The Contractor shall pay and indemnify the Employer against liability in respect of any fees or charges
(including any rates or taxes) legally demandable under any Law of the Republic, any Ministerial Decree or
Regulation issued under any Law of the Republic or by any decree or regulation of any Statutory Authority,
in respect of the Works. Provided that the amount of any such fees or charges (including any rates or taxes
other than Value Added Tax) shall be added to the Contract Sum, unless they:

(a) arise in respect of work executed or materials and goods supplied by a Statutory Authority for which a
Prime Cost Sum is included in the Contract Bills or for which a Prime Cost Sum has arisen as a result of
Architect‘s instructions given under Clause 12(3) of these Conditions, or

(b) are priced or stated by way of a Provisional Sum in the Contract Bills.

(3) None of the provisions of Clause 28 (Nominated Sub-Contractors) nor of Clause 29 (Nominated Suppliers) of
these Conditions shall apply where Prime Cost Sums are included in the Contract Bills or arise as a result of
an instruction by the Architect in regard to the expenditure of Provisional Sums, in respect of any fees or
charges for work executed or materials and goods supplied by a Statutory Authority solely in pursuance of its
Statutory obligations. Such fees or charges shall be dealt with under the provisions of sub-clause (2) of this
Condition and any amount, properly paid by the Contractor to any Statutory Authority, shall be added to the
amount that would otherwise be stated as due in the next Interim Certificate.

Clause 6: Levels and setting out of the Works


The Architect shall determine any levels which may be required for the execution of the Works, and shall furnish the
Contractor, by way of accurately dimensioned drawings, with such information as shall enable the Contractor to set
out the Works at ground level. Unless the Architect shall otherwise instruct, in which case the Contract Sum shall be
adjusted accordingly, the Contractor shall be responsible for and shall entirely at his own cost amend any errors arising
from his own inaccurate setting out.

Clause 7: Materials, goods and workmanship to conform to description, testing and inspection
(1) All materials, goods and workmanship shall be of the respective kinds and standards described in the Contract
Bills.

(2) The Contractor shall upon the request of the Architect furnish him with vouchers to prove that the materials
and goods comply with sub-clause (1) of this Condition.

8
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 9

(3) The Architect may issue instructions requiring the Contractor to open up for inspection any work covered up
or to arrange for or carry out any test of any materials or goods (whether or not already incorporated in the
Works) or of any executed work, and the cost of such opening up or testing (together with the cost of making
good in consequence thereof) shall be added to the Contract Sum unless provided for in the Contract Bills or
unless the inspection or test shows that the work, materials or goods are not in accordance with this Contract.

(4) The Architect may issue instructions in regard to the removal from the Site of any work, materials or goods
which are not in accordance with this Contract.

(5) The Architect may (but not unreasonably or vexatiously) issue instructions requiring the dismissal from the
Works of any person employed thereon.

Clause 8: Royalties and patent rights


All royalties or other sums payable in respect of the supply and use in carrying out the Works as described by or
referred to in the Contract Bills of any patented articles, processes or inventions shall be deemed to have been included
in the Contract Sum, and the Contractor shall indemnify the Employer from and against all claims, proceedings,
damages, costs and expenses which may be brought or made against the Employer or to which he may be put by
reason of the Contractor infringing or being held to have infringed any patent rights in relation to any such articles,
processes and inventions. Provided that where in compliance with Architect‘s instructions the Contractor shall supply
and use in carrying out the Works any patented articles, processes or inventions, the Contractor shall not be liable in
respect of any infringement or alleged infringement of any patent rights in relation to any such articles, processes and
inventions and all royalties damages or other monies which the Contractor may be liable to pay to the persons entitled
to such patent rights shall be added to the Contract Sum.

Clause 9: Site Agent


The Contractor, for the purposes of this Contract, shall constantly keep upon the Works a competent person in charge
who shall be qualified and experienced as specified in the Contract Bills (such person referred to in these Conditions
as “the Site Agent”) and any instructions given to him by the Architect shall be deemed to have been issued to the
Contractor.

Clause 10: Right of access for the Employer and the Architect to the Works
The Employer, the Architect and their representatives shall at all reasonable times have access to the Works and to
the workshops or other places of the Contractor where work is being prepared for the Contract, and when work is to
be so prepared in workshops or other places of a sub-contractor (whether or not a Nominated Sub-Contractor as
defined in Clause 28 of these Conditions) the Contractor shall by a term in the sub-contract, so far as possible, secure
a similar right of access to those workshops or places for the Employer, the Architect and their representatives and
shall do all things reasonably necessary to make such right effective.

Clause 11: Clerk of Works


The Employer shall be entitled to appoint an inspector of the Works whose duty shall be to act solely as inspector of
the Works on behalf of the Employer under the directions of the Architect (such inspector referred to in these
Conditions as “the Clerk of Works”), and the Contractor shall afford every reasonable facility for the performance of
that duty. If any directions are given to the Contractor or to his Site Agent by the Clerk of Works, the same shall be
of no effect unless given in regard to a matter in respect of which the Architect is expressly empowered by these
Conditions to issue instructions and unless confirmed in writing by the Architect within 2 working days of their being
given. If any such directions are so given and confirmed, then, as from the date of confirmation, they shall be deemed
to be Architect‘s instructions.

9
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 10

Clause 12: Variations, Provisional Sums, Prime Cost Sums and Prime Cost Rates
(1) The Architect may issue instructions requiring a variation and he may sanction in writing any variation made
by the Contractor otherwise than pursuant to an instruction of the Architect. No variation required by the
Architect or subsequently sanctioned by him shall vitiate this Contract.

(2) The term “variation” as used in these Conditions means:

(a) the alteration or modification of the design, quality or quantity of the Works as shown upon the Contract
Drawings and described by or referred to in the Contract Bills, and includes the addition, omission or
substitution of any work, the alteration of the kind or standard of any of the materials or goods to be
used in the Works, the removal from the Site of any work executed or materials or goods brought thereon
by the Contractor for the purposes of the Works, other than work, materials or goods which are not in
accordance with this Contract, and

(b) the addition to or omission or alteration of any obligations or restrictions imposed by the Employer on
the Contractor in the Contract Bills in regard to access to the Site or use of any specific parts thereof,
limitations of working space, limitations of working hours and the execution or completion of the Works
or any part thereof, in any specific order.

(3) The Architect shall issue instructions in regard to the execution of work concerning Provisional items and to
the expenditure of Provisional Sums, Prime Cost Sums and Prime Cost Rates included in the Contract Bills as
well as of Prime Cost Sums and Prime Cost Rates which arise as a result of instructions issued in regard to the
expenditure of Provisional Sums.

(4) All variations required by the Architect or subsequently sanctioned by him in writing and all work executed by
the Contractor for which Provisional Sums are included in the Contract Bills [other than work for which a
tender made under Clause 28(g) of these Conditions has been accepted] as well as all work executed or not
executed by the Contractor for which the Contract Bills include Provisional items and Prime Cost Rates, shall
be measured and valued, on behalf of the Architect, by the Quantity Surveyor who (in all cases where, for the
purposes of the valuation, it is necessary for the work to be measured on the spot) shall give to the Contractor
an opportunity of being present at the time of such measurement and of taking such notes and measurements
as the Contractor may require. The valuation of the said variations and work shall, unless otherwise agreed
between the Contractor and the Architect, be made in accordance with the following rules:

(a) The prices in the Contract Bills shall determine the valuation of work of similar character executed under
similar conditions as work priced therein.

(b) The said prices, where work is not of a similar character or executed under similar conditions as aforesaid,
shall be the basis of prices for the same so far as may be reasonable, failing which a fair valuation thereof
shall be made.

(c) Where work cannot properly be measured and valued, the Contractor shall be allowed:

(i) the cost of such work priced on “Dayworks” on the basis of the Contractor’s relevant unit rates in
the Contract Bills, or

(ii) in case where no unit rates for “Dayworks” are included in the Contract Bills, the cost of such work
priced on unit rates to be agreed between the Quantity Surveyor and the Contractor.

Provided that, in any case, vouchers specifying the time daily spent upon the work (and if required by
the Architect the workmen’s names) and the materials employed shall be delivered for verification to the
Architect not later than the end of the week following that in which the work has been executed.

(d) The prices in the Contract Bills shall determine the valuation of work omitted, provided that if omissions
substantially vary the conditions under which any remaining work is carried out, the prices for such
remaining work shall be valued under rule (b) of this sub-clause.

10
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:21 11

(5) The valuation of variations under sub-clause (4) of this Condition as well as the valuation of work for which
Provisional Sums, Provisional items and Prime Costs Rates are included in the Contract Bills under the said sub-
clause, shall have effect in Interim Certificates and to the adjustment of the Contract Sum in accordance with
Clause 31(6)(c) of these Conditions.

(6) If upon a relevant written notice being given to him by the Contractor, the Architect is of the opinion that a
variation or the execution by the Contractor of work for which a Provisional Sum is included in the Contract
Bills [other than work for which a tender made under Clause 28(g) of these Conditions has been accepted] or
the execution or the non execution by the Contractor of work for which the Contract Bills include Provisional
items and Prime Cost Rates, has involved or is likely to involve the Contractor in direct loss and/or expense for
which he would not be reimbursed by payment through a valuation made in accordance with the rules contained
in sub-clause (4) of this Condition and if such written notice is given within a reasonable time of it becoming
or reasonably should have become apparent to the Contractor that he has incurred or he is likely to incur the
direct loss and/or expense, then, provided that the Contractor, within reasonable time (having regard to the date
of the aforesaid notice) shall submit to the Architect a written application in this respect (which application shall
include full details of the said direct loss and/or expense) the Architect shall instruct the Quantity Surveyor to
ascertain the amount of such loss and/or expense. Any amount from time to time so ascertained shall be added
to the Contract Sum and if an Interim Certificate is issued after the date of ascertainment, any such amount shall
be added to the amount which would otherwise be stated as due in such Certificate.

Clause 13: Contract Bills


(1) The quality and quantity of the Works included for in the Contract Sum shall be deemed to be that which is set
out in the Contract Bills which Bills, unless otherwise expressly stated therein in respect of any specified item
or items, shall be deemed to have been prepared in accordance with the Method of Measurement referred to
therein. Provided always that (save as aforesaid and except for any deletions from and insertions or
amendments to these Conditions expressly stated in the said Contract Bills) nothing contained in the other
Contract Documents shall override, modify, or affect in any way whatsoever the application or interpretation
of that which is contained in the Articles of Contract Agreement and these Conditions.

(2) Any departure from the method of preparation of the Contract Bills referred to in sub-clause (1) of this
Condition or any error in the description or in the quantity or from the omission of any items from the Contract
Bills, shall not vitiate this Contract but shall be corrected and deemed to be a variation required by the Architect.

Clause 14: Contract Sum


The Contract Sum shall not be adjusted or altered in any way whatsoever otherwise than in accordance with the
express provisions of these Conditions and, subject to Clause 13(2) of these Conditions, any error whether of arithmetic
or not which might have occurred in the computation of the Contract Sum shall be deemed to have been accepted by
the parties hereto.

Clause 14A: Value Added Tax


(1) In these Conditions, “VAT” means the Value Added Tax which is payable under Law 246/90 of the Republic
(in this Condition referred to as “the VAT Law”) under the care and management of the Commissioner for
Value Added Tax (in this Condition referred to as “the Commissioner”)

(2) Any reference in these Conditions to “Contract Sum” shall be regarded as such Sum exclusive of any VAT and
recovery by the Contractor from the Employer of the VAT properly chargeable by the Commissioner on the
Contractor under or by virtue of the VAT Law or any amendment thereof on the supply of goods and/or the
provision of services under this Contract, shall be made under or by virtue of the provisions of the VAT Law
or any subsequent amendment thereof.

11
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 12

Clause 15: Unfixed materials and goods


Unfixed materials and goods delivered to, placed on or adjacent to the Works intended for incorporation therein shall
not be removed except for use upon the Works unless the Architect has consented in writing to such removal, which
consent shall not be unreasonably withheld. Where the value of any such materials and goods has in accordance with
Clause 31(2) of these Conditions been included in any Interim Certificate under which the Contractor has received
payment, such materials and goods shall become the property of the Employer, but the Contractor shall remain
responsible for any loss or damage to the same.

Clause 16: Practical Completion and Defects Liability Period


(1) When in the opinion of the Architect the Works are practically completed, he shall forthwith issue a Certificate
to that effect and Practical Completion of the Works shall de deemed for all the purposes of this Contract to
have taken place on the day named in such Certificate.

(2) Any defects, shrinkages or other faults which shall appear within the Defects Liability Period stated in the
Appendix to these Conditions and which are due to materials or workmanship not in accordance with this
Contract or to frost occurring before Practical Completion of the Works, shall be specified by the Architect in
a Schedule of Defects which he shall deliver to the Contractor within a reasonable time after the expiration of
the said Defects Liability Period, and, within a reasonable time after receipt of such Schedule, the defects,
shrinkages and other faults therein specified shall be made good by the Contractor and (unless the Architect
shall otherwise instruct, in which case the Contract Sum shall be adjusted accordingly) entirely at his own cost.

(3) Notwithstanding sub-clause (2) of this Condition the Architect may whenever he considers it necessary so to
do, issue instructions requiring any defect, shrinkage or other fault which shall appear within the Defects
Liability Period stated in the Appendix to these Conditions and which is due to materials or workmanship not
in accordance with this Contract or to frost occurring before Practical Completion of the Works to be made
good, and the Contractor shall, within a reasonable time after receipt of such instructions, comply with the
same and (unless the Architect shall otherwise instruct, in which case the Contract Sum shall be adjusted
accordingly) entirely at his own cost. Provided that no such instructions shall be issued after 14 days from the
expiration of the said Defects Liability Period.

(4) When in the opinion of the Architect any defects, shrinkages or other faults which he may have required to be
made good under sub-clauses (2) and (3) of this Condition shall have been made good he shall issue a Certificate
to that effect, and the Completion of Making Good Defects shall be deemed, for all the purposes of this
Contract, to have taken place on the day named in such Certificate.

(5) In no case shall the Contractor be required to make good at his own cost any damage by frost which may appear
after Practical Completion of the Works, unless the Architect shall certify that such damage is due to injury
which took place before Practical Completion of the Works.

Clause 17: Partial possession by Employer


If at any time or times before Practical Completion of the Works, the Employer wishes to take possession of any part
or parts of the Works (any such part being hereinafter in this Condition referred to as “the relevant part”), and
provided he has obtained a respective consent from the Contractor (the Contractor shall not withhold such consent
unreasonably) then, notwithstanding anything expressed or implied elsewhere in this Contract, the Employer may
take possession of the same and the following provisions shall apply:

(a) Within 7 days from the date on which the Employer shall have taken possession of the relevant part, the
Architect shall issue a Certificate stating his estimate of the approximate total value of the said part, and for
all the purposes of this Condition (but for no other) the value so stated shall be deemed to be the total value
of the said part.

12
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 13

(b) For the purposes of sub-paragraph (ii) of paragraph (f) of this Condition and of sub-clauses (2), (3) and (5) of
Clause 16 of these Conditions, Practical Completion of the relevant part shall be deemed to have occurred and
the Defects Liability Period in respect of the relevant part shall be deemed to have commenced on the date on
which the Employer shall have taken possession thereof.

(c) When in the opinion of the Architect any defects, shrinkages or other faults in the relevant part which he may
have required to be made good under sub-clause (2) or sub-clause (3) of Clause 16 of these Conditions shall
have been made good he shall issue a Certificate to that effect.

(d) If it is stated in the Appendix to these Conditions that Clause 21(1) or 21(3) of these Conditions shall apply in
this Contract, the Contractor shall reduce the value insured under the said Clauses by the full value of the
relevant part, and the said relevant part shall, as from the date on which the Employer shall have taken
possession thereof, be at the sole risk of the Employer as regards to any of the contingencies referred to in the
said Clauses.

(e) In lieu of any sum to be paid or allowed by the Contractor under Clause 23 of these Conditions in respect of
any period during which the Works may remain incomplete occurring after the date on which the Employer
shall have taken possession of the relevant part, there shall be paid or allowed by the Contractor such sum as
bears the same ratio to the sum which would be paid or allowed apart from the provisions of this Condition as
does the Contract Sum less the total value of the said relevant part, to the Contract Sum.

