COMPLETION, COMMENCEMENT AND DELAY – SUBCONTRACT AGREEMENT

COMPLETION, COMMENCEMENT AND DELAY

• The SUBCONTRACTOR shall commence the Subcontract Works on the date notified by the CONTRACTOR (the Notice to Proceed). The Notice to Proceed shall be issued by the CONTRACTOR provided that the all conditions are satisfied to commence the Subcontract Works including but not limited to preparation of the Subcontract Work Site, obtaining all kinds of permits or approval from the COMPANY

• The SUBCONTRACTOR, if delayed in performing any of its obligations under the Subcontract by any of the reasons set forth below and the SUBCONTRACTOR intends to claim an extension of the Time for Completion, shall forthwith give written notice thereof to the CONTRACTOR:

1. any binding Variation Order issued by the CONTRACTOR;
2. any suspension ordered by the CONTRACTOR pursuant to Clause 13.2; or
3. The CONTRACTOR’s delay, subject to Clause 7.3

If the CONTRACTOR finds such claim, as notified by the SUBCONTRACTOR, justified in accordance with the provisions of the Subcontract, the CONTRACTOR shall so inform to the SUBCONTRACTOR and the Time for Completion may be extended to the extent the CONTRACTOR deemed fair and reasonable.

If the SUBCONTRACTOR fails to notify the CONTRACTOR of full details of such claim within five (5) Days after the date the SUBCONTRACTOR became aware or should have become aware of the occurrence giving rise to the claim, the SUBCONTRACTOR shall not be entitled to any extension of the Time for Completion. Such notification shall be condition precedent to the SUBCONTRACTOR’s rights to an extension of Time for Completion under the SUBCONTRACTOR or applicable law. However, such notification shall not relieve the SUBCONTRACTOR of any obligation or responsibilities under the Subcontract. (See Particular Terms and Conditions Appendix P).

• The SUBCONTRACTOR shall not be entitled to an extension of Time for Completion for any delay resulting from the CONTRACTOR’s delay in providing Materials, Plant, CONTRACTOR’s Equipment, drawings, or a service under the Subcontract, if the affected Subcontract Works is, of the opinion of the CONTRACTOR, not on the Critical Path or the duration of such delay does not exceed the affected Subcontract Work’s Total Float as reflected in the Schedule. (See Particular Terms and Conditions Appendix P)
• The SUBCONTRACTOR shall at all times minimize any delay in performing its obligations under the Subcontract regardless of the cause of such delay. In no event shall the SUBCONTRACTOR be entitled to any claim for damages or additional costs and expenses for any acceleration of the Subcontract Works for recovering delay to meet the requirements of the Subcontract. (See Particular Terms and Conditions Appendix P)
• If the SUBCONTRACTOR fails to complete the Subcontract Works within the Time for Completion or any extension thereof, the SUBCONTRACTOR shall pay to the CONTRACTOR the sum stated in Article 4 of the Particular Conditions as liquidated damages for every full Day, or such other prescribed period which shall elapse between the time prescribed in the Subcontract and the date of completion of the given Subcontract Works.
• The CONTRACTOR may, without prejudice to any other method of recovery, deduct the amount of such liquidated damages from any monies due or which may become due to the SUBCONTRACTOR.
• The payment or deduction of such liquidated damages, whether or not paid or deducted, shall not relieve the SUBCONTRACTOR from the obligation to complete the Subcontract Works and shall be without prejudice to any other contractual or legal rights and remedies the CONTRACTOR is entitled to for such delay.
• In the event that all or any of the obligations of the SUBCONTRACTOR under the Subcontract to pay liquidated damages are held to be unenforceable, the SUBCONTRACTOR shall pay the CONTRACTOR damages in respect of all actual losses suffered by the CONTRACTOR due to the circumstances in respect of which liquidated damages would have been payable if the relevant obligation had been enforceable including, without limitation, loss of profit, loss of use, loss of revenues, loss of production and loss of savings and any increased financing costs. (See Particular Terms and Conditions Appendix P)

• If the SUBCONTRACTOR fails to complete the Subcontract Works within the Time for Completion or any extension thereof, the CONTRACTOR may, without prejudice to the CONTRACTOR’s entitlement to the liquidated damages under Clause 7.5, by further written notice:

1. require the SUBCONTRACTOR to complete the Subcontract Works within a reasonable period to be specified by the CONTRACTOR;
2. complete the Subcontract Works at the SUBCONTRACTOR’s cost and expense, in such a manner as the CONTRACTOR deems reasonable and expedient; or
3. terminate the Subcontract in accordance with Clause 16 and Article 4 of Particular Conditions.

• If more than one period of completion are specified in the Particular Conditions for different parts of the Subcontract Works, each such part shall, for the purposes of interpretation of the provision of Clause 7, be treated as if it were the whole of the Subcontract Works. (See Particular Terms and Conditions Appendix P)
• Notwithstanding Clause 7.2, if the SUBCONTRACTOR is delayed in the execution of the Subcontract Works by any circumstance or occurrence which entitles the CONTRACTOR to an extension of time for completion of the Main Contract Works under the Main Contract, it shall be a condition precedent to the SUBCONTRACTOR’s right to an extension of the Time for Completion that the SUBCONTRACTOR shall have given timely notice to the CONTRACTOR of the circumstances or occurrence which are delaying the SUBCONTRACTOR so as to allow the CONTRACTOR to claim for an extension and in any such case the extension shall not in any event exceed the extension of time which shall be granted to the CONTRACTOR under the Main Contract.
• The CONTRACTOR shall have the right to instruct to change the order, timing, sequence, duration and/or completion of the activities shown on the Schedule, and the SUBCONTRACTOR shall adjust deployment of resources in accordance with such instructions. Such instructions shall not automatically be grounds for extension of the Time for Completion unless the SUBCONTRACTOR can successfully demonstrate to the satisfaction of the CONTRACTOR that the instruction was critical to the Time for Completion. (See Particular Terms and Conditions Appendix P).