1.
SECTIONAL
COMPLETION
valuation of relevant part within 7days
from the date which the employer has taken possession of the finished part then
issuing of a certificate stating the estimate of the approximate total value of
the relevant part.
Issuing of certificate for practical
completion for relevant part.
Insurance relevant part shall be reduced
from the insured relevant part in which the employer will be at risk due to his
possession of such relevant part.
Liquidated damages relevant part shall
be paid for by the contractor or less the contract sum
Retention fund relevant part will be
paid to the contractor within 14 days on which the employer shall have taken
possession.
section.
CLAUSE 17
Assignment by the
employer
17.1 The
employer shall not without the written consent of the contractor assign this
contract.
Assignment by the
contractor
17.2 The contractor
shall not without the written consent of the employer assign the contract.
Sub-letting
determination of employment of sub-contractor
17.3 the contractor not
without the written consent of the architect ( which consent shall not be
unreasonably withheld) sublet any portion or portions of the works which sub-letting
shall not relieve the contractor of his obligation(s) to the employer under
the contract.
CLAUSE
18
INJURY
TO PERSON AND INDEMNITY TO THE EMPLOYER.
The
contractor shall be liable for any loss, claim or proceedings to person in
respect of any injury or damage whatsoever to any property so far the work is
in respect of the work on site.
CLAUSE
19
INSURANCE
AGAINST INJURY TO PERSON’S LIFE OR PROPERTY
The
contractor must have an insurance policy bond as well as the client. So that
any injury, accident on the work as well as the property related will be
accurately taken care ofby the insurance.
CLAUSE
20A
INSURANCE
OF THE WORKS
In
the insurance of work, the general aspect of the work insurance is to be
insured by the work contactor, the employer and the insurer. It involves the
carrying out and maintenance of the joint policy, the single policy of
insurance approved by the employer and it failure by the contractor to insure,
the use of annual policy maintained by the contractor, the loss of damage to
the works insurance claims, contractors obligation, use of insurance monies.
After
the inspection required by an insurer in respect of a claim under the policy
referred to in the previous clauses has been completed, the contractor shall
replace or repair such work damage, material on site which have been lost or
damaged, remove and dispose of any debris and proceed with carrying out and
completion of the work. He (the contractor) shall not be entitled to any
payment in respect to the restoration, replacement or repair of such loss or
damage and (when required) the removal and disposal under certificate of the
architects issued at the period of interim certificates.
CLAUSE
20(B)
ERECTION
OF NEW BUILDINGS: - ALL RISK INSURANCEOF THE WORKS BY THE EMPLOYER
This
clause is all risk insurance of works by an employer, the employer is to
carryout and maintain a policy for all risk insurance to cover for full
reinstatement value of the works (plus the percentage, if any to cover
professional fees stated in the appendix) and shall subject to clause 16,
maintain such policy up to and including the date of issue of the certificate
of practical completion, and failure of the employer to ensure right of the
contractor, then the contractor may himself take out and maintain a policy
against any risk in respect of which a default
shall have occurred and a sum equivalent to the amount paid or payable
by him in respect of the premiums, therefore shall be added to the contract
sum.
CLAUSE
20(C)
INSURANCE
OF WORKS IN OR EXTENSIONS TO EXISTING STRUCTURES.
This
include the insurance of existing structures and content-in which the employer
is to take out and maintain a policy( the employer is to take out and maintain a policy for all risk
insurance in respect of the existing structures which shall include from the
relevant date, any relevant part to which clause 16 refers).
works in or extension
to existing structures- in which the employer is to take out and maintain joint
names policy for all risk insurance between him and the contractor to cover for
the full reinstatement value of the works plus the percentage, if any, to cover
professional fees stated in the appendix,
Failure of the employer
to insure rights of the contractor, the contractor may himself take out and
maintain a policy against any risk in respect of which the default shall have
occurred and for the purpose shall have such right of entry and inspection as
may be required to make a survey and inventory of the existing structure and of
the relevant contents.
And loss of damage to
works-applicable provisions, when there is any loss or damage affecting work
executed or to any part thereof or any material on site is occasioned by any
one or more of the risk covered by the policy referred to in the clause 20©.2
or clause 20©3, then after discovering the said loss or damage, the shall fore
with give notice in writing to the architect to the employer of the extent,
nature and location thereof.
CLAUSE21.
