General COnditions - Part II

Makarim Riyadh Hotel Expansion Project
Design and Built Services

PART (II a) GENERAL CONDITON S OF CONTRACT
TABLE OF CONTENTS
SECTION 1 DEFINITIONS AND INTERPRETATIONS
CLAUSE NO. 1 DEFINITIONS
SECTION 2 - ENGINEER AND ENGINEERS REPRESENTATIVE
CLAUSE N O. 2 - ENGINEER DUTIES, POWERS AND AUTHORITIES
SECTION 3 - ASSIGNMENT AND SUBLETTING
CLAUSE NO. 3 - ASSIGNMENT

CLAUSE NO. 4- SUBLETTING
SECTION 4 - CONTRACT DOCUMENTS

CLAUSE NO. 5 - THE SCOPE OF THE CONTRACT
CLAUSE NO. 6 - THE LANGUAGE OF THE CONTRACT
CLAUSE NO. 7 - SUBSEQUENT LEGISLATION
CLAUSE NO. 8 - DOCUMENTS MUTUALLY EXPLANATORY
CLAUSE NO. 9 - CUSTODY OF DRAWINGS
CLAUSE NO. 10 - FURTHER DRAWINGS AND INSTRUMENTS `
SECTION 5 - GENERAL OBLIGATIONS

CLAUSE NO. 11 - CONTRACTORS GENERAL RESPONSIBILITIES
CLAUSE NO. 12 - CONTRACT AGREEMENT
CLAUSE NO. 13 - PERFORMANCE GUARANTEE
CLAUSE NO. 14 - INSPECTION OF SITE
CLAUSE NO. 15 - SUFFICIENCY OF TENDER
CLAUSE NO. 16 - WORK TO BE EXECUTED TO THE SATISFACTION OF ENGINEER
CLAUSE NO. 17 - PROGRAMME TO BE FURNISHED
CLAUSE NO. 18 - CONTRACTORS SUPERINTENDENCE
CLAUSE N O. 19 - CONTRACTORS EMPLOYEES
CLAUSE NO. 20 - SETTING-OUT
CLAUSE NO. 21- BOREHOLES AND EXPLORATION EXCAVATION
CLAUSE NO. 22 - WATCHING AND LIGHTING
CLAUSE N O. 23 - CARE OF WO RK AND EXPECTED RISKS
CLAUSE NO. 24 - INSURANCE OF WORKS, CONSTRUCTIONAL PLANT
CLAUSE NO. 25 - DAMAGE T0 PERSONS AND PROPERTY
CLAUSE NO. 26 - THIRD PARTY INSURANCE
CLAUSE NO. 27- INSURANCE AGAINST ACCIDENT OR INJURY TO WORKM EN
CLAUSE NO. 28 - REMEDY ON CONTRACTORS FAILURE TO INSURE
CLAUSE NO. 29 - RENEWAL OF EXPIRED INSURANCE POLICIES
CLAUSE NO. 30 - GIVING OF NOTICES AND PAYMENT OF FEES
'CLAUSE NO. 31- ARTICLES OF VALUE, ANTIQUITY
CLAUSE NO. 32 - PATENT RIGHTS AND ROYALTIES
CLAUSE NO. 33 - INTERFEREN CE WITH TRAFFIC AND ADJOININ G PROPERTIES
Makarim Riyadh Hotel Expansion Project Design & Built 1/46 August 2016
CLAUSE NO. 34 - EXTRAORDINARY TRAFFIC
CLAUSE NO. 35 - OPPORTUNITIES FOR OTHER CONTRACTORS
CLAUSE NO. 36 - CONTRACTOR TO KEEP SITE CLEAR
CLAUSE NO. 37 - INSUFFICIENT TOOLS, PLANT AND EQUIPMENT
SECTION 6 - LABOR
CLAUSE NO. 38 - LABOR
CLAUSE NO. 39- RETURNS OF LABOR AND PLANT
SECTION 7 - MATERIALS AND WORKMANSHIP

CLAUSE NO. 40 - QUALITY OF MATERIALS AND WORKMANSHIP AND TESTS
CLAUSE NO. 41- INSPECTION OF OPERATIONS
CLAUSE NO. 42 - EXAMINATION OF WORK
CLAUSE NO. 43 - REMOVAL OF IMPROPER WORKS AND MATERIALS
CLAUSE NO. 44 - SUSPENSION OF WORK
SECTION 8 - COMMENCEMENT TIME AND DELAYS
CLAUSE NO. 45 - COMMENCEMENT OF WORKS

CLAUSE NO. 46- POSSESSION OF SITE
CLAUSE NO. 47 - TIME FOR COMPLETION
CLAUSE NO. 48 - EXTENSION OF TIME FOR COMPLETION
CLAUSE NO. 49 - NO NIGHTS OR DAY OF REST OR OFFICIAL HOLIDAYS WORK.
CLAUSE NO. 50- RATE OF PROGRESS OF WORK
CLAUSE NO. 51 - LIQUIDATED DAMAGES FOR DELAY
CLAUSE NO. 52 - SUPERVISION COST DURING THE DELAY
SECTION 9 - MAINTENANCE AND DEFECTS

CLAUSE NO. 53 - MAINTENANCE PERIOD
CLAUSE NO. 54- CONTRACTOR TO SEARCH FOR THE CAUSE OF ANY DEFECTS
SECTION 10 - ALTERATIONS, ADDITIONS AND OMISSIONS

CLAUSE NO. 55 - VARIATION IN THE FORM OF ALTERATIONS, ADDITIONS AND
OMISSIONS
CLAUSE NO. 56- VALUATION OF VARIATIONS
SECTION 11 - PLANT, TEMPORARY WORKS AND MATERIALS

CLAUSE NO. 57 - PLANT, TEMPORARY WORKS AND MATERIALS
CLAUSE NO. 58 - APPROVAL OF MATERIALS ETC., NOT IMPLIED
CLAUSE NO. 59 - CONTRACTORS LIABILITY FOR BORROW PITS
SECTION 12 - MEASUREMENT
CLAUSE NO. 60 - QUANTITIES
CLAUSE NO. 61 - WORKS TO BE MEASURED
CLAUSE NO. 62 - METHOD OF MEASU REMENT
SECTION 13 - PAYMENTS AND CERTIFICATES

CLAUSE NO. 63 - METHOD OF PAYMENT
CLAUSE NO. 64 - APPROVAL ONLY BY FINAL HANDOVER CERTIFICATE
CLAUSE NO. 65 - THE INITIAL HANDOVER PROCESS
CLAUSE NO. 66 - FINAL HANDOVER PROCESS
SECTION 14 - REMEDIES AND POWER
CLAUSE NO. 67 - DEFAULT OF CONTRACTOR AND FORFEITURE
CLAUSE NO. 68 - URGENT REPAIRS
SECTION 15 - SPECIAL RISKS

CLAUSE NO. 69 - SPECIAL RISKS
CLAUSE NO. 70 - PAYMENT IF CONTRACT IS TERMINATED
SECTION 16 - SETTLEMENT OF DISPUTES

CLAUSE NO. 71 - SETTLEMENT OF DISPUTES
CLAUSE NO. 72 - PAYMENT IN EVENT OF FRUSTRATION
SECTION 17 - MISCELLANEOUS
CLAUSE NO. 73 - NOTIFICATIONS
CLAUSE NO. 74 - DEFAULT OF OWNER
CLAUSE NO. 75 - TAXES AND DUTIES
CLAUSE NO. 76 - GUARANTEE FOR LATENT DEFECTS
CLAUSE NO. 77 - BOYCOTT OF ISRAEL
CLAUSE NO. 78 - USE OF EXPLOSIVES
CLAUSE NO. 79 - FINAL PLANS, AS BUILT DRAWINGS AND OPERATION AND
MAINTENANCE MANUALS
SECTION 1 - DEFINITION AND INTERPRETATIONS
CLAUSE N O. 1 - DEFINITIONS:
1.1 The following words and expressions shall have the meanings hereby assigned to them,
except where the context otherwise requires.
1. Owner (First Party):

Means DUR Hospitality Co. and the legal successors in title to the Owner.
2. Contractor (Second Party);

Means person or persons, firm, company or consortium whose tender has been
accepted by the Owner and includes the Contractors personal representatives,
successors and permitted assigns.
3. Engineer:
Means employer or employees of Owner or from, Firm or office appointed by the
Owner to act as an Engineer for the supervision of the Contract Works. Consultant
means Engineer.
4. Engineers Representative:
Means any Resident Engineer or any supervisor appointed from time to time by the
Engineer to perform the duties set forth in the Contract.
5. Works:
Means all Works to be executed under the Contract and shall include the Temporary
works and cleaning up.
6. Temporary Works:
Means all Temporary Works of every kind required on or about the execution,
completion, and maintenance of the Works and which can be removed or replaced or
omitted during or after the execution of the Works.
7. Contract:
Means collectively the Contract Documents listed in the (Contract Agreement Form)
including accompanying documents and any further Addenda (which both contracting
parties agree) and shall be part of the Contract.
8. Contract Price (Contract Value):

Means the sum stated in the (Contract Agreement) and in the letter of award subject to
such further additions thereto or deductions there from as made under provisions
hereinafter contained.
9. Constructional Plant:
Means all appliances or things of whatsoever nature required in or about the execution
or maintenance of the Works but does not include materials or other things intended to
form or forming part of the Works.
10. Specifications:
Means the Specifications referred to in the Contract and forming part of it, and any
further modifications thereof, or addition thereto, as may from time to time be furnished
or approved by the Engineer.
11. Drawings:
Means the Drawings referred to in the Contract and forming part of it and any
modification of such Drawings approved in writing by the Engineer and such other
Drawings as may from time to time be furnished in writing by the Engineer.
12. Site:
Means the land and other places on, or through which the Works are to be carried out
and any other lands and places provided by the Owner for working or any other
purpose as may be designated in the Contract as forming part of the Site.
13. Approved:
Means approved in writing by the Engineer or Owner including subsequent;
confirmation issued by the Engineer or previous verbal approval and means approval
in writing by the Engineer or the Owner including as aforesaid.
14. Accepted:
Means accepted in writing and Acceptance" means acceptance in writing.
15. Month and Day:

Means Gregorian and day.
16. Time:
Is defined by reference to the Gregorian calendar.
17. Cost:
Shall be deemed to include all associated cost including overhead costs whether on or
off Site.
18. Advance payment:

Means the amount paid by the Owner to the Contractor before the actually starts the
work. It means a payment (by the Owner) on account to help the Contractor in
providing plant and materials.
19. Performance Guarantee:

Is a bank guarantee which covers the Owner against the Contractors failure to
perform his contractual obligations during the period of the Contract.
20. Official Handover:

Is the process by which the Owner hands over the Site to the Contractor to start work
and the Site shall be in the possession of the Contractor.
21. Initial Handover:

Is the process by which the Contractor hands over initially the executed works to the
Owner and the responsibility of taking care of the executed works is passed from
Contractor to Owner. It is called "Initial" because maintaining the handed over Works is
still responsibility of the Contractor.
22. Final Handover:

Is the process by which the Contractor hands over finally to the Owner the Works and
ceases to be responsibility for its maintenance.
23. Maintenance Period:

Is the period elapsing between the initial and final handover.
24. Excepted Risks:
Are those risks which are excepted from the Contractors responsibility to correct
damages that they may cause (if these risks occur) to the Works for which the
Contractor is originally liable.
25. Special Risks:

By definition they are similar to the excepted risks.
26. Special Conditions of the Contract:

Are those conditions applicable specially to this Project/contract.
27. Government:
It means the Government of the Kingdom of Saudi Arabia.
28. Kingdom:
It means the Kingdom of Saudi Arabia.
29. Letter of Acceptance:

Is the same as Letter of Intent or Letter of Award or Letter of Appointment.
1.2 Singular and Plural:

Words imparting the singular only, also includes the plural and vice where the context
requires.
1.3 Headings and Marginal Notes:

