CEYLON ELECTRICITY BOARD SRI LANKA

Bidding Document
Single-Stage, Two-Envelope Bidding Procedure

Augmentation of Grid Substations for Absorption of Renewable Energy Project (AGSAREP) Lot A

Augmentation of Existing 132/33kV Grid Substations at Rantambe, Ratnapura & Wimalasurendra Power Station.

VOLUME 8 of 8
Section 7: General Conditions of Contract (GCC) Section 8: Conditions of Particular Application (CPA) Section 9: Contract Forms (COF)

Transmission Division Ceylon Electricity Board, P.O. Box 540, Colombo 02, Sri Lanka. March 2010 Document Revision 2

Transmission Design

Table of Contents Summary Description

Volume 1 of 8 Invitation for Bids Section 1: Instructions to Bidders (ITB) Section 2: Bid Data Sheet (BDS) Section 3: Evaluation and Qualification Criteria (EQC) Volume 2 of 8 Section 4: Bidding Forms (BDF) Part 1 Technical Bid Volume 3 of 8 Section 4: Bidding Forms (BDF) Part 2 Price Bid Section 5: Eligible Countries (ELC) Volume 4 of 8 Section 6: Employers Requirements (ERQ) Part I Scope of Works Volume 5 of 8 Section 6: Employers Requirements (ERQ) Part II Technical Specifications Volume 6 of 8 Section 6: Employers Requirements (ERQ) Part III Drawings Volume 7 of 8 Section 6: Employers Requirements (ERQ) Part IV Supplementary Information Volume 8 of 8 Section 7: General Conditions of Contract (GCC) Section 8: Conditions of Particular Application (CPA) Section 9: Contract Forms (COF)

Volume 8 of 8

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Table of Contents

Volume 8 of 8
Page Section 7: General Conditions of Contract (GCC) Section 8: Conditions of Particular Application (CPA) Section 9: Contract Forms (COF) 7-1 8-1 9-1

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Section 7
General Conditions of Contract (GCC)

Section 7 - General Conditions of Contract

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FIDIC Conditions of Contract For Plant and Design-Build

First Edition, 1999
A Publication of The International Federation of Consulting Engineers (FIDIC)

Copies can be obtained from: FIDIC Secretariat World Trade Center II P.O.Box 311 1215 Geneva 15 Switzerland Facsimile: 41 22 799 4901 Telephone 41 22 799 4905 E-mail fidic.pub@fidic.org

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Section 8
Conditions of Particular Applications (CPA)
The Conditions of Contract comprise the General Conditions, which form part of the Conditions of Contract for Plant and Design-Build First Edition 1999 published by the Fdration Internationale des Ingnieurs-Conseils (FIDIC), and the following Particular Conditions, which include amendments and additions to such General Conditions.

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SECTION 8
CONDITIONS OF PARTICULAR APPLICATIONS Sub-Clause 1.1 Definitions Add the following at the end of sub-para 1.1.1.5 of SubClause 1.1 by following: "Employer's Requirements" shall include the "Employer's Requirements - Part 1", "Employer's Requirements - Part 2", "Schedules - Part 1", "Schedules - Part 2" and "Drawings" in the bidding document. The "Employer's Requirements" shall also include the design criteria (if any), programme of work as included in the Contract and any alterations and modifications thereto in accordance with the Contract. Sub-Clause 1.2 Interpretation Sub-Clause 1.15 Confidentiality At the end of Sub Clause 1.2, insert: The word proposal is synonymous with bid and tender . Additional Sub-Clause: The Contractor shall treat the details of the contract as private and confidential, except to the extent necessary to carry out obligations under it. The Contractor shall not publish, permit to be published or disclose any particulars of the Contract in any trade or technical paper or elsewhere without the previous agreement of the Employer. Sub-Clause 1.16 Corrupt Practices The Anticorruption Policy requires the employer as well as bidders, suppliers, and contractors under contracts, observe the highest standard of ethics during the procurement and execution of such contracts. In pursuance of this policy, defines, for the purposes of this provision, the terms set forth below as follows: (i) corrupt practice means the offering, giving receiving, or soliciting, directly or indirectly, of any thing of value to influence the action

