General Conditions Part I Table of contents ARTICLE PAGE 1. TENDERING PROCEDURE 3 2. DEFINITIONS 3 3. INSPECTION OF THE SITE 4 4. PERFORMANCE BOND ( GUARANTEE DEPOSIT ) 4 5. CONTRACT PERIOD 5 6. HANDING OVER THE SITE 5 7. GOOD WORKMANSHIP AND MATERIALS 5 8. DOCUMENTS TO BE KEPT AT SITE 6 9. ERRORS IN SPECIFICATIONS AND DRAWINGS 6 10. PROGRAMME OF WORKS 6 11. WORKING FACILITIES 6 12. CONTRACTOR`S ENGINEER 6 13. LABOUR 7 14. ENGINEERING OFFICE 7 15. SITE SERVICES OF WATER AND ELECTRICITY 7 16. EMPLOYEES HOUSING AND INSURANCE 7 17. THIRD PARTY INSURANCE 7 18. INSURANCE OF WORK ON THE SITE 8
Transcript
General Conditions
Part I
Table of contents
ARTICLE PAGE
1. TENDERING PROCEDURE 3
2. DEFINITIONS 3
3. INSPECTION OF THE SITE 4
4. PERFORMANCE BOND ( GUARANTEE DEPOSIT ) 4
5. CONTRACT PERIOD 5
6. HANDING OVER THE SITE 5
7. GOOD WORKMANSHIP AND MATERIALS 5
8. DOCUMENTS TO BE KEPT AT SITE 6
9. ERRORS IN SPECIFICATIONS AND DRAWINGS 6
10. PROGRAMME OF WORKS 6
11. WORKING FACILITIES 6
12. CONTRACTOR`S ENGINEER 6
13. LABOUR 7
14. ENGINEERING OFFICE 7
15. SITE SERVICES OF WATER AND ELECTRICITY 7
16. EMPLOYEES HOUSING AND INSURANCE 7
17. THIRD PARTY INSURANCE 7
18. INSURANCE OF WORK ON THE SITE 8
19. PRESENTATION OF INSURANCE POLICIES TO THE
ADMINSTRATION 8
20. PROTECTION OF THE WORKS 8
21. KEEPING ORDER AT SITE WORKS 8
22. RIGHTS OF SUPERVISION AND INSPECTION , OFFERING
FACILITIES FOR OTHER CONTRACTORS 8
23. MATERIALS ON SITE 9
24. ARCHAEOLOGICAL DISCOVERIES 9
25. EXCAVATION WORKS 9
Table of contents ( Cont`d )
ARTICLE PAGE
26. EXPLOSIVE 9
27. THE ADMINSTRATION ENGINEER 10
28 . PROGRESS OF THE WORKS 10
29. CONTRACT AMENDMENT 11
30. ASSIGNMENT AND SUBCONTRACTING 11
31. BANKRUPTCY OF CONTRACTOR 11
32. DELAY FINE 12
33. CONTRACT TERMINATION 12
34. INVENTORY 13
35. APPLICATION TO TERMINATE CONTRACT BY THE CONTRACTOR 13
36. CONDITIONS OF PAYMENT 14
37. PRICES TO BE FIXED AND INCLUSIVE 15
38. SETTING OUT 15
39. QUANTITIES 16
40. CONTRACTOR OBLIGATIONS AFTER PAYMENT 16
41. CURRENCY 16
42. COMPLETION OF THE WORKS 16
43. PROVISIONAL ACCEPTANCE 16
44. MAINTENANCE PERIOD 17
45. FINAL ACCEPTANCE 17
46. THE ADMINSTRATION DUE MONEY 18
47. ISRAILI BOYCOTT 18
48. LAWS AND REGULATIONS 18
49. TAXES , CUSTOMS AND ANY OTHER EXPENSES- PATENT RIGHTS 19
50. LIBYAN LAW APPLICABLE 19
51. CONTRACT EXPENSES 19
52. LANGUAGE OF CORRESPONDENCE 19
53. APPENDIX TO GENERAL CONDITIONS OF CONTRACT 20
Article 1: TENDERING PROCEDURE
The Tender Deposit or Provisional Bank Letter of Guarantee shall comply with the conditions of
the Invitation to Bid and or the bid announcement.