The headings and marginal notes in these Conditions have only been included for ease of
identifying the subject matter of the clause, therefore, they shall not be deemed to be part
of these Conditions or be taken into consideration in the interpretation of the Contract.
SECTION 2 ENGINEER AND ENGINEERS REPRESENTATIVE
CLAUSE NO. 2 ENGINEER DUTIES, POWERS AND AUTHORITIES
2.1 In addition to the provisions of the Contract, the Engineer (using technical and
managerial experience) shall carry out his duties in implementing the Contract and
issuing without delay directions, instructions, decisions, certificates and orders as
specified in the Contract. The Engineer shall be responsible to the Owner and he has
the duty to watch and supervise the work and to test, examine, and approve any
materials to be sued or workmanship to be employed in connection with the work.
Also, the Engineer has the duty to review and approve the Contractors programme, to
review progress of work, to ascertain and determine by measurement the value of
work performed, to attend tests whether during construction or completion, to check
and approve shop and as-built drawings, to conduct periodical site meetings with
Contractors and any other duties as specified in the Contract.
The Engineer has the authority to order suspension of the Works and to withhold
payment certificates as provided in the Contract. The Engineer has no authority to
relieve the Contractor of any of his duties or obligations under the Contract nor to order
any work involving any delay extra payment by the Owner, not to make any variation
affecting the original design before or without the written approval of the Owner.
The Engineer may from time to time, in writing, delegate to the Engineers
Representative any of the powers and authorities which the Owner has vested in the
Engineer and shall furnish to the Contractor and to the Owner copies of all such written
delegations of powers and authorities. The Engineer has no right to delegate to his
representative powers and authorities which were not originally vested in him by
Owner. Any written instructions or approval given by the Engineers Representative to
the Contractor within the terms of such delegation and within the authorities vested in
the Engineer by the Owner (but not otherwise) shall bind the Contractor and the Owner
as though it had been given by the Engineer. Provided always as follows:
1. Failure of the Engineers Representative to disapprove any work or materials shall not
prejudice the power of the Engineer or the Owner to disapprove such work or materials
and to order the pulling down, removal or breaking up thereof.
2. If the Contractor shall dissatisfied for any reason with any decision of the Engineers
Representative, he shall be entitled to refer the matter to the Engineer, who shall
thereupon confirm, reverse or vary such decision.
2.2 The Engineers Representative shall carry out his duties as Resident Engineer and
shall be responsible (in so doing) to the Engineer.
The duties of the Engineers Representative (in addition to the provisions of the
Contract) are to watch over and supervise the work and to ensure that the standards of
the material used, work done, workmanship employed and tests performed, are in
accordance with the Specifications and in conformity with Contract requirements.
The powers and authorities of Engineers Representative shall be those powers and
authorities delegated to him in writing by the Engineer and notified in writing to both
the Contractor and Owner. The Engineers Representative should abide with such
delegation.
The delegated powers and authorities to the Engineers Representative shall be part of
the powers and authorities of the Engineer which the Owner has originally vested in
the Engineer.
The Engineers Representative shall be a competent and qualified engineer and shall
be available constantly on Site. Also, he shall give his whole time to Project and to the
job on Site.
SECTION 3 ASSIGNMENT AND SUBLETTING
CLAUSE NO. 3 ASSIGNMENT:
3.1 The Contractor shall not assign the Contract or any part thereof, or any benefit or
interest there under without the prior written consent of the Owner. If such consent is
given, the Contractor jointly with his Sub-contractor will be responsible for the
execution of the Works under this Contract.
CLAUSE NO. 4 SUBLETTING:
4.1 The Contractor shall not sublet the whole of the Works, or any part of the Works
(except where otherwise provided by the Contract) without the prior written consent of
the Owner.
The Owner shall give his consent on any subletting and no any recommended
Subcontractor after he is convinced and satisfied with both evaluations performed by
the Engineer of the justifications given to him by the Contractors, and of the
capabilities of the proposed Subcontractor.
The Engineer, without delay shall send his aforementioned evaluations in the form of a
written report to the Owner requesting his approval.
Consent by the Owner, shall not relieve the Contractor from any liability or obligation
under the Contract and the Contractors shall be responsible for the acts, defaults or
neglects of any Subcontractor, his agents, servants or workmen as fully as if they were
the acts, defaults or neglects of the Contractor, his agents, servants or workmen.
4.2 If any Subcontractor (engaged on the Works) executes any work or provides any
service, or material, or thing which in the opinion of the Engineer is not in accordance
with the Contract, the Engineer may (by written notice to the Contractor) require him to
terminate such Subcontract and to make good and rectify (at his own expense) the
damages due to failure of his Subcontractor.
The Contractor upon the receipt of such notice shall immediately terminate the
Subcontract and this shall not give the Contractor any right to claim compensation or
extension of time or otherwise.
No action taken by the Engineer under this Clause shall relieve the Contractor of his
responsibilities under this Contract for the quality of work.
4.3 The Contractor shall be liable to the Owner for damages in the event a Subcontractor
fails to perform in accordance with the requirements of this Contract.
4.4 The Contractor, before signing any Subcontract agreement shall furnish to the
Engineer a draft copy of the said Subcontract agreement (which he intends to sign), to
review and check its conformity with the requirements of this Contract and with the
approved project time schedule. The contractor shall not employ any Subcontractor to
whom the Engineer or Owner may have an objection.
4.5 The Contractor, after signing the Subcontract agreement, shall furnish to the Engineer
a copy of the final Subcontract agreement.
SECTION 4 CONTRACT DOCUMENTS
CLAUSE NO.5 THE SCOPE OF THE CONTRACT
5.1 The Contract scope consists of the following:
1. Construction, completion and maintenance of the Works.
2. Supply of workmen, materials, Constructional Plant and Temporary Works.
CLAUSE NO. 6 THE LANGUAGE OF THE CONTRACT
6.1 The English Language shall be the ruling language of all documents.
6.2 The Contractor shall conduct all correspondence with the Owner and the Engineer in
the English Language. The Contractor may however, conduct his correspondence in
Arabic provided that the English translation is included therein, In case of any
difference or discrepancy, the interpretations or meaning of the English text shall
prevail. All correspondences with the Owner shall be forwarded through the Engineer.
CLAUSE NO. 7 SUBSEQUENT LEGISLATION
7.1 Any Law or Regulation enacted after the date of the Basic Tender Submission and in
operation during the period of the Works and during the period of maintenance shall be
regarded as though it was part of this Contract and the Contractor is responsible for
complying with all such Laws and Regulations at his own expense.
CLAUSE NO. 8 DOCUMENTS MUTUALLY EXPLANATORY
8.1 The Contract consists of the following documents:
1. The Letter of Award and Notice to Proceed and Contractors Acceptance thereof.
2. Contract Agreement and any further addenda to it (if any) questions and answers
and clarifications which the two parties agree and sign.
3. The Tendering Conditions and its Addenda (if any).
4. The Special Conditions of Contract.
5. The General Conditions of Contract.
6. The Drawings.
7. The Specifications (Which is identical to Phase IV issued documents signed and

stamp by SAS)
8. The Priced Bill of Quantities.
The documents constitute a complete unit and each one shall be considered to be a
part of the Contract and shall be complimentary to the other documents, and to be
taken as mutually explanatory of one another.
8.2 In the case of ambiguities or discrepancies between the Contract Documents,

precedence will be given to the documents in the order listed in Sub-Clause 8.1 of this
Clause.
8.3 As per the provisions of items No. 1, 3 and 4 of Instructions to Tenderers and since:
1. The Owner has requested (in the tendering stage) all tenderers to examine Tender
Documents, to inspect the Site and to obtain information before submitting their
tenders.
2. The Owner has given the tenderers (before submitting their tenders the chance to
discover any discrepancy, ambiguity, incomplete information or error which may
exist in the Tender Documents and the chance to ask for any clarifications.
3. The tenderer, by submitting his tender shall be deemed by the Owner to have
examined and satisfied himself as to the correctness and completeness of the
Drawings, Specifications and other Tender Documents and to have inspected the
Site and to have obtained all information and data. The Contractor shall be held
responsible for the design of the Works as if these were prepared by him. He shall
also be responsible at his own cost for setting right any damages or deficiencies
arising from such responsibility.
CLAUSE NO. 9 CUSTODY OF DRAWINGS:
9.1 The Drawings shall remain in the sole custody of the Engineer, but two copies thereof
shall be furnished to the Contractor free of charge. The Contractor shall provide and
make, at his own expense, any further copies required by him. At the completion of the
Contract, the Contractor shall return to the Engineer all Drawings delivered to him.
9.2 One copy of the Drawings, furnished to the Contractor as aforesaid, shall be kept by
the Contractor on the Site and the same shall at all reasonable times be available for
inspection and use by the Engineer or the Engineers.
9.3 All indications or notations which apply to one or a number of similar situations,
materials or processes shall deemed to apply to all such situations, materials or
processes wherever they appear in the work, except where a contrary result is clearly
indicated by the Contract Documents.
CLAUSE NO. 10 FURTHER DRAWINGS AND INSTRUCTIONS:
10.1 The Engineer shall have full power and authority to supply to the Contractor from time
to time during the progress of the Works such further Drawings and instructions shall
be necessary for the purpose of the proper and adequate execution and maintenance
of the Works. The Contractor shall carry out and be bound by the same.
SECTION 5 GENERAL OBLIGATIONS
CLAUSE NO. 11 CONTRACTORS GENERAL RESPONSIBILITIES:
11.1 The Contractor shall, subject to the provisions of the Contract and with due care and
diligence, execute and maintain the Works and provide all labor, including the
supervision thereof, materials, Constructional Plant and all other things, whether of a
temporary or permanent nature, required in and of such execution and maintenance,
so far as the necessity for providing the same is specified in or is reasonably to the
inferred from the Contract.
11.2 The Contractor shall take full responsibility for the adequacy, stability and safety of all
site operations and methods of construction of the Work. He shall also be responsible
for the design and specifications of the temporary Works.
CLAUSE NO. 12 CONTRACT AGREEMENT:
The Contractor shall, when called upon so to do, enter into and execute a
Contract agreement in the form provided for in the Tendering Conditions.
CLAUSE NO. 13 PERFORMANCE GUARANTEE:
13.1 The Contractor shall submit, within ten days of his advice, by written notice that his
tender has been accepted, a performance Bank Guarantee for the due performance of
the Contract where the bank with the Contractor are bound to the Owner in a sum of
10% of the contract price. The Bank Guarantee shall be irrecoverable, unconditional,
simple on demand and valid for the duration of the Contract and until the final
handover.
13.2 The guarantee should be issued by a SAMA approved local bank accepted by the
Owner.
The cost of obtaining the guarantee shall be at the expense in all respects of
the Contractor.
13.3 If the Contractor whose tender has been accepted does not submit the required
performance bank guarantee, as per the requirement of this Clause, the Owner
reserves the right to withdraw his acceptance and confiscate the tendering guarantee
or at his option to execute the Works at the expense of the Contractor as described in
Clause 67 of these conditions without issuing any notice to the Contactor.
CLAUSE NO. 14 INSPECTION OF SITE:
14.1 Regardless of any data provided to the Contractor with the Tender Documents such as
and not limited to data on surveying, hydrological and the sub-surface conditions, the
Contractor shall be deemed to have inspected the Site, its surroundings, have checked
and accepted the technical and other data provided to him with the Tender
Documents, and any other available information and shall be deemed to have satisfied
himself, before submitting his tender as to the form and nature of the Site including the
sub-surface conditions, the hydrological and climatic conditions, the extent and nature
of the work, the sources, sufficiency, availability, means of obtaining and delivering
materials, water, fuel, power, labor, equipment, transport, accommodations and any
other matters or things required for the proper construction and maintenance of the
Works.
Also, the Contractor shall be deemed to have obtained during, before, or after his
inspection of Site, all necessary information on all issues or things required for the
construction and maintenance of the Works.
No claim for additional payment will be allowed on account of the failure of the
Tenderer to obtain complete and correct information. The Tenderer shall be
responsible for any misunderstanding or incorrect information however obtained.
14.2 The Contractor shall be responsible for the cost of his inspection of Site and obtaining
information.
CLAUSE NO. 15 SUFFICIENCY OF TENDER
The Contractor shall be deemed to have satisfied himself before tendering as to the
correctness and sufficiency of his tender for the Works and of the rates and prices stated in
the priced Bills of Quantities and the Schedule of Rates and Prices which must cover all his
obligations under the Contract and all matters and things necessary for the proper execution,
completion and maintenance of the Works.
CLAUSE NO. 16 WORKS TO BE EXECUTED TO THE SATISFACTION OF

ENGINEER
16.1 The Contractor shall execute, complete and maintain the works in strict accordance
with the Contract and to the satisfaction of the Engineer. He shall comply with and
adhere strictly to the Engineers instructions and directions on any matter, whether
mentioned in the Contract or not, touching or concerning the Works. The Contractor
shall take instructions and directions only from the Engineer or the Engineers
Representative, subject to the limitations and manner provided for in this Contract.
16.2 The Contractor shall satisfy the following requirements:

1. To endeavour to purchase high-quality goods for the purposes of the execution
of the Contract.
2. All local or imported goods used for this Contract shall be in accordance with
one of the known International Specifications designated by the Engineer.
3. The Contractor shall satisfy the rules, the regulations and the special lists
issued by the authorized Directorate with respect to the environmental
protection conditions in the Kingdom.
CLAUSE NO. 17 PROGRAMME TO BE FURNISHED
17.1 Within 21 days from the date of the letter of acceptance to the Contractor, the
Contractor shall submit to the Engineer for approval the proposed final detailed
construction programme showing the order the order and the method in which the
Contractor proposes to carry out the Works within the specified time for completion
provided for in this Contract. He shall submit his work programme in the form of bar
chart or critical path method (C.P.M.). The Engineer shall decide which form he prefers
to be (in his opinion) suitable for monitoring the execution of Works.
The Contractor shall submit also with his work programme the following (in the forms
required by the Engineer):
1. Material Procurement Programme: Showing dates of initial submittal, final submittal,

