Contractor’s Duties

Abstract

The Contractor promises to the Employer to complete the Works and to remedy any defects therein (Red Book). If the contract provides for the design by the Contractor (Yellow Book and Silver Book), then he will design the Works as well. The design, if any, and the completion of the Works including the remedying of defects shall be accomplished within Time for Completion. Moreover, if the contract provides for the operation of the Works by the Contractor (Gold Book), then he will also operate the Works. It is common sense that a contract is a legally binding instrument which creates obligations. However, prior to the execution of a contract the parties enter either into negotiations or are involved in a formal procurement procedure. At this stage the employer or client will disclose the project requirements combined with site data and other useful information in order to enable the contractor or consultant to submit an offer. Whether and to what extent already at this stage enforceable obligations between the parties as to the way in which they are to behave do exist is questionable (see Hok 2009, p. 23 et seq.). However FIDIC forms of contract clearly create retroactive obligations. According to Sub-Clause 4.10 the Contractor shall carry out inspections and examinations of the Site before submitting his tender. According to Sub-Clause 5.1 Yellow, Silver Book and Gold Book he shall also be deemed to have scrutinised the Employer’s Requirements. If the Contractor encounters difficulties as a result of any errors, fault or defect in the Employer’s Requirements which could have been disclosed by an experienced Contractor before submitting the Tender the Time for Completion and the Contract Price shall not be adjusted.