Clause 8.0 COMMENCEMENT, DELAYS AND SUSPENSION

Flowchart

• Pink Blocks: Initial steps involving the Engineer and Contractor for the commencement of works.
• Orange Blocks: Steps where the Contractor is actively involved in the design and execution.
• Red Blocks: Submission and revision of the time programme.
• Teal Blocks: Decision-making by the Engineer on the programme.
• Purple Blocks: Steps involving delays and extensions.
• Dark Purple Blocks: Suspension of works and associated actions.
• Green Blocks: Steps involving the resumption and completion of works.

let’s break down the flowchart step-by-step:

1. Engineer gives 7 days’ notice of Commencement Date: The process starts with the Engineer giving at least 7 days’ notice to the Contractor about when the work is to commence.
2. Commencement Date within 42 days after Letter of Acceptance: The Commencement Date must fall within 42 days after the Contractor receives the Letter of Acceptance, unless otherwise stated.
3. Contractor commences design and execution: Upon receiving the notice, the Contractor starts the design and execution of the Works as soon as reasonably practicable.
4. Contractor submits time programme within 28 days: The Contractor is required to submit a detailed time programme to the Engineer within 28 days after receiving the notice for the Commencement Date.
5. Programme Approved? (Decision Block): The Engineer reviews the submitted programme. If approved, the process moves to the next step. If not, the Engineer requires a revised programme, looping back to the Contractor submitting a new time programme.
6. Contractor proceeds with Works: If the programme is approved, the Contractor proceeds with the Works according to the approved time programme.
7. Any Delays? (Decision Block): If there are any delays, the Contractor must notify the Engineer. If there are no delays, the Works proceed to completion.
8. Entitled to Extension? (Decision Block): If there are delays, a decision is made on whether the Contractor is entitled to an extension of time. If yes, the Contractor gives notice for the extension. If not, the Contractor proceeds with the Works.
9. Engineer may instruct to suspend Works: The Engineer has the authority to instruct the Contractor to suspend part or all of the Works.
10. Suspension > 84 days? (Decision Block): If the suspension lasts for more than 84 days, the Contractor may request the Engineer’s permission to proceed. If the suspension is less than 84 days, the Contractor is responsible for protecting, storing, and securing the Works.
11. Contractor and Engineer examine Works: After the permission or instruction to proceed is given, both parties jointly examine the Works.
12. Contractor makes good any defects: Finally, the Contractor is responsible for rectifying any deterioration or defects that may have occurred during the suspension.
13. Works Completed: This is the end point, indicating that the Works have been completed.

Clause 8.1 – Commencement of Works

Explanation

1. Engineer gives 7 days’ notice of Commencement Date: The Engineer is required to give the Contractor a minimum of 7 days’ notice for the Commencement Date of the Works.
2. Commencement Date within 42 days after Letter of Acceptance: The Commencement Date should be within 42 days after the Contractor receives the Letter of Acceptance, unless otherwise stated in the Particular Conditions.
3. Contractor commences design and execution: After the Commencement Date, the Contractor is obligated to start the design and execution of the Works as soon as reasonably practicable.

Clause 8.2 – Time for Completion

Explanation

1. Contractor starts Works: The Contractor initiates the design and execution of the Works based on the approved time programme and the Commencement Date.
2. Time for Completion: The Contractor is obligated to complete the Works within the stipulated Time for Completion, which includes two main components:
   • Achieving Tests on Completion: The Contractor must pass the Tests on Completion as part of the requirements for considering the Works or Section as completed.
   • Completing all required work for Taking Over: The Contractor must complete all work specified in the Contract for the Works or Section to be considered ready for taking-over under Sub-Clause 10.1.
3. Works or Section Completed: This is the end point, indicating that the Contractor has fulfilled all requirements for the completion of the Works or Section, including passing the Tests on Completion and completing all necessary work.