final approvals, release for ordering/fabrication and delivery to Site.
2. Manpower Programme: Showing nos., trades, dates of employment in the Project
Works.
3. Equipment Programme: Showing type, nos., capacity and dates of delivery to Site.
4. Subcontractors Programme: Showing specialty and dates of their employment in the
Project Works.
5. Payments: Cash Flow Schedule.
17.2 The Engineer, upon receiving the aforementioned programmes shall review, approve
or request changes to be done. The Contractor shall make all changes requested by
the Engineer and re-submit the programmes for approval.
17.3 After programmes are approved, the Engineer shall immediately submit to the Owner
two original copies of the approved programmes duly signed by him and by the
Contractor.
17.4 If at any time, it appears to the Engineer that the Contractors actual progress does not
conform with the approved programmes, the Engineer shall request the Contractor to
produce a revised programme showing the required necessary modifications to be
done and the measures to be taken to ensure completion of the Works within the time
for completion as specified in the Contract.
17.5 Should the Contractor fail to submit his programmes to the Engineer within the
specified period mentioned in Sub-Clause 17.1 of this Clause,
or
Should the Contractor delay in the opinion of the Engineer making changes requested
by the Engineer, then the Engineer shall have the right to withhold interim payment
certificates or suspend the Works until the Contractor submits the required
programmes.
17.6 The Contractor shall be responsible for carrying the costs of preparing and modifying
the aforementioned programmes.
17.7 The submission to and approval by the Engineer of such programmes or the furnishing
of such particulars shall not relieve the Contractor of any of his duties or
responsibilities under the Contract.
17.8 Within four weeks after the award of the Contract and thereafter at monthly intervals
the Contractor shall submit to the Engineer a Progress Report showing, for each class
of work included, the percentage completion attained and the total value of work to be
completed as of the first of each month until substantial completion. All calculations
shall be on the basis of work in place, but not including the value of materials on site.
17.9 The Progress Report shall be reviewed by the Engineer for compliance with the
requirements of this Clause and will be accepted by him or returned to the Contractor
for revision and resubmission. No payment under this Contract shall be due until the
Progress Report has been approved by the Engineer.
17.10 If in any Application for Payment the total value of completed Works in place, as
certified by the Engineer, is less than 90% of the total value of the Work due to be in
place as shown in the Progress Report the Owner may require the Contractor to
accelerate the progress of the Work without cost to the Owner by increasing the work
force or hours of work or by other reasonable means approved by the Engineer.
17.11 If each of three successive applications, as certified by the Engineer, indicates that the
actual work completed is less than 90% of the value estimated in the Progress Report
to be completed by the respective dates, the Owner may, at his option, treat the
Contractors delinquency as a default justifying the action permitted under Clause 67.
17.12 If the Contractor fails to submit any Application for Payment in any month, the Engineer
shall, for the purpose of this evaluation of progress, certify separately to the actual
value of the work in place completed as of the first of the month to the best of his
knowledge.
17.13 Nothing herein shall limit the Owners right to delay fines or other damages for delays
by the Contractor or to any other remedy which he may possess under other
provisions of the Contract Documents or by Law.
CLAUSE NO. 18 CONTRACTORS SUPERINTENDENCE
The Contractor shall give or provide all necessary superintendence during the execution of the
Works and as long thereafter as the Engineer may consider necessary for the proper fulfilling
of the Contractors obligations under the Contract. The Contractor, or a competent and
authorized agent or representative approved in writing by the Engineer, is to be constantly on
Site and shall give his whole time to the superintendence of the same. If such approval shall
be withdrawn by the Engineer in writing, the Contractor shall, as soon as it is practicable,
remove the agent from the Works and shall not thereafter employ him again on the Works in
any capacity and shall replace him by another agent approved by the Engineer. Such
authorized agent or representative shall receive, on behalf of the Contractor, directions and
instructions from the Engineer or the Engineers Representative, subject to the limitations of
Clause-2 hereof.
The Contractors authorized agent or representative shall be sufficiently fluent in both the
Arabic and English languages to receive directions and instructions and to correspond with
the Owner, the Engineer, and the Engineers Representative in the Arabic and English
Language.
CLAUSE NO. 19 CONTRACTORS EMPLOYEES
19.1 The Contractor shall provide and employ on the Site in connection with the execution
and maintenance of the Works.
1. Only such technical assistants as are skilled and experienced in their callings
and such sub-gents, foremen and leading hands as are competent to give
proper supervision to the work they are required to supervise, and
2. Such skilled, semi-skilled and unskilled labour as is necessary for the proper
and timely execution of the Works.
19.2 The 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 the Works who, in the opinion of the Engineer,
misconducts himself, or is incompetent or negligent in the performance of his duties, or
whose employment is otherwise considered by the Engineer to be undesirable and
such person shall not be again employed upon the Works without the written
permission of the Engineer. Any person so removed from the Works shall be replaced
as soon as possible by a competent substitute approved by the Engineer.
19.3 The Contractor shall deliver to the Engineer monthly returns in such forms as the
Engineer requires showing in detail the supervisory staff and the numbers of several
classes and trades of labour employed by the Contractor on the Site. The Engineer
shall inspect (from time to time and whenever he shall feel it is required), the
Contractors records of labour and labours time sheets.
CLAUSE NO. 20 SETTING-OUT:
20.1 The Contractor shall be responsible for the true and proper setting-out of the Works in
relation to original points, lines and levels of reference given by the Engineer or the
Engineers Representative, 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,
shall, at his own cost, rectify such error to the satisfaction of the Engineer. The
checking of any setting-out or of any level by the Engineer 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, pegs and other things used in setting
out the Works.
20.2 Land survey beacons, bench marks and other permanent land survey markings and
features on or around the Site shall not be disturbed unless permission in writing is
obtained from the Engineer.
20.3 Where existing levels either above or under water are relevant to the measurement of
any part of the Works, the Contractor shall take and record such levels before such
part of the Works is commenced. The taking and recording of such levels shall be
carried out under the direction and in the presence of the Engineer. Two copies of the
recorded levels when checked and signed by the Engineer and be the Contractor shall
be supplied to the Engineer and shall be used as a basis of measurement.
20.4 The Contractor, immediately after the official site handover, shall start locating and
concreting all permanent setting out points, establishing all bench marks, reference
points and all other survey work necessary to the approval of the Engineer. The
Contractor shall also start taking levels and drawing the profile and cross-sections well
in advance of any earth works, or any other work. All sections of natural ground shall
be submitted by the Contractor and approved by the Engineer before any other works
are started. In areas where the Engineer deems it essential, sections shall be taken as
ordered by him.
CLAUSE NO. 21 BOREHOLES AND EXPLORATORY EXCAVATION:
If, at any time during the execution of the Works, the Engineer shall require the
Contractor to make boreholes or to carry out exploratory excavation, such requirement
shall be ordered in writing and shall be part of the Works to be executed under this
Contract at the Contractors expense.
CLAUSE NO. 22 WATCHING AND LIGHTING:
The Contractor shall provide at his own cost all lights, guards, fencing and watching
when and where necessary as defined by the Engineer or the Engineers
Representative, or by any public authority, for the protection of the Works, or for the
safety and convenience of the public, or other similar matters.
CLAUSE NO. 23 CARE OF WORK AND EXCEPTED RISKS:
23.1 Care of Works:
1. From the date of commencement of the Works and until the date of certificate of initial
handover of the whole of the Works, the Contractor shall take full responsibility for the
care of Works.
2. From and after, the date of the Certificate of initial Handover for the whole of the
Works, the Contractor shall cease to be liable for the care of the Works and the
responsibility for the care of any outstanding work which he shall have undertaken to
finish during the period of that the Contractor shall take full responsibility for the care of
any outstanding work which he shall have undertaken to finish during the period of
maintenance until such outstanding work is completed.
3. In case any damage, loss or injury shall happen from any cause whatever, save
except the (Expected Risks) as defined in Sub-Clause 23.1 of this clause to:
a. The Works, or any part of the Works before it is initially handed over to
Owner and/or
b. To any of the outstanding Works which the Contractor has undertaken to

finish during the period of maintenance.
The Contractor shall at his own cost, repair and make good the same, so that at
completion, the Works shall be in good order and condition and in conformity in every
respect with the requirements of the Contract and the Engineers instructions.
4. In the event where the Works which the Contractor is responsible to take care of, has
suffered from any damage, loss or injury happening from any of the Excepted Risks,
the Contractor, (if and to the extent required by the Engineer and being ordered by the
Owner to do so and subject always to the provision of Clause 69 hereof), shall repair
and make good the same as aforesaid at the cost of the Owner and as per the
stipulation of contract documents.
5. The Contractor shall also be liable for any damage to the work occasioned by him in
the course of any operations carried out by him after the date of the certificate of initial
handover, for the purpose of completing any outstanding work or complying with his
obligations under this contract.
23.2 Excepted Risks form Contractors liability
1. If any or all excepted risks occur, that may cause damage, loss or injury to the Works,
the Contractor and the Owner are not liable. Excepted risks are not required to be
covered by the Contractors insurance.
2. Collectively, excepted risks are:
a. War, hostilities, invasions, act of foreign enemies, rebellion, revolution,

insurrection, military or usurped power and civil war.
b. Riot, commotion or disorder other than among the Contractors own employees
or the employees of his Subcontractors.
c. Atomic power risks and nuclear hazard.
d. Pressure waves caused by aircraft travelling at sonic or supersonic speeds.
CLAUSE NO. 24 INSURANCE OF WORKS, CONSTRUCTIONAL PLANT, AND

MATERIALS ETC:
24.1 Without limiting his obligations and responsibilities under Clause 23 hereof, the
Contractor shall insure in the joint names of the Owner and the Contractor against all
loss or damage from whatever cause arising (other than the Excepted Risks) for which
he is responsible under the terms of the Contract and in such manner that the Owner
and the Contractor are covered during the period of construction and maintenance for
loss or damage arising from a cause occurring during the above mentioned periods or
activity carried out by him during the maintenance period. Insurance should cover the
following:
a. All the Works to the Contract value.
b. All the Constructional Plant, materials and other things brought on to the Site by
the Contractor to the replacement value of such materials, Constructional Plant
and other things.
Such insurances shall be effected with a national local approved by the Owner
and in terms approved also by the Owner. The Contractor shall produce to the
Owner (within 35 days from the date of Letter of Acceptance) the policy or policies
of insurance and the receipt for payment of the current premiums.
24.2 Should the Works or any part thereof or any of the material, Constructional Plant or
other things be damaged or lost while still under insurance coverage by any risk
insured against, the Contractor shall proceed with the utmost dispatch to make good
such damage or loss and every sum of money received upon the policy or policies
shall be paid to the Owner and shall be paid by him to the Contractor in such
instalments as the Engineer shall think proper and certify having regard to the
progress made by the Contractor in making good the damage or loss aforesaid if and
insofar as such damage or loss ought, in the opinion of the Engineer to be make good
for the proper conduct of the Works or the construction, completion and maintenance
of the Works. If and insofar as the said monies shall not be required for the purpose of
aforesaid they shall upon the written directions of the Engineer be paid over to the
Contractor. If and insofar as such monies shall be insufficient for the purposes
aforesaid the deficiency shall be borne by the Contractor.
CLAUSE NO. 25 DAMAGE TO PERSONS AND PROPERTY:
The Contractor shall indemnify and keep indemnified the Owner against all losses and
claims for injuries or damages to any person or material of any property whatsoever
which may arise out of or in consequence of the construction and maintenance of the
Works and against all claims, demands, proceedings, damages, costs, charges and
expenses whatsoever.
CLAUSE NO. 26 THIRD PARTY INSURANCE:
26.1 Within 35 days from the date of Letter of Acceptance, the Contractor (but without
limiting his obligations and responsibilities under Clause 25 hereof) shall insure in the
joint name of the Owner and the Contractor against his liabilities for any material and
damage, loss or injury which may occur to any property (including that of the Owner or
the Engineer) or to any person (including any employee of the Owner and the
Engineer) by or arising out of the execution of the Works or in carrying out of the
Contract.
26.2 Such insurance shall be effected with a national local insurer approved by the Owner
and in terms approved also by the Owner and for at least the amount stated in the
Tender and the Contractor shall produce to the Owner the policy or policies of
insurance and the receipts for payment of the current premiums within 35 days from
the date of Letter of Acceptance.
26.3 The terms shall include a provision whereby, in the event of any claim in respect of
which the Contractor would be entitled to receive indemnity under the policy being
brought or made against the Owner, the insurer will indemnify the Owner against such
claims and any costs, charges and expenses in respect thereof.
CLAUSE NO. 27 INSURANCE AGAINST ACCIDENT OR INJURY TO WORKMEN:
27.1 The Owner shall not be liable for or in respect of any damages or compensation
payable at Law in respect or in consequence of any accident or injury to any workman
or other person in the employment of the Contractor or any Subcontractor save and
except an accident or injury resulting from any act or default of the Owner, his agents
of servants and the Contractor shall indemnify and keep indemnified the Owner
against all such damages and compensation (save and except as aforesaid) and
against all claims, demands, proceedings, costs, charges, and expenses whatsoever
in respect thereof or in relation thereto.
27.2 The Contractor shall insure against such liability with a national local insurer approved
by the Owner and shall continue such insurance during the whole of the time that any
person are employed by him on the Works and shall produce to the Owner such policy
of insurance and the receipt for payment of the current premiums within 35 days from
the date of Letter of Acceptance provided always that in respect of any persons
employed by any Subcontractor the Contractors obligation to insure as aforesaid
under this Sub Clause shall be satisfied if the Subcontractor shall have insured against
the liability in respect of such persons in such manner that the Owner is indemnified
under the policy but the Contractor shall require such Sub-contractor to produce to the
Owner such policy of insurance and the receipt for payment of the current premiums.
CLAUSE NO. 28 REMEDY ON CONTRACTORS FAILURE TO INSURE:
If the Contractor shall fail to effect and keep in force the insurances referred to in
Clauses 24, 26 and 27 hereof, then and in any such case, the Owner may effect and
keep in force any such insurance and pay such premium or premiums as may be
necessary for that purpose and deduct the amount so paid by the Owner as aforesaid
from any monies due or which may become due to the Contractor.
CLAUSE NO. 29 RENEWAL OF EXPIRED INSURANCE POLICIES:
29.1 Not less than 10 days before the expiration date of each one of the policies to in
Clauses 24, 26, and 27 hereof, the Contractor shall furnish the Owner with a renewed
policy to the period or date defined by the Owner.
29.2 If the Contractor shall fail to renew any expired policy within the period specified in
Sub-Clause 29.1 of this Clause, then, and in any such case, the Owner may renew
such expired policy and pay such premium or premiums as may be necessary for that
purpose and deduct the amount so paid by the Owner as aforesaid from any monies
due or which may become due to the Contractor.
CLAUSE NO. 30 GIVING OF NOTICES AND PAYMENT OF FEES:
30.1 The Contractor shall give all notices and pay all fees required to be given or paid by
any Saudi National or State Statute Ordinance or other Saudi Law or any regulation or
bye-law of any local or other duly constituted authority in relation to the execution of
the Works or of any Temporary works and by the rules and regulations of all Saudi
public bodies and companies whose property or rights are affected or may be affected
in any way by the Works or any Temporary Works.
30.2 The Contractor shall conform in all respects with the provisions of any such Statute
Ordinance of Law as aforesaid and the regulations or bye-Laws of any local or other
duly constituted authority which may be applicable to the Works, or to any Temporary
Works and with such rules and regulations of public bodies and companies as
aforesaid and shall keep the Owner indemnified against all penalties and liabilities of
every kind for breach of any Statute Ordinance or Law, or bye-law.
30.3 Unless otherwise provided by the Owner, the Contractor shall be responsible for
acquiring and securing all permits from various Government and non-government
Agencies. When requested, the Owner will endorse any request from the Contractor to
obtain Government Permits within the limits of the Saudi Arabian Laws and
Regulations, but any delay in obtaining such permits shall not constitute grounds for a
claim. All costs in complying with this Clause shall be borne by the Contractor.
CLAUSE NO. 31 ARTICLES OF VALUE, ANTIQUITY AND OTHER:
All fossils, coins, articles of value or antiquity, structures and other remains or things of
geological or archaeological interest discovered on the site of the Works shall, as
between the Owner and the Contractor, be deemed to be the absolute property of the
Owner. The Contractor shall take responsible precautions to prevent his workmen or
any other persons from removing or damaging any such article or thing and shall
immediately upon discovery thereof, and before removal, acquaint the Owner of such
discovery and carry out, at the expense of the Owner, the Engineers orders (after the
approval of the Owner) as to the disposal of the same.
CLAUSE NO. 32 PATENT RIGHTS AND ROYALTIES:
32.1 The Contractor shall save harmless and indemnify the Owner from and against all
claims and proceedings for or an account of infringement of any patent rights, design,
trademark or name or other protected rights in respect of any Constructional Plant,
machine, work or material used for or in connection with the Works or the Temporary
Works or any of them from and against all claims, proceedings, damages, costs,
charges and expenses whatsoever in respect thereof or in relation thereto.
32.2 The Contractor shall pay all tonnage and other royalties, rent and other payments or
compensation (if any) for getting stone, sand, gravel, clay, or other materials required
for the Works or Temporary Works.
CLAUSE NO. 33 INTERFERENCE WITH TRAFFIC AND ADJOINING