(f) (i) Within 28 days of the date on which the Employer shall have taken possession of the relevant part there
shall be paid to the Contractor from the sums then retained under Clause 31(3) of these Conditions one
moiety of a sum as bears the same ratio to the maximum total money which has or will be retained by
virtue of the said Clause as does the total value of the said relevant part, to the Contract Sum.

(ii) On the expiration of the Defects Liability Period stated in the Appendix to these Conditions in respect
of the relevant part or on the issue of the Certificate of Completion of Making Good Defects in respect
of the relevant part, whichever is the later, there shall be paid to the Contractor from the sums then
retained under Clause 31(3) of these Conditions the remaining moiety of the sum referred to in paragraph
(i) of this sub-clause.

(iii) Where the total value of the relevant part includes work or materials and goods in respect of which a final
payment to a Nominated Sub-Contractor or a Nominated Supplier has been made under the provisions
of Clauses 28(e) and 29(f) of these Conditions, the said total value for the purposes of paragraphs (i) and
(ii) of this sub-clause, shall be deemed to be reduced by the value of the work carried out or the materials
and goods supplied by the said Nominated Sub-Contractors or Nominated Suppliers respectively, in the
relevant part.

Clause 18: Assignment or sub-letting


(1) The Employer shall not, without the written consent of the Contractor, assign this Contract.

(2) The Contractor shall not, without the written consent of the Employer, assign this Contract, and shall not,
without the written consent of the Architect (which consent shall not be unreasonably withheld to the prejudice
of the Contractor), sub-let any portion of the Works. Provided that it shall be a condition in any sub-letting
which may occur that the employment of the sub-contractor under the sub-contract shall determine immediately
upon the determination (for any reason) of the Contractor’s employment under this Contract.

Clause 19: Injury to persons and property and Employer’s indemnity


(1) The Contractor shall be liable for, and shall indemnify the Employer against any expense, liability, loss, claim
or proceedings whatsoever arising under any Law of the Republic in respect of personal injury to or the death
of any person whomsoever arising out of or in the course of or caused by the carrying out of the Works, except
to the extent that the same is due to any act or neglect, breach of Statutory duty, omission or default of the

13
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 14

Employer or of any person (including any person which is employed by the Employer under Clause 30 of these
Conditions) for whom the Employer is responsible or of any Statutory Authority executing work solely in
pursuance of its Statutory rights or obligations.

(2) The Contractor [subject to Clauses 21(3)(a)(i) or 21(4)(a)(i) in case where it is stated in the Appendix to these
Conditions that any of the said Clauses will apply in this Contract] shall be liable for and shall indemnify the
Employer against any expense, liability, loss, claim or proceedings in respect of any injury or damage whatsoever
to any property [such property shall be deemed not to include the Works, work executed or unfixed materials
and goods delivered to, placed on or adjacent to the Works intended for incorporation therein, up to and
including the date of issue of the Certificate of Practical Completion or up to and including the date of
determination of the employment of the Contractor (irrespective of whether the validity of such determination
is disputed or not) under this Contract, whichever event is the earlier] real or personal in so far as such injury
or damage arises out of or in the course of or by reason of the carrying out of the Works and to the extent that
the same is due to any negligence, breach of Statutory duty, omission or default of the Contractor, his servants
or agents or of any person employed or engaged upon or in connection with the Works or any part thereof, his
servants or agents or of any other person who may properly be on the Site upon or in connection with the
Works or any part thereof, his servants or agents, other than the Employer or any person employed, engaged
or authorised by him or by any Statutory Authority executing work solely in pursuance of its Statutory rights
or obligations.

Clause 20: Insurance against injury to persons and property


(1) (a) Without prejudice to his obligation to indemnify the Employer under Clause 19 of these Conditions, the
Contractor shall take out and maintain up to and including the date of issue of the Certificate of Practical
Completion or up to and including the date of determination of the employment of the Contractor
(irrespective of whether the validity of such determination is disputed or not) under this Contract,
whichever event is the earlier, and shall cause any sub-contractor to take out and maintain such insurances
as are necessary to cover the liability of the Contractor or, as the case may be, of such sub-contractor in
respect of claims arising out of any of the liabilities referred to in the said Clause.

(b) Without prejudice to his obligation to indemnify the Employer under Clause 19(1) of these Conditions,
the Contractor shall take out and maintain, and shall cause any sub-contractor to take out and maintain
such insurances as are necessary to cover the liability of the Contractor or, as the case may be, of such
sub-contractor, in respect of claims for personal injury to or for the death of any person which is employed
under a contract of service or apprenticeship with the Contractor or, as the case may be, with the sub-
contractor, and in so far as such personal injury or death arises out of or in the course of such person’s
employment.

(c) For all claims [except for the claims referred to in paragraph (b) hereabove] to which this sub-clause
applies, the insurance cover shall not be less than the sum stated in the Appendix to these Conditions for
any one occurrence or series of occurrences arising out of one event.

(d) As and when he is reasonably required to do so by the Employer, the Contractor shall send, and shall
cause any sub-contractor to send to the Architect for inspection by the Employer, documentary evidence
which shall prove that the insurances required under this sub-clause have been taken out and are being
maintained, but at any time, the Employer may [but not unreasonably or vexatiously) require to have sent
to the Architect for inspection by the Employer the relevant policy or policies and the premium receipts
therefor.

(e) If the Contractor defaults in taking out or in maintaining or in causing any sub-contractor to take out
and maintain any of the insurances which are required under this sub-clause, the Employer may himself
insure against any liability or expense which he may incur arising out of such default and a sum or sums
equivalent to the amount paid or payable by him in respect of the premiums therefor, may be deducted
by him from any monies due or to become due to the Contractor under this Contract or such amount may
be recoverable by the Employer from the Contractor as a debt.

14
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 15

(2) (a) If and where is stated in the Appendix to these Conditions that the insurance to which this sub-clause
applies will be required by the Employer, the Contractor shall take out and maintain up to and including
the date of issue of the Certificate of Practical Completion or up to and including the date of
determination of the employment of the Contractor (irrespective of whether the validity of such
determination is disputed or not) under this Contract, whichever event is the earlier, a Joint Names Policy
(in the names of the Contractor and the Employer) for an amount of indemnity which shall not be less
than the sum stated in the said Appendix in respect of any expense, liability, loss, claim or proceedings
which the Employer may incur or sustain by reason of injury or damage to any property [such property
shall be deemed not to include the Works, work executed or unfixed materials and goods delivered to,
placed on or adjacent to the Works intended for incorporation therein, up to an including the date of
issue of the Certificate of Practical Completion or up to and including the date of determination of the
employment of the Contractor (irrespective of whether the validity of such determination is disputed or
not) under this Contract, whichever event is the earlier] real or personal, caused by collapse, subsidence,
heave, 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, excepting injury of damage:

(i) for which the Contractor is liable under Clause 19(2) of these Conditions,

(ii) for which the Contractor is liable under Clause 21(3)(a)(i) of these Conditions in case where is
stated in the Appendix to these Conditions that the said Clause will apply in this Contract,

(iii) for which the Employer is liable under Clause 21(4)(a)(i) of these Conditions in case where is
stated in the Appendix to these Conditions that the said Clause will apply in this Contract,

(iv) attributable to errors or omissions in the designing of the Works,

(v) which can be reasonably be foreseen to be inevitable having regard to the nature of the work to be
executed or the manner of its execution, or

(vi) arising from any of the Excepted Risks referred to in sub-clause (3) of this Condition or from war
risks.

(b) Any such insurance as is referred to in this sub-clause shall be taken out with insurers approved by the
Employer (such approval shall not be unreasonably withheld) and the Contractor shall send to the
Architect for deposit with the Employer the policy or policies and the premium receipts therefor.

(c) If the Contractor defaults in taking out or in maintaining the Joint Names Policy as required under this
sub-clause, the Employer may himself insure against any risk in respect of which the default shall have
occurred and a sum or sums equivalent to the amount paid or payable by him in respect of the premiums
therefor, may be deducted by him from any monies due or to become due to the Contractor under this
Contract or such amount may be recoverable by the Employer from the Contractor as a debt.

(3) Notwithstanding the provisions of Clause 19 of these Conditions and of sub-clause (1) of this Condition, the
Contractor shall not be liable either to indemnify the Employer or to insure against any personal injury to or
the death of any person or any damage, loss or injury caused to the Works, work executed or unfixed materials
and goods delivered to, placed on or adjacent to the Works intended for incorporation therein, the Site or to
any property, by the effect of ionising radiations or contamination by radioactivity 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 thereof, pressure waves caused by aircraft
or other aerial devices travelling at sonic or supersonic speeds (all such risks referred to in these Conditions as
“the Excepted Risks”).

Clause 21: Insurance of the Works and/or of existing structures and their contents
(1) If and where is stated in the Appendix to these Conditions that this particular sub-clause will apply in this
Contract, then the following provisions will apply herein:

15
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 16

(a) The Contractor shall take out and maintain a Joint Names Policy (in the names of the Contractor and
the Employer) for All Risk Insurance for cover not less than that defined in paragraph (a) of sub-clause
(5) of this Condition, for the full reinstatement value of the Works, work executed and unfixed materials
and goods delivered to, placed on or adjacent to the Works intended for incorporation therein, (plus the
percentage, if any, to cover professional fees stated in the Appendix to these Conditions) and shall
maintain such Joint Names Policy up to and including the date of issue of the Certificate of Practical
Completion or up to and including the date of determination of the employment of the Contractor
(irrespective of whether the validity of such determination is disputed or not) under this Contract,
whichever event is the earlier.

(b) (i) The Contractor shall ensure that the Joint Names Policy referred to in paragraphs (a) and (e) of
this sub-clause shall, either

(1) provide for recognition of each Sub-Contractor referred to in Clause 28 of these Conditions
as an insured under the relevant Joint Names Policy, or

(2) include a waiver by the relevant insurers of any right of subrogation which they may have
against any such Sub-Contractor,

in respect of loss or damage to the Works, to work executed and to unfixed materials and goods
delivered to, placed on or adjacent to the Works intended for incorporation therein, by any one or
more of the Specified Perils referred to in paragraph (b) of sub-clause (5) of this Condition, and that
this recognition or waiver shall continue up to and including the date of issue by the Architect of a
written confirmation stating that the Sub-Contract Works of such Sub-Contractor are practically
complete or the date of determination of the employment of the Contractor (irrespective of whether
the validity of such determination is disputed or not) under this Contract, whichever event is the
earlier.

(ii) The provisions of sub-paragraph (i) of this paragraph, shall also apply in respect of any Joint Names
Policy taken out by the Employer under paragraph (d) of this sub-clause.

(iii) The provisions of sub-paragraph (i) of this paragraph in regard to recognition or waiver shall also
apply to sub-contractors referred to in Clause 18 of these Conditions. Such recognition or waiver
for such sub-contractors shall continue up to and including the date of issue of any Certificate or
other document which will state that the sub-contract works of such sub-contractor are practically
complete or the date of determination of the employment of the Contractor (irrespective of
whether the validity of such determination is disputed or not) under this Contract, whichever event
is the earlier.

(c) The Joint Names Policy referred to in paragraph (a) of this sub-clause shall be taken out with insurers
approved by the Employer (such approval shall not be unreasonably withheld) and the Contractor shall
send to the Architect for deposit with the Employer that Policy and the premium receipt therefor and
also any relevant endorsement or endorsements thereof as may be required to comply with his obligation
to maintain that Policy in accordance with paragraph (a) of this sub-clause.

(d) If the Contractor defaults in taking out or in maintaining the Joint Names Policy as required by
paragraphs (a) and (c) of this sub-clause, the Employer may himself take out and maintain a Joint Names
Policy against any risk in respect of which the default shall have occurred and a sum or sums equivalent
to the amount paid or payable by him in respect of premiums therefor, may be deducted by him from any
monies due or to become due to the Contractor under this Contract or such amount may be recoverable
by the Employer from the Contractor as a debt.

(e) If the Contractor independently of his obligations under this Contract maintains a policy of insurance
which provides (inter alia) All Risks Insurance for cover not less than that defined in paragraph (b) of
sub-clause (5) of this Condition for the full reinstatement value of the Works, work executed and unfixed
materials and goods delivered to, placed on or adjacent to the Works intended for incorporation therein
(plus the percentage, if any, to cover professional fees stated in the Appendix to these Conditions), then,
the maintenance by the Contractor of such policy shall, if the Policy is a Joint Names Policy in respect

16
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 17

of the aforesaid Works, work executed and materials and goods, be a discharge of the Contractor’s
obligation to take out and maintain a Joint Names Policy under paragraph (a) of this sub-clause. If and
so long as the Contractor is able to send to the Architect for inspection by the Employer (as and when
he is reasonably required to do so by the Employer) documentary evidence that such policy is being
maintained, then the Contractor shall be discharged from his obligation under paragraph (c) of this sub-
clause to deposit the policy and the premium receipt with the Employer, but on any occasion the
Employer may (but not unreasonably or vexatiously) require to have sent to the Architect for inspection
by the Employer the policy to which this paragraph refers and the premium receipts therefor. The
provisions of paragraph (d) of this sub-clause shall apply in regard to any default by the Contractor in
taking out or in maintaining the insurance under this paragraph.

(f) (i) If any loss or damage affecting work executed or any part thereof or any unfixed materials and
goods delivered to, placed on or adjacent to the Works intended for incorporation therein, is
occasioned by any one or more of the risks covered by the Joint Names Policy referred to in
paragraphs (a) or (d) or (e) of this sub-clause, then, upon discovering to said loss or damage, the
Contractor shall forthwith give notice in writing to the Architect and to the Employer of the extent,
nature and location thereof and the occurrence of such loss or damage shall be disregarded in
computing any amounts payable to the Contractor under or by virtue of this Contract.

(ii) After any inspection required by the insurers in respect of a claim under the Joint Names Policy
referred to in paragraphs (a) or (d) or (e) of this sub-clause has been completed, the Contractor
with due diligence shall restore such work damaged, replace or restore such unfixed materials and
goods which have been lost or damaged, remove and dispose of any debris and proceed with the
carrying out and completion of the Works.

(iii) The Contractor [for himself as well as for all Sub-Contractors and sub-contractors referred to in
Clauses 28 and 18 of these Conditions respectively, who are, pursuant to sub-paragraphs (i) and (iii)
of paragraph (b) of this sub-clause, recognised as an insured under the Joint Names Policy referred
to in paragraphs (a) or (d) or (e) of this sub-clause] shall authorise the insurers to pay to the
Employer all monies from such insurance in respect of the loss or damage referred to in sub-
paragraph (i) of this paragraph. The Employer shall pay all such monies (less only the percentage,
if any, to cover professional fees stated in the Appendix to these Conditions) to the Contractor by
instalments under the Certificates issued by the Architect at the Period of Interim Certificates
stated in the Appendix to these Conditions.

(iv) The Contractor shall not be entitled to any payment in respect of the restoration, replacement or
repair of such loss or damage and (when required) the removal and disposal of debris referred to
in sub-paragraph (ii) of this paragraph, other than the monies received under the aforesaid
insurance.

(2) If and where is stated in the Appendix to these Conditions that this particular sub-clause will apply in this
Contract, then the following provisions will apply herein:

(a) The Employer shall take out and maintain a Joint Names Policy (in the names of the Employer and the
Contractor) for All Risk Insurance for cover not less than that defined in paragraph (a) of sub-clause (5)
of this Condition, for the full reinstatement value of the Works, work executed and unfixed materials and
goods delivered to, placed on or adjacent to the Works intended for incorporation therein, (plus the
percentage, if any, to cover professional fees stated in the Appendix to these Conditions) and shall
maintain such Joint Names Policy up to and including the date of issue of the Certificate of Practical
Completion or up to and including the date of determination of the employment of the Contractor
(irrespective of whether the validity of such determination is disputed or not) under this Contract,
whichever event is the earlier.

(b) (i) The Employer shall ensure that the Joint Names Policy referred to in paragraphs (a) and (e) of this
sub-clause shall, either

17
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 18

(1) provide for recognition of each Sub-Contractor referred to in Clause 28 of these Conditions
as an insured under the relevant Joint Names Policy, or

(2) include a waiver by the relevant insurers of any right of subrogation which they may have
against any such Sub-Contractor,

in respect of loss or damage to the Works, to work executed and to unfixed materials and goods
delivered to, placed on or adjacent to the Works intended for incorporation therein, by any one or
more of the Specified Perils referred to in paragraph (b) of sub-clause (5) of this Condition, and
that this recognition or waiver shall continue up to and including the date of issue by the Architect
of a written confirmation stating that the Sub-Contract Works of such Sub-Contractor are
practically complete or the date of determination of the employment of the Contractor (irrespective
of whether the validity of such determination is disputed or not) under this Contract, whichever
event is the earlier.

