Standard Form of Contract For

Maintenance and Renovation Works

For use in the Hong Kong Special Administrative Region

The Hong Kong Institute of Surveyors

First Edition 2013
 Standard Form of Contract for Maintenance and Renovation Works

STANDARD FORM OF CONTRACT FOR MAINTENANCE AND RENOVATION WORKS

This Agreement

read in conjunction with the Particulars of Agreement hereto is made on the Contract Signing Date
between the Employer of the one part and the Contractor of the other part.

Whereas:

Recital 1: The Employer wishes to have the Works carried out at the Site.

Recital 2: The Employer has provided the Contractor with the Tender Documents showing and describing
the whole of the Works to be done.

Recital 3: The Contractor has submitted a tender (“the Tender”) based on the Tender Documents (as
may be modified by any tender addenda issued by the Employer to the Contractor prior to the
submission of the Tender).

Recital 4: To the extent that the Employer and the Contractor (“the Contract Parties”) have further
clarified or adjusted the requirements of the Tender Documents and the proposals in the
Tender, such clarifications or adjustments have been exchanged in writing after the submission
of and before the acceptance of the Tender and accepted by the Contract Parties to form part
of this Contract (“Tender Correspondence”).

Now

the Contract Parties hereby agree as follows:

Article 1: Object of this Contract

The Contractor will carry out and complete the Works shown or described in the Contract
Documents defined in Article 4.1 hereof for the consideration hereinafter provided.

Article 2: Contract Price

The Employer will pay to the Contractor the Contract Price stated at Item 17 of the Particulars
of Agreement, or such other sum as shall become payable at the times and in the manner
stated in this Contract.

Article 3: Contract Periods

The Contractor will complete the Works Sections within the respective Contract Period or
Periods or such extended period or periods as may be authorized under this Contract.

Article 4: Contract Documents

4.1 The documents constituting this Contract (“the Contract Documents”) consist of the following:

(a) this Contract Agreement (including the Particulars of Agreement);

(b) the Tender Correspondence;

(c) the Contract Conditions and Appendix A both annexed hereto as may be modified by the
Special Contract Conditions included in the Tender Documents; and

(d) the Tender Documents as completed by the Contractor when submitting the Tender.

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Standard Form of Contract for Maintenance and Renovation Works

4.2 Three sets of the Contract Documents are signed. One set contains the original and the two
other sets are duplicates. The original is to be kept by the Contract Administrator and the
duplicates are to be kept each by the Employer and the Contractor.

4.3 This Contract shall be deemed to have taken effect from the Contract Award Date.

*SIGNED SEALED AND DELIVERED as a deed/SIGNED by the Employer

The Employer _______________________________________________________________________________

Company seal/chop (if company) _______________________________________________________________

Signature of legal or authorized representative ___________________________________________________

Name _____________________________________________ Position _____________________________

Signature of witness _________________________________________________________________________

Name _____________________________________________ Position _____________________________

*SIGNED SEALED AND DELIVERED as a deed/SIGNED by the Contractor

The Contractor _____________________________________________________________________________

Company seal/chop (if company) _______________________________________________________________

Signature of legal or authorized representative ___________________________________________________

Name _____________________________________________ Position _____________________________

Signature of witness _________________________________________________________________________

Name _____________________________________________ Position _____________________________

*delete as appropriate

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 Standard Form of Contract for Maintenance and Renovation Works

Particulars of Agreement
Item Entities or Defined Terms Particulars or Definitions
Contract
1 Contract Signing Date
2 Contract Award Date (being the date of the
letter issued by or on behalf of the Employer
awarding this Contract to the Contractor)
3 Project Title
4 Project Address
5 Contract Title
6 Works (brief description)
7 Locations of Site (same as the Project
Address if not stated)
Contract Parties The Employer and the Contractor
8 Name of the Employer
9 Registered Address of the Employer
10 Name of the Contractor
11 Registered Address of the Contractor
Consultants
12 Name of the Contract Administrator (role
taken up by the Employer if not stated)
13 Registered Address of the Contract
Administrator
14 Name of the Quantity Surveyor (role taken up
by the Contract Administrator if not stated)
15 Registered Address of the Quantity Surveyor
Contract Type and Price
16 Contract Type (delete 'Yes' where inapplicable) Lump Sum Contract Yes
Clause 6.6.2
Yes
Remeasurement Contract Yes apply to this
Contract
Rates Only Contract Yes
17 Contract Price (for Lump Sum Contract or
Remeasurement Contract only, leave it blank
for Rates Only Contract, Contract Price for
Rates Only Contract to be determined from
time to time according to the Contract
Conditions) (HK$ )

Time
18 Date for Access to the Site Portions of the Site Date

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Standard Form of Contract for Maintenance and Renovation Works

19 Names of Works Sections Phase / Section / Stage Description

20 Contract Periods Works Commencement Completion Durations

Sections Date (or a Date (or a in calendar
mechanism to mechanism days
determine the to determine
Commencement the
Date) Completion
Date)

21 Rate of Liquidated Damages for Delayed Works Sections Rate HK$/calendar day
Completion (If none or “N/A” stated,
general damages apply)

22 Defects Liability Period Works Sections Durations in calendar

months from Completion
Date of each Works
Section

Documents
23 Tender Documents comprising (delete “Yes” if not applicable)
(a) Conditions of Tendering Attached hereto Yes
Bound separately and signed Yes
Not provided Yes
(b) Form of Tender Attached hereto Yes
Bound separately and signed Yes
Not provided Yes

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 Standard Form of Contract for Maintenance and Renovation Works

(c) Special Contract Conditions Attached hereto Yes

Bound separately and signed Yes
Not provided Yes
(d) Specification Attached hereto Yes
Bound separately and signed Yes
Not provided Yes
(e) Schedule of Works Attached hereto Yes
Bound separately and signed Yes
Not provided Yes
(f) Schedule of Drawings Attached hereto Yes
Bound separately and signed Yes
Not provided Yes
24 Tender Correspondence (being documents Date Ref. Media From To With
submitted by the Contractor with the Tender Type Attachments
in addition to the Tender Documents and
Yes No
further written exchanges referred to in
Recital 4, and accepted by the Contract Yes No
Parties to form part of this Contract) Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Abbreviations:

Payment terms
25 Amount of advance payment
26 Method of recovery of advance payment
27 Retention Percentage
28 Maximum Retention
29 Period for Honouring Payment

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Standard Form of Contract for Maintenance and Renovation Works

Insurances and bond

30 Contractors’ All Risks and Third Party Liability
Insurance
(a) Party responsible for taking out the The Employer / the Contractor
insurance (delete as appropriate)
(b) Percentage of professional fees in case _____ %
of reinstatement
(c) Amount for the removal of debris $ __________________________

(d) Percentage for escalation clause _____ %

(e) Material Damage insurance excess in

respect of each and every occurrence of
loss or damage
(i) Generally $ __________________________
(ii) Loss of or damage to scaffolding, _____ % of loss or damage
shuttering, formwork, timbering,
screens, fencing and hoardings
(iii) Loss of or damage to the Insured _____ % of loss or damage
Property caused by water
(f)) Limit of indemnity for third party liability

(i) Generally $ __________________________ maximum for any

one occurrence but unlimited in the aggregate
amount for the period of insurance
(ii) Loss or damage arising from $ __________________________ maximum for any
subsidence, collapse, vibration, one occurrence and any one period of insurance
or the weakening or removal of
support to any property, land or
building
(iii) Loss or damage to Principals' $ __________________________ maximum for any
properties which are not covered one occurrence and any one period of insurance
by the Materials Damage section
of the insurance
(g) Third party liability insurance excess in
respect of each and every occurrence of
loss or damage
(i) Generally $ __________________________

(ii) Loss or damage arising from _____ % of loss or damage

subsidence, collapse, vibration,
or the weakening or removal of
support to any property, land or
building
(iii) Loss or damage to Principals’ _____ % of loss or damage
properties which are not covered
by the Materials Damage section
of the insurance
(iv) Loss of or damage caused by _____ % of loss or damage
water
(v) Loss of or damage to existing _____ % of loss or damage
underground services

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 Standard Form of Contract for Maintenance and Renovation Works

(vi) Loss of or damage to oil filled _____ % of loss or damage

cable, fibre-optic cable or
telephone cable of 4,000 pairs or
more
31 Amount of surety bond (consideration
should be given to the amount of advance
payment when fixing the amount of surety
bond)

Other terms and conditions

32

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Standard Form of Contract for Maintenance and Renovation Works

CONTRACT CONDITIONS

CONTENTS

1. INTERPRETATIONS

1.1 Building Manager

1.2 Clerk of Works
1.3 Contractor
1.4 Contract Administrator
1.5 Contract Drawings
1.6 Contract Rates
1.7 Contract Specification
1.8 Day and counting of periods
1.9 Defects Rectification Certificate
1.10 Employer
1.11 Excepted Risks
1.12 Excusable and Compensable Events
1.13 Headings
1.14 Materials
1.15 Money recoverable from Contractor
1.16 Money recoverable from Employer
1.17 Plant
1.18 Quantity Surveyor
1.19 Schedule of Works
1.20 Separate Contractor
1.21 Site
1.22 Substantial Completion Certificate
1.23 Temporary site facilities
1.24 Variation

2. SITE

2.1 Provision of Site

2.2 Site access
2.3 House rules of Building Manager
2.4 Protection of access routes
2.5 Off-site areas
2.6 Site visit
2.7 Site investigation and condition survey reports
2.8 Access during Defects Liability Period
2.9 Objects of antiquity

3. WORKS

3.1 Definitions
3.2 Design of permanent work
3.3 Development of design
3.4 Design of temporary work
3.5 Contractor’s design to be approved
3.6 Testing and commissioning
3.7 Contractor’s alternative proposals

4. TIME

4.1 Contract commencement

4.2 Consent to commencement
4.3 Commencement of Works

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 Standard Form of Contract for Maintenance and Renovation Works

4.4 Working hours

4.5 Notices and claims
4.6 Mitigation of delay or disruption
4.7 Determining time effect
4.8 Valuing cost effect
4.9 Damages for delayed completion
4.10 Substantial completion

5. CONTRACT BASIS

5.1 Interpretation of Contract Documents

5.2 Clarification of discrepancy or divergence
5.3 Supplementary information
5.4 Number of copies of Contract Documents and supplementary information
5.5 Instructions
5.6 Documents on site
5.7 Use of drawings

6. PRICES

6.1 Lump Sum Contract

6.2 Remeasurement Contract
6.3 Rates Only Contract
6.4 No adjustment for rises or falls in costs of labour and materials
6.5 Arithmetical errors
6.6 Quantities for Lump Sum Contract
6.7 Provisional quantities
6.8 Method of measurement
6.9 Provisional sums
6.10 Prime cost rates
6.11 Variations
6.12 Valuation of Variations and provisional sum items
6.13 Contractor’s claims for extras
6.14 Invoices, receipts, etc.
6.15 Payment
6.16 Final Account
6.17 Final Certificate

7. QUALITY

7.1 Quality liability

7.2 Materials, workmanship and method to comply with Contract
7.3 Approval
7.4 Samples
7.5 Testing and inspection
7.6 Defects liability
7.7 Warranties and guarantees

8. CONTRACTOR’S DOCUMENTS

8.1 Shop drawings

8.2 Construction method statement and programme
8.3 Progress reports
8.4 As-built records

9. GENERAL OBLIGATIONS

9.1 Statutory obligations

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Standard Form of Contract for Maintenance and Renovation Works

9.2 Intellectual property

9.3 Assignment
9.4 Care of Works
9.5 Injury to persons and property and indemnity to Employer
9.6 Provision of all things necessary
9.7 Labour and site management team
9.8 Temporary site facilities
9.9 Setting out
9.10 Cleanliness and tidiness
9.11 Protection
9.12 Visitors
9.13 Prevention of bribery offences

10. INSURANCES AND BOND

10.1 Employees’ Compensation Insurance
10.2 Contractors' All Risks and Third Party Liability Insurance
10.3 Taking out insurances
10.4 Company master policy or annual policy
10.5 Maintaining insurances
10.6 Remedy for failure to insure
10.7 Compliance with insurance conditions
10.8 Reporting incidents
10.9 Insurances not affecting Contractor’s liability
10.10 Surety bond or cash security

11. DETERMINATION

11.1 Determination by Employer

11.2 Determination by Contractor
11.3 Consequences of determination

12. DISPUTE RESOLUTION

12.1 Procedures
12.2 Reference to Designated Representatives
12.3 Reference to mediation
12.4 Reference to arbitration
12.5 Arbitrator’s powers
12.6 Contractor to continue to proceed diligently
12.7 Governing law

APPENDIX A - SURETY BOND (PRO-FORMA)

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 Standard Form of Contract for Maintenance and Renovation Works

CONTRACT CONDITIONS

1. INTERPRETATIONS

1.1 Building Manager

“the Building Manager” means the person providing estate, property or facility management
services to the premises where the Site is.

1.2 Clerk of Works

“the Clerk of Works” means the person or persons appointed by the Employer or the Contract
Administrator on site and acting under the direction of the Contract Administrator to watch,
inspect, check, and record the Works, any resources, facilities and activities on the Site.

1.3 Contractor

“the Contractor” means the person named in the Contract Agreement who has been appointed
by the Employer to carry out and complete the Works required under this Contract.

1.4 Contract Administrator

1.4.1 “the Contract Administrator” means the person named in the Contract Agreement who has
been appointed by the Employer to supervise, on behalf of the Employer, the Contractor in
carrying out the Works. When required by these Contract Conditions to issue any certificate, the
Contract Administrator shall act independently and fairly as between the Contract Parties.