Clause 8.3 – Programme

Explanation with Color Codes

1. Contractor receives notice under 8.1 (Pink): The Contractor receives the notice of the Commencement Date under Clause 8.1.
2. Submit time programme within 28 days (Light Brown): Within 28 days of receiving the notice, the Contractor must submit a detailed time programme to the Engineer.
3. Components of the Programme (Red):
   • Order of Work stages: The sequence in which the Contractor plans to execute the Works.
   • Periods for reviews and submissions: Timeframes for reviews under Sub-Clause 5.2 and other submissions, approvals, and consents.
   • Sequence and timing of inspections and tests: The timing for inspections and tests specified in the Contract.
   • Supporting report: A report detailing the methods to be used and an estimate of resources required.
4. Proceed with Works (Dark Orange): The Contractor proceeds with the Works according to the submitted programme.
5. Engineer’s 21-day review (Orange): The Engineer has 21 days to review the programme and notify the Contractor of any non-compliance.
6. Proceed or Revise Programme (Yellow): Depending on the Engineer’s review, the Contractor either proceeds with the existing programme or submits a revised one.
7. Contractor notifies Engineer of future events affecting work (Orange): If the Contractor foresees events that may affect the work, they must notify the Engineer.
8. Engineer may require estimate or proposal (Dark Orange): The Engineer may ask for an estimate of the impact of the future events and/or a proposal for variations.
9. Engineer gives notice for programme revision if needed (Dark Orange): If the Engineer finds that the programme is not in compliance, they will notify the Contractor.
10. Contractor submits revised programme (Dark Orange): The Contractor will submit a revised programme in accordance with the Engineer’s notice.

Clause 8.4 – Extension of Time for Completion

Explanation

1. Contractor starts Works (Pink): The Contractor commences the Works as per the Contract.
2. Completion Delayed? (Orange): A decision point to determine if the completion of the Works is delayed.
3. Identify Cause of Delay (Red): If the completion is delayed, the Contractor identifies the cause of the delay.
4. Causes of Delay (Dark Red): The Contractor categorizes the delay into one of the following:
   • Variation: A change in the scope of work.
   • Conditions in Sub-Clause: Any conditions mentioned in the Sub-Clauses of the Contract.
   • Adverse Climatic Conditions: Unforeseen weather conditions.
   • Shortages due to Epidemic or Government Actions: Unavailability of resources due to epidemic or governmental actions.
   • Delay by Employer: Any delay caused by the Employer or the Employer’s personnel.
5. Submit Claim under 20.1 (Teal): The Contractor submits a claim for an extension of time under Sub-Clause 20.1.
6. Engineer Reviews Claim (Light Purple): The Engineer reviews the claim and makes a determination.
7. Extension of Time Granted (Purple): If the claim is valid, an extension of time is granted to the Contractor.
8. Proceed to Completion (Dark Purple): If there is no delay, the Contractor proceeds to complete the Works within the stipulated time.

Clause 8.5 – Delays Caused by Authorities

Explanation

1. Contractor Follows Legal Procedures: The Contractor diligently follows the procedures laid down by the relevant legally constituted public authorities in the Country.
2. Authorities Delay Work?: A decision point to determine if the public authorities delay or disrupt the Contractor’s work.
3. Delay Unforeseeable?: If the work is delayed by the authorities, the Contractor assesses whether the delay was unforeseeable.
4. Submit Claim under 20.1: If the delay is unforeseeable, the Contractor submits a claim for an extension of time under Sub-Clause 20.1.
5. Engineer Reviews Claim: The Engineer reviews the claim and makes a determination.
6. Extension of Time Granted: If the claim is valid, an extension of time is granted to the contractor.
7. Proceed to Completion: If there is no delay or if the delay was foreseeable, the Contractor proceeds to complete the Works within the stipulated time.

Clause 8.6 – Rate of Progress

Explanation

1. Contractor Starts Works: The Contractor commences the Works as per the Contract.
2. Progress Too Slow?: A decision point to determine if the actual progress is too slow to complete the Works within the Time for Completion.
3. Submit Revised Programme: If the progress is too slow, the Contractor is instructed to submit a revised programme under Sub-Clause 8.3.
4. Engineer Reviews Programme: The Engineer reviews the revised programme and makes a determination.
5. Adopt Revised Methods: If the Engineer approves, the Contractor adopts the revised methods to expedite progress.
6. Proceed to Completion: The Contractor proceeds to complete the Works within the stipulated time or the extended time, as the case may be.

