Termination of Construction contract .

*** *** If the Contractor being an individual or a firm commit any "Act of insolvency" or being an Incorporated Client shall have an order for compulsory winding up made against it or pass an effective resolution for winding up voluntarily or subject to the supervision of the court and of the official assignee of the liquidator in such acts of insolvency or winding up shall be unable within seven days after notice to him requiring him to do so, to show to reasonable satisfaction of the Architect that he is able to carry out and fulfil the contract, and to give security thereof, if so required by the Architect, or if the Contractor (whether an individual firm or incorporated Client) shall suffer execution to be issued or shall suffer any payment under this contract to be attached by or on behalf of any of the creditors of the Contractor, or shall assign or sublet this contract without the consent in writing of the Architect first obtained, or shall charge or encumber this contract or any payments due or which may become due to the Contractor thereunder, or if the Architect shall certify in writing to the Client that the Contractor
i. Has abandoned the contract or
ii. Has failed to commence the works, or has without any lawful excuse under these conditions suspended the progress of the works for fourteen days after receiving from the Architect written notice to proceed, or,
iii. Has failed to proceed with the works with such diligence and failed to make such due progress as would enable the works to be completed within the time agreed upon, or
iv. Has failed to remove materials from the site or to pull down and replace work for seven days after receiving from the Architect written notice that the said materials or work were condemned and rejected by the Architect under these conditions, or
v. Has neglected or failed persistently to observe and perform all or any of the acts, matters or things by this contract to be observed and performed by the Contractor for seven days after the written notice shall have been given to the Contractor requiring the Contractor to observe or perform the same, or
vi. Has to the detriment of good workmanship or in defiance of the Architect's instructions to the contrary sublet any part of the contract.
Then and in any of the said cases the Client with the written consent of the Architect may notwithstanding any previous waiver, after giving seven days' notice in writing to the Contractor, determine the contract, but without hereby affecting the powers of the Architect or the obligations and liabilities of the contract the whole of which shall continue in force as fully as if the contract had not been so determined and as if the works subsequently executed had been executed by or on behalf of the Contractor. And further, the Client under instructions of the Architect, by his agents or servants may enter upon and take possession of the works and all plant, tools, scaffoldings, sheds, machinery, and other power utensils and materials lying upon the premises or the adjoining lands or roads, and use the same as his own property or may employ the same by means of his own servants and workmen in carrying on and completing the works or by employing any other Contractors or other person or persons to complete the works, and the Contractor shall not in any way interrupt or do any act, matter or thing to prevent or hinder such other Contractor or other person or persons employed for completing and finishing or using the materials and plant for the works. When the works shall be completed or as soon thereafter as convenient the Architect shall give notice in writing to the Contractor to remove his surplus materials and plant, and should the Contractor fail to do so within a period of fourteen days after receipt thereof, his Client shall sell the same by public auction and shall give credit to the Contractor for the amount realized. The Architect shall thereafter ascertain and certify in writing under his hand what (if anything) shall be due or payable to or by the Client for the value of the said plant and materials were so taken possession of by the Client and the expense or loss which the Client shall have been put to in procuring the works to be completed, and the amount, if any, owing to the Contractor and the amount which shall be due to the Contractor or to the Client, as the case may be, and the certificate of the Architect shall be final and conclusive between the parties.
B.41. Termination of Contract by Contractor.
If payment of the amount payable by the Client under certificate of the Architect with interest as provided for hereinafter shall be in arrears and unpaid for thirty days after notice in writing requiring payment of the amount with interest as aforesaid shall have been given by the Contractor, to the Client, or if the Client interferes with or obstruct the use of any such certificate, or the Client commits any "Act of insolvency" or if the Client (being an individual or firm) shall be adjudged an insolvent, or (being incorporated Client) shall have an order made against him or pass an effective resolution for winding up, either compulsorily or subject to the supervision of the court, or voluntarily, or if the official assignee or the liquidator in any such winding up shall be unable within fifteen days after notice to his requiring him to do, to show to the reasonable satisfaction of the Contractor that he is unable to carry out and fulfil the contract and to make contract, to give security of the same, or if the works be stopped for all payments due, and to become due thereafter, and if required by three months under the order of the Architect or the Client or by any injunction or other order of any court of law, then and in any of the said cases, the Contractor shall be at liberty to determine the contract by notice in writing to the Client, through the Architect and he shall be entitled to recover from the Client, payment for all works executed and for any loss he may sustain upon any plant or materials supplied or purchased or prepared for the purpose of the contract.
In arriving at the amount of such payment the net rates contained in the Contractor's original tender shall be followed, or where the same may not apply valuation shall be made.

Insurance in Construction work

Insurance. I. Without limiting his obligations and responsibilities the Contractor shall provide necessary insurance in terms approved by the Client, to cover the following, indemnifying the Client. The Contractor shall furnish a copy/copies of the policies to the Client within one month from the award of the contract.