1.4.2 If the person named in the Contract Agreement as the Contract Administrator ceases to have
authority or capability to act, the Employer shall appoint another person to whose appointment
the Contractor has no reasonable objection as a replacement. The replacement Contract
Administrator shall not overrule the validity of any certification as to quality or extension of time
issued by the previous Contract Administrator to the disadvantage of the Contractor.

1.5 Contract Drawings

“the Contract Drawings” means the Tender Drawings included in the Tender Documents, and
any other drawings as may be prepared by the Contractor and submitted with his Tender and
expressly accepted in the Tender Correspondence by the Employer to form part of this Contract.

1.6 Contract Rates

1.6.1 “Contract Rates” means the rates inserted in the Schedule of Works as may be modified by the
Tender Correspondence.

1.6.2 A Contract Rate shall be deemed to include for all labour costs, material costs, plant costs,
indirect costs, management costs, overheads, profits, taxes, and costs of all ancillary work and
liability indispensably necessary for the item of work to which the Contract Rate applies, and shall
not be adjusted for error made by the Contractor in building up the Contract Rate.

1.7 Contract Specification

“the Contract Specification” means the Specification included in the Tender Documents, and
any other specification as may be prepared by the Contractor and submitted with his Tender and
expressly accepted in the Tender Correspondence by the Employer to form part of this Contract.

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Standard Form of Contract for Maintenance and Renovation Works

1.8 Day and counting of periods

A day means a calendar day unless otherwise stated. When counting days, 1 day means 24
hours. Within 1 day means within 24 hours, not within the same day. “Commencing or starting
from a certain day” means that certain day is day 1 for counting. “Commencing or starting after
a certain day” means the day following that certain day is day 1 for counting.

1.9 Defects Rectification Certificate

“Defects Rectification Certificate” means a certificate issued by the Contract Administrator after
completion by the Contractor of rectification of all defects notified to him in respect of a Works Section.

1.10 Employer

“the Employer” means the person named in the Contract Agreement who has appointed the
Contractor to carry out and complete the Works required under this Contract and who has
undertaken to pay the Contractor for executing the Works.

1.11 Excepted Risks

“Excepted Risks” means:

(a) any consequence of war (whether war be declared or not) in which Hong Kong is actively
engaged, the invasion of Hong Kong, acts of terrorists in Hong Kong, civil war, rebellion,
revolution or military or usurped power in Hong Kong, riot, commotion or disorder in Hong
Kong other than amongst the employees of the Contractor or any person for whom the
Contractor is responsible;

(b) any direct consequence of the faulty design provided by the Contract Administrator or other
designers engaged by the Employer or the Contract Administrator;

(c) ionising radiation or contamination by radioactivity from any nuclear fuel or from any
nuclear waste from the combustion of nuclear fuel, radioactive toxic explosive or other
hazardous properties of any explosive nuclear assembly or nuclear component thereof; and

(d) pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic
speeds.

1.12 Excusable and Compensable Events

1.12.1 “Excusable Events” are events the occurrence of which are at the risk of the Employer in so far as
the time to complete the Works is concerned. “Compensable Events” are events the occurrence
of which are at the risks of the Employer in so far as the price of the Works is concerned.
“Excusable Events” and “Compensable Events” are respectively defined as follows:

Event Delays or disruptions by reason of Excusa-ble Compen-sable

Code Events Events
A Force majeure Yes No
B Inclement weather conditions, being rainfall in excess of Yes No
twenty millimetres in a twenty-four hour period (midnight
to midnight) as recorded by the Hong Kong Observatory
station nearest to the Site, and/or their consequences
adversely affecting the progress of the Works
C The hoisting of tropical cyclone warning signal No. 8 Yes No
or above or the announcement of a Black Rainstorm
Warning, and/or its consequences adversely affecting
the progress of the Works

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 Standard Form of Contract for Maintenance and Renovation Works

D An Excepted Risk Yes Yes

E Fi re , l i g h t n i n g , e xp l o s ion, fl ood, burs ti ng or Yes No
overflowing of water tanks, apparatus or pipes,
earthquake, aircraft and other aerial devices or articles
dropped from them, not caused by the Contractor or
people for whom the Contractor is responsible
F Late provision of Contract Administrator’s instructions Yes Yes
expressly required by this Contract to be provided by a
specific time or before implementation of the matter
being instructed
G Late provision by the Contract Administrator of Yes Yes
instructions or information (including clarification of
any ambiguity, discrepancy in or divergence between
documents provided by the Employer or the Contract
Administrator, and including outstanding or new
information) required for the progressing of the
Works, after taking into account any mitigating effect
which could have been afforded if the Contractor
had requested for such instructions or information
reasonably in advance of the occurrence of the delays
or disruptions
H The opening up for inspection of work covered up or Yes Yes
the testing of materials or work and the consequential
making good which are additional to the Contract
requirements and instructed by the Contract
Administrator, provided that such materials and work
are in accordance with this Contract
I The carrying out of a Variation or the happening of an Yes Yes
event deemed to be a Variation
J Increase in the work to be carried out pursuant Yes Yes
to provisional items in this Contract of sufficient
magnitude that the increase was not apparent from
the Contract Documents
K A postponement of the Date for Access to any portion Yes Yes
of the Site unless this Contract has provided for such
occurrence
L A postponement of the Commencement Date of a Yes Yes
Works Section unless this Contract has provided for
such occurrence
M A suspension of the provision of the whole or a Yes Yes
portion of the Site as instructed by the Contract
Administrator beyond any provided for in this Contract
and not being due to a breach of contract or other
default by the Contractor or any person for whom the
Contractor is responsible
N A suspension of the progress of the whole or a part Yes Yes
of a Works Section as instructed by the Contract
Administrator beyond any provided for in this Contract
and not being due to a breach of contract or other
default by the Contractor or any person for whom the
Contractor is responsible
O A delay or disruption caused by a Separate Contractor Yes Yes

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P A delay caused by a statutory undertaker or utility Yes No

company carrying out work in pursuance of its
statutory obligations, not having a contractual
relationship with the Employer, the Contractor or any
person for whom the Employer or the Contractor is
responsible, and failing to commence or to carry out
its work in due time provided that the Contractor
has taken all practicable measures to cause it to
commence, carry out and complete its work on time
Q A failure of the Employer to supply or supply on time Yes Yes
materials that he agreed to provide for the Works
R A delay by a Government department in giving an Yes Yes
approval or a consent which is not the Contractor’s
responsibility to obtain
S An unreasonable delay by a Government department Yes No
in giving an approval or a consent which is the
Contractor’s responsibility to obtain, provided that any
disallowance of approval or consent attributable to the
Contractor’s lack of adequate submission shall not be
considered as unreasonable
T A special circumstance considered by the Contract Yes No
Administrator as sufficient grounds to fairly entitle the
Contractor to an extension of time
U An act of prevention, a breach of contract or other Yes Yes
default by the Employer or any person for whom the
Employer is responsible

1.12.2 The scope of each of the above event definitions is mutually exclusive. Any deletion or scope
reduction of an event definition above shall not expand the scope of the remaining unchanged
event definitions.

1.13 Headings

Headings to articles in the Contract Agreement or headings to clauses in the Contract Conditions
shall be for identification purposes only and shall not be read to restrict or enlarge the scope of
application of the articles or clauses under the headings.

1.14 Materials

“Materials” means materials and goods, and includes equipment or machinery for incorporation
into the Works.

1.15 Money recoverable from Contractor

When money is stated to be recoverable from the Contractor by the Employer, the amount shall
be deducted from the Contract Price and deducted from the next or further Payment Certificates
issued after the amount is ascertained until the amount is fully deducted. If the balance of the
Final Contract Price less retention fund is inadequate to cover the amount not yet deducted, the
residue amount may be recovered from the Contractor by the Employer as a debt which may be
set-off against any payment which the Employer is liable to pay to the Contractor under other
contracts.

1.6 Money recoverable from Employer

When money is stated to be recoverable from the Employer by the Contractor, the amount shall
be added to the Contract Price and added to the next or further Payment Certificates issued

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 Standard Form of Contract for Maintenance and Renovation Works

after the amount is ascertained, unless the Employer requests to settle and settles the payment
separately without adjustment to the Contract Price.

1.17 Plant

“Plant” means construction plant, equipment or machinery used for carrying out the Works.

1.18 Quantity Surveyor

1.18.1 “the Quantity Surveyor” means the person named in the Contract Agreement who has been
appointed by the Employer to value the Works.

1.18.2 If the person named in the Contract Agreement as the Quantity Surveyor ceases to have authority
or capability to act, the Employer shall appoint another person to whose appointment the
Contractor has no reasonable objection as a replacement.

1.19 Schedule of Works

“the Schedule of Works” means a document called as such and included in the Tender
Documents for the Contractor to show his price build-up of the Tender.

1.20 Separate Contractor

“Separate Contractor” means a person appointed by the Employer to carry out work, supply
goods or provide services in connection with but not forming part of the Works, but excludes any
statutory undertaker or utility company carrying out work in pursuance of its statutory obligations
and not having a contractual relationship with the Employer, the Contractor or any person for
whom the Employer or the Contractor is responsible.

1.21 Site

“the Site” means one or more areas or spaces, whether contiguous or not, on plan or on
elevation as described in the Contract Agreement as to be made available by the Employer to the
Contractor for the Contractor to carry out and complete the permanent portion of the Works or
for the Contractor to place his materials and temporary site facilities.

1.22 Substantial Completion Certificate

“Substantial Completion Certificate” means a certificate issued by the Contract Administrator

signifying the completion of a Works Section by the Contractor to the satisfaction of the Contract
Administrator.

1.23 Temporary site facilities

“Temporary site facilities” includes construction plant, tools, implements, safety belts, safety
helmets, safety appliances, roads and footpaths, gangways, ladders, working platforms,
scaffolding, catch fans, gondola, hoardings, covered walkways, screens, gates, gantries,
enclosures, barriers, tarpaulins, safety nets, safety screens, site offices, workshops and storage
sheds, sanitary convenience, drainage, telephone, water and electricity supply, lighting, directory
and warning signs, planking and strutting, shoring, props, falsework, formwork, refuse bins, etc.
all provided on site temporarily for the purpose of execution of the Works.

1.24 Variation

A “Variation” means a change (addition, omission, substitution, alteration, modification, etc.) as

instructed by the Contract Administrator to the design, quality or quantity of the Works or to the
time or manner for carrying out the Works from that provided for in this Contract, and includes
other events deemed by the Contract Conditions to be a Variation.

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2. SITE

2.1 Provision of Site

2.1.1 The Employer shall provide such portions of the Site to the Contractor on such access dates as
may be stipulated in the Contract Agreement. Provision of the Site shall entail the sustained use,
but not exclusive possession of the portions of the Site by the Contractor for the carrying out and
completion of the Works. The Contractor shall allow and protect legitimate occupiers and users
for the time being on the Site to have continued use of such portions of the Site not immediately
required by the Contractor for carrying out the Works.

2.1.2 The Contractor shall not obstruct the lawful and continued use by anyone of the land and
premises outside but in the vicinity of the Site.

2.1.3 Where exclusive possession of any portion of the Site is stated in this Contract, the Contractor
shall take over the relevant portion of the Site upon the respective access date and take
responsibility for the care thereof.

2.2 Site access

2.2.1 Where access to the Site is through land or premises which are not under the control of the
Employer, the Contractor shall procure any necessary right of access.

2.2.2 Where access to the Site is through land or premises which are under the control of the
Employer, the Employer shall provide the Contractor with right of access free of charge at such
time mutually agreed between the Contract Administrator and the Contractor. For the purposes
of this clause, where the Employer is the landlord or the incorporated owners or the Building
Manager of the premises in which the Site is situated, any individual units of the premises which
are separately owned or rented (such as residential flats, car parking spaces, offices, shops,
workshops, stores, and the like) shall be deemed to be under the control of the Employer. In all
other cases, the Employer shall not be deemed to be in control of units within the same premises
not owned or leased by him.

2.2.3 Physical means of access to the Site and to work locations within the Site by way of roads,
footpaths, bridges, tunnels, ladders, catwalks, scaffolding, gondolas, etc. shall be arranged for by
the Contractor unless otherwise stated in this Contract.

2.2.4 Entry and exit points to the Site shall be at locations shown or described in this Contract or,
when no specific locations are shown or described, at such locations determined by the Contract
Administrator. Subsequent re-location and re-sizing of the entry and exit points to suit the
sequence and progress of the Works shall be approved by the Contract Administrator and made
by the Contractor at his own expense.

2.2.5 The Contractor shall comply with all relevant regulations or restrictions of the Police, other
Government Authorities, and the Building Manager regarding access, usage of roads, parking
of lorries and similar, and shall submit all necessary applications and pay any necessary fees and
charges.

2.3 House rules of Building Manager

2.3.1 The Contractor shall comply with the house rules of the Building Manager in regard to the day to
day operation and use of the premises in which the Site is situated and in regard to any special
restrictions on maintenance or renovation works within the premises.

2.3.2 Any restrictions on access or working hours more stringent than those announced by the Building
Manager prior to the award of this Contract and affecting the Works shall be deemed to be a
Variation.

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 Standard Form of Contract for Maintenance and Renovation Works

2.3.3 If the Building Manager requires the payment of a deposit upon commencement of the Works,
the Contractor shall pay any such deposit to the Building Manager and arrange by himself for the
eventual release of the deposit.

