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Youssef Essam (7sr)

The document outlines various contractor obligations and procedures regarding tests conducted after project completion. It discusses tests on completion that the contractor must perform, including pre-commissioning, commissioning, and trial operation tests. It also describes procedures for delayed or failed tests, retesting, and the consequences of failing tests on completion.

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0% found this document useful (0 votes)
37 views9 pages

Youssef Essam (7sr)

The document outlines various contractor obligations and procedures regarding tests conducted after project completion. It discusses tests on completion that the contractor must perform, including pre-commissioning, commissioning, and trial operation tests. It also describes procedures for delayed or failed tests, retesting, and the consequences of failing tests on completion.

Uploaded by

allaa.aymen.27
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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9 )Test on completion

Contractor’s Obligations :
The contractor is required to conduct Completion Tests in accordance with Clause
and Sub-Clause , after providing necessary documents .
The Contractor must inform the Employer within 21 days of the completion date
for each Tests on Completion, with tests typically being conducted within 14 days,
unless otherwise agreed upon by the Employer.
The Tests on Completion, unless otherwise specified in the Particular Conditions,
will be conducted in the following sequence:
1 - Pre-commissioning tests, including inspections and functional tests, are
necessary to ensure each plant item can safely proceed to the next stage.
2 - Commissioning tests must include operational tests to ensure the safe
operation of the Works or Section under all available conditions.
3 - The trial operation must demonstrate the reliability and compliance of the
Works or Section with the Contract.

The Contractor must inform the Employer during trial operation that the Works
are ready for further tests, including performance tests, to ensure compliance
with the Employer's requirements and Performance Guarantees.
The trial operation does not qualify as a taking-over under Clause 10, and any
product produced during the trial operation belongs to the Employer.
The Contractor must submit a certified report of the Tests on Completion to the
Employer after the Works or a Section pass each of the Tests, considering the
Employer's use of the Works.
Delayed Tests :
If the Employer delays Tests on Completion & the Sub-Clause apply. If the
Contractor delays Tests, the Employer can require them to complete them within
21 days. The Contractor must provide notice and schedule the tests. If the
Contractor fails to complete the tests within 21 days, the Employer can proceed
with the tests at the Contractor's risk and cost. The Tests are considered
completed in the Contractor's presence and the results are considered accurate.

Retesting :
If a section fails to pass Tests on Completion, Sub-Clause 7.5 [Rejection] applies,
and the Employer or Contractor may require repeated tests under the same
conditions.

Failure to Pass Tests on Completion :


If a Works or Section fails to pass the Tests on Completion under Sub-Clause, the
Employer can order further repetition, reject the Works or Section if it deprives
them of substantial benefit, have the same remedies as in Sub-Clause [Failure to
Remedy Defects], or issue a Taking-Over Certificate.
The Contractor must fulfill all obligations under the Contract and reduce the
Contract Price to cover the reduced value to the Employer. The Employer may
require the reduction to be agreed upon and paid before the Taking-Over
Certificate is issued or determined under Sub-Clause of the Employer's Claims and
Determinations.
15 ) Termination by Employer
Notice to Correct
The Employer can demand the Contractor to rectify any breach of the Contract within a
specified timeframe.

The Employer shall be entitled to terminate the Contract if the Contractor:


The contract may be terminated if the party fails to comply with sub-clauses,
abandons the works, fails to proceed with the works, subcontracts the entire work
without agreement, becomes bankrupt or insolvent, or engages in similar actions
under applicable laws.
The termination may result in a receiving or administration order against the
party.
The contractor is prohibited from giving or offering any inducement or reward to
any person for performing any action related to the contract or showing favor or
disfavour to any person, including their personnel, agents, or subcontractors,
unless lawful inducements and rewards are lawful.
The Employer can terminate the Contract with 14 days' notice, expel the
Contractor from the Site, and maintain all rights. The Contractor must deliver
required goods, documents, and design documents to the Employer, while
complying with instructions for subcontract assignment and safety of the Works.
After termination, the Employer can complete the Works and use the Contractor's
Goods, Contractor's Documents, and design documents. The Contractor must
remove the Equipment and Temporary Works at their own risk. If the Contractor
fails to pay, the Employer may sell the items to recover payment, with the
remaining proceeds paid to the Contractor.