Article 2: DEFINITIONS
In constructing these general conditions and the specifications, the following words will have
the meaning herein assigned to them:
a. The Administration: shall mean the Administration.
b.The Secretary of the People’s Committee: The Secretary of the People’s Committee of the
Administration.
c. The Administration Engineer: The Engineer who is assigned by the Administration to
supervise the work of the project in accordance with Article 27 of these conditions.
d.The Administration Engineer’s Representative: any representative appointed by the
Administration Engineer in accordance with Article 27 of these conditions.
e. Contractor: means the firm, company, joint venture or consortium with whom the
Administration is in contract and includes the Contractor’s personal representatives, successors
and assignees.
f. Contract: means the Conditions of Contract, Specification, Drawings, the Tender, the written
acceptance thereof and the Contract Agreement.
g.Specification: means the specification referred to in the Tender and any modification thereof
or addition thereto as may from time to time be furnished or approved in writing by the
Administration Engineer.
h.Drawings: means the drawings referred to in the Tender and any modification of such
drawings approved in writing by the Administration Engineer and such other drawings as may
from time to time be furnished or approved in writing by the Administration Engineer.
i. Contract Price: means the total sum to be paid for the construction completion and
maintenance of the Works in accordance with the contract.
j. Works: means the permanent Works and any temporary ,work’s constructed completed and
maintained according to the Contract.
k.Section: means a part of the Works separately identified in the appendix to the Form of
Tender
1. Site: means the lands and other places on under in or through which the works are to be
executed and other lands or places provided by the Administration for the purposes of the
Contract.
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Article 3: INSPECTION OF THE SITE
The Contractor shall be deemed to have inspected and examined the Site and its surroundings
and to have satisfied himself before submitting his Tender, as to:
a. the form and nature thereof, including the sub—surface conditions,
b. the hydrological and climatic conditions,
c. the extent and nature of work and materials necessary for the execution and completion of the
works and the remedying of any defects therein,
d. the means of access to the site and the accommodation he may require,
e. the availability of land transportation,
f. the availability of labour and rules of employment,
g. the Laws of Libya and local customs and traditions,
and, in general, shall be deemed to have obtained all necessary information, subject as above
mentioned, as to risks, contingencies and all other circumstances which may influence or affect
his Tender.
Article 4: PERFORMANCE BOND (GUARANTEE DEPOSIT)
For the purpose of due execution and proper performance of Contract and the recovery of all the
Administration rights, the Contractor shall within 30 (thirty) days from the date of receipt of the
letter of acceptance of his tender ,submit to the Administration a pecuniary guarantee deposit for
the mount stated in the Appendix of these conditions.. Acceptance of the tender shall not be
binding on the Administration until an acceptable pecuniary guarantee deposit has been received
from the Contractor.
The Guarantee shall be in the form of cash money, approved cheque or letter of guarantee issued
by a bank approved by the Administration. The Administration shall be entitled on its first
written demand to the immediate cash payment by the bank up to the full amount of the
guarantee notwithstanding any contestation by the Contractor and without recourse to legal
proceedings. It
Shall be valid during the Contract period and until the final acceptance of works according to
Article (45) of these conditions.
The cost of complying with the requirements of this article shall be borne by the Contractor.
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Article 5: CONTRACT PERIOD
The Contractor shall undertake to perform the Harks within the period specified in the Appendix
to
these conditions, such period shall commence from the date fixed for commencing the work in
accordance with Article (6), feasts and official holidays shall be deemed to be included within
this period.
If the Contractor finds that the works will not be completed within the specified period as a
result of a major force, he shall inform the Administration in writing and the latter shall, after
verifying the facts, prolong the Contract period by a duration proportional with the major force
impact upon the Contract period.
Article 6: HANDING OVER THE SITE
The Site shall be handed over to the Contractor within the period specified in the Appendix to
these conditions and in accordance with a process verbal issued between the Administration
Engineer or his representative and the Contractor or his representative, site conditions shall be
registered in the process verbal. If the Contractor or his representative shall fail to attend at the
date previously notified to him for handing over the Site, a process verbal shall be issued in that
respect and a copy shall be directed to the Contractor and it shall be deemed that the Site is
handed over to him at the said date.
Site handover may be implemented in stages complying with the Contractor’s approved
programme of work. On handover the Contractor shall proceed with the works with due
expedition and without delay.