2.4 Protection of access routes

The Contractor shall protect all access routes throughout the period of the Contract, and shall
remove any protection when no longer required and make good any disturbance.

2.5 Off-site areas

The Contractor shall arrange by himself any areas or spaces outside the Site that he requires to
prepare for the carrying out of the Works.

2.6 Site visit

2.6.1 The Contractor is deemed to have visited the Site and thoroughly acquainted himself with the
location, general site conditions, type of soil where underground work is required, accessibility,
storage space, restrictions for loading and off-loading materials, and any other conditions which
may affect his carrying out of the Works prior to entering into this Contract and is deemed to
have made due allowance for all such restrictions and factors in the Contract Price.

2.6.2 Any claim for extra payment or extension of the Contract Periods shall not be allowed on the
grounds of ignorance or misinterpretation of the site conditions.

2.7 Site investigation and condition survey reports

Any site investigation or condition survey reports or other information which may be made
available to the Contractor prior to the award of this Contract shall be the whole record of
such investigation or survey as has been carried out. Other than this, any such reports are given
without any warranty on the part of the Employer as to their accuracy or completeness, and they
shall be deemed to be supplied for the Contractor's information only.

2.8 Access during Defects Liability Period

2.8.1 The Employer shall provide the Contractor with a right of access to specific locations on the Site
for the specific purpose of rectifying defects arising during the Defects Liability Period at those
locations. The Contractor shall restrict himself to the specific locations and shall leave the Site as
soon as the defects have been rectified.

2.8.2 When existing facilities such as gondolas or lifting platforms are available for day to day use by
the Employer or the Building Manager subject to his control, and such existing facilities are useful
for rectifying defects, the Employer shall permit the use of such gondolas or lifting platforms by
the Contractor subject to payment of reasonable amounts for consumables. In other cases, the
Contractor shall provide his own temporary facilities required for rectifying defects.

2.9 Objects of antiquity

Any object of antiquity found on the Site shall be deemed to be the property of the Employer.
Upon discovery, the Contractor shall immediately report to the Contract Administrator who shall
issue instructions to deal with the issue. The Contractor shall permit others appointed by the
Employer to carry out examination, excavation or removal of the object of antiquity. Compliance
with the Contract Administrator’s instructions in this regard shall be deemed to be a Variation.

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Standard Form of Contract for Maintenance and Renovation Works

3. WORKS

3.1 Definitions

3.1.1 The Works include:

(a) permanent work required to be carried out and completed by the Contractor under this
Contract;

(b) temporary work required for the carrying out and completion of the permanent work;

(c) services required to be carried out and completed by the Contractor under this Contract;

(d) materials supplied by the Employer for incorporation by the Contractor into the Works after
they are handed over to the Contractor;

(e) design of any part of the permanent work if this is specified to be part of the Works;

(f) service and maintenance required to be carried out after substantial completion of the
Works; and

(g) provision of warranties and guarantees.

3.1.2 The Works exclude:

(a) materials supplied by the Employer for incorporation by the Contractor into the Works but
only until such time when they are handed over to the Contractor;

(b) materials or workmanship or method or work which is not in accordance with this Contract;
and

(c) work or services carried out by the Contractor without authority under this Contract.

3.2 Design of permanent work

Unless otherwise stated in this Contract or unless the Contractor has provided the design, and
subject to Clause 3.3 below, the design of the permanent work required for the Works shall be
the responsibility of the Employer who shall engage the Contract Administrator or other designers
to carry out the design work. The Contract Administrator shall be responsible for issuing and
explaining the design to the Contractor.

3.3 Development of design

3.3.1 Where any Contract Drawings or further drawings issued by the Contract Administrator after
the award of this Contract are described as “design intent drawings”, such drawings shall be
understood as indicating only the performance requirements, materials of the major components,
layout, positions, configurations, controlling dimensions, and size limitations required for the
finished work. The Contractor shall be responsible for the detailed design of the components
making up the complete system, installation or fitting, and the selection of materials in
compliance with the Contract Drawings and the further drawings.

3.3.2 The Contract Drawings or further drawings issued by the Contract Administrator after the award
of this Contract for the building services installations (deemed to include plumbing and drainage)
shall be understood as schematic and layout design drawings indicating only the performance
requirements, materials of the major components, layout, positions, configurations, controlling
dimensions and sizes required for the finished work. The Contractor shall be responsible for the
selection and fixing details of the system components, and the exact and co-ordinated routing of
pipework, ducting, cable and wiring in compliance with the Contract Drawings and the further
drawings.
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 Standard Form of Contract for Maintenance and Renovation Works

3.4 Design of temporary work

Unless otherwise stated in this Contract, the design of temporary work required for the Works (no
matter whether it has been shown on the Contract Drawings or not) shall be the responsibility of
the Contractor.

3.5 Contractor’s design to be approved

3.5.1 Any design for which the Contractor is responsible under this Contract shall be submitted to the
Contract Administrator for comment and approval before implementation.

3.5.2 The Contractor’s design shall be fit for the purpose for which it is intended. Approval by the
Contract Administrator shall not be taken as acceptance that the work is so fit for the purpose.

3.6 Testing and commissioning

Before they may be certified as substantially completed, all mechanically, hydraulically, electrically
or electronically operated parts of the Works and any parts of the Works connected by and
including pipes, ducts, conduits, trunking, wiring or cables shall be tested and commissioned in
accordance with the requirements of this Contract.

3.7 Contractor’s alternative proposals

3.7.1 The Contract Administrator may consider alternative design, materials, workmanship and
methods that the Contractor may propose but the Contract Administrator’s approval of such
alternatives shall be at the Contract Administrator’s sole discretion and the Contract Administrator
shall not be obliged to consider or approve any alternatives nor shall the Contract Administrator
be obliged to provide any reasons for disapproval of such alternatives. No such alternatives shall
be adopted without the prior written approval by the Contract Administrator. The approval shall
have no effect on the Contract Price or the Completion Date unless the effect is specifically stated
in the written approval, in which case, the approval shall be deemed to be a Variation instruction.
Under no circumstances shall the approval relieve the Contractor of his responsibilities under this
Contract.

3.7.2 For a material permitted under this Contract to be the subject of a proposal in regard to “equal
and approved” or “approved equal” brands or models or a number of choices of brands or
models, the Contractor may propose a brand or model of the same kind of material equal in
performance and quality to those originally specified or proposed in this Contract for the approval
by the Contract Administrator. No cost reduction shall be required if the alternative brand or
model is not cheaper than the cheapest of those originally specified or proposed in this Contract
by more than 10%, otherwise a share of the cost saving shall be proposed.

4. TIME

4.1 Contract commencement

This Contract shall be deemed to take effect and commence on the date of a letter issued by or
on behalf of the Employer awarding this Contract to the Contractor, irrespective of when the
Contract Agreement is signed.

4.2 Consent to commencement

The Contractor shall submit all applications required by law to be submitted by contractors and
shall pay all associated charges prior to the commencement of work on site or as and when the
same fall due, whichever is the later.

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Standard Form of Contract for Maintenance and Renovation Works

4.3 Commencement of Works

The Contractor shall commence each Works Section on its Commencement Date stated in the
Contract Agreement, and shall complete each Works Section on or before its Completion Date
stated in the Contract Agreement.

4.4 Working hours

The Contractor shall observe any working days and working hours restrictions which may be
imposed under this Contract and at law, and shall apply to the Contract Administrator and the
relevant Government authority for working outside the legally restricted time at his own expense.

4.5 Notices and claims

4.5.1 As soon as practicable after the commencement of an event causing or likely to cause delay or
disruption to the regular progress of the Works or delay to the completion of any Works Section
beyond its Completion Date becoming apparent, the Contractor shall give notice to the Contract
Administrator of such a delay or disruption.

4.5.2 The notice shall state in full detail (illustrated with diagrammatic programmes as necessary)
the event and material circumstances causing or likely to cause the delay or disruption, the
estimated extent of the delay or disruption to the progress, the estimated length of the delay
to the completion, and whether the Contractor considers that he is or may become entitled to
an extension of time due to the event being an Excusable Event listed in Clause 1.12 and to
reimbursement for direct loss and/or expense due to the event being a Compensable Event listed
in Clause 1.12. If direct loss and/or expense is expected to be incurred, the notice shall give an
estimate of the likely amount. If the delay or disruption is of continuing or repetitive nature, the
Contractor shall submit updated notices at monthly intervals.

4.5.3 The Contractor shall submit his monetary claim for reimbursement for direct loss and/or expense
with evidence of the direct loss and/or expense as soon as the direct loss and/or expense are fully
known and reasonably calculable.

4.5.4 In any case, the notice under Clause 4.5.1 and the updated notices under Clause 4.5.2 shall
not be submitted later than the Completion Date of the relevant Works Section or its extended
completion date previously claimed by the Contractor, and the Contractor’s monetary claim under
Clause 4.5.3 shall not be submitted later than three months after the direct loss and/or expense
having been incurred, progressive submission permitted.

It shall be a condition precedent to the Contractor's entitlement to any extension of time or loss
and/or expense claim that the Contractor shall have fully complied with the provisions of Clauses
4.5.1 to 4.5.4. If he fails to fully comply with these provisions in respect of any claim, that claim
will be deemed to have been waived by the Contractor.

When considering the amount of any extension of time or loss and/or expense that the
Contractor is entitled, the Contract Administrator and the Quantity Surveyor are entitled to take
into account only of the information already submitted by the Contractor without an obligation
to demand for further information from the Contractor. For the avoidance of doubt, the
Contractor shall bear the consequence of his own non-submission, late submission or insufficient
submission of notices or information.

4.6 Mitigation of delay or disruption

The Contractor shall continuously use his best endeavours to prevent or mitigate delay or
disruption to the progress of the Works however caused, and to prevent the completion of the
Works from being delayed or further delayed. The use of best endeavours by the Contractor shall
not require the Contractor to accelerate the carrying out of the Works to recover delay caused
by an Excusable Event. The Contractor shall however do all that may reasonably be required to
proceed with the Works expeditiously.
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 Standard Form of Contract for Maintenance and Renovation Works

4.7 Determining time effect

4.7.1 Within 14 days after receipt of the Contractor’s notice of delay or disruption under Clause 4.5
and subject to Clause 4.5.4, the Contract Administrator shall notify the Contractor his opinion on
the extent of delay or disruption to progress or delay to completion that the Excusable Event or
Compensable Event specified by the Contractor in his notice has caused or is likely to cause to the
relevant Works Section. If there is a delay to completion due to an Excusable Event, the Contract
Administrator shall give an extension of time to the Contractor by fixing a later Completion Date
for the relevant Works Section to compensate the working time lost.

4.7.2 If the Contract Administrator gives an extension of time to the Contractor because of an
Excusable Event that occurs in the period of delay after the Completion Date but before the
substantial completion of a Works Section, he shall add this extension of time to the total of
any extensions of time previously granted when fixing a new Completion Date, even though the
Excusable Event may have occurred later than the date that the Contract Administrator fixes as
the new Completion Date.

4.7.3 The Contract Administrator may review his opinion on the time effect under Clause 4.7.1 and
adjust any extension of time previously granted in light of further evidence at any time before
issuing the Final Certificate, but shall not reduce the extension of time previously granted unless
any previous extension has been based upon incorrect information provided by the Contractor.

4.8 Valuing cost effect

4.8.1 Within 14 days after the receipt of both the Contractor’s monetary claim and the opinion of
the Contract Administrator on the time effect, the Quantity Surveyor shall assess the value of
any direct loss and/or expense compensable to the Contractor for certification by the Contract
Administrator. Any such value which may be assessed from time to time shall be added to the
Contract Price and included in the next Payment Certificate.

4.8.2 The Quantity Surveyor may review his valuation of the time effect under Clause 4.8.1 in light of
further evidence at any time before issuing the Final Certificate. Any adjustment so resulted shall
be accounted for in the next Payment Certificate.

4.9 Damages for delayed completion

If a Works Section is not completed by the Completion Date or the currently extended
Completion Date, the Employer may recover from the Contractor liquidated damages calculated
at the respective Rate of Liquidated Damages for Delayed Completion stated in the Contract
Agreement for the period during which the Works Section remains incomplete. Where no rate is
specifically stated, the Employer may claim for general damages for delayed completion.

4.10 Substantial completion

4.10.1 A Works Section shall be considered as substantially completed when the whole of the
Works within the Works Section has been completed and the place is clean and tidy with the
Contractor’s temporary site facilities demobilized to the satisfaction of the Contract Administrator
and is ready for handover to the Employer, excluding only work or services specifically required
by this Contract to be carried out after substantial completion, and minor work which is not
essential for the occupation, use or functioning of the Works.

4.10.2 If the Contractor considers that substantial completion of a Works Section is imminent, he
shall invite by giving reasonable advance notice to the Contract Administrator to carry out a
completion inspection. The Contract Administrator shall carry out the inspection and notify
the Contractor whether there is any outstanding work essential to substantial completion. The
Contractor shall complete the outstanding work, invite the Contract Administrator to re-inspect
as appropriate, demobilize from the Site of the Works Section (subject to Clause 4.10.3), and
make the place clean, tidy and ready for handover to the Employer. If the Contract Administrator

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Standard Form of Contract for Maintenance and Renovation Works

is satisfied that the state of substantial completion has been achieved, he shall issue a Substantial
Completion Certificate to the Contractor to confirm the fact and the date.