(ii) The provisions of sub-paragraph (i) of this paragraph, shall also apply in respect of any Joint Names
Policy taken out by the Contractor under paragraph (d) of this sub-clause.

(iii) The provisions of sub-paragraph (i) of this paragraph is regard to recognition or waiver shall also
apply to sub-contractors referred to in Clause 18 of these Conditions. Such recognition or waiver
for such sub-contractors shall continue up to and including the date of issue of any Certificate or
other document which will state that the sub-contract works of such sub-contractor are practically
complete or the date of determination of the employment of the Contractor (irrespective of
whether the validity of such determination is disputed or not) under this Contract, whichever event
is the earlier.

(c) The Employer shall, as and when he is reasonably required to do so by the Contractor, produce
documentary evidence and receipts showing that the Joint Names Policy required under paragraph (a)
of this sub-clause has been taken out and is being maintained.

(d) If the Employer defaults in taking out or in maintaining the Joint Names Policy as required by paragraph
(a) of this sub-clause, the Contractor may himself take out and maintain a Joint Names Policy against any
risk in respect of which the default shall have occurred and a sum or sums equivalent to the amount paid
or payable by him in respect of premiums therefor, shall be added to the Contract Sum.

(e) (i) If any loss or damage affecting work executed or any part thereof or any unfixed materials and
goods delivered to, placed on or adjacent to the Works intended for incorporation therein, is
occasioned by any one or more of the risks covered by the Joint Names Policy referred to in
paragraphs (a) or (d) of this sub-clause, then, upon discovering to said loss or damage, the
Contractor shall forthwith give notice in writing to the Architect and to the Employer of the extent,
nature and location thereof and the occurrence of such loss or damage shall be disregarded in
computing any amounts payable to the Contractor under or by virtue of this Contract.

(ii) After any inspection required by the insurers in respect of a claim under the Joint Names Policy
referred to in paragraphs (a) or (d) of this sub-clause has been completed, the Contractor with due
diligence shall restore such work damaged, replace or restore such unfixed materials and goods
which have been lost or damaged, remove and dispose of any debris and proceed with the carrying
out and completion of the Works.

(iii) The Contractor [for himself as well as for all Sub-Contractors and sub-contractors referred to in
Clauses 28 and 18 of these Conditions respectively, who are, pursuant to sub-paragraphs (i) and (iii)
of paragraph (b) of this sub-clause, recognised as an insured under the Joint Names Policy referred
to in paragraphs (a) or (d) of this sub-clause] shall authorise the insurers to pay to the Employer
all monies from such insurance in respect of the loss or damage referred to in sub-paragraph (i) of
this paragraph.

(iv) The restoration, replacement or repair of such loss or damage and (when required) the removal and
disposal of debris referred to in sub-paragraph (ii) of this paragraph, shall be treated as if they

18
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 19

were a variation required by the Architect.

(3) If and where is stated in the Appendix to these Conditions that this particular sub-clause will apply in this
Contract, then the following provisions will apply herein:

(a) The Contractor shall take out and maintain the following two Insurance Policies:

(i) A Joint Names Policy (in the names of the Contractor and the Employer) in respect of the existing
structures together with the contents thereof owned by the Employer or for which the Employer is
responsible, for an insurance cover, which shall not be less than the sum stated in the Appendix to
these Conditions, in respect of the full cost of reinstatement, repair or replacement of any loss of
damage due to any one or more of the Specified Perils referred to in paragraph (b) of sub-clause
(5) of this Condition and shall maintain such Joint Names Policy up to and including the date of issue
of the Certificate of Practical Completion or up to and including the date of determination of the
employment of the Contractor (irrespective of whether the validity of such determination is
disputed or not) under this Contract, whichever event is the earlier. The Contractor [for himself
as well as for all Sub-Contractors referred to in Clause 28 of these Conditions who are, pursuant to
sub-paragraph (i) of paragraph (b) of this sub-clause, recognised as an insured under the Joint
Names Policy referred to in this sub-paragraph or in paragraph (e) or under the relevant Joint
Names Policy which is taken out by the Employer under paragraph (d) of this sub-clause] shall
authorise the insurers to pay to the Employer all monies from such insurance in respect of any loss
or damage as aforesaid.

(ii) A Joint Names Policy (in the names of the Contractor and the Employer) for All Risk Insurance
as stated in paragraph (a) of sub-clause (5) of this Condition, for the full reinstatement value of the
Works, work executed and unfixed materials and goods delivered to, placed on or adjacent to the
Works intended for incorporation therein (plus the percentage, if any, to cover professional fees
stated in the Appendix to these Conditions) and shall maintain such Joint Names Policy up to and
including the date of issue of the Certificate of Practical Completion or up to and including the date
of determination of the employment of the Contractor (irrespective of whether the validity of such
determination is disputed or not) under this Contract, whichever event is the earlier.

(b) (i) The Contractor shall ensure that the Joint Names Policies referred to in sub-paragraphs (i) and (ii)
of paragraph (a) of this sub-clause shall, either

(1) provide for recognition of each Sub-Contractor referred to in Clause 28 of these Conditions
as an insured under the relevant Joint Names Policy, or

(2) include a waiver by the relevant insurers of any right of subrogation which they may have
against any such Sub-Contractor,

in respect of loss or damage, regarding the Joint Names Policy referred to in the aforementioned
sub-paragraph (i), to the existing structures together with the contents thereof owned by the
Employer or for which the Employer is responsible and, regarding the Joint Names Policy referred
to in the aforementioned sub-paragraph (ii) to the Works, to work executed and to unfixed materials
and goods delivered to, placed on or adjacent to the Works intended for incorporation therein, by
any one or more of the Specified Perils referred to in paragraph (b) of sub-clause (5) of this
Condition, and that this recognition or waiver shall continue up to and including the date of issue
by the Architect of a written confirmation stating that the Sub-Contract Works of such Sub-
Contractor are practically complete or the date of determination of the employment of the
Contractor (irrespective of whether the validity of such determination is disputed or not) under
this Contract, whichever event is the earlier.

(ii) The provisions of sub-paragraph (i) of this paragraph, shall also apply in respect of any Joint Names
Policy referred to in paragraph (e) or which is taken out by the Employer under paragraph (d) of
this sub-clause.

(iii) Except in respect of the Joint Names Policy referred to in sub-paragraph (i) of paragraph (a) of

19
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 20

this sub-clause or the Joint Names Policy which is taken out by the Employer under paragraph (d)
of this sub-clause, the provisions of sub-paragraph (i) of this paragraph in regard to recognition or
waiver shall also apply to sub-contractors referred to in Clause 18 of these Conditions. Such
recognition or waiver for such sub-contractors shall continue up to and including the date of issue
of any Certificate or other document which will state that the sub-contract works of such sub-
contractor are practically complete or the date of determination of the employment of the
Contractor (irrespective of whether the validity of such determination is disputed or not) under
this Contract, whichever event is the earlier.

(c) The Joint Names Policies referred to in sub-paragraphs (i) and (ii) of paragraph (a) of this sub-clause shall
be taken out with insurers approved by the Employer (such approval shall not be unreasonably withheld)
and the Contractor shall send to the Architect for deposit with the Employer these Policies and the
premium receipts therefor and also any relevant endorsement or endorsements thereof as may be
required to comply with his obligation to maintain these Policies in accordance with sub-paragraphs (i)
and (ii) of paragraph (a) of this sub-clause.

(d) If the Contractor defaults in taking out or in maintaining any of the Joint Names Policies as required by
sub-paragraphs (i) and (ii) of paragraph (a) of this sub-clause, the Employer may himself take out and
maintain a Joint Names Policy against any risk in respect of which the defaults shall have occurred,
moreover, in respect of a default regarding the Joint Names Policy referred to in the aforementioned sub-
paragraph (i), he shall have such right of entry and inspection as may be required to make a survey and
inventory of the existing structures and the contents thereof. The sum or sums equivalent to the amount
paid or payable by the Employer in respect of premiums therefor, may be deducted by him from any
monies due or to become due to the Contractor under this Contract or such amount may be recoverable
by the Employer from the Contractor as a debt.

(e) If the Contractor independently of his obligations under this Contract, maintains a policy of insurance
which provides (inter alia) All Risks Insurance for cover not less than that defined in paragraph (b) of
sub-clause (5) of this Clause for the full reinstatement value of the Works, work executed and unfixed
materials and goods delivered to, placed on or adjacent to the Works intended for incorporation therein
(plus the percentage, if any, to cover professional fees stated in the Appendix to these Conditions), then,
the maintenance by the Contractor of such policy shall, if the Policy is a Joint Names Policy in respect
of the aforesaid Works, work executed and materials and goods, be a discharge of the Contractor’s
obligation to take out and maintain a Joint Names Policy under sub-paragraph (ii) of paragraph (a) of
this sub-clause. If and so long as the Contractor is able to send to the Architect for inspection by the
Employer (as and when he is reasonably required to do so by the Employer) documentary evidence that
such policy is being maintained, then the Contractor shall be discharged from his obligation under
paragraph (c) of this sub-clause to deposit the policy and the premium receipt with the Employer, but
on any occasion the Employer may (but not unreasonably or vexatiously) require to have sent to the
Architect for inspection by the Employer the policy to which this paragraph refers and the premium
receipts therefor. The provisions of paragraph (d) of this sub-clause shall apply in regard to any default
by the Contractor in taking out or in maintaining the insurance under this paragraph.

(f) (i) If any loss or damage affecting work executed or any part thereof or any unfixed materials and
goods delivered to, placed on or adjacent to the Works intended for incorporation therein, is
occasioned by any one or more of the risks covered by the Joint Names Policy referred to in sub-
paragraph (ii) of paragraph (a) or in paragraph (e) or by the relevant Joint Names Policy which is
taken out by the Employer under paragraph (d) of this sub-clause, then, upon discovering to said
loss or damage, the Contractor shall forthwith give notice in writing to the Architect and to the
Employer of the extent, nature and location thereof and the occurrence of such loss or damage
shall be disregarded in computing any amounts payable to the Contractor under or by virtue of this
Contract.

(ii) After any inspection required by the insurers in respect of a claim under the Joint Names Policy
referred to in sub-paragraph (ii) of paragraph (a) or in paragraph (e) or under the relevant Joint
Names Policy which is taken out by the Employer under paragraph (d) of this sub-clause has been

20
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 21

completed, the Contractor with due diligence shall restore such work damaged, replace or restore
such unfixed materials and goods which have been lost or damaged, remove and dispose of any
debris and proceed with the carrying out and completion of the Works.

(iii) The Contractor [for himself as well as for all Sub-Contractors and sub-contractors referred to in
Clauses 28 and 18 of these Conditions respectively, who are, pursuant to sub-paragraphs (i) and (iii)
of paragraph (b) of this sub-clause, recognised as an insured under the Joint Names Policy referred
to in sub-paragraph (ii) of paragraph (a) or in paragraph (e) or under the relevant Joint Names
Policy which is taken out by the Employer under paragraph (d) of this sub-clause] shall authorise
the insurers to pay to the Employer all monies from such insurance in respect of the loss or damage
referred to in sub-paragraph (i) of this paragraph. The Employer shall pay all such monies (less
only the percentage, if any, to cover professional fees stated in the Appendix to these Conditions)
to the Contractor by instalments under the Certificates issued by the Architect at the Period of
Interim Certificates stated in the Appendix to these Conditions.

(iv) The Contractor shall not be entitled to any payment in respect of the restoration, replacement or
repair of such loss or damage and (when required) the removal and disposal of debris referred to
in sub-paragraph (ii) of this paragraph, other than the monies received under the aforesaid
insurance.

(4) If and where is stated in the Appendix to these Conditions that this particular sub-clause will apply in this
Contract, then the following provisions will apply herein:

(a) The Employer shall take out and maintain the following two Insurance Policies:

(i) A Joint Names Policy (in the names of the Employer and the Contractor) in respect of the existing
structures together with the contents thereof owned by the Employer or for which the Employer is
responsible, for the full cost of reinstatement, repair or replacement of any loss of damage due to
any one or more of the Specified Perils referred to in paragraph (b) of sub-clause (5) of this
Condition and shall maintain such Joint Names Policy up to and including the date of issue of the
Certificate of Practical Completion or up to and including the date of determination of the
employment of the Contractor (irrespective of whether the validity of such determination is
disputed or not) under this Contract, whichever event is the earlier. The Contractor [for himself
as well as for all Sub-Contractors referred to in Clause 28 of these Conditions who are, pursuant to
sub-paragraph (i) of paragraph (b) of this sub-clause, recognised as an insured under the Joint
Names Policy referred to in this sub-paragraph or in paragraph (e) or under the relevant Joint
Names Policy which is taken out by the Contractor under paragraph (d) of this sub-clause] shall
authorise the insurers to pay to the Employer all monies from such insurance in respect of any loss
or damage as aforesaid.

(ii) A Joint Names Policy (in the names of the Employer and the Contractor) for All Risk Insurance
as stated in paragraph (a) of sub-clause (5) of this Condition, for the full reinstatement value of the
Works, work executed and unfixed materials and goods delivered to, placed on or adjacent to the
Works intended for incorporation therein (plus the percentage, if any, to cover professional fees
stated in the Appendix to these Conditions) and shall maintain such Joint Names Policy up to and
including the date of issue of the Certificate of Practical Completion or up to and including the date
of determination of the employment of the Contractor (irrespective of whether the validity of such
determination is disputed or not) under this Contract, whichever event is the earlier.

(b) (i) The Employer shall ensure that the Joint Names Policies referred to in sub-paragraphs (i) and (ii)
of paragraph (a) of this sub-clause shall, either

(1) provide for recognition of each Sub-Contractor referred to in Clause 28 of these Conditions
as an insured under the relevant Joint Names Policy, or

(2) include a waiver by the relevant insurers of any right of subrogation which they may have
against any such Sub-Contractor,

21
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 22

in respect of loss or damage, regarding the Joint Names Policy referred to in the aforementioned
sub-paragraph (i), to the existing structures together with the contents thereof owned by the
Employer or for which the Employer is responsible and, regarding the Joint Names Policy referred
to in the aforementioned sub-paragraph (ii) to the Works, to work executed and to unfixed materials
and goods delivered to, placed on or adjacent to the Works intended for incorporation therein, by
any one or more of the Specified Perils referred to in paragraph (b) of sub-clause (5) of this
Condition, and that recognition or waiver shall continue up to and including the date of issue by the
Architect of a written confirmation stating that the Sub-Contract Works of such Sub-Contractor are
practically complete or the date of determination of the employment of the Contractor (irrespective
of whether the validity of such determination is disputed or not) under this Contract, whichever
event is the earlier.

(ii) The provisions of sub-paragraph (i) of this paragraph, shall also apply in respect of any Joint Names
Policy referred to in paragraph (e) or which is taken out by the Contractor under paragraph (d) of
this sub-clause.

(iii) Except in respect of the Joint Names Policy referred to in sub-paragraph (i) of paragraph (a) of
this sub-clause or the Joint Names Policy which is taken out by the Contractor under paragraph (d)
of this sub-clause, the provisions of sub-paragraph (i) of this paragraph in regard to recognition or
waiver shall also apply to sub-contractors referred to in Clause 18 of these Conditions. Such
recognition or waiver for such sub-contractors shall continue up to and including the date of issue
of any Certificate or other document which will state that the sub-contract works of such sub-
contractor are practically complete or the date of determination of the employment of the
Contractor (irrespective of whether the validity of such determination is disputed or not) under
this Contract, whichever event is the earlier.

(c) The Employer shall, as and when he is reasonably required to do so by the Contractor, produce
documentary evidence and receipts showing that the Joint Names Policies required under sub-paragraphs
(i) and (ii) of paragraph (a) of this sub-clause, have been taken out and are being maintained.

