Note
16/10/2025: Created.
Intro
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Contents
13.2 Instructions for Provisional Quantities, {Provisional Items} and Provisional Sums
33.14 Right {to of} Sub-Contractor to suspend the carrying out of the Sub-Contract Works
{34.1} Sub-Contractor to obtain guarantee from insurance company or bank
{34.2 Release if insurance company or bank)
{34.3 Employer’s remedy if Sub-Contractor fails to deliver bond}
{44 Contracts (Rights of Third Parties) Ordinance (Cap. 623)
Exclusion only applicable if expressly stated to be}
Articles of Agreement
{(1)} Whereas the Contractor wishes to have work carried out comprising:
{(2)} and whereas the Employer has had Tender Documents comprising:
{(3)} and whereas the Sub-Contractor has, based on the Tender Documents, made in the Form of Tender his calculation of the sum that he will require for carrying out the Sub-Contract Works by pricing the bills of quantities or Schedule of Quantities and Rates, as the case may be.
{(4)} and whereas the Architect, as instructed by the Employer, has nominated the Sub-Contractor under clause 29 of the Main Contract Conditions to carry out the Sub-Contract Works and the Sub-Contractor is to be employed by the Contractor as a Nominated Sub-Contractor.
{(5)} and whereas the Sub-Contractor has given both the Contractor and the Architect either:
{(6)} and whereas the Architect has given each party one copy of the Articles of Agreement, the Appendix, the Sub-Contract Conditions, the Sub-Contract Drawings, the Specification and the Sub-Contract Bills or a Schedule of Quantities and Rates, as the case may be, each signed by or on behalf of the parties.
{(7)} and whereas the Sub-Contractor has had the opportunity of inspecting a copy of the Main Contract except the Contractor’s rates and shall be deemed to have full knowledge of all the provisions of the Main Contract.
{(8)} and whereas the Sub-Contractor, if so required by the Sub-Contract, has given a sub-contractor warranty agreement to the Employer in the form set out in the Contract Bills or the Specification or, if not set out in either of those documents, in the form set out in Schedule 2 of the Sub-Contract Conditions.
(company seal to be impressed here if executed as a deed by a limited company)
{*delete Delete} as applicable.
The Sub-Contract General Conditions
Definitions
1.6 (1) {Contractor’s Contractors'} All Risks Insurance of the Works: insurance which provides cover against physical loss of or damage to the Works, temporary works and materials and goods, as described in clause 22 of the Main Contract Conditions.
Date for Possession of theSite: the date or dates for the possession of the whole or parts of the Site stated in the appendix to {clause 23.1 of} the Main Contract Conditions. <should be “in the appendix to the Main Contract Conditions under the reference to clause 23.1”>
Date of Substantial Completion: the date stated in the Substantial Completion Certificate for the Works or a Section, issued by the Architect under {clauses 17.1 and 17.2 of} the Main Contract.
Defects Rectification Certificate: a certificate issued by the Architect to the effect that all defects, shrinkages and other faults have been rectified in accordance with {clauses 17.4 and 17.5 of} the Main Contract.
Main Contract: the Main Contract between the Employer and the Contractor comprising the articles of agreement, appendix, the form of tender submitted by the Contractor, the Employer’s letter of acceptance of the Contractor’s tender and any correspondence between the Employer and the Contractor forming part of the Main Contract, {the Special Conditions, if any,} the Main Contract Conditions, the contract drawings, the specification, the contract bills or schedules of quantities and rates, as the case may be.
Section: a part of the Works for which a separate Completion Date is stated in the {Appendix appendix} to the Main Contract Conditions where the Main Contract provides for sectional completion of the Works or a part of the Sub-Contract Works being carried out as part of that Section.
Special Condition: a condition of contract expressly referred to as being a Special Condition of Sub-Contract{,} which adds to or amends the Sub-Contract Conditions and is annexed to the Sub-Contract Conditions.
Specialist Works: work directly connected with or ancillary to but not forming part of the Works{,} to be carried out by a Specialist Contractor.
Specification: the specification referred to in the second, sixth and eighth recitals of the Articles {of Agreement} which describes, without limitation, the types, standards and quality of the materials and goods to be used, the standard and quality of workmanship required, the manner in which work processes are to be carried out, the performance requirements and other matters and things relating to the construction of the Sub-Contract Works.
Variation: a change instructed by the Architect, through the Contractor, to the design, quality or quantity of the Sub-Contract Works including:
(i) an alteration to the type, standard or quality of any of the materials or goods comprising the Sub-Contract Works;
(ii) the addition, substitution or omission of work;
(iii) the removal from the Site of materials or goods and the demolition and removal of work except where provided for in the Contract or where the materials, goods or work are not in accordance with clause 8.1;
{and or} the imposition of an obligation or restriction instructed by the Architect regarding:
Tenders based on Sub-ContractBills or Schedules of Quantitiesand Rates
1.7 (1) If bills of quantities, referred to as the Sub-Contract Bills in the Articles, are included with the Tender Documents provided to the Sub-Contractor, the quality and quantity of the work included in the Sub-Contract Sum{,} shall{,} as provided <should be “Sum shall, as provided” > in clause 14, be deemed to be that which is set out in the Sub-Contract Bills.
All communications between the Architectand the Sub-Contractor to bethrough the Contractor
1.11 (2) Where the wording of the Sub-Contract {Conditions} implies a direct communication this is in the interests of brevity and is to be read as a communication between the Architect and the Sub-Contractor through or made known to the Contractor.
Parties to act reasonably {and expeditiously}
1.13 (1) The parties, the Architect and the Quantity Surveyor shall act reasonably and expeditiously in all matters under the Sub-Contract including, without limitation, giving or withholding consent, approval or agreement{,} valuing Variations and certifying.
Contractor's instructions
5.1 (3) Immediately after the Contractor receives an Architect's instruction that relates to the Sub-Contract Works{,} the Contractor shall issue a corresponding instruction to the Sub-Contractor including an instruction that requires a Variation.
Compliance with Contractor's instructions
5.3 (2) If the Sub-Contractor disagrees that the Contractor is empowered by the Sub-Contract Conditions to issue an instruction{,} he may within 7 days of receipt of that instruction require the disagreement to be resolved under clause 42.
The documents forming the Sub-Contract
6.1 (1) (e) the Sub-Contract Drawings, the Specification and the Sub-Contract Bills or {Schedules Schedule} of Quantities and Rates, as the case may be.
(2) The order of precedence of the documents forming the Sub-Contract shall be as listed in paragraphs (a) to (e) above {in descending order} and:
(a) for the purpose of adjusting the Sub-Contract Sum{,} the Sub-Contract Bills shall take precedence over the Sub-Contract Drawings and the Specification; but
(b) for all other purposes including carrying out the construction of and completing the Sub-Contract Works{,} the Sub-Contract Drawings and the Specification shall take precedence over the Sub-Contract Bills.