4.10.3 The Contractor may stay after substantial completion at such portion of the Site which has
been designated for the Contractor’s placement of temporary site facilities and which are not
immediately required for the occupation or use by the Employer until 7 days after the Contract
Administrator’s instruction to demobilize from such portion of the Site.

5. CONTRACT BASIS

5.1 Interpretation of Contract Documents

5.1.1 The various parts of the Contract Documents are complementary to each other and shall be
interpreted as a whole as far as possible.

5.1.2 In case of any contradiction between the various parts of the Contract Documents, the order of
precedence for interpretation shall be in the following descending order:

(a) Contract Agreement;

(b) Tender Correspondence;

(c) Form of Tender or the Tender;

(d) Special Contract Conditions;

(e) Schedule of Works;

(f) the Preliminaries section of the Contract Specification;

(g) Contract Conditions;

(h) Contract Drawings; and

(i) Sections of the Contract Specification other than the Preliminaries section.

5.1.3 Subject to Clause 5.1.2, documents issued later in time shall take precedence, particular
specification shall take precedence over general specification, detailed drawings shall take
precedence over general drawings, specification and drawings specially prepared for the Works
shall take precedence over standard specification and drawings.

5.1.4 No other documents exchanged prior to the award of this Contract shall form part of the
Contract, or affect the meaning and interpretation of the Contract Documents, unless otherwise
agreed in writing by both the Contract Parties.

5.2 Clarification of discrepancy or divergence

If the Contractor shall find any discrepancy in or divergence between the various parts of the
Contract Documents, he shall immediately give a written notice specifying the discrepancy or
divergence to the Contract Administrator who shall issue instructions to clarify.

5.3 Supplementary information

The Contract Administrator shall, if so requested by the Contractor, or may on his own initiative,
issue supplementary drawings or specifications to amplify the Contract Documents.

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 Standard Form of Contract for Maintenance and Renovation Works

5.4 Number of copies of Contract Documents and supplementary information

5.4.1 The Contractor shall be entitled free of charge to one signed copy and one unsigned copy of the
Contract Documents.

5.4.2 The Contractor shall be entitled free of charge to two sets of supplementary drawings or
specifications.

5.5 Instructions

5.5.1 The Contract Administrator may issue instructions in regard to any matter in connection with
the Works to the Contractor. The Contractor shall forthwith comply with all instructions issued
to him by the Contract Administrator. If the Contractor fails to comply with an instruction of the
Contract Administrator, then the Contract Administrator may issue a notice in writing requiring
the Contractor to comply with the instruction. If the Contractor does not comply with the
instruction within 7 days of receipt of a written notice from the Contract Administrator requiring
compliance with an instruction, then the Employer may without further notice employ and pay
other persons to carry out any work whatsoever to give effect to such instruction and all costs
incurred in connection with such employment shall be recoverable from the Contractor by the
Employer.

5.5.2 All instructions issued by the Contract Administrator shall be issued in writing. Any instruction
issued orally shall be confirmed in writing by the Contract Administrator within 2 days, otherwise
the oral instruction shall have no effect.

5.5.3 The Contractor shall maintain an efficient organization so that all instructions issued by the
Contract Administrator are communicated immediately to the Site. The Contractor shall take
instructions only from the Contract Administrator or persons authorised by the Contract
Administrator in writing to give them.

5.5.4 The Contractor shall enter all instructions given to him or his Site Agent by the Contract
Administrator or such other persons as are authorised in a diary recording a description of such
work ordered, and shall obtain against each entry the initials of the Contract Administrator or
such other authorised person on the day that such instructions are given.

5.5.5 If required by the Employer, his Consultants and the Clerk of Works, the Contractor shall allow
such diary to be inspected by them at any reasonable time.

5.6 Documents on site

5.6.1 The Contractor shall keep a complete set of the Contract Drawings and Contract Specification
together with copies of all instructions and supplementary or additional drawings or specifications
issued after the award of this Contract on the Site. These documents shall be available for
reference by the Employer, his Consultants and the Clerk of Works at all times.

5.6.2 The drawings shall be stored in a neat and orderly manner by fixing them to sheets of hardboard,
or using any other suitable system.

5.7 Use of drawings

5.7.1 Figured dimensions on drawings shall be taken in preference to scaled in all cases.

5.7.2 The Contractor shall counter-check the scale of any drawing transmitted electronically for the
accuracy of the stated scale and make appropriate adjustments when scaling.

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Standard Form of Contract for Maintenance and Renovation Works

6. PRICES

6.1 Lump Sum Contract

Where the Contract Type stated in the Contract Agreement is “Lump Sum Contract”. The
Contract Price stated in the Contract Agreement shall be deemed to be inclusive of all costs
necessary for the completion of the Works originally described in this Contract. The Contract
Price shall not be adjusted except for Variations or adjustments of provisional quantities or
provisional sums and other adjustments permitted under or required by this Contract.

6.2 Remeasurement Contract

Where the Contract Type stated in the Contract Agreement is “Remeasurement Contract”. The
Contract Price stated in the Contract Agreement shall be deemed to be provisional and shall
finally be recalculated by remeasuring the work properly carried out and valuing the same at the
Contract Rates, subject only to other adjustments permitted under or required by this Contract.

6.3 Rates Only Contract

Where the Contract Type stated in the Contract Agreement is “Rates Only Contract”. The
Contract Price shall finally be recalculated by measuring the work properly carried out based
on the as-built records (excluding work done without authority) and valuing the same at the
Contract Rates, subject only to other adjustments permitted under or required by this Contract.

6.4 No adjustment for rises or falls in costs of labour and materials

The Contract Price shall not be adjusted for rises or falls in the costs of labour and materials or
exchange rates of currencies.

6.5 Arithmetical errors

Any arithmetical errors in multiplying the quantities and rates for the extensions, casting the
extensions to page or section totals or carrying or bringing forward figures when calculating the
original Contract Price stated in the Contract Agreement shall be deemed to have been accepted
by the Contract Parties with no adjustment to the Contract Price.

6.6 Quantities for Lump Sum Contract

6.6.1 Where the Contract Type stated in the Contract Agreement is “Lump Sum Contract”, the
following provisions shall apply:

(a) no matter whether the quantities of the Works stated in the Schedule of Works or other
parts of the Contract Documents are estimated by the Employer or the Contractor, the
quantities are deemed to be estimated by the Contractor according to the Contract
Drawings and the Contract Specification;

(b) the Contractor has allowed in the Contract Price for all quantities required for the carrying
out of the Works as shown on the Contract Drawings or as described in the Contract
Specification; and

(c) except for clause 6.6.2 and quantities of items described as provisional, both the quantities
and the Contract Price are not subject to adjustment for the situation where the quantities
including their descriptions have any discrepancy from the Contract Drawings and/or the
Contract Specification in accordance with the method of measurement specified in the
Contract Agreement.

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 Standard Form of Contract for Maintenance and Renovation Works

6.6.2 If

(a) the Contract Agreement states that this clause 6.6.2 applies to this Contract; and

(b) the Contract Administrator confirms that the quantities including their descriptions have any
discrepancy from the Contract Drawings and the Contract Specification in accordance with
the method of measurement specified in the Contract Agreement and correction of the
quantities and their descriptions have to be made to match with the actual carrying out of
the Works, the correction shall be deemed to be a Variation.

6.7 Provisional quantities

6.7.1 Quantities of items described as "provisional" in the Schedule of Works or other build-up of the
Contract Price as included in the Tender Correspondence shall be remeasured on completion of
the relevant work based on the as-built records (excluding work done without authority) and shall
be valued in accordance with the Contract Rates. Provisional quantities shall be considered as
estimates only, and the Employer shall not bear any responsibility for their accuracy. The Contract
Rates are fixed, and shall not be adjusted whether or not the final quantities differ from the
provisional quantities.1

6.7.2 Where the unit for measuring the quantities of an item described in Clause 6.7.1 is “Item” or
“Sum”, the Contract Rate for the item shall be the sum priced against the item in the Schedule
of Works or other build-up of the Contract Price.

6.8 Method of measurement

6.8.1 The quantities in the Schedule of Works or other build-up of the Contract Price as included in
the Tender Correspondence shall be deemed to have been measured in accordance with the
method of measurement stated in the Preliminaries section of the Contract Specification or in the
Preambles to the respective documents, except that when a different method of measurement is
described in an item description of the documents, then the method of measurement described
in the item description shall take precedence. The same method of measurement shall be used in
the settlement of the Final Account.

6.8.2 Where more items than those specifically required by the method of measurement are measured
for the same work, the same method of measurement as was adopted in the preparation of the
tender documents shall be used in the settlement of the Final Account.

6.8.3 For Lump Sum Contract and where clause 6.6.2 does not apply to this Contract, if fewer items
than those specifically required by the method of measurement are measured for the work, the
cost of the items not measured shall be deemed to have been allowed for in the other Contract
Rates, the omission of measurement shall be deemed to be a modification of the method of
measurement and such modified method of measurement shall be used in the settlement of the
Final Account.

6.8.4 If the various documents referred to in Clause 6.8.1 are silent as to the method of measurement
used, the method of measurement which is stated or reasonably apparent from the Tender
Documents shall be used, subject to the conditions that:

(a) all quantities shall be measured the net quantities as fixed in position with no allowance for
wastage or, for work measured superficially, for laps; and

(b) ancillary items shown on the Contract Drawings or described in the Contract Specification
but not measured separately in the documents shall not be measured separately when
valuing variations, unless the proportion of the ancillary items to the principal items have
been varied by Variations.

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Standard Form of Contract for Maintenance and Renovation Works

6.9 Provisional sums

The Contract Administrator may issue instructions with regard to the expenditure of any sum
described as “provisional sum” in the Schedule of Works or other build-up of the Contract
Price as included in the Tender Correspondence. The relevant work shall be valued based on the
valuation rules stated below. In the settlement of the Final Account, the provisional sum shall be
deducted from the Contract Price and the said value shall be added to the Contract Price.

6.10 Prime cost rates

6.10.1 Where a prime cost rate (“PC Rate”) is included in the description of an item in the Schedule
of Works or other build-up of the Contract Price as included in the Tender Correspondence for
materials delivered to site, the prime cost rate is a provisional allowance for the supply cost of the
principal material of that item delivered to site only and the Contract Rate for the item shall be
deemed to have allowed in addition for all waste, fixing, all ancillary materials required for fixing
such as mortar for bedding and jointing and all other similar items of a like nature, and for profits
and overheads.

6.10.2 Where the prime cost rate is described as for supply and fix / install / apply, the provisional
allowance is for the supply and fixing cost charged by a domestic specialist sub-contractor, and
the Contract Rate for the item shall be deemed to have allowed in addition for the Contractor’s
profits and overheads.

6.10.3 In the settlement of the Final Account, the Contract Rate shall be adjusted by the net difference
between the prime cost rate and the actual unit cost and will be applied to the net quantity of
the item measured as fixed, installed or applied in position, exclusive of wastage.

6.11 Variations

The Contract Administrator may issue instructions from time to time requiring a Variation. All
Variations shall be valued based on the valuation rules stated below, and the Contract Price shall
be adjusted accordingly. Valuation of work is not a condition precedent to its execution by the
Contractor.

6.12 Valuation of Variations and provisional sum items

The valuation of Variations and of work carried out by the Contractor covered by a provisional
sum shall be made by the Quantity Surveyor in accordance with the following “valuation rules”:

(a) The Contract Rates shall be used for valuing work of the same or similar character to, and
carried out under the same or similar conditions to the work to which the Contract Rates
apply.

(b) If the work is not of the same or similar character to or not carried out under the same or
similar conditions to the work to which the Contract Rates apply, “pro-rata rates” shall be
used. A pro-rata rate shall use the Contract Rates for comparable items as the base with
adjustment for the net difference in costs due to the difference in character or conditions
plus the same percentage for profits and overheads as used in the relevant Contract Rates.

(c) The Contract Rates shall be used for valuing work omitted from the Contract.

(d) If the omission of work substantially varies the character of, or the conditions under which
any remaining items of work are carried out, then such remaining items of work shall be
valued in accordance with sub-clause (b) above.

1 If it is considered that the Contract Rates for the stated provisional quantities may become inapplicable due to substantial difference
between the final quantities and the provisional quantities, additional rates only items should be included by the Contract Administrator
or the Contractor in the Contract to deal with the possible situations.

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 Standard Form of Contract for Maintenance and Renovation Works

(e) If there are no Contract Rates which can reasonably form a basis for valuing work, “star
rates” shall be used. Star rates shall be derived from market rates including rates used
on other comparable projects fairly adjusted to take into consideration the nature and
conditions under which the work is carried out under this Contract or from first principle
based on actual costs plus the percentage for profits and overheads generally used in the
Contract Rates.

(f) If there is any disagreement as to the percentage for profits and overheads generally used in
the Contract Rates, 15% shall be used for mark-up on the costs of direct labour, materials
and plant. If the work is sub-contracted, then 10% shall be used for mark-up on the sub-
contract prices.

(g) If it is foreseen that work to be carried out may not be properly measured or valued at
Contract Rates then the Contract Administrator may and the Contractor shall propose
that the work shall be valued on a daywork basis whereby the time of labour and plant
engaged or properly left idling and the quantities of materials used or properly wasted shall
be recorded by the Contractor and endorsed by the Clerk of Works or other authorized
representative of the Employer or the Contract Administrator on site. Notwithstanding any
such proposal, the work shall be valued on a daywork basis only if there is an agreement
between the Contract Administrator and the Contractor to that effect.