Article 7 : GOOD WORKMANSHIP AND MATERIALS
The Contractor shall execute the Works accurately and properly in compliance with the
technical specifications, engineering drawings, and in accordance with the type of work and
physical conditions, he shall provide and use for this purpose materials, tools, equipment and
apparatus of the best quality and type. The Administration may ask the Contractor to submit
samples of materials and equipment for approval before use in Works. The Contractor shall, at
his own expense, repair or modify any part of the Works rejected by the Administration due to
faulty materials or bad manufacture or any other reason. If the Contractor fails to replace or
repair any defective Works, the Administration shall be entitled to employ and pay other persons
to carry out the same and all expenses consequent thereon or incidental thereto shall be
recoverable from the Contractor by the Administration or may be deducted by the
Administration from any monies due or which may become due to the Contractor.
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Article 8: DOCUMENTS TO BE KEPT AT SITE
The Administration shall provide the Contractor with two copies of the general conditions,
special conditions, technical specifications, engineering drawings and other plans and
documents required for completion of the Works. Further copies may be provided at the
Contractor’s expense. One complete set of all documents issued is to be kept at Site in good
condition and are to be available for use by the Administration Engineer. The Contractor shall
notify the Administration Engineer promptly in writing, of any contradictions, discrepancies or
errors in the documents and the Administration engineer shall give prompt written instructions
in that concern.
Article 9: ERRORS IN SPECIFICATION AND DRAWINGS
Any error or omission in any specification, design or drawing issued by the Administration to
the Contractor may be corrected by the Administration at any time. The Contractor shall himself
review and check the correctness of all specifications, designs and drawings delivered to him
and shall promptly notify the Administration in writing of any discrepancies. The Contractor
shall be solely responsible for all specifications, designs and drawings as if they had been
established by himself.
Article 10: PROGRAMME OF WORKS
The Contractor shall submit to the Administration Engineer a programme of works suitably
broken down into the various items of execution and location. The Contractor must also provide
a list of equipment which will be used in performance of the works and any temporary works.
The Contractor shall make any additions or modifications to the programme in accordance with
the requirements of the Administration Engineer.
Article 11: WORKING FACILITIES
The Contractor is entirely responsible for providing labour, technicians, assistants, materials,
equipment, transportation, water, electricity, mechanical devices and all other working
requirements at the site.
Article 12: CONTRACTOR’S ENGINEER
The Contractor shall employ a qualified Engineer who is experienced in the type of work
specified in the Contract.
The Engineer is to be available on Site during the assigned working hours and must be present
whenever works are being carried out. He shall be responsible for receiving the instructions of
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the Administration Engineer and ensuring that such instructions are fulfilled.
The Contractor shall provide all supervision necessary for the proper fulfillment of his
obligations under the Contract, supervisors, surveyors and technicians are to have suitable
experience in carrying out site duties.
The Contractor shall provide additional supervision and technical assistance on the request of
the Administration Engineer.
Article 13: LABOUR
The Contractor shall give priority to employing Libyan Labour. In the case of employing foreign
labour, the Contractor will be responsible for contracting with them, obtaining the necessary
visas, work permits and returning them to their countries whether at the end of the project or for
security reasons.
The Contractor shall be obliged to provide a register at site classifying all labour by name and
designation.
The Administration will give due assistance with the relevant authorities to facilitate the
procedures for employment of foreign labour.
Article 14: ENGINEERING OFFICE
As soon as possible after work commences and when instructed by the Administration Engineer
the Contractor is to construct the Engineers’ Office. The office is to have the necessary facilities
for the Engineer and his representatives and is to be suitably furnished. This accommodation is
to be provided at the Contractor’s expense.
Article 15: SITE SERVICES OF HATER AND ELECTRICITY
The Contractor shall be responsible for supplying all services to the site, ie. electricity, water
and sanitary facilities.
Article 16: EMPLOYEES’ HOUSING AND INSURANCE
The Contractor must arrange temporary accommodation for his workers and employees on the
site and insure them according to the Libyan Laws of social insurance and any other laws and
rulings either currently established or which may be established in the future.
Article 17: THIRD PARTY INSURANCE
The Contractor shall insure against death or injury which may occur to any person or loss of or
damage to any property arising out of the performance of the Works. The insurance shall be for
at least the amount given in the Appendix of these conditions. The Contractor shall take all
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necessary precautions and safety measures to avoid any injury or death to any of his employees
or other persons and to safeguard against any loss or damage to government or private
properties. He shall be directly responsible for any loss of life or injury actions arising out of
performance of the Works resulting from carelessness either by himself or by any of his agents,
representatives or employees and shall indemnify the Administration against all such actions.