PROPERTIES:
The Contractor shall carry out all operations necessary for the execution of the Works
or the Temporary Works in compliance with the requirements of the Contract so as not
to interfere unnecessary or improperly with the convenience of the public, or the
access to, use and occupation of public or private roads and footpaths and the entry
and the exit to or from properties, whether in the possession of the Owner or of any
other person. The Contractor shall save harmless and indemnify the Owner in respect
of all claims, proceedings, damages, costs, charges and expenses whatsoever arising
out of, or in relation thereto to, any such matter in so far as the Contractor is
responsible therefore.
CLAUSE NO. 34 EXTRAORDINARY TRAFFIC:
34.1 The Contractor shall use every reasonable means to prevent any of the highways or
bridges communicating with or on the routes to the Site from being damaged or,
injured by any traffic of the Contractor or any of his Subcontractors and, act in
accordance with any relevant regulations. The Contractor, in particular, shall select
routes, choose and use vehicles and restrict and distribute loads so that any such
extraordinary traffic as will inevitably arise from the moving of plant and material to and
from the Site shall be limited as far as reasonably possible, so that no unnecessary
damage or injury may be occasioned to such highways and bridges.
34.2 Special Loads: Should it be found necessary for the Contractor to move one or more
loads of Constructional Plant, machinery or pre-constructed units or parts of units of
work over part of a highway or bridge, the moving whereof is likely to damage any
highway or bridge unless special protection or strengthening is carried out on the
account of Contractor, then the Contractor shall, before moving the load on to such
highway of bridge, give written notice to the Engineer or the Engineers Representative
of the weight and other particulars of the load to be moved and his proposals for
protecting or strengthening the said highway or bridge. The Contractor shall comply
with the instructions of the Engineer in this matter on his own account. Unless, within
fourteen days of the receipt of such notice, the Engineer shall by counter-notice direct
that such protection or strengthening is unnecessary, then the Contractor will carry out
at his own cost such proposals or any modification thereof that the Engineer shall
require.
CLAUSE NO. 35 OPPORTUNITIES FOR OTHER CONTRACTORS
The Contractor, in accordance with the requirements of the Engineer, shall afford all
reasonable opportunities for carrying out their work to any other contractors employed
by the Owner and their workmen, and to the workmen of the Owner and of any other
duly constituted authorities who may be employed in the execution on or near the site
of any work not included in the Contract or of any Contract which the Owner may enter
into in connection with or ancillary to the Works. The Contractor shall make available,
free of charge, to any such other contractor, or to the employees, or any such
authority, any road or ways on the site.
CLAUSE NO. 36 CONTRACTOR TO KEEP SITE CLEAR:
36.1 During the progress of the Works, the Contractor shall keep the Site reasonably free
from all unnecessary obstructions and shall store or dispose of any Constructional
Plant and surplus materials and clear away and remove from Site any rubbish or
Temporary Works no longer required.
36.2 On completion of the Works, the Contractor shall clear away, and remove from the Site
all Constructional Plant, materials, rubbish and Temporary Works of every kind, and
leave the whole of the Site and Works clean and in a workmanlike condition to the
satisfaction of the Engineer.
CLAUSE NO. 37 INSUFFICIENT TOOLS, PLANT AND EQUIPMENT:
If at any time, during the progress of the Works, it appears to the Engineer that
Contractors tools, plant and equipment are insufficient, inefficient, or inappropriate to
secure the quality of the work required or the proper rate of progress, the Engineer
may order (in writing) the Contractor to increase their efficiency, to improve their
character, to augment their number or to substitute new tools, plant, or equipment as
the case may be, and the Contractor must conform to such an order. The failure of the
Engineer to demand such increase of efficiency, number or improvement shall not
relieve the Contractor of his obligations to achieve the required quality of works and
the rate of progress necessary to complete the work within the time required by the
Contractor to the satisfaction of the Engineer.
SECTION 6 LABOR
CLAUSE NO. 38 LABOR:
38.1 Engagement of Labour: The Contractor shall make his own arrangement for the
engagement of all necessary labour, local or otherwise.
38.2 Employing Nationals: The Contractor shall give favourable consideration to employing
nationals of Saudi Arabia.
38.3 Expatriate Labour: The Contractor shall make his own arrangement for the
engagement of expatriate labor and staff if required and for the housing,
transportation, health welfare and repatriation of the same and shall conform in all
respects with the conditions and requirements of any Law and of any regulations or
Orders of the Government or any Authority which may applicable including any such
Law, regulations or Orders passed or made or coming into force after the date of
tender.
38.4 Labour Laws: The Contractor shall conform in all respects with the provisions of the
Labour Laws of Saudi Arabia and any amendments thereto.
38.5 Rates of Wages: The Contractor shall pay rates of wages not less favourable than
those approved for comparable works by the Government of Saudi Arabia.
38.6 Hours of Labour: The Contractor shall insure hours of work and other conditions of
labour which are not less favourable than the general level observed in the trade or
industry.
38.7 Supply of Water: The Contractor shall be responsible for providing at his own cost, all
the water required for the Works in accordance with the Specifications. Sufficient
storage capacity shall be installed on the Site to ensure an uninterrupted supply at
sufficient delivery pressure for all purposes. The supply provided shall include an
adequate supply of drinking and other water for the use of the Contractors and
Engineers staff and work people on Site to the satisfaction of the Engineers
Representative.
38.8 Alcoholic Liquor or Drugs: The Contractor shall not otherwise than in accordance with
the Statute Ordinances and Government Regulations or Orders for the time being in
force, import, sell, give, barter or otherwise dispose of any alcoholic liquor or drugs or
permit or suffer such importation, sale, gift, barter or disposal by his subcontractors,
agents or employees.
38.9 Arms and Ammunition: The Contractor shall not give barter or otherwise dispose of to
any person or persons any arms or ammunition of any kind or permit or suffer the
same as aforesaid.
38.10 Festivals and Religious Customs: The Contractor shall in all dealings with labor in his
employment have due regard to all recognized festivals, days of rest and religious or
other customs prevailing in Saudi Arabia.
38.11 Epidemics: In the event of any outbreak of illness of an epidemic nature, the
Contractor shall comply with and carry out such regulations, orders and requirements
as may be made by the Government, or the local medical or sanitary authorities for the
purpose of dealing with and overcoming the same.
38.12 Disorderly Conduct, etc.: The Contractor shall at all times take all reasonable
precautions to prevent any unlawful riotous or disorderly conduct by or amongst his
employees and for the preservation of peace and protection of persons and property in
the neighbourhood of the Works against the same.
38.13 Observance by Subcontractors: The Contractor shall be responsible for observance

by his Subcontractors of the foregoing provisions.
38.14 Sanitary Measures: The Contractor shall comply in all respects with the rules,
regulations and instructions of the Department of Health as regards sanitary
requirements in connection with the Works. This shall include the provision and
maintenance of latrines on the Site for the use of his staff and labor and for the
Engineer and his supervision staff. Such latrines and the disposal of foul drainage etc.,
shall be to the approval of the Engineer and/or the local Department of Health.
38.15 First-Aid: The Contractor shall make his own arrangements for treatment of casualties
on the Site in such first-aid units as may be thought necessary, including the removal
(by ambulance or suitable transport) of injured or sick employees to hospital or to their
home.
38.16 Accidents: The Contractor must promptly report in writing to the Engineer all accidents
whatsoever arising out or in connection with the performance of the Works whether on
or adjacent to the Site which caused death and personal injury or property damage
giving full details and statements of witnesses. In addition if death or serious injuries or
serious damage are caused, the accident shall be reported immediately by telephone
or messenger to both the Engineer and the Owner. The Contractor shall also report
such accidents to the competent authority whenever such report is required by law.
CLAUSE NO. 39 RETURNS OF LABOR AND PLANT
The Contractor shall monthly provide the Engineer with a return (in detail) showing the
names of all his servants and laborers and any other information that may be required
by the Engineer or the Engineers Representative with respect to the labour. The same
shall apply to Constructional Plant.
SECTION 7 MATERIALS AND WORKMANSHIP
CLAUSE NO. 40 QUALITY OF MATERIALS AND WORKMANSHIP AND TESTS
40.1 All materials and workmanship shall be of the best and highest level of the respective
kinds described in the contract and in accordance with the Engineers instructions and
shall be subjected from time to time to such tests as the Engineer may direct at the
place of manufacture or fabrication or on the Site or at all or any of such places. The
Contractor shall submit for the review and approval of the Engineer three alternatives
for each material submittal all complying with the requirements of the Contract
Documents. The Contractor shall provide such assistance, instruments, machines,
labor and materials as are required for examining, measuring and testing any work and
the quality, weight or quantity of any material used and shall supply samples of
materials before incorporation in the Works for testing as may be selected and
required by the Engineer.
40.2 Cost of Samples: All samples shall be supplied by the Contractor at his own cost.
40.3 Cost of Tests: The cost of making any test shall be borne by the Contractor if such
test is intended by or provided for in the Contract or if such test is ordered by the
Engineer and is deemed necessary by the Engineer to be carried out at any place to
prove that materials and workmanship are in accordance with the specifications.
40.4 Provision of Samples: The Contractor shall submit for the approval of the Engineer
samples of all materials or work which he proposes to provide, fixed on presentable
and standardized boards as directed and approved by the Engineer. Such samples,
shall be retained by the Engineers Representative and if approved, shall be referred
to as the minimum standard with which all subsequent supplies of that work or material
shall comply. Any such work or material which does not in the opinion of the
Engineers Representative, at least equal to the standard of the approved sample shall
forthwith be removed from the Site.
40.5 Submittals are to be submitted by the Contractor within 10 days from the date stated in
the latest approved submittal schedule. The Engineer may return to the Contractor
without review any submittal which is not submitted within the time frame specified
above. The maximum number of submittals in process at any one time should not
exceed 40 submittals. Otherwise, the review period has to be elongated.
CLAUSE NO. 41 INSPECTION OF OPERATIONS
The owner, the Engineer and any person authorized by the Engineer shall at all times
be able to witness the Works and have access to the Site and to all workshops and
places where work is being prepared or from where materials manufactured articles or
machinery are being obtained for the Works, and the Contractor shall afford every
facility for and every assistance necessary to cover the right to such access.
CLAUSE NO. 42 EXAMINATION OF WORK
42.1 Examination of Work and Covering Up: No work shall be covered up or put out of view
without the approval of the Engineer of the Engineers Representative and the
Contractor shall afford full opportunity for the Engineer or the Engineers
Representative to examine and measure any work which is about to be covered up or
put out of view and to examine foundations before permanent works are placed
thereon. The Contractor shall give due written notice to the Engineer or the Engineers
Representative whenever any such work is ready or about to be ready for examination
and measurement. The Engineer or the Engineers Representative shall, within 24
hours, attend for the purpose of examining and measuring such work.
42.2 Uncovering and Making Openings: The Contractor shall uncover any part or parts of
the Works or make openings in or through the same as the Engineer may from time to
time direct and shall reinstate and make good such part or parts to the satisfaction of
the Engineer. If any such part or parts have been covered up or put out of view after
compliance with the requirement of Sub-Clause (1) of this Clause and are found to be
executed in accordance with the Contract, the expenses of uncovering, making
openings in or through, reinstating and making good the same shall be borne by the
Owner. In all other cases such costs shall be borne by the Contractor.
CLAUSE NO. 43 REMOVAL OF IMPROPER WORKS AND MATERIALS
43.1 The Engineer shall, during the progress of the Works, have the right to order in writing
from time to time the following:
1. The removal from the Site, within such time or times as may be specified in the
order, of any materials which in the opinion of the Engineer, are not in
accordance with the Contract.
2. The substitution of proper and suitable materials.
3. The removal and proper re-execution notwithstanding any previous test thereof
or interim payment therefore of any work which in respect of any materials or
workmanship is not in the opinion of the Engineer, in accordance with the
Contract.
43.2 Default of Contractor in compliance with the Engineers Instructions: In case of default
on the part of the Contractor in carrying out such orders, the Owner 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 Owner, or
may be deducted from any monies due or which may become due to the Contractor.
CLAUSE NO. 44 SUSPENSION OF WORK
44.1 The Contractor shall, on the written order of the Engineer, suspend the progress of the
Works or any part thereof for such time or times and in such manner as the Engineer
may consider necessary and shall during such suspension properly protect and secure
the Works, so far as is necessary in the opinion of the Engineer.
The extra cost incurred by the Contractor in giving effect to the Engineers instructions
under this Clause shall be borne and paid by the Owner unless such suspension is:
a. otherwise provided for in the Contract, or
b. necessary by reason of some default on the part of the Contractor, or
c. necessary by reason of climatic conditions on the Site, or
d. necessary for the proper execution of the Works or for the safety of the works
or any part thereof in as much as necessity does not arise from any act or
default by the Engineer or the Owner or from any of the excepted risks defined
in Sub-clause 23.2.
In all the above cases, the cost of suspension shall be borne by the Contractor.
Provided that the Contractor shall not be entitled to recover any such extra cost unless
he gives written notice of his intention to claim to the Engineer within twenty-eight days
of the Engineers order. The Engineer shall determine such extra payment and/or
extension of time under Clause 48 to be made to the Contractor in respect of such
claim as shall, in the opinion of the Engineer be fair and reasonable.
SECTION 8 COMMENCEMENT TIME AND DELAYS
CLAUSE NO. 45 COMMENCEMENT OF WORKS
The Contractor shall commence the Works within 7 days from the date of site
handover. If the Contractor fails to take over the site for any reason not acceptable to
the Owner, then the time for completion stated in Clause 47 shall be calculated from
the date of the Letter of Award and Notice to Proceed. The Contractor shall proceed
with the works with due expedition and without delay, except as may be expressly
sanctioned or ordered by the Owner, or be wholly beyond the Contractors control.
CLAUSE NO. 46 POSSESSION OF SITE
46.1 Save insofar as the Contract may prescribe the extent of portions of the Site of which
the Contractor is to be given possession from time to time and the order in which such
portions shall be made available to him and (subject to any requirements in the
Contract as to the order in which the Works shall be executed), the Owner will give the
Contractor possession of so much of the Site as may be required with a written notice
from the Engineer to commence and proceed with the execution of the Works. If the
possession of Site is to be made in portions, this shall be done in accordance with the
programme referred to in Clause 17 hereof, and otherwise in accordance with such
reasonable proposals of the Contractor as he shall (by written notice to the Engineer),
make and will (from time to time as the Works proceed), give to the Contractor
possession of such further portions of the Site as may be required to enable the
Contractor to proceed with the execution of the Works with due dispatch.
46.2 Way Leaves: The Contractor shall bear all expenses and fees to assure private or
temporary access which may be needed for the Site.
46.3 The Contractor shall also provide at his own cost any area outside the site required by
him for the purposes of the Works or accommodation.
The Contractor shall install, at his own expense, temporary fences to be directed and
approved by the Engineer on the Site.
CLAUSE NO. 47 TIME FOR COMPLETION
Subject to any requirement in the Specifications to the completion of any section of the Works
before completion of the whole, the whole of the Works shall be completed in accordance with
the provision of Clause 65 within the time stated in the Contract calculated from the date of
the Letter of Award and Notice to Proceed.
CLAUSE NO. 48 EXTENSION OF TIME FOR COMPLETION
48.1 Only in the event of:

1. The amount of additional works reaching in the opinion of the Engineer a limit
which require additional time, or
2. If any cause of delay provided for in the Contract requires in the opinion of the
Engineer additional time other than due to a default of the Contractor.
3. If the delay results from official orders to stop the work issued to the Contractor
by Governmental Authorities provided that such orders are not due to defaults
by the Contractor.
The Engineer shall determine the amount of such extension and shall notify the
Contractor after receiving written approval from the owner. Provided that the
Engineer is not bound to take into account any request for extension of time for
completion unless the Contractor has, within 28 days after such additional work
has been commenced, or such circumstances have arisen, delivered the
request to the Engineer accompanied with detailed particulars of any claim for
extension of time in order that such claim may be investigated.
8.2 Taking into consideration the provisions of Sub-Clause 48.1 of this Clause. The
acceptance of the Owner of any request of time extension raised by the Contractor,
and recommended by the Engineer, shall be deemed to be limited to time
compensation only (i.e. the addition of an extra fair amount of time) and it shall not be
deemed to imply any kind of acceptance of any financial compensation. The Engineer
shall reject any claim for financial compensation which is connected with, or resulted
from any extension of time for completion.
CLAUSE NO. 49 NO NIGHTS OR DAYS OF REST OR OFFICIAL HOLIDAYS WORK
Subject to the local labour law and any provision to the contrary contained in the Contract,
none of the Works shall be carried on during the night or on the locally recognized days of rest
or official holidays without the permission in writing of the Engineer, save when the work is
absolutely necessary for the saving of life or property or for the safety of the Works in which
case the Contractor shall immediately advise the Engineer.
If such approval be given by the Engineer, the costs of the inspection for all night, rest days
and other than normal working hours, shall be borne by the Contractor, the Engineers
overtime fees shall be deducted from the Contractors Monthly Certificates thereof.
Granting permission for continuing work during the night or on days of rest shall not give the
Contractor the right for any additional payment, moreover, Works that are executed during the
night shall be carried out without any undue noise and the Contractor shall indemnify the
Owner against any damage caused by noise or any other inconvenience that may happen
during the continuation of the Works and against all claims, accident and all costs, fees and
expenses connected with such damage.
CLAUSE NO. 50 RATE OF PROGRESS OR WORK:
50.1 If at any time, in the opinion of the Engineer, the time rate of progress of the Works is
too slow to ensure completion by the prescribed time, the Engineer shall so notify the
Contractor in writing and the Contractor shall thereupon take at his own expenses
such steps as are necessary and the Engineer may approve to expedite progress so
as to complete the Works by the prescribed time.
50.2 The Contractor shall submit, to the Engineer, a detailed progress work report
supported by approved drawings and documents.
CLAUSE NO. 51 LIQUIDATED DAMAGES FOR DELAY:
If the Contractor shall delay the completion of the whole Works within the time stated in the
Contract and the Owner deems it necessary to withdraw the Works from him, he shall be
required to pay a penalty for the period in which the works are delayed after the date specified
for handover. The penalty shall be calculated on the basis of the daily average cost of the
Contract by dividing the Contract value by the period for completion stated in the contract. The
imposition of the penalty upon the Contractor shall be in the following manner:
1. A fine for the first portion of the delay period corresponding to one fourth of the
daily average cost for each day of the delay until the delay reaches fifteen days.
2.
A fine for the second portion of the delay period corresponding to one half of the
daily average cost for each day of the delay until the delay reaches thirty days.
3. A fine for the third portion of the delay period corresponding to the whole of the
daily average cost for each day of the delay beyond the period stipulated in
paragraph 2 above. The total amount of these penalties shall not exceed 10% of
the final value of the Contract. The Owner may, without prejudice to any other
method of recovery, deduct the amount of the delay fine from any bank guaranties,
monies in his hands, due or which may become due to the Contractor. The
payment or deduction of such damages shall not relieve the Contractor of his
obligation to complete the Works, or of any other of his obligations and liabilities
under the Contract.
CLAUSE NO. 52 SUPERVISION COST DURING THE DELAY:
In addition to the penalty described in the above clause, the Contractor shall be responsible
for all supervision costs during the delay period in which the Contractor is subjected to
penalty.
SECTION 9 MAINTENANCE AND DEFECTS
CLAUSE NO. 53 MAINTENANCE PERIOD:
53.1 Definition of Period of Maintenance: In these conditions the expression Period of

Maintenance shall mean the period of maintenance named in the Contract, calculated
from the date of the initial handover certificate to the date of the final handover and
completion certificate.
53.2 Execution of Work of Repair, etc.: To the intent of the Works shall, at or as soon as
practicable after the expiration of the maintenance Period, be delivered to the Owner in
the condition required by the Contract, fair wear and tear excepted, to the satisfaction
of the Engineer, the Contractor shall:
a. complete the work, if any, outstanding on the date stated in the Taking-over Certificate
as soon as practicable after such date and
b. execute all such work of amendment, reconstruction, and remedying defects,

shrinkages or other faults as may be required of the Contractor in writing by the Owner
or the Engineer during the period of maintenance, or within 14 days of the expiration of
the maintenance period following an inspection during the maintenance period.
53.3 Cost of Execution of Work of Repair, etc.: All such work shall be carried out by the
Contractor at his own expense if the necessity thereof shall, in the opinion of the
Engineer, be due to the use of materials or workmanship not in accordance with the
Contract, or to neglect or failure on the part of the Contractor to comply with any
obligation expressed or implied, on the Contractors part under the Contract.
53.4 Remedy on Contractors failure to carry out work required: If the Contractor refuses to
do or delayed, in the opinion of the Engineer, the carrying out of any such work as
aforesaid required by the Engineer, the Owner shall be entitled to request from other
contractors to carry out the same. All expenses consequent thereon shall be
recoverable from the Contractor by the Owner, or may be deducted by the Owner from
any monies due or which may become due to him.
CLAUSE NO. 54 CONTRACTOR TO SEARCH FOR THE CAUSE OF ANY DEFECT:
The Contractor shall, (if required by the Owner or the Engineer in writing), search
under the directions of the Engineer for the cause of any defect, imperfection or fault
appearing during the progress or in the period of maintenance. If such defect,
imperfection or fault shall be one for which the Contractor is liable as aforesaid, then it
shall be borne by the Contractor and he shall, in such case, repair, rectify and make
good such defect, imperfection or fault at his own expense in accordance with the
provisions of Clause 53 hereof.
SECTION 10- ALTERATIONS, ADDITIONS AND OMISSIONS
CLAUSE NO. 55 VARIATIONS IN THE FORM OF ALTERATIONS, ADDITIONS AND

OMISSIONS
55.1 The Owner shall have the right to make any variation of the form, quality or quantity of
the Works or any part thereof that may be (in the opinion of the Owner) necessary or
desirable. The Owner shall in writing, give the Engineer the power to order the
Contractor to do and the Contractor shall accept to do any or all of the following:
1. Increase or decrease the quantity of any work included in the Contract.
2. Omit any work.
3. Change the character or quality or kind of any work.
4. Change the levels, lines, positions and dimensions of any part of the work.
5. Execute additional work of any kind,
And no such variation shall in any way vitiate or invalidate the Contract but the value of
all such variations (if any) shall be taken into account in ascertaining the final amount
of the Contract. The Contractor does not have the right NOT to proceed with
implementing changes in the Work requested by the Owner by reason that agreement
on the value for any changes has not been breached.
55.2 The Owner shall have the right during the execution of the Works, to increase or
decrease the quantity of works to the overall limit of 20% of the Contract price provided
that the Contract price shall be adjusted by the additions or deductions accordingly.
55.3 No such variations shall be made or executed by the Contractor without an order in
writing of the Engineer after the Owner approved such variations.
CLAUSE NO. 56 VALUATION OF VARIATIONS
56.1 The Engineer may issue Drawings and instructions which include additions or
subtractions in the quantities changes in the materials. If in the opinion of the Engineer
there is an increase or decrease in the Contract Price the Engineer shall first advise
the Owner and obtain his approval then he shall issue the Drawings and instructions to
the Contractor. If the Contract includes similar prices, the Contractor must accept
them.
If the Contract does not contain any rates or prices applicable to the extra or additional
work, then suitable rates or prices shall be agreed upon between the Owner, Engineer
and the Contractor. In the event of disagreement, the Owner shall fix such rates or
prices as shall, in his opinion, be reasonable and proper.
56.2 Power of Engineer to Fix Rates: The Engineer shall have no power to change any of
the rates and prices set out in the Contract. Also, he shall have no power to fix new
rates and prices, if the Contract does not contain any similar work applicable to the
additional work. But in this case the Engineer shall recommend and suggest to the
Owner fair and reasonable rates and prices for such additional work.
56.3 Procedure: If in the opinion of the Engineer, variation in the Works or Specification is
required, then he shall follow the procedure set out below:
1. The Engineer shall submit to the Owner a report on each case giving reasons
and justifications for the variation which is (in his opinion) necessary to be
done. Also, the report shall contain priced quantities of works which are to be
added, or omitted along with drawings, sketches and specifications for new
items (if any). The report shall indicate also the effect of this variation on time
for completion and the savings or additional cost (resulted from the requested
variation) which should be added or deducted from the Contract price.
The report shall include a list showing the cost of previous individual variations
and the total cost up to the requested variation, to inform the Owner if the total
cost of variations is still within the limits defined in Sub-Clause 56.2 of this
clause.
2. The Owner, upon receiving the aforementioned report, shall assess the case
and inform the Engineer of his decision.
3. If the Owner approved the variation, then, the Engineer, upon receiving the
Owners approval, shall instruct (in writing) immediately the Contractor to make
the requested variation and to start work. A copy of his written instruction shall
be furnished to the Owner.
56.4 Day Work: The Engineer, (if in his opinion it is necessary or desirable and after
receiving the approval of the Owner) may order in writing that any additional or
substituted work shall be executed on a day work basis. The Contractor shall then be
paid for such work under the conditions set out in the Day work Schedule included in
the Bill of Quantities (if any) and at the rates and prices affixed thereto by him in his
Tender.
The Contractor shall furnish to the Engineer such receipts or other vouchers as may
be necessary to prove the amounts paid and before ordering materials shall submit to
the Engineer quotations for the same for his approval.
In respect of all work executed on a day work basis the Contractor shall during
continuance of such work deliver each day to the Engineer an exact list in duplicate of
the names, occupation and time of all workmen employed on such work and a
statement (also in duplicate) showing the description and quantity of all materials and
plant used thereon and therefore. One copy of each list and the statement will (if
correct or when agreed) be signed by the Engineer and returned to the Contractor. At
the end of each month the Contractor shall deliver to the Engineer, a priced statement
of the labour, material and plant used and the Contractor shall not be entitled to any
payment unless such lists and statements have been fully and punctually rendered.
56.5 Allowed Claims:

1. For any claim for additional payment (if any), the Contractor shall send to the
Engineer once in every month an account or statement giving detailed particulars
of all claims for any additional expense allowed in this Contract and to which the
Contractor may consider himself entitled and of all additional work ordered by the
Engineer (and which was previously approved by the Owner) which the Contractor
has executed during the preceding month and no final or interim claim for payment
for any such work or expense will be considered which has not been include the
required particulars.
The Contractor shall submit all claims (if any) to the Engineer in the following
manner stating:
a. The subject matter of the claim.
b. The contract clause number upon which the claim has been based and the
relationship to the subject matter.
c. Full details of the claim including, as the case may be, dates, quantities,
with evaluations and all supporting documentary evidence.
d. What remedial measures the Contractor has taken to reduce the effect of
such claim.
2. In addition to the provisions of the various clauses (of these conditions) implying
rejection of claims, the following reasons shall not be accepted by both the Owner
and/or the Engineer as a possible basis for the Contractors entitlement to
additional payment:
a. The disposal of fossils and antiquities discovered on the site.
b. Strengthening or protective measures to highways or bridges for the
movement of special loads.
c. Tests carried of any of the Special services of any independent laboratory.
d. The occurrence of any of the Special Expected Risks.
e. Extension of time for completion requested by the Contractor.
f. Errors in the data provided to the Contractor with Tender Documents.
g. Failure of the Contractor to inspect the Site before he submitted his tender.
h. Failure of the Contractor to obtain the required information as per the

provisions of Item 4 of Instructions to Tenderers.
i. Termination ordered by Engineer/Owner of any Subcontractor employed by

the Contractor due to failure of the Subcontractor.
j. The Contractor had not been allowed to use explosives.
k. Acceleration of progress of work.
l. Suspension of the Works ordered by government authorities, or ordered by

the Engineer due to:
i. Contractors own fault, or
ii. It is required for the safety of the Works or any part of it, or
iii. It is required for proper execution of the Works, or
iv. It is required for climatic conditions which may affect the safety or
quality of Works, or
v. Disruption of progress of work due to weather, terrain, availability of

labour, materials and equipment, or
vi. Disruption of progress due to Contractors own faults.
SECTION 11 PLANT, TEMPORARY WORKS AND MATERIALS
CLAUSE NO. 57 PLANT, TEMPORARY WORKS AND MATERIAL:
57.1 Plant, etc., Exclusive use for the Works; All constructional Plant, tools, equipment,
production workshops, Temporary Works and materials provided by the Contractor
shall, when brought on to the Site, be deemed to be exclusively intended for the
execution of the Works and the Contractor shall not remove the same or any part
thereof, except for the purpose of moving it from one part of the Site to another without
the consent, in writing, of the Engineer, which shall not be unreasonable withheld.
57.2 Removal of Plant etc.: Upon completion of the works the Contractor shall remove from
the Site all the Constructional Plant and Temporary works remaining thereon and any
unused materials provided by the Contractor.
57.3 Owner not liable for damage to plant, etc.: The Owner shall not at any time be labile for
the loss of or damage to any of the Constructional Plant, Temporary work or materials.
57.4 Re-export of Plant: In respect of any Constructional Plant which the Contractor shall
have imported for the purpose of the Works, the Owner may assist the Contractor,
where required (if he can offer any help) in procuring government consent to the re-
export of such plant by the Contractor upon the removal thereof as aforesaid.
57.5 Customs Clearance: The Contractor shall make his own arrangements for the
unloading of Constructional Plant materials etc. brought to Saudi Arabia and shall pay
all customs duty for all imports.
The Contractor shall be deemed to have included in his prices for the cost of all
customs and other import duties, harbour and port dues, wharfage, landing, pilotage
and any other dues and transport handling and demurrage charges and for the cost of
opening up letters of credit for all plant and materials entering Saudi Arabia for the
purpose of this Contract.
CLAUSE NO. 58 APPROVAL OF MATERIALS ETC., NOT IMPLIED:
58.1 The operation of Clause 57 hereof shall not be deemed to imply any approval by the
Engineer of the materials or other matters referred to therein nor shall it prevent the
rejection of any such materials at any time by the Engineer.
58.2 The Contractor shall be responsible for determining that all materials furnished for the
works meet all the requirements of the Contract. The Engineer may require the
Contractor to produce reasonable evidence that a material meets such requirements,
such as certified reports of past tests by qualified testing laboratories, reports of
studies by qualified expert, or other evidence which, in the opinion of the Engineer,
would lead to a reasonable certainty that any material used, or proposed to be used, in
the Works meets the requirements of the Contract. All such data shall be furnished at
the Contractors expense.
58.3 The Contractor shall, when so directed by the Engineer, deliver representative
samples for any material used or to be used in the Works to an independent testing
laboratory designated by the Engineer. The Contactor shall pay the cost of all tests if
the material is found not to meet the requirements of the Contract, otherwise the cost
shall be paid by the Owner. This provision shall not limit the Contractors responsibility
to pay for any specific testing otherwise required under the Contract.
58.4 In all cases in which a manufacturers name, trade name or other proprietary
designation is used in connection with materials or articles to be furnished under this
Contract, whether or not the phrase or equal is used after such name, the Contractor
shall furnish the product of the name manufacturer without substitution, unless a
written request for a substitute has been submitted by the Contractor and approved in
writing by the Engineer.
58.5 All materials submitted by the Contractor are deemed to be in full accordance with the
Contract Specifications unless specifically noted otherwise by the Contactor. However,
if the Contractor proposes to use a material which, while suitable for the intended use,
deviates in any way from the detailed requirements of the Contract, he shall inform the
Engineer in writing of the nature of such deviation at the time the material is submitted
for approval and shall request written approval of the deviation from the Contract
requirements.
58.6 In requesting approval of deviations or substitutions, the Contractor shall provide, upon
request, evidence leading to a reasonable certainty that the proposed substitution or
deviation will provide a quality of result at least equal to that otherwise attainable. If, in
the opinion of the Engineer, the evidence presented by the Contractor does not
provide a sufficient basis for such reasonable certainty, the Engineer may reject such
substitution or deviation without further investigation.
58.7 Any additional costs, or any loss or damage arising from the substitution of any
materials or any method for these originally specified shall borne by the Contractor,
notwithstanding approval or acceptance of such substitution by the Owner or the
Engineer, unless substitution was made at the written request of the Owner or the
Engineer.
CLAUSE NO. 59 CONTRACTORS LIABILITY FOR BORROW PITS:
The Contactor shall determine for himself the availability of material and the amount and type
of equipment and work necessary to produce, haul and place the materials necessary for the
work. The Contractor shall, at his own cost, make all necessary arrangements for the testing
and procuring of materials and for road haulage from the sources to the work Site. Land from
which materials has been removed shall be left in a neat and presentable condition upon
completion of the Work.
SECTION 12 MEASUREMENT
CLAUSE NO. 60 QUANTITIES:
The quantities set out in the Bills of Quantities are the estimated quantities. They are not
taken as the actual and real quantities of the Works to be executed. The lump sum price of
this Contract shall cover the execution by the Contractor of all works contained in the contract
documents and any quantities required for the said execution even if it is more than the
quantities of the Contractors Bills.
Monthly payments will be done according to executed quantities till the lump sum price of the
Contract is reached.
CLAUSE NO. 61 WORKS TO BE MEASURED:
61.1 The Engineer shall ascertain and determine by measurement the value of monthly
executed works in accordance with the Contract for the preparation of interim payment
certificates. At completion, the final account of the executed works shall not be
subjected to measurement and it shall be identical to the Contract lump sum price as
adjusted due to increase or decrease in the scope of work and/or provisional items of
works which were previously approved/ordered by the Owner and as per the
provisions of Clause 63 or these Conditions.
61.2 The Engineer shall, when he requires any part of the works to be measured give notice
to the Contractor or his agent, who shall forthwith attend to assist the Engineer in
making such measurement and shall furnish all information and particulars required.
CLAUSE NO. 62 METHOD OF MEASUREMENT:
62.1 The completed works shall be measured net except where otherwise specifically
described in the Contract.
62.2 Except where it is specifically described, the metric system shall be followed for the
purpose of the measurement in this Contract.
62.3 During any field measurement (conducted as provided in Clause 61 of these

conditions) of any item of executed works, if it is found to be exceeding in its
dimensions and measurements, the dimensions and measurements indicated in the
Contract Specifications and Drawings, and if the Engineer did not require the
Contractor to pull it down and reconstruct it to the dimensions and measurements
required in the Contract Specifications and Drawings then, the Contractor shall bear
the value of the excess and he shall not be entitled to any compensation.
The Engineer, (for the purpose of determining the value of such item in the monthly
payment certificate) shall certify the quantity based on the dimensions and
measurements indicated on the Contract Drawings and Specifications.
SECTION 13 PAYMENTS AND CERTIFICATES
CLAUSE NO. 63 METHOD OF PAYMENT:
63.1 Advance Payment: The Owner may pay to the Contractor an advance payment in the
amount of Five percent (5%) of the Contract value after the official handover of the Site
to the Contractor and after the Owner receives from the Contractor a Bank Guarantee
equal to the same value (i.e. 5% of the Contract value), issued by a SAMA approved
Bank acceptable to the Owner and after the signature of the contract agreement.
Advance payment to be pain within 30 days of the contractor being entitled.
The Bank Guarantee shall be irrecoverable, unconditional, simple on demand and

valid until the date of completion as specified in the Contract.
The Owner shall recover the advance payment (if it is paid to the Contractor) by
deducting from each interim payment (due to the Contractor) by the same percentage
(i.e. 5% percent).
63.2 Interim Payment Certificates:
1. The Contractor shall be paid on account on the basis of the progress of work
according to Interim Payment Certificates based on the work executed and
completed from the beginning of the Contract and until the end of each month. The
Contractor shall prepare and submit to the Engineer at the end of each moth
Monthly Statements on official forms consisting of one original and as many
copies as the Engineer requires, duly signed by the Contractors Agent. The
monthly statement shall be itemized in the same manner as the Contracts Bills of
Quantities. The monthly statements shall determine the amount of money which in
the opinion of the Contractor is due to him but in all cases it shall not be binding on
the Owner.
2. The Engineer, upon receiving the Contractors monthly statement shall perform
due technical and financial checking to make sure that the works contained in the
statement are in accordance with the Contract, true and complete (payment for
partially completed works shall not be allowed by the Owner). The Engineer shall
check the quantities contained in the statements to verify if they are accurate and
to compare them with field measurements. The Engineer shall review the prices
and unit rates used in the statement against those of the Contracts Bills of
Quantities and he shall check the statement arithmetically. The Engineer, while
performing the above mentioned duties and checking, is entitled to correct any
error he may discover in the Contractors statements. Then the Engineer shall
prepare an Interim Payment Certificate on an official form signed by him. This-
certificate shall determine to the concerned parties the certified fair amount of
money which in the opinion of the Engineer is due for payment, but it is not binding
on the Owner unless it is correct.
The Engineer shall send the Owner two original copies of the Interim payment
Certificate along with four copies of the Contractors monthly statement. The
period of review of the monthly statement by the Engineer shall not exceed 2
weeks from the date of its receipt by him.
3. The Owner, (upon receiving the Interim Payment Certificate) shall check it
arithmetically and shall make sure that it is according to the quantities and prices
mentioned in the Contract. Should the Owner discover any error, then he shall
make the required adjustment and shall notify the Engineer of the final adjusted
value, which should be paid to the Contractor after (30) days from the date at
which the Owner had received the Interim Payment Certificate from the Engineer.
4. The rates or prices of the (Interim Payment Certificate) shall be those of the
Contract priced Bills of Quantities and any other rates or prices agreed upon in
case of variations/additional works for which the Contract does not contain any
applicable similar work (as per the provisions of Clause 56 hereof).
5. No payment shall be made for materials brought on Site.
6. The Contractor shall be paid monthly (on the certificate of the Engineer) the
amount due to him for the works completed.
The value of completed works from the beginning of the Contract until the end f
each month shall be subjected to the following deductions:
a. Five (5%) percent of the value of measured works retained as guarantee for
good performance, and
b. Five (5%) percent of the value of measured works for the repayment of the
advance payment, and
c. The total sum paid for previous payment certificates, and
d. Any other deductions for contra charges recoverable from the Contractor.
7. The Engineer may be any certificate makes any correction or modification to any
previous certificate which shall have been issued by him and paid by the Owner.
8. The Engineer and/or the Owner shall have the power to withhold any certificate or
part of any certificate if the Works or any part thereof is not being carried out to
their satisfaction or for any other reason provided for in the Contract.
9. Paying the net amount of any payment certificate shall not imply or be considered
as an acceptance or approval of the work contained in the said certificate (as per
the provisions of Clause 64 of these Conditions).
10. The value of retention money which shall not be less than 5% of the Contract price
shall only be paid after the issuance of the final handover certificate of the works
stipulated in this contract and after the submission by the Contactor of a Zakat
certificate stating that he had paid the taxes and Zakat due by him to the Zakat and
taxes department.
The Owner may however, release the retention payment to the Contractor after the
initial handover with the following conditions:
a. Submission by the Contractor of a Bank Guarantee of value equal to the