(h) The labour and plant to be valued on a daywork basis shall be valued at daywork rates
contained or stipulated in the Contract or, in the absence of such rates, at fair rates
determined by the Quantity Surveyor. Materials to be valued on daywork basis shall be
valued at the nett cost incurred by the Contractor until being fixed plus 15% for profits and
overheads.

6.13 Contractor's claims for extras

6.13.1 Subject to Clause 6.13.2, the following shall not be Variations and shall not have any cost effect:

(a) changes made to the Contractor’s submissions such as drawings, samples or catalogues in
consequence of any comments made by the Contract Administrator; or

(b) any written instruction of the Contract Administrator specifically stating that there should be
no cost addition.

6.13.2 If the Contractor considers that compliance with Clause 6.13.1 constitutes a Variation, then the
Contractor shall immediately upon the receipt of the relevant comment or instruction write to the
Contract Administrator to seek clarification.

6.13.3 Any failure by the Contractor to seek clarification of any such comment or instruction within a
reasonable time is to be taken as an acknowledgement by the Contractor that the compliance is
not a Variation.

6.14 Invoices, receipts, etc.

The Contractor shall produce all original invoices, vouchers or receipted accounts with a
photocopy of such documents for any materials or sub-contract labour charges when called upon
to do so by the Contract Administrator. Upon verifying the photocopies of the invoices, receipts,
etc., the originals shall be returned to the Contractor.

6.15 Payment

6.15.1 The Contractor shall submit applications for payment to the Contract Administrator and the
Quantity Surveyor with a copy to the Employer at monthly intervals after the commencement of
the Works until 1 month after substantial completion, and at bimonthly intervals thereafter.

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Standard Form of Contract for Maintenance and Renovation Works

6.15.2 The Quantity Surveyor shall check, amend or verify the payment application and recommend to
the Contract Administrator the net amount payable and the Contract Administrator may make
appropriate deductions for work or materials not in accordance with the Contract but included
in the payment recommendation and shall issue a Payment Certificate to certify the net amount
payable, if any, to the Employer with a copy to the Contractor within 14 days of receipt of the
Contractor’s application.

6.15.3 The Contractor shall submit an invoice for the amount stated in the Payment Certificate to the
Employer and the Employer shall pay the amount stated in the Payment Certificate as invoiced by
the Contractor within the Period for Honouring Payment stated in the Contract Agreement.

6.15.4 The net amount payable to the Contractor under each Payment Certificate shall be computed
by calculating the gross valuation at sub-clause (a) below and then making the deductions or
additions at sub-clauses (b) to (g) below:

(a) the gross valuation of the Works, being the total value of materials delivered to site and
work partly or fully completed up to the date of the Contractor’s payment application,
excluding those materials supplied by the Employer and those materials or work which are
not in accordance with this Contract, but taking into account the effect of the items stated
in Clause 6.16.1 (a) to (i);

(b) deduction for retention fund as Clause 6.15.5;

(c) addition for the amount of any advance payment stated in the Contract Agreement, but
only after the provision by the Contractor of a surety bond in a form acceptable to the
Contract Administrator of a value not less than the amount of the advance payment;

(d) deduction for the amount of any advance payment which the Employer is entitled to recover
in the manner stated in the Contract Agreement;

(e) deduction for cash security or addition for release of cash security as Clauses 10.10.2 and
10.10.3;

(f) deduction for any other sums including liquidated damages due from the Contractor to the
Employer under this Contract or otherwise; and

(g) deduction for the total amount previously paid to the Contractor.

6.15.5 The retention fund stated in Clause 6.15.4(b) above shall be dealt with in the following manner:

(a) The retention fund shall be calculated by applying the Retention Percentage stated in
the Contract Agreement on the gross valuation stated in Clause 6.15.4(a), subject to a
maximum equal to the Maximum Retention stated in the Contract Agreement.

(b) Upon the issue of the Substantial Completion Certificate of a Works Section and the
submission of any warranties and guarantees required under this Contract for that Works
Section, one half of the retention fund held in respect of the Works Section shall be released
to the Contractor in the next Payment Certificate.

(c) Upon the issue of the Defects Rectification Certificate of a Works Section, the balance of
the retention fund held in respect of the Works Section shall be released to the Contractor
without interest by way of a special Payment Certificate.

(d) Provided always that the Employer may have recourse to the retention fund otherwise due
to the Contractor to recover sums due to the Employer from the Contractor.

6.15.6 The inclusion of materials or work in any Payment Certificate prior to the Final Certificate
shall not be regarded as evidence that the materials are and the work has been performed in
accordance with the requirements of this Contract.
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6.15.7 The computation of Payment Certificates shall be by way of an estimate only based on the latest
contemporary information available at the time of valuation and the valuation shall not be limited
or affected by the information available in computing the amounts used in previous Payment
Certificates.

6.16 Final Account

6.16.1 A Final Account is a statement of the computation of the final Contract Price payable to the
Contractor taking into account the following:

(a) measurement and valuation of final quantities in the case of a Rate Only Contract as Clause 6.3;

(b) adjustment of provisional quantities in the case of a Lump Sum Contract or Remeasurement
Contract as Clause 6.8;

(c) adjustment of provisional sums as Clause 6.10;

(d) adjustment of prime cost rates as Clause 6.11;

(e) adjustment for Variations as Clause 6.12;

(f) addition for the value of any direct loss and expense as Clause 4.10;

(g) deduction for failure to rectify defects as Clauses 7.6.3 and 7.6.4;

(h) adjustment due to failure to pay statutory fees, charges or taxes as Clause 9.1.2;

(i) deduction for the Contractor’s failure to insure or addition for the Employer’s failure to
insure as Clause 10.6;

(j) deduction for liquidated damages as Clause 4.9 if the Employer so instructs; and

(k) other additions to or deductions from the Contract Price required by this Contract.

6.16.2 The Contractor shall submit his proposed Final Account calculated in accordance with this
Contract with all factual evidence and relevant calculation details to the Contract Administrator
and the Quantity Surveyor for checking within 3 months from the completion of the whole of
the Works. The Quantity Surveyor shall be entitled to consult the Contract Administrator and the
Employer for any factual evidence which may affect the computation of the Final Account, and
shall send his draft Final Account to the Contractor for agreement as soon as practicable. In the
absence of a submission by the Contractor, the Quantity Surveyor may compute the Final Account
based on the information that is available to him and send it to the Contractor for agreement.
The Contractor and the Quantity Surveyor shall discuss and agree the details of the Final Account
from time to time and shall agree the whole Final Account as soon as possible not later than 1
month after the issue of the Defects Rectification Certificate.

6.16.3 The agreed Final Account shall be deemed to have taken into account all factors affecting the
computation of the Final Account and known at the time of agreement but shall not prejudice
the Contractor’s liability for making good defects not considered in Clause 6.16.1(g) and the
Contractor’s responsibility to complete work valued in the Final Account but not yet done at the
time of agreement.

6.16.4 If the Quantity Surveyor considers that he has taken into account all the representation of the
Contractor but still fails to obtain the Contractor’s agreement, he may issue an unilateral Final
Account to the Contractor and declare it as such.

6.16.5 The cost incurred by the Contractor in preparing the Final Account shall be deemed to have been
included in the Contract Price.

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Standard Form of Contract for Maintenance and Renovation Works

6.17 Final Certificate

6.17.1 The Contract Administrator shall issue the Final Certificate within 14 days after the issue of the
Defects Rectification Certificate of the last Works Section or within 14 days after the agreement
of the Final Account or after 1 month has lapsed after the issue of the unilateral Final Account,
whichever is the later.

6.17.2 The Final Certificate shall state:

(a) the Final Contract Price;

(b) the amount previously paid to the Contractor; and

(c) the amount of the difference between the sums expressed in Clause 6.17.2(a) and Clause
6.17.2(b) as the amount due to the Contractor or due to the Employer, as the case may be.

6.17.3 The amount referred to in clause 6.17.2(c) shall be a debt payable by the Employer to the
Contractor or by the Contractor to the Employer, as the case may be, within the Period for
Honouring Payment stated in the Contract Agreement calculated from the date of the Final
Certificate, subject to:

(a) all deductions authorized by the Contract Agreement; and

(b) the situation where either of the Contract Parties has expressed his disagreement to the
Final Certificate and notified the other party not later than the due date for payment to
resolve the disagreement in accordance with Clause 12.

6.17.4 Except for the matters related to the disagreement notified by either of the Contract Parties in
accordance with Clause 6.17.3(b), the issue of the Final Certificate shall mean that the Employer
has accepted the Works carried out by the Contractor as being to his satisfaction and the
contractual liabilities of both Contract Parties shall cease upon issuance of such Final Certificate
except for the payment of the amount certified as finally due, liabilities for any latent defects not
discovered at the time of the Final Account, or matters affected by any bribery offence, fraud,
dishonesty or fraudulent concealment.

7. QUALITY

7.1 Quality liability

The Contractor shall be fully liable for the site operations, construction methods and the stability,
safety and quality of all work, whether completed or not, except for loss or damage arising from
the Excepted Risks.

7.2 Materials, workmanship and method to comply with Contract

7.2.1 The Works shall be carried out, tested and inspected using the materials, workmanship and
methods shown on the Drawings or described in the Specification or the Schedule of Works, in
conformity with the whole of this Contract.

7.2.2 If any of the specified materials are not procurable, then the Contractor shall submit proposed
alternatives for the approval by the Contract Administrator.

7.3 Approval

All items stated by this Contract to require the checking or approval by the Contract
Administrator shall be submitted by the Contractor in good time before they are required for use
to the Contract Administrator for such checking or approval, and shall not be used in the Works
until after the checking or approval by the Contract Administrator, which is to be confirmed in

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writing. No approval, disapproval or amendment proposal made by the Contract Administrator

shall in any way reduce the Contractor's liability under this Contract.

7.4 Samples

7.4.1 If at the time of the award of this Contract, the Contractor has already submitted samples which
have been approved by the Contract Administrator, those samples shall be used as the standard
for subsequent acceptance of the materials or workmanship.

7.4.2 If samples have not been approved at the time of the award of this Contract, the Contractor shall
submit free of charge samples and catalogues for approval purposes before ordering materials
or commencing work. Approved samples shall be kept on site to serve as the standard for
subsequent acceptance of the materials or workmanship.

7.5 Testing and inspection

7.5.1 The Contractor shall carry out all tests and inspections required by this Contract to be carried out
or arrange for them to be carried out by independent parties if so required, all at the Contractor’s
expense unless the testing and inspection is covered by a provisional quantity or a provisional sum
item. A copy of the testing and inspection report shall be submitted to the Contract Administrator
as soon as possible after the testing and inspection.

7.5.2 The Contract Administrator may issue instructions requiring the Contractor to carry out tests and
inspections additional to those required by this Contract on work already carried out, and the
relevant costs (including the cost of subsequent making good) shall be borne by the Employer.
Provided that if the additional testing or inspection shows that the work is not in accordance
with the requirements of this Contract, then the relevant costs (including the cost of subsequent
making good and cost of rectification of other work) shall be borne by the Contractor.

7.5.3 The Contractor shall inform the Contract Administrator not less than 24 hours before work
is to be covered up to allow the Contract Administrator to inspect such work. If the Contract
Administrator fails to inspect, the Contractor may carry out his own inspection. If the Contract
Administrator requires work to be uncovered for inspection after it has been covered up, the
Contractor shall so uncover the work. All costs of such an inspection shall be borne by the
Employer, unless the inspection reveals that the work is not in accordance with this Contract, in
which case the costs shall be borne by the Contractor.

7.5.4 If the Contractor fails to give the notice required by Clause 7.5.3, then the Contract Administrator
may nevertheless require the inspection of any relevant work, and the cost of any such inspection
shall be borne by the Contractor.

7.6 Defects liability

7.6.1 The Contractor shall replace or rectify at his own cost any materials or work which are found at
any time before the expiry of the Defects Liability Period not provided in accordance with this
Contract on his own initiative or as and when instructed by the Contract Administrator to do so.

7.6.2 At any time not later than 14 days after the expiry of the Defects Liability Period, the Contract
Administrator may issue one or more lists of defects to the Contractor for the Contractor to rectify.
The Contractor shall rectify all defects on the lists of defects within a reasonable time as directed
by the Contract Administrator or, if not so directed, within a reasonable time of receipt of a list.

7.6.3 If the Contractor fails to rectify defects within the aforesaid reasonable time, then the Contract
Administrator may issue a notice to the Contractor informing him of the Employer’s intention to
employ others to rectify the defects specified in the notice at the expense of the Contractor. If the
Contractor continues to fail to proceed to rectify the defects for a further period of 7 days or if
the Contractor fails to carry on diligently thereafter, then the Employer shall be entitled to employ
others to rectify the defects, and to recover the extra cost of so doing from the Contractor.

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Standard Form of Contract for Maintenance and Renovation Works

7.6.4 The Contract Administrator may instruct the Contractor not to rectify some or all of the defects
specified on the lists which have been issued by the Contract Administrator, in which case a
reasonable deduction from the Contract Price shall be made in respect of such defects.

7.6.5 After the expiry of the Defects Liability Period and the completion of rectification of defects on
the lists of defects to his satisfaction, the Contract Administrator shall issue to the Contractor a
Defects Rectification Certificate to that effect. Each Works Section shall have its own separate
Defects Rectification Certificate.