Further drawings, details, descriptive schedules and similar documents
6.3 (2) If in the Sub-Contractor’s opinion he requires more supplementary documentation than that provided by the Architect under clause 6.3(1){,} he shall submit a written request to the Architect through the Contractor specifying what further supplementary documentation he requires.
Return of drawings
6.6 The Sub-Contractor shall return to the Architect, through the Contractor, all drawings, specifications, details, descriptive schedules and {other} similar documents provided under clause 6, if required by the Architect to do so, either upon the issue of the Final Certificate or the final conclusion of any proceedings to which the Sub-Contractor is a party, whichever is later and the Sub-Contractor may take copies for his own records.
Submission of manuals and assignment of warranties
6.7 (1) The Sub-Contractor shall submit to the Contractor all the operation and maintenance manuals {prepared by or} received by the Sub-Contractor for the Sub-Contract Works.
Submission of as-built drawings
6.8 (2) Where the drawings referred to under clauses 6.2 and 6.3 have been issued electronically, the Sub-Contractor shall, if {so} required by the Contractor, provide the as-built drawings electronically.
Types, standards and quality
8.1 (3) (b) if the proposed alternative materials or goods are not of similar type and standard or comparable quality or price to those specified, and if the Contractor obtains the Architect’s approval{,} the Architect shall instruct a Variation to adjust the type, standard, quality or price.
Materials, goods, workmanship or work not inaccordance with Sub-Contract
8.3 (b) the repair or demolition, removal and reconstruction of {any} work which, in respect of materials, goods or workmanship, is not in accordance with clause 8;
Architect's authority to issueinstructions requiring a Variation
13.1 (1) (b) the Sub-Contractor has the right of reasonable objection to a Variation which imposes or changes an obligation or restriction on the Sub-Contractor regarding access to the Site, use of any part of the Site or limitation of working space or working hours and the Architect shall, upon receipt of the objection, either confirm or withdraw the instruction{,} and if the instruction is confirmed, the Sub-Contractor may refer the matter to arbitration under clause 42; and
Instructions for Provisional Quantities{, Provisional Items} and Provisional Sums
13.2 The Architect shall issue an instruction under clause 13.2 of the Main Contract Conditions through the Contractor for:
Valuation of Sub-Contractor’s work
13.3 (c) clause 13.{3 2}(b) of the Main Contract Conditions to expend a Provisional Sum included in the Sub-Contract,
Valuation rules
13.4 (1) Where the Valuation relates to the carrying out of:
(a) additional or substituted work which can be properly valued by measurement;
(b) work which is the subject of Provisional Quantities or Provisional Items; or
(c) work involved in the expenditure of a Provisional Sum,
the work shall be measured and shall be valued in accordance with the following rules: <should be indented to align with “(c)“>
(iii) where the work is not the same as or similar in character to any work priced in the Sub-Contract Bills{,} the work shall be valued at fair rates; and
(2) Where the Valuation relates to work which cannot be properly measured and valued under clause 13.4(1) the work may, with the prior consent that <should be “of“> the Contractor with the Architect’s approval, be carried out as daywork and provided that the Sub-Contractor:
(b) submits vouchers specifying the time spent daily carrying out the work, the workmens’ <should be “workmen’s“> names, the materials and goods and the plant and equipment employed to the Contractor for verification by the Architect within 14 days of the work being carried out,
(d) where there are no daywork rates in the Sub-Contract Bills, priced at:
(i) the labour rates contained in the record of Average Daily Wages of Workers Engaged in {Government Building and Public Sector} Construction Projects {as Reported by Main Contractors} published by the Census and Statistics Department of the Government of the Hong Kong Special Administrative Region {current at the date when for the month in which} the work is carried out;
(4) Where the Valuation does not relate to additional or substituted work or the omission of work but relates only to other matters not involving measured work such as the imposition of or change to an obligation or restriction and the rules in clauses 13.4(1), 13.4(2) or 13.4(3) cannot reasonably be applied{,} a fair valuation shall be made.
(5) An appropriate allowance shall be made in {any a} Valuation under clause 13.4 for any percentage adjustment made to the Sub-Contract Bills.
Variation necessitated by faultof Sub-Contractor
13.7 If and to the extent that {the issue of} an instruction requiring a Variation arose as a result of a breach of contract or other default by the Sub-Contractor or any person for whom the Sub-Contractor is responsible{,} the Quantity Surveyor shall take the effect of the breach or default into account in the Valuation of the Variation.
Quality and quantity of work includedin Sub-Contract Sum
14.1 The quality and quantity of the work included in the Sub-Contract Sum stated in Article 2 shall be deemed to be that which is set out in the Sub-Contract Bills which shall be read in conjunction with the Specification {and the Contract Drawings} to amplify and supplement the descriptions in the Sub-Contract Bills.
Standard Method of Measurementof Building Works
14.2 (2) Any departure from the Standard Method of Measurement of Building Works in measuring any work shall be specifically stated in the ‘preliminaries’ or ‘preambles’ sections of the Sub-Contract Bills {or in the descriptions of the applicable items in the Sub-Contract Bills} and the same method as used to measure that work shall be used for the measurement of any similar work that may be required to be measured and valued under clause 13.
Errors in Sub-Contract Bills
14.3 (1) An error in description or in quantity or {in} omission of <should be “quantity in or omission of”> an item from the Sub-Contract Bills shall not vitiate the Sub-Contract nor release the Sub-Contractor from any of his obligations or liabilities.
(2) The error in quantity or omission referred to in clause 14.3(1) shall be corrected and shall, for the sole purpose of adjusting the Sub-Contract Sum, be deemed to be a Variation required by the Architect and valued in accordance with the {Variation Valuation} rules under clause 13.4.
(3) An error in description of an item shall be corrected{,} and, if in <should be “corrected, and if, in”>the Quantity Surveyor’s opinion, the rate for that item in the Sub-Contract Bills is no longer fair by reason of that correction, the Quantity Surveyor shall fix a new rate that is fair to both parties and the Employer.
Adjustment of Sub-Contract Sum
15 (2) Subject to clause 14.3 the parties are deemed to have accepted any error whether of arithmetic or not in the calculation of the Sub-Contract Sum {named stated} in Article 2.
Substantial Completion of Sub-Contract Works to be completed by the Sub-Contract Completion Date
17.1 (3) If sectional completion of the Works is provided for in the Main Contract{,} the Architect is required to issue a separate Substantial Completion Certificate upon Substantial Completion of each Section and the whole of the Works and, in a similar manner, the Architect is required to issue a separate Substantial Completion Certificate for each Section and the whole of the Sub-Contract Works.
Rectifying defects
17.4 (1) The Sub-Contractor shall {at his own cost} rectify all defects, shrinkages, or other faults {(collectively "the defects” in clauses 17.4 to 17.7)} in the Sub-Contract Works which are identified during the Defects Liability Period of the Works, a Section or a Relevant Part stated in the appendix to the Main Contract Conditions and are caused either by materials, goods or workmanship which are not in accordance with clause 8, by natural causes or as a result of a Specified Peril occurring during the construction period prior to Substantial Completion.
