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may
be used, in whole or in part, or not at all, at the direction of the Engineer, who shall consult
with
the Employer prior to the issue of an instruction to this expenditure.
The Contract Price shall include only such sums in respect of the work, supply or s
ervices to which
such Provisional Sums relate as the Engineer shall approve or determine in accordance
with this
Clause.
2.
Use of Provisional Sums
In respect of every Provisional Sum the Engineer shall have power to order:
A.
Work to be executed, including g
oods, materials or services to be supplied by the
Contractor. The Contract Price shall include, the value of such work executed and/or such
goods, materials or services supplied, determined in accordance with Clause 52 hereof.
B.
Work to be executed or goo
ds, materials, or services to be supplied by a nominated Sub
Contractor as hereinafter defined. The sum to be paid to the Contractor therefor shall be
determined and paid in accordance with Clause 59 (4) hereof.
C.
Goods and materials to be purchased by th
e Contractor. The sum to be paid to the
Contractor therefor shall be determined and paid in accordance with Clause 59 (4) hereof.
3.
Production of Documents
The Contractor shall when required by the Engineer, produce all quotations, invoices,
vouchers and
acc
ounts or receipts in connection with expenditure in respect of Provisional Sums.
Nominated Sub
Contractors
Clause Fifty
nine
1.
Definition of Nominated Subcontractors
All specialists, merchants, tradesmen and others executing any work or supplying any
goods,
materials, or services for which Provisional Sums are included in the Contract, who may
have been or
be nominated or selected or approved by the Employer or the Engineer, and all persons to
whom by
virtue of the provisions of the contract the Contractor i
s required to sublet any work shall in the
execution of such work or the supply of such goods, materials or services, be deemed to be
subcontractors employed by the Contractor and are referred to in this Contract as
"Nominated Sub
Contractors".
2.
Objection t
o Nomination by Nominated Subcontractors
The Contractor shall not be required by the Employer or the Engineer or be deemed to be
under any
obligation to employ any nominated Subcontractor against whom the Contractor may raise
reasonable
objection, or who s
hall decline to enter into a sub
contract with the Contractor containing provisions:
A.
That in respect of the work, goods, materials or services covered by the subcontract, the
nominated Subcontractor shall undertake towards the Contractor the like obliga
tions and
liabilities as are imposed on the Contractor towards the Employer by the terms of the
Contract and shall save harmless and indemnify the Contractor from and against the same
and from all claims, proceedings, damages, costs, charges and expenses w
hatsoever
arising out of or in connection therewith, or arising out of or in connection with any failure to
discharge such obligations or to meet such liabilities.
B.
That the nominated Subcontractor shall save harmless and indemnify the Contractor from
an
d against any negligence by the nominated Subcontractor, his agents, workmen and
servants and from and against any misuse by him or them of any Constructional Plant or
Temporary Works provided by the Contractor for the purposes of the Contract and from all
claims as aforesaid.
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3.
Express Provision on Design Requirements
If in connection with any Provisional Sum the services to be provided include any matter of
design or
specification of any part of the Permanent Works or of any equipment or plant to be incorpo
rated
therein, such requirements shall be expressly stated in the Contract and shall be included in
any
nominated Subcontract.
The nominated Sub
contract shall specify that the nominated Subcontractor providing such services
shall save harmless and indemni
fy the Contractor from and against the same and from all claims,
proceedings, damages, costs, charges and expenses whatsoever arising out of or in
connection with
any failure to discharge such obligations or to meet such liabilities.
4.
Payments to Nominated
Subcontractors
For all work executed or goods, materials, or services supplied by any nominated
Subcontractor,
there shall be included in the Contract Price:
A.
the actual price paid or due to be paid by the Contractor, on the direction of the Engineer,
an
d in accordance with the Subcontract;
B.
the sum, if any, entered in the Bill of Quantities, for labour supplied by the Contractor in
connection therewith, or if ordered by the Engineer pursuant to Clause 58 (2) B hereof, as
may be determined in accordance
with Clause 52 hereof;
C.
in respect of all other charges and profit, a sum being a percentage rate of the actual price
paid or due to be paid, calculated where provision has been made in the Bill of Quantities
for
a rate to be set against the relevant Pr
ovisional Sum, at the rate inserted by the Contractor
against that item. Only where no such provision has been made in the Bill of Quantities
shall
the Contractor insert a rate in the Appendix to the Tender.
5.
Certification of Payments to Nominated Sub
Contr
actors
Before issuing, under Clause 60 hereof, any certificate, which includes any payment in
respect of
work done or goods, materials or services supplied by any nominated Subcontractor, the
Engineer
shall be entitled to demand from the Contractor reasona
ble proof that all payments, less retentions,
included in previous certificates in respect of the work or goods, materials or services of
such
nominated Subcontractors have been paid or discharged by the Contractor, in default
whereof, unless
the Contracto
r shall
A.
inform the Engineer in writing that he has reasonable cause for withholding or refusing to
make payments and
B.
produce to the Engineer reasonable proof that he has so informed such nominated
Subcontractor in writing.
the Employer shall be entit
led to pay to such nominated Subcontractor direct, upon the
certificate of the Engineer, all payments, less retentions, provided for in the Subcontract,
which the Contractor has failed to make to such nominated Subcontractor and to deduct by
way of set
off
the amount so paid by the Employer from any sums due or which may become
due from the Employer to the Contractor.
Provided always that, where the Engineer has certified and the Employer has paid direct as
aforesaid, the Engineer shall in issuing any furth
er certificate in favour of the Contractor
deduct from the amount thereof the amount so paid direct as aforesaid, but shall not
withhold
or delay the issue of the certificate itself when due to be issued under the terms of the
Contract.