7.6.6 The issue of a Defects Rectification Certificate for a Works Section shall discharge the Contractor
from any further obligation to carry out the work of rectifying defects in the Works Section which
were patent before the issue of the Defects Rectification Certificate, but it shall not prejudice
the Contractor’s obligations under a warranty or guarantee or the Employer’s other rights and
remedies either under this Contract or at law regarding defective work or other breaches of
contract.

7.7 Warranties and guarantees

7.7.1 The Contractor shall procure such warranties or guarantees to be in favour of the Employer as
may be required by this Contract.

7.7.2 If the Contractor has any suppliers’ and sub-contractors’ warranties or guarantees for materials or
work required by this Contract, he shall assign such warranties or guarantees to the Employer (so
far as he is lawfully able to do so) the benefits of all such warranties or guarantees.

7.7.3 The submission of the aforesaid warranties and guarantees satisfactorily in full compliance
with this Contract shall be a pre-requisite to the release of one half of the retention fund upon
substantial completion of the relevant Works Section under Clause 6.16.5(b).

8. CONTRACTOR’S DOCUMENTS

8.1 Shop drawings

The Contractor shall submit all such shop drawings and other drawings as he is required to
prepare under this Contract to the Contract Administrator for approval in sufficient time as to
ensure that no delay to the Works are caused.

8.2 Construction method statement and programme

8.2.1 Within 7 days after the Contract Award Date, the Contractor shall submit his proposed method
statement and programme showing his intended time, method, sequence, stages and order
of proceeding with the Works for checking and approval by the Contract Administrator. The
Contractor shall carry out the Works in accordance with the approved method statement and
programme.

8.2.2 If during the course of this Contract special circumstances should arise which in the opinion of
the Contract Administrator warrant or necessitate a revision of the approved method statement
and programme, then the Contractor shall accordingly so revise his method statement and
programme as the Contract Administrator may require and submit the revised method statement
and programme within 7 days of being notified by the Contract Administrator that such a
revision is required.

8.2.3 The submission to and approval by the Contract Administrator of the method statement
and programme (including revisions) shall not relieve the Contractor of any of his duties or
responsibilities under this Contract.

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 Standard Form of Contract for Maintenance and Renovation Works

8.3 Progress reports

8.3.1 The Contractor shall submit the following progress reports in reasonable number of copies in
the pre-approved format to the Contract Administrator regularly until 14 days after substantial
completion of the whole of the Works and as and when work is carried out during the Defects
Liability Period:

(a) daily reports to be submitted on the working day following the day recorded and showing a
record of labour employed on site under each trade, plant on site, materials delivered to site,
and the weather throughout the day, and other information as may be instructed by the
Contract Administrator;

(b) weekly reports to be submitted on the first working day following the week recorded and
describing in detail the progress of the Works, any deviations from programme, reasons
for actual or expected delays or disruptions, proposed actions to overcome the delays
or disruptions, any claim for extension of time, testing and inspection carried out, list of
Contract Administrator’s instructions received, list of confirmations of oral instructions
issued, outstanding information required, and other information as may be instructed by the
Contract Administrator; and

(c) progress photographs attached to the weekly reports.

8.3.2 If a Clerk of Works or other representative of the Employer is employed upon the Works, the
progress reports shall be submitted for checking and signing by the Clerk of Works or other
representative of the Employer before submission to the Contract Administrator.

8.4 As-built records

Within 14 days after the completion of a Works Section, the Contractor shall submit two sets
of prints and one electronic file in suitable media of as-built records for use by the Employer,
and shall additionally submit as-built records in accordance with any relevant statutory or other
requirements. If there is any Variation during the Defects Liability Period, revisions to the as-built
records shall be made and submitted as soon as the Variation is carried out.

9. GENERAL OBLIGATIONS

9.1 Statutory obligations

9.1.1 The Contractor shall comply with, give all notices and make all applications required by, any
ordinance, regulation, rule or order of the Government or statutory undertakers or utility
companies applicable to the Works and shall pay any fees, charges or taxes legally demandable
except for those fees, charges or taxes for which the Employer is legally responsible.

9.1.2 If either of the Contract Parties discharges the liability of the other party in regard to payment of
fees, charges or taxes, then the amount paid plus 10% for administrative charges shall become
money recoverable from the party liable for such fees, charges or taxes by the other party,
without further adjustment to the prices allowed in this Contract for the like liability.

9.1.3 If the Contractor considers that a change to the Works is necessary to comply with any statutory
requirement, he shall give a written notice specifying the change to the Contract Administrator. If
the Contractor does not receive any instructions from the Contract Administrator within 7 days
of having given such a written notice, he shall proceed with the change, which shall be deemed
to be a Variation.

9.2 Intellectual property

The prices for all work shall be deemed to include for all royalties, license fees or other sums
legally demandable for the use of intellectual property in respect of the design or design

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Standard Form of Contract for Maintenance and Renovation Works

development for which the Contractor is responsible, materials, plant, methods or anything
whatsoever used in carrying out the Works. The Contractor shall indemnify the Employer against
any claim involving an infringement or alleged infringement of intellectual property rights.

9.3 Assignment

The Contractor shall not assign this Contract without the written consent of the Employer.

9.4 Care of Works

The Contractor shall take responsibility for the care of the work within a Works Section, materials
supplied by him or persons for whom he is responsible for incorporation into the work, and
materials supplied by the Employer and handed over to the Contractor or persons for whom his is
responsible for incorporation into the work, except for loss or damage arising from the Excepted
Risks from commencement of the Works Section until 14 days after substantial completion of
the Works Section or 14 days after the determination of the employment of the Contractor,
whether valid or not, whichever is the earlier.

9.5 Injury to persons and property and indemnity to Employer

Without prejudice to Clause 9.4, the Contractor shall be liable for and shall indemnify the
Employer against any damage, expense, liability or loss in respect of any claims or proceedings
for:

(a) bodily injury to, disease contracted by or the death of any person arising out of, or in the
course of, or by reason of the carrying out of the Works and whether arising on or off the
Site, except to the extent that the injury, disease or death of that person is due to any act or
neglect of the Employer or any person for whom the Employer is responsible; and

(b) injury or damage to real or personal property arising out of, or in the course of, or by reason
of the carrying out of the Works and whether arising on or off the Site, to the extent that
the injury or damage is due to a breach of contract or other default of the Contractor or any
person for whom the Contractor is responsible.

9.6 Provision of all things necessary

The Contractor shall provide all labour, materials, temporary site facilities, site and head office
management necessary for the completion of the Works.

9.7 Labour and site management team

9.7.1 The labour provided by the Contractor shall be adequate in number, of the appropriate
trades, skillful and competent in their respective callings, and managed by a site management
team consisting of foremen, supervisors, co-ordinators, safety officers, etc. and headed by a
construction manager full-time on site authorized and able to communicate with and take
instructions from the Contract Administrator and capable of managing the Works.

9.7.2 The persons employed upon the Works shall be legally employable in Hong Kong. They shall
not live on the Site, except for watchmen approved by the Contract Administrator. They shall
be properly equipped with tools, safety belts, safety helmets, safety appliances, and shall wear
proper uniforms and bear identification cards. Illegal immigrants shall not be allowed to enter the
Site.

9.7.3 The Contract Administrator may require the replacement of any person employed upon the
Works who in the opinion of the Contract Administrator misconducts himself or is incompetent
or negligent in the proper performance of his duties with suitable a substitute at no extra cost
and time to this Contract.

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 Standard Form of Contract for Maintenance and Renovation Works

9.8 Temporary site facilities

The temporary site facilities provided by the Contractor shall be adequate and appropriate for the
intended purposes, safe and secured, causing minimum nuisance, placed at positions approved by
the Contract Administrator, up-kept and maintained regularly in good conditions with minimum
downtime, relocated as necessary to suit the progress and need of the Works, and removed from
the Site when no longer required.

9.9 Setting out

The Contractor shall ensure that the Works are constructed at the correct positions as shown on
the Contract Drawings or further drawings issued by the Contract Administrator after the award
of this Contract. He shall properly set out lines and levels for the Works, and provide instruments
for the Contract Administrator to verify the setting out lines and levels or as-constructed positions
if so required by the Contract Administrator. Such verification shall not relieve the Contractor of
his obligation to construct at the correct positions.

9.10 Cleanliness and tidiness

The Contractor shall keep the Site and the Works clean and tidy with minimum accumulated
rubbish at all times.

9.11 Protection

Without prejudice to Clauses 9.4 and 9.5, the Contractor shall take every care and safety
precaution necessary to protect all persons and properties, including but not limited to the
following, from injury, disease, death, loss, damage, nuisance, fire hazard, etc. caused by reason
of the carrying out of the Works:

(a) all workers or other persons on the Site;

(b) all occupiers or users in the vicinity of the Site;

(c) the public;

(d) the Works, materials for incorporation into the Works, construction plant or temporary
buildings used for the Works;

(e) existing building construction, finishes, fittings, services within the Site which are not to be
modified under this Contract;

(f) roads, loading and unloading points, temporary parking spaces, footpaths, corridors,
staircases and lifts for travel within the Site or within the premises in which the Site is
situated;

(g) the premises where the Site is situated;

(h) adjoining properties;

(i) public properties, public roads and footpaths;

(j) properties of the Public Utility Service Companies; and

(k) existing trees and shrubs.

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Standard Form of Contract for Maintenance and Renovation Works

9.12 Visitors

The Contractor shall not allow any unauthorised visitors on the Site. He shall keep a visitors book
for persons authorised to visit the Site and provide safety helmets for such visitors.

9.13 Prevention of bribery offences

The Contractor shall not offer, give or agree to give to any person any bribe, commission, gift,
loan or advantage of any kind as defined in the Prevention of Bribery Ordinance, Cap 201 as an
inducement or reward for doing or forbearing to do or for having done or forborne to do any
action in relation to the execution of this Contract or any other contract with the Employer, or
for showing or forbearing to show favour or disfavour to any person in relation to this Contract
or other contract with the Employer. Any commitment of the aforesaid offences by any person
with the Contractor’s prior authorization or subsequent acquiescence shall be deemed to be the
Contractor’s fault. The Contractor shall take all necessary measures to ensure that his employees,
agents, sub-contractors, suppliers, or other persons for whom the Contractor is responsible
comply with the foregoing provisions.

10. INSURANCES AND BOND

10.1 Employees’ Compensation Insurance

10.1.1 The Contractor shall effect and maintain employees’ compensation insurance in compliance with
the provisions of the Employees’ Compensation Ordinance in the joint names of the Contractor
and his sub-contractors of all tiers as “the insured contractors” and the Employer and the
Building Manager as “the principals” to cover the legal liabilities, costs and claims against any
or all of the insured in respect of death or bodily injury by accident or disease sustained by any
employees employed by any of the insured contractors arising out of and in the course of their
employment on the Works or in connection with this Contract whether on site or off-site, for the
full period of construction, Defects Liability Period and maintenance.

10.1.2 The insurance policy shall be especially endorsed to cover the death or bodily injury by accident
or disease sustained by any self-employed persons or sole proprietors engaged by any of
the insured contractors upon the Works or in connection with this Contract as if they were
employees employed by the insured contractors. Alternatively, the Contractor shall extend at
his own expense the Contractors’ All Risks and Third Party Liability Insurance stated in Clause
10.2 or ensure that separate personal accident insurance plans are taken out to provide cover
commensurate with that enjoyed by an employee under the Employees’ Compensation Ordinance
to all self-employed persons or sole proprietors.

10.1.3 As soon as the Contractor becomes aware of any employees, self-employed persons or sole
proprietors employed or engaged upon the Works or in connection with this Contract sustaining
death or bodily injury by accident or disease, he shall notify the Commissioner for Labour in the
manner prescribed by the Ordinance, with a copy of the notice to the Contract Administrator
and the insurers, irrespective of whether the death or bodily injury gives rise to any liability to pay
compensation.

10.2 Contractors' All Risks and Third Party Liability Insurance

10.2.1
The party as stated in the Contract Agreement to be responsible for taking out the Contractors’
All Risks and Third Party Liability Insurance shall effect and maintain the said insurance in the joint
names of the Contractor, those Separate Contractors as may be specified in the Specification and
their respective sub-contractors of all tiers as “the insured contractors” and the Employer and the
Building Manager as “the principals”.

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 Standard Form of Contract for Maintenance and Renovation Works

10.2.2 The Material Damage section of the insurance shall comply with the following requirements:

(a) The Insured Property shall consist of the Works under this Contract, the works of the
Separate Contractors and the materials supplied by the Employer for incorporation into the
Works and shall include temporary work and all unfixed materials and goods delivered to,
placed on or adjacent to the Insured Property and intended therefor (excluding construction
plant and temporary buildings which are owned or hired by the insured contractors).

(b) It shall cover physical loss of or damage to any part of the Insured Property during the period
of construction until 14 days after substantial completion of that part notwithstanding
any use or occupation by the principals or others prior to substantial completion, and also
cover loss of or damage to such property arising during the period of defects liability and/or
maintenance from a cause occurring during construction prior to completion or occasioned by
any of the insured in the course of their carrying out of remedial work or outstanding work.

(c) The sum insured shall be equal to the full reinstatement value of the Insured Property plus:

(i) the percentage of professional fees in case of reinstatement as stated in the Contract
Agreement to cover the costs and expenses in respect of architects’, surveyors’ and
engineers’ fees necessarily incurred in the reinstatement of the Insured Property
consequent upon its loss or damage but not for preparing any claim; and

(ii) an amount not less than the amount for the removal of debris as stated in the Contract
Agreement to cover the costs and expenses necessarily insured by the Insured with the
consent of the Insurers in dismantling and removing debris of the portion or portions of
the Insured Property destroyed or damaged by any peril thereby insured against.