(d) If the Employer defaults in taking out or in maintaining any of the Joint Names Policies as required by
sub-paragraphs (i) and (ii) of paragraph (a) of this sub-clause, the Contractor may himself take out and
maintain a Joint Names Policy against any risk in respect of which the defaults shall have occurred,
moreover, in respect of a default regarding the Joint Names Policy referred to in the aforementioned sub-
paragraph (i), he shall have such right of entry and inspection as may be required to make a survey and
inventory of the existing structures and the contents thereof. The sum or sums equivalent to the amount
paid or payable by the Contractor in respect of premiums therefor, shall be added to the Contract Sum.

(e) (i) If any loss or damage affecting work executed or any part thereof or any unfixed materials and
goods delivered to, placed on or adjacent to the Works intended for incorporation therein, is
occasioned by any one or more of the risks covered by the Joint Names Policy referred to in sub-
paragraph (ii) of paragraph (a) or by the relevant Joint Names Policy which is taken out by the
Contractor under paragraph (d) of this sub-clause, then, upon discovering to said loss or damage,
the Contractor shall forthwith give notice in writing to the Architect and to the Employer of the
extent, nature and location thereof and the occurrence of such loss or damage shall be disregarded
in computing any amounts payable to the Contractor under or by virtue of this Contract.

(ii) After any inspection required by the insurers in respect of a claim under the Joint Names Policy
referred to in sub-paragraph (ii) of paragraph (a) or under the relevant Joint Names Policy which
is taken out by the Contractor under paragraph (d) of this sub-clause has been completed, the
Contractor with due diligence shall restore such work damaged, replace or restore such unfixed
materials and goods which have been lost or damaged, remove and dispose of any debris and
proceed with the carrying out and completion of the Works.

(iii) The Contractor [for himself as well as for all Sub-Contractors and sub-contractors referred to in
Clauses 28 and 18 of these Conditions respectively, who are, pursuant to sub-paragraphs (i) and (iii)
of paragraph (b) of this sub-clause, recognised as an insured under the Joint Names Policy referred

22
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 23

to in sub-paragraph (ii) of paragraph (a) or under the relevant Joint Names Policy which is taken
out by the Contractor under paragraph (d) of this sub-clause] shall authorise the insurers to pay to
the Employer all monies from such insurance in respect of the loss or damage referred to in sub-
paragraph (i) of this paragraph. The Employer shall pay all such monies (less only the percentage,
if any, to cover professional fees stated in the Appendix to these Conditions) to the Contractor by
instalments under the Certificates issued by the Architect at the Period of Interim Certificates
stated in the Appendix to these Conditions.

(iv) The restoration, replacement or repair of such loss or damage and (when required) the removal and
disposal of debris referred to in sub-paragraph (ii) of this paragraph, shall be treated as if they
were a variation required by the Architect.

(5) For the purposes of this Condition as well as of this Contract in general, the following expressions shall have
the meaning given to them herebelow:

(a) “All Risks Insurance” shall mean insurance which provides cover against any physical loss or damage to
the Works, work executed and unfixed materials and goods delivered to, placed on or adjacent to the
Works intended for incorporation therein, but excluding the cost necessary to repair, replace or rectify

(i) Property which is defective due to:

(1) wear and tear,

(2) obsolescence

(3) deterioration, rust or mildew

(ii) Any work executed or any unfixed materials and goods delivered to, placed on or adjacent to the
Works intended for incorporation therein, lost or damaged as a result of their own defect in design,
plan, specification, material or workmanship or any other work executed which is lost or damaged
in consequence thereof where such work relied for its support or stability on such work which was
defective.

(iii) Loss or damage caused by or arising from

(1) any consequence of war, invasion, act of foreign enemy, hostilities (whether war be declared or
not), civil war, rebellion, revolution, insurrection, military or usurped power, confiscation,
commandeering, nationalisation or requisition or loss or destruction of or damage to any property
by or under the order of any government de jure or de facto or public, municipal or local
authority

(2) disappearance or shortage if such disappearance or shortage is only revealed when an inventory
is made or is not traceable to an identifiable event

(3) an Excepted Risk as referred to in Clause 20(3) of these Conditions

(4) civil commotion

(5) any unlawful, wanton or malicious act committed maliciously by a person or persons acting on
behalf of or in connection with an unlawful association [where such unlawful association shall
mean any organisation which is engaged in terrorism (terrorism shall mean the use of violence
for political ends and includes any use of violence for the purpose of putting the public, or any
section of the public, in fear) and includes an organisation which at any relevant time is a
proscribed organisation within the meaning of the relevant Law of the Republic]

(b) “Specified Perils” shall mean the perils of fire, lightning, explosion, storm, tempest, flood, bursting
or overflowing of water tanks, apparatus or pipes, earthquake, aircraft and other aerial devices or articles
dropped therefrom, riot and civil commotion, but excluding any of the Excepted Risks referred to in
Clause 20(3) of these Conditions.

23
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 24

Clause 22: Possession, completion and postponement


(1) On the Date for Possession stated in the Appendix to these Conditions possession, of the Site shall be given to
the Contractor who shall thereupon begin the Works and regularly and diligently proceed with the same, and
who shall complete the same on or before the Date for Completion stated in the said Appendix subject
nevertheless to the provisions for extension of time contained in Clauses 24 and 34(1)(c) of these Conditions.

(2) The Architect may issue instructions in regard to the deferment of giving pocession of the Site to the Contractor
or to the postponement of the execution of the Works or any part thereof.

Clause 23: Damages for non-completion


If the Contractor fails to complete the Works by the Date for Completion stated in the Appendix to these Conditions
or within any extended time granted under Clause 24 or Clause 34(1)(c) of these Conditions and the Architect certifies
in writing that, in his opinion, the same ought reasonably so to have been completed, then the Contractor shall, as the
Employer may so require in writing not later than the date of issue of the Final Certificate, pay or allow to the
Employer a sum calculated at the rate stated in the said Appendix as Liquidated Damages for Delays in Completion,
for the period during which the Works shall so remain or have remained incomplete and the Employer may deduct
such sum from any monies due or to become due to the Contractor under this Contract or such sum may be recoverable
by the Employer from the Contractor as a debt.

Provided always that any calculation and any deduction or recovery of the said sum shall, not withstanding any express
or implied provision in this Contract, be made in compliance with any relevant Law of the Republic in existence on
the date of the execution of this Contract.

Clause 24: Extension of time


Upon it becoming reasonably apparent that the progress of the Works is being or is likely to be delayed, the Contractor
shall forthwith give written notice and details of the cause of the delay to the Architect, and if, in the opinion of the
Architect, the completion of the Works is likely to be or has been delayed beyond the Date for Completion stated in
the Appendix to these Conditions or beyond any extended time previously granted under either this Clause or Clause
34(1)(c) of these Conditions,

(a) by force majeure, or

(b) by reason of any exceptionally inclement weather, or

(c) by reason of loss or damage occasioned by anyone or more of the Specified Perils referred to in Clause 21(5)(b)
of these Conditions, or

(d) by reason of civil commotion, local combination of workmen, strike or lockout affecting any of the trades
employed upon the Works or any of the trades engaged in the preparation, manufacture or transportation of
any of the materials or goods required for the Works, or

(e) by reason of Architect‘s instructions issued under Clauses 2(2), 12(1) or 22(2) of these Conditions, or

(f) by reason of the Contractor not having received in due time necessary instructions, drawings, details or levels
from the Architect for which he specifically applied in writing on a date which having regard to the Date for
Completion stated in the Appendix to these Conditions or to any extension of time then granted under this
Condition or Clause 34(1)(c) of these Conditions, was neither unreasonably distant from nor unreasonably
close to the date on which it was necessary for him to receive the same, or

(g) by reason of the opening up for inspection of any work covered up or of the testing of any of the work, materials
or goods in accordance with Clause 7(3) of these Conditions (including making good in consequence of such
opening up or testing), unless the inspection or test showed that the work, materials or goods were not in
accordance with this Contract, or

24
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 25

(h) by delay on the part of artists, tradesmen or others engaged by the Employer in executing work or in supplying
materials and goods not forming part of this Contract, or

(i) by reason of compliance with the provisions of Clause 35 of these Conditions or with Architect’s instructions
issued thereunder,

(j) by a Statutory Authority in carrying out work in pursuance of its Statutory obligation in relation to the Works,
or in failing to carry out such work, or

(k) by reason of suspension of the execution of the Works by the Contractor in accordance with the provisions of
Clause 31(5) of these Conditions, or

(l) by delay in the nomination by the Architect of a sub-contractor or a supplier in replacement of a Nominated
Sub-Contractor (except for the replacement of a Nominated Sub-Contractor in consequence of a valid
determination of the employment of the Nominated Sub-Contractor by the Sub-Contractor in accordance with
the relevant provisions of the Sub-Contract) or a Nominated Supplier in accordance with the provisions of
Clauses 28(h) or 29(i) of these Conditions,

then, the Architect shall, so soon as he is able to estimate the length of the delay beyond the date or time aforesaid,
grant in writing to the Contractor a fair and reasonable extension of time for completion of the Works. Provided
always that the Contractor shall use constantly his best endeavours to prevent delay and shall do all that may
reasonably be required to the satisfaction of the Architect to proceed with the Works.

Clause 25: Loss and expense caused by disturbance of the regular progress of the Works
(1) If upon a relevant written notice being given to him by the Contractor, the Architect is of the opinion that the
Contractor has been or is likely to be involved in direct loss and/or expense for which he would not be re-
imbursed by a payment made under any other provision in this Contract, by reason of the regular progress of
the Works or of any part thereof having been or likely to be materially affected by:

(a) Architect‘s instructions issued under 2(2) of these Conditions in regard to the deferment of giving
pocession of the Site to the Contractor or to the postponement of the execution of the Works or any part
thereof, or

(b) the Contractor not having received in due time necessary instructions, drawings, details or levels from the
Architect for which he specifically applied in writing on a date which having regard to the Date for
Completion stated in the Appendix to these Conditions or to any extension of time then granted under
Clause 24 or Clause 34(1)(c) of these Conditions, was neither unreasonably distant from nor unreasonably
close to the date on which it was necessary for him to receive the same, or

(c) the opening up for inspection of any work covered up or the testing of any of the work, materials or goods
in accordance with Clause 7(3) of these Conditions (including making good in consequence of such
opening up or testing), unless the inspection or test showed that the work, materials or goods were not
in accordance with this Contract, or

(d) delay on the part of artists, tradesmen or others engaged by the Employer in executing work or in
supplying materials and good not forming part of this Contract, or

(e) the suspension of the execution of the Works by the Contractor in accordance with the provisions of
Clause 31(5) of these Conditions,

and if such written notice is given within a reasonable time of it becoming or reasonably should have become
apparent to the Contractor that the regular progress of the Works or of any part thereof has been or is likely to
be materially affected, then, provided that the Contractor, within reasonable time (having regard to the date of
the aforesaid notice) shall submit to the Architect a written application in this respect (which application shall
include full details of the said direct loss and/or expense) the Architect shall instruct the Quantity Surveyor to
ascertain the amount of such loss and/or expense. Any amount from time to time so ascertained shall be added

25
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 26

to the Contract Sum and if an Interim Certificate is issued after the date of ascertainment, any such amount shall
be added to the amount which would otherwise be stated as due in such Certificate.

(2) The provisions of this Condition are without prejudice to any other rights and remedies which the Contractor
may possess.

Clause 26: Determination by Employer


(1) Without prejudice to any other rights or remedies which the Employer may possess, if the Contractor shall
make default in anyone or more of the following respects, that is to say:

(a) if he, without reasonable cause, wholly suspends the carrying out of the Works before completion thereof,
or

(b) if he fails to proceed regularly and diligently with the Works, or

(c) if he refuses or persistently neglects to comply with a written notice from the Architect requiring him to
remove defective work or improper materials or goods and by such refusal or neglect the Works are
materially affected, or

(d) if he fails to comply with the provisions of Clause 18 of these Conditions,

then, the Architect may give to him a notice by registered post or recorded delivery (with a copy to the
Employer) specifying the default, and if the Contractor either shall continue such default for 14 days after
receipt of such notice or shall at any time thereafter repeat such default (whether previously repeated or not),
and thereafter the Architect certifies in writing to the Employer (with a copy to the Contractor) that such
default is continued or repeated, then, the Employer may, by notice by registered post or recorded delivery,
forthwith determine the employment of the Contractor under this Contract, provided that such notice shall not
be given unreasonably or vexatiously .

(2) In the event of the Contractor becoming bankrupt or making a composition or arrangement with his creditors
or having a winding up order made or (except for the purposes of reconstruction) a resolution for voluntary
winding up passed or a provisional liquidator receiver or manager of his business or undertaking duly appointed,
or possession taken, by or on behalf of the holders of any debentures secured by a floating charge, of any
property comprised in or subject to the floating charge, the employment of the Contractor under this Contract
shall be forthwith automatically determined but the said employment may be reinstated and continued if the
Employer and the Contractor, his trustee in bankruptcy, liquidator, provisional liquidator receiver or manager,
as the case may be, shall so agree.

(3) In the event of the employment of the Contractor being determined as aforesaid and so long as it has not been
reinstated and continued, the following shall be the respective rights and duties of the Employer and Contractor:

(a) The Employer may employ and pay other persons to carry out and complete the Works and he or they
may enter upon the Works and use all temporary buildings, plant, tools, equipment, goods and materials
delivered to, placed on or adjacent to the Works intended therefor, and may purchase all materials and
goods necessary for the carrying out and completion of the Works.

(b) The Contractor shall [except where the determination occurs by reason of the bankruptcy of the
Contractor or of him having a winding up order made or (except for the purposes of reconstruction) a
resolution for voluntary winding up passed], if so required by the Employer or the Architect within 14
days of the date of determination, assign to the Employer without payment the benefit of any agreement
for the supply of materials or goods and/or for the execution of any work for the purposes of this Contract
but on the terms that a supplier or sub-contractor shall be entitled to make any reasonable objection to
any further assignment thereof by the Employer. In any case, the Employer may pay any supplier or sub-
contractor for any materials or goods delivered or works executed for the purposes of this Contract
(whether before or after the date of determination) in so far as the price thereof has not already been paid
by the Contractor. The Employer’s rights under this paragraph are in addition to his rights to pay

26
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 27

Nominated Sub-Contractors as provided in Clause 28(c) of these Conditions and payments made under
this paragraph may be deducted from any sum due or to become due to the Contractor.

(c) The Contractor shall as and when required in writing by the Architect so to do (but not before) remove
from the Works any temporary buildings, plant, tools, equipment, goods and materials belonging to or
hired by him. If within a reasonable time after any such requirement has been made the Contractor has
not complied therewith, then, the Employer may (but without being responsible for any loss or damage)
remove and sell any such property of the Contractor, holding the proceeds (less all cost incurred by the
Employer) to the credit of the Contractor.

(d) The Contractor shall allow or pay to the Employer in the manner hereinafter appearing the amount of
any direct loss and/or damage caused to the Employer by the determination. Until after completion of
the Works under paragraph (a) of this sub-clause the Employer shall not be bound by any provision of
this Contract to make any further payment to the Contractor, but upon such completion and the
verification within a reasonable time of the accounts therefor the Architect shall certify the amount of
expenses properly incurred by the Employer and the amount of any direct loss and/or damage caused to
the Employer by the determination and, if such amounts when added to the monies paid to the Contractor
before the date of determination exceed the total amount which would have been payable on due
completion in accordance with this Contract, the difference shall be a debt payable to the Employer by
the Contractor; and if the said amounts when added to the said monies be less than the said total amount,
the difference shall be a debt payable by the Employer to the Contractor.