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of any party in the procurement process or the execution of a contract; (ii) fraudulent practice means a

misrepresentation or omission of facts in order to influence a procurement process or the execution of a contract; (iii) collusive practices means a scheme or arrangement between two or more bidders, with or without the knowledge of the Employer, designed to influence the action of any party in a procurement process or the execution of a contract; (iv) coercive practices means harming or

threatening to harm, directly or indirectly, persons, or their property to influence their participation in a procurement process, or affect the execution of a contract; will cancel the portion of the financing allocated to a contract if it determines at any time that a beneficiary engaged in corrupt, fraudulent, collusive, or coercive practices during the procurement or the execution of that contract. will sanction a party or its successor, including declaring ineligible, either indefinitely or for .a stated period of time, to participate in activities if it at any determines that the firm has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in competing for, or in executing contract; and will have the right to require suppliers and contractors to permit the Employer to inspect their accounts and records and other documents relating to the bid submission and contract performance and to have them audited.

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Sub-Clause 3.1 Engineers Duties and Authority

At the end of the clause insert: The Engineer shall obtain the specific approval of the Employer before taking action under the following clauses of the General Conditions of Contract. (a) Sub-Clause 4.4 Approving sub-contracting of any part of the Works (b) Sub-Clause 4.11 Certifying additional cost to the Contract Price (c) Sub-Clause 8.4 Granting an extension of time for completion (d) Sub-Clause 8.9 Suspending progress of part or all of the Works (e) (f) Clause 13 Sub-Clause 10.1 Issuing a variation Issuing Taking-Over

Certificate for the part or whole of the Works (g) Sub-Clause 11.9 Issuing Performance

Certificate for the Works Notwithstanding the obligation to obtain approval as set out above, if in the opinion of the Engineer, an emergency occurs affecting the safety of life or of the Works or of adjoining property, it may, without relieving the Contractor of any of its duties and responsibilities under the Contract, instruct the Contractor to execute all such work or to do all such things as may, in the opinion of the Engineer be necessary to abate or reduce the risk. The Contractor shall forthwith comply with the instructions of the Engineer despite the absence of approval of the Employer. The

Engineer shall determine the extra cost to the Contractor for carrying out of such instruction and obtain the Employers approval for an addition to the Contract Price.

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Additional SubClause Management Meetings

The Engineer or the Contractors Representative may require the other to attend a management meeting in order review the progress or the arrangements for future work. The Engineer shall record the business of management meetings and supply copies of the record to those attending the meeting and to the Employer. In the record, responsibilities for any actions to be taken shall be in accordance with the Contract.

Sub-Clause 4.2 Performance Security

At the end of the second paragraph of Sub-Clause 4.2, insert: The performance security shall be in the form of a bank guarantee, issued by a bank located in the country of the Employer or a foreign bank through a correspondent bank located in the country of the Employer.

Sub-Clause 4.3 Contractors Representative

At the end of Sub-Clause 4.3 add: If the Contractors Representative is not fluent in the English language, the Contractor shall make a competent interpreter available during all working hours.

Sub-Clause 4.17 Contractors Equipment

At the end of Sub Clause 4.17, insert: Contractors Equipment which is owned by the Contractor (either directly or indirectly) shall be deemed to be the property of the Employer with effect from its arrival on the Site. This vesting of property shall not: (a) affect the responsibility or liability of the Employer, (b) prejudice the right of the Contractor to the sole use of the vested Contractors Equipment for the purpose of the Works, or (c) affect the Contractors responsibility to operate,

maintain provide security for Contractors Equipment. The property in each item shall be deemed to revest in the

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Contractor when he receives either Engineers approval to remove it from the Site or the Taking-Over Certificate for the Works, whichever occurs first. Sub-Clause 4.22 Security of the Site At the end of Sub Clause 4.22, insert: (c) Any person or vehicle entering the sites at existing grid substations and power stations needs to obtain the approval of the Engineer. However, the Employer shall not be responsible for the security of any of the Contractors Personnel or equipment and for the Works under this Contract. Sub-Clause 4.25 Domestic Preference Security Add following Sub-Clause: If the Contractor consists of a joint venture which is awarded the contract through the application of the domestic preference, the Contractor, (i) throughout the execution of the Contract, shall not modify the work-sharing characteristics of the joint venture with which it satisfied the criteria of eligibility for being awarded the contract in application of the domestic preference; and (ii) concurrently with the above performance security, shall provide security (the domestic preference security) to guarantee that such characteristics of the joint venture will not be so modified. The domestic performance security shall be in the form of an on demand bank guarantee or standby letter of credit acceptable to the Employer, for an amount in a convertible currency equivalent to the difference between the joint ventures bid price and the bid price of the lowest foreign bid. The domestic preference security shall be issued either (a) by a bank located in the country of the Employer, or (b) directly by a foreign bank acceptable to the Employer. The domestic preference security shall be valid until the Contractor has substantially completed the Works and a Taking-Over Certificate has been issued by the Engineer in