Article 18: INSURANCE OF WORK ON THE SITE
The Contractor must insure the permanent and temporary Works and all equipment and
materials brought to site for their full replacement value, against all loss or damage, fire, robbery
or natural disasters. The insurance policy should cover Contractor’s all risks up to the
provisional acceptance of works in accordance with Article 43 of these conditions.
Article 19: PRESENTATION OF INSURANCE POLICIES TO THE
ADMINISTRATION
The Contractor shall submit the insurance policies covering the liabilities as stated in Articles
16, 17 and 18.
Should the Contractor fail to produce the policies or pay the necessary premiums, the
Administration shall be entitled to carry out the Contractor’s insurance obligations and deduct
any expenses from the Contractor’s account.
The Administration may withhold payment from the Contractor until he produces the necessary
insurance policies.
Article 20: PROTECTION OF THE WORKS
The Contractor shall be liable for maintaining, protecting and guarding the entire works from
weather conditions, negligence of his employees, fire, theft and any other damage. In case of
any damage or loss from any cause whatsoever, the Contractor shall at his own cost repair and
make good the Works to their original condition.
Article 21: KEEPING ORDER AT SITE WORKS
The Contractor shall be responsible for keeping order at the site. He shall report to the police
when necessary, keep the relevant authorities notified about any disorders and obey any
instructions issued to him from police or any concerned authority.
Article 22: RIGHTS OF SUPERVISION AND INSPECTION, OFFERING
FACILITIES FOR OTHER CONTRACTORS
The Contractor, his employees, foremen, agents and laborers must offer facilities for the
Administration Engineer or any delegated representatives to have at all times free access to any
part of the Harks whether for the purpose of inspection, testing or otherwise and should keep at
the Site at all times a special register for the Administration Engineer’s remarks and instructions.
The Contractor and his employees shall in accordance with the requirements of the
Administration Engineer afford all reasonable facilities for any other Contractors who may be
employed on or near the Site.
Article 23: MATERIALS ON SITE
All materials, parts, machinery and equipment for use in the works and all temporary works and
equipment brought to the site by the Contractor shall not be removed from site until provisional
acceptance of the Harks in accordance with Article 43, or as may have been previously approved
in writing by the Administration Engineer.
Any disposition of goods before provisional acceptance or without prior written approval will be
deemed as a breach of Contract.
All the above items shall be under the care and protection of the Contractor and the Contractor
shall indemnify the Administration against damage or loss for any reason whatsoever.
Storage facilities are to be approved by the Administration Engineer and particular care should
be taken to distance storage well away from explosive or inflammable materials.
Article 24: ARCHAEOLOGICAL DISCOVERIES
The Contractor should inform the Administration Engineer and the Archaeological Department
about any discovery of archaeological remains or any other valuable items during the course of
the Works. He shall provide all required precautions and remedial measures to avoid any
damage to such antiquities.
Article 25: EXCAVATION WORKS
If excavation works at Site uncover any cables, water pipes, drainage or other like services, the
Contractor must immediately stop excavation and notify the Administration Engineer and
authorities concerned, and shall comply with the instructions and directions given to him in this
respect. The Contractor shall also repair and make good any damage which he may cause to
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such public services at his own expense.
Article 26: EXPLOSIVES
The Contractor shall not use explosive materials, without written permission from the relevant
authorities and the Administration Engineer and in compliance with any stipulations and
conditions imposed by them.
Article 27: THE ADMINISTRATION’S ENGINEER
The Administration will notify the Contractor in writing prior to the commencement of the
works about the name of its The Administration Engineer and representative on site.
The Contractor and his employees must respect the Administration Engineer s orders and
notices.
The Administration Engineer shall at all times have free access to all parts of the works, whether
for the purpose of inspection, testing, or otherwise. Comments made by the Administration
Engineer shall be recorded in the Site register or be notified to the Contractor in writing. The
Administration Engineer shall be entitled to reject materials or works which do not comply with
Contract requirements. He may require the Contractor to make any test or examination, or to
analyze any materials and examine their strength and to submit photographs for the different
stages of work, all such actions shall be at the Contractor’s expense.
The Administration Engineer shall be at liberty to object to and require the Contractor to
remove, forthwith from the works, any person employed by the Contractor in or about the
execution or
maintenance of works, who in the opinion of the Administration Engineer misconducts himself,
or is incompetent or negligent in the proper performance of his duties, or tries to undermine the
Administration, or disobeys Contract requirements.
The, Administration Engineer shall be entitled to assign one or more representatives at site to act
on his behalf and may delegate to the representative(s) any of his powers and authorities, he
shall notify the Contractor in writing of all such delegation. Such action shall not prejudice the
power of the Administration Engineer to disapprove or require the modification of improperly
executed works.