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 a. Contractors All Risk Insurance Policy covering loss or damage due to Fire, Lightning, Collapse, Defective Workmanship and/or materials, flood, storm, theft, burglary, malicious damage, subsidence riots etc.

b. Third Party Liability.

c. Accident insurance to any workmen/staff, casual or otherwise, under the Workmen's Compensation Act in accordance with the latest amended provision of the Workmen's Compensation Act.

d. Contractor's tools, tackle and machinery.

All risks to materials during transit.

f. Any other Insurance required for fully indemnifying the Client from any claim that may arise on account of the Contractor's operation at the site.

II. The above-mentioned insurance coverage shall be with effect from the commencement of the works, and in case the Contractor fails to affect the insurance coverage and keep in force the insurance referred to under clause B.30.I. any other insurance that he may be required to effect under the terms of the contract, then the Client may effect and keep in force any such insurance and to such premium or premiums as may be necessary for that purpose and is to deduct the same from time to time from the money due or which may become due to the Contractor in the manner laid down in clause B.27 hereunder.

Click on the image to download Contractor All risk insurance policy

B.32. Insurance in respect of Damage to Persons and Property.

I.1. The Contractor shall be responsible for all injury to a person, animals or things, and for all structural and decorative damage to property which may arise from the operation or neglect of himself or of any nominated Sub-Contractor's employees, whether such injury or damage arises from the carelessness, accident or any other cause whatever in any way connected with the carrying out this contract. This clause shall be held to include inter-alia, any damage to buildings, whether immediately adjacent or otherwise, and any damage to roads, streets, footpaths, bridges or ways as well as damage caused to the buildings and work forming the subject of this contract by frost or other inclemency of the weather. The Contractor shall indemnify the Client and hold him harmless in respect of all and any expenses arising from any such injury or damage to persons or property as aforesaid and also in respect of any claim made in respect of injury or damage under any Act of Government or otherwise and also in respect of any award of compensation or damages consequent upon the such claim.

I.2. The Contractor shall reinstate all damage of every sort mentioned in this clause, so as to deliver up the whole of the contract works complete and perfect in every respect and so as to make good or otherwise satisfy all claims for damage to the property of the third parties.

I.3. The Contractor shall indemnify the Client against all claims which may be made against the Client by any member of the public or other third party in respect of anything which may arise in respect of the works or in consequence thereof and shall at his own expense arrange to effect and maintain, until the virtual completion of the contract, with an approved office policy of insurance in the joint names of the Client and the Contractor against such risks and deposit such policy or policies with the Architect from time to time during the currency of this contract. The Contractor shall similarly indemnify the Client against all claims which may be made upon the Client whether under the Workmen's Compensation Act or any other statute in force during the currency of this contract or at common law in respect of any employee. I.4.Sub-Contractor shall at his own expense effect and maintain until the virtual completion of the contract, with an approved office a policy of insurance in the joint names of the Contractor and the Client against such risks and deposit such policy or policies with the Clients from time to time during the currency of the contract.

I.5.The Contractor shall be responsible for anything which may be excluded from the Insurance Policies above referred to and also for all other damages to any property arising out of incidental to the negligence or defective carrying out of this contract. He shall also indemnify the Client in respect of any costs, charges or expenses arising out of any claim or proceedings and also in respect of any award of or compensation of damage arising therefrom.

I.6.The Client with the concurrence of the Architect shall be at liberty and is hereby empowered to deduct the amount of any damage, compensation, costs, charges and expenses arising or accruing from or in respect of any claim or damage from any sum or sums due to or become due to the Contractor.

II. Without limiting his obligations and responsibilities above, the Contractor shall provide necessary insurance in terms approved by the Client, to cover the following, indemnifying the Client. The Contractor shall furnish a copy/copy of the policies to the Client within one month from the award of the contract.

a. Contractors all Risk Insurance Policy covering loss or damage due to Fire, Lighting Collapse, defective Workmanship and/or materials, flood, storm, theft, burglary, malignant damage, subsidence riots etc. b. Third-Party Liability. c. Accident Insurance to any workmen/staff, casual or otherwise, under the Workmen's Compensation Act in accordance with the latest amended provision of the Workmen's Compensation Act. d. Contractor's tools, tackle and machinery. e. All risks to materials during transit. f. Any other insurance is required to fully indemnify the Client from any claim that may arise on account of the contractor's operation at the site.

III. The above-mentioned insurance coverage shall be with effect from the commencement of the works. In case the Contractor fails to effect the insurance coverage and keep in force the insurance referred to above, any other insurance that he may be required to effect under the terms of the contract, then the Client may effect and keep in force any such insurance and to such premium or premiums as may be necessary for that purpose and is to deduct the same from time to time from the monies due or which may become due to the Contractor in the manner laid down in clause. B.33. Labour and General Laws.