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accordance with the provisions of Clause 10.1 and such security shall be returned to the Contractor together with the Taking-Over Certificate. The cost of providing the security shall be borne by the Contractor. Sub-Clause 5.2 Contractors Documents In Sub-Clause 5.2 delete sub-paragraph (a) and substitute: (a) Construction shall not commence until the Contractor receives from the Engineer approval of the

Construction Documents relevant to the design and construction of such parts; provided always that if the Engineer fails to give his ruling at the end of 28 days, despite the Contractors written reminder at the end of the 21 days review period, then the Contractor may proceed with the construction as though approval had been given. Sub-Clause 5.4 Technical Standards & Regulations Add the following sentence to the end of the Sub-Clause 5.4: In respect of technical specifications and standards, any national or international standards which promise to confer equal or better quality than the standards specified will also be acceptable. Sub-clause 6.8 Contractors Superintendence Insert at the end of Sub-Clause 6.8: A reasonable proportion of the contractors superintending staff shall have a working knowledge of the English language, or the Contractor shall have sufficient competent interpreters available on site during all working hours. Sub-Clause 6.12 Foreign staff At the end of Sub Clause 6.12 insert, The Contractor may engage such staff as are required in order to execute the Works. The Contractor must ensure that all such staff are provided with the required visas and

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work permits. The Contractor shall be responsible for the return to the place where they were recruited or to their domicile of all persons whom the Contractor recruited and employed for the purpose of or in connection with the Contract. The Contractor shall be responsible for such

persons as are to be returned until they shall have left the Site or, in the case of foreign national who have been recruited outside the Country, shall have left it. Sub-Clause 7.9 Restriction on Eligibility Add following Sub-Clause (a) Any materials, equipment, services or design services which will be incorporated in or required for the Contract, as well as the Contractors Equipment and other supplies, shall have their origin in eligible countries as listed in Section 8. (b) For the purpose of this clause, services means the works and all project-related services including design services. (c) For the purposes of this clause, origin means the place where the materials and equipment where mined, grown, produced, or manufactured, or from which the services are provided. (d) The origin of Goods and Services is distinct from the nationality of the Supplier. Sub-Clause 13.8 Adjustments for Changes in Costs
F=

Replace the Sub- clause with the following: The following formula shall be applicable for adjustments for changes in local costs.
0.966(V Vna ) 100

all inputs

( I xc I xb ) I xb

F V

= =

Price adjustment for the period Valuation of work done during the period

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concerned Vna Px Ixc = = = Value of non-adjustable element Percentage cost contribution of input X Current index for input X, published by ICTAD Ixb For = Base index for input X, published by ICTAD reference and complete interpretation,

detailed

guidance, explanation and specimen calculation of the price adjustment formula, refer ICTAD Formula Method for Adjustments to Contract Price due to Fluctuation in Prices, ICTAD publication number. ICTAD/ID/07, Second Edition June 2008. The percentage cost contribution of all inputs and reference prices stated in the table of adjustment data in Appendix to Tender shall be used. (ICTAD Institute for Construction Training and

Development) Sub-Clause 14.1 The Contract Price At the end of Sub Clause 14.1, insert: The Engineer shall agree or determine the value of those parts of the Works which are to be measured. In accordance with Sub-Clause 3.5. Measurement shall be made of the net actual quantities of those parts

notwithstanding local practice. Whenever the Engineer requires any part of the Works to be measured reasonable notice shall be given to the Contractors Representative, who shall: (a) promptly either attend or send another qualified representative to assist the Engineer in making the measurement, and (b) supply any particulars requested by the Engineer.