(d) It shall contain an escalation clause to cover the possible increase in the reinstatement value
of the Insured Property by the percentage as stated in the Contract Agreement.

10.2.3 The Third Party Liability section of the insurance shall comply with the following requirements:

(a) It shall cover the legal liability, costs and claims against any or all of the insured in respect of:

(i) accidental death, bodily injury, illness or disease suffered by any person, other than
employees of the insured contractors;

(ii) accidental loss or damage to physical property, other than those insured under the
Material Damage section until 14 days after substantial completion;

(iii) loss of or damage to property real or personal including damage to property, land or
buildings due to collapse, subsidence, vibration, weakening or removal of support or
lowering of ground water;

(iv) loss of or damage to any building, structure or property belonging to the principals in
the care, custody or control of the insured contractors (alternatively, this paragraph (iv)
may be covered by the Material Damage section of the insurance); and

(v) accidental death, bodily injury, illness or disease suffered by any employee of the
principals visiting the Site on occasional basis, arising out of the performance of the
Works and the works of Separate Contractors.

(b) It shall remain in force for the full period of construction, defects liability and/or
maintenance.

(c) There shall be a "cross-liability" clause to cover any and all of the insured as separate and
distinct parties with stipulation that the insurers agree to waive any right of subrogation
rights which the insurers may have against any of the insured.

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Standard Form of Contract for Maintenance and Renovation Works

(d) The limit of indemnity shall not be less than the amounts stated in the Contract Agreement.

10.2.4 The amount of excess in respect of each and every occurrence of loss or damage shall not be
more than the respective amount or the percentage of loss or damage stated in the Contract
Agreement, whichever is greater.

10.2.5 If the Contractor considers that the above-mentioned insurance coverage is inadequate to cover
his contractual or legal liabilities and requires that the coverage be increased or the amounts of
excesses be reduced then the additional premium so payable shall be solely for the account of the
Contractor.

10.2.6 In the event of loss or damage covered by the Material Damage section of the insurance, the
Contractor shall remove and dispose of any debris, repair or replace any materials damaged,
destroyed, lost or stolen, restore work destroyed, damaged or lost, and proceed with the carrying
out and completion of the Works with due diligence immediately after any inspection required by
the insurers has been carried out. The Contractor shall not be entitled to any payment in respect
of the replacement, repair or restoration of the loss or damage and the removal and disposal of
debris other than the amount received under the insurance (less the amount to cover professional
fees) unless and to the extent that the loss or damage was caused or contributed to by a breach
of contract or other default by the Employer or any person for whom the Employer is responsible.

10.3 Taking out insurances

10.3.1 The policies of the aforesaid insurances shall contain the usual terms and conditions, subject only
to non-negotiable exclusions imposed by the insurance market.

10.3.2 For insurances to be taken out by the Contractor, the terms and conditions of the policies and
the insurers shall be approved by the Contract Administrator, and evidence of insurance cover
shall be submitted to the Contract Administrator before and a condition precedent to the
commencement of any physical work. The policies and premium receipts shall be deposited with
the Contract Administrator as soon as practicable afterwards.

10.3.3 For insurances to be taken out by the Employer, evidence of insurance cover shall be provided to
the Contractor before commencement of any physical work. Copies of the policies and premium
receipts shall be provided to the Contractor as soon as practicable afterwards.

10.4 Company master policy or annual policy

If the party responsible for taking out the aforesaid insurances maintains a company master policy
or an annual policy, and endorses the policy to specifically include this Contract and the required
parties as the insured and provide cover no less than that required under this Contract, then
this shall be a discharge of the party’s obligations to take out the insurance separately for this
Contract. The party shall produce a copy of the policy, the specific endorsement and premium
receipt for the inspection by the other party prior to commencement of any physical work.

10.5 Maintaining insurances

10.5.1 The party responsible for taking out the aforesaid insurances shall maintain and extend as
necessary the insurances to be in full force for the required periods of insurance. Extension
endorsement, renewal policy (in the case of annual policy) and premium receipt shall be produced
to the other party for inspection within 14 days after each extension or renewal date.

10.5.2 If the period of insurance shall be extended through default of the Contractor or parties for
whom he is responsible, the Contractor shall be responsible for any additional premiums for the
extension, otherwise, the Employer shall be responsible.

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 Standard Form of Contract for Maintenance and Renovation Works

10.6 Remedy for failure to insure

If the party responsible for taking out the aforesaid insurances shall at any time fail upon request
to produce any receipt showing that any of the insurances is in full force then the other party may
without prejudice to other rights and remedies in the joint name and on behalf of both parties
insure against any risk, loss or damage with respect to which the default shall have occurred,
and shall be entitled to recover the premium paid plus 15% administrative charges from the
party responsible upon production of the premium receipt, without further adjustment to prices
allowed in this Contract for insurance.

10.7 Compliance with insurance conditions

The Contractor shall with all due diligence and at his own cost conform to the terms and
conditions of the aforesaid insurances and all reasonable requirements of the insurers in
connection with the prevention of accidents, the submission and settlement of claims, the
recovery of losses and shall bear at his own cost the consequences of any failure to do so.

10.8 Reporting incidents

In the event of the occurrence of the perils covered by the aforesaid insurances, the Contractor
shall notify the insurers and the Contract Administrator of the details of the incident immediately
upon he becomes aware of it.

10.9 Insurances not affecting Contractor’s liability

10.9.1 The presence of the aforesaid insurances shall not prejudice or reduce the Contractor's liability or
responsibility under this Contract.

10.9.2 The Contractor shall bear the costs of all excesses, exclusions or limitations applying under the
aforesaid insurances in so far as they concern risks or liabilities for which he is responsible under
the terms of this Contract.

10.10 Surety bond or cash security

10.10.1 The Contractor shall obtain the guarantee of an insurance company or bank to be jointly
and severally bound with the Contractor to the Employer in the sum stated in the Contract
Agreement for the due performance of this Contract under the terms of a Bond in the form as
Appendix A hereto. The surety shall be to the approval of the Contract Administrator and the
cost of obtaining the Bond shall be borne by the Contractor. The Bond shall be submitted to the
Employer for custody following approval by the Contract Administrator.

10.10.2 If the Contractor so elects or if the Contractor fails to submit an approved Bond before the first
Payment Certificate is issued, a cash security equal to the amount of the Bond may be held by the
Employer to serve the purpose of the Bond and the amount of the cash security is recoverable by
the Employer from the Contractor. If the Contractor subsequently submits an approved Bond, the
amount of the cash security is recoverable by the Contractor from the Employer.

10.10.3 Upon the issue of a Substantial Completion Certificate of a Works Section and the settlement of
all claims (if any), the amount of the Bond or cash security shall be reduced pro-rata to ratio of
the value of that Works Section to the final Contract Price currently estimated. Upon the issue of
the Substantial Completion Certificate of the last Works Section and the settlement of all claims
(if any), the Bond or the balance of the cash security shall be released to the Contractor without
interests.

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Standard Form of Contract for Maintenance and Renovation Works

11. DETERMINATION

11.1 Determination by Employer

11.1.1 The Employer may but not unreasonably or vexatiously by notice by registered post or recorded
delivery to the Contractor forthwith determine the employment of the Contractor under this
Contract in any one or more of the following events:

(a) the Contractor without reasonable cause fails to proceed regularly and diligently with the
Works (including rectifying defects) or completely or substantially suspends the carrying out
of the Works (including rectifying defects) before substantial completion of the whole of the
Works;

(b) the Contractor without reasonable cause fails persistently to rectify defects after substantial
completion of the whole of the Works and the Employer pursuant to Clause 7.6.3 employs
others to rectify the defects for 5 times or more and the total cost of rectifying defects
exceeds $100,000;

(c) the Contractor without the written consent of the Employer assigns this Contract;

(d) the Contractor without reasonable cause fails to submit evidence of the Employees’
Compensation Insurance under Clause 10.1 and the Contractors’ All Risks and Third Party
Liability Insurance under Clause 10.2 in the manner stated in Clause 10.3.2 within 1 month
after the Contract Award Date;

(e) the Contractor becomes bankrupt or makes a composition or arrangement with his creditors
or has a petition for compulsory winding-up presented or made against him or enters
into compulsory or voluntary liquidation except for the purpose of reconstruction or has
a provisional liquidator or receiver appointed, unless the Employer, the Contractor and his
trustee in bankruptcy, liquidator or receiver, as the case may be, agree in writing before or
after the notice of determination to the continuation or reinstatement of the Contractor’s
employment; or

(f) the Contractor (or any person for whom the Contractor is responsible with or without the
knowledge of the Contractor) is convicted of a bribery offence described in Clause 9.13.

Provided that the employment of the Contractor shall not be determined due to Clauses
11.1.1(a) to (d) unless the event either has continued for 7 days after receipt by registered
post or recorded delivery of a warning notice of determination from the Contract
Administrator specifying such event or, except for sub-clause (d), at any time thereafter
has repeated, and the Contract Administrator has certified during the continuation or
resumption of the event not more than 14 days before the notice of determination.

11.1.2 In the event of the Employer determining the employment of the Contractor as aforesaid:

(a) the Contractor shall reimburse the Employer all additional costs and direct loss and/or
expense caused to the Employer by the determination. Provided always that the right of
determination shall be without prejudice to any other rights or remedies which the Employer
may possess;

(b) the Contractor shall not without the consent of the Contract Administrator remove from the
Site any materials, plant and facilities;

(c) the balance of payment from one Contract Party to the other shall be computed by
calculating the expenses at sub-clause (i) below and then making the deductions or
additions at sub-clauses (ii) to (iv) below:

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 Standard Form of Contract for Maintenance and Renovation Works

(i) the expenses incurred by the Employer in completing the Works, excluding the costs
of Variations instructed after determination, but including the additional costs of
employment of consultants and site staff for a necessary period of time until the
settlement of the final payment under this Contract and the completion of the Works
respectively;

(ii) addition for the total amount previously paid to the Contractor;

(iii) addition for the additional costs and direct loss and/or expense caused to the Employer
by the determination, including damages for delayed completion of any Works Section
for the period until the original completion date of the contract for completion; and

(iv) deduction for the total amount that would have been payable for completing the
Works calculated in accordance with this Contract if the determination had not
occurred.

11.1.3 If the Employer does not employ other persons to commence the Works left outstanding within
12 months after determination, the expenses, costs, direct loss and/or expense, and period of
delay for the purpose of Clause 11.1.2 shall be assessed on the assumption that the employment
of such persons had commenced by the end of the said 12 months.

11.2 Determination by Contractor

11.2.1 The Contractor may but not unreasonably or vexatiously by notice by registered post or recorded
delivery to the Employer forthwith determine the employment of the Contractor under this
Contract in any one of more of the following events:

(a) the Employer fails to make any payment due under this Contract within 14 days of such
payment being due;

(b) the Employer interferes with or obstructs the issue of any certificate due under this Contract;

(c) the commencement or carrying out of the whole or substantially the whole of the Works has
been postponed or suspended as instructed by the Employer or the Contract Administrator
due to no beach or default of the Contractor or postponed or suspended due to any
combination of the Compensable Events for a continuous period of more than 3 months
beyond any stipulated periods of postponement or suspension in this Contract; or

(d) the Employer becomes bankrupt or makes a composition or arrangement with his creditors
or has a petition for compulsory winding-up presented or made against him or enters
into compulsory or voluntary liquidation except for the purpose of reconstruction or has
a provisional liquidator or receiver appointed, unless the Contractor, the Employer and his
trustee in bankruptcy, liquidator or receiver, as the case may be, agree in writing before or
after the notice of determination to the continuation or reinstatement of the Contractor’s
employment.

Provided that the employment of the Contractor shall not be determined due to Clauses
11.2.1(a) to (c) unless the event has continued for 14 days after receipt by registered post or
recorded delivery of a warning notice of determination from the Contractor specifying such
event or, except for sub-clause (c), at any time thereafter has repeated, and the notice of
determination is issued during the continuation or resumption of the event.

11.2.2 In the event of the Contractor determining his employment as aforesaid:

(a) the Employer shall reimburse the Contractor all additional costs and direct loss and/or
expense caused to the Contractor by the determination. Provided always that the right
of determination shall be without prejudice to any other rights or remedies which the
Contractor may possess;

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Standard Form of Contract for Maintenance and Renovation Works

(b) the Contractor may after informing the Contract Administrator remove from the Site any
materials, plant and facilities;

(c) the balance of payment from one Contract Party to the other shall be computed by
calculating the gross valuation at sub-clause (i) below and then making the deductions or
additions at sub-clauses (ii) to (iii) below:

(i) the gross valuation of the Works in accordance with Clause 6.15.4(a), excluding
materials removed by the Contractor after determination, but including materials that
the Contractor has paid for, or is legally bound to pay for, and has or will transfer these
materials with proper ownership to the Employer;

(ii) deduction for liquidated damages which may accrue up to the date of determination;

(iii) addition for the additional costs and direct loss and/or expense caused to the
Contractor by the determination; and

(iv) deduction for the total amount previously paid to the Contractor.

11.3 Consequences of determination

11.3.1 In the event of determination of the employment of the Contractor under Clause 11.1 or 11.2,
this Clause 11.3 shall apply in addition to Clause 11.1.2 or 11.2.2.

11.3.2 The Contractor shall immediately give up possession of the Site and demobilize his people from
the Site except those necessary to attend to site security, site survey and handover but only for
the time specified by the Contract Administrator as being reasonably required for that purpose.

