GENERAL

CONDITIONS
GENERAL CONDITIONS
SECTION I- DEFINITIONS AND
DOCUMENTS
contract documents
• agreement
• general conditions
• special provisions
• specifications and supplementary
specifications
• drawings
 key players
• owner
• architect
• engineer
• project representative
• contractor
• sub-contractor

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GENERAL CONDITIONS
bonds
proposal bond : guarantee to enter into a contract if awarded
performance bond : guarantee to execute the work in accordance with
the terms of the contract (15% of contract amount,
upon contract signing)
payment bond : guarantee to pay all obligations arising from the
contract (15% of contract amount upon contract
signing)
guarantee bond : guarantee workmanship and quality of materials
and equipment for 1 year (30% of contract amount)

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Work of the Contractor
Furnish : purchase/ fabricate and deliver
Install : build in, mount in position, connect, apply for
intended use
Provide : furnish and install

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 bidding
• proposal
• tender documents
• invitation to bid
• bid bulletin
• instruction to bidders

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Art. 2: execution, correlation and intent of documents
• signature on documents- by owner and contractor
• intent of contract documents- complementary and binding
• conformity to the contract documents
• contract documents at site of work
• ownership of contract documents and models- by the Architect

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GENERAL CONDITIONS
Art. 3: drawings and specifications
• copies of drawings and specifications
• coordination of drawings and specifications
• clarification of meaning- cost arising from discrepancies in
information
• discrepancies in drawings- necessary adjustments to produce first
class work

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GENERAL CONDITIONS
 Art. 4: detail drawings and inspections
• supplementary drawings and instructions-
to be considered of equal force
• schedule for submission of detail and shop drawings-
setting drawings, templates, patterns at contractor’s
expense

CONTRACT DOCUMENTS

GENERAL CONDITIONS
 Art. 5: shop drawings
•conditions in the preparation of shop drawings
•checking drawings of sub-contractors
•identification
•letter of transmittal
•corrections, changes and variations
•responsibility for accuracy

CONTRACT DOCUMENTS

GENERAL CONDITIONS
 SECTION II- LAWS, REGULATIONS, SITE
CONDITIONS, PERMITS, TAXES
Art. 6: laws, regulations and site conditions
• laws and regulations- codes, ordinances services/
utility regulations
• site conditions- visit prior to bidding

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GENERAL CONDITIONS
 Art. 7: permits, taxes and surveys
• permits and licenses
• taxes
• construction stakes and reference mark
• services of licensed surveyor
• final certification

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GENERAL CONDITIONS
 SECTION III- EQUIPMENT AND MATERIALS
Art. 8: general (equipment and materials)
Art. 9: equipment
•quality of equipment
•equipment approval data- complete catalog data

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GENERAL CONDITIONS
Art. 10: materials, fixtures, appliances, fittings

•manufacturers and dealers- all transactions through the contractor

•samples of materials- properly labelled; for approval; pre-paid transportation cost
•trade name materials and substitutes
•testing samples of materials
•quality of materials
•storage and stockpiling of materials
•defective materials- cost of removal and replacement
•imported materials, fixtures and equipment- time element

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GENERAL CONDITIONS
 Art. 11: materials, equipment, fixtures, appliances
and fittings furnished by the owner
Art. 12: royalties and patents
Art. 13: manufacturer’s directions

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GENERAL CONDITIONS
 SECTION IV- PREMISES AND TEMPORARY
STRUCTURES
Art. 14: use of premises
• limitation of use- legal provisions
• safeguard for structure- safety concerns

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GENERAL CONDITIONS
Art. 15: temporary structures and facilities
• office and contractor’s building • stairs, ladders, ramps,
runways
• housing for workers
• elevators and hoists
• sanitary facilities and first aid station
• temporary enclosures
• barricades and guard lights
• trial usage
• water, power and telephone facilities
• removal of temporary
• signs
structures
• roadways

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GENERAL CONDITIONS
 Art. 16: protection of work and owner’s property
• safeguard measures- theft, fire, damage
• old materials
• trees and other plants- protection, transplanting, removal
• drainage- altering waterways

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 Art. 17: protection of adjacent property and
existing utilities
• contractor’s sole responsibility
• existing utilities

Art. 18: protection of life, work and property

during an emergency
• authorization to contractor- compensation for
emergency work