If the Contractor shall be dissatisfied by reason of any instruction or any order of the
Administration Engineer’s Representative, he shall be enti1ed to refer the matter to the
Administration Engineer who shall thereupon confirm, reverse or vary such instruction.
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Article 28: PROGRESS OF THE WORKS
The Contractor shall complete the whole of the Works within the time stated in the Appendix to
these conditions. He shall in compliance with the Law and relevant decrees be entitled to carry
out the work on a shift system.
If the rate of progress of the Works is at any time too slow to ensure completion by the due date,
the Administration Engineer shall so notify the Contractor and the Contractor shall thereupon
take any necessary steps, including increasing the resources of Labor and equipment, extending
working hours and any other measures necessary to complete the Works by the prescribed time.
Such actions shall not entitle the Contractor to any additional payment.
Article 29: CONTRACT AMENDMENT
Within the Contract period, the Administration shall, without right to compensation by the
Contractor, be entitled to order any amendment to the Contract which in the opinion of the
Administration is desirable for the satisfactory completion and functioning of the Works.
The Contractor shall not be entitled to make any amendment to the Contract without the
Administration’s written approval.
The rates for carrying out these amendments will be those stated in the Contract, or, in the case
where no appropriate rates or items exist, at rates to be agreed by the Administration.
If the amendments lead to delay in the Works, the Contractor shall apply for an extension to the
Contract period, relative to the time taken to carry out the amendments and the shall give this
application due consideration and, if so agreed, extend the Contract period accordingly.
Article 30: ASSIGNMENT AND SUB—CONTRACTING
The Contractor shall not be entitled to assign the Contract or any part thereof, or any benefit or
interest therein or thereunder without the prior written consent of the Administration.
The Contractor shall not submit the whole or any part of the works subject to this Contract
without the prior written consent of the Administration.
In either case there must be an agreement between the Contractor and the third party endorsed
according to Law holding the Contractor and the third party responsible for the execution of the
Contract. Consent of the Administration shall not relieve the Contractor from any liability or
obligation under the Contract.
If the Contractor shall assign some or all of his due payments he shall not be entitled to hold,
cancel or obtain any part of the assigned payments without the prior written approval of the third
party.
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Article 31: BANKRUPTCY OF THE CONTRACTOR -
In the event of the Contractor’s bankruptcy, the Administration can either terminate the
Contract or allow any legally authorized representation of the Company to continue the work. In
such case the assigned representative must be acceptable to the Administration and approved
according to law. Alternatively the Administration may take over the performance of the works
with their own forces or by contract with others. For the purpose of completing the work the
Administration will take possession of and make use of all construction plant materials and
equipment owned, used or controlled by the Contractor and devoted to the performance of the
Contract. All costs incurred by the Administration in completing the work will be deducted from
the sums still due to the contractor. If such costs plus all payments previously made to the
Contractor shall exceed the Contract price, then the Administration may call on the performance
guarantee for recovery of the ba1ance, The determination of the Administration to invoke their
rights as provided here in will be final and conclusive.
Article 32: DELAY FINE
If the Contractor delays completion of the works or any part thereof, the delay fine as stated in
the Appendix to these conditions will be applied.
The fine will be promptly due upon delay even though no harm may have arisen and may be
assessed by the Administration without any notice, legal process or any other action.
Application of the fine shall not prejudice the right of the Administration to claim for
compensation of damages or losses for which the Contractor is responsible.
This fine will be deducted from the cash deposit, guarantee or monies due to the Contractor
from the Administration or any governmental authorities or public organizations. Such
deduction shall not relieve the Contractor from his liabilities under the Contract and for
continuation of the works.
If the delay is outside the responsibility of the Contractor the time for completion can be
extended by written authorization of the Administration.
Article 33: CONTRACT TERMINATION
The Administration can terminate the Contract, confiscate the deposit and apply a delay fine
together with a sum for compensation due to resultant damages if any of the following occurs:—
1. Delay in commencement of the Contract by the Contractor for no apparent reason.
2. Ceasing of Contract for a period longer than 15 days duration without the Administration
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consent.
3. Withdrawal from the site by the Contractor.
4. Delay in the completion of the work without reason.
5. Dishonesty by the Contractor or anyone of his employees in fulfilling the work requirements.
6. Bribery by the Contractor or any of his employees either directly or indirectly towards the
Administration employees.