11.3.3 Any removal by the Contractor of materials, plant and facilities shall be carried out with due care
and with suitable safety provisions provided so as not to affect the safety and stability of work
and other objects remaining on site or endanger personal safety.

11.3.4 The Employer may provide site security to prevent improper removal and unauthorised access
from happening and provide safety measures to protect the Works, people and adjoining
properties.

11.3.5 The Contractor, the Contract Administrator and the Quantity Surveyor shall jointly take records of
the status and quantities of the work done and materials, plant and facilities on site.

11.3.6 The Employer may employ and pay other persons to carry out and complete the Works and use
or dispose of the materials, plant and facilities left on the Site pursuant to Clause 11.1.2(b) or
11.2.2(b).

11.3.7 If instructed to do so by the Contract Administrator, the Contractor shall, without payment from
the Employer, terminate or assign to the Employer or other persons to be designated by the
Employer as far as possible the contracts with his suppliers and sub-contractors to enable the
Employer or other persons appointed by the Employer to employ and pay those suppliers and
sub-contractors to continue to provide their service, warranties, guarantees on similar terms to
their existing contracts.

11.3.8 The additional costs incurred in implementing the above procedures and measures shall be part
of the additional costs due to determination.

11.3.9 The Contractor and the Quantity Surveyor shall as soon as practicable exchange their
computations of the balance of payment in Clause 11.1.2(c) or Clause 11.2.2(c) with supporting

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 Standard Form of Contract for Maintenance and Renovation Works

documentation, discuss and agree the balance of payment. Upon agreement, the Quantity
Surveyor shall issue a Final Account (in lieu of that under Clause 6.16) showing a summary
computation of the balance of payment. If the Quantity Surveyor considers that he has taken
into account all the representation of the Contractor but still fails to obtain the Contractor’s
agreement, he may issue a unilateral Final Account to the Contractor and declare it as such.

11.3.10 The Contract Administrator shall issue the Final Certificate (in lieu of that under Clause 6.17.1)
certifying the balance of payment due to the Contractor or due to the Employer as the case may
be within 14 days after the agreement of the Final Account or after 1 month has lapsed after
the issue of the unilateral Final Account, whichever is later. The amount stated as due in the Final
Certificate shall be a debt payable as the case may be by the Employer to the Contractor or by
the Contractor to the Employer within the Period for Honouring Payment stated in the Contract
Agreement calculated from the date of the Final Certificate, and Clause 6.17.4 shall still apply,
unless either of the Contract Parties has expressed his disagreement to the Final Certificate
and notified the other party no later than the due date for payment to resolve the dispute in
accordance with Clause 12.

11.3.11 Before the agreement of the Final Account, the liable Contract Party shall pay the undisputed
portion of the up-to-date balance of payment once every 2 months.

12. DISPUTE RESOLUTION

12.1 Procedures

12.1.1 The Contract Parties agree to follow the dispute resolution procedures outlined in this Clause 12
to resolve any disputes or differences between the Contract Parties that may arise under or in
connection with this Contract, including disagreement between them over any act or omission of
the types stated in Clause 12.5.1(d) of the Contract Administrator or the Quantity Surveyor.

12.1.2 The dispute resolution procedures shall be deemed to commence when either of the Contract
Parties notify the other to resolve disputes in accordance with Clause 12.

12.2 Reference to Designated Representatives

12.2.1 Each of the Contract Parties shall designate one of his own senior executives as its representative
(referred to in this clause as the “Designated Representatives”) within 14 days after the Contract
Award Date.

12.2.2 The dispute shall first be referred to the Designated Representatives who shall forthwith
endeavour to settle the dispute.

12.3 Reference to mediation

12.3.1 If the dispute is not resolved by the Designated Representatives within 28 days of the dispute
being referred to them, either of the Contract Parties may give a notice to the other party to refer
the dispute to mediation.

12.3.2 The person to act as the mediator shall be agreed between the Contract Parties. If the Contract
Parties are unable to agree on the person to act as the mediator within 21 days after a written
request by either party to do so, the mediator shall, on the written request of either party, be
appointed by the President or Vice-President for the time being of the Hong Kong Institute of
Surveyors.

12.3.3 Any such mediation shall, unless otherwise agreed by the Contract Parties, be conducted in
accordance with and subject to the Hong Kong International Arbitration Centre Mediation Rules
except those provisions in the Rules relating to the appointment of the mediator.

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Standard Form of Contract for Maintenance and Renovation Works

12.4 Reference to arbitration

12.4.1 If the dispute is not settled by mediation within 28 days of the commencement of the mediation,
either Contract Party may give a notice to the other party to refer the dispute to arbitration.

12.4.2 The person to act as the arbitrator shall be agreed between the Contract Parties. If the Contract
Parties are unable to agree on the person to act as the arbitrator within 21 days after a written
request by either party to do so, the arbitrator shall, on the written request of either party,
be appointed by the President or Vice-President for the time being of Hong Kong Institute
of Surveyors. The President or Vice-President may, at his discretion, request the Hong Kong
International Arbitration Centre to appoint the arbitrator.

12.4.3 The arbitration shall be a domestic arbitration conducted in accordance with the Arbitration
Ordinance (Chapter 609, Laws of Hong Kong) and, unless otherwise agreed by the Contract
Parties, with the Domestic Arbitration Rules of the Hong Kong International Arbitration Centre
except those provisions in the Rules relating to the appointment of the arbitrator.

12.5 Arbitrator’s powers

12.5.1 The arbitrator’s powers include:

(a) rectifying the Contract to accurately reflect the true agreement made by the Contract
Parties;

(b) directing measurements or valuations to determine the rights of the Contract Parties;

(c) assessing and awarding any sum which ought to have been the subject of or included in a
certificate; and

(d) opening up, reviewing and revising, without limitation, the giving, submitting or issuing
of any agreement, approval, assessment, authorisation, certificate, confirmation, consent,
decision, delegation, direction, dissent, determination, endorsement, instruction, notice,
notification, opinion, request, requirement, statement, term

12.5.2 The place of arbitration shall be Hong Kong.

12.6 Contractor to continue to proceed diligently

The Contractor shall continue to proceed regularly and diligently with the Works despite a dispute
having arisen, and shall continue to give effect to all instructions from the Contract Administrator
unless and until revised by agreement between the Designated Representatives, by mediation or
in arbitration under this Clause 12.

12.7 Governing law

This Contract shall be governed by and construed according to the laws for the time being in
force in Hong Kong.

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 Standard Form of Contract for Maintenance and Renovation Works

APPENDIX A - SURETY BOND

(PRO-FORMA)

By this Bond, we (Note 1) _________________________________________________________________________

________________________________________________________________________________________________
trading as (Note 2) _______________________________________________________________________________
at (Note 3) ______________________________________________________________________________________
whose registered office is at (Note 4) _______________________________________________________________
________________________________________________________________________________ (‘the Contractor’)
and ____________________________________________________________________________________________
________________________________________________________________________________________________
whose registered office is at ______________________________________________________________________
____________________________________________________________________________________ (‘the Surety’)
are held and firmly bound unto ___________________________________________________________________
________________________________________________________________________________________________
_________________________________________________________________________________ (‘the Employer’)
in the sum of Hong Kong Dollars __________________________________________________________________
_________________________________________________________ (HK$________________) for the payment of
which sum the Contractor and the Surety bind themselves, their successors and assigns, jointly and severally
by these presents.

Sealed with our respective seals / Signed and sealed respectively (Note 5) and dated this _________ day of
__________________ 20 ______.

Whereas [By a contract dated the ______ day of ________________ 20 ______ made between the Employer
of the one part and the Contractor of the other part] [By a letter dated the ______ day of ________________
20 ______ sent by {the Contract Administrator on behalf of} the Employer to the Contractor to accept a
tender submitted by the Contractor] (Note 6) for the ________________________________________________
_______________________________________________________________________________________________
______________________________________________________ (‘the Contract’), the Contractor has agreed to
execute the Works as therein defined until the issue of the Defects Rectification Certificate and to perform
the Contract in conformance with the provisions thereof;

and whereas pursuant to the terms of the Contract, the Contractor has agreed to obtain the guarantee of
a surety to be bound unto the Employer in the sum of Hong Kong Dollars ____________________________
______________________________ (HK$________________) for the due performance of the Contract by the
Contractor;

and whereas at the request of and for the account of the Contractor, the Surety has agreed to guarantee
to the Employer the due performance by the Contractor of his obligations under the Contract.

Now the conditions of the above written Bond are:

1. The words and expressions in this Bond shall have the same meaning as in the Contract.

2. The Contractor shall duly perform and observe all the terms, provisions, conditions, obligations,
stipulations and specification of the Contract according to the true purport intent and meaning
thereof and to the reasonable satisfaction of the Contract Administrator appointed by the
Employer in respect of the Works or if on default by the Contractor the Surety shall satisfy and
discharge the damages sustained by the Employer thereby as certified by the said Contract
Administrator up to the amount of the above written Bond then his obligation shall be null and
void but otherwise his obligation shall be and remain in full force and effect.

3. No alterations in the terms of the Contract made by agreement between the Employer and
the Contractor or in the extent or nature of the Works to be executed and no allowance or
extension of time given or to be given by the Employer under the Contract nor any indulgence,
forbearance, forgiveness, payment or concession to the Contractor in or in respect of any matter
or thing concerning the Contract on the part of the Employer or any failure of supervision to

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Standard Form of Contract for Maintenance and Renovation Works

prevent any fault by the Contractor shall in any way release the Surety from any liability under the
above written Bond.

4. This Bond shall be binding upon the Contractor and the Surety and their respective successors
and assigns jointly and severally (provided that the Contractor and Surety may not assign their
respective rights and liabilities hereunder without the prior written consent of the Employer) and
shall inure to the benefits of the Employer and his successors and assigns.

5. This Bond shall remain valid for receipt of claims as aforesaid until the date of issue of the Defects
Rectification Certificate for the whole of the Works pursuant to the Contract and any release of
the Surety from the Bond shall be expressly subject to any claims made before this date.

6. This Bond shall be governed and construed in accordance with the laws of the Hong Kong
Special Administrative Region and the Surety hereby agrees to the non-exclusive jurisdiction of
the Courts of the Hong Kong Special Administrative Region.

SIGNED, SEALED AND DELIVERED by the Contractor in the ) (Note 7)

presence of : )
)
)
)
____________________________________ )
(Signature of witness) )
)
)
____________________________________ )
)
)
)
____________________________________ )
(Name and occupation of witness) )

OR

THE COMMON SEAL of the Contractor was hereunto affixed in the ) (Note 8)
presence of : )
)
)
)
____________________________________ )
(Signature of witness) )
)
)
____________________________________ )
)
)
)
____________________________________ )
(Name and occupation of witness) )

OR

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 Standard Form of Contract for Maintenance and Renovation Works

SIGNED, SEALED AND DELIVERED for and on behalf of and as ) (Note 9)

lawful attorney of the Contractor under Power of Attorney dated )
)
)
____________________________________ )
by _________________________________ )
in the presence of: )
)
____________________________________ )
(Signature of witness) )
)
)
____________________________________ )
(Name and occupation of witness) )
)

THE COMMON SEAL of the Surety was hereunto affixed in the ) (Note 8)
presence of : )
)
)
____________________________________ )
(Signature of witness) )
)
)
____________________________________ )
)
)
)
____________________________________ )
(Name and occupation of witness) )
)
OR

SIGNED, SEALED AND DELIVERED for and on behalf of and as ) (Note 9)

lawful attorney of the Surety under Power of Attorney dated )
)
)
____________________________________ )
by _________________________________ )
in the presence of: )
)
____________________________________ )
(Signature of witness) )
)
)
____________________________________ )
)
)
)
____________________________________ )
(Name and occupation of witness) )
)

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Standard Form of Contract for Maintenance and Renovation Works

Notes

(1) Insert names of sole proprietor or all partners of the firm or, in the case of a limited company, state
registered name of the company.
(2) Insert name of firm or delete in the case of a limited company.
(3) Insert address of firm or delete in the case of a limited company.
(4) Insert registered address of limited company, or delete in the case of a firm.
(5) Delete “Sealed with our respective seals” in the case of a firm.
Delete “Signed and sealed respectively” in the case of a limited company.
(6) Delete content in [ ] and { } as appropriate, select according to whether the Contract is signed or not.
(7) For use in the case of a sole proprietor or where all partners of a firm execute.
(8) For use in the case of a limited company executing under its common seal.
(9) For use in the case of a firm or a limited company executing through an attorney.

Published by The Hong Kong Institute of Surveyors

Room 1205, 12th Floor, Wing On Centre, 111 Connaught Road Central, Sheung Wan, Hong Kong.
Telephone: (852) 2526 3679
Facsimile: (852) 2868 4612
E-mail: [email protected]
Web Site: www.hkis.org.hk

First Printed in Hong Kong

May 2013

ISBN 978-988-12282-1-5

Disclaimer

All parties must rely exclusively upon their own skill and judgment when making use of this document. Neither the Hong
Kong Institute of Surveyors, nor any of its committee members nor any other contributor assumes any liability to anyone for
any loss or damage caused by any error or omission, whether such error or omission is the result of negligence or any other
cause. Any and all such liability is disclaimed.

Copyright

The copyright of this publication is owned by The Hong Kong Institute of Surveyors. All rights reserved. No part of this
publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, Internet or otherwise, without the prior written permission of the Hong Kong Institute
of Surveyors.

Printed by Corporate Press (HK) Ltd

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