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(c) other payments to the Employer by the Contractor shall be made in the
currency in which the sum was expended by the Employer, or in such currency
as may be agreed by both Parties;
(d) if any amount payable by the Contractor to the Employer in a particular
currency exceeds the sum payable by the Employer to the Contractor in that
currency, the Employer may recover the balance of this amount from the sums
otherwise payable to the Contractor in other currencies; and
(e) if no rates of exchange are stated in the Appendix to Tender, they shall be those
prevailing on the Base Date and determined by the central bank of the Country.
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15.1
15
Termination by Employer
Notice to Correct If the Contractor fails to carry out any obligation under the Contract, the Engineer may
by notice require the Contractor to make good the failure and to remedy it within a
specified reasonable time.
15.2
Termination by Employer The Employer shall be entitled to terminate the Contract if the Contractor:
(a) fails to comply with Sub-Clause 4.2 [Performance Security] or with a notice
under Sub-Clause 15.1 [Notice to Correct],
(b) abandons the Works or otherwise plainly demonstrates the intention not to
continue performance of his obligations under the Contract,
(c) without reasonable excuse fails:
(i) to proceed with the Works in accordance with Clause 8
[Commencement, Delays and Suspension], or
(ii) to comply with a notice issued under Sub-Clause 7.5 [Rejection] or Sub-
Clause 7.6 [Remedial Work], within 28 days after receiving it,
(d) subcontracts the whole of the Works or assigns the Contract without the
required agreement,
(e) becomes bankrupt or insolvent, goes into liquidation, has a receiving or
administration order made against him, compounds with his creditors, or
carries on business under a receiver, trustee or manager for the benefit of his
creditors, or if any act is done or event occurs which (under applicable Laws)
has a similar effect to any of these acts or events, or
(f) gives or offers to give (directly or indirectly) to any person any bribe, gift, gratuity,
commission or other thing of value, as an inducement or reward:
(i) for doing or forbearing to do any action in relation to the Contract, or
(ii) for showing or forbearing to show favour or disfavour to any person in
relation to the Contract,
or if any of the Contractor’s Personnel, agents or Subcontractors gives or offers
to give (directly or indirectly) to any person any such inducement or reward as
is described in this sub-paragraph (f). However, lawful inducements and
rewards to Contractor’s Personnel shall not entitle termination.
In any of these events or circumstances, the Employer may, upon giving 14 days’
notice to the Contractor, terminate the Contract and expel the Contractor from the
Site. However, in the case of sub-paragraph (e) or (f), the Employer may by notice
terminate the Contract immediately.
General Conditions 47
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(iii) a cause listed in Sub-Clause 17.3 [Employer’s Risks], except to the
extent that cover is available at commercially reasonable terms.
18.4
Insurance for The Contractor shall effect and maintain insurance against liability for claims,
Contractor’s Personnel damages, losses and expenses (including legal fees and expenses) arising from injury,
sickness, disease or death of any person employed by the Contractor or any other of
the Contractor’s Personnel.
The Employer and the Engineer shall also be indemnified under the policy of
Licensed copy: scottwilson, Scott Wilson Holdings, 20/01/2010, Uncontrolled Copy, ®FIDIC
insurance, except that this insurance may exclude losses and claims to the extent
that they arise from any act or neglect of the Employer or of the Employer’s
Personnel.
The insurance shall be maintained in full force and effect during the whole time that
these personnel are assisting in the execution of the Works. For a Subcontractor’s
employees, the insurance may be effected by the Subcontractor, but the Contractor
shall be responsible for compliance with this Clause.
19
Force Majeure
19.1 In this Clause, “Force Majeure” means an exceptional event or circumstance:
Definition of Force
Majeure (a) which is beyond a Party’s control,
(b) which such Party could not reasonably have provided against before entering
into the Contract,
(c) which, having arisen, such Party could not reasonably have avoided or
overcome, and
(d) which is not substantially attributable to the other Party.
Force Majeure may include, but is not limited to, exceptional events or circumstances
of the kind listed below, so long as conditions (a) to (d) above are satisfied:
(i) war, hostilities (whether war be declared or not), invasion, act of foreign
enemies,
(ii) rebellion, terrorism, revolution, insurrection, military or usurped power, or
civil war,
(iii) riot, commotion, disorder, strike or lockout by persons other than the
Contractor’s Personnel and other employees of the Contractor and Sub-
contractors,
(iv) munitions of war, explosive materials, ionising radiation or contamination
by radio-activity, except as may be attributable to the Contractor’s use of
such munitions, explosives, radiation or radio-activity, and
(v) natural catastrophes such as earthquake, hurricane, typhoon or volcanic
activity.
19.2
Notice of Force Majeure If a Party is or will be prevented from performing any of its obligations under the
Contract by Force Majeure, then it shall give notice to the other Party of the event or
circumstances constituting the Force Majeure and shall specify the obligations, the
performance of which is or will be prevented. The notice shall be given within 14 days
after the Party became aware, or should have become aware, of the relevant event or
circumstance constituting Force Majeure.
56 Conditions of Contract for Construction