1. The Contractor shall employ the labour in sufficient numbers directly or through the approved Sub-Contractors, stipulate their terms and conditions of service, for the specified period, services till the duration of completion of work undertaken under this contract, and fix their wages in accordance with the provisions of the Minimum Wages Act and make arrangements to pay the same periodically. It is his responsibility to maintain the required rates of the decree specified in the contract and to the satisfaction of the Client/Architect.

2. The Contractor shall provide the welfare amenities to the labour employed by him or the Sub-Contractor and in case he employs 100 or more contract labour, he shall make arrangements to provide a canteen facility, rest room facilities, provide and maintain a sufficient supply of wholesome drinking water for the contract labour at a convenient place, sufficient number of latrines and urinals, washing facilities, first aid facilities, etc., as provided under the Contract Labour (Regulations and Abolition) Act, 1970. He shall not employ any person who is under 15 years of age. The wages fixed by him shall be in accordance with the Minimum Wages Act and in the event of any dispute arising between the Contractor and his labour on the ground that the wages paid are not fair and reasonable or in accordance with the law, the Contractor alone shall be responsible for making good any difference in wages. Any dispute arising in regard to the above shall be referred without delay to the Client. Any dispute shall not in any way affect the work in progress and in wages, he shall be entitled to deduct the amounts from the Contractor's amount payable to the Contractor. The decision taken by the Client in this regard shall not affect the conditions in the contract regarding a payment made by the Client at the accepted tender rates.

3. The Contractor or the Sub-Contractor shall, as the case may be, obtain a licence to perform/execute the contract work as required under the Contract Labour (Regulation and Abolition) Act, 1970 comply with the provision of the Payment of Wages Act 1936, Minimum Wages Act 1948, Employees Liability Act 1938, Workmen's Compensation Act 1923, Industrial Disputes Act 1947, maintain registers under various labour statutes applicable to contract labour or any modifications thereof made in this enactments from time to time.

4. The Contractor shall indemnify the Client against any payment to be made under and for the observance of the regulations aforesaid without prejudice to his right to claim indemnity from his Sub-Contractors.

5. The Contractor shall be responsible for and shall part any compensation to his own workmen under the Workmen's Compensation Act, (hereinafter called "the said act") for injuries caused to the workmen. If such compensation is paid by the Client as a principal under sub-section of the said act on behalf of the Contractor, it shall be recoverable by the Client from the Contractor under sub-section of the said section. Such compensation shall be recovered in the manner laid down in the clause above (Certificates and Payments).

6. The Contractor shall be responsible for and shall pay all the expenses for providing medical aid to any workmen who may suffer bodily injury as a result of an accident and hospitalization expenses. If such expenses are incurred by the Client, the same shall be recovered from the Contractor forthwith and be deducted without prejudice to any other remedy by the Client from any amount due or that may become due to the Contractor.

7. The Contractor shall provide all personal safety equipment and first aid and apparatus for the persons employed on the site and maintain the same in good condition and suitable for immediate use at any time.

B.34. Nuisance. The Contractor shall not at any time do, cause or permit any nuisance on the site or do anything which shall cause unnecessary disturbance or inconvenience to Clients, tenants, or occupants of other properties near the site of work and to the public generally. The Contractor shall indemnify the Client in respect of all claims, demands, proceedings, damages, costs, charges, and expenses whatsoever arising out of or in relation to any such nuisance in so far as the Contractor is responsible thereof.

B.35. Fire Insurance. a. The Contractor shall at the time of signing the contract insure the works and keep them insured until the virtual completion of the contract against loss or damage by fire in an office to be approved by the Architect, in the joint names of the Client and Contractor (the name of the former being placed first in the policy), for the full amount of the contract and for any further sum if called upon to do so by the Architect, the premium of such further sum being allowed to the Contractor as an authorized extra. Such policy shall cover the property of the Client only, fees for assessing the claim and in connection with his services generally therein, and shall not cover any property of the Contractor or any Sub-Contractor or employee. The Contractor shall deposit the policy and receipts for the premium with the Architect within twenty-one days from the date of signing the contract unless otherwise instructed by the Architect. In default of the Contractor ensuring as provided above, the Client or the Architect on his behalf may so insure and may deduct the premiums paid from any money due or which may become due to the Contractor. The Contractor shall as soon as the claim under the policy is settled or the work reinstated by the Insurance Office, should they elect to do so, proceed with all due diligence with the completion of the works in the said manner as though the fire had not occurred and in all respects under the same conditions of contract. The Contractor, in case of rebuilding or reinstatement after the fire, shall be entitled to such extension of time for completion as the Architect deems fit.

b. The amount so due as aforesaid shall be the total value of the works duly executed and of the contract materials and goods delivered upon the sites for use in the works up to and including a date,  not more than seven days prior to the date of the said certificates less the amount to be retained by the Client (as hereinafter provided) and less any instalments previously paid under this clause. Provided that such certificates shall only include the value of the said materials and goods as and from time as they are reasonable, properly and not prematurely brought upon the site and then only if properly stored and/or protected against the weather.