Fidic conditions of subcontract agreement
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- 1. Ca -II FEDERATION INTERNATIONALE DES INGENIEURS-CONSFILS I INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS INTERNATIONALE VEREINIGUNG BERATENI)ER INGENIEIJRE FEDERACION INTERNACIONAL DE INGENIEROS CONSULTORES CONDITIONS OF SUBCONTRACT FOR WORKS OF CIVILI ENGINEERING CONSTRUCTIONIIUU Part I - General ConditionsUU Part II - Guidance for the Preparation of Conditions of Particular Application With Forms of Offer and Agreement (For use in conjunction with the Conditions of Contract for Works of Civil Engineering Construction, Fourth Edition 1987 Reprinted 1992 with further amendments) c1st Edition 1994
- 2. FIDIC is the International Federation of Consulting Engineers comprised ofNational Associations whose members comply with FIDICs Code of EthicsFIDIC was founded in 1913 by three national associations of independentconsulting engineers within Europe. The objectives of forming the federation wereto promote in common the professional interests of the member associations and todisseminate information of interest to members of its component nationalassociations. Today FIDIC membership numbers 56 countries from all parts of theglobe, representing most of the independent consulting engineers in the world.FIDIC arranges seminars, conferences and other events in the furtherance of itsgoals: maintenance of high ethical and professional standards; exchange of viewsand information; discussion of problems of mutual concern among memberassociations and representatives of the international financial institutions; anddevelopment of the engineering profession in developing countries.FIDIC publications include proceeding of the various conferences and seminars,information for consulting engineers, project owners and international developmentagencies, standard pre-qualification forms contract documents and client/consultantagreements. They are available from the FIDIC secretariat in Switzerland. Copyright FIDIC 1994All rights reserved.No part of this publication may bereproduced or transmitted in anyform or by any means withoutpermission of the publisher.Published byFdration Internationale desIngnieurs-Conseils (FIDIC)P.O. Box 861000 Lausanne 12SwitzerlandPhone +41216535003Fax + 41 21 653 54 32
- 3. CONDITIONS OF SUBCONTRACTFOR WORKS OF CIVILENGINEERING CONSTRUCTIONPart I - General ConditionsPart II - Guidance for the Preparation ofConditions of Particular ApplicationWith Forms of Offer and Agreement(For use in conjunction with the Conditions of Contract forWorks of Civil Engineering Construction, Fourth Edition 1987Reprinted 1992 with further amendments)1st Edition 1994
- 4. FOREWORDThe terms of the Conditions of Subcontract for Works of Civil EngineeringConstruction have been prepared by the Fddration Internationale des Ingnieurs-Conseils (FIDIC) and are recommended for use in conjunction with the Conditionsof Contract for Works of Civil Engineering Construction (Fourth Edition 1987,Reprinted 1992 with Further Amendments). The Conditions, subject to minormodifications, are equally suitable when the Subcontractor has been nominated bythe Employer.The version in English of the Conditions is considered by FIDIC as the official andauthentic text for the purpose of translation.In the preparation of the Conditions of Subcontract it was recognised that whilethere are numerous Clauses which will be generally applicable there are someClauses which must necessarily vary to take account of the circumstances andlocality of the Subcontract Works. The Clauses of general application have beengrouped together in Part I of this document and are referred to as Part I - GeneralConditions. They have been printed in a form which will facilitate their inclusionas printed in the subcontract documents normally prepared.The General Conditions are linked with the Conditions of Particular Application,referred to as Part II of the Subcontract, by the corresponding numbering of theClauses, so that Parts I and II together comprise the Conditions of Subcontractgoverning the rights and obligations of the parties.The Conditions of Particular Application must be specially drafted to suit eachindividual Subcontract. The guidance in Part II of this document is intended to aidin this task by giving options for various clauses where appropriate.Use of clauses in Part II may be necessary or appropriate for one or more reasons,of which the following are examples:(i) Where the wording in Part I specifically requires that further information isto be included in Part II and the Conditions of Subcontract would not be completewithout that information, namely in Sub-Clauses 1.1 paragraphs (a)(i), (ii) and (iv),(b)(i) and (e)(ii), 2.3, 6.1, 15.1 and 15.2.(ii) Where the wording in Part I indicates that supplementary information may beincluded in Part II, but the Conditions of Subcontract would still be complete withoutany such information, namely in Sub-Clauses 4.4, 5.2, 5.3, 6.2, 7.3, 12.1, 19.1, 19.2and Clause 22.(iii) Where the type, circumstances or locality of the Subcontract Worksnecessitate additional Clauses or Sub-Clauses (for example, when the Subcontractorhas been nominated by the Employer).(iv) Where the governing law or exceptional circumstances necessitate analteration in Part I. Such alterations should be effected by stating in Part II that aparticular Clause, or part of a Clause, in Part I is deleted and giving the substituteClause, or part, as applicable.In Part II, in the case of some Clauses, example wording is provided. In other cases,however, only guidance for drafting purposes is given. Before incorporating anyexample wording it must be checked to ensure that it is wholly suitable for theparticular circumstances and, if not, it must be varied. Where example wording isvaried and in all cases where additional material is included in Part II, care must betaken to ensure that no ambiguity is created with Part I or between the Clauses inPart II.
- 5. ACKNOWLEDGEMENTSFIDIC extends special thanks to Christopher R. Seppala and Maurizio Ragazzi,White & Case, Paris, for acting as the principal drafters of this document. Thiscontribution to FIDIC and the profession is highly appreciated.The draft was reviewed initially by Mario Asin of TAMS, USA and Edward Corbettof Corbett & Co., UK and subsequently by the World Bank, European InternationalContractors, the International Bar Association and ConSpec, all of whom providedvaluable comments. Advice on insurance matters was provided by Martyn J. Nixonof Willis Corroon, London.The preparation was carried out under the general direction of the FIDIC ContractsCommittee comprising K.B. (Tony) Norris, Consulting Engineer, UK; MichaelMortimer-Hawkins of SwedPower, Sweden; and John Bowcock of Sir AlexanderGibb & Partners Ltd. UK.FIDIC wishes to record its appreciation of the time and effort devoted by all theabove.The ultimate decision on the form and content of the document rests with FIDIC.
- 6. CONTENTS PART I: GENERAL CONDITIONS Definitions and Interpretation1 .1 Definitions1.2 Headings and Marginal Notes1 .3 Interpretation1.4 Singular and Plural1 .5 Notices, Consents, Approvals, Certificates, Confirmations and Determinations1.6 Instructions in Writing General Obligations2.1 Subcontractors General Responsibilities 22.2 Performance Security 32.3 Programme to be submitted by Subcontractor 32.4 Assignment of Subcontract 32.5 Sub-subcontracting 3 Subcontract Documents 43.1 Language/s 43.2 Governing Law 43.3 Subcontract Agreement 43.4 Priority of Subcontract Documents 4 Main Contract 44.1 Subcontractors Knowledge of Main Contract 44.2 Subcontractors Responsibilities in Relation to Subcontract Works 44.3 No Privity of Contract with Employer 54.4 Possible Effects of Subcontractors Breaches of Subcontract 5 Temporary Works, Contractors Equipment and/or Other Facilities (if Any) s5.1 Subcontractors Use of Temporary Works 55.2 Subcontractors Use of Contractors Equipment and/or Other Facilities (if Any) in Common with Other Subcontractors 55.3 Subcontractors Exclusive Use of Contractors Equipment and/or Other Facilities (if Any)
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