retention money and valid until the end of maintenance period. Such guarantee
shall be irrecoverable, unconditional and issued by a SAMA approved bank.
b. Submission by the Contractor of all As-built drawings and O & M manuals

within a period of not exceeding one month from the date of the initial handover
certificate.
Under no circumstances shall the Contractors submission of As-built drawings

and O & M manuals be delayed beyond two months from the date of initial
handover certificate.
11. All exchange differences or fluctuations costs and expenses of the respective
performance and other Guarantees, Bank charges, issuance premiums or cash
payment etc., incurred shall be borne by the Contractor.
12. All payments will be made in the currency of the Kingdom of Saudi Arabia (Saudi
Riyal).
63.3 Provisional sums:
1. Definition of Provisional Sums
Provisional Sum means a sum included in the Contract and so designated in the
Bill of Quantities for the execution of work or the supply of goods, materials or
services, or for contingencies, which sum may be used in whole or in part, or not at
all, at the direction and discretion of the Owner. The Final account shall include
only such amounts that have been actually spent in respect of the work, supply of
goods, materials or services to which Provisional Sums relate as the Owner shall
approve or determine in accordance with this Clause.
2. Use of Provisional Sums
In respect of every Provisional Sum the Owner shall have the right to order:
a. Work to be executed, including goods, materials or services to be supplied by
the Contractor. The final account shall include the value of such work executed
or such goods, materials or services supplied determined in accordance with
Sub-Clause 56.1 hereof.
b. Goods and materials to be purchased by the Contractor. The sum to be paid to

the Contractor therefore shall be determined and paid in accordance with Sub-
Clause 56.1 hereof and shall be included in the final account.
63.4 Final Account: Ten days from the date of initial handover certificate, the Engineer
shall submit to the Owner the final account of the executed works signed by the
Contractor and the Engineer. This account shall be equal to the lump sum value of the
Contract or to the adjusted value after adding to the lump sum value, the value of any
executed additional and/or provisional item of work ordered by the Owner or after
deducting the value of works cancelled by the Owner (whatever the case may be).
The final account shall include also any amount paid to the Contractor from the
Provisional sum items mentioned in the Contracts Bills of Quantities as mentioned in
Clause 63.3 above.
CLAUSE NO. 64 APPROVAL ONLY BY FINAL HANDOVER CERTIFICATE
No certificate other than the final handover certificate referred to in Clause 66 hereof shall
be:
1. Deemed to constitute approval of any work or any other matter in respect of

which the other certificate is issued, or
2. shall be taken as an admission of the due performance of the Contract or any

part thereof or of the accuracy of any claim or demand made by the Contractor
or of additional or varied work nor shall any other certificate conclude or
prejudice any of the powers of the Engineer.
CLAUSE NO. 65 THE INITIAL HANDOVER PROCESS
65.1 On completion of the Works, the Contractor (after clearing away and removing from
the Site all Constructional Plant, materials, soils and rubbish and leaving the site in a
workmanlike condition) shall (in writing) request the Engineer to specify the date of
initial handover (Copy of Contractors request shall be sent by the Contractor to the
Owner) provided that:
a. The works shall, in the opinion of the Engineer, have reached a state of
substantial completion whereby, aside from minor works and snags, the works
are ready for the beneficial utilization by the Owner for the purpose for which
they are intended.
b. The Contractor shall, with his request, have undertaken to complete all
outstanding works, deficiencies and defects within a period of one month from
the first inspection by the initial handover committee as hereinafter referred.
c. The works shall have passed any final test that may be prescribed by the
Contract saving such tests to be carried out during the process of initial
handover.
65.2 Should any of the above provisions (a. through c. inclusive of Clause 65.1) not
be satisfied, then the Engineer shall reject the Contractors request for initial
Handover. Otherwise, the Engineer shall, within thirty days of the Contractors
request, specify (in writing) and notify both the Owner and the Contractor of the
date at which the initial handover inspection and tests shall start, and shall
convene a meeting of a committee upon the site on the date so notified. The
committee (hereinafter referred to as the initial handover committee) shall
consist of the following:
OWNER - One Representative

ENGINEER - One Representative
CONTRACTOR - One Representative
The Contractor shall (within his aforementioned request) nominate his representative
to serve upon the initial handover committee and before the date set for the meeting
the Engineer will inform the Contractor and the Owner (in writing) of the members of
the committee, and he will prepare (in consultation with the Owner) a procedure for the
committee to follow and a programme of tests to be carried out (in the presence of the
members of the committee) designed to demonstrate that in all respects the Works
conform with the standards of quality specified by the Contract, within any permitted
tolerances, and will give notice of the aforementioned procedures and programme to
the Contractor who shall provide on the Site at his own expense all necessary
apparatus and facilities for such tests.
The Engineer will prepare a list of any defects, deficiencies and incomplete works
known to him on the date notified.
The initial handover committee will (on the date appointed) examine the Works,
witness the carrying out by the Engineer of the programme of tests and will add to the
Engineers list any additional defects, deficiencies and incomplete items of work. Then
the Engineer will prepare a report for all members of the committee to sign. The report
will show the findings of the committee along with the aforementioned consolidated list.
If the Contractor does not attend the meeting and the initial handover process, then,
the Engineer will note his absence in the report. In the event of any dispute arising
(during the preparation of the consolidated list) as to the Contractors responsibilities
for any defects, deficiency and incomplete works the other two members of the
committee representing the Owner and the Engineer will decide the extent of such
responsibilities.
65.3 During the initial handover process if it is found that defects, deficiencies, and
uncompleted works due to failure of the Contractor prevents the initial handover
process from reaching an acceptable result to the Owners Representative, then, the
Owners Representative shall postpone the initial handover process and the Engineer
shall ask the Contractor to correct, repair complete and make good the outstanding
items. The Contractor shall make the same at his own expense and upon the
completion, he shall repeat the aforementioned procedures. The committee will make
further examination of the Works and may require the repetition of any tests for which
unacceptable results were previously obtained provided that no defects, deficiencies or
uncompleted works remain including the making good (at the expense of the
Contractor) the effects of sampling for the purpose of the aforementioned testing and
thus, if the Owner and the Engineer are satisfied, the Owner will order the Engineer in
writing to issue the initial handover certificate. The Engineer (upon receiving the
Owners written instruction) will issue the certificate of initial handover to the Contractor
and the Owner after it is signed by the Engineer, the Owner and the Contractor.
65.4 During the initial handover process, if it was found that defects and deficiencies are not
due to failure of Contractor, provided that no defects, deficiencies or uncompleted
works remains in the Contractors works and if the Owner and the Engineer are
satisfied with the Contractors works, then the Owner is entitled to either one of the
following:
1. The Owner may relieve the Contractor from correcting the defects not
attributable to failure of Contractor and order the Engineer to issue the
certificate of initial handover in the manner prescribed in Sub-Clause 65.3 of
these conditions, or
2. The Owner may ask the Contractor to make good and repair the defects and
deficiencies which were found by the committee as not attributable to failure of
Contractor. The Contractor should repair and make good the same at the
expense of the Owner. At the same time the Owner will order the Engineer to
prepare the certificate of initial handover effective from the date of ordering the
Contractor to perform repair works.
This certificate shall be kept in the custody of the Engineer who will release it to
the Contractor and the Owner after repair works are completed, inspected and
approved by the committee and after it is signed by the Contractor, the
Engineer and the Owner.
65.5 The maintenance period shall be deemed to have commenced from the date of the
certificate of initial handover and the Contractors liability for liquidated damages shall
apply to the period of any delay between the date of the initial handover certificate and
the date specified in the Contract for completion of Works (or any other amended date
if any extension of time was granted as per the provisions of the Contract).
65.6 If the Contractor fail to do any repairs or to complete any of the defects, deficiencies or
incomplete works as provided in this Clause No. 65, then, the Owner will be entitled to
employ other persons to carry out the same at the liability and the cost of the
Contractor. The Owner shall deduct the cost from any money due to the Contractor.
65.7 Initial handover in stages for sections of the Works shall not be allowed (i.e. the initial
handover shall be in one stage for the whole of Contracts Works) unless requested
otherwise (in writing) by the Owner.
CLAUSE NO. 66 FINAL HANDOVER PROCESS
66.1 Procedure:
1. Well before the expiration date of the maintenance period, the Contractor will
send a written notice to the Engineer and the Owner in order to fix a date for
carrying out the inspection for the final handover of the Works.
The Engineer in consultation with the Owner will fix a date for the Contractor.
At the fixed date, representatives of the Owner, Engineer, and Contractor shall
inspect the work.
2. If during inspection, defects, imperfections or faults (other than those

attributable to fair wear and tear) are discovered, the final handover certificate
will be postponed and the maintenance period will be extended until the repair
of the defects by the Contractor are completed within a period of time
determined by the Engineer.
a. If the Contractor completed the requested repair to the satisfaction of

the Engineer the final handover certificate shall be issued stating that
the Works have been completed and maintained to the satisfaction of
the Engineer.
b. If the Contractor shall fail to do such work within the time required by
the Engineer, the Owner shall be entitled to employ other persons to
carry out the same work at the liability and cost of the Contractor. The
Owner shall deduct the value of the works from the retention money, or
any other monies due, or about to be due, to the Contractor, or the
Bank Guarantee.
3. By the certificate of final handover, the Contractor shall collect his Performance
Bank Guarantee (from the Owner) after paying any amount due to the Owner
(if any).
66.2 Cessation of Owners liability: The Owner after issuing the final handover certificate
shall not be liable to the Contractor for any matter or thing arising out of or in
connection with the Contract.
SECTION 14 REMEDIES AND POWERS
CLAUSE NO. 67 DEFAULT OF CONTRACTOR AND FORFEITURE
67.1 Procedure:
1. The Owner may, after giving 14 days noticed in writing to the Contractor, enter
upon the Site and the Works and expel the Contractor there from and withdraw the
Works from the Contractor without thereby voided the Contract or releasing the
Contractor from any of his obligations or liabilities under the Contract or affecting
the rights and powers conferred on the Owner or the Engineer by the Contract. The
Owner shall expel the Contractor for any of the following reasons:
a. If the Contractor shall become bankrupt.

b. If he has a receiving order made against him.
c. If he shall present his petition in bankruptcy.
d. If he shall make an arrangement with or assignment in favour of his
creditors.
e. If he shall agree to carry out the Contract under a committee of
inspection of his creditors.
f. If he being a corporation shall go into liquidation.
g. If he shall assign the Contract without first obtaining the consent of the
Owner in writing.
h. If he shall have a confiscation levied on his properties.
i. If the Contractor, being a partnership of Contractors, has been
dissolved and the partnership did not last for the whole duration of the
Contract.
j. If the Engineer shall certify in writing to the Owner that in his opinion the
Contractor:
i. has abandoned the Contract or withdrawn from the work or

committed any breach of Contract, or
ii. without reasonable excuse (acceptable to the Engineer) has

failed to commence the Works or has failed to proceed with the
Works with due diligence or in accordance with the programme
so that it is apparent to the Engineer that he will not be able to
complete the Works at the specified date or without an excuse
(which the Engineer considers reasonable) has suspended
progress of the Works for a period of 15 days, or
iii. has failed to remove materials from the Site or to pull down and
replace work for 28 days after receiving from the Engineer
written notice that the said materials or work had been
condemned and rejected by the Engineer under these
conditions, or
iv. despite previous written warnings by the Engineer, is not

executing the Works in accordance with the Contract or is
persistently or flagrantly neglecting to carry out his obligations
under the Contract, or
v. has to the detriment of good workmanship or in defiance of the

Engineers instructions to the contrary sub-let any part of the
Contract, or
vi. has failed to maintain at all times on the Works competent

Supervisory Agents, Engineers, Foremen or Surveyors, or
vii. has failed to employ on the Works leading hands and tradesmen
who in the opinion of the Engineer are skilled in their respective
trades, or
viii. has given promises or offered any bribes, loans or gratuities to a