(3) If the Sub-Contractor does not comply with the requirements of clause 17.4(2) and rectify the defects listed in the schedules of defects within a reasonable time{,} the provisions of clauses 5.3(3) and 5.3(4) shall apply.
(4) Where{,} under clause 17.3(5) of the Main Contract Conditions{,} the Architect has instructed the Contractor not to rectify some or all of the defects in the Works and a reduction has been made to the Main Contract contract sum for the defects that were not rectified, then to the extent that the reduction is relevant to the Sub-Contract Works{,} a proportional share shall be borne by the Sub-Contractor and may be deducted by the Contractor from any monies due or to become due to the Sub-Contractor or may be recoverable as a debt.
Partial possession
18 (2) If the Employer takes possession of a {part of the Works or a part of a Section under clause 18 of the Main Contract Conditions Relevant Part,} the Architect is required to issue a certificate to that effect:
(3) Substantial Completion of the Relevant Part {will shall} be deemed to have occurred on the Relevant Date and the following {will shall} take effect:
(a) the commencement of the Defects Liability Period {for that Relevant Part} and the rectification of defects under clause 17;
(c) the release of one-half of the Retention {relating to that Relevant Part} under clause 33.5; and
Sub-letting
19.2 (c) he submits a plan of his sub-sub-contracting arrangement giving the names of his key sub-sub-contractors with their scope of work and such other particulars as may be required by the Contractor. <should be “;”>
Employees' Compensation Insurance
21.1 (1) The Contractor {is required to shall} effect and maintain employees’ compensation insurance in compliance with the provisions of the {Employees Employees’} Compensation Ordinance in the joint names of {the Employer as the Principal,} the Contractor, his sub-contractors (including the Sub-Contractor) and their respective sub-contractors of all tiers, against all liabilities arising in respect of bodily injury to, disease contracted by or death of {the Contractor's or any sub-contractor's of all tiers} employees {of the Contractor or any sub-contractor of all tiers} arising out of and in the course of their employment on the Works or in connection with the Main Contract. <better use “the Works” because “Main Contract” may be interpretated to exclude “Sub-Contract”>
(2) The insurance cover {is to shall} be against the liabilities referred to in clause 21.1(1) of the Main Contract Conditions sustained during the period from the Commencement Date until the Defects Rectification Certificate for the whole of the Works has been issued and the Contractor has finally left the Site.
(3) As soon as the Sub-Contractor becomes aware of any workman or other person employed on the Sub-Contract Works or in connection with the Sub-Contract suffering any bodily injury, contracting a disease or dying{,} he shall notify the Contractor.
Third party liability insurance
21.2 (1) Either the Employer or the Contractor, whichever of them is the party responsible for effecting the Contractors' All Risks Insurance of the Works, {is required,} <missing “shall,”> unless otherwise stated in the Main Contract, {to} effect insurances in the joint names of the Employer, the Contractor, his sub-contractors (including the Sub-Contractor) and their respective sub-contractors of all tiers against all liabilities of the insured under the Main Contract or otherwise in respect of:
(b) injury or damage to real or personal property other than the Works insofar as the injury or damage arises out of, or in the course of, or by reason of the carrying out of the Works and whether arising on or off the Site, including injury or damage caused by any act or neglect of the Employer or any person for whom the Employer is responsible or by collapse, subsidence, heave, vibration, weakening or removal of support or lowering of ground water{,} due to any cause other than:
(ii) pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds; {or and}
(2) The insurance cover {will shall} be against the liabilities referred to in clause 21.2(1) of the Main Contract Conditions sustained during the period from the Commencement Date until the Defects Rectification Certificate for the whole of the Works has been issued and the Contractor has finally left the Site.
(3) The insurances {will shall} include:
(a) a cross liability clause to the effect that the insurances {will shall} cover the Employer, the Contractor, his sub-contractors (including the Sub-Contractor) and their sub-contractors of all tiers as separate insured; and
(4) The third party liability insurances against injury or death to any person and injury or damages <should be “damage”> to real or personal property under clause 21.2(1) of the Main Contract Conditions are each required to be effected with the limit of indemnity stated in the appendix to the Main Contract Conditions for any one occurrence or series of occurrences arising out of one event but unlimited in the aggregate amount for the period of the insurance.
The Contractors' All RisksInsurance of the Works
22.1 (1) The Contractors’ All Risks Insurance of the Works will be effected and maintained by either the Employer or the Contractor in the joint names of the Employer, the Contractor {and ,} his sub-contractors (including the Sub-Contractor) and their respective sub-contractors of all tiers and suppliers from the {Commencement Date commencement of the Works or the Date for Possession of the Site, whichever is earlier,} until 14 days after {the issue of} Substantial Completion {of Certificate for} the Works, {a Section or Relevant Part} <should not be deleted because the standard insurance policy does exclude substantially completed Section or Relevant Part> or 14 days after the determination of the employment of the Contractor, whether valid or not {whichever is earlier}.
Parties' obligations if lossor damage occurs
22.3 (1) In the event of loss or damage to work, materials or goods caused by a peril covered by the Contractors' All Risks Insurance of the Works{,} the parties’ obligations shall be as described in clauses 22.3(2) and (3).
Contractor's payment not morethan insurance proceeds
22.4 (1) The Contractor will not be entitled to any payment in respect of the replacement, repair or restoration of the loss or damage and the removal and disposal of debris other than the amount received under the Contractors’ All Risks Insurance of the Works {(less only any amount included for the professional fee as stated in clause 22.2(b) of the Main Contract Conditions)} unless and to the extent that the loss or damage was caused or contributed to by a breach of contract or other default by the Employer or any person for whom the Employer is responsible.
Commencement and completion of Sub-Contract Works
23.2 (2) If it is stated in the Appendix that the Sub-Contract Works and any Section are to be completed on or before the Sub-Contract Completion Date{,} the Sub-Contractor shall complete the Sub-Contract Works and any Section on or before the date stated in the Appendix as the Sub-Contract Completion Date.
(3) If it is stated in the Appendix that the Sub-Contract Works are to be carried out and completed at the same time as the Works{,} the Sub-Contract Works shall be carried out to suit the progress of the Works and shall be completed sufficiently far in advance of the Works to allow adequate time for the Contractor to complete the Works or any Section on or before the Completion Date of the Works or that Section.
Postponement or suspension
23.3 The Architect {is authorised to may} issue instructions regarding:
(b) the postponement of the Commencement Date of the whole or a part of the Works; {and or}
Failure of Sub-Contractor to complete on Sub-Contract Completion Date
24.1 (1) If under clause 23.2(2) the Sub-Contract requires the Sub-Contract Works or any Section to be completed on or before the Sub-Contract Completion Date and the Sub-Contractor fails to complete the Sub-Contract Work <should be “Works”> or any Section on or before that date{,} the Contractor shall notify the Architect of this failure and issue a copy of the notification to the Sub-Contractor.