Clause 27: Determination by Contractor


(1) Without prejudice to any other rights or remedies which the Contractor may possess, if

(a) the Employer makes any one or both of the following defaults, that is if he:

(i) does not pay to the Contractor the amount due on any Certificate within the Time Limit for
Effecting Payments stated in the Appendix to these Conditions, from the date of presentation of
that Certificate to the Employer, or he

(ii) interferes with or obstructs the issue of any Certificate due under this Contract,

and after the Contractor shall have given him a notice by registered post or recorded delivery which shall
specify the default, he shall either continue such default for 14 days after receipt of such notice or shall
at any time thereafter repeat such default (whether previously repeated or not) or

(b) the carrying out of the whole or substantially the whole of the uncompleted Works (other than the
execution of work required under Clause 16 of these Conditions) is suspended for a continuous period
of the length stated in the Appendix to these Conditions by reason of:

(i) force majeure, or

(ii) loss or damage (unless caused by the negligence of the Contractor, his servants or agents or of any
Sub-Contractor, his servants or agents) occasioned by any one or more of the Specified Perils
referred to in Clause 21(5)(b) of these Conditions, or

(iii) civil commotion, or

(iv) Architect‘s instructions issued under Clauses 2(2), 12(1) or 22(2) of these Conditions unless caused
by reason of some negligence or default of the Contractor, or

(v) the Contractor not having received in due time necessary instructions, drawings, details or levels
from the Architect for which he specifically applied in writing on a date which having regard to the
Date for Completion stated in the Appendix to these Conditions or to any extension of time then
granted under Clause 24 or Clause 34(1)(c) of these Conditions was neither unreasonably distant
from nor unreasonably close to the date on which it was necessary for him to receive the same, or

27
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 28

(vi) the opening up for inspection of any work covered up or of the testing of any of the work, materials
or goods in accordance with Clause 7(3) of these Conditions (including making good in
consequence of such opening up or testing), unless the inspection or test showed that the work,
materials or goods were not in accordance with this Contract, or

(vii) delay on the part of artists, tradesmen or others engaged by the Employer in executing work or in
supplying materials and goods not forming part of this Contract, or

(viii) delay in the nomination by the Architect of a sub-contractor or a supplier in replacement of a


Nominated Sub-Contractor (except for the replacement of a Nominated Sub-Contractor in
consequence of a valid determination of the employment of the Nominated Sub-Contractor by the
Sub-Contractor in accordance with the relevant provisions of the Sub-Contract) or a Nominated
Supplier in accordance with the provisions of Clauses 28(h) or 29(i) of these Conditions, or

(c) the Employer becomes bankrupt or makes a composition or arrangement with his creditors or has a
winding up order made or (except for the purposes of reconstruction) a resolution for voluntary winding
up passed or a receiver or manager of his business or undertaking is duly appointed, or possession is
taken by or on behalf of the holders of any debentures secured by a floating charge, of any property
comprised in or subject to the floating charge,

then, the Contractor may thereupon by notice by registered post or recorded delivery to the Employer forthwith
determine the employment of the Contractor under this Contract, provided that such notice shall not be given
unreasonably or vexatiously and also provided that where the Contractor had suspended the further execution
of the Works under Clause 31(5) he shall not be entitled to give such notice before the expiration of 14 days from
the date of effect of such suspension.

(2) Upon such determination, then without prejudice to the accrued rights or remedies of either party or to any
liability of the classes mentioned in Clause 19 of these Conditions which may accrue either before the Contractor
or any sub-contractors shall have removed his temporary buildings, plant, tools, equipment, goods or materials
or by reason of his or their so removing the same, the respective rights and liabilities of the Contractor and the
Employer shall be as follows, that is to say:

(a) The Contractor shall with all reasonable dispatch and in such manner and with such precautions as will
prevent injury, death or damage of the classes in respect of which before the date of determination he was
liable to indemnify the Employer under Clause 19 of these Conditions, remove from the Site all his
temporary buildings, plant, tools, equipment, goods and materials and shall give facilities for his sub-
contractors to do the same, but subject always to the provisions of sub-paragraph (iv) of paragraph (b)
of this sub-clause.

(b) After taking into account amounts previously paid under this Contract, the Contractor shall be paid by
the Employer:

(i) the total value of work completed at the date of determination,

(ii) the total value of work begun and executed but not completed at the date of determination [the
value being ascertained in accordance with Clause 12(4) of these Conditions as if such work were
a variation required by the Architect],

(iii) any sum ascertained in respect of direct loss and/or expense under Clauses 12(6), 25 and 35(3) of
these Conditions (whether ascertained before or after the date of determination),

(iv) the cost of materials or goods properly ordered for the Works for which the Contractor shall have
paid or for which the Contractor is legally bound to pay, and on such payment by the Employer any
materials or goods so paid for shall become the property of the Employer,

(v) the reasonable cost of removal under paragraph (a) of this sub-clause, and

(vi) any direct loss and/or damage caused to the Contractor by the determination.

28
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 29

Provided that in addition to all other remedies the Contractor upon such determination may take
possession of and shall have a lien upon all unfixed goods and materials, which may have become
the property of the Employer under Clause 15 of these Conditions until payment of all monies due to the
Contractor from the Employer.

Clause 28: Nominated Sub-Contractors


The following provisions of this Condition shall apply where Prime Cost Sums are included in the Contract Bills or
arise as a result of Architect‘s instructions given in regard to the expenditure of Provisional Sums in respect of persons
to be nominated by the Architect to supply and fix materials or goods or to execute work.

(a) Such sums shall be expended in favour of such persons as the Architect shall instruct, and all specialists or
others who are nominated by the Architect are hereby declared to be sub-contractors employed by the
Contractor and are referred to in these Conditions as “Nominated Sub-Contractors”. Provided that the
Architect shall not nominate any person as such Sub-Contractor against whom the Contractor shall make
reasonable objection, or (save where the Architect and the Contractor shall otherwise agree) who will not enter
into a Sub-Contract which provides (inter alia):

(i) That the Nominated Sub-Contractor shall so carry out and complete the Sub-Contract Works as to enable
the Contractor to discharge his obligations under Clause 2(1) of these Conditions so far as they relate and
apply to the Sub-Contract Works or to any portion of the same and in conformity with all the reasonable
directions and requirements of the Contractor.

(ii) That the Nominated Sub-Contractor shall observe, perform and comply with all the provisions of this
Contract on the part of the Contractor to be observed, performed and complied with, so far as they relate
and apply to the Sub-Contract Works or to any portion of the same.

(iii) That the Nominated Sub-Contractor shall indemnify the Contractor against the same liabilities in respect
of the Sub-Contract Works as those for which the Contractor is liable to indemnify the Employer under
this Contract.

(iv) That the Nominated Sub-Contractor shall indemnify the Contractor against claims in respect of any
negligence, omission or default of such Sub-Contractor, his servants or agents or any misuse by him or
them of any scaffolding or other plant, and shall insure himself against any such claims and produce the
policy or policies and receipts in respect of premiums paid as and when required by either the Architect
or the Contractor.

(v) That the Sub-Contract Works shall be completed within the period or (where they are to be completed
in sections) periods specified in the Sub-Contract, that the Contractor shall not, without the written
consent of the Architect, grant any extension of time for the completion of the Sub-Contract Works or
any section thereof, and that the Contractor shall inform the Architect of any representation made by the
Nominated Sub-Contractor as to the cause of any delay in the progress or completion of the Sub-Contract
Works or of any section thereof.

(vi) That if the Nominated Sub-Contractor shall fail to complete the Sub-Contract Works or (where the Sub-
Contract Works are to be completed in sections) any section thereof within the period or periods specified
in the Sub-Contract or within any extended time granted by the Contractor with the written consent of
the Architect, and the Architect certifies in writing to the Contractor that the same ought reasonably so
to have been completed, the Nominated Sub-Contractor shall, provided that the Contractor shall so claim
in writing, pay or allow to the Contractor a sum equivalent to any loss or damage suffered or incurred by
the Contractor and caused by the failure of the Nominated Sub-Contractor as aforesaid.

(vii) That payment in respect of any work, materials or goods comprised in the Sub-Contract shall be made
within the Time Limit for Effecting Payments stated in the Appendix to these Conditions after receipt
by the Contractor of the Architect‘s Certificate under Clause 31 of these Conditions which states as due
an amount calculated by including the total value of such work, materials or goods, and shall when due

29
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 30

be subject to the retention by the Contractor of the sums mentioned in sub-paragraph (viii) of paragraph
(a) of this Condition.

(viii) That the Contractor shall retain from the sum directed by the Architect as having been included in the
calculation of the amount due in any Certificate issued under Clause 31 of these Conditions in respect of
the total value of work, materials or goods executed or supplied by the Nominated Sub-Contractor a
percentage [which percentage shall be equal to the percentage currently being retained by the Employer
under Clause 31(3) of these Conditions] of such value provided always that the total sum of the retention
money shall never exceed a particular percentage [which percentage shall be equal to the Retention Limit
Percentage currently being retained by the Employer under Clause 31(3) of these Conditions] on the
Sub-Contract Sum and that the Contractor’s interest in any sums so retained (by whomsoever held) shall
be fiduciary as trustee for the Nominated Sub-Contractor (but without obligation to invest) and that the
Nominated Sub-Contractor’s beneficial interest in such sums shall be subject only to the right of the
Contractor to have recourse thereto from time to time for payment of any amount which he is entitled
under the Sub-Contract to deduct from any sum due or to become due to the Nominated Sub-Contractor
and that if and when such sums or any part thereof are released to the Nominated Sub-Contractor, they
shall be paid in full.

(ix) That the Employer, the Architect and their representatives shall have a right of access to the workshops
and other places of the Nominated Sub-Contractor.

(x) That the employment of the Nominated Sub-Contractor under the Sub-Contract shall determine
immediately upon the determination (for any reason) of the Contractor’s employment under this
Contract.

(b) The Architect shall direct the Contractor as to the total value of the work, materials or goods executed or supplied
by the Nominated Sub-Contractor included in the calculation of the amount stated as due in any Certificate
issued under Clause 31 of these Conditions and shall forthwith inform the Nominated Sub-Contractor in writing
of the amount of the said total value. The sum representing such total value shall be paid by the Contractor to
the Nominated Sub-Contractor within the Time Limit for Effecting Payments stated in the Appendix to these
Conditions from the date of receiving by the Contractor of the Architect’s the Certificate, less only:

(i) any retention money which the Contractor may be entitled to deduct under the terms of the Sub-Contract,
and

(ii) any sum to which the Contractor may be entitled in respect of delay in the completion of the Sub-Contract
Works or any section thereof.

(c) Before issuing any Certificate under Clause 31 of these Conditions, the Architect may request the Contractor
to furnish to him reasonable proof that all amounts included in the calculation of the amount stated as due in
previous Certificates in respect of the total value of the work, materials or goods executed or supplied by any
Nominated Sub-Contractor have been duly discharged, and if the Contractor fails to comply with any such
request the Architect shall issue a Certificate to that effect and thereupon the Employer may himself pay such
amounts to any Nominated Sub-Contractor concerned and deduct the same from any sums due or to become
due to the Contractor.

(d) (i) The Contractor shall not grant to any Nominated Sub-Contractor any extension of the period or periods
within which the Sub-Contract Works or (where the Sub-Contract Works are to be completed in sections)
any section thereof is to be completed without the written consent of the Architect, provided always that
the Contractor shall inform the Architect of any representations made by the Nominated Sub-Contractor
as to the cause of any delay in the progress or completion of the Sub-Contract Works or of any section
thereof, and that the consent of the Architect shall not be unreasonably withheld.

(ii) If any Nominated Sub-Contractor fails to complete the Sub-Contract Works or (where the sub-contract
Works are to be completed in sections) any section thereof within the period or periods specified in the
Sub-Contract or within any extended time granted by the Contractor with the written consent of the
Architect, then if the same ought reasonably so to have been completed, the Architect shall certify in
writing accordingly and, immediately upon issue, he shall send a duplicate of any such Certificate to the

30
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 31

Nominated Sub-Contractor.

(e) If the Architect desires to secure final payment to any Nominated Sub-Contractor before final payment is due
to the Contractor, and if such Sub-Contractor has satisfactorily indemnified the Contractor against any latent
defects, then the Architect may in an Interim Certificate include an amount to cover the said final payment, and
thereupon the Contractor shall pay to such Nominated Sub-Contractor the amount so certified. Upon such
final payment the Contractor shall, save for latent defects, be discharged from all liability for the work materials
or goods executed or supplied by such Sub-Contractor under the Sub-Contract to which the payment relates.

(f) Neither the existence nor the exercise of the foregoing powers nor anything else contained in these Conditions
shall render the Employer in any way liable to any Nominated Sub-Contractor.

(g) (i) Where the Contractor in the ordinary course of his business directly carries out works for which Prime
Cost Sums are included in the Contract Bills and the Architect is prepared to receive tenders from the
Contractor for such items, then the Contractor shall be permitted to tender for the same or any of them
but without prejudice to the Employer’s right to reject the lowest or any tender. If the Contractor’s tender
is accepted, he shall not sub-let the work without the consent of the Architect.

(ii) It shall be a condition of any tender accepted under this paragraph that Clause 12 of these Conditions shall
apply in respect of the items of work included in the tender as if for the reference therein to the Contract
Drawings and the Contract Bills there were references to the equivalent documents included in or
referred to in the tender.

(h) In the event of the employment of the Nominated Sub-Contractor being determined under the Sub-Contract
either by the Contractor or by the Nominated Sub-Contractor and so long as it has not been reinstated and
continued in accordance with the relevant provisions of the Sub-Contract, then, at the earliest possible, the
Architect shall proceed with the nomination of another sub-contractor who shall enter into an agreement with
the Contractor for the due execution and completion of the remaining Sub-Contract Works. Such sub-contractor
shall not be a person against whom the Contractor shall make reasonable objection, or (save where the Architect
and the Contractor shall otherwise agree) who will not enter into a Sub-Contract which provides (inter alia)
similar provisions with those referred to in sub-clause (a) of this Condition.

Clause 29: Nominated Suppliers


The following provisions of this Condition shall apply where Prime Cost Sums or Prime Cost Rates are included in
the Contract Bills, or arise as a result of Architect‘s instructions given in regard to the expenditure of Provisional
Sums, in respect of any materials or goods to be fixed by the Contractor or by a Nominated Sub-Contractor.

(a) The term “Prime Cost” when included or arising as aforesaid, shall be understood to mean the net cost to be
defrayed as a prime cost after deducting any trade or other discount, and shall include any tax or duty not
otherwise recoverable under this Contract by whomsoever payable which is payable under or by virtue of any
Law of the Republic on the import, purchase, sale, appropriation, processing, alteration, adapting for sale or use
of the materials or goods to be supplied, and, unless otherwise specified in the Contract Bills, the cost of packing,
carriage and delivery on Site. Provided that, where in the opinion of the Architect, the Contractor has incurred
expense for special packing or special carriage, such special expense shall be allowed as part of the sums actually
paid by the Contractor.

(b) Such sums shall be expended in favour of such persons as the Architect shall instruct, and all specialists,
merchants, tradesmen or others who are nominated by the Architect to supply materials or goods are hereby
declared to be suppliers to the Contractor and are referred to in these Conditions as “Nominated Suppliers”.
Provided that the Architect shall not nominate any person as such Supplier against whom the Contractor shall
make reasonable objection or (save where the Architect and the Contractor shall otherwise agree) who will not
enter into a Supply Contract which provides (inter alia):

(i) That the materials or goods to be supplied shall be to the reasonable satisfaction of the Architect.

(ii) That the Nominated Supplier shall make good by replacement or otherwise any defects in the materials

31
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 32

or goods supplied which appear within such period as is specified in the Supply Contract and shall bear
any expenses reasonably incurred by the Contractor as a direct consequence of such defects, provided
that:

(1) where the materials or goods have been used or fixed such defects are not such that examination
by the Contractor ought to have revealed them before using or fixing, or

(2) such defects are due solely to defective composition of the supplied materials or goods and shall
not have been caused by improper storage by the Contractor or by misuse or by any act or neglect
of either the Contractor, the Architect or the Employer or by any person or persons for whom
they may be responsible.

(iii) That delivery of the materials or goods supplied shall be commenced and completed at such times as the
Contractor may reasonably direct.

(iv) That if the Nominated Supplier shall fail to deliver the materials or goods or any part thereof at such
times as the Contractor may reasonably direct and the Architect certifies in writing to the Contractor
that the same ought reasonably so to have been delivered, the Nominated Supplier shall, provided that
the Contractor shall so claim in writing, pay or allow to the Contractor a sum equivalent to any loss or
damage suffered or incurred by the Contractor and caused by the failure of the Nominated Supplier as
aforesaid.

(v) That payment in respect of any materials or goods comprised in the Supply Contract shall be made within
the Time Limit for Effecting Payments stated in the Appendix to these Conditions after receipt by the
Contractor of the Architect’s Certificate under Clause 31 of these Conditions which states as due an
amount calculated by including the total value of such materials or goods and shall when due be subject
to the retention by the Contractor of the sums mentioned in sub-paragraph (vi) of paragraph (b) of this
Condition.

