exercises-FIDIC

Read clause18 and answer the following questions:1.Which party shall be the insuring party (应投保方/投保人)for the works, goods, and Contractor’s equipment?Unless otherwise stated in the particular conditions, the insurance shall be effected (taken out) and maintained by the contractor as the insuring party.Insure against one’s liability for loss or damages or expenses, or claims.If the contractor fails to take out the insurance , the employ may choose to effect the insurance and pay premiums due.__ The contractor shall pay the premiums to the Employer and the contract price shall be adjusted accordingly.The main obligation of the policyholder is to pay the premiums in accordance with the policy.2.Which party shall be the insuring party for insuringagainst injury to persons and damage to property? Unless otherwise stated in the particular conditions, the insurance shall be effected (taken out) and maintained by the contractor as the insuring party.3.If the contractor’s equipment was insured and then bedamaged by a gang of terrorists, which party shall be liable for the damage?The EmployerUnder sub-clause 18.2 of the general conditions, insurance for Contractor’s equipment shall cover all loss and damage from any cause not listed in sub-clause 17.3. In t his case, contractor’s equipment was caused by terrorists, which falls into one of the risks listed in sub-clause 17.3. Therefore, the employer shall be liable for such damage under sub-clause 17.4.Risk management4.What measures can the contractor take in order toavoid or minimize injury to his employees?The contractor shall effect and maintain insurance for Contractor’s personnel. In addition, education concerning safety should be given in order to arouse their awareness of safety.5.state the period of coverage(保险期限) forcontractor’s personnel.The insurance shall be maintained in full force and effect during the whole time that these personnel are assisting in the execution of the Works.在整个施工期间为其现场机构雇用的全部人员6.When shall the contractor and the Employernegotiate the terms of the relevant insurance?对保险条件进行谈判Before/ prior to the issue of the letter of acceptance.7.Who are the parties in an insurance agreement?The parties include the insurer（保险人）, the insured(投保人/被保险人）, and the beneficiaries(受益人)Generally, an insurance contract includes, at a minimum, the following elements: the parties, the premiums, the period of coverage, the particular loss event covered , the amount of coverage(the amount to be paid to the insured or beneficiary in the event of loss), and exclusions (除外责任: events not covered).Read from the Sub-clause20.2 to 20.8 and think about the following questions.1. What are the typical ways to resolve a dispute between the contractor and the employer?1)amicable settlement;2)Litigation /arbitration3）alternative dispute resolution (ADR)2. Why is it provided that “for a DAB of three persons, the DAB shall be deemed to have received such reference on the date when it is received by the chairman of the DAB?” (Refer to sub-clause 20.4)To make sure when shall the DAB gives its decision concerning the dispute referred，even to offer one of the parties to the contract to give a notice of dissatisfaction if the DAB fails to give its decision within the stated period.3. When shall a decision made by a DAB become effective?If the DAB has given its decision as to a matter in dispute to both Parties, and no notice of dissatisfaction has been given by either Party within 28 days after it received the DAB’s decision, then the decision shallbecome final and binding upon both Parties.4. How do you understand the statement that the DAB shall be deemed to be not acting as arbitrators? (Refer to sub-clause 20.6)The arbitrator(s) shall have full power to open up（公开）, review and revise any certificate, determination, instruction, opinion or valuation of the Engineer, and any decision of the DAB, relevant to the dispute.The decision made by the arbitral tribunal is final and binding.5. Can a dispute be directly referred to arbitration?In most cases, a dispute shall be referred to A DAB under sub-clause 20.4. However, if there is no DAB in place under sub-clause 20.8, it can be directly referred to arbitration under sub-clause 20.6.6. In what way a decision made by a DAB is different from an award given by an arbitral court?The decision made by a DAB usually becomes temporarily binding until revised by subsequent arbitration or court proceedings, while the award given by a tribunal is final and binding.When shall a notice of termination be given?1.1）Under Sub-clause 15.2, if the notice of termination is given by the Employer, it shall begiven 14 days prior to theHowever it can be immediately given if the event or circumstance is in accordance withSub-paragraph (e), (f) in Sub-Clause 15.2.2）Under Sub-clause 16.2, if the notice of termination is given by the Contractor, it shallbe given 14 days prior to the termination inmost cases. However it can be immediatelygiven if the event or circumstance is inaccordance with Sub-paragraph (f), (g) ofSub-Clause 16.2.3）Under Sub-clause 19.6，If the execution of substantially all the Works in progress isprevented for a continuous period of 84 daysby reason of Force Majeure of which noticehas been given under Sub-Clause 19.2 [Noticeof Force Majeure], or for multiple periodswhich total more than 140 days due to the samenotified Force Majeure, then either Party maygive to the other Party a notice of termination ofthe Contract见索即付的保函1)If the notice of termination is given by theEmployer in accordance with Sub-Clause 15.2, the notice shall become effective 28 days after the later of the dates on which the Contractor receives this notice or the Employer returns the Performance Security. （refer to sub-clause 15.5）2)If the notice of termination is given by the Contractorin accordance with Sub-Clause 16.2, the notice shallbecome effective 28 days after the Employer