PART 2 - GENERAL CONDITIONS OF CONTRACT-Lontar - E

BOOK I
PART 2 GENERAL CONDITIONS OF CONTRACT
TABLE OF CONTENT
BOOK I
2.1 DEFINITIONS....................................................................................................2
2.2 APPLICATION...................................................................................................6
2.3 COUNTRY OF ORIGIN......................................................................................6
2.4 ASSIGNMENT...................................................................................................7
2.5 SUBLETTING....................................................................................................7
2.6 EXTENT OF CONTRACT..................................................................................7
2.7 DOCUMENTS....................................................................................................8
2.8 CUSTODY OF DRAWINGS...............................................................................8
2.9 PERFORMANCE SECURITY............................................................................8
2.10 INSPECTION OF SITE......................................................................................9
2.11 SUFFICIENCY OF BID PROPOSAL.................................................................9
2.12 WORKS TO THE SATISFACTION OF OWNER.............................................10
2.13 CONTRACTOR'S SUPERINTENDENCE........................................................10
2.14 CONTRACTOR'S EMPLOYEES.....................................................................10
2.15 SETTING OUT.................................................................................................11
2.16 LIGHTING AND GUARDING............................................................................11
2.17 CARE OF WORKS..........................................................................................11
2.18 INDEMNITY......................................................................................................12
2.19 FORCE MAJEURE..........................................................................................13
2.20 CONTRACTOR'S INSURANCE......................................................................14
2.21 CONTRACTOR'S INSURANCE DOCUMENTATION......................................17
2.22 COMPLIANCE WITH STATUTES AND REGULATIONS................................18
2.23 MINERALS AND ARTICLES OF VALUE.........................................................19
2.24 PATENT RIGHTS.............................................................................................19
2.25 INTERFERENCE WITH TRAFFIC AND ADJOINING PROPERTIES.............20
2.26 EXTRAORDINARY TRAFFIC..........................................................................20
2.27 WATER BORNE TRAFFIC..............................................................................20
2.28 CO-OPERATION WITH OTHER CONTRACTORS.........................................20
2.29 SUPPLY OF PLANT MATERIALS AND LABOUR..........................................20
2.30 CLEAN UP OF SITE........................................................................................21
2.31 LABOUR.......................................................................................................... 21
2.32 RATES OF PAY AND WORKING HOURS.......................................................22
2.33 REPORTS REGARDING LABOUR.................................................................22
2.34 WARRANTY.....................................................................................................22
2.