Valuation at Date of Termination :


After termination notice, Employer must determine value of Works, Goods,
Contractor's Documents, and other sums due to Contractor for work executed in
accordance with Contract.
Payment after Termination :
After a termination notice, the Employer can proceed with their claims, withhold
payments until costs are established, and recover any losses, damages, and extra
costs incurred by the Employer. After recouping these costs, the Employer must
pay any remaining balance to the Contractor.

Employer’s Entitlement to Termination :


The Employer can terminate the Contract at any time by notifying the Contractor,
which will take effect 28 days after receiving notice or returning Performance
Security. Termination cannot be used to execute the Works or arrange for another
contractor. Contractor must follow Cessation of Work and Removal of Equipment.
16 ) Suspension and Termination by Contractor
Contractor’s Entitlement to Suspend Work :
If the employer fails to comply with financial arrangements or payment timings,
the contractor can suspend work or reduce the rate after 21 days' notice, without
prejudice to financing charges or termination rights. If evidence or payment is
received before termination, the contractor must resume normal work as soon as
possible.
If a contractor experiences delay or incurs costs due to work suspension, they
must inform the employer and be entitled to an extension of time and payment of
the cost plus reasonable profit, which will be added to the contract price.

Termination by Contractor :
The Contractor can terminate the Contract if the Contractor fails to receive
reasonable evidence within 42 days of giving notice about the Employer's
financial arrangements, fails to receive the due amount within 42 days of the
payment timing, fails to perform their obligations, fails to comply with the
Assignment, a prolonged suspension affects the entire Works, the Employer
becomes bankrupt or insolvent, goes into liquidation, or has a similar effect.
The Contractor can terminate the Contract with 14 days' notice to the Employer,
without affecting any other rights under the Contract or otherwise.
Cessation of Work and Removal of Contractor’s Equipment :
After receiving a termination notice, the contractor must cease all work except for
necessary safety measures, hand over payment for work, and remove all goods
from the site, except for safety reasons, and leave the site promptly.
Payment on Termination :
The employer must promptly return the Performance Security to the contractor
after termination, pay the contractor according to the Optional Termination,
Payment and Release clause, and cover any loss or damage.
11 ) Defects after taking over
Completion of Outstanding Work
and Remedying Defects
Completion of Outstanding Work
and Remedying Defects
Completion of Outstanding Work
and Remedying Defects
Completion of Outstanding Work and Remedying Defects :
The Contractor must complete outstanding work within the specified time or as
instructed by the Employer, and execute all work required to remedy defects or
damage, unless a notice is given by the Employer on or before the expiry date of
the Defects Notification Period .
If a defect or damage occurs during the DNP, the Employer must notify the
Contractor, who must then inspect, prepare a remedial proposal, and apply the
Sub-Clause of the Defects and Rejection.
Cost of Remedying Defects :
The contractor is responsible for completing outstanding work and resolving
defects if the work is due to the design of the works, non-compliance with the
contract, improper operation or maintenance, or failure to comply with other
obligations under the contract, at the risk and cost of the contractor.
If the Contractor suspects the work is due to another cause, they must inform the
Employer and their representative will proceed under Sub-Clause of the
Agreement or Determination to determine the cause. If the work is attributed to
other causes, Sub-Clause of the Variation by Instruction applies.
Extension of Defects Notification Period :
The Employer can extend the Delivery Notice Period (DNP) for the Works or a
Section if they cannot be used for intended purposes due to defects or damage.
However, the DNP cannot be extended more than two years after its expiry. If
delivery and erection of Plant and/or Materials were suspended, the Contractor's
obligations under this Clause will not apply to defects or damage occurring more
than two years after the DNP for the Works would otherwise have expired.
Failure to Remedy Defects :
If a contractor delays remedying defects or damage under Sub-Clause of
Completion of Outstanding Works and Remedying Defects, the Employer may fix
a date for remediation. A notice is given to the contractor, allowing them
reasonable time to address the issue. If the contractor fails to remedy by the
specified date, the Employer may take action.
The contractor is responsible for carrying out work or having it done at the
contractor's cost, but has no responsibility for the work. The employer is entitled
to payment for the costs incurred in remedying the defect or damage. If the
contractor accepts the work, the employer is entitled to payment of performance
damages or a reduction in the contract price, if there are no performance
guarantees.
The contract can be terminated immediately if a defect or damage deprives the
Employer of substantial benefit of the Works. The Employer is entitled to recover
all sums paid for the Works, financing charges, and costs incurred in dismantling,
clearing the Site, and returning plant and materials to the Contractor.
The Employer's discretion under sub-paragraph shall not affect any other rights
they may have under the Contract or otherwise.
Remedying of Defective Work off Site :
If a defect or damage in a plant cannot be resolved quickly, the contractor must
give a notice to the employer requesting consent to remove it for repair. The
notice should clearly identify the damaged plant, its location, transportation,
proposed inspections and testing, the expected duration before returning the
plant, and the planned reinstallation and retesting.
The Contractor must provide necessary details to the Employer, and upon their
consent, they can remove defective or damaged plant items from the site, with
the Employer requiring an increase in Performance Security.