POSSESSION,
COMMENCEMENT, COMPLETION AND POSTPONEMENT
This
simply state that upon the appointment of the contractor when the site must
have been handed over to the contractor, a completion date is to be fixed in
other to mobilize the contractor to finish the work then or before then
irrespective of any extension of time that may occur as a result of
circumstances that could slow the work, and if at all the contractor fails to
complete the work after such extension, the
architect may issue an instruction in regard to the postponement of any
work to be executed under the provision of this contract.
CLAUSE22.
LIQUIDATED
AND ASCERTAINED DAMAGES FOR NON-COMPLETION
It
is said to arise when the contractor fails to complete a work by the date for
completion stated in the appendix or within any extended time , fixed under
clause 23 or clause 33.1.3 and the architect certifies in writing that in his
opinion the same ought reasonably so to have been completed, then the
contractor shall pay or allow to the employer a sum calculated at the rate
stated in the appendix as liquidated and ascertained damages for the period
during which the work shall so remain or have remained incomplete, and the
employer may deduct money from the money
that is to be paid to the contractor to carry out the contract.
CLAUSE
23
EXTENSION
OF TIME
That
at the extension of time the contractor is unable to finish the work, he shall
state in a written notice of the cause
of the delay to the architect and if the opinion of the architect completion of
the work is likely to be or has been delayed
beyond the date of completion stated in the appendix or beyond any
extended time previously fixed under either this clause or clause 33.1.3 after
considering the reasons for the delay, if the contractor is not responsible for
any of the cause of delay, an extension of time and additional money shall be
added to him where necessary and if he is he will pay for the delay and the
contract shall be retrieve from him.
CLAUSE
24
LOSS
AND EXPENSE CAUSED BY DISTURBANCE OF REGULAR PROGRESS OF THE WORK
That
if duringextension of time of the contract granted in pursuant to clause 23 and
if such extension of time is due to any of the reasons specified in clause
24.1.1 to 24.1.6 inclusive, any amount from time to time so ascertained in
clause 24.1 shall be added to the contract sum, and if an interim certificate
is issued after the date of ascertainment, such amount shall be added to the
amount which would otherwise be stated
as due in such certificate and the provision of such conditions are without
prejudice to any other right and remedies which
the contractor may possess.
CLAUSE
25
DETERMINATION
BY THE EMPLOYER
This
part of the clause is trying to explain the right of the employer. It simply
states that without any opinion formed beforehand (prejudice) to any other right or remedies which the
employer may possess, if the contractor shall default in any one or more of the
following sub-clause under clause 25.1, may be become bankrupt or practice
corruption during the contract, the employer shall take actions base on the
criminal code of the laws of the federal republic of Nigeria, then the employer
shall be entitle to determine forthwith this employment of the contractor under
this contract.
The
rights and the duties of the employer and the contractor is also included in
this clause which states that in the event of the employment of the contractor
being determined as aforesaid and so long it has not been reinstated and
continued, the architect shall instruct the quantity surveyor to prepare the
final account for settlement in accordance with clause 30.
CLAUSE
26
DETERMINATION
BY CONTRACTOR
This
particular clause is indicating the right of the contractor over his employer
if the employer defaults in his responsibility. The contractor in this clause
determines without prejudice to any other rights and remedies which he may
possess considering the possible conditions of which could arise from the
employer, then the contractor may thereupon by registered post or recorded
delivery to the employer and copied to the architect give 14 days’ notice of
his intention to determine his employment under this contract provided that such
notice shall not be given unreasonable or vexatious. Upon the expiration of the
said notice, the contractor shall proceed to determine the contract.
CLAUSE
27
NOMINATED
SUB-CONTRACTOR
In
nominating a sub-contractor, the opinion of both the employer and the
contractor is quite important. Then the following provisions of this condition
shall apply when prime cost sums are included in the contract bills or arise as
a result of architects instructions given in regard to the expenditure of the
provisional sums, in respect of persons to be nominated by the architect to
supply and fix materials or goods or to execute work based on certain
procedures. The architect shall be the
one to direct he contractor on how to pay the sub-contractor which is done due
to the contractors default.
The sub-contractor is
not in any way to be granted any extension of the period within which the
sub-contract work is to be completed in sections.
CLAUSE
28
NOMINATED
SUPPLIERS
The
nominated aim is to supply material and not to fix material on site. In
nominating a supplier, the architect instruction is considered very important;
it is giving in regard to the expenditure of provisional sums, in respect of
any materials or goods to be fixed by the contractor. In nominating a supplier,
considerations such as sums deemed to include 5%cash discount, definition of
the nominated supplier, treatments of defects in materials or goods supplied,
materials and goods to be supplied as directed by contractor, nominated
supplier to allow 5% cash discount to the contractor, materials and goods not
supplied after determination of the contract( the nominated supplier shall not
be obliged to make any delivery of materials or goods, except any which may
have been paid for in full less only the discount for cash after the
determination for any reasons of the
contractors employment under the contract.