Clause 8.7 – Delay Damages

Explanation

1. Contractor Fails to Complete on Time: The starting point is the Contractor’s failure to complete the Works within the Time for Completion.
2. Pay Delay Damages: The Contractor is obligated to pay delay damages to the Employer for the failure to complete on time.
3. Amount in Appendix to Tender: The amount of delay damages is specified in the Appendix to Tender.
4. Limit to Maximum Amount: The total amount of delay damages is limited to the maximum amount stated in the Appendix to Tender.
5. Proceed to Completion: Despite the delay damages, the Contractor is still obligated to complete the Works.
6. Obligations Under Contract: The Contractor must fulfill all other duties, obligations, or responsibilities under the Contract.

Clause 8.8 – Suspension of Work

Explanation

1. Engineer Instructs Suspension: The Engineer may instruct the Contractor to suspend part or all of the Works.
2. Protect, Store, Secure Works: Upon receiving the instruction, the Contractor is responsible for protecting, storing, and securing the part or the whole of the Works against any deterioration, loss, or damage.
3. Engineer Notifies Cause: The Engineer may notify the cause for the suspension.
4. If Contractor’s Responsibility: If the cause of the suspension is the responsibility of the Contractor, then Sub-Clauses 8.9, 8.10, and 8.11 do not apply.
5. If Not Contractor’s Responsibility: If the cause is not the responsibility of the Contractor, then the process proceeds to Sub-Clause 8.9 for further actions.

Clause 8.9 – Consequences of Suspension

Explanation

1. Contractor Suffers Delay/Cost Due to Suspension: If the Contractor suffers delay and/or incurs cost from complying with the Engineer’s suspension instructions, the process starts here.
2. Give Notice to Engineer: The Contractor must give notice to the Engineer about the delay and/or incurred cost.
3. Decision Making – Is Delay/Cost Due to Contractor’s Fault?:
   • If yes, then the Contractor is not entitled to any extension of time or payment of cost (No Entitlement for Contractor’s Faults).
   • If no, then the process moves to the next step.
4. Entitled to Extension of Time under 8.4: The Contractor is entitled to an extension of time for any such delay, if completion is or will be delayed, under Sub-Clause 8.4.
5. Payment of Cost Included in Contract Price: Any cost incurred due to the suspension will be included in the Contract Price.
6. Engineer Proceeds with 3.5 Determinations: After receiving the notice, the Engineer will proceed in accordance with Sub-Clause 3.5 to agree or determine the matters.

Clause 8.10 – Payment for Plant and Materials in Event of Suspension

Explanation

1. Work on Plant or Delivery Suspended for >28 Days: The process starts when the work on Plant or delivery of Plant and/or Materials has been suspended for more than 28 days.
2. Marked as Employer’s Property: The Contractor must mark the Plant and/or Materials as the Employer’s property in accordance with the Engineer’s instructions.
3. Contractor Entitled to Payment of Value: After marking the Plant and/or Materials as the Employer’s property, the Contractor is entitled to payment of their value as of the date of suspension.

Clause 8.11 – Prolonged Suspension

Explanation

1. Suspension Continues for >84 Days: The process starts when the suspension under Sub-Clause 8.8 has continued for more than 84 days.
2. Contractor Requests Engineer’s Permission to Proceed: The Contractor may request the Engineer’s permission to proceed with the work.
3. Decision Making – Permission Not Given in 28 Days:
   • If the Engineer does not give permission within 28 days after being requested, the process moves to the next step.
4. Treat Suspension as Omission under Clause 13: The Contractor may treat the suspension as an omission under Clause 13 of the affected part of the Works.
5. Contractor May Give Notice of Termination under 16.2: If the suspension affects the whole of the Works, the Contractor may give notice of termination under Sub-Clause 16.2.