Further Tests after


Remedying Defects
Further Tests after
Remedying Defects
Further Tests after Remedying Defects :
The Contractor must provide a Notice to the Employer within 7 days of resolving a
defect or damage within the contract. If the Employer does not respond within 14
days, the Employer may object to the proposed repeated testing or instruct the
necessary tests to demonstrate compliance with the contract. If the Contractor
fails to respond, the Employer may instruct the repeated tests within 14 days.
Repeated tests will follow previous terms, but at the Party's risk.
Right of Access after Taking Over :
The Contractor has access to all parts of the Works and records until 28 days after
the Performance Certificate is issued. To access any part of the Works, the
Contractor must request access by giving a Notice to the Employer, detailing the
reasons, preferred date, and reasonable time in advance. The Employer must
either confirm or propose alternative dates within 7 days, and failure to do so
results in consent.
The Contractor is entitled to additional costs due to unreasonable employer
delays in accessing works or records, subject to Sub-Clause of Claims For Payment
and/or EOT.

Contractor to Search :
The Contractor is required to search for defects under the Employer's direction
and must complete the search on the agreed date. If the defect is not remedied at
the Contractor's expense, they are entitled to payment of the cost plus profit. If
the Contractor fails to comply, the Employer's personnel may conduct the search.
If the defect is remedied at the Contractor's expense, the Employer is entitled to
payment.
Performance certificate :
The Contractor's obligations under the Contract are considered completed once
the Employer issues a Performance Certificate, indicating the date of fulfillment.
The Employer must issue a Performance Certificate to the Contractor within 28
days of the expiry of Defects Notification Periods, or as soon as the Contractor has
supplied all necessary documents and completed and tested the works in
accordance with the Contract.
The Employer must issue the Performance Certificate within 28 days, ensuring it is
issued on the expected date, and only the certificate signifies acceptance of the
works.
Unfulfilled Obligations :
After the Performance Certificate, parties are responsible for unperformed
obligations, with the Contract remaining in force.
Contractors cannot be held liable for defects or damage after two years, except in
legal cases or cases of fraud, negligence, or reckless misconduct.
Clearance of Site :
Following the Performance Certificate issue, the Contractor must remove
remaining equipment, surplus material, wreckage, rubbish, and Temporary Works
from the Site, reinstate affected areas, and leave the Site and Works in the
condition specified by the Employer.
If the Contractor fails to comply with sub-paragraph within 28 days of the
Performance Certificate issue, the Employer may sell or dispose of remaining
items or reinstate and clean the Site at the Contractor's cost, subject to Claims For
Payment and/or EOT.

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