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If the Contractor fails to attend or send a representative, the measurement made by (or on behalf of) the Engineer shall be accepted as accurate. Except as other wise stated in the Contract, wherever any Permanent Works are to be measured by records, they shall be prepared by the Engineer. The Contractor shall, as and when requested, attend to examine and agree the records with the Engineer, and shall sign the same when agreed. If the Contractor does not attend to examine and agree these records, they shall be accepted as accurate. If the Contractor examines and disagrees the records, and/or does not sign them as agreed, then the Contractor shall notify the Engineer of the respects in which the records are asserted to be inaccurate. After receiving this notice, the Engineer shall review the records and either confirm or vary them. If the Contractor does not so notify the Engineer within 14 days after being requested to examine the records, they shall be accepted as accurate. The Sub-Clause 14.1(b) is not applicable, insert: All Goods imported by the Contractor into the Country shall be exempt from customs, other import duties and VAT enforced on them, if the Employers prior written approval is obtain for import. The Employer shall endorse the

necessary exemption documents prepared by the Cotractor for presentation in order to clear the Goods through Customs, and shall also provide the following exemption documents: (a) Request for the Customs Duty Exemption addressed to Director General (Dept. of Trade, Tariff and Investment Policy), General Treasury. (b) Request for the VAT Exemption addressed to Director General (Dept. of Fiscal Policy), General Treasury.

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If exemption is not then granted, the customs duties and VAT payable and paid shall be reimbursed by the Employer. All imported Goods, which are not incorporated in or expended in connection with the Works, shall be exported on completion of the Contract. Notwithstanding the foregoing, the Contractor shall pay all the prescribed dues and charges including customs duties on all his constructional plant, equipment, tools, materials, appliances, vehicles, and other things which he disposes of in the Island. After the Contractor receives the necessary authority for such disposal from the Engineer or Employer, the dues and charges payable shall be assessed in the manner and at the rates applicable at the time of disposal. The Contractor and his personnel shall comply with the regulations of the Government which may be issued from time to time relating to the disposal of items the import of which is under Government restrictions. Port dues, quay dues, except as set out above, any element of tax or duty inherent in the price of goods or services shall be deemed to be included in the accepted Contract Amount. The Contractor shall bear all expenses, other than customs duties, import duties and VAT, in connection with the landing and shipment of all such plant & equipment, materials, constructional plant and other things brought into or dispatched from Sri Lanka for the purpose of the Works, including second warehouse rent, port and lighter dues and pilot-age charges together with all handling and other charges, in respect of all such plant & equipment, materials, constructional plant and other things supplied by them. For the payment of customs, import duties and taxes on the constructional plant, equipment, tools, materials and vehicles which remain the property of the Contractor, the Contractor

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shall provide the Employer with a Bank Guarantee equal to the value of duties and taxes paid, from a bank acceptable to the Employer. The Bank Guarantee shall be valid during the total period plus one month the items are in Sri Lanka. Any payments under this clause will be in Sri Lanka Rupees. Computation of the Employers payments/reimbursements of such duties and taxes on such consignments will be limited to the CIF value. The Contractor shall complete all necessary customs documents and comply with all Customs Export and Exchange formalities as a precedent to the granting, by the Engineer, the consent for their removal from the site, in respect of all constructional plant, materials or other things which remain the property of the Contractor and to be re-exported out of Sri Lanka. Sub-Clause 14.2 Advance Payment At the end of the second paragraph of Sub-Clause 14.2, insert: The Advance Payment Guarantee shall be in the form of a bank guarantee, issued by a bank located in the country of the Employer or a foreign bank through a correspondent bank located in the country of the Employer. Sub-Clause 14.2 Add the following paragraph at the end of sub clause 14.6, Interim payment certificates issued for plant and equipment supplied from abroad will be issued on the submission of faxed copies and documents listed in sub-clause14.16 (1)(ii); (a) to (g) Sub-Clause 14.16 Terms of Payment Add following Sub-Clause In addition to the provisions under Sub-Clause 14.5, the terms of payment to the Contractor shall be as follows: 1) Payment in Foreign Currency Portion:

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The payment in the Foreign Currency portion shall be made in the following manner for items (ii) (iv), by means of irrevocable Letter of Credit (hereinafter referred to as L/C) to be established by the Employer through their bankers in Sri Lanka. If Contractor requires confirmed L/C, the confirmation charges shall be borne by the Contractor. Items (i) & (v) below, shall be made through direct payment. (i) Fifteen (15) percent of the total foreign portion of the works as Advance Payment within thirty (30) days of Interim Payment Certificate issued by Engineer against receipt of the Contractor's application for payment (invoice) supplemented with Advance

Payment Guarantee according to Sub-Clause 14.2 (ii) Seventy five (75) percent of C.I.F. value of Plant and materials (as per the list in sub clause 14.5(b) of Appendix to Tender) as Interim Payment within thirty (30) days from the date of faxed copy of Interim Payment Certificate as per Clause 14.6 which will be issued by the Engineer against receipt of Contractor's application for payment (Invoice) supplemented with the following documents: (a) Clean on board ocean vessel bill of lading or charter party bill of lading (The first and the second originals among three sets originally signed shall be submitted). (b) Contractor's detailed invoice showing

commodity description, quantity, unit price, total price and basis of delivery, reference to items as per Bill of Quantities, Schedule of Prices.