receives the notice.3)If the notice of termination is given by the Contractorin accordance with Sub-Clause 19.6, the notice shall become effective 7 days after the notice is given.1)Sub-Clause 15.2, it shall take effect _28 days after the later of the dates on which the Contractor receives this notice or the Employer returns the performance security.2)Sub-Clause 16.2, it shall take effect 28 days after the Employer receives the notice..3)If the notice is given either by the Employer or theCotractorunder Sub-Clause 19.6, it shall take effect7 days after the notice is given.If a loss or damage occurs during the course of executing the works, which party shall be liable to the loss or damage?1)If any loss or damage happens to the Works, Goodsor Contractor’s Documents during the period whenthe Contractor is responsible for their care, from any cause not listed in Sub-Clause 17.3 [Employer’s Risks], the Contractor shall rectify the loss or damage at the Contractor’s risk and cost;2)If the loss or damage is attributable to theemployer’s risks, the Employer shall be liable to such loss or damage.3)It should be noted that the contractor(the insuringparty应投保方) can resort to the insurance policy for the works, goods or contractor’s documents in order to minimize the loss or damage.Answer the following questions within 15 minutes and hand in your paper.1.What is the prerequisite for the employer to pay advance payment?Under the condition that the employer receives the interim payment certificate for the first instalment and performance security and advance payment guarantee as well.2.If the contractor submits his application for interimpayment on June 7 and the engineer acknowledges receipt on that day, when shall the date for interim payment by Employer be expired?August 23.Who has the right to initiate an instruction? Does an instruction constitute a variation? Why?No, it doesn’t necessarily constitute a variation.A variation shall mainly involve changes to the scope , design , quality of the works.A variation shall be consistent with the provision of sub-clause 13.1.“if an instruction constitutes a variation, clause 13 shall apply.”4.State the major reason for the provision that the contractor shall be entitled to terminate the contract if prolonged suspension affects the whole of the works. For the sake of the contractor.The works has been suspended by the Engineer for more than 84 days and the whole of the works is affected. Therefore, to terminate the contract by the contractor is to avoid great loss and potential disputes involved.1)What are the consequences of suspension?Tip: firstly, figure out the party who shall beresponsible for the suspension.2)Supposing the Contractor fail to complete theworks within the time for completion, what arethe obligations under the Contract the Contractshall perfom?3)Write brifely about the provisons of programmeand progress report.Exercises 3 (Conditions of Contract for Construction) Part I Translate the following terms into Chinese.1.Force Majeure 不可抗力2. Suspension and Termination by Contractor承包商中止和终止3. Indemnities保障4. the insuring Party 保险方5. Insurance against injury to Persons and Damage to Property对人身伤害和财产损害的保险6. the joint insured 联合保险7. release from performance under the Law在法律下发布8. joint and several liability 连带责任，共同责任;9. Erection All Risks Insurance法]安装工程一切险;10. infringements of intellectual property right知识产权侵权Part II Short Answer Questions1. Under what conditions shall the Contractor be entitledto suspension of the work or reduction of the rate of work?2. According to sub-paragraph (d) of Sub-Clause 15.2,the Employer shall be entitled to terminate the Contract if the Contractor subcontracts the whole of the Works or assign the Contract without required agreement. Why is it provided in this way? Please justify the provision.3. If an event or a circumstance can be construed asForce Majeure, what conditions shall be satisfied? 4. Which Party shall be the insuring Party for insuranceagainst injury to persons and Damage to Property and for insurance for Works?5. Why does the Sub-Clause 4.17 provide that “The Contractor shall not remove from the Site any major items of Contractor’s Equipment without the consent of the Engineer”? If the Contractor violates the provision, what could be the possible consequence?6. Can insurance cover the loss and damage from any cause listed in Sub-Clause 17.3[Employer’s Risks]? If it excludes such loss and damage, which Party shallbear the cost for rectifying the loss and damage?Part III Case Study1. Suppose a gang of terrorists raid the Contractor’s Site and destroy a major equipment of the Contractor. And the Contractor has insured the equipment. In this case, is the insurer liable for compensating for the loss? Can the Sub-Clause 17.2 be applied to the case? Why?2.Study the case and points out the mistakes the Contractor makes and offers some tips for the Contractor.Suppose a contractor enters into an agreement with an employer for the housing works known as Golden Sunlight and the agreement is based on the Conditions of Contract for Constructions.1) Soon after the commencement of works, a major earthquake struck the Country, the Contractor gave notice to the Employer 28 days later after the Contractor became aware of the earthquake constituting Force Majeure;2) During the execution of the works, the contractor found out the material for building the basement provided in the Specification was not consistent withthat in the Contract Agreement. The Contractor chose the material provided in the Specification because it was cheaper than the one in the Contract Agreement;3) Prior to the completion of the Works, it rained heavily for 3 weeks on end and in the wake of the unexpected rain, the contractor gives notice to the Engineer stating that he suffered delay because of the unforeseeable physical condition and he shall be entitled to an extension of time for such delay.。