(2) If the Architect issues a certificate to that effect to the Contractor under clause 29.11 of the Main Contract Conditions{,} the certificate shall confirm that all extensions of time have been addressed in accordance with clause 25 and state the date by which the Sub-Contract Works or Section ought to have been completed.
Failure of Sub-Contractor to complete on time where the Sub-Contract Works are to be completed at the same time as the Works
24.2 If under clause 23.2(3) the Sub-Contract requires the Sub-Contract Works to be carried out and completed at the same time as the Works and the Sub-Contractor, having been notified by the Contractor of any revised Completion Date for the Works, fails to complete the Sub-Contract Works or any Section in accordance with clause 23.2(3){,} the Sub-Contractor shall pay or allow the Contractor a sum equivalent to any loss and/or expense and/or liquidated damages incurred by the Contractor due to the failure of the Sub-Contractor to complete on time.
Sub-Contractor's first notice of delay
25.1 (1) If under clause 23.2(2) the Sub-Contract requires the Sub-Contract Works to be completed on or before the Sub-Contract Completion Date, as soon as practicable, but in any case within 28 days of the commencement of an event likely to cause delay to the completion of the Sub-Contract Works or a Section beyond the Sub-Contract Completion Date becoming apparent{,} the Sub-Contractor shall give notice (referred to in clause 25 as the ‘first notice’) to the Contractor.
(3) The listed events are as follows:
(b) inclement weather conditions, being rainfall in excess of twenty millimeters in a twenty-four hour period (midnight to midnight) as recorded by the Hong Kong Observatory station nearest to the Site, and/or {its their} consequences adversely affecting the progress of the Sub-Contract Works;
(j) (iii)
- the postponement or suspension was caused by a breach of contract or other default by the Sub-Contractor or any person for whom the Sub-Contractor is responsible{
.;}
(4) The Sub-Contractor shall:
(a) continuously use his best endeavours to prevent or mitigate delay to the progress of the Sub-Contract Works{,} however caused{,} and to prevent the completion of the Sub-Contract Works being delayed or further delayed beyond the Completion Date, provided that the words ‘best endeavours’ shall not be construed to mean that the Sub-Contractor is obliged to spend additional money{, without reimbursement under clause 27,} to accelerate the carrying out of the Sub-Contract Works to recover delay {that} the Sub-Contractor did not cause{, without reimbursement under clause 27}; and
Sub-Contractor's second notice
25.2 (1) The Sub-Contractor shall, as soon as practicable but in any case within 28 days of giving the first notice, submit a second notice (referred to in clause 25 as the 'second notice’) to the Contractor giving{:- :}
(3) (b) make further submissions to the Contractor at intervals not exceeding 28 days giving further interim particulars and estimates of the length of the delay until the delay ceases;{ and}
(c) within 7 days after the delay ceasing, submit to the Contractor final particulars of the cause, effect and {predictable} length of the delay to the Sub-Contract Works or a Section beyond the Sub-Contract Completion Date in sufficient detail to enable the Contractor to make a decision under clause 25.3(1).
Fixing new Sub-Contract Completion Date
25.3 (2) The Contractor shall give the extension of time by fixing a later Sub-Contract Completion Date, and the reasons for his decision, as soon as practicable but in any case within 60 days {of after the} receipt <“of receipt” used elsewhere> of the particulars submitted with the second notice under clause 25.2.
(5) If after fixing a new Sub-Contract Completion Date under clause 25.3{,} the Architect issues an instruction under:
(b) clause 13.2 resulting in a substantial reduction of the work to be carried out under the Sub-Contract, provided that the variance was not apparent from the Sub-Contract Drawings{, the .}
{The} Contractor, with the consent of the Architect or as he may be required to do so by the Architect, may fix an earlier Sub-Contract Completion Date, though not earlier than the Sub-Contract Completion Date stated in the Appendix, if it is fair and reasonable to do so.
(7) The Contractor may, with Architect’s consent, fix a new Sub-Contract Completion Date, under clause 25 earlier or later than that previously fixed, during the period of delay between the Sub-Contract Completion Date and the date of Substantial Completion of the Sub-Contract Works (if Substantial Completion of the Sub-Contract Works takes place later than the Sub-Contract Completion Date) if it is fair and reasonable to do so having regard to any of the listed events, whether by reviewing a previous decision, {by} taking into account any further and better particulars that may be submitted by the Sub-Contractor{,} or {by taking into account} any extension of time granted under clause 25.3(6).
Rate of progress of Sub-Contract Works
25.5 (2) After receiving the Contractor’s notification{,} the Sub-Contractor may, at his own discretion and with no entitlement to receive additional payment, take the measures that he considers necessary to expedite the progress to complete the Sub-Contract Works by the Sub-Contract Completion Date.
Extension of timefor Sub-Contract Works to becompleted at the same timeas the Works
26.1 (1) If under clause 23.2(3) the Sub-Contract requires the Sub-Contract Works to be carried out and completed at the same time as the Works, as soon as practicable but in any case within 28 days of the commencement of an event likely to cause delay to the completion of the Sub-Contract Works or a Section becoming apparent{,} the Sub-Contractor shall give notice to the Contractor.
Sub-Contractor's notice of claimfor additional payment
28.1 (1) If{,} in the Sub-Contractor's opinion, he has incurred or is likely to incur direct loss and/or expense because the progress of the Sub-Contract Works has been or is likely to be delayed or disrupted by an event set out in clause 28.1(2) (referred to in clause 28 as a 'qualifying event’) and the Sub-Contractor intends to claim additional payment for this{,} he shall follow the procedures set out in clause 29 and shall also identify in his notice of claim which of the {following} qualifying events he believes to be the cause of the direct loss and/or expense.
(2) The qualifying events are as follows:
(g) delay {or disruption} caused by a nominated sub-contractor (other than the Sub-Contractor) or supplier nominated by the Architect under clause 29.2(6) of the Main Contract Conditions despite the Contractor’s valid objection, subject to clause 29.2(7) of the Main Contract Conditions;
(i) the failure of the Employer to supply or supply on time materials, goods, plant or equipment that he agreed to provide for the Sub-Contract Works{. ; and}
{(j) the failure of the Employer to give possession of the Site or, under clause 23.1(2) of the Main Contract Conditions, a part of the Site on the Date for Possession of the Site or the part of the Site stated in the appendix to the Main Contract Conditions, or subsequently the Employer depriving the Contractor of the whole or a part of the Site.}
Quantity Surveyor's ascertainment of Sub-Contractor’s claim
28.2 (1) Upon receipt of the Sub-Contractor’s claim under clause 28{,} the Architect shall instruct the Quantity Surveyor to ascertain, under clause 27.4 of the Main Contract Conditions, the amount of any additional payment for direct loss and/or expense incurred by the Sub-Contractor if the Architect is satisfied that:
(2) The ascertainment of the Sub-Contractor’s claim shall be made as soon as practicable but in any case within 60 days of receipt of the build-up of the claim and the particulars {submitted} under clause 29.2{, as the case may be}.
