The-Parties-to-the-Contract

Unit1ThePartiestotheContractTheFIDICConditionsofContractarebasedontheassumptionthattheEmployer,thefirstparty,whohasdecidedtohavecertainworkscarriedoutfortheimplementationofaproject,andissponsoringtheWorks,hasdecidedtoselectasuitablyqualifiedContractor,thesecondparty,toexecutetheWorks.ItisalsoassumedthattheselectionoftheContractorwillhavebeenmadethroughcompetitivetenderingbasedontenderdocumentspreparedfortheprojectbyaConsultingEngineer.Thisprocesshasbeendealtwithintheprecedingsection.TheFIDICConditionsofContractcannotapplywithoutanEngineerbeingappointedbytheEmployertoadministertheContract.UsuallythiswouldbetheConsultingEngineerwhohasdesignedtheprojectandpreparedthetenderdocuments.TheEngineerisnotapartytotheContract,butheplaysanimportantroleinthedevelopmentprocessoftheWorks.ThedutiesthattheEngineerhastoperformaredefinedundertheContractandhemusthavethenecessarydelegatedauthorityfromtheEmployerifheistobeabletoperformthem.ThedelegationofthisauthorityisusuallytobefoundintheAgreementbetweentheEmployerandtheConsultingEngineer.TheAgreementwillstipulateastheprimarydutyoftheEngineerthathecarefullyobservestherequirementsoftheEmployerintherealizationoftheproject.Itisimportanttonote,however,thattheConditionsofContractbetweentheEmployerandtheContractorstipulatethatwhere,undertheContract,anyoftheEngineer'sdutiesarediscretionary,theEngineershallactfairlybetweentheEmployerandtheContractorandapplytheContractinanunbiasedmanner.TheConditionsarebaseduponthisfundamentalprincipleandthisrequirementapplieseveniftheEngineerisamemberoftheEmployer'sstaff.TheContractorwill,ofcourse,havetoassesswhetherornothehasconfidenceintheabilityofanin-houseEngineertotakeindependentdecisions.TheEmployerAsstatedinthesectiondealingwiththetenderingprocess,theEmployernotifiesthesuccessfultendererthathehasbeenawardedtheContractbyissuingaLetterofAcceptancewhichrecordsanychangestotheTenderdocumentsassubmittedbytheContractor,resultingfrom.agreementbetweentheEmployerandtheContractor,andtheContractPrice.TheEmployerconsentsto,ordeclines,requestsbytheContractortoassignanyportionoftheWorks,preparestheContractAgreement(ifany)forexecutionbybothparties,approvesthePerformanceSecurityandtheinsurersaswellasthetermsoftheinsurancepoliciessubmittedbytheContractor.TheEmployerwillwishtoensurethatthecontractworksinsuranceisinaccordancewiththelawsandregulationsofthecountryinwhichtheWorksaretobeexecutedandthatthepolicyadequatelycoverstheEmployer'sRisksandthedeductiblelimitsareacceptable.ProvideditisacceptabletotheEmployertheContractorwillnormallyusehiscustomarysourcesfortheprovisionofsecuritiesandinsurance.TheEmployermakestheadvancepayment(ifany)againstasuitableguaranteefromtheContractorandauthorisestheContractortomoveontotheSite.DuringtheperiodoftheContracttheEmployermakespaymentstotheContractorascertifiedbytheEngineertobedueundertheContract.TheEmployertakesoverSectionsoftheWorksastheyreachsubstantialcompletion,ifthisisrequiredundertheContract,andultimatelytakesoverthewholeoftheWorksfollowingtheissueofCertificatesbytheEngineer.IntheeventoftheContractorbecomingliableforliquidateddamages,theEmployermaydeductanamountinaccordancewiththeConditionsofContract.TheEmployermayauthoriseworktobecompletedbyothersiftheContractorisindefault.TheEmployercanterminatetheContractintheeventoftheContractorfailingtoperformorincertainothercircumstancesdefinedin,andsubjecttothelawgoverningtotheContract.TheEmployer,ifhedefaults,canalsobesubjecttocancellationoftheContractbytheContractorortosuspensionofworkbytheContractor.TheEmployerandtheEngineershouldmaintainsuchcontactwitheachotheraswillfacilitatesmoothandunhinderedprogressoftheWorks.TheEmployershouldrespond,withoutdelay,onallmattersforwhichtheEngineerisrequiredbytheContracttoconsulttheEmployerbeforeissuinganinstruction,determininganamounttobeaddedtoordeductedfromtheContractPriceorgrantinganextensionoftime.TheContractorTheobligationoftheContractoristoexecuteandcompletetheWorks.forwhichhehassubmittedhisTender.withinthetimespecifiedintheContract.InadditionhehasanobligationtoremedyanydefectswhichappearduringtheDefectsLiabilityPeriod.AssoonasisreasonablypossibleafterreceivingnotificationfromtheEngineer,theContractorshallsubmitthesecurities,guaranteesandinsurancepoliciesrequiredbytheContractandshallcommencetheWorks.Hepreparestheconstructionprogramme,providesallnecessarymaterials.Contractor'sEquipment,TemporaryWorks,management,superintendenceandlabourandselectsthemethodofcarryingouttheWorks.TheContractorisnotresponsibleforthedesignandspecificationofthePermanentWorksunlessexpresslyprovidedforintheContractnorforanyTemporaryWorksnotdesignedbyhim.TheContractorreceivesandcomplieswithinstructionsfromtheEngineeractingonbehalfoftheEmployerandisresponsibleforthecareoftheWorksthroughouttheconstructionperioduntiltheWorksareofficiallytakenoverbytheEmployeroraredeemedtobetakenoverbytheEmployer.TheContractorisresponsibleforhisownstaffandworkforceandfortakingoutsocialandotherinsurancesinrespectofhispersonnel,Hemustcomplywithallapplicablelaws;by-lawsandregulationsandensur