7. Entering into liquidation as being a corporation, other than a voluntary liquidation for the
purpose of amalgamation or re-construction.
8. Bankruptcy by the Contractor or entering into compromise with his creditors.
9. Failure to fulfill any item of the Contract within 15 days from the Administration Engineer’s
official request.
The termination of the Contract and confiscation of the deposit shall be by a special judgment
from the Administration.
The Contractor will be notified of this resolution without any prior judicial warning or recourse
to law or any legal proceedings.
The Administration can also retain materials in temporary works together with the project
materials and equipment. These materials can be used for completing the works by the
Administration, or alternatively, the temporary works, materials and equipment, may be sold by
the Administration. Materials and equipment may be returned to the Contractor on receipt of a
letter of guarantee from the Contractor to the Administration.
Article 34: INVENTORY
Referring to(Article 33), the Administration will notify the Contractor of a date for the
commencement of an inventory. The inventory will cover the executed works together with the
equipment and materials at the Site. The inventory will commence within 15 days of the
termination date. The Administration shall, by registered letter, give the Contractor 7 days’
notice of the date fixed for the inventory, the Contractor shall attend and sign the process
verbal.[
Should the Contractor or his representative fail to attend the inventory proceedings, then the
inventory shall be carried out in his absence and will be duly recorded and sent to him by
registered mail. If no reply has been received from the Contractor within 7 days of the registered
date of his receipt of the inventory, then the Contractor shall be deemed to be in agreement with
the inventory.[
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This article shall also be applied in the case of Contract termination by the power of law.
Article 35: APPLICATION TO TERMINATE CONTRACT BY THE CONTRACTOR
If the Contractor considers that the Administration has committed a fundamental breach of
Contract he shall be entitled to take legal action to have the Contract terminated.
Unless and until a court judgment is received terminating the contract, the contractor shall
proceed with the works with all due diligence and sha1l respect the instructions and decisions of
the Administration.
Article 36: CONDITIONS OF PAYMENT
A. The Administration will offer the contractor a mobilization payment. This payment will be
made after handover of the site and receipt by the Administration of an application by the
contractor. The payment conditions are specified in the appendix to the contract, the contractor
shall present a letter of guarantee to the full value of the payment. This letter of guarantee should
be issued by a bank approved by the Administration and will be presented prior to the issuing of
payment. The letter of guarantee shall be valid for the duration of the works or until repayment
of the advance whichever is the later and the amount outstanding shall be payable to the
Administration on demand notwithstanding any contestation by the contractor and without
recourse to legal action. The mobilization payment shall be deducted from the monthly
payments due to the contractor in the same ratio as the mobilization payment is to the total
contract price. The value of the guarantee may be reduced by the amount of the recovered
instatements.
B. The Administration Engineer, together with the Contractor’s representative, will prepare an
interim valuation at the end of each month indicating the cumulative work carried out to
the end of the particular month in question.
The interim valuation will be approved by the Administration and, subject to the minimum
value stated in the Appendix to these conditions, 95% of the certified value will be paid
within 30 days from the date of receipt of the correctly submitted valuation. The
Administration shall not be liable for any delay in payment resulting from errors or
omissions in the submitted valuation.
The Administration shall, according to its absolute discretion and on the written request of
the contractor, pay the remaining 5% deducted from the above mentioned payment to the
contractor against a letter of guarantee issued from a bank approved by the Administration
which is to be valid until the end of contract period and is to be payable in cash and
promptly upon written demand from the Administration notwithstanding any contestation
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by the contractor and without recourse to legal action.
C. The Administration will grant the contractor payment against the invoice value of materials
and equipment delivered safely to site in advance of their being incorporated into the
permanent works. The advances so made will be recovered by deducting the amount paid
from the total sums which become due when the items are installed in the permanent
works.
The total value of any payments made for materials and equipment delivered to Site shall
be recovered before completion of the works.
Article 37: PRICES TO BE FIXED AND INCLUSIVE
The price which has been fixed and accepted by the Contractor and agreed to by the
Administration shall be fully inclusive of all costs, expenses, liabilities and risks of any
description which may be incurred in respect of each and every item and for completing the
entire works and handing over to the Administration in accordance with Article 43 and
maintaining the works during the period of maintenance in accordance with Article 44.