And
that all payment by the contractor for materials or goods supplied by a
nominated supplier shall be in full and shall be paid within 30 days of the end
of the month during which delivery is made less only a discount for cash of 5%
if so paid.
CLAUSE
29
ARTISTS
AND TRADESMEN
The contractor shall
permit the execution of work not forming part of the contract by artists,
tradesmen or others engaged by the employer. And that every such person shall
for the purpose of clause 18 be deemed to be a person for whom the employer is
responsible and not to be a nominated sub-contractor.
CLAUSE
30
CERTIFICATE
AND PAYMENTS
This
states that at the period of interim certificate named in appendix, the
architect shall issue a certificate thereby stating the amount due to the
contractor from the employer, and the contractor shall be entitled to payment
thereof within the period for honouring certificates named in the appendix , an
if an employer fails to honour an architect certificate, within the period
stated in the appendix, the contractor notwithstanding his other rights and
remedies under this contract, shall be entitle to receive additional payments
stated in the appendix for the period during which the certified amount remains
unpaid .
CLAUSE
31
FLUCTUATION
The
fluctuation shall be entertained by the employer only in respect of approved
basic wages and emoluments and certain materials or certain sections of the
works listed in the appendix to the contract, the contract sum shall be deemed
to have been calculated in the manner se
out below and shall be subject to variation
in the event specified as the factor that could cause the fluctuation
such as : when the price contain in the contract bills are based on the rates
of wages and other emoluments and
expenses, if the said rates of wages and other emoluments and expenses which shall be increased or decreased after
the date of the tender, when the price contained in the contract bills are
based on the market prices of materials, and if during the progress of the
works the market prices of materials used in the works varies from the basic
prices thereof. Then the net difference in price thus arising shall be paid to
or allowed by the contractor.
CLAUSE
32
OUTBREAK
OF HOSTILITIES
During
the course of the execution of the contract, there is an outbreak of
hostilities which was either envisaged or not then, a notice of determination
to the contractor and the employer, which states that if during the occurrence
of this contract there shall be an outbreak of hostilities (whether war is
declared or not ) in which Nigeria shall
be involved on a scale involving the
general mobilization of the 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, provide that such a notice shall not be given because of
1.
Before the expiration of 28 days from
the date on which the order is given for general mobilization as aforesaid or
2.
After practical completion of the works
unless the works or any part thereof shall have sustained war damage as defined
in clause 33.4
CLAUSE
33
WAR
DAMAGE.
It
states that if there is an effect of war damage in the event of the works or
any part thereof or any unfixed material or goods intended for or delivered to and placed on or adjacent to
the works sustaining war damage then not withstanding anything expressed
elsewhere in this contract, the occurrence of such war damage is said to be
disregarded in computing any account payable to the contract under or by virtue
of this contract. And the architect may issue an instruction requiring the
contractor to remove or dispose of any debits and/or to execute such protective
works as shall be specified.
CLAUSE
34
ANTIQUITIES.
Antiquities
are any archaeological findings found on the site, it includes 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, it is said to
become the property of the employer, and upon the discovery of such an object
the contractor shall forthwith, do his best to endeavour that these objects are
not disturb and shall cease work if continuance of work would endanger the
object or impede its excavation or removal.
The contractor shall
equally take steps which may be necessary to preserve the objects in the exact
position and condition in which it was found and he shall immediately inform
the architect or the clerk of works of the discovery and precise location of
the object so that an instruction can be issue in regard to what should be done
concerning the object.
CLAUSE
35
ARBITRATION.
This
is the last part of the standard form of building contract in Nigeria of 1990
version and these deals with settlement of dispute which may arise between the
working teams during the construction of the contract. Provided always that in
case any dispute or difference shall arise between either the employer or the
architect on his behalf and the contractor, either during the progress or after
the completion or abandonment of the works as to the construction of this
contract or as to any matter or thing of whatsoever nature arising there under
or in connection therewithor the withholding by the architect of any
certificate to which the contractor may claim to be entitled or the measurement
and valuation mentioned in clause 30.5.1 or the rights and liabilities of the parties under clause 25,28,32 and
33.
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