(vi) That the Contractor shall retain from the sum directed by the Architect as having been included in the
calculation of the amount due in any Certificate issued under Clause 31 of these Conditions in respect of
the total value of the materials or goods supplied by the Nominated Supplier a percentage [which
percentage shall be equal to the percentage currently being retained by the Employer under Clause 31(3)
of these Conditions] of such value, provided always that the total sum of the retention money shall never
exceed a particular percentage [which percentage shall be equal to the Retention Limit Percentage
currently being retained by the Employer under Clause 31(3) of these Conditions] on the Supply Contract
Sum and that the Contractor’s interest in any sums so retained (by whomsoever held) shall be fiduciary
as trustee for the Nominated Supplier (but without obligation to invest) and that the Nominated Supplier’s
beneficial interest in such sums shall be subject only to the right of the Contractor to have recourse thereto
from time to time for any amount which he is entitled under the Supply Contract to deduct from any
sum due or to become due to the Nominated Supplier and that if and when such sums or any part thereof
are released to the Nominated Supplier they shall be paid in full.

(vii) That the Nominated Supplier shall not be obliged to make any delivery of materials or goods (except for
any materials or goods which may have been paid in full) after the determination (for any reason) of the
Contractor’s employment under this Contract.

(c) The Architect shall direct the Contractor as to the total value of the materials or goods supplied by the
Nominated Supplier included in the calculation of the amount stated as due in any Certificate issued under
Clause 31 of these Conditions and shall forthwith inform the Nominated Supplier in writing of the amount of
the said total value. The sum representing such total value shall be paid by the Contractor to the Nominated
Supplier within Time Limit for Effecting Payments stated in the Appendix to these Conditions from the date
of receiving by the Contractor of the Architect’s Certificate, less only:

(i) any retention money which the Contractor may be entitled to deduct under the terms of the Supply
Contract, and

(ii) any sum to which the Contractor may be entitled in respect of delay in the delivery of materials or goods

32
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 33

or any part thereof.

(d) Before issuing any Certificate under Clause 31 of these Conditions, the Architect may request the Contractor
to furnish to him reasonable proof that all amounts included in the calculation of the amount stated as due in
previous Certificates in respect of the total value of the materials or goods supplied by any Nominated Supplier
have been duly discharged, and if the Contractor fails to comply with any such request the Architect shall issue
a Certificate to that effect and thereupon the Employer may himself pay such amounts to any Nominated
Supplier concerned and deduct the same from any sums due or to become due to the Contractor.

(e) If any Nominated Supplier fails to deliver the materials or goods or any part thereof at such times as the
Contractor may reasonably direct, then, if the same ought reasonably so to have been delivered, the Architect
shall certify in writing accordingly and, immediately upon issue, he shall send a duplicate of any such Certificate
to the Nominated Supplier.

(e) If the Architect desires to secure final payment to any Nominated Supplier before final payment is due to the
Contractor, and if such Supplier has satisfactorily indemnified the Contractor against any latent defects, then
the Architect may in an Interim Certificate include an amount to cover the said final payment, and thereupon
the Contractor shall pay to such Nominated Supplier the amount so certified. Upon such final payment the
Contractor shall, save for latent defects, be discharged from all liability for the materials or goods supplied by
such Supplier under the Supply Contract to which the payment relates.

(g) Where the said Supply Contract between the Contractor and the Nominated Supplier in any way restricts, limits
or excludes the liability of the Nominated Supplier to the Contractor in respect of materials or goods supplied
or to be supplied, and the Architect has specifically approved in writing the said restrictions, limitations or
exclusions, the liability of the Contractor to the Employer in respect of the said materials or goods shall be
restricted, limited or excluded to the same extent. The Contractor shall not be obliged to enter into a Supply
Contract with, nor expend Prime Cost Sums or Prime Cost Rates in favour of, the Nominated Supplier until the
Architect has specifically approved in writing the said restrictions, limitations or exclusions.

(h) Neither the existence nor the exercise of the foregoing powers nor anything else contained in these Conditions
shall render the Employer in any way liable to any Nominated Supplier.

(i) In the event of the employment of the Nominated Supplier being determined under the Supply Contract either
by the Contractor or by the Nominated Supplier and so long as it has not been reinstated and continued in
accordance with the relevant provisions of the Supply Contract, then, at the earliest possible, the Architect
shall proceed with the nomination of another supplier who shall enter into an agreement with the Contractor
for the due supply of the remaining materials or goods. Such supplier shall not be a person against whom the
Contractor shall make reasonable objection, or (save where the Architect and the Contractor shall otherwise
agree) who will not enter into a Supply Contract which provides (inter alia) similar provisions with those
referred to in sub-clause (b) of this Condition.

Clause 30: Artists and tradesmen


The Contractor shall permit the execution of work or the supply of materials and goods to the Works, not forming part
of this Contract, by artists, tradesmen or others engaged directly by the Employer. Any such persons shall, for the
purposes of Clauses 19 and 21 of these Conditions, be deemed to be persons for whom the Employer is responsible
and not to be sub-contractors.

Clause 31: Certificates and payments


(1) The Interim Certificates shall be issued by the Architect in accordance with this Condition and for this purpose
the Contractor shall submit to the Architect, with a copy to the Quantity Surveyor, a detailed application
reporting his calculation of the amount due to him from the Employer. The Architect shall thereafter, taking
into consideration the respective recommendation of the Quantity Surveyor, issue an Interim Certificate in
which he shall state the amount due to the Contractor from the Employer and the Contractor shall be entitled

33
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 34

to payment therefor within the Time Limit for Effecting Payments stated in the Appendix to these Conditions
from the presentation of the said Certificate to the Employer. Before the issue of the Certificate of Practical
Completion, Interim Certificates shall be issued at the Period of Interim Certificates stated in the Appendix to
these Conditions. After the issue of the Certificate of Practical Completion, Interim Certificates shall be issued
as and when further amounts are due to the Contractor from the Employer provided always that the Architect
shall not be required to issue an Interim Certificate within the same calendar month of having issued a previous
Interim Certificate. Provided always that if the Contractor fails to submit a detailed application as aforesaid,
the Architect nevertheless may issue Interim Certificates whenever himself deems necessary that interim
payments should be made to the Contractor in respect of any amounts which may be due to him from the
Employer under sub-clause (2) of this Conditions.

(2) The amount stated as due in an Interim Certificate shall, subject to any agreement between the parties in this
Contract as to stage payments, be the gross amount of a valuation which shall include:

(a) the total value of all work (forming part of this Contract) properly executed including any work so
executed referred to in Clause 12(4) of these Conditions and to any relevant clause of the Sub-Contract
conditions for Nominated Sub-Contractors and any adjustment to that value under Clause 32 of these
Conditions and under any relevant clause of the Sub-Contract conditions as aforesaid,

(b) the total value of all unfixed materials and goods (forming part of this Contract) delivered to, placed on
or adjacent to the Works intended for incorporation therein, provided that the value of such materials and
goods shall only be included as and from such times as they are reasonably, properly and not prematurely
so delivered and then only if they are adequately protected against weather and other casualties and any
adjustment to that value under Clause 32 of these Conditions and under any relevant clause of the Sub-
Contract conditions for Nominated Sub-Contractors and of the Supply Contracts for Nominated
Suppliers,

(c) the Contractor’s profit referred to in sub-clause (6) (c) of this Condition,

(d) any amounts which result through payments made or costs incurred by the Contractor under Clauses
5(2), 6, 7(3), 8, 16(2) and 16(3) of these Conditions and, where applicable, payments made or costs
incurred by the Nominated Sub-Contractors under any relevant clause of the Sub-Contract conditions for
Nominated Sub-Contractors,

(e) any amounts ascertained under Clauses 12(6), 25(1) and 35(3) of these Conditions and, where applicable,
under any relevant clauses of the Sub-Contract conditions for Nominated Sub-Contractors and of the
Supply Contracts for Nominated Suppliers, and

(f) any amounts to which Clauses 28(e) and 29(f) of these Conditions refer,

applied up to and including a date not more than 14 days before the date of issue of the Interim Certificate, less,
any amount which is deducted periodically with regard to the stage liquidation of any Advance Payment which
might have been effected to the Contractor under Clause 38 of these Conditions, any amount which may be
retained by the Employer [as provided under sub-clause (3) of this Condition] and the total amount stated as
due in Interim Certificates previously issued under this Condition.

(3) (a) In respect of any Interim Certificates issued before the issue of the Certificate of Practical Completion,
the Employer may, subject to the provisions of paragraph (b) of this sub-clause, retain a percentage (in
these Conditions called “the Retention Percentage”) on the total value of the work, materials and goods
and the profit referred to in paragraphs (a), (b) and (c) of sub-clause (2) of this Condition. The Retention
Percentage shall be as stated in the Appendix to these Conditions, but always provided that the total sum
of the retention money shall never exceed a particular percentage (in these Conditions called “the
Retention Limit Percentage”) of the Contract Sum. The Retention Limit Percentage shall be as stated
in the Appendix to these Conditions.

(b) The amount which the Employer may retain by virtue of paragraph (a) of this sub-clause shall be reduced
by the amounts of any releases of retention made to the Contractor in pursuance of Clauses 17(f), 28(e)
or 29(f) of these Conditions.

34
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 35

(4) The amounts retained by virtue of sub-clause (3) of this Condition shall be subject to the following rules:

(a) The Employer’s interest in any amounts so retained shall be fiduciary as trustee for the Contractor (but
without obligation to invest) and the Contractor’s beneficial interest therein shall be subject only to the
right of the Employer to have recourse thereto from time to time for payment of any amount which he
is entitled, under the provisions of this Contract, to deduct from any sum due or to become due to the
Contractor.

(b) On the issue of the Certificate of Practical Completion, the Architect shall issue a Certificate for one
moiety of the total amounts then so retained and the Contractor shall, on the presentation of any such
Certificate to the Employer, be entitled to payment of the said moiety within the Time Limit for Effecting
Payments stated in the Appendix to these Conditions, commencing from the date of the presentation of
that Certificate.

(c) On the expiration of the Defects Liability Period stated in the Appendix to these Conditions or on the
issue of the Certificate of Completion of Making Good Defects, whichever is the later, the Architect shall
issue a Certificate for the residue of the amounts so retained and the Contractor shall, on the presentation
of any such Certificate to the Employer, be entitled to payment of the said residue within the Time Limit
for Effecting Payments stated in the Appendix to these Conditions, commencing from the date of the
presentation of that Certificate.

(5) Without prejudice to any other rights or remedies which the Contractor may pocess, if the Employer shall fail
to make payment to the Contractor as provided under sub-clauses (1) and (4) of this Condition and if such
failure shall continue for 7 days after the Contractor shall have given to the Employer, with a copy to the
Architect, written notice of the same, then the Contractor may thereupon by notice by registered post or
recorded delivery to the Employer, with a copy to the Architect, suspend the further execution of the Works
until such payment shall be made to him by the Employer.

(6) (a) Either before or within a reasonable time after the Practical Completion of the Works, the Contractor
shall send for confirmation to the Architect copies of all documents which are necessary for the purposes
of the completion of the computations which are required to be made for the settlement of the accounts
in accordance with paragraph (c) of this sub-clause including all the details of any oral instructions by the
Architect, which the Architect, under Clause 3(3)(b) of these Conditions, may confirm in writing as well
as all the documents relating to the accounts of the Nominated Sub-Contractors and the Nominated
Suppliers.

(b) The final adjustment of the Contract Sum shall be completed within the Period of Final Adjustment of
the Contract Sum stated in the Appendix to these Conditions and for this purpose, on the one hand, the
Contractor shall, not later than the first half of the said Period, submit to the Architect, with a copy to
the Quantity Surveyor, his own evaluation in respect of the settlement of the accounts in accordance with
paragraph (c) of this sub-clause and on the other hand the Architect, taking into consideration the
respective recommendation of the Quantity Surveyor, shall determine the final adjustment of the Contract
Sum and send his conclusion to the Contractor not later than the end of the said Period and, in any case,
before the issue of the Final Certificate under sub-clause (7) of this Condition.

(c) In the settlement of accounts, the following adjustments shall be made to the Contract Sum:

(i) The following amounts shall be deducted from the Contract Sum:

(1) all Prime Cost Sums in respect of Nominated Sub-Contractors and Nominated Suppliers
referred to in Clauses 28 and 29 of these Conditions respectively, inclusive of any Contractor’s
profit thereon and the provisional value of all materials and goods which are priced on the
basis of Prime Cost Rates, which Sums or Rates may be included in the Contract Bills,

(2) all Provisional Sums and the value of all items described as Provisional, which Sums or
Provisional items may be included in the Contract Bills,

(3) the value of the Daywork bill which may be included in the Contract Bills,

35
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 36

(4) the amount of the valuation of work omitted under Clause 12(4) as a result of variations
required or sanctioned by the Architect under Clause 12 of these Conditions,

(5) the net total amount of any deductions for labour cost or prices of materials fluctuations under
Clause 32 of these Conditions,

(6) any other amount which is required by this Contract to be deducted from the Contract Sum.

(ii) The following amounts shall be added to the Contract Sum:

(1) the Sub-Contract Sums and the Supply Contract Sums of all Nominated Sub-Contractors and
Nominated Suppliers, as finally adjusted or ascertained under all relevant provisions of the
Sub-Contracts or Supply Contracts,

(2) the tender sum (or such other sum as is appropriate in accordance with the terms of the tender)
for any work for which a tender made under Clause 28(g) has been accepted,

(3) the profit of the Contractor upon the amounts referred to in sub-paragraphs (ii)(1) and (ii)(2)
of this paragraph at the rates, if any, included in the Contract Bills or, in case where the
nomination arises as a result of Architect’s instructions given in regard to the expenditure of
Provisional Sums, at rates related to those included therein, or, if none included, at reasonable
rates,

(4) the total value of all materials and goods which are priced at Prime Cost Rates as finally
adjusted or ascertained under all relevant provisions of the Supply Contracts,

(5) the amount of the valuation of work executed by the Contractor in accordance with Architect’s
instructions in regard to the expenditure of Provisional Sums and the amounts for items
described as Provisional, which Sums or Provisional items may be included in the Contract
Bills,

(6) the amount of the valuation of work added under Clause 12(4) of these Conditions as a result
of variations required or suctioned by the Architect under Clause 12 of these Conditions,

(7) any amount paid or payable by the Employer to the Contractor as a result of payments made
or costs incurred by the Contractor under Clauses 5(2), 6, 7(3), 8, 16(2) and 16(3) of these
Conditions,

(8) any amount ascertained under Clauses 12(6), 25(1) and 35(3) of these Conditions,

(9) the net total amount of any additions for labour cost or prices of materials fluctuations under
Clause 32 of these Conditions,

(10) where applicable, the total amount properly paid by the Contractor in respect of any bank
charges to which Clause 38(2) of these Conditions refers, and

(11) any other amount which is required by this Contract to be added to the Contract Sum.

(7) Irrespective of the submission or not by the Contractor of his evaluation to the Architect in accordance with
paragraph (b) of sub-clause (6) of this Condition, the Architect, at the earliest possible (but not later than 3
months) from the end of the Defects Liability Period stated in the Appendix to these Conditions, or from the
Completion of Making Good Defects under Clause 16 of these Conditions, or from the receipt by the Architect
of the documents referred to in paragraph (a) of sub-clause (6) of this Condition, (whichever event is the latest),
shall issue the Final Certificate. The Final Certificate shall state:

(a) the sum of the amounts already stated as due in Interim Certificates [as well as in the Certificates issued
under sub-clauses (4)(b) and (4)(c) of this Condition], and

(b) the Contract Sum adjusted as necessary in accordance with the provisions of sub-clause (6)(c) of this
Condition,

36
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 37

and the difference (if any) between the two sums shall be expressed in the said Certificate as a balance due to
the Contractor from the Employer or to the Employer from the Contractor, as the case may be. Subject to any
deductions or additions authorised by these Conditions, the said balance, as from the expiration of the Time
Limit for Effecting Payments stated in the Appendix to these Conditions after the presentation of the Final
Certificate to the Employer by the Contractor, shall be a debt payable by the Employer to the Contractor or,
as the case may be, as from the expiration of the Time Limit for Effecting Payments stated in the Appendix to
these Conditions after the issue of the Final Certificate, shall be a debt payable by the Contractor to the
Employer.