The contractor shall not be entitled to any increase of the Contract price for any reason,
including but not limited to:-
— discrepancies in his tender
— increase of living expenses
— increase of prices
— raise in the minimum level of wages payable by law
— modification in taxes or fees
— imposition of new taxes or fees
— fluctuation in exchange rates
In the event that any change in the laws or regulations of Libya, which become effective after
the date of contract, have a serious inflationary effect on contract prices, then amendments to the
contract prices may be negotiated between the Administration and the contractor.
Article 38: SETTING OUT
The contractor shall be responsible for the true and proper setting-out of the works and for the
correctness of the position levels dimensions and alignment of all parts of the works and for the
provision of all necessary instruments appliances and labour in connection therewith. If at any
time during the progress of the works any error shall appear or arise in the position levels
dimensions or alignment of any part of the works the contractor on being required so to do by
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the Administration Engineer shall at his own cost rectify such error to the satisfaction of the
Administration Engineer. The checking of any setting-out or of any line or level by the
Administration Engineer or the Administration Engineer’s representative shall not in any way
relieve the contractor of his responsibility for the correctness thereof and the contractor shall
carefully protect and preserve all benchmarks sight rails pegs and other things used in setting-
out the works.
Article 39: QUANTITIES
Any quantities stated in the contract are included purely for the assessment of monthly progress
payments and for the valuation of amendments issued in accordance with Article 29
Article 40: CONTRACTOR OBLIGATIONS AFTER PAYMENT
Interim payment for executed works shall in no way be taken as a right to final payment or that
the works executed have been accepted by the Administration. The contractor shall remain
responsible for all executed works until final acceptance in accordance with article 45. Failure of
the Administration to enforce compliance with any of the documents forming the contract shall
not be considered as a waiver thereof and shall not relieve the contractor of any of his
obligations.
Article 41: CURRENCY
Payments will be in Libyan diners, however, the Administration will facilitate the necessary
exchange into foreign currency for the importation of materials and equipment and other items
which are considered necessary for execution of the contract.
Article 42: COMPLETION OF THE WORKS
Immediately upon completion of the works the contractor shall notify the Administration
engineer, in writing, requesting a date for inspection and provisional acceptance of the works. At
this time the contractor should clean and clear the site, if the contractor fails to do this within 10
days of the notification, then the Administration can carry out the work at the contractor’s
expense.
Without notice from the contractor and if in the opinion of the Administration Engineer the
works are completed, then the Administration engineer may notify the contractor of a date fixed
for inspection and provisional acceptance of the works in accordance with article 43.
Article 43: PROVISIONAL ACCEPTANCE
The Administration Engineer, within 2 weeks of receiving the contractor’s notice of completion,
will notify the contractor of the date for inspection and provisional acceptance. A written report
detailing the findings of the inspection shall be prepared and signed by both the Administration
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Engineer and the contractor or their representatives, copy of the report shall be forwarded to the
contractor. If the contractor fails to attend on the specified date, then the inspection shall be
carried out in his absence and such action shall be recorded in the report and a copy shall be
directed to him. If the works are found to be satisfactory by the Administration, then the date of
notification to the Administration Engineer shall be considered as the date of completion of the
works and beginning of the maintenance period.
If the works are found to be unsatisfactory this shall be recorded in the report and provisional
acceptance will be postponed until remedial action has been taken by the contractor, on
completion of which a new date will be set for inspection and acceptance. The maintenance
period shall not commence until provisional acceptance, in writing, by the Administration
engineer.
If the contract provides for the works to be completed in sections, then for each section there
will be a different date for the provisional acceptance and maintenance period.
Within two months of provisional acceptance the Administration will pay the contractor any
sums contractually outstanding.
If on provisional acceptance of the whole of the works, the total value of work is less than the
contract price, then the contractor may proportionally reduce the value of the performance bond.
Article 44: MAINTENANCE PERIOD
The contractor shall guarantee the good performance of the contract works for the period
specified in the Appendix of these conditions, commencing at the date of provisional
acceptance. If during this period any defect appears, the Administration will notify the
contractor, who within 15 days shall carry out the necessary repairs. Otherwise the
Administration will carry out the repairs under their direct responsibility and deduct all expenses
from any sums outstanding to the contractor or from the performance guarantee, this will be
done without warning notification, recourse to law or any other proceedings.
The guarantee stated in this article shall not limit the guarantee stated in the civil law.
Article 45: FINAL ACCEPTANCE
The contractor shall notify the Administration Engineer, prior to the expiry of the maintenance
period, to determine a date for the inspection and final acceptance of the Works. This date shall
be set within two weeks from the date of notifying the Administration Engineer by the
Contractor. Inspection shall be carried out at the date fixed in the presence of the Administration
Engineer, the Contractor or their representatives. A written report detailing the findings of the
inspection shall be prepared and signed by all attendants and a copy of the report will be
forwarded to the Contractor.