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(c) (d) (e) (f) (g)

Policy or certificate of insurance. Manufacturer's Guarantee. Inspection certificate. Packing List and Weight Certificate Other Documents required by the formalities of the Loan Agreement, if any.

(iii) Seventy five (75) percent of value of Plant & materials (as per the list in sub clause 14.5(c) of Appendix to Tender) as Interim Payment within thirty (30) days from the date of Interim Payment Certificate as per Clause 14.6 which will be issued by the Engineer against receipt of Contractor's application for payment (Invoice) supplemented with the following documents: (a) Certificate of arrival at site issued by the Employers Representative with respect to goods delivered to site. (b) Contractor's detailed invoice showing

commodity description, quantity, unit price, total price and basis of delivery, reference to items as per Bill of Quantities, Schedule of Prices. (c) (d) Manufacturer's Guarantee. Inspection certificate & permission to deliver to site issued by the Employers Representatives. (e) (f) Packing List and Weight Certificate Other Documents required by the formalities of

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the Loan Agreement, if any. (iv) Seventy five (75) percent of the remaining foreign portion of the works as Interim Payment on the progress of Work at Site, within thirty (30) days from the date of Interim Payment Certificate as per Clause 14.6, which will be issued by the Engineer against receipt of Contractor's application for remaining foreign payment (Invoice). (v) Five (5) percent of foreign portion of the works which have been taken over as the payment on issuance of Taking Over Certificate within sixty (60) days from the date of Taking Over Certificate of respective Section of the Works issued in accordance with Sub-Clause 10.1 and an Interim Payment Certificate issued by Engineer. (vi) Remaining Five (5) percent of foreign portion of the works within sixty (60) days from the date of Final Payment Certificate issued by the Engineer in accordance with Sub-Clause 14.13. The Final

Payment Certificate will be issued only once for whole Works. This will be released at the end of the defect liability period on the issue of the final payment certificate. 2) Local Portion - Sri Lanka Rupees The payment in the Sri Lanka Rupees shall be made in the following manner by a cheque from a local bank drawn in favour of the Contractor : (i) Fifteen (15) percent of total local portion of the works as Advance Payment within thirty (30) days of Interim Payment Certificate issued by the Engineer against receipt of the Contractors

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application for payment (invoice) supplemented with Advance Payment Guarantee according to

Sub-Clause 14.2. (ii) Seventy five (75) percent of local portion of the works as interim payment of the progress of works at Site, within thirty (30) days from the date of Interim Payment Certificate as per Clause 14.6, which will be issued by the Engineer against receipt of Contractor's application for interim payment. (iii) Five (05) of the local portion of works which have been taken over as the payment on issuance of Taking Over Certificate within sixty (60) days from the date of Taking Over Certificate of respective Section of the Works issued in accordance with Sub-Clause 10.1 and an Interim Payment Certificate issued by Engineer. (iv) Remaining five (5) percent of local portion of the works within sixty (60) days from the date of Final Payment Certificate issued by the Engineer in accordance with Sub-Clause 14.13. The

Performance Certificate will be issued only once for the whole Works. This will be released at the end of the defect liability period on the issue of the final payment certificate. 3) Payment for Additional Works within Contract Provisional Sum (i) Foreign Portion Ninety (90) percent of foreign portion of the works within thirty (30) days from the date of Interim Payment Certificate issued by the Engineer against receipt of Contractor's application for payment (invoice) supplemented with copy of the respective

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Engineers instructions and variation order and the documents as listed under item I) (ii) to (iv) of Sub Clause 14.16 (ii) Local Portion - Sri Lanka Rupees Ninety (90) percent of local portion of the works as interim payment of the progress work at Site within thirty (30) days from the date of Interim Payment Certificate as per Clause 14.6 will be issued by the Engineer against receipt of the Contractor's

application of interim payment. Sub Clause 14.17 Taxation Add following Sub-Clause (a) Taxes outside the Employers country The prices bid by the Contractor shall include all taxes, duties and other charges imposed outside the