Sub-Contractor's default involved in the delay or disruption
28.3 Where and to the extent that a qualifying event resulting in delay to the progress of the Sub-Contract Works or disruption was{,} in the Architect’s opinion, contributed to or aggravated by a breach of contract or other default by the Sub-Contractor or any person for whom the Sub-Contractor is responsible, the Architect shall instruct the Quantity Surveyor to take such contribution or aggravation into account in ascertaining the amount of direct loss and/or expense due to the Sub-Contractor.
Sub-Contractor to give notice of claim
29.1 (1) If the Sub-Contractor intends to claim any additional payment under the Sub-Contract{,} the Sub-Contractor shall give notice to the Contractor of his intention to do so within 28 days of it becoming apparent to the Sub-Contractor that an event has occurred which gives rise to a claim and he shall include in the notice the contractual provisions upon which the claim is based.
(2) The Sub-Contractor need <should be “needs”> not give the notice required under clause 29.1(1) in the case of an Architect’s instruction under clauses <should be “clause”> 13.1 or 13.2 insofar as that instruction is subject to a Valuation under clause 13.
Sub-Contractor to submit particulars
29.2 (2) The Sub-Contractor shall as soon as practicable{,} but in any case within 60 days of giving notice under clause 29.1, submit to the Contractor:
(3) Where the effect {of the event} giving rise to the claim set out in the Sub-Contractor’s notice of claim commences later than 60 days after the Sub-Contractor has given notice of his intention to claim, the Sub-Contractor shall give the Contractor a statement to that effect and submit the information under clause 29.2(2) within 60 days of the commencement of the effect of the event giving rise to the claim.
General attendance
32.1 Unless otherwise provided in the Specification or Sub-Contract Bills{,} general attendance shall be provided by the Contractor free of charge to the Sub-Contractor and shall include the use of the Contractor’s temporary roads, pavings and paths, standing scaffolding, standing hoists, clearing away rubbish, provision of space on the Site for the Sub-Contractor’s offices and for the storage of his plant, materials and goods, the use of mess rooms, sanitary accommodation and welfare facilities.
Sub-Contractor's workshops
32.4 Unless otherwise provided in the Specification or Sub-Contract Bills{,} the Sub-Contractor shall provide, erect and maintain all the workshops, sheds or other temporary buildings required for the Sub-Contract Works on the areas of the Site allocated to him by the Contractor and subsequently remove them.
Interim Certificates and interimvaluations
33.1 (2) The Interim Certificate {is to shall} state the amount due to the Contractor from the Employer and the Contractor will be entitled to payment of the amount stated, less any monies deductible by the Employer, within the period for payment of certificates stated in the appendix to the Main Contract Conditions.
(3) The Sub-Contractor shall submit to the Contractor{, with copies to the Architect, the Quantity Surveyor and the Engineer as appropriate,} a statement of the gross valuation of the Sub-Contract work in progress showing the amount of each of the relevant items listed in clause 33.2 supported by all accounts, vouchers, receipts and other documents that may be reasonably required by the Quantity Surveyor within 7 days of the Contractor’s requirement for the Sub-Contractor to do so.
(4) The Contractor is required under clause 32.1 of the Main Contract Conditions to submit to the Quantity Surveyor{, with copies to the Architect and the Engineer as appropriate,} a statement setting out the Contractor’s estimate of the gross valuation of the work in progress, at least 14 days before the date on which an Interim Certificate is due to be issued and to include the amount set out in the Sub-Contractor’s statement under clause 33.1(3) together with supporting documentation in his submission.
(10) If the Employer has exercised a right under the Main Contract to deduct from monies due to the Contractor, to the extent that the deduction is due to a breach of contract or other default of the Sub-Contractor or any person for whom the Sub-Contractor is responsible{,} the monies deducted may be recovered by the Contractor from any monies due or to become due to the Sub-Contractor or as a debt.
Estimate of amount due to theSub-Contractor in Interim Certificate
33.2 (2) The {estimated} gross valuation of the Sub-Contract work in progress shall be the total of the amounts listed in clause 33.2(3) less the total of the amounts listed in clause 33.2(4).
(4) (b) the amount allowable to the Employer for decreases in the cost{s} of labour and/or materials under clause 39 if applicable; and
Off-site materials or goods
33.3 The Architect may, at his discretion or where expressly provided in the Sub-Contract, include the value of materials or goods intended for inclusion in the Sub-Contract Works in an Interim Certificate before the materials or goods are delivered to or adjacent to the Site {provided the materials and goods have been clearly and visibly marked to identify that they are held for the Employer for use upon the Works only and have been properly insured for the benefit of the Employer against physical loss or damage until delivery to the Site} and if this is the case he shall instruct the Quantity Surveyor to estimate the value of {those these} materials or goods for inclusion in the Quantity Surveyor’s interim valuation of the work in progress under clause 32.1(5) of the Main Contract Conditions.
Calculation of Sub-Contract Retention
33.4 (1) The Sub-Contract Retention on the payment for the Sub-Contractor’s work in progress shall be calculated by applying the percentage stated in the Appendix as the Sub-Contract Retention Percentage to the estimated gross valuation referred to in clause 33.2 exclusive of the amounts payable under clause 28 and any adjustment for fluctuations in the cost{s} of labour or materials under clause 39.
(2) The amount held as the Sub-Contract Retention shall not exceed the amount stated in the Appendix as the Limit of Sub-Contract Retention, as may be {increased or} <the Limit will not be increased> reduced in accordance with the Sub-Contract. Once the Limit of Sub-Contract Retention has been reached no further amounts shall be retained.
Retention rules
33.5 (2) The Architect {is required to shall} issue an Interim Certificate for the payment of one-half of the Sub-Contract Retention held in respect of the whole of the Sub-Contract Works, a Section or Relevant Part, as the case may be, {within} 14 days after the issue of the Substantial Completion Certificate for the whole of the Works, that Section or Relevant Part.
(4) The Architect {is required to shall} issue an Interim Certificate for payment of {all the} remaining Sub-Contract Retention {held in respect of the whole of the Works, a Section or a Relevant Part, as the case may be,} within 14 days after the issue of the Defects Rectification Certificate for the whole of the Works{, that Section or Relevant Part under clause 17.5}.
Quantity Surveyor to preparefinal account
33.6 (1) The Quantity Surveyor {is required to shall} prepare the final account, which is a statement of all adjustments to be made to the Sub-Contract Sum as set out in clause 33.7, within the period for completion of the final account stated in the appendix to the Main Contract Conditions commencing on the date of Substantial Completion of the whole of the Works.
(2) The Quantity Surveyor {is required to shall} send draft copies of the final account to the Sub-Contractor from time to time as the preparation of the final account progresses.
(3) The Sub-Contractor shall submit to the Quantity Surveyor all the documents that are, in the opinion of the Quantity Surveyor, reasonably necessary for the adjustment of the Sub-Contract Sum not later than 6 months after Substantial Completion of the whole of the Works or 3 months before the end of the period for the completion of the final account referred to in clause 33.6(1){,} whichever is earlier.
(4) The submission of the documents referred to in clause 33.6(3) shall not be a condition precedent to the Quantity Surveyor preparing the final account{,} and{,} if the Sub-Contractor fails to comply with that clause{,} the Quantity Surveyor shall prepare the final account based on the information that is available to him.
(7) {The Quantity Surveyor The Architect} shall issue a copy of the Sub-Contract final account signed by the Quantity Surveyor {and the Sub-Contractor} to {each of} the parties by special delivery.
Adjustment of the Sub-Contract Sum
33.7 (2) (b) the total of all Valuations under clause 13.4 which result{s} in a reduction in the Sub-Contract Sum;
(d) the amount allowable to the Employer for decreases in the cost of labour and/or materials under clause 39 if applicable;{ and}
(3) (d) the amount {assessed ascertained} as additional payment for direct loss and/or expense under clause 28;
(e) any amount payable for reimbursement for increases in the cost of labour and/or materials under clause 39, if applicable;{ and}
Issue of Final Certificate
33.8 (1) The Architect {is required to shall} issue the Final Certificate to the Employer and the Contractor as soon as practicable after the issue of the Defects Rectification Certificate for the whole of the Works {but not until at least 28 days and} after a copy of the signed final account has been given to the Employer and the Contractor.
(2) At the same time as the Architect issues the Final Certificate to the Employer and the Contractor, he {is required to shall} under clause 32.8 of the Main Contract Conditions to notify the Sub-Contractor of the date it was issued and the amount included for the Sub-Contract Works.
Effect of Final Certificate
33.9 (1) Subject to clauses 33.10 and 33.11 and except where any defect in or omission from the Sub-Contract Works was not reasonably discoverable at the time of the issue of the Defects Rectification Certificate, the Final Certificate shall be conclusive evidence in any proceedings arising out of the Sub-Contract whether by arbitration or otherwise that:
(d) any additional payment for direct loss and/or expense under clause 28 arising out of the occurrence of any of the qualifying events referred to in that clause is in full and final settlement of all claims for breach of contract, duty of care, statutory duty or otherwise;
except and insofar as the Final Certificate shall have been rendered erroneous by reason of fraud, dishonesty or fraudulent concealment. <should be indented to align with “(d)“>
Proceedings commenced before Final Certificate
33.10 (b) 12 months have passed without either party taking a further step in the proceedings{,} unless there is reasonable cause for not taking this step, whereupon the Final Certificate shall be subject to any terms agreed in partial settlement;
Sub-Contractor to obtain guarantee from insurancecompany or bank
{34.1} (1) The Sub-Contractor shall obtain the guarantee of an insurance company or bank, approved by the Contractor, to be jointly and severally bound with the Sub-Contractor to the Contractor in the sum stated in the Appendix for the due performance of the Sub-Contract under the terms of a surety bond.
{Release of insurance company or bank}
{34.2A (4)} The insurance company or bank shall be released from the surety bond upon the issue of the Substantial Completion Certificate for the whole of the Works {subject to the insurance company or bank’s settlement of all claims lodged under the Bond before the issue of the Substantial Completion Certificate}.
{34.2B The insurance company or bank shall be released from the surety bond upon the issue of the Defects Rectification Certificate subject to the insurance company or bank’s settlement of all claims lodged under the Bond before the issue of the Defects Rectification Certificate.}
{Contractor's remedyif Sub-Contractor fails to deliverbond}
{34.3 (5)} If the Sub-Contractor fails to deliver the bond, the Contractor may withhold an amount not greater than the value of the bond stated in the Appendix until the bond is delivered to the Contractor, {or the issue of the Substantial Completion Certificate for the Works, whichever occurs first,} at which time the amount withheld shall be released in the next Interim Certificate following the delivery of the bond.
Contractor to obtain rights and benefitsunder Main Contract for Sub-Contractor
35 The Contractor shall so far as he lawfully can{,} at the Sub-Contractor’s request and cost{,} obtain for him any rights and benefits of the Main Contract as far as they are applicable to the Sub-Contract Works.
Consequences of determination
36.4 (3) (b) the Contractor instructs that some or all of them {are to shall} be left on the Site for use in completing the Sub-Contract Works.
(4) If the Sub-Contractor does not comply with clause 36.4(3) within a reasonable time, the Contractor may, without being responsible for any loss or damage, remove and sell the {Sub-Contractors’ Sub-Contractor's} property and hold the proceeds, less {the all} expenses incurred, to the credit of the Sub-Contractor.
(6) (a) all {suppliers' manufacturers' suppliers’, manufacturers’} and { sub-sub-contractor’s sub-sub-contractors'} warranties, guarantees or other ancillary agreements for materials, goods and work relating to the Sub-Contract Works{,} insofar as they are required by the Sub-Contract{,} within 28 days of the date of determination; and
(9) The Contractor shall not {have be required} to make any further payment to the Sub-Contractor until the final settlement is made under clause 36.6.
The final settlement
36.6 (1) (a) the {sum cost} incurred by the Employer in completing the Sub-Contract Works represented by the total of the items in paragraphs (a), (b) and (c) in clause 36.5; and
(b) the amount that it would have cost the Employer to have carried out and completed the Sub-Contract Works but for the determination, represented by the {items amount} in paragraph (d) in clause 36.5.
(2) The difference between the two amounts in clause{s} 36.6(1)(a) and (b) shall be expressed in the certificate as a debt due to the Sub-Contractor from the Employer, through the Contract, or to the Employer from the Sub-Contractor, as the case may be, and shall be payable within 28 days after the issue of the Architect’s certificate.
Default by Contractor
37.1 (6) (a) for a default of the Contractor if it was caused or significantly contributed to by a breach of contract or other default of the Sub-Contractor or any person for whom the Sub-Contractor is responsible{;:} or
37.4 (1) (b) any amount not included in clause 37.4(1)(a) for the cost of materials and goods that were properly ordered for the Sub-Contract Works and delivered to or adjacent to the Site which the Sub-Contractor has paid for, or is legally bound to pay for, and has <missing “transferred”> or will transfer the property {in these materials and goods title in them} to the Contractor;
The final settlement
37.6 (2) The difference between the two amounts in clause 37.6(1)(a) and (b) shall be expressed in the certificate as a debt due to the Sub-Contractor from the Contractor{,} or to the Contractor from the Sub-Contractor{,} as the case may be and shall be payable within 28 days after the issue of the Architect's certificate.
Contractor’s power to recover damages etc.
41 (1) The Contractor may make any deduction authorised by the Sub-Contract or at law including without limitation, deductions for costs, damages, {liquidated and ascertained damages,} <damages include liquidated damages> debts, expenses or other sums for which the Sub-Contractor is liable to the Contractor from amounts due to the Sub-Contractor {including Retention}.
Procedures and Designated Representatives
42.1 (1) Subject to clause 42.5 dealing with early arbitration{,} the parties {agree to shall} follow the dispute settlement procedures outlined in clause 42.
(2) Each party shall designate one of its own senior executives as {it's its} representative (referred to in clause 42 as the ‘Designated Representatives’) within 14 days of acceptance of the Sub-Contractor’s tender{,} and the Designated Representative shall endeavour to settle disputes that arise during the carrying out of the Sub-Contract Works.
Reference to Designated Representatives
42.2 (1) If a dispute arises under or in connection with the Sub-Contract, the Architect shall{,} at the request of either party, immediately refer the dispute to the Designated Representatives.
Reference to mediation
42.3 (1) If the dispute is not resolved by the Designated Representatives within 28 days of the dispute being referred to them by the Architect under clause 42.2{,} either party may give a notice to the other party, by special delivery, to refer the dispute to mediation and the person to act as the mediator shall be agreed between the parties.
{*[A]}(2) If the parties fail to agree on the person to act as the mediator within 21 days after either party has given to the other a written request to {concur in this appointment do so}, the mediator shall{,} on the written request of either party{,} be appointed by the President or Vice-President for the time being of The Hong Kong Institute of Architects co-jointly with the President or Vice-President for the time being of {the The} Hong Kong Institute of Surveyors.
{*[B](2) If the parties fail to agree on the person to act as the mediator within 21 days after either party has given to the other a written request to do so, the mediator shall, on the written request of either party, be jointly appointed by the Presidents or Vice-Presidents for the time being of The Hong Kong Institute of Architects, The Hong Kong Institute of Surveyors and The Hong Kong Institute of Construction Managers.}
{* Clause 42.3[A] (2) is applicable if The Hong Kong Institute of Construction Managers is NOT included in the appointment of mediator. Clause 42.3[B] (2) is applicable if The Hong Kong Institute of Construction Managers is included in the appointment of mediator. Please strike out clause [A] (2) or [B] (2) as the case may require. If both clauses [A] (2) and [B] (2) have not been struck out, clause 42.3[A] (2) shall be applicable.} <physically striking out instead of selecting in the Appendix, but without mentioning the need to initial the striking out?>
Reference to arbitration
42.4 (1) {(a)} If the dispute is not settled by mediation within 28 days of the commencement of the mediation{, ; or
(b) at any time in the case of disputes listed in clause 42.5(1),}
either party may give a notice to the other party, by special delivery, to refer the dispute to arbitration and the person to act as the arbitrator shall be agreed between the parties.
{*[A]}(2) If the parties fail to agree on the person to act as the arbitrator within 21 days after either party has given to the other a written request to do so, the arbitrator shall, on the written request of either party, be appointed by the President or Vice-President for the time being of The Hong Kong Institute of Architects co-jointly with the President or Vice-President for the time being of {the The} Hong Kong Institute of Surveyors.
{*[B](2) If the parties fail to agree on the person to act as the arbitrator within 21 days after either party has given to the other a written request to do so, the arbitrator shall, on the written request of either party, be jointly appointed by the Presidents or Vice-Presidents for the time being of The Hong Kong Institute of Architects, The Hong Kong Institute of Surveyors and The Hong Kong Institute of Construction Managers.}
(3) The Presidents or Vice-Presidents referred to in clause 42.4(2), if in agreement to do so, may, at their discretion, request the Hong Kong International Arbitration Centre to appoint the arbitrator, by a joint letter to the {Chairman Secretariat} of that organization.
(4) If the Presidents or Vice-Presidents referred to in clause 42.4(2) fail to appoint the arbitrator within 60 days after receiving the written request to do so under clause 42.4(2){,} then the arbitrator shall on the written request of either party be appointed by the Hong Kong International Arbitration Centre.
(5) The arbitration shall be a domestic arbitration conducted in accordance with the Arbitration Ordinance (Chapter {341 609}, Laws of Hong Kong) {including, without limitation to Schedule 2 of that Ordinance} and, unless otherwise agreed by the parties, {with subject to} the Domestic Arbitration Rules of the Hong Kong International Arbitration Centre {(}except those provisions in the Rules relating to the appointment of the arbitrator.{)}
{* Clause 42.4[A] (2) is applicable if The Hong Kong Institute of Construction Managers is NOT included in the appointment of arbitrator. Clause 42.4(B) (2) is applicable if The Hong Kong Institute of Construction Managers is included in the appointment of arbitrator. Please strike out clause [A] (2) or [B] (2) as the case may require. If both clauses [A] (2) and [B] (2) have not been struck out, clause 42.4(A) (2) shall be applicable.} <physically striking out instead of selecting in the Appendix, but without mentioning the need to initial the striking out?>
Timing of arbitration
42.5 (1) The arbitrator shall have jurisdiction to hear the parties {and commence the arbitration} of a dispute arising {out of,} under or in connection with the Sub-Contract at any time on a question of whether:
(a) the Contractor is empowered by either the Main Contract or the Sub-Contract to issue an instruction;
(b) a certificate has been improperly withheld or {is was} not {issued} in accordance with the Sub-Contract Conditions;
(c) the Sub-Contractor’s objection to a Variation referred to in clause 13.1(1)(b) is reasonable; and
(d) determination by Contractor or Sub-Contractor{. ,
and rule on such dispute}.
43 Contractor to join with the Sub-Contractor in arbitration proceedings
Contractor to joinwith the Sub-Contractor in arbitrationproceedings
43 If the Sub-Contractor feels aggrieved by:
…
then subject to the Sub-Contractor giving the Contractor such indemnity and security as the Contractor may reasonably require, the Contractor shall allow the Sub-Contractor to use the Contractor's name and if necessary join with the Sub-Contractor as {plaintiff claimant} in arbitration proceedings with the Employer at the instigation of the Sub-Contractor to decide the matter.
{44 Contracts (Rights of Third Parties) Ordinance (Cap. 623)
Exclusion only applicable if expressly stated to be
The Contracts (Rights of Third Parties) Ordinance (Chapter 623, Laws of Hong Kong) is excluded if it is expressly stated to be the case in the Appendix, if so, <should be “Appendix. If so,”> a person who is not a party to the Sub-Contract shall not have any rights under tlhe Contracts (Rights of Third Parties) Ordinance (Chapter 623, Laws of Hong Kong) to enforce any term of the Sub-Contract.}
Appendix
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Clause |
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Date for commencement of the Sub-Contract Works ...................................................................................................................... |
23.1 <should be “23.2”> |
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Amount of Surety Bond HK$ ................................................................................. |
{ |
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{Release of insurance company or bank * Clause 34.2A/Clause 34.2B applies} |
{34.2} |
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Fluctuations (The Sub-Contract Sum will be adjusted for fluctuations only if it is expressly stated to be so adjusted in the space below.) ...................................................................................................................... |
39.0 <should be “39”> |
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{Contracts (Rights of Third Parties) Ordinance (Cap. 623) (The Contracts (Rights of Third Parties) Ordinance (Cap. 623) is excluded if it is expressly stated to be so in the space below) ......................................................................................................................} |
{44} |
Appendix to the Main Contract Conditions
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Limit of Retention {(if not stated, 10 per cent)} <the norm is 5%> HK$ .................................................................................. plus the Retention held in respect of Nominated Sub-Contractors and Nominated Suppliers |
32.4 |
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{Release of insurance company or bank * Clause 33.2A/Clause 33.2B applies} |
{33.2} |
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Fluctuations (The Contract Sum will be adjusted for fluctuations only if it is expressly stated to be so adjusted in the space below) ...................................................................................................................... |
38 |
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{Contracts (Rights of Third Parties) Ordinance (Cap. 623) (The Contracts (Rights of Third Parties) Ordinance (Cap. 623) is excluded if it is expressly stated to be so in the space below) ......................................................................................................................} |
{42} |
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Schedule 1
FORM OF SURETY BOND
TO BE GIVEN BY THE NOMINATED SUB-CONTRACTOR
TO THE CONTRACTOR
Whereas [By a Contract dated the .................... day of ...................20 .................. made between
...............................................................................................................................................................
('the Employer1) of the one part and the Contractor of the other part] or [By the letter of acceptance sent by the Architect on behalf of the Employer to the Contractor dated the .................... day of ...................20 .................. {,} the Employer accepted the tender submitted by the Contractor dated the .................... day of ...................20 ...................] (Note 4) for the ...............................................................................................................................................................
...............................................................................................................................................................
...............................................................................................................................................................
('the Contract’) the Contractor has agreed to develop the Architect’s design to the extent specified in the Contract, construct, complete and maintain the Works (as therein defined) until the issue of the Defects Rectification Certificate and to perform the Contract in conformance with the provisions thereof.
2. The Sub-Contractor shall duly perform and observe all the terms, provisions, conditions, obligations, stipulations and specification of the Sub-Contract according to the true purport intent and meaning thereof and to the reasonable satisfaction of the Architect appointed by the Employer in respect of the Works or{,} if on default by the Sub-Contractor{,} the Surety shall satisfy and discharge the damages sustained by the Contractor thereby as certified by the said Architect{,} up to the amount of the above written Bond then his obligation shall be null and void but otherwise his obligation shall be and remain in full force and effect.
4. This Bond shall be binding upon the Sub-Contractor and the Surety and their respective successors and assigns jointly and severally (provided that the Sub-Contractor and Surety may not assign their respective rights and liabilities hereunder without the prior written consent of the Contractor) and shall {inure insure}<should be “inure”> to the benefits of the Contractor and his successors and assigns.
5. This Bond shall remain valid for receipt of claims as aforesaid from the date of the Sub-Contract until the date of issue of the {Defects Liability Certificate Substantial Completion Certificate/Defects Rectification Certificate*** (Note 5)} pursuant to the Conditions of the Contract and any release of the Surety from the Bond shall be expressly subject to any claims made before this date.
|
SIGNED, SEALED AND DELIVERED by the Sub-Contractor in the presence of :-
..................................................... (Signature of witness) ..................................................... ..................................................... (Name and occupation of witness) |
) (Note {5 6}) ) ) ) ) ) ) ) ) |
| OR | |
|
THE COMMON SEAL of the Sub-Contractor was hereunto affixed in the presence of :-
..................................................... (Signature of witness) ..................................................... ..................................................... (Name and occupation of witness) |
) (Note { ) ) ) ) ) ) ) ) |
| OR | |
|
SIGNED, SEALED AND DELIVERED for and on behalf of and as lawful attorney of the Sub-Contractor under Power of Attorney dated ..................................................by ..................................................... in the presence of :-
..................................................... (Signature of witness) ..................................................... ..................................................... (Name and occupation of witness) |
) (Note { ) ) ) ) ) ) ) ) ) ) ) ) ) |
|
THE COMMON SEAL of the Surety was hereunto affixed in the presence of :-
..................................................... (Signature of witness) ..................................................... ..................................................... (Name and occupation of witness) |
) (Note { ) ) ) ) ) ) ) ) |
| OR | |
|
SIGNED, SEALED AND DELIVERED for and on behalf of and as lawful attorney of the Sub-Contractor under Power of Attorney dated ..................................................by ..................................................... in the presence of :-
..................................................... (Signature of witness) ..................................................... ..................................................... (Name and occupation of witness) |
) (Note { ) ) ) ) ) ) ) ) ) ) ) ) ) |
Notes
{(5) *** Delete as appropriate.}
({5 6}) For use in the case of a sole proprietor or where all partners of a firm execute.
({6 7}) For use in the case of a limited company executing under its common seal.
({7 8}) For use in the case of a firm or a limited company executing through an attorney.
Schedule 2
FORM OF WARRANTY TO BE GIVEN BY
THE NOMINATED SUB-CONTRACTOR TO
THE EMPLOYER IN CONSIDERATION OF NOMINATION
(g) We will obtain a surety bond in the form set out in Schedule 1 of the Sub-Contract with the requisite changes in wording to reflect that the bond is to be given by the Nominated Sub-Contractor to the Employer instead of to the Contractor. This bond will be duly executed under seal by an approved insurance company or bank, acknowledging that the Insurance company or the bank is jointly and severally bound with us to the Employer in the sum of 10% of the Sub-Contract Sum (rounded up the nearest thousand dollars) against breach of the warranties hereof.
The words and expressions used in this Deed of Warranty shall have the same meaning as in the Contract and the Sub-Contract. <this paragraph should align with “(g)”>
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SIGNED, SEALED AND DELIVERED for and on behalf of and as lawful attorney of the Sub-Contractor under Power of Attorney dated ..................................................by ..................................................... in the presence of :-
..................................................... (Signature of witness) { ..................................................... (Name and occupation of witness)} <should have 2 dotted lines> |
) (Note 3) ) ) ) ) ) ) ) ) ) ) ) ) ) |
Index to the {Sub-Contract} General Conditions <should not delete “Sub-Contract”>
The copyright of this publication is owned by The Hong Kong Institute of Architects, The Hong Kong Institute of Construction Managers and The Hong Kong Institute of Surveyors. The contents {of this publication} do not necessarily reflect the views or opinions of these copyright owners and no liability is accepted in relation thereto. {Anyone using this publication should seek suitable professional advice.}