(8) (a) Except where any proceedings for the settlement of disputes have been commenced under Clause 36 of
these Conditions or otherwise (either from the one or from the other party in this Contract) before the
date on which the Final Certificate has been issued or within 14 days from such issue, the said Certificate
shall have effect, in any such proceedings which arise out of or in connection with this Contract,

(i) as conclusive evidence that where the quality of materials or the standards of workmanship are to be
to the reasonable satisfaction of the Architect, the same are to such satisfaction, and

(ii) as conclusive evidence that any necessary effect has been given to all the terms of this Contract which
require an adjustment to be made to the Contract Sum,

save for any sum in the Final Certificate which is discovered to be erroneous by reason of fraud,
dishonesty or fraudulent concealment relating to the Works or to any part thereof or to any matter dealt
within the said Certificate, or any defect (including any omission) in the Works or in any part thereof,
which a reasonable inspection or examination at any reasonable time during the carrying out of the Works
or before the issue of the said Certificate, would have been impossible to disclose, or any accidental
inclusion or exclusion of any work, materials, goods or figure in any computation or any arithmetical
error in any computation. Provided always that in all abovementioned excepted cases, the Final
Certificate shall have effect as conclusive evidence as to all other sums included therein.

(b) If any proceedings for the settlement of disputes have been commenced under Clause 36 of these
Conditions or otherwise (either from the one or from the other party in this Contract) before the date on
which the Final Certificate has been issued, the said Certificate shall have effect, in any such proceedings
which arise out of or in connection with this Contract, as conclusive evidence as provided in sub-
paragraphs (i) and (ii) of paragraph (a) of this sub-clause after such proceedings have been completed,
whereupon the Final Certificate shall be subject to the terms of any award or judgement in or settlement
of such proceedings.

(c) If any proceedings for the settlement of disputes have been commenced under Clause 36 of these
Conditions or otherwise (either from the one or from the other party in this Contract) within 14 days from
the date on which the Final Certificate has been issued, the said Certificate shall have effect, in any such
proceedings which arise out of or in connection with this Contract, as conclusive evidence as provided in
sub-paragraphs (i) and (ii) of paragraph (a) of this sub-clause save only in respect of all matters to which
those proceedings relate.

(9) Save as provided in sub-clause (8) of this Condition, no Certificate of the Architect shall of itself be conclusive
evidence that any work, materials or goods referred to in the said Certificate, are in accordance with this
Contract.

Clause 32: Fluctuations in labour cost and in the prices of materials


(1) In the event of an increase or decrease in the hourly labour cost in construction (in these Conditions referred
to as “labour” or “the wages”), or in the prices of ready – mix concrete, fuel or steel reinforcement, the total
value of work executed and of unfixed materials and goods delivered to, placed on or adjacent to the Works
intended for incorporation therein [such total value of work executed and of unfixed materials and goods
delivered, shall be deemed not to include any amounts for work or for materials and goods in respect of which
the Contract Bills include Prime Cost Sums or for work executed by “Daywork” under clause 12(4)(c) of these

37
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 38

Conditions] before the Date for Completion stated in the Appendix to these Conditions or the end of any
extension of time granted under Clauses 24 and 34(1)(c) of these Conditions, shall be increased or decreased
accordingly. In order to ascertain the existence of an increase or decrease in the wages or in the prices of any
of the aforementioned materials and to calculate the relevant amounts, the following rules shall apply:

(a) The increase or decrease in the wages or in the prices of any of the aforementioned materials shall be
calculated taking into account the official Government Basic Indices for labour and the aforementioned
materials as compiled and published at set intervals by the Department of Statistics and Research,
Ministry of Finance, of the Republic. The basic index for calculating fluctuations in labour cost or in the
prices of materials shall be as specified in paragraph (b) of this sub-cause.

(b) Should any official index published shows an increase or decrease in the wages or in the prices of any of
the aforementioned materials on the basic index, then, the total value of work executed and of unfixed
materials and goods delivered to, placed on or adjacent to the Works intended for incorporation therein
shall be increased or decreased as follows:

(i) On the date when the index of the wages or the prices of any of the aforementioned materials shall
show an increase or decrease, the Contractor shall submit to the Architect, with a copy to the
Quantity Surveyor, a valuation of the work executed and of unfixed materials and goods delivered
during the period between the date on which the said index showed an increase or decrease and
the date of the immediately preceding index of the wages and of the prices of any of the
aforementioned materials. The Architect shall then instruct the Quantity Surveyor to check and
verify the value of such work executed and unfixed materials and goods delivered, and the Quantity
Surveyor, at his discretion, may increase or decrease the same.

(ii) The cost of labour or any of the aforementioned materials shall be calculated on the basis of the
percentage stated in the Appendix to these Conditions as an Elemental Percentage for labour and
for every type of material, on the verified value of work executed and of the unfixed materials and
goods delivered (notwithstanding any references to the official indices to particular materials, such
verified work executed and materials and goods delivered shall be deemed to include ready-mix
concrete of all grades and high tensile steel reinforcement bars 12 mm diameter and over,
irrespective of origin, provided that the same are in compliance with the provisions of Clause 7 of
these Conditions) in accordance with sub-paragraph (i) hereabove.

The fluctuating increases or decreases in labour cost and in the prices of materials, shall then be calculated
as follows:

A = W [L% X (L-Lo) + C% X (C-Co) + F% X (F-Fo) + St% X (St-Sto)]

Lo Co Fo Sto

where,

A= The amount to be added to or deducted from the total value of work executed and of unfixed
materials and goods delivered.

W= The verified value of work executed and of unfixed materials and goods delivered, calculated in
accordance with sub-paragraph (i) hereabove.

L% = The Elemental Percentage for Labour as stated in the Appendix to these Conditions.

Lo = The applicable official labour index published or to be published for the month of the material
date for the submission of tenders.

L= The last official labour index published or to be published for the month preceding the date of
submission of the valuation by the Contractor.

C% = The Percentage for Ready – Mix Concrete as stated in the Appendix to these Conditions.

38
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 39

Co = The applicable official index for ready mix- concrete, grade C30, published or to be published for
the month of the material date for the submission of tenders.

C= The last official index for ready – mix concrete, grade C30, published or to be published for the
month preceding the date of submission of the valuation by the Contractor.

F% = The Percentage for Fuel as stated in the Appendix to these Conditions.

Fo = The applicable official index for fuel (gas oil) published or to be published for the month of the
material date for the submission of tenders.

F= The last official index for fuel (gas oil) published or to be published for the month preceding the
date of submission of the valuation by the Contractor.

St% = The Percentage for Steel Reinforcement as stated in the Appendix to these Conditions.

Sto = The applicable official index for 12 mm dia. and over high tensile steel reinforcement bars
published or to be published for the month of the material date for the submission of tenders.

St = The last official index for 12 mm dia. and over high tensile steel reinforcement bars published or
to be published for the month preceding the date of submission of the valuation by the
Contractor.

(2) Under the provisions of sub-clause (1) of this Condition, in the event of an increase or decrease in the wages
or in the prices of any of the aforementioned materials the total value of work executed and of unfixed materials
and goods delivered to, placed on or adjacent to the Works intended for incorporation therein, after the Date
for Completion stated in the Appendix to these Conditions or the end of any extension of time granted under
Clauses 24 and 34(1)(c) of these Conditions, shall be increased or decreased according to the increase or
decrease in the wages or in the prices of the aforementioned materials, which increase or decrease shall be
calculated as follows:

P = WXPt

Wt

where,

P = The amount to be added to or deducted from the total value of work executed and of unfixed materials
and goods delivered.

W = The verified value of work executed and of unfixed materials and goods delivered, calculated in
accordance with sub-paragraph (b)(i) of sub-clause (1) of this Condition.

Pt = The net total amount of additions and/or deductions for fluctuations in labour cost and in the prices of
materials, calculated in accordance with sub-clause (1) of this Condition, up to the Date for Completion
stated in the Appendix to these Conditions or the end of any extension of time granted under Clauses 24
and 34(1)(c) of these Conditions.

Wt = The verified value of work executed and of unfixed materials and goods delivered, up to the Date for
Completion stated in the Appendix to these Conditions or the end of any extension of time granted under
Clauses 24 and 34(1)(c) of these Conditions.

(3) Consequent to the application of sub-clauses (1) and (2) of this Condition, any amount from time to time
ascertained to be added to or deducted from the total value of work executed and of unfixed materials and
goods delivered, shall be added to or deducted from the Contract Sum, as the case may be, and if an Interim
Certificate is issued after the date of ascertainment, any such amount shall be added to or, as the case may be,
deducted from the amount which would otherwise be stated as due in such Certificate.

39
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 40

Clause 33: Outbreak of hostilities


(1) If during the currency of this Contract there shall be an outbreak of hostilities (whether war is declared or not)
in which the Republic shall be involved on a scale involving the general mobilisation of its armed forces, then
either the Employer or the Contractor may at any time by notice by registered post or recorded delivery to the
other, forthwith determine the employment of the Contractor under this Contract:

Provided that such a notice shall not be given:

(a) before the expiration of 28 days from the date on which the order is given for general mobilisation as
aforesaid, or

(b) after Practical Completion of the Works, unless the Works or any part thereof shall have sustained war
damage as defined in Clause 34(4) of these Conditions.

(2) The Architect may within 14 days after a notice under this Condition shall have been given or received by the
Employer, issue instructions to the Contractor requiring the execution of such protective work as shall be
specified therein and/or the continuation of the Works up to points of stoppage to be specified therein, and the
Contractor shall comply with such instructions as if the notice of determination had not been given.

Provided that if the Contractor shall for reasons beyond his control be prevented from completing the work to
which the said instructions relate within 3 months from the date on which the instructions were issued, he may
abandon such work.

(3) Upon the expiration of 14 days from the date on which a notice of determination shall have been given or
received by the Employer under this Condition or where works are required by the Architect under the
preceding sub-clause, upon completion or abandonment as the case may be of any such works, the provisions
of sub-clause (2) [except sub-paragraph (vi) of paragraph (b)] of Clause 27 of these Conditions shall apply, and
the Contractor shall also be paid by the Employer the value of any work executed pursuant to instructions given
under sub-clause (2) of this Condition, the value being ascertained in accordance with Clause 12(4) of these
Conditions as if such work were a variation required by the Architect.

Clause 34: War Damage


(1) In the event of the Works or any part thereof or any unfixed materials or goods, delivered to, placed on or
adjacent to the Works intended for incorporation therein, sustaining war damage, then, notwithstanding
anything expressed or implied elsewhere in this Contract:

(a) the occurrence of such war damage shall be disregarded in computing any amounts payable to the
Contractor under or by virtue of this Contract,

(b) the Architect may issue instructions requiring the Contractor to remove and/or dispose of any debris
and/or damaged work and/or to execute such protective work as shall be specified in the said instructions,

(c) the Contractor shall reinstate or make good such war damage and shall proceed with the carrying out and
completion of the Works, and the Architect shall grant to the Contractor a fair and reasonable extension
of time for completion of the Works, and

(d) the removal and disposal of debris or damaged work, the execution of protective works and the
reinstatement and making good of such war damage shall be deemed to be a variation required by the
Architect.

(2) If at any time after the occurrence of war damage as aforesaid either party serves notice of determination under
Clause 33 of these Conditions, the expression “protective work” as used in the said Clause shall in such case be
deemed to include any matters in respect of which the Architect can issue instructions under paragraph (b) of
sub-clause (1) of this Condition and any instructions issued under the said paragraph prior to the date on which
notice of determination is given or received by the Employer and which shall not then have been completely

40
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 41

complied with, shall be deemed to have been given under Clause 33(2) of these Conditions.

(3) The Employer shall be entitled to any compensation which may at any time become payable out of monies
provided by the Government of the Republic in respect of war damage sustained by the Works or any part
thereof or any unfixed materials or goods intended for the Works which shall at any time have become the
property of the Employer.

(4) The expression “war damage” as used in this Condition means damage occurring (whether accidentally or not)
as the result of war, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared
or not) civil war, mutiny, riot, military or popular rising, insurrection, rebellion, revolution or any of the events
or causes that determine the proclamation or maintenance of martial law or state of emergency.

Clause 35: Antiquities


(1) All fossils, antiquities and other objects of interest or value which may be found on the Site or in excavating the
same during the progress of the Works shall become the property of the Republic, and upon discovery of such
an object the Contractor shall forthwith:

(a) use his best endeavours not to disturb the object and shall cease work if and insofar as the continuance
of work would endanger the object or prevent or impede its excavation or its removal,

(b) take all steps which may be necessary to preserve the object in the exact position and condition in which
it was found, and

(c) inform the Architect or the Clerk of Works of the discovery and precise location of the object.

(2) The Architect shall issue instructions in regard to what is to be done concerning an object reported by the
Contractor under the preceding sub-clause, and (without prejudice to the generality of this power) with such
instructions may require the Contractor to permit the examination, excavation or removal of the object by a third
party. Any such third party shall for the purposes of Clause 19 of these Conditions be deemed to be a person
for whom the Employer is responsible and not to be a sub-contractor.

(3) If upon a relevant written notice being given to him by the Contractor, the Architect is of the opinion that
compliance with the provisions of sub-clause (1) of this Condition or with an instruction issued under sub-
clause (2) of this Condition, has involved or is likely to involve the Contractor in direct loss and/or expense for
which he would not be reimbursed by a payment made under any other provision of this Contract and if such
written notice is given within a reasonable time of it becoming or reasonably should have become apparent to
the Contractor that he has incurred or he is likely to incur the direct loss and/or expense, then, provided that
the Contractor, within reasonable time (having regard to the date of the aforesaid notice) shall submit to the
Architect a written application in this respect (which application shall include full details of the said direct loss
and/or expense) the Architect shall instruct the Quantity Surveyor to ascertain the amount of such loss and/or
expense. Any amount from time to time so ascertained shall be added to the Contract Sum and if an Interim
Certificate is issued after the date of ascertainment, any such amount shall be added to the amount which would
otherwise be stated as due in such Certificate.

Clause 36: Settlement of disputes


(1) In the event where any dispute or difference shall arise between the Employer or the Architect on his behalf
on the one hand and the Contractor on the other hand (except for any dispute or difference under Clause 14A
of these Conditions) whether arising during the execution or the suspension or after the completion or
abandonment of the Works and either before or after the determination or the alleged determination of the
employment of the Contractor under this Contract, in regard to

(a) the construction of this Contract, or

(b) any matter or thing of whatsoever nature arising out of this Contract or in connection therewith and/or

41
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 42

in connection with the execution of the Works, including any matter or thing left by this Contract to the
discretion of the Architect or the withholding by the Architect of any Certificate to which the Contractor
may claim to be entitled to or the adjustment of the Contract Sum in accordance with Clause 31(6)(c) of
these Conditions or the rights and liabilities of the parties under Clauses 26, 27, 33 or 34 of these
Conditions or the unreasonable either raising of objection or withholding of any consent or agreement
by the Employer or by the Architect on his behalf or by the Contractor,

then, such dispute or difference shall be referred in writing by either party or, as the case may be, by both
parties, to the Architect (with an express mention that the reference is made in accordance with the provisions
of sub-clause (1) of this Condition and, as the case may be, with a copy to the other party) to be settled by him
and to issue a written decision in respect thereto (such decision hereinafter referred to as “the Decision of the
Architect”).

(2) In case where, in accordance with sub-clause (1) of this Condition, the dispute or difference is referred to for
settlement by the Architect, unless in the meantime the Works have been abandoned or the employment of the
Contractor under this Contract has been determined or allegedly determined, the Contractor, in every case, shall
proceed with the execution of the Works with due care and diligence and both the Employer and the Contractor,
shall comply with the Decision of the Architect, whichever this may be, unless and until such Decision is revised
further to any reference of the said dispute or difference to Arbitration in accordance with sub-clause (4) of this
Condition.

(3) The Decision of the Architect shall, inter alia, expressly mention that it is a Decision which is issued in
accordance with the provisions of sub-clause (1) of this Condition. In case where such Decision does not contain
the aforementioned express mention, it shall not be regarded as a Decision of the Architect nor it shall bear the
legal effect which is contracted under such Decision.

