Civil Engineering Reference
In-Depth Information
duration of parts of the works. They have been described as being the difference
between the quickest time an activity can be completed and the time allowed on the
programme. It is said that these allowances are owned by the Contractor as part of
the planning/programming exercise to cover Contractor risks. This suggests these
would be ignored in assessing any delay to Completion due to a compensation event
so the Contractor retains the benefit of them.
It is worth noting the terms of clause 31.3. The Project Manager can notify the
Contractor that the programme is not being accepted due to it not representing the
Contractor's plans realistically.
Assessment of the effect of a compensation event includes risk allowance for cost
and time for matters which have a significant chance of occurring and are at the Con-
tractor's risk under the Contract (clause 63.6). According to the Guidance Notes,
allowance for time risk should be included in forecasts of Completion in the same
wayasrisksareallowedforinpricingthetender.Clearlymoretimeisallowedwhere
there is a high chance of the Contractor's risk occurring.
5.6 Insurance and indemnity
5.6.1 The SBC and the SBC/DB provisions
The SBC contains a number of provisions requiring the Contractor to indemnify the
Employer in certain circumstances.
Clause 2.21 requires the Contractor to pay all fees or charges (including rates or
taxes) legally demandable under any of the Statutory Requirements and to indemnify
the Employer against any liability resulting from any failure to do so. The Contractor
is able to recover this through payment for provisional sums, where applicable, or by
addition to the Contract Sum. However, that does not apply to fees or charges which
arepricedintheContractBillsorwhichrelatesolelytotheContractor'sDesigned
Portion,inwhicheventtheyaredeemedtobeincludedintheContractSum.he
same applies under clause 2.18 of the SBC/DB unless the fees or charges are stated by
way of a Provisional Sum in the Employer's Requirements.
Royalties and any other sums payable in respect of the supply and use in the car-
rying out of the Works of any patented articles, processes or inventions are deemed
to be included in the Contract Sum and the Contractor has an obligation in terms
of clause 2.22 to indemnify the Employer from and against all claims and proceed-
ings which may be brought or made against the Employer and all damages, costs and
expense to which he may be put by reason of the Contractor infringing or being found
to have infringed any patent rights. his is not the case where the Contractor has been
instructed to use any patented articles, processes or inventions, in which case, under
clause 2.23, he is not so liable and any royalties, damages or other monies which the
ContractormaybeliabletopayshallbeaddedtotheContractSum.Similarprovisions
are contained in clauses 2.19 and 2.20 of the SBC/DB.
The Contractor is responsible for loss or damage to Site Materials even though, fol-
lowing payment, title in these materials and goods passes to the Employer, all in terms
of clause 2.24. The Contractor maintains a similar responsibility for any materials