6.
Specification of Li
abilities of Nominated Subcontractors
In the event of a nominated Sub
Contractor, as hereinbefore defined, having undertaken towards the
Contractor in respect of the work executed, or the goods, materials or services supplied by
such
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nominated Subcontracto
r, any continuing obligation extending for a period exceeding that of the
Period of Maintenance under the Contract, the Contractor shall at any time, after the
expiration of the
Period of Maintenance, assign to the Employer, at the Employer's request and c
ost, the benefit of
such obligation for the remaining duration of such period.
Certificates and Payments
Clause Sixty
1.
Certificates and Payments
Unless otherwise provided, payments shall be made at monthly intervals in accordance with
the
conditions set
out below.
2.
Advance Payment Certificate
On signing the Form of Agreement and in exchange for the Performance Bond and a
separate
guarantee for the amount of the Advance Payment, the Contractor shall receive from the
Engineer an
Advance Payment Certificate f
or an amount equal to 10 per cent of the Contract Value, less any sum
for contingencies included in the Contract Value.
The guarantee for the full amount of the Advance Payment shall be from an insurance
company or
bank registered in the Sultanate of Oman.
The conditions of the guarantee shall bind the Guarantor to indemnify and pay to the
Employer any
part of the Advance Payment which remains not repaid by the Contractor to the Employer
and which
the Contractor has failed to repay in accordance with this s
ub
clause.
Any Advance Payment made by the Employer shall be recovered by the deduction from
each interim
certificate of 10 per cent of the estimated value of the Permanent Works, executed during
the period
to which the interim certificate applies, but so
that at the completion of the Works, the Contractor shall
have repaid the amount of the Advance Payment in full.
This guarantee shall be valid for twelve months or until the full recovery of the advance
payment
whichever is the later.
If; however, the adva
nce payment is recovered in full prior to the end of the twelve
month period, the
Contractor may make application to the Ministry of Finance for the release of the guarantee,
which
shall not be unreasonably withheld.
Where the Contract ends under Clause 63
or 65 hereof, the Employer may deduct the balance of the
Advance Payment outstanding from any monies due or which may become due to the
Contractor or
the Contractor shall upon demand pay to the Employer the amount of such balance and it
shall be
deemed a
debt due from the Contractor to the Employer and shall be recoverable accordingly from
the Contractor or from the Guarantor.
3.
Monthly Statements
The Contractor shall submit to the Engineer after the end of each month a statement, in the
form
approved by the
Engineer, showing:
—
A.
the estimated value in accordance with the Contract of the Permanent Work executed on
the
Site and forming part of the Works;
B.
a list of any goods or materials delivered to the Site for use but not yet incorporated in the
Permane
nt Works and their value. (Such goods or materials shall be protected against all
kinds of damage including deterioration to the approval of the Engineer);
C.
the estimated amounts to which the Contractor considers himself entitled in connection with
all
other matters for which provision is made under the Contract, including any Temporary
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FORM OF ADVANCE PAYMENT BOND
Ministry of Finance
P.O. Box 506
Muscat
Sultanate of Oman.
Advance Payment Bond No ............................
Whereas Messrs ......................................................................................................
........
(to be referred to hereinafter as Contractor) have been awarded a Contract dated for the
construction,
maintenance and completion of .........................................................................................
........................................ for an amount of RO .............. (Rials Omani ................................)
and in view of th
e fact that you shall pay to the Contractor an advance instalment of RO ...........,
equivalent to ........ % of the Value of the Contract, we, the undersigned
.......................................
............................................................................................................................. . whose
address is ..........................................................................................
. undertake by virtue of
this guarantee that we shall pay to you an amount not exceeding RO ........ upon your first
written
demand without reverting to the contractor or entertaining his objections.
It is understood that our liability towards you shall be red
uced, corresponding to the amounts refunded
to you by the Contractor as specified in the Certificates and Payments against the said
advance
payment.
The validity of this bond commences on ............ and ends on ............... or till the full
payment of
the advance insta
lment, whichever of the two dates fall later.
This bond shall be returned to us upon the conclusion of the period of its validity or upon the
fulfilment
our liability, whichever of the two materializes first.
Authorized Signatories
(To be issued by a bank
registered in the Sultanate)
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62
FORM OF PERFORMANCE BOND
Ministry of Finance
P.O. Box 506
Muscat
Sultanate of Oman.
Performance Bond No ..................
Whereas Messrs ................................................................................................................
(to be referred to hereinafter as Contractor)
have been awarded a Contract dated ............. for the
construction, maintenance and completion of
...........................................................................
.......................................................................................................................................
........................................................................ for an amount of RO ..................................
(Rials Omani ...............................................................
........................), we the undersigned
............................................................................................................... whose address is
.........................................................................................................hereby inform you that
by virtue of this bond we shall be liable to the government of the Sultanate of Oman
represented by
the Ministry
of Finance in Muscat in the sum of an amount of RO ........................ equivalent to
..........% of the Value of the Contract.
We undertake to pay the amount to your order without any restriction or condition upon your
first
written demand without reverting to the Contract
or or entertaining any objections from him, provided
such demand is received by us before .................................................................................
The validity of this bond commences on ...................... and ends on ............................ After
this
date, our liability shall cease automatically.
This bond
shall be returned to us upon the conclusion of the period of its validity or upon the fulfilment
our liability, whichever of the two materializes first.
Authorized Signatories
(To be issued by a bank registered in the Sultanate)