ICC Model Subcontract

No. @706E

ISBN : 978-92-842-0244-7

ICC Model Subcontract is mainly designed for major turnkey projects but flexible enough to be used as a subcontract to other standard forms of contract as well. Taking innto consideration that international turnkey construction projects are often multifaceted transactions that require complex legal documentation, the ICC Model Subcontract is the answer for all those who seek a reliable and balanced standard form to prevent drowning in a flood of papers and documents. This form is equally intended for use in public and private contracts (whether tendered or individually negotiated), as a part of the “BOT” project documentation, and in externally financed projects. The book includes the text of the contract on CDRom.

This Model Subcontract takes a fair and equitable approach to both contractors and subcontractors. It considers the interests of all parties by providing for price and scope certainty, swift and effective dispute resolution and complete, informed and responsible allocation of risks. Perfect complement to the ICC Model Turnkey Contract for Major Projects, this vital tool for international business transactions completes ICC’s series of successful model contracts. It provides for price and scope certainty, swift and effective dispute resolution and complete, informed and responsible allocation of risks. Balanced for both parties, it further includes a good faith concept, explanation of the purpose of certain provisions to avoid misinterpretation,where possible, the use of equal and mirrored obligations of the parties.

Prepared by the ICC Commission on Corporate Responsibility and Anti-corruption and the Commission on Commercial Law and Practice, the ICC Anti-corruption Clause, to which Article 60 on “Bribery, gifts, inducements or rewards” refers, has been revised in 2012. You can download the full text of the clause for free here.

Code ISBN : 978-92-842-0244-7
Number of pages : 105
Publishing date : 2011
Language : English
Format in cm : 20.8*29.7

Foreword

Introduction

Subcontract Form

1.    Chapter 1: GENERAL AND PRELIMINARY ARTICLES

1.1. Art 1 Definitions

1.2. Art 2 Entry into force of the Subcontract/Flowdown

1.3. Art 3 Good faith and fair dealing

1.4. Art 4 Language of the Subcontract

1.5. Art 5 Applicable laws

1.6. Art 6 New or changed laws, standards, regulations, etc

1.7. Art 7 Interpretation of the Subcontract

1.8. Art 8 Assumptions; statements about distances, measures, dimensions and quantities

1.9. Art 9 Obtaining permits, planning and other permissions

1.10.            Art 10 Guarantees, bonds or other securities

1.11.            Art 11 Demands under guarantees, bonds or other securities

1.12.            Art 12 No agency – independent contractor

 

2.    Chapter 2: THE PARTIES’ OBLIGATIONS

2.1. Art 13 The Main Contractor’s obligations

2.2. Art 14 The Subcontractor’s obligations

2.3. Art 15 Co-operation with other contractors and co-ordination of activities

2.4. Art 16 Quality assurance

2.5. Art 17 Staff and labour

2.6. Art 18 Representatives of the Parties

2.7. Art 19 Each Party’s duty to notify

 

3.    Chapter 3: THE EXECUTION OF THE SUBCONTRACT

3.1. Art 20 Scope of the Subcontract Works and Subcontract Price

3.2. Art 21 Setting out on the Site

3.3. Art 22 Site information for the Subcontractor’s Design and use

3.4. Art 23 Unexpected artificial or physical conditions or obstructions

3.5. Art 24 Safety

3.6. Art 25 Public convenience

3.7. Art 26 Environmental protection

3.8. Art 27 Services or supplies to be supplied by the Main Contractor

3.9. Art 28 Main Contractor/Employer-supplied Plant, materials or Equipment

3.10.            Art 29 Responsibility for shipping and storing goods and materials

3.11.            Art 30 Ownership of goods, material, Plant and Equipment/liens, trusts and similar claims

3.12.            Art 31 Keeping the Site clear

 

4.    Chapter 4: DESIGN - RESPONSIBILITY AND MANAGEMENT, VARIATIONS

4.1. Art 32 General allocation of responsibility of the Parties for the Design

4.2. Art 33 The Design review process

4.3. Art 34 Intellectual property rights

4.4. Art 35 Variations and changes to the Subcontract Works

 