(4) The Architect shall be obliged to conclude and communicate his Decision to both the Employer and the
Contractor within 28 days from the date of submission to him of the matter in dispute. The Decision of the
Architect shall be final and binding on the parties unless either the Employer or the Contractor, within 28 days
from receipt of such Decision, by written notice to the Architect and with a copy to the other party, objects to
the same, either wholly or in part, in which case, or in case where the Architect, for any reason, fails to conclude
and communicate his Decision to the parties as aforesaid, the interested party shall have a right, by written
notice to the other party, to demand the immediate reference of the dispute or difference to Arbitration.
Provided always that in case where the Architect, for any reason, fails to conclude and communicate his Decision
to the parties as aforesaid but thereafter no party demands, within the aforementioned time period, the reference
of the difference or dispute to Arbitration, then, on the one hand the aforementioned failure by the Architect
shall be deemed as final rejection from his behalf of any claims which may have been the subject of the dispute
or difference and on the other hand the absence of any demand for reference of the dispute or difference to
Arbitration shall be deemed as final and indisputable acceptance by both parties of the rejection of the claims
as aforesaid, furthermore, no other claim or procedure in connection with the matter of dispute or difference
shall be allowed to be again brought forward either by Arbitration or by virtue of any other provision of this
Contract.

(5) In case of reference of the dispute or difference to Arbitration the following provisions shall apply:

(a) Any party by written notice shall call the other party at a meeting within a stated time period (such time
period shall not be less than 7 days) to reach an agreement regarding the joint appointment of a single
Arbitrator to act as sole Arbitrator for the settlement of the dispute or difference. If within 14 days from
the date of expiration of the time period stated in the said notice the parties do not agree, for any reason,
as to the joint appointment of a sole Arbitrator then any party shall have a right, with a notice, by
registered post or recorded delivery to the other party, to name the Arbitrator of his choice and to demand
from the other party to name the Arbitrator of his own choice. If within 7 days from receipt of the said
notice the other party, for any reason, refuses or fails to name the Arbitrator of his own choice, then the
relative provisions of the Arbitration Law, Chapter 4, of the Republic shall apply.

(b) In case where, in accordance with the provisions of paragraph (a) of this sub-clause, the parties appoint
one Arbitrator each of their own choice, the two Arbitrators shall be obliged, within 14 days from the date

42
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 43

of the appointment of the last of them and in any case prior to the examination of any matter in relation
to the Arbitration, to proceed with the joint appointment of an Umpire to act as Umpire for the settlement
of the dispute or difference. In case where the two Arbitrators, for any reason, fail to appoint an Umpire
as aforesaid, then the relative provisions of the Arbitration Law, Chapter 4, of the Republic shall apply.

(c) Subject to the provisions of Clauses 3(2) and 31(8) of these Conditions, the sole Arbitrator, the two
Arbitrators or the Umpire, as the case may be, shall without prejudice to the generality of their powers,
have power to direct such measurements and/or valuations as may in their opinion be desirable in order
to determine the rights of the parties and to ascertain and award any sum which ought to have been the
subject of or included in any Certificate and to open up, review and revise any Certificate, opinion,
decision, requirement or notice and to determine all matters in dispute which shall be submitted to them
in the same manner as if no such Certificate, opinion, decision, requirement or notice had been given.

(d) Unless it is otherwise expressly stated in this Condition, for anything concerning the conduct or the
procedure of the Arbitration, wherever the same or any part of it shall be conducted, including the legal
effect of and the compliance to the award in the Arbitration, there shall apply [but no so as to derogate
from the generality of sub-clause (8) of this Condition] the provisions of the Arbitration Law, Chapter
4, of the Republic.

(e) The award of the sole Arbitrator, the two Arbitrators or the Umpire, as the case may be, shall be final
and binding on the parties.

(f) The fees and expenses of the sole Arbitrator, the two Arbitrators or the Umpire, as the case may be,
shall be allocated among the parties as the sole Arbitrator, the two Arbitrators or the Umpire shall decide
and state in the award. Always provided that during the Arbitration procedure, the sole Arbitrator, the
two Arbitrators or the Umpire, as the case may be, shall have a right to instruct the parties to share, on
a temporary basis, and effect interim payments on account of the said fees and expenses which final fees
and expenses shall be finally reallocated among the parties at the issue of the award as above.

(6) Any reference of any dispute or difference, under this Condition, for settlement either to the Architect or, as
the case may be, to Arbitration, except for reference:

(a) on paragraph 3. or on paragraph 4. of the Articles of Contract Agreement, or

(b) on the question whether or not the issue of an instruction is empowered by these Conditions, or

(c) on the question whether or not a Certificate has been improperly withheld, or

(d) on the question whether a Certificate is not in accordance with these Conditions, or

(e) on any dispute or difference

(i) under Clause 17 of these Conditions in regard to the withholding of consent by the Contractor, or

(ii) under Clause 24 of these Conditions in regard to the granting of extension of time for the completion
of the Works, or

(iii) under Clause 28(a) or Clause 29(b) of these Conditions in regard to the raising of objection by the
Contractor, or

(iv) under Clause 33 or Clause 34 of these Conditions,

shall not be opened until after the Practical Completion or alleged Practical Completion of the Works or
termination or alleged termination of the Contractor’s employment under this Contract or abandonment of the
Works, unless with the written consent of the Employer or the Architect on his behalf on the one hand and the
Contractor on the other hand.

(7) Provided that if the dispute or difference to be referred, under this Condition, for settlement either to the
Architect or, as the case may be, to Arbitration raises issues which are substantially the same as or connected
with issues raised in a related dispute between:

43
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 44

(a) the Contractor and any Nominated Sub-Contractor under the Sub-Contract, or

(b) the Contractor and any Nominated Supplier under the Supply Contract,

and if the related dispute has already been referred for settlement either to the Architect or, as the case may
be, to Arbitration, the Employer and the Contractor hereby agree that such dispute or difference shall be
referred initially to the Architect and, as the case may be, thereafter to the sole Arbitrator or the two Arbitrators
and Umpire appointed pursuant to the terms of the said Sub-Contract or Supply Contract to settle the related
dispute, in which case the Architect or such sole Arbitrator or two Arbitrators and Umpire shall have power
to make such directions and all necessary awards in the same way as if the procedure of the High Court as to
joining one or more defendants or joining co-defendants or third parties was available to the parties and to the
Architect or the sole Arbitrator or the two Arbitrators and Umpire and, in any case, with regard to the award
of such sole Arbitrator or two Arbitrators and Umpire, such award shall be final and binding on the parties.

(8) Unless it is otherwise expressly stated in this Condition, whatever the nationality, residence or domicile of the
Employer, the Architect, the Contractor, any Nominated Sub-Contractor or Nominated Supplier or any
Arbitrator or Umpire may be, and wherever the Works or any part thereof are situated, the Law of the Republic
shall be the proper Law of this Contract.

(9) Without prejudice to any of the foregoing, in case where, further to the communication of or the failure to
communicate the Decision of the Architect and before the reference of the dispute or difference to Arbitration
in accordance with the provisions of sub-clause (4) of this Condition, the Employer and the Contractor jointly
decide to settle the dispute or difference by mediation, then the Employer and the Contractor shall jointly refer
the said dispute or difference to a jointly appointed Mediator. Provided always that whichever the decision of
such Mediator may be, such decision shall not be final and binding on the parties nor it shall impede, in any way,
the reference, either before or during the mediation procedure, of the dispute or difference to Arbitration in
accordance with the provisions of this Condition and that the decision of the Mediator as well as any oral,
written or other evidence submitted by the parties during the Mediation procedure shall be deemed to be
privileged and shall not be possible, by itself, to constitute and be allowed as admissible evidence in the
Arbitration.

Clause 37: Performance Guarantee


(1) Where and to the extend it is stated in the Appendix to Conditions that the Performance Guarantee to which
this Condition applies will be provided, then the Contractor, at his own cost, for the purposes of the due
performance by him of this Contract, shall obtain and furnish the Employer (prior to the signing of the Articles
of Contract Agreement and within the time limit stated in the Contract Bills) with an irrevocable Guarantee
from one or more than one recognized banks in the Republic to be jointly and severally bound with the
Contractor to the Employer notwithstanding any variations, alterations or extensions which may be made,
given, conceded or agreed under these Conditions. Any such Guarantee shall be for a sum equal to the
percentage (in these Conditions called “the Performance Guarantee Percentage”) stated in the Appendix to
these Conditions, on the Contract Sum. The terms of the said Guarantee and the bank or banks through which
the Guarantee shall be obtained as aforesaid, shall be subject to the approval of the Employer.

Provided always that the aforementioned Guarantee shall include a qualification to the extent (but no further)
that the Employer will be entitled to payment of the sum stated in the said Guarantee where beforehand:

(a) the Architect had certified in writing to the Employer that the Contractor continues or repeats any or
more than one of the defaults which justify the termination of the employment of the Contractor under
this Contract by the Employer in accordance with the provisions of Clause 26(1) of these Conditions, or

(b) the employment of the Contractor under this Contract had been determined in accordance with the
provisions of Clause 26(2) of these Conditions.

(2) The Performance Guarantee referred to in sub-clause (1) hereabove shall remain in effect until the Practical
Completion of the Works. Where more than one Certificate of Practical Completion is issued pursuant to

44
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 45

Clause 17 (b) of these Conditions, the said Performance Guarantee shall be reduced by proportion of the total
value of any relevant part on the Contract Sum.

Clause 38: Advance Payments


(1) (a) Where and to the extent it is stated in the Appendix to these Conditions that the Advance Payment to
which this Condition applies will be made, an advance payment shall be effected to the Contractor by the
Employer on account for the exclusive purposes of mobilization expenses and of purchasing materials for
use in the Works. Any such Advance Payment will be limited to a sum equal to a percentage (in these
Conditions called “the Advance Payment Percentage”) as stated in the Appendix to these Conditions, on
the Contract Sum, less, all Prime Cost Sums, Provisional Sums and the value of the Daywork bill. Any
such Advance Payment shall be made to the Contractor further to the issue by the Architect of a
Certificate in this respect under Clause 31(1) of these Conditions, subject to the prior furnishing of the
Employer by the Contractor with an irrevocable bank guarantee (save for possible full liquidation of the
Advance Payment coming into effect earlier, such guarantee shall be maintained in force until the
Practical Completion of the Works) for a sum equal to the Advance Payment. Provided always that the
terms of the said guarantee shall be subject to the approval of the Employer.

Provided always that the aforementioned guarantee shall include a qualification to the extent (but no
further) that consequently to the periodic liquidation of the Advance Payment referred to in paragraph
(b) of this sub-clause, the sum of the said guarantee shall be reduced proportionally.

(b) Any advance payment effected under paragraph (a) of this sub-clause shall be liquidated in stages by
being deducted periodically from the payments made to the Contractor under these Conditions in
proportion to the total value of work, materials and goods and the profit which are referred to in
paragraphs (a), (b) and (c) of Clause 31(2) of these Conditions (less any such payments for Nominated
Sub-Contractors and Nominated Suppliers) and certified under the provisions of Clause 31 of these
Conditions.

(2) In case where any Advance Payments shall be made by the Employer to any Nominated Sub-Contractors or
Nominated Suppliers on account for the exclusive purpose of their mobilization expenses and of purchasing
materials to be used for the carrying out of the Works, such Advance Payments shall be effected to the
Nominated Sub-Contractors or Nominated Suppliers through the Contractor further to the issue by the
Architect of a Certificate in this respect under Clause 31(1) of these Conditions subject to the prior furnishing
of the Employer by the Contractor and consequently of the Contractor by the said Nominated Sub-Contractors
or Nominated Suppliers with an irrevocable bank guarantee [such guarantee shall be subject to the provisions
of paragraphs (a) and (b) of sub-clause (1) of this Condition] in regard to the said Advance Payment. Provided
always that the total amount of the net expenses of the Contractor with regard to bank charges which are paid
by him to furnish the Employer with the said guarantee shall be added to the Contract Sum.

(3) Irrespective of the foregoing provisions in this Condition, any Advance Payments which may be effected to the
Contractor by the Employer under sub-clauses (1) and (2) of this Condition shall, in any case, be subject to full
liquidation before the Practical Completion of the Works.

Clause 39: Interest on outstanding payments


Without prejudice to any other rights or remedies which either the Employer or the Contractor may possess, in case
where any authorised payments to be made by either party to the other in accordance with these Conditions (including
payments in respect of any costs or sums which are recoverable as debts) shall become outstanding by the failure, for
any reason, of either party to effect to the other any of the said payments on or (where such authorised payments are
to be made within the Time Limit for Effecting Payments stated in the Appendix to these Conditions) within any set
time limit from the date they become or ought to have become due in accordance with these Conditions, then, any
such outstanding payments shall bear an interest, at the highest interest rate which is set by the Central Bank of the
Republic to apply for the period within which this Contract is signed by the Employer and the Contractor, to apply

45
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 46

on the said payments from the date they, under these Conditions, shall or ought to have become due. Such interest
may be deducted by the claiming party from any monies which he owes or will owe to the other party under this
Contract or may be recovered by the claiming party from the other party as a further debt.

Clause 40: Subsequent legislation


In case where, after the signing of the Articles of Contract Agreement by the parties, there shall occur, at any time
within the duration of this Contract, either any change to the Legislation of the Republic or issue of any new or change
to any previous Ministerial Order or Regulation based on any Law of the Republic (excluding any Legislation, Order
or Regulation with regard to Income Tax) or issue of any new or change to any previous order or regulation of any
Statutory Authority which has any jurisdiction with regard to the Works or with whose systems the same are or will
be connected and such occurrence causes, under the provisions of this Contract, on the Contractor any additional
expenses (excluding any losses) or gains in this Contract, except for such expenses or gains for which a provision is
made elsewhere in these Conditions, the said expenses or gains shall be added to or, as the case may be, deducted from
the Contract Sum.

46
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 47

APPENDIX TO THE CONTRACT CONDITIONS


Clause
16, 17 and 31 - Defects Liability Period
from the date named
in the Certificate of
Practical Completion of
the Works (if none other
stated, it shall be 12 months) …………………………………….Months

20(1)(c) - Minimum amount of insurance


cover for any one occurrence
or series of occurrences
arising out of one event €..………………………………………….

20(2)(a)* - Minimum amount of insurance


APPLICABLE/ cover under a Joint Names
NOT APPLICABLE Policy for injury or damage
to property €..………………………………………….

21 - Insurance of the Works and/or


of existing structures Applicable Clause……………………..

21 - Percentage to cover professional


fees under an All Risks Joint
Names Policy …………………………………………...%

21(3)(a)(i)* - Minimum amount of insurance


APPLICABLE/ cover under a Joint Names
NOT APPLICABLE Policy for injury or damage
to existing structures and
their contents €..……………………………………….…

22 - Date for Possession ……………………………………………..

22 - Date for Completion ………………………………..……………

23 - Liquidated Damages
for Delays in Completion €..………..……………………...per Day

27, 28 and 31 - Time Limit for Effecting


Payments (if none other
stated, it shall be 14 days) ……………………………………….Days

27(1)(b) - Continuous suspension time


period (if none other stated,
it shall be 3 months) …………………………………….Months

31(1) - Period of Interim Certificates


(if none other stated, it shall
be 1 per month) ……………………per……………………

* Delete according to Contract requirements

47
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 48

APPENDIX TO THE CONTRACT CONDITIONS (CONT’D)


Clause
31(3)(a) - Retention Percentage
(if none other stated, it shall
be 10,00%) …………………………………………...%

31(3)(a) - Retention Limit Percentage


(if none other stated, it shall
be 5,00%) …………………………………………...%

31(6)(b) - Period of Final Adjustment


of the Contract Sum from the
date named in the Certificate
of Practical Completion of the
Works (if none other stated,
it shall be 12 months) …………………………………….Months

32(1) - Fluctuations in labour cost and in


the prices of materials

32(1)(b) - Elemental Percentage for Labour (L)


(if none other stated, it shall be 40,00%) ………………………………….…..%

32(1)(b) - Elemental Percentage for Ready - Mix


Concrete (C)
(if none other stated, it shall be 8,00%) ………………………………….…..%

32(1)(b) - Elemental Percentage for Fuel (F)


(if none other stated, it shall be 4,00%) ………………………………….…..%

32(1)(b) - Elemental Percentage for Steel


Reinforcement (St)
(if none other stated, it shall be 8,00%) ………………………………….…..%

37* - Performance Guarantee Percentage


APPLICABLE/ (if applicable and none other stated,
NOT APPLICABLE it shall be 10,00%) …………………………………………………….…..%

38* - Advance Payment Percentage


APPLICABLE/ (if applicable and none other stated,
NOT APPLICABLE it shall be 10,00%) ………………………………………………….…..%

* Delete according to Contract requirements

48
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 49
ENTYPO_E1(A)_ENGLISH: 1 27/2/15 07:22 50

You might also like