CARE OF THE SUBCONTRACT WORKS AND PASSING OF RISK

The SUBCONTRACTOR shall take full responsibility for the care of the Subcontract Works and any of the Materials, Plant, SUBCONTRACTOR’s Equipment, temporary works, goods and things, whether delivered to or placed on the Subcontract Works Site or elsewhere, which are to be provided or used in connection with or for the purpose of the Subcontract Works or any part thereof and the SUBCONTRACTOR assumes the risk of loss in respect of such Subcontract Works, the Materials, Plant, SUBCONTRACTOR’s Equipment as described above until the Certificate of Acceptance is issued by the CONTRACTOR, and the SUBCONTRACTOR shall, at its own cost and expense, make good to the satisfaction of the CONTRACTOR any deterioration, loss or damage that may occur thereto.

The SUBCONTRACTOR shall also take full responsibility for the care of the Materials, Plant, and CONTRACTOR’s Equipment made available by the CONTRACTOR to the SUBCONTRACTOR until return thereof to the CONTRACTOR, and the SUBCONTRACTOR shall, at its own cost and expense, make good to the satisfaction of the CONTRACTOR any deterioration, loss or damage that may occur thereto.
If the SUBCONTRACTOR fails to observe the obligation as specified in Clause 12.1 and 12.2 above and the CONTRACTOR suffers delay and/or cost resulting from it, the SUBCONTRACTOR shall indemnify the CONTRACTOR for and against any delay and/or cost therefrom.
Notwithstanding the occurrence of the Risk Transfer Date, the SUBCONTRACTOR shall be responsible for the case of any works being performed by the SUBCONTRACTOR during any Warranty Period pursuant to the SUBCONTRACTOR’s defect and non-compliance rectification obligations in accordance with Clause 23 (the Outstanding Subcontract Works) from the commencement of such Outstanding Subcontract Works until its completion.

1. in respect of Subcontract Works, the date on which the CONTRACTOR issues Certificate of Acceptance for the Subcontract Works or any part thereof, or
2. the date on which the employment of the SUBCONTRACTOR is terminated.

Loss of or damage to the Subcontract Works or any part thereof which occurs on or before the relevant Risk Transfer Date shall be made good forthwith by the SUBCONTRACTOR at its own cost and in conformity in every respect with the requirements of the Subcontract. Loss of or damage to the Outstanding Subcontract Works or any part thereof which occurs during the Warranty Period shall be made good forthwith by the SUBCONTRACTOR at its own risk and cost and in conformity in every respect with the requirements of the Subcontract.
Without prejudice to any other provisions of the Subcontract, the CONTRACTOR shall be entitled at any time to take possession of and use for any purpose any completed portion of the Subcontract Works. However, such taking possession and use shall not be deemed an acceptance of such portion of the Subcontract Works so taken and used. Even if such taking possession or use affects the progress of the Subcontract Works, the SUBCONTRACTOR shall adjust Schedule so that the Subcontract Works may be completed without extension of the Time for Completion. (See Particular Terms and Conditions Appendix P)