If the Contractor or his representative fails to attend the inspection at the due date, it shall be
carried out in his absence and such action shall be recorded in the report, a copy of the report
shall be forwarded to the Contractor and the Administration shall be entitled to independently
examine the performance of works.
Final acceptance shall take place if the inspection reveals that the Contractor has fulfilled his
obligations under the Contract otherwise it will be postponed until the Administration Engineer
is satisfied that the Contractor has completely fulfilled his obligations under the Contract and the
maintenance period will be extended accordingly.
Within 10 days of the date of the inspection report the Contractor shall carry out any repairs and
remedy any faults listed in the report. Otherwise the Administration will carry out the repairs
and remedy any faults under their direct responsibility and deduct all expenses from any sums
outstanding to the Contractor or from the performance guarantee, this will be done without
warning notification, recourse to law or any other proceedings.
The maintenance period will end on final acceptance of the Works, in writing by the
Administration Engineer.
The Administration shall settle the final account within a month from the date of final
acceptance, release all due payments to the Contractor according to the Contract conditions and
return the performance bond or cash deposit.
Article 46: The Administration Due Money
The Administration shall have the right to deduct all outstanding monies, fines, compensations,
expenses, etc. from the Contractor’s account or from the performance guarantee or from any
other account which the Contractor has had with any other Government Departments.
Article 47: ISRAELI BOYCOTT
The Contractor shall not import any goods produced or manufactured in Israel or from any
company included in the Arab Boycott list and he will be held liable for any contravention of the
boycott rulings.
Article 48: LAWS AND REGULATIONS
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The Contractor shall respect and obey the valid Laws and Regulations of Libya, and he shall
obtain all necessary licenses and permissions required according to these Laws and Regulations.
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Article 49: TAXES. CUSTOMS AND ANY OTHER EXPENSES — PATENT
RIGHTS
The Contractor shall pay all taxes, fees and levies related to the contract execution in accordance
with Libyan Laws and Regulations. Customs duties shall be paid and no exemption will be
granted from the Laws in respect of importation of materials and equipment to be used in the
Works.
The Contractor shall save harmless and indemnify the Administration from and against all
claims and proceedings for or on account of infringement of any patent rights design trade-mark
or name or other protected rights in respect of any constructional plant, equipment or material
used for or in connection with the Works and from and against all claims, demands,
proceedings, damages, costs, charges and expenses whatsoever in respect thereof or in relation
thereto.
Article 50: LIBYAN LAW APPLICABLE
The Contract shall be construed as a Contract entered into and to be wholly performed in Libya,
the respective rights and liabilities of the parties shall be determined in accordance with Libyan
Law. Any dispute which may arise between the parties shall be adjudicated in the Libyan courts,
Article 51: CONTRACT EXPENSES
The Contractor shall bear all expenses in registration of the Contract and, within one week of
receiving the documents from the Administration, shall return the original copy of the Contract
to the Administration duly registered and stamped.
Article 52: LANGUAGE OF CORRESPONDENCE
The Arabic language shall be the official language to be used in all correspondence between the
Administration and the Contractor. A copy in foreign language may be attached. The Arabic
context shall prevail in the case of contradictions or errors between the Arabic and foreign
language.
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APPENDIX TO GENERAL CONDITIONS OF CONTRACT
1 — Article 1: Amount of Performance Guarantee — 2 % of the Contract Price.
2 — Article 2: A. Date of handing over the site — 60 of signing the Contract. work is to
commence the day after the mobilization period.
B. Work is to commence the day after expiration of the mobilization
period.
3 — Article 3: Date of submitting work program-30 days from the date fixed to
commence the works..
4 — Article 4: Amount of third party insurance —against any one accident.
5 — Article 5: Maximum addition to Contract — 15% of the Contract price.
6 — Article 6: A .Amount of delay fine — 0.1% (per day) of the value of the works
delayed if does not prevent the use of executed works and an amount of
delay fine — 0.2 % (per day) of the value of the works delayed if prevent
the use of executed works and up to a maximum of 5 % of the total
value of the Contract.
B. Bonus for execution of works in a shorter period than specified — nil.
7 — Article 7: A. Amount of mobilization payment — 15% of the Contract price
B. Amount of payment for materials and equipment delivered to Site — 75%