Employers country on the production, manufacture, sale and transport of the Contractors Equipment, Plant, materials and supplies to be used on or furnished under the Contract, and on the services performed under the Contract. (b) Taxes within the Employers country The prices bid by the Contractor shall include all business taxes, income and other taxes that, may be levied in accordance to the laws and regulations in force as of the date 28 days prior to the closing date for submission of bid in the Employers country on the Contractors Equipment, and consumable acquired for the purpose of the Contract and on the services performed under the Contract. Nothing in the Contract shall relieve the Contractor from its responsibility to pay any tax that may be levied in the Employers country on profits made by it in respect of the Contract

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(c) Income Tax Foreign and Local Contractors and Construction Agencies of the Government will have to comply with regulations of the Department of Inland Revenue for payment of Income Tax on profits arising from the Contract. Foreign and Local Contractors and

Construction Agencies of the Government shall be wholly responsible for the payment of all taxes which are payable under Revenue Laws of Sri Lanka.

(d) Value Added Tax (VAT) The Contractor, foreign Subcontractors and local Sub contractors shall comply with the regulations of the Department of Inland Revenue for payment of the Value Added Tax, arising out of the contract. The contractor, foreign subcontractors and local subcontractors should register with the Department of Inland Revenue if applicable, and obtain VAT

registration numbers Payments of VAT directly to the Department of Inland Revenue is the responsibility of the contractors. The contractors are required to furnish returns as applicable, to the Department of Inland Revenue. VAT payable by the contractor is to be invoiced to the Employer by a VAT invoice. Withholding VAT on Contract Payments One third (1/3) of the VAT paid to Contractors and any other service providers, on supplies made to

government agencies would be withheld. The amount withheld shall be remitted directly to the Inland Revenue Department and a certificate is issued to the

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contractor. (e) Withholding Tax. Withholding tax at the prevailing rates is deductible from the Contract payments and the employer shall remit same to the Department of Inland Revenue on or before 1st day of the following month unless a direction is given by the Department of Inland Revenue not to deduct With Holding Tax. (f) Construction Industry Guarantee Fund (CIGF) Levy The CIGF Levy payable shall be deducted by the employer at the time that the contractor receives each contract payment in respect of each contract as described in the Finance Act No. 5 of 2005. This will be remitted directly to the Commissioner General of Inland Revenue. A certificate will be issued to the contractor showing the deductions made. The percentage of the CIGF Levy shall be based on the total cost, which shall be payable by each contractor or sub-contractor as the case may be, even if the individual sub-contract value is lower than the amounts specified in the table below indicating the rates of calculation.
Value of Construction Contract Rates applicable for the calculation of the Levy 1 2 Less than SLR 15 million Not less than SLR 15 million and not exceeding SLR 50 million 3 Not less than SLR 50 million and not exceeding SLR 150 million 4 SLR 150 million or above 1.00% 0.50% Nil 0.25%

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(g) Remittance Abroad If the foreign Contractor wishes to remit out of Sri Lanka any of his earnings in Sri Lanka Rupees representing profits, foreign overheads, home allowances and salaries of foreign personnel, he will have to comply with regulations of the Department of Inland Revenue and of the Department of Exchange Control, Central Bank of Sri Lanka. Any charges under this clause will be in Sri Lanka Rupees, and shall be borne by the Contractor.

Sub-Clause 17.6 Limitation of Liability Sub-Clause 17.7 Occupation and Care of Employers Facilities

In Sub-Clause 17.6, the sum referred to in the penultimate sentence shall be a sum equal to the Total Contract Price.

Add the following Sub-Clause The Contractor shall take full responsibility for the care of the facilities, plant and equipment already installed at the work sites temporarily occupied by the Contractor, from the respective dates of use or occupation by the Contactor, up to the respective dates of cessation of occupation. If any loss or damage happens to any of the above facilities, plant and equipment installed at the work sites while the Contractor is responsible for their care, arising from any cause whatsoever other than those for which the Employer is liable, the Contractor shall at its own cost, rectify the loss or damage to the satisfaction of the Engineer.

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Sub-Clause 20.6 Arbitration

Replace the text of Sub-Clause 20.6 (a) with the following: (a) the dispute shall be finally settled under the Rules of Arbitration of the UNCITRAL Add Sub-Clauses 20.6 (d) and 20.6 (e) as follows: (d) the place of Arbitration shall be Colombo, Sri Lanka (e) The procedural law of Arbitration in Sri Lanka; is the Arbitration Act No. 11 of 1995 of Sri Lanka as amended.

Sub-Clause 20.9 During Dispute

After Sub-Clause 20.8, add: Unless otherwise agreed in writing, Contractor shall continue the Works and Services in accordance with the Construction Schedule and Employer shall continue to make payments of undisputed amounts in accordance with this Contract during any dispute resolution proceedings. Any disputed amount ultimately paid shall be paid with cost of finance from the date of withholding to the date of payment at the cost of finance of withholding date.

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Section 9
Contract Forms (COF)

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SECTION 9
CONTRACT FORMS Notes on Sample Forms Bidders shall complete and provide the Bid Security all in accordance with the requirements of the bidding documents. Bidders should not complete the Form of Agreement at this time. Only the successful Bidder will be required to complete the Form. The Form of the Agreement, when it is finalized at the time of contract award, should incorporate any corrections or modifications to the accepted bid resulting from arithmetic corrections, acceptable deviations (time for completion, technical deviations, commercial deviations, etc.), spare parts or quantity variations in accordance with the requirements of the bidding documents. The form of Performance Security and Form of Advance Payment Security should not be complete by the bidders at the time of bid preparation. Only the successful Bidder will be required to provide these securities in accordance with the forms indicated herein or in another form acceptable to the Employer.

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FORM OF BID SECURITY (BANK GUARANTEE) WHEREAS, .[Name of Bidder] (hereinafter called "the Bidder") has submitted his bid dated [Date] for the construction of

..[Name of Contract] (hereinafter called "the Bid") KNOW ALL MEN by these presents that We ..[Name of Bank] of .[Name of Country] having our registered office at

.. (hereinafter called "the Bank") are bound unto the Ceylon Electricity Board (hereinafter called "the Employer") in the sum of

for which payment well and truly to be made to the said Employer the Bank binds himself, his successors and assigns by these presents. SEALED with the Common Seal of the said Bank this day of 20.... THE CONDITIONS of this obligation are: 1) If the bidder withdraws his Bid during the period of bid validity specified in the Form of Bid: or 2) If the Bidder refuses to accept the correction of errors in his Bid or 3) If the Bidder having been notified of the acceptance of his Bid by the Employer during the period of bid validity: (a) fails or refuses to execute the Form of Contract Agreement in accordance with the Instructions to Bidders, if required; or (b) fails or refuses to furnish the Performance Security, in accordance with the Instruction to Bidders, We undertake to pay to the Employer up to the above amount upon receipt of his first written demand, without the Employer having to substantiate its demand, provided that in its demand the Employer will note that the amount claimed by it is due to it owing to the occurrence of one or all of the three conditions, specifying the occurred condition or conditions.

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This Guarantee will remain in force up to and including date ______________ days after the deadline for submission of bids as such deadline is stated in the Instructions to Bidders or as it may be extended by the Employer, notice of which extension(s) to the Bank is hereby waived. Any demand in respect of this Guarantee should reach the Bank not later than the above date. DATE . SIGNATURE OF THE BANK WITNESS SEAL (Signature, Name and Address)

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FORM OF CONTRACT AGREEMENT This Agreement made this ____________day of __________20___between

___________________________ of ______________________________ (hereinafter called "the Employer") of the one part and__________________________________of _____________________________ (hereinafter called "the Contractor") of the other part. Whereas the Employer desires that the Works known as

_____________________________ should be designed and executed by the Contractor, and has accepted a Bid by the Contractor for the design, execution and completion of such Works and remedying of any defects therein. The Employer and the Contractor agree as follows: 1. In this Agreement words and expressions shall have the same meanings as are respectively assigned to them in the Conditions of Contract hereinafter referred to. 2. The following documents shall be deemed to form and be read and construed as part of this Agreement: (a) (b) (c) (d) (e) (f) (g) 3. The Letter of Acceptance dated __________________ The Employers Requirements The Addenda nos. ______________________ The Bid dated __________________________ The Conditions of Contract (Parts I and II) The completed Schedules, and The Contractors Proposal

In consideration of the payments to be made by the Employer to the Contractor as hereinafter mentioned, the Contractor hereby covenants with the Employer to design, execute and complete the Works and remedy and defects therein in conformity in all respects with the provisions of the Contract.

4.

The Employer hereby covenants to pay the Contractor, in consideration of the design, execution and completion of the Works and the remedying of defects therein, the Contract Price or such other sum as may become payable under the provisions of the Contract at the times and in the manner prescribed by the Contract.

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In Witness whereof the parties hereto have caused this Agreement to be executed the day and year first before written in accordance with their respective laws.

Authorized signature of Contractor SEAL (if any)

Authorized signature of Employer SEAL (if any)

In the presence of: Name : _______________________ Signature : _____________________ Address : ______________________

In the presence of: Name : _______________________ Signature : _____________________ Address : ______________________

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FORM OF PERFORMANCE SECURITY (BANK GUARANTEE) To : ... [name of Employer] . [address of Employer] WHEREAS . [name and address of Contractor] (hereinafter called the Contractor) has undertaken, in pursuance of Contract No. dated .. to execute

[name of Contract and

brief description of Works] (hereinafter called the Contract); AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall furnish you with a Bank Guarantee by a recognized bank for the sum specified therein as security for compliance with its obligations in accordance with the Contract; AND WHEREAS we have agreed to give the Contractor such a Bank Guarantee; NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to you, on behalf of the Contractor, up to a total of [amount of Guarantee] .. [in words], such sum being payable in the types and proportions of currencies in which the Contract Price is payable, and we undertake to pay you, upon your first written demand and without cavil or argument, any sum or sums within the limits of [amount of Guarantee] as aforesaid without your needing to prove or to show grounds or reasons for your demand for the sum specified therein. We hereby waive the necessity of your demanding the said debt from the Contractor before presenting us with the demand. We further agree that no change or addition to or other modification of the terms of the Contract or of the Works to be performed thereunder or of any of the Contract documents which may be made between you and the Contractor shall in any way release us from any liability under this guarantee, and we hereby waive notice of any such change, addition or modification. This guarantee shall be valid until the date of issue of the Performance Certificate. Signature and Seal of the Guarantor Name of Bank Address Date .. ...

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FORM OF ADVANCE PAYMENT SECURITY (BANK GUARANTEE) To : ..[name of Employer] .[address of Employer] . [name of Contract] Gentlemen: In accordance with the provisions of the Conditions of Contract, Sub-Clause 13.2 (Advance Payment) of the above-mentioned Contract, [name and Address of Contractor] (hereinafter called the Contractor) shall deposit with [name of Employer] a bank guarantee to guarantee its proper and faithful performance under the said Clause of the Contract in an amount of .. [amount of Guarantee]1 .. [in words]. We, the . [bank], as instructed by the Contractor, agree unconditionally and irrevocably to guarantee as primary obligator and not as Surety merely, the payment to.. [name of Employer] on its first demand without whatsoever right of objection on our part and without its first claim to the Contractor, in the amount not exceeding .. [amount of Guarantee] [in words]. We further agree that no change or addition to or other modification of the terms of the contract or of Works to be performed thereunder or of any of the Contract documents which may be made between [name of Employer] and the Contractor, shall in any way release us from any liability under this guarantee, and we hereby waive notice of any such change, addition or modification. This guarantee shall remain valid and in full effect from the date of the advance payment under the Contract until . [name of Employer] receives full repayment of the same amount from the Contractor. Yours truly, Signature and Seal Name of Bank Address Date . . .

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FORM OF DOMESTIC PREFERENCE SECURITY (BANK GUARANTEE) To : _______________________________________________ [name of Employer] _____________________________________________ [address of Employer]

WHEREAS a joint venture among: _________________________________________ [name and address of all joint venture partners] (hereinafter called the Contractor), has undertaken in pursuance to Contract No. __________ dated ________ to execute _______________ [name of Contract and brief Description of Works], (hereinafter called the Contract); AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall furnish you with a Bank Guarantee by a recognized bank for the sum specified therein as security for compliance with his obligation stated in Sub-Clause 4.25 of the Conditions of Contract; AND WHEREAS we have agreed to give the Contractor such a Bank Guarantee; NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to you, on behalf of the Contractor, up to a total of ____________ [amount of Guarantee], we undertake to pay you, upon your first written demand and without your having to substantiate such demand any sum within the limit of ________________ [amount of Guarantee]. We hereby waive the necessity of demanding the said debt from the Contractor before presenting us with the demand. We further agree that no change or addition to or other modification of the terms of the Contract or of Works to be performed there under or of any of the Contract documents which may be made between you and the Contractor shall in any way release us from liability under this guarantee, and we hereby waive notice of any such change, addition or modification. This guarantee is valid until the date of issuance of the Performance Certificate.

Signature and Seal of the Guarantor _____________________________________ Name of Bank ______________________________________ Address ______________________________________ Date ______________________________________

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