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GENERAL CONDITIONS
 Art. 19: labor
• character of workmen- discharging, removal of
inefficient employee
• superintendence and supervision- licensed, at least once
a week inspection

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GENERAL CONDITIONS
Art. 20: work
• methods and appliances- changing of performance levels
• laying out the work- protecting & replacing markers
• inspection of work
• defective work
• work during an emergency
• increased or decreased quantities

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Art. 20: work
• changes in the work
- changes ordered by owner
- change of sub-surface conditions
- adjustment of contract
- value of extra work
- period for which claim for adjustment has to be asserted- 15 days
- changes ordered by the architect- not involving cost and change in concept
- award of extra work to other contractors

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GENERAL CONDITIONS
Art. 20: work
• claims for extra cost- caused by instructions from architect or
owner; delays in owner-supplied materials- within 15 days
• cleaning up at completion of work
• use of completed portions of work- not be deemed as acceptance
• certificate of completion of work- 98% completion
• period of making good known defects or faults- not more than
60 calendar days
• making good of known defects or faults
• search for causes of defects or faults- contractor’s expense

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 Art. 21: time of completion of work
•notice to proceed
•contract time- 7th day from NTP receipt
•schedule of completion
•extension of time- request 15 days after
•liquidated damages

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GENERAL CONDITIONS
 Art. 22: payments
• detailed breakdown of contract amount
• requests for payment
• progress photographs
• architect’s action on request for payment- within 15 days
• approval withheld
• conditions relative to payment
• owner’s action on approved certificate of payment

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 Art. 22: payments
• payment of contractor’s obligations
• correction of work before final payment
• other requirements before final payment
• acceptance and final payment
• correction of work after final payment
• release of retention- 3 months after final payment

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Art. 22: payments
• payment of contractor’s obligations
• correction of work before final payment
• other requirements before final payment
• acceptance and final payment
• correction of work after final payment
• release of retention- 3 months after final
payment
CONTRACT DOCUMENTS
GENERAL CONDITIONS
• Certificate of final bldg
occupancy
• Certificate of final inspection of
utilities
• 3 sets of as-built drawings
• 3 copies of directory of panel
boards and list of circuits
• 3 copies of manual of
operations and maintenance
• 3 copies of keying schedule
• Guarantee bond – 30% of
contract price covering 1 year
after final acceptance
Art. 23: separate contracts to other contractors
•owner’s right to let other contracts

Art. 24: contractor-separate contractors relations

•storage of materials and work coordination
•cutting, patching and digging
•defective work by separate contractors
•damage caused by contractor to separate contractors

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 Art. 25: sub-contracts
•general
•competency of sub-contractor
•contractor’s responsibility

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Art. 26: contractor - sub-contractors relations
Art. 27: contractor’s right to suspend work or terminate
contract
Art. 28: owner’s right to terminate contract
Art. 29: owner’s right to proceed work after takeover from
contractor

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 SECTION IX- RESPONSIBILITIES AND LIABILITIES
OF CONTRACTOR AND OWNERS

Art. 30: contractor’s responsibility for accidents and

damages

• safeguards to be undertaken by contractor

• contractor’s responsibility
• indemnity

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 Art. 31: contractor’s insurance and bonds

• contractor’s liability insurance

• contractor’s fire insurance
• contractor’s performance and payment bonds
• contractor’s guarantee bond
• contractor’s guaranty warranty

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 Art. 32: owner’s responsibilities and liabilities

• protection of employees and professionals performing services

for the owner
• owner’s optional insurance

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 Art. 33: liens, disputes and arbitration

• liens
• assignment
• damages
• disputes
• arbitration

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 Art. 34: architect’s status

Art. 35: authority and responsibilities of the engineers

Art. 36: authority and duties of the project

representatives, resident architects, resident engineers or
construction inspectors

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CONTRACTOR’S COST

• Shop drawings
• Permits and Licenses
• Project-related taxes
• Grade lines/ benchmarks
• Surveyor’s certificate
• Cost of revisions due to delay
• Transport cost of samples
• Testing of samples
• Material storage
• Removal/ replacement of defective matl
• Royalties and patents
• Clearing & protection of trees
• Damage to adjacent interests
• Uncovering of works to be inspected
• Search for cause of defects

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GENERAL CONDITIONS