Sample: General Conditions OF Unit Price Contract
Sample: General Conditions OF Unit Price Contract
Sample: General Conditions OF Unit Price Contract
OF
GENERAL CONDITIONS
SA
INDEX
GENERAL CONDITIONS OF CONTRACT
SECTION
PAGE
1
Definitions
Documents
Documents Provided
Engineers/Architect's Decisions
Delay
10
11
12
Other Contractors
13
Assignment
SA
PL
14
Subcontractors
15
Emergencies
16
17
Indemnification
18
19
20
10
21
10
22
12
23
12
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INDEX
GENERAL CONDITIONS OF CONTRACT
SECTION
PAGE
13
Patent Fees
25
13
Workmen's Compensation
26
13
Liability Insurance
27
15
Property Insurance
28
16
29
16
30
17
Bonds
31
17
Warranty
32
18
33
18
Superintendence
34
18
35
19
Subsurface Conditions
36
19
Use of Premises
37
19
SA
PL
24
38
20
39
20
Inspection of Work
40
20
Rejected Work
41
21
Shop Drawings
42
21
Samples
43
21
44
22
45
22
Labour
46
22
47
23
Time of Essence
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GC1
DEFINITIONS
1.1
Contract Documents
The Contract Documents consist of the Instruction to Bidders, executed Agreement, General
Conditions of Contract, Supplementary General Conditions of Contract, Specifications, Drawings and
such other documents as are listed in Article A-2 of the Agreement, including all amendments thereto
incorporated before their execution and subsequent amendments thereto made pursuant to the
provisions of the contract or agreed upon between the parties. The Successful Bidder's tender, and any
addenda to the Specification issued during the bidding period shall also form part of the Contract
Documents.
1.2
1.3
PL
The Owner, Engineer/Architect and Contractor are the persons, firms or corporation identified as such
in the Agreement and referred to throughout the Contract Documents as if singular in number and
masculine in gender. The Term Owner, Engineer/Architect and Contractor means the Owner,
Engineer/Architect or Contractor or their authorized representatives as designated by each party in
writing.
Subcontractor
1.4
The Project
A Subcontractor is a person, firm or corporation having a direct contract with the Contractor to
perform a part or parts of the Work included in the Contract, or to supply products worked to a special
design according to the Contract Documents, but does not include one who merely supplies products
not so worked.
1.5
SA
The Project is the total construction of which the work performed under the Contract Documents may
be the whole or a part.
Products
The term Products means all material, machinery, equipment and fixtures forming the completed work
as required by the Contract Documents but does not include machinery and equipment used for
preparation, fabrication, conveying and erection of the Work and normally referred to as construction
machinery and equipment.
1.6
The Work
Work includes the whole of the works, materials, matters and things required to be done, furnished and
performed by the Contractor under the Contract.
1.7
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1.8
Other Contractor
The term Other Contractor means any person, firm or corporation employed by or having a separate
contract directly or indirectly with the Owner for work other than that required by the Contract
Documents.
1.10
Time
a)
The Contract Time is the time stated in Article A-1(c) of the Agreement for Substantial
Performance of the Work.
b)
The date of Substantial Performance of the Work is the date certified by the
Engineer/Architect.
c)
The term day, as used in the Contract Documents, shall mean the calendar day.
d)
The term working day means any day observed by the construction industry in the area of the
place of building.
Substantial Performance
1.9
PL
when the work or a substantial part thereof is ready for use or is being used for the purpose
intended; and
b)
when the work to be done under the contract is capable of completion or correction at a cost
of not more than:
three per centum of the first two hundred and fifty thousand dollars ($250,000) of
the contract price,
(ii)
two per centum of the next two hundred and fifty thousand dollars ($250,000) of the
contract price, and
SA
(i)
(iii)
1.11
a)
Total Performance
Total Performance shall mean when the entire work has been performed to the requirements of the
Contract Documents and is so certified by the Engineer/Architect.
GC 2
DOCUMENTS
2.1
The Contract Documents shall be signed in duplicate by the Owner and the Contractor.
2.2
Words which have well known technical or trade meanings are used in the Contract Documents in
accordance with such recognized meanings.
2.3
In the event of conflicts between Contract Documents the following shall apply:
a)
b)
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c)
d)
e)
f)
g)
GC 3
Drawings of larger scale shall govern over those of smaller scale of the same date.
Specifications shall govern over Drawings.
The General Conditions of Contract shall govern over Specifications.
Supplementary General Conditions shall govern over the General Conditions of the Contract.
The Agreement shall govern over all documents.
3.2
Additional instructions may include minor changes to the Work which affect neither the Contract Price
nor the Contract Time.
3.3
Additional instructions may be in the form of drawings, samples, models or written instructions.
3.4
Additional instructions will be issued by the Engineer/Architect with reasonable promptness and in
accordance with any schedule agreed upon.
3.5
The Contractor shall, within thirty (30) days of the signing of this contract provide the Owner with a
schedule of work.
GC 4
DOCUMENTS PROVIDED
4.1
The Contractor will be provided, without charge, a reasonable number of Contract Documents or parts
thereof as are reasonably necessary for the performance of the Work.
GC 5
5.1
The Contractor shall keep one copy of all current Contract Documents and shop drawings on the site,
in good order and available to the Engineer/Architect and/or his representatives. This requirement
shall not be deemed to include the executed Contract Documents.
PL
SA
GC6
3.1
6.1
All Contract documents and copies thereof, and all models are and shall remain the property of the
Owner and are not to be used on other work.
6.2
Such documents are not to be copied or revised in any manner without the written authorization of the
Owner.
6.3
Models furnished by the Contractor or the Owner are the property of the owner.
GC 7
ENGINEER/ARCHITECT'S DECISIONS
7.1
The Engineer/Architect, in the first instance, shall decide on questions arising under the Contract
Documents and interpret the requirements therein. Such decisions shall be given in writing.
7.2
The Contractor shall notify the Engineer/Architect in writing within five (5) days of receipt of a
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decision of the Engineer/Architect referred to in 7.1 should he hold that a decision by the
Engineer/Architect is in error and/or at variance with the contract Documents. Unless the Contractor
fulfills this requirement subsequent claims by him for extra compensation, arising out of the decision,
will not be accepted.