Government official or employee connected with the Works.
The Owner shall follow at his absolute discretion one of the following
alternatives at the Contractors cost:
I. Complete the works himself.
II. Employ any other contractor to complete the works.
67.2 If one of the alternatives above comes into force, the Owner or such other Contractor
will be entitled to use the Constructional plant, the Temporary Works and materials
which have been deemed to be reserved for the execution and completion of the
Works under the provisions of the Contract, without paying any compensation to the
expelled Contractor and the Owner will not be responsible for any damage resulting
from its use.
The Owner will be entitled to liquidated damages from the Contractor for losses
resulting from the withdrawal of Works from the Contractor and if the amount of the
Bank Guarantee does not cover the losses and the damages, the Owner shall, at any
time, sell any of the said Constructional Plant, Temporary Works and unused materials
or apply the proceeds of such a sale in or towards the satisfaction of any sums due or
which may become duet to him from the Contractor under the Contract.
The Contractor shall bear all claims and costs of the Owner for any damages and
expenses due to the above mentioned, and in order to complete the work, in addition
to 10% of the value of the Works that he failed to execute as Owners administration
charges.
67.3 After having settled all the financial matters between the Owner and the Contractor,
the Contractor will be entitled to remove his equipment and materials from the Site. (if
the Owner has not sold all or some of them as aforementioned).
67.4 Valuation at date of forfeiture: After the Owner expels the Contractor and occupies the
Site himself, a joint committee from the Engineer and the Owner shall be formed
immediately. The committee shall conduct an initial inspection of the Works to
determine the value of work executed up to the date of expulsion. The value of any
unused or partly used materials, the value of any Temporary Works performed up to
date and an inventory for the Constructional Plant on site shall be listed. This
information shall be recorded and minutes taken.
Furthermore, the committee shall request the Contractor (via registered mail) to attend
a mutual inspection of the Site on a fixed date. Payment for unused material should
only be considered if, in the opinion of the Engineer, they are stored correctly, in
accordance with good practice, in a safe and secure position on the site of the works
and the timing of deliveries is in accordance with that considered appropriate, by the
Engineer, for scheduled incorporation in the work.
The committee with the Contactor shall review on Site the minutes of the initial
inspection of the committee and make the agreed adjustment (if any) and a final
minute shall be signed by the attendees.
If the Contractor fails to attend at the fixed date for the mutual inspection, then the
minutes of the initial inspection of the committee shall be sent to him via registered
mail.
67.5 Payment after forfeiture: If the Owner shall enter the Site and expel the Contractor,
then he shall not be liable to pay to the Contractor any money until the Owners costs
and damages have been certified by the Engineer which could not be determined
before the expiration of the period of maintenance. The Owners damages will include
the costs of delay, the escalation of labour and material prices, the costs of obtaining
new tenders and the higher prices likely to be charged by another Contactor.
After the aforementioned costs and damages are determined by the Engineer, the
Contactor shall be entitled to receive only such sum or sums (if any) as the Engineer
may certify would have been due to him upon due completion after deducting the said
amounts due to the Owner. If such amounts shall exceed the sum which would have
been payable to the Contractor on due completion, then the Contractor shall (upon
demand) pay to the Owner the amount of such excess and it shall be deemed a debt
due by the Contractor to the Owner and shall be recoverable accordingly.
CLAUSE NO. 68 URGENT REPAIRS:
If by reason of any accident or failure or other event occurring to, or in connection with, the
Works or any part thereof either during the execution of the Works or during the period of
maintenance any remedial or other work or repair shall in the opinion of the Engineer be
urgently necessary and the Contractor is unable or unwilling at once to do such work or repair
the Owner may with his own or other workmen do such work or repair as the Engineer may
consider necessary. If the work or repair so done by the Owner is work (which in the opinion
of the Engineer) the Contactor was liable to do at his own expense under the Contract all
costs and charges properly incurred by the Owner in so doing shall on demand be paid by the
Contactor to the Owner or may be deducted by the Owner from any monies due or which may
become due to the Contactor.
SECTION 15 SPECIAL RISKS
CLAUSE NO. 69 SPECIAL RISKS:
69.1 Definition: The Special Risks in this Contract are as specified in Sub-clause 23.2 of
these conditions.
69.2 No Liability: The Contractor and the Owner shall be under no liability whatsoever by
way of indemnity or otherwise for or in respect of destruction of or damages to the
Works (save to work condemned under the provision of Clause 43 hereof prior to the
occurrence of any special risk hereinafter mentioned) or Temporary Works, or to the
property whether of the Owner, Contractor or third parties, or in respect of injury or
loss of life is the consequence of any special risk.
If the Works are destroyed or damaged by reason of any of the said special risks, the
Owner shall compensate the Contractor for replacing and making good any such
works insofar as may be required by the Owner necessary for the completion of the
works on the basis of rates and prices provided in the contract.
Any destruction or damage or injury or loss of life caused by an explosion or impact

wherever and however occurring of any time, bomb, shell, grenade or war projectile,
missile, munitions or explosive of war shall be deemed to be a consequence of the
said special risks and be treated as such unless it occurs due to, in the opinion of the
Engineer, default or an act or negligence of the Contractor of the Contractor or his
Subcontractors or their servants or employees.
If, during the currency of the Contact, a war is declared, the Contractor shall continue
to use his best endeavours to complete the execution of the Works. Providing that the
Owner shall be entitled at any time, after such outbreak or war, to terminate the
Contact by giving written notice to the Contractor and, upon such notice being given,
this Contract shall be considered terminated, except as to the rights of the parties
under this Clause and Clause No. 63 but without prejudice to the rights of either party
in respect of any antecedent break of the Contract.
CLAUSE NO. 70 PAYMENT IF CONTRACT TERMINATED:
If the Contract shall be terminated as aforesaid due to an outbreak of war the Contractor shall
be paid by the Owner (in so far as such amounts of items shall not have already been covered
by previous payments made to the Contractor) only for all work executed prior to the date of
termination at the rates and prices provided in the contract provided that the Owner shall be
entitled to be credited with any outstanding balances due from the Contractor for advances
and any sum which at the date of termination were recoverable by the Owner from the
Contractor under the terms of the Contract.
SECTION 16 SETTLEMENT OF DISPUTES
CLAUSE NO. 71 SETTLEMENT OF DISPUTES:
If any disputes or differences of any kind whatsoever shall arise between the Owner and the
Contractor, the following will take place:
(a) Work to proceed without any interruption.
(b) Disputes to be solved through discussion between the Owner, and the Contactor.
(c) If not solved, either party may go the Grievance Board of the Kingdom of Saudi
Arabia whose judgment will be final and binding on all parities.
CLAUSE NO. 72 PAYMENT IN EVENT OF FRUSTRATION:
If any circumstance outside the control of both parties arise after the Contract is made, so that
either party is prevented from fulfilling his Contractual obligations, or under the low governing
the Contract, the parties are released from further performance, then the sum payable by the
Owner to the Contractor in respect of the work executed shall be the same as that which
would have been payable under Clause 70 hereof. The Contractor shall forward to the Owner
all Drawings, documents and data received before the date of the Contract termination. The
Contractor shall not keep, sue, or publish any of the information that would be deemed
confidential.
SECTION 17 MISCELLANEOUS
CLAUSE NO. 73 NOTIFICATIONS:
All notices or written orders in respect of this Contract shall be delivered by hand against
receipt or be sent by the official and registered mail to one of the following addresses inside
the Kingdom:
For the Owner
DUR HOSPITALITY CO.
Post Box # 5500, Riyadh 11422
KSA
For the Contractor

Either party may change his address with 30 days prior written notice.
CLAUSE NO. 74 DEFAULT OF OWNER:
The Owner shall execute, on good faith all the terms of the Contractor and pay without delay
the amounts due to the Contractor (unless if the delay of payment is due to the Contractors
mistakes or defaults as provided for in the Contract).
CLAUSE NO. 75 TAXES AND DUTIES:
The Contractor shall pay all taxes due to him, in respect of this Contract, to the related
authority according to the regulations of the Kingdom.
If, any charges, additions or deductions to the taxes or the customs duties occur during the
validity period of the Contract, the Contractor shall bear the extra costs of such charges.
CLAUSE NO. 76 GUARANTEE FOR LATENT DEFECTS:
The Contractor shall be solely responsible for a period of ten years from the date of final
handover certificate for any collapses whether total or partial and their consequences that may
occur as a result of latent defects. The Contractor shall during the said period, guarantee the
Works executed by him as free of any latent defects in their materials, execution,
workmanship, which threatens the appearance or performance or strength or structural
sufficiency of the Works.
CLAUSE NO. 77 BOYCOTT OF ISRAEL:
77.1 The Contractor declares that he is aware that the Customs Imports Regulations and
Provisions of the Kingdom of Saudi Arabia are the regulations that must be applied to
the supply and shipping of any products or parts thereof to or from the Kingdom and
he also declares that he is specially aware that it is prohibited in accordance with these
regulations and provisions to import any products or parts thereof into the Kingdom:
1. If they originate from Israel.
2. If they were manufactured product or imported through companies incorporated
in accordance with Israel regulations.
3. If they were manufactured, produced or import through Israeli citizens or
persons resident in Israel.
77.2 The Owner reserves on account of the authority he has, the sole right in the final
choice of the Contractors proposals on transport, any companies performing services
within the Kingdom of Saudi Arabia, or on any goods or commodities of this Contract.
CLAUSE NO. 78 USE OF EXPLOSIVES:
The Contractor shall not be allowed to use explosive materials without him obtaining a written
permission by the authorities and by the Engineer, who will be certain that, before the
explosion, the Contractor meets all the regulations and the requirements concerning this
matter. If the Engineer will not give permission to the Contractor to sue explosive materials,
the Contractor will not claim against the Owner.
Should permission be granted for the Contractor to sue explosives, the Contactor shall
purchase these from licensed suppliers and shall store and use them in strict conformity with
Government regulations. Any destruction, damage, injury or loss of life caused by the
Contactors use of explosives for the execution of the Works shall not be deemed to be a
consequence of the Special Risks herein referred to in Clause 69 but it shall be deemed the
sole responsibility of the Contractor.
CLAUSE NO. 79 FINAL PLANS, AS BUILT DRAWINGS AND OPERATION AND
MAINTENANCE MANUALS:
The Contractor at his own expense, shall prepare and submit four copies (one of them a
reproducible copy i.e. Mylar) and one computerized set in the latest AutoCAD format of
complete sets of As-Built Drawings, and five bound copies of the operation and maintenance
manuals and one computerized set in the latest MS Word format (stored and indexed as
directed by the Engineer on CD) for the Works carried out in this contract to the Engineer for
his checking and to submit to Owner the drawings and manuals certified by him within 30 days
from the date of initial handover certificate.

General COnditions - Part II

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General COnditions - Part II

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Makarim Riyadh Hotel Expansion Project

Design and Built Services

SECTION 1 DEFINITIONS AND INTERPRETATIONS

CLAUSE NO. 1 DEFINITIONS

SECTION 2 - ENGINEER AND ENGINEERS REPRESENTATIVE

CLAUSE N O. 2 - ENGINEER DUTIES, POWERS AND AUTHORITIES

SECTION 3 - ASSIGNMENT AND SUBLETTING

CLAUSE NO. 3 - ASSIGNMENT

SECTION 4 - CONTRACT DOCUMENTS

SECTION 5 - GENERAL OBLIGATIONS

SECTION 7 - MATERIALS AND WORKMANSHIP

CLAUSE NO. 45 - COMMENCEMENT OF WORKS

SECTION 9 - MAINTENANCE AND DEFECTS

SECTION 10 - ALTERATIONS, ADDITIONS AND OMISSIONS

SECTION 11 - PLANT, TEMPORARY WORKS AND MATERIALS

SECTION 13 - PAYMENTS AND CERTIFICATES

SECTION 15 - SPECIAL RISKS

SECTION 16 - SETTLEMENT OF DISPUTES

1. Owner (First Party):

2. Contractor (Second Party);

8. Contract Price (Contract Value):

15. Month and Day:

18. Advance payment:

19. Performance Guarantee:

20. Official Handover:

21. Initial Handover:

22. Final Handover:

23. Maintenance Period:

25. Special Risks:

26. Special Conditions of the Contract:

29. Letter of Acceptance:

1.2 Singular and Plural:

1.3 Headings and Marginal Notes:

SECTION 2 ENGINEER AND ENGINEERS REPRESENTATIVE

CLAUSE NO. 2 ENGINEER DUTIES, POWERS AND AUTHORITIES

SECTION 3 ASSIGNMENT AND SUBLETTING

CLAUSE NO. 3 ASSIGNMENT:

CLAUSE NO. 4 SUBLETTING:

SECTION 4 CONTRACT DOCUMENTS

CLAUSE NO.5 THE SCOPE OF THE CONTRACT

5.1 The Contract scope consists of the following:

1. Construction, completion and maintenance of the Works.

2. Supply of workmen, materials, Constructional Plant and Temporary Works.

CLAUSE NO. 6 THE LANGUAGE OF THE CONTRACT

CLAUSE NO. 7 SUBSEQUENT LEGISLATION

CLAUSE NO. 8 DOCUMENTS MUTUALLY EXPLANATORY

8.1 The Contract consists of the following documents:

3. The Tendering Conditions and its Addenda (if any).

4. The Special Conditions of Contract.

5. The General Conditions of Contract.

7. The Specifications (Which is identical to Phase IV issued documents signed and

8. The Priced Bill of Quantities.

8.2 In the case of ambiguities or discrepancies between the Contract Documents,

CLAUSE NO. 9 CUSTODY OF DRAWINGS:

CLAUSE NO. 10 FURTHER DRAWINGS AND INSTRUCTIONS:

SECTION 5 GENERAL OBLIGATIONS

CLAUSE NO. 11 CONTRACTORS GENERAL RESPONSIBILITIES:

CLAUSE NO. 12 CONTRACT AGREEMENT:

CLAUSE NO. 13 PERFORMANCE GUARANTEE:

CLAUSE NO. 14 INSPECTION OF SITE:

CLAUSE NO. 15 SUFFICIENCY OF TENDER

CLAUSE NO. 16 WORKS TO BE EXECUTED TO THE SATISFACTION OF

16.2 The Contractor shall satisfy the following requirements:

CLAUSE NO. 17 PROGRAMME TO BE FURNISHED