5.    Chapter 5: COMMENCEMENT, THE TIME TO TAKING-OVER, SCHEDULING AND PROGRESS

5.1. Art 36 Commencement, Time to Taking-Over and extensions of time

5.2. Art 37 Delay Damages

5.3. Art 38 Schedule of Subcontractual Dates, time schedule and reporting progress

5.4. Art 39 Progress reports

 

6.    Chapter 6: SUBCONTRACT PRICE AND PAYMENT

6.1. Art 40 The Subcontract provides the exclusive remedies for all claims between

6.2. the Parties

6.3. Art 41 Payment of the Subcontract Price

6.4. Art 42 Applications and procedure for payment

6.5. Art 43 VAT/GST or equivalent consumption taxes

6.6. Art 44 Financing charges for late recognition of rights between the Parties

 

7.    Chapter 7: COMPLETION AND TAKING-OVER OF THE SUBCONTRACT WORKS BY THE MAIN CONTRACTOR

7.1. Art 45 Completion

7.2. Art 46 Commissioning and Performance Tests

7.3. Art 47 Taking-Over/Provisional Acceptance

7.4. Art 48 Assessment procedures after Taking-Over

 

8.    Chapter 8: DEFECT CORRECTION PERIOD

8.1. Art 49 The Contractor’s obligation to finish the Subcontract Works and correct Defects

 

9.    Chapter 9: ALLOCATION OF RISK AND RESPONSIBILITY, LIMITATION OF AND EXCLUSIONS FROM LIABILITY

9.1. Art 50 General principles of risk allocation and responsibility

9.2. Art 51 Purpose of the limitation and exclusion Articles

9.3. Art 52 Liabilities of the Parties and their reciprocal limitations and exclusions

9.4. Art 53 Time limit for liability

9.5. Art 54 Extension of limitations to and exclusions from liability to certain third parties

9.6. Art 55 Additional Warranties

 

10. Chapter 10: FORCE MAJEURE AND TERMINATION OF THE SUBCONTRACT

10.1.            Art 56 Force Majeure

10.2.            Art 57 Suspension and/or termination of the Subcontract

 

11. Chapter 11: INSURANCE

11.1.            Art 58 Insurance

 

12. Chapter 12: MISCELLANEOUS PROVISIONS

12.1.            Art 59 Confidentiality

12.2.            Art 60 Bribery, gifts, inducements or rewards

12.3.            Art 61 Entire agreement, severability and amendments to the Subcontract

12.4.            Art 62 Joint and several liability

12.5.            Art 63 Subcontractor notification and responsibility and assignment of Subcontractor’s obligations

12.6.            Art 64 Assignment of the Subcontract by either Party

12.7.            Art 65 Communications, including Notices and consent

 

13. Chapter 13: CLAIMS, DISPUTE RESOLUTION AND ARBITRATION

13.1.            Art 66 Exclusive remedies - All claims of all types are to be determined by theseprovisions

13.2.             Art 67 Supplemental provisions relating to arbitration

 

14. Suggested Appendices

14.1.            1. Scope of Subcontract Works

14.2.            2. Sample Schedule of Subcontractual Amendments

14.3.            Main Contractor’s Requirements

14.4.            Main Contractor’s Equipment

14.5.            Subcontractor’s Equipment

14.6.            Sample Advance Payment Guarantee (sample appended p. 88)

14.7.            Sample Performance Guarantee (sample appended p. 90)

14.8.            Subcontract Works in Relation to Original Points, Lines and Levels of Reference

14.9.            Prices for Services Supplied by the Main Contractor

14.10.         Daywork Schedule

14.11.         Notice to Proceed

14.12.         Limit on Delay Damages

14.13.         Schedule of Subcontractual Dates

14.14.         Form of Letter of Credit or similar

14.15.         Sample Schedule of Subcontractual Payments and Milestone Guidance Notes (sample appended p.92)

14.16.         Payment Application Format (sample appended p.95)

14.17.         Commissioning Activities

14.18.         Guidelines Relating to the Performance Tests (sample appended p.96)

14.19.         Subcontractor’s Access after Taking-Over (sample appended p.98)

14.20.         Form of Taking-Over Certificate

14.21.         Form of Certificate of Final Acceptance

 

Prepared by the ICC Commission on Corporate Responsibility and Anti-corruption and the Commission on Commercial Law and Practice.

Customers who bought this product also bought