7.3
If the question of error and/or variance is not resolved immediately, and the Engineer/Architect
decides that the disputed work shall be carried out, the Contractor shall act according to the
Engineer/Architect's written decision.
Any question of change in Contract Price and/or extension of Contract Time due to such error and/ or
variance shall be decided as provided in GC 16 - Settlement of Disputes.
DELAY
8.1
If it can be clearly shown that the Contractor is delayed in the performance of the work by any act or
fault of the Owner or other Contractor, then the Contract Time shall be extended for such reasonable
time as the Engineer/Architect may decide in consultation with the Contractor. The Contractor shall
be reimbursed for any costs incurred by him as a result of such a delay occasioned by the act or fault,
provided that it can be clearly shown that the Contractor's forces cannot work efficiently elsewhere on
the project and that the incurred cost is limited to that which could not reasonably have been avoided.
8.2
If the Contractor is delayed in the performance of the Work by a Stop Work Order issued by any court
or other public authority, and providing that such order was not issued as the result of any act or fault
of the Contractor or of any one employed by him directly or indirectly, then the Contract Time shall be
extended for such reasonable time as the Engineer/Architect may decide, in consultation with the
Contractor, and the Contractor shall be reimbursed for any on-site costs incurred by him as the result
of such delay.
8.3
If the Contractor is delayed in the performance of the Work by civil disorders, labour disputes, strikes,
lock-outs (including lock-outs decreed or recommended for its members by a recognized Contractor's
Association, of which the Contractor is a member) fire, unusual delay by common carriers or
unavoidable casualties or, without limit to any of the foregoing, by any cause of any kind whatsoever
beyond the Contractor's control, then the Contract Time shall be extended for such reasonable time as
may be decided by the Engineer/Architect in consultation with the Owner and the Contractor, but in no
case shall the extension of time be less than the time lost as the result of the event causing the delay,
unless such shorter extension of time be agreed to by the Contractor.
PL
SA
8.4
GC 8
No extension shall be made for delay unless written notice of claim is given to the Engineer/Architect
within fourteen (14) days of its commencement, providing that in the case of a continuing cause of
delay only one notice shall be necessary.
GC 9
9.1
If the Contractor should neglect to prosecute the Work properly or fail to perform any provisions of
the Contract, the Owner may notify the Contractor in writing that he is in default of his contractual
obligations and instruct him to correct the default within five (5) working days of receiving the notice.
9.2
If the correction of the default cannot be completed within the five (5) working days specified, the
Contractor shall be considered to be in compliance with the Owner's instructions if he:
a)
commences the correction of the default within the specified time, and
b)
provides the Owner with an acceptable schedule for such correction, and
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c)
9.3
If the Contractor fails to comply with the provisions 9.1 and 9.2 the Owner may, without prejudice to
any other right or remedy he may have, correct such default and may deduct the cost thereof from the
payment then or thereafter due the Contractor.
If the Contractor should be adjudged bankrupt, or makes a general assignment for the benefit of
creditors or if a receiver is appointed on account of his insolvency, the Owner may, without prejudice
to any other right or remedy he may have, by giving the Contractor written notice, terminate the
Contract.
10.2
The Owner may notify the Contractor in writing that he is in default of his contractual obligations, if
the Contractor.
fails to proceed regularly and diligently with the Work; or
b)
without reasonable cause wholly suspends the carrying out of the Work before the
completion thereof, or
c)
d)
fails to make payments due to his Subcontractors, his suppliers or his workmen; or
e)
f)
SA
PL
a)
Such written notice by the Owner shall instruct the Contractor to correct the default
within five (5) working days from the receipt of the written notice.
10.3
If the correction of the default cannot be completed within the five (5) working days specified, the
Contractor shall be considered to be in compliance with the Owner's instructions if he:
a)
b)
provides the Owner with an acceptance schedule for such correction, and
c)
10.4
If the Contractor fails to correct the default within the time specified or subsequently agreed upon, the
Owner may, without prejudice to any other right or remedy he may have, stop the Work or terminate
the Contract.
10.5
If the Owner terminates the Contract under the conditions set out above, he is entitled to:
a)
take possession of the premises and products and utilize the temporary buildings, plants,
tools, construction machinery and equipment, goods, materials, intended for, delivered to and
placed on or adjacent to the work and may complete the Work by whatever method he may
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withhold any further payments to the Contractor until the Work is finished.
c)
upon total performance of the Work, charge the Contractor the amount by which the full cost
of finishing the Work including compensation to the Engineer/Architect for his additional
services and a reasonable allowance to cover the cost of any corrections required by GC 31 Warranty, exceeds the unpaid balance of the Contract Price; or if such cost of finishing the
Work is less than the unpaid balance of the Contract Price, pay the Contractor the difference.
d)
on expiry of the warranty period, charge the Contractor the amount by which the cost of
corrections under GC 31 - Warranty exceeds the allowance provided for such corrections, or
if the cost of such corrections is less than the allowance, pay the Contractor the difference.
11.2
If the Work should be stopped or otherwise delayed for a period of thirty days or more under an order
of any court, or other public authority, and providing that such order was not issued as the result of
any act or fault of the Contractor or of any one directly or indirectly employed by him, the Contractor
may, without prejudice to any other right or remedy he may have, by giving the Owner fifteen (15)
days written notice, terminate the Contract.
11.3
The Contractor may notify the Owner in writing that the Owner is in default of his contractual
obligations if:
PL
11.1
b)
The Owner fails to pay to the Contractor when due any amount certified by the
Engineer/Architect and verified by the audit of the Owner.
SA
a)
Such written notice shall advise the Owner that if such default is not corrected within fifteen (15) days
from the receipt of the written notice the Contractor may, without prejudice to any other right or
remedy he may have, stop the work and/ or terminate the contract.
11.4
If the Contractor terminates the Contract under the conditions set out above, he shall be entitled to be
paid for all Work performed and for any loss sustained upon products and plant supplied with
reasonable overhead, profit and damages.
GC 12 OTHER CONTRACTORS
12.1
The Owner reserves the right to let separate contracts in connection with the project of which the
Work is part.
12.2
The Owner shall co-ordinate the work and insurance coverages of Other Contractors as it affects the
Work of this Contract.
12.3
The Contractor shall coordinate his work with that of Other Contractors and connect as specified or
shown in the Contract Documents. Any change in the costs incurred by the Contractor in the planning
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and performance of such work which was not shown or included in the Contract documents as of the
date of signing the Contract, shall be evaluated as provided under GC 19 - Valuation and Certification
of Changes in the Work.
12.4
The Contractor shall report to the Engineer/Architect any apparent deficiencies in other Contractor's
work which would affect the Work of this Contract immediately they come to his attention and shall
confirm such report in writing. Failure by the Contractor to so report shall invalidate any claims
against the Owner by reason of the deficiencies of Other Contractor's work except as to those of which
he was not reasonably aware.
GC 13 ASSIGNMENT
13.1
The Contractor shall not assign the Contract or any part thereof or any benefit or interest therein or
thereunder with/out the written consent of the Owner.
GC 14 SUBCONTRACTORS
The Contractor agrees to preserve and protect the rights of the Owner under the Contract with respect
to any work to be performed under subcontract. The Contractor shall:
a)
require his Subcontractors to perform their work in accordance with and subject to the terms and
conditions of the Contract Documents, and
b)
be fully responsible to the Owner for acts and omissions of his Subcontractors and of persons directly
or indirectly employed by them as for acts and omissions of persons directly employed by him.
PL
14.1
14.3
14.4
The Contractor shall employ those Subcontractors proposed by him in writing and accepted by the
Owner prior to the signing of the Contract for such portions of the work as may be designated in the
bidding requirements.
SA
14.2
The Contractor therefore agrees that he will incorporate all the terms and conditions of the Contract
Documents into all Subcontract Agreements he enters into with his Subcontractors.
The Owner may, for reasonable cause, object to the use of a proposed Subcontractor and
require the Contractor to employ one of the other Subcontractor Bidders.
In the event that the Owner requires a change from any proposed Subcontractor the Contract Price
shall be adjusted by the difference in cost occasioned by such required change.
14.5
The Contractor shall not be required to employ as a Subcontractor any person or firm to whom he may
reasonably object.
14.6
The Engineer /Architect may, upon reasonable request and at his discretion, provide to a Subcontractor
information as to the percentage of the Subcontractor's work which has been certified for payment.
14.7
Nothing contained in the Contract Documents shall create any contractual relationship between any
Subcontractor and the Owner.
GC 15 EMERGENCIES
15.1
The Engineer/Architect has authority in an emergency to stop the progress of the Work whenever in
his opinion such stoppage maybe necessary to ensure the safety of life, or the Work, or neighbouring
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property. This includes authority to make changes in the Work, and to order, assess and award the
cost of such work, extra to the Contract or otherwise, as may in his opinion be necessary. The
Engineer/Architect shall, within two (2) working days, confirm in writing any such instructions. In
such a case if work has been performed under direct order of the Engineer/Architect, the Contractor
shall keep his right to claim the value of such work.
15.2
Should the Work be stopped by civil pickets, or other disorder, neither the Owner nor the Contractor
shall have claim for change in the price of the Contract.
16.2
Legal proceedings shall not take place until after the performance or the substantial performance of the
disputed work except:
a)
b)
where either party can show that the matter in dispute requires immediate consideration while
evidence is available.
c)
in the case of legal proceedings, where the action may become prescribed by reason of delay.
PL
16.1
GC 17 INDEMNIFICATION
a)
b)
17.2
Except as provided in 17.2, the Contractor shall be liable for, and shall indemnify and hold harmless
the Owner and the Engineer/Architect, their agents and employees from and against all claims,
demands, losses, costs, damages, actions, suits or proceedings, whatsoever arising under any statute or
Common Law:
SA
17.1
in respect of personal injury to or the death of any person whomsoever arising out of or in the course
of or caused by the carrying out of the Work; and
in respect of any injury or damage whatsoever to any property, real or personal or any chattel real,
insofar as such injury or damage arises out of or in the course of or by reason of the carrying out of the
Work.
The Contractor shall not be liable under 17.1 if the injury, death, loss or damage is due to any act or
neglect of the Owner or Engineer/Architect, their agents or employees.
The Owner may make changes by altering, adding to, or deducting from the Work, with the amount
due under the Contract and the Contract Time being adjusted accordingly.
18.2
Except as provided in GC 15 - Emergencies, no change shall be made without a written order from the
Engineer/Architect and no claim for an addition or deduction from the amount due under the contract
or change in the Contract Time shall be valid unless so ordered and at the same time valued or agreed
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The value of any change shall be determined in one or more of the following methods:
a)
b)
c)
When work is performed by the Contractor's own forces his markup for overhead shall be ten (10)
percent and his profit ten (10) percent of the agreed or actual cost of the change. When work is
performed by one of his Subcontractors the Subcontractor's markup for overhead shall be ten (10)
percent of the agreed or actual cost of the change plus five (5) percent for profit. The Contractor's
markup for overhead and profit shall be ten (10) percent of the Subcontractor's total price.
Notwithstanding the provisions of 19.1, in case of changes in the Work, (a) where unit prices are
provided in the Contract for work to be done those unit prices shall be used in determining the valve of
any change and (b) the amount charged for equipment rentals shall be that provided in the Contract
and no additional amount shall be paid as markup for overhead or profit for the Contractor or
Subcontractor.
19.3
When a change in the Work is proposed or required the Contractor shall present to the
Engineer/Architect for approval his claim for any change in the Contract Price and/or change in the
Contract Time. The Engineer/Architect shall satisfy himself as to the correctness of such claim and,
when approved shall issue a written order to the Contractor to proceed with the change. The value of
work performed in the change shall be included for payment with the regular certificate for payment.
19.4
SA
PL
19.2
In the case of changes in the Work to be paid for under methods (b) and (c) of 19. 1, the form of
presentation of costs and methods of measurement shall he agreed to by the Engineer/Architect and
Contractor before proceeding with the change. The Contractor shall keep accurate records, as agreed
upon, of quantities or costs and present an account of the cost of the change in the Work, together with
vouchers where applicable.
19.5
If the method of valuation, measurement and the change in Contract Price and/or change in Contract
Time cannot be promptly agreed upon, and the change is required to be proceeded with then the
Engineer/Architect shall determine the method of valuation, measurement and the change in Contract
Price and/or Contract Time subject to final determination in the manner set out in GC 16 - Settlement
of disputes. In this case the Engineer/Architect shall issue a written authorization for the change
setting out the method of valuation and if by lump sum his valuation of the change in Contract Price
and/or Contract Time.
19.6
In the case of a dispute in the valuation of a change authorized in the Work pending final
determination of such value, the Engineer/Architect shall certify the value of work performed and
include the amount with the regular certificates for payment.
19.7
It is intended in all matters referred to above that both the Engineer/Architect and Contractor shall act
promptly.
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Applications for payment on account as provided for in Article A-4 may be made monthly as the Work
progresses.
20.2
Application for payment shall be made monthly on a date to be agreed between the Owner and the
Contractor and the amount claimed shall be for the value of work performed and products delivered to
the site at that date.
20.3
Applications for release of holdback monies following the substantial Performance of the Work and
the application for final payment shall be made at the time and in the manner set forth in GC 21
Certificates and Payments.
21.2
The Owner shall within twenty-one (21) days of the issuance of a certificate for payment by the
Engineer/Architect, make payment to the Contractor on account, in accordance with the provisions of
the Agreement.
21.3
If payment is not made within sixty (60) days of issuance of a certificate for payment by the
Engineer/Architect the Owner will be liable for interest on the amount owing at the rate of 9% per
annum from the sixty-first (61st) day to the date of payment.
21.4
PL
21.1
If on account of climatic or other conditions reasonably beyond the control of the Contractor
there are items of work that cannot be performed, the payment in full for that which has been
performed as certified by the Engineer/Architect shall not be withheld or delayed by the
Owner on account thereof, but the Owner may withhold from the Contract Price until the
remaining work is finished an amount sufficient to cover the cost to the Owner of performing
such remaining work and to adequately protect the Owner from claims.
b)
Where legislation permits and where, upon application by the Contractor, the
Engineer/Architect has certified that a Subcontract has been totally performed to his
satisfaction prior to the Substantial Performance of this Contract, the Owner shall pay the
Contractor the holdback retained for such Subcontractor on the day following the expiration
of the Statutory Limitations Period stipulated in the Mechanics' Lien Act applicable to the
place of building.
SA
a)
a copy of the contract between the Subcontractor and the Contractor, or some other suitable
Document satisfactory to the Owner, must be presented to the Owner,
ii)
iii)
the warranty for the Subcontract will not start until Substantial Performance of the General
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Contract;
iv)
the Contractor provides an approved statutory declaration that all monies have been paid to
the Subcontractors;
v)
the Owner will, at that time, release the total amount specified on the Sub-contractor's
Contract.
Notwithstanding the provisions of 21.4 (b) and notwithstanding the wording of such certificate the
Contractor shall ensure that such work is protected pending the Total Performance of the Contract and
be responsible for the correction of any defects in it regardless of whether or not they were apparent
when such certificates were issued.
21.6
The Engineer/Architect shall, within ten (10) days of receipt of an application from the Contractor for
a Certificate of Substantial Performance, make an inspection and assessment of the work to verify the
validity of the application. The Engineer/Architect shall within seven (7) days of his inspection notify
the Contractor of his approval or disapproval of the application. When the Engineer/Architect finds
the Work to be Substantially Performed he shall issue such a certificate. The date of this certificate
shall be the date of Substantial Performance of the Contract. Immediately following the issuance of
the Certificate of Substantial Performance, the Engineer/Architect, in consultation with the Contractor
shall establish a reasonable date for the Total Performance of the Contract.
21.7
Following the issuance of the Certificate of Substantial Performance and upon receipt from the
Contractor of all documentation called for in the Contract Documents the Engineer/Architect shall
issue a certificate for payment of holdback monies. The release of holdback monies authorized by this
certificate shall become due and payable on the day following the expiration of the Statutory
Limitation Period stipulated in the Mechanics' Lien Act applicable to the place of building, providing
that no lien or privilege claims against the Work exist and the Contractor has submitted to the Owner a
sworn statement that all accounts for labour, subcontracts, products, construction machinery and
equipment and any other indebtedness which may have been incurred by the Contractor in the
Substantial Performance of the Work and for which the Owner might in any way be held responsible
have been paid in full except holdback monies properly retained.
21.8
The Engineer/Architect shall, within ten (10) days of receipt of an application from the Contractor for
payment upon Total Performance of the Contract, make an inspection and assessment of the Work to
verify the validity of the application. The Engineer/Architect shall within seven (7) days of his
inspection notify the Contractor of his approval or disapproval of the application. When the
Engineer/Architect finds the Work to be totally performed to his satisfaction he shall issue a
Certificate of Total Performance and certify for payment the remaining monies due to the Contractor
under the Contract less any holdback monies which are required to be retained. The date of this
certificate shall be the date of Total Performance of the Contract. The Owner shall, within thirty (30)
days of issuance of such certificate, make payment to the Contractor in accordance with the provisions
of Article A-4 of the Agreement.
SA
PL
21.5
21.9
The release of any remaining holdback monies shall become due and payable on the day following the
expiration of the Statutory Limitation Period stipulated in the Mechanics' Lien Act applicable to the
place of building or where such legislation does not exist or apply in accordance with such other
legislation, regulations governing privileges, industry practice or such other provisions which may he
agreed to between the parties, provided that no claims against the Work exist and the Contractor has
submitted to the Owner a sworn statement that all accounts for labour, Subcontracts, products,
construction machinery and equipment and any other indebtedness which may have been incurred by
the Contractor in the Total Performance of the Work and for which the Owner might in any way be
held responsible, have been paid in full except holdback monies properly retained.
21.10
No certificate for payment, or any payment made thereunder, nor any partial or entire use of
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occupancy of the Work by the Owner shall constitute an acceptance of any work or products not in
accordance with the Contract Documents.
21.11
The issuance of the Certificate of Total Performance shall constitute a waiver of all claims by the
Owner against the Contractor except those previously made in writing and still unsettled, if any, and
those arising from the provisions of GC 31 - Warranty, or those arising from negligence on the part of
the Contractor.
The acceptance of the Certificate of Total Performance or of the payment due thereunder shall
constitute a waiver of all claims by the Contractor against the Owner except those made in writing
prior to his application for payment upon Total Performance of the Contract and still unsettled, if any.
21.12
The holdback to be used by the Engineer/Architect when issuing certificate of payment will be ten
(10) percent of the value of the Work completed at the date of the Contractor's claim.
21.13
Notwithstanding the provisions of 21.3 or any other provision of this Contract, the Owner may:
in the event of a claim by the Owner against the Contractor for damages arising out of the
performance or non-performance of the Contract, withhold payment of any amount equal to
the alleged damages until the liability for damages is established and no amount of interest
will be paid on amounts held under this clause;
b)
c)
PL
a)
22.2
22.3
Unless otherwise stated in Supplementary General Conditions the Contractor shall pay all government
sales taxes, customs duties and excise taxes with respect to the Contract.
SA
22.1
Any increase or decrease in costs to the Contractor due to changes in such taxes and duties after the
date of the Agreement and up to the agreed date of completion shall increase or decrease the Contract
Price accordingly. If the Owner so desires the Contractor is to co-operate with the Engineer/Architect
and Owner and permit access to books and records in order to establish the amount of such taxes
involved.
The Contractor shall maintain full records of his estimates of and actual cost to him of the Work
together with all proper tender calls, quotations, contracts, correspondence, invoices, receipts and
vouchers relating thereto, shall make them available to audit and inspection by the Owner, the Auditor
General for Newfoundland or by persons acting on their behalf, shall allow them to make copies
thereof and to take extracts therefrom, and shall furnish them with any information which they may
require from time to time in connection with such records.
23.2
The Contractor shall obtain all permits, licenses and certificates and pay all fees required for the
performance of the Work which are in force at the date of tender submission (but this shall not include
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23.4
The Contractor shall not be responsible for verifying that the Contract Documents are in compliance
with the applicable laws, ordinances, rules, regulations and codes relating to the Work. If the Contract
Documents are at variance therewith, or changes which require modification to the Contract
Documents are made to any of the laws, ordinances, rules, regulations and codes by the authorities
having jurisdiction subsequent to the date of tender submission, any resulting change in the cost shall
constitute a corresponding change in the Contract Price. The Contractor shall notify the
Engineer/Architect in writing requesting direction immediately any such variance or change is
observed by him.
23.5
If the Contractor fails to notify the Engineer/Architect in writing and obtain his direction as required in
GC 23.4 and performs any work knowing it to be contrary to any laws, ordinances, rules, regulations,
codes and orders of any authority having jurisdiction, he shall be responsible for and shall correct any
violations thereof and shall bear all costs, expense and damages, attributable to his failure to comply
with the Provisions of such laws, ordinances, rules, regulations, codes and orders.
PL
23.3
GC 24 PATENT FEES
The Contractor shall pay all royalties and patent licence fees required for the performance of the
Contract and such royalties or fees shall be deemed to have been included in the contract price. He
shall hold the Owner harmless from and against all claims, demands, losses, costs, damages, actions,
suits or proceedings arising out of the Contractor's performance of the Contract which are attributable
to an infringement or an alleged infringement of any patent or invention by the Contractor or anyone
for whose acts he may be liable.
24.2
The Owner shall hold the Contractor harmless against all claims, demands, losses, costs, damages,
actions, suits, or proceedings arising out of the Contractor's performance of the Contract which are
attributable to an infringement or an alleged infringement of any patent or invention in executing
anything for the purpose of the Contract, the model, plan or design of which was supplied to the
Contractor by the Owner.
SA
24.1
GC 25 WORKMEN'S COMPENSATION
25.1
Prior to commencing the Work and prior to receiving payment on Substantial and Total Performance
of the Work, the Contractor shall provide evidence of compliance with all requirements of the
Province of the place of building with respect to workmen's compensation including payments due
thereunder.
25.2
At anytime during the term of Contract, when requested by the Engineer/Architect, the Contractor
shall provide such evidence of compliance by himself and any or all of his Subcontractors.
GC 26 LIABILITY INSURANCE
26.1
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and maintain, either by way of a separate policy or by an endorsement to his existing policy,
Comprehensive General Liability insurance acceptable to the Owner and subject to limits set
out in detail in the Supplementary General Conditions inclusive per occurrence for bodily
injury, death, and damage to property including loss of use thereof.
The insurance shall be in the joint names of the Contractor and the Owner, shall also cover as
Unnamed Insureds all Subcontractors and anyone employed directly or indirectly by the
Contractor or his Subcontractors to perform a part or parts of the Work but excluding
suppliers whose only function is to supply and or transport products to the project site.
c)
The insurance shall also include as Unnamed Insureds the architectural and engineering
consultants of the Owner and Engineer/Architect.
d)
The insurance shall preclude subrogation claims by the Insurer against anyone insured
thereunder.
e)
The Comprehensive General Liability Insurance will not be limited to, but shall
include coverage for:
1)
premises and operations liability
2)
products or completed operations liability
3)
blanket contractual liability
4)
cross liability
5)
elevator and hoist liability
6)
contingent employer's liability
7)
personal injury liability arising out of false arrest, detention or imprisonment or
malicious prosecution, libel, slander or defamation of character, invasion of privacy,
wrongful eviction or wrongful entry.
8)
shoring, blasting, excavating, underpinning, demolition, pile driving and caisson
work, work below ground surface, tunnelling and grading as applicable.
9)
liability with respect to non-owned licenced vehicles.
26.2
PL
b)
26.3
SA
The Contractor shall provide and maintain liability insurance in respect of owned licenced vehicles
subject to limits set out in detail in the Supplementary General Conditions inclusive.
26.4
All liability insurance shall be maintained continuously until twelve (12) months after the date the
Engineer/Architect issues a certificate of Substantial Performance.
26.5
The Contractor shall provide the Owner with evidence of all liability insurance prior to the
commencement of the work and shall promptly provide the Owner with a certified true copy of each
insurance policy.
26.6
All liability insurance policies shall contain an endorsement to provide all Named Insureds with prior
notice of changes and cancellations. Such endorsements shall be in the following form:
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"It is understood and agreed that the coverage provided by this policy will not be changed or amended
in any way nor cancelled until thirty (30) days after written notice of such change or cancellation shall
have been given to all Named Insureds"
GC 27 PROPERTY INSURANCE
The Contractor shall provide and maintain property insurance, acceptable to the Owner, insuring the
full value of the Work in the amount of the Contract Price and the full value as stated of products for
incorporation into the Work. The insurance shall be in the joint names of the Contractor, the Owner,
the Subcontractors and all others having an insurable interest in the Work. The policies shall include
all Subcontractors as Unnamed Insureds or, if they specifically request, as Named Insureds. The
Policies shall preclude subrogation claims by the Insurer against anyone insured thereunder.
27.2
Such coverage shall be provided for by EITHER an ALL Risks Builder's Risk Policy OR by a
combination of a standard Builders' Risk Fire Policy including Extended Coverage and Malicious
Damage Endorsements and a Builders' Risk Difference in Conditions Policy providing equivalent
coverage, of Piers, Wharves & Docks Government Structures Policy.
27.3
The policies shall insure against all risks of direct loss or damage subject to the exclusion specified in
the Supplementary General Conditions. Such coverage shall apply to:
27.1
all products, labour and supplies of any nature whatsoever, the property of the Insureds or of
others for which the Insureds may have assumed responsibility, to be used in or pertaining to
the site preparations, demolition of existing structures, erections and/ or fabrication and/ or
reconstruction and/ or repair of the insured project, while on the site or in transit, subject to
the exclusion of the property specified.
b)
the installation, testing and any Subsequent use of machinery and equipment including
boilers, pressure vessels or vessels under vacuum.
c)
damage to the Work caused by an accident to and/or the explosion of any boiler(s) or
pressure vessel(s) forming part of the Work.
SA
PL
a)
Such coverage shall exclude construction machinery, equipment, temporary structural and other
temporary facilities, tools, and supplies used in the construction of the Work and which are not
expendable under the Contract.
27.4
The Contractor shall provide the Owner with evidence of all insurance prior to commencement of the
Work and shall promptly provide the Owner with a certified true copy of each insurance policy.
Policies provided shall contain an endorsement to provide all Named Insureds with prior notice of
changes and cancellations. Such endorsements shall be in the following form: "It is understood and
agreed that the coverage provided by this policy will not be changed or amended in any way or
cancelled until thirty 30 days after written notice of such change or cancellation shall have been given
to all Named Insureds".
Engineer/Architect issues a certificate to Total Performance. All such insurance shall provide for the
Owner to take occupancy of the Work or any part thereof during the terms of this insurance. Any
increase in the cost of this insurance arising out of such occupancy shall be at the Owner's expense.
27.6
The policies shall provide that, in the event of a loss, payment for damage to the Work, shall be made
to the Owner and the Contractor as their respective interests may appear. The Contractor shall act on
behalf of the Owner and himself for the purpose of adjusting the amount of such loss with the Insurers.
On the determination of the extent of the loss, the Contractor shall immediately proceed to restore the
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Work and shall be entitled to receive from the Owner (in addition to any sum due under the Contract)
the amount at which the Owner's interest in the restoration work has been appraised, such amount to
be paid as the work of the restoration proceeds and in accordance with the Engineer/Architect's
certificates for payment. Damage shall not affect the rights and obligations of either party under the
Contract except that the Contractor shall be entitled to such reasonable extension of time for
Substantial and Total Performance of the Work as the Engineer/Architect may decide.
27.7
The Contractor and/ or his Subcontractors as may be applicable shall be responsible for any deductible
amounts under the policies and for providing such additional insurance as may be required to protect
the insureds against loss on items excluded from the policies.
28.2
The Contractor shall protect the Work and the Owner's property from damage and shall be responsible
for any damage which may arise as the result of his operations under the Contract except damage
which occurs as the result of :
28.1
b)
PL
a)
Should any damage occur to the Work and/or Owner's property for which the Contractor is responsible
he shall make good such damage at his own expense or pay all costs incurred by others in making
good such damage.
28.4
Should any damage occur to the Work and/or Owner's property for which the Contractor is not
responsible as provided in GC 17 he shall make good such damage to the Work, and, if the Owner so
directs to the Owner's property, and the Contract Price and Contract Time shall be adjusted in
accordance with GC 18 - Changes in the Work.
SA
28.5
28.3
The Contractor shall be completely responsible for the safety of the work as it applies to protection of
the public and property and the construction of the work.
The Codes that must be followed and enforced for safety are:
28.6
a)
b)
c)
Canadian Code for Construction Safety (Latest Edition) as issued by the Associate
Committee of the National Building Code.
Any person not following the stipulated safety regulations shall be dismissed
If either party to this Contract should suffer damage in any manner because of any wrongful act or
neglect of the other party or anyone employed by him then he shall be reimbursed by the other party
for such damages. The party reimbursing the other party shall be subrogated to the rights of the other
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29.3
If the Contractor has caused damage to any Other Contractor on the work, the Contractor agrees upon
due notice to settle with such Other Contractor by agreement or arbitration, if he will so settle. If such
Other Contractor sues the Owner on account of any damage alleged to have been so sustained, the
Owner shall notify the Contractor and may require the Contractor to defend the action at the
Contractor's expense. If any final order or judgment against the Owner arises therefrom the Contractor
shall pay or satisfy it and pay all costs incurred by the Owner.
29.4
If the Contractor becomes liable to pay or satisfy any final order, judgment or award against the Owner
then the Contractor, upon undertaking to indemnify the Owner against any and all liability for costs,
shall have the right to appeal in the name of the Owner such final order or judgment to any and all
courts of competent jurisdiction.
29.2
GC 30 BONDS
The Owner shall have the right during the period stated in the tender documents for acceptance of the
tender to require the Contractor to provide and maintain in good standing until the fulfillment of the
Contract, bonds covering the faithful performance of the Contract including the requirements of the
Warranty provided for in GC 31 Warranty, and the payment of all obligations arising under the
Contract.
30.2
All such bonds shall be issued by a duly incorporated surety company approved by the Owner and
authorized to transact a business or surety-ship in the Province of Newfoundland.
30.3
If bonds are called for in the tender documents or supplementary general conditions or instructions to
bidders, the costs attributable to providing such bonds shall be included in the tender price.
30.5
SA
30.4
PL
30.1
Should the Owner require the provision of a bond or bonds by the Contractor other than those
provided for under 30.3, the Contract Price shall be increased by all costs attributable to providing
such bonds.
The Contractor shall promptly provide the Owner with any bonds that are required.
GC 31 WARRANTY
31.1
Without restricting any warranty or guarantee implied or stipulated by law the Contractor shall at his
own expense rectify and make good any defect or fault however caused appearing within a period of
one year from the date of Substantial Performance of the Work provided that the Contractor shall not
be responsible for any defect or fault resulting from the design of the Work.
31.2
The Contractor shall correct and/or pay for any damage to other work resulting from any corrections
required under the conditions of 31.1.
31.3
Neither the Engineer/Architect's final certificate nor payment thereunder shall relieve the Contractor
from his responsibility hereunder.
31.4
The Owner and/or the Engineer/Architect shall give the Contractor written notice of observed defects
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promptly.
32.2
The Contractor shall have the sole responsibility for the design, erection, operation, maintenance and
removal of temporary structural and other temporary facilities and the design and execution of
construction methods required in their use. The Contractor shall engage and pay for registered
professional engineering personnel skilled in the appropriate discipline to perform these functions
where required by law or by the Contract Documents and in all cases where such temporary facilities
and their method of construction are of such a nature that professional engineering skill is required to
produce safe and satisfactory results.
32.3
Notwithstanding the provisions of paragraphs 32.1 and 32.2 above, or any provisions to the contrary
elsewhere in the Contract Documents where such Contract Documents include designs for temporary
structural and other temporary facilities and methods shall be deemed to comprise part of the overall
design of the Work and the Contractor shall not be held responsible for that part of the design or the
specified method of construction. The Contractor shall, however, be responsible for the execution of
such design or specified method of construction in the same manner that he is responsible for the
execution of the Work.
32.4
The Contractor shall carefully examine the Contract Documents and shall promptly report to the
Engineer/Architect any error, inconsistency or omission he may discover. The Contractor shall not be
held liable for any damage resulting from any such errors, inconsistencies or omissions in the Contract
Documents.
PL
32.1
33.1
33.2
33.3
SA
GC 33 SUPERINTENDENCE
The Contractor shall employ a competent superintendent and necessary assistants who shall be in
attendance at the Work site at all times while work is being performed.
The superintendent shall be satisfactory to the Engineer/Architect and shall not be changed except for
good reason and only then after consultation with and agreement by the Engineer/Architect.
The superintendent shall represent the Contractor at the Work site and directions given to him by the
Engineer/Architect shall be held to have been given to the Contractor. Important directions shall be
confirmed to the Contractor in writing, other directions will be so confirmed if requested.
Unless otherwise stipulated elsewhere in the Contract Documents, the Contractor shall provide and
pay for all labour products, tools, construction equipment and machinery, water, heat, light, power,
transportation and other facilities and services necessary for the proper performance of the Work.
34.2
All products provided shall be new unless otherwise specified in the Contract Documents. Any
products which are not specified shall be of a quality best suited to the purpose required and their use
subject to the approval of the Engineer/Architect.
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34.3
The Contractor shall at all times maintain good order and discipline among his employees engaged on
the Work and shall not employ on the Work any unfit person nor anyone not skilled in the task
assigned to him.
GC 35 SUBSURFACE CONDITIONS
35.1
The Contractor shall promptly notify the Engineer/Architect in writing if, in his opinion, the
subsurface conditions at the Project site differ materially from those indicated in the Contract
Documents or as may have been represented to him by the Owner or Engineer/Architect before the
time of tender submission.
35.2
After prompt investigation, should the Engineer/Architect determine that conditions do differ
materially, he shall issue appropriate instructions for changes in the Work as provided for in GC 18 Changes in the Work.
GC 36 USE OF PREMISES
The Contractor shall confine his apparatus, the storage of products and the operations of his workmen
to limits indicated by laws, ordinances, permits or by directions of the Engineer/Architect and shall not
unreasonably encumber the premises with his products.
36.2
The Contractor shall not load or permit to be loaded any part of the Work with a mass that will
endanger its safety.
36.3
The Contractor shall enforce the Engineer/Architect's instructions regarding signs, advertisements,
fires and smoking.
36.4
Unless otherwise provided the Contractor shall, at his own expense, and without extra cost to the
Owner, make suitable provision to accommodate all traffic either pedestrian or vehicular, over or
around, the project upon which work is being performed, in a manner satisfactory to the
Engineer/Architect.
PL
SA
36.5
36.1
The Contractor shall provide and maintain at his own expense such fences, barriers, signs, lights and
watchmen as may be necessary to prevent avoidable accidents to residents or to the public generally.
The Contractor shall maintain the Work in a tidy condition and free from the accumulation of waste
products and debris, other than that caused by the Owner, other Contractors or their employees.
37.2
When the Work is Substantially Performed the Contractor shall remove all of his surplus products,
tools, construction machinery and equipment not required for the performance of the remaining work.
He shall also remove any waste products and debris and leave the Work clean and suitable for
occupancy by the Owner unless otherwise specified.
37.3
When the Work is Totally Performed, the Contractor shall remove all of his surplus products, tools,
construction machinery and equipment. He shall also remove any waste products and debris, other
than that caused by the Owner, other Contractors or their employees.
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38.1
The Contractor shall do all cutting and remedial work that may be required to make the several parts of
the Work come together properly.
38.2
The Contractor shall co-ordinate the schedule for the Work to ensure that this requirement is kept to a
minimum.
38.3
Should the Owner or anyone employed by him be responsible for ill-timed work necessitating cutting
and/or remedial work shall be valued as provided in GC 19
Valuation and Certification of Changes
in the Work and added to the Contract Price.
38.4
Cutting and remedial work shall be performed by specialists familiar with the materials affected and
shall be performed in a manner to neither damage nor endanger any Work.
GC 39 INSPECTION OF WORK
The Owner and his authorized representatives shall have access to the Work for inspection wherever it
is in preparation or progress. The Contractor shall co-operate to provide reasonable facilities for such
access.
39.2
If special tests, inspections or approvals are required by the Contract Documents, the Engineer/
Architect's instructions or the laws or ordinances of the place of building the Contractor shall give the
Engineer/Architect timely notice requesting inspection. Inspection by the Engineer/ Architect shall be
made promptly. The Contractor shall arrange inspection by other authorities and shall notify the
Engineer/Architect of the date and time.
39.3
If the Contractor covers or permits to be covered any of the Work that is subject to inspection or
before any special tests and approvals are completed without the approval of the Engineer/Architect,
the Contractor shall uncover the Work, have the inspection satisfactorily completed and make good the
Work at his own expense.
39.4
Examination of any questioned work maybe ordered by the Engineer/Architect. If such work be found
in accordance with the Contract the Owner shall pay the cost of examination and replacement, together
with the cost of subsequent verification testing. If such Work be found not in accordance with the
Contract through the fault of the Contractor, the Contractor shall pay such cost.
PL
SA
39.5
39.1
The Contractor shall furnish promptly to the Engineer/Architect two (2) copies of all certificates and
inspection reports relating to the Work.
GC 40 REJECTED WORK
40.1
Defective Work, whether the result of poor workmanship, use of defective products or damage through
carelessness or other act or omission of the Contractor, and whether incorporated in the Work or not,
which has been rejected by the Engineer/Architect as failing to conform to the Contract Documents
shall be removed promptly from the premises by the Contractor and placed and/or reexecuted
promptly in accordance with the Contract Documents at the Contractor's expense.
40.2
Other Contractor's work destroyed or damaged by such removals or replacements shall be made good
promptly at the Contractor's expense.
40.3
If in the opinion of the Engineer/Architect it is not expedient to correct defective work not done in
accordance with the Contract Documents, the Owner may deduct from the Contract Price the
difference in value between the Work as done and that called for by the Contract, the amount of which
shall be determined in the first instance by the Engineer/Architect.
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GC 41 SHOP DRAWINGS
The term "shop drawings" means drawings, diagrams, illustrations, schedules, performance charts,
brochures, and other data which are to be provided by the Contractor to illustrate details of a portion of
the Work.
41.2
The Contractor shall arrange for the preparation of clearly identified shop drawings as called for by the
Contract Documents or as the Engineer/Architect may reasonably request.
41.3
Prior to Submission to the Engineer/Architect the Contractor shall review all shop drawings. By this
review the Contractor represents that he has determined and verified all field measurements, field
construction criteria, materials, catalogue numbers and similar data or will do so and that he has
checked and coordinated each shop drawing with the requirements of the Work and of the Contract
Documents. The Contractor's review of each shop drawing shall be indicated by stamp, date and
signature of a responsible person.
41.4
The Contractor shall submit shop drawings to the Engineer/Architect for his review with reasonable
promptness and in orderly sequence so as to cause no delay in the Work or in the Work of Other
Contractors. If either the Contractor or the Engineer/Architect so requests they shall jointly prepare a
schedule fixing the dates for submission and return of shop drawings. Shop drawings shall be
submitted in the form of a responsible transparency or prints as the Engineer/Architect may direct. At
the time of submission the Contractor shall notify the Engineer/Architect in writing of any deviations
in the shop drawings from the requirements of the Contract Documents.
41.5
The Engineer/Architect will review and return shop drawings in accordance with any schedule agreed
upon, or otherwise with reasonable promptness so as to cause no delay. The Engineer/Architect's
review shall be for conformity to the design concept and for general arrangement only and such review
shall not relieve the Contractor of responsibility for errors or omissions in the shop drawings or of
responsibility for meeting all requirements of the Contract Documents unless a deviation on the shop
drawings has been approved in writing by the Engineer/Architect.
41.6
The Contractor shall make any changes in shop drawings which the Engineer/Architect may require
consistent with the Contract Documents and resubmit unless otherwise directed by the
Engineer/Architect. When resubmitting the Contractor shall notify the Engineer/ Architect in writing
of any revisions other than those requested by the Engineer/Architect.
SA
PL
41.1
GC 42 SAMPLES
42.1
The Contractor shall submit for the Engineer/Architect's approval such standard manufacturers'
samples as the Engineer/Architect may reasonably require. Samples shall be labelled as to origin and
intended use in the Work and shall conform to the requirements of the Contract Documents.
42.2
The Contractor shall provide samples of special products, assemblies, or components when so
specified. The cost of such samples not specified shall be authorized as an addition to the Contract
Price as provided in GC 18 - Changes in the Work.
The Contractor shall furnish to the Engineer/Architect test results and mix designs as may be
requested. The testing company must first be approved by the Engineer/Architect.
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43.2
The cost of tests and mix designs beyond those called for in the Contract Documents or beyond those
required by laws, ordinances, rules and regulations relating to the work and the preservation of public
health, shall be authorized as an addition to the Contract Price as provided in GC 18 - Changes in the
Work.
44.2
Requests for substitutions must be accompanied by sufficient information in the form of shop
drawings, manufacturer's literature, samples and other data to permit proper investigation of the
substitutes proposed. Also, indicate the increase or decrease in price.
44.3
Whenever a substitute is proposed for approval the Contractor shall guarantee that such proposed
substitute will not adversely affect the space requirements allocated on the drawings for the material
specified, and he shall agree to bear any additional expense incurred due to his use of the proposed
substitute.
44.4
The Engineer/Architect may accept or reject any or all of the proposed substitutions as he sees fit, and
his decision on a question of equality shall be final.
PL
44.1
GC 45 LABOUR
In carrying out his duties under this contract, the Contractor should comply with all Provincial and
Federal legislation respecting labour and the employment of labour, where applicable, including the
labour standards code and shall not operate in conflict with the Human Rights legislation. In the
employment of labour, preference should be given to persons normally resident in Newfoundland and
Labrador.
45.2
The Contractor and Subcontractors shall maintain and keep available for inspection by the Owner, a
record of the names and addresses of all men employed on the Project.
45.4
45.5
SA
45.3
45.1
There shall be no discrimination in the selection of workers for employment on the project in respect
of race, religious views or political affiliation, and the office of the Canada Manpower will be used in
the recruitment of workers wherever practicable.
The Contractor shall pay fair wages and shall pay rates of wages and allowances to the various classes
of labour not less favourable than those prevailing in the area where the Work is being performed.
Preference will be given to Newfoundland and Labrador Contractors and Subcontractors and to
products manufactured, processed or supplied in Newfoundland and Labrador, in accordance with the
Provincial Preference Act, associated regulations and guidelines.
GC 47 TIME OF ESSENCE
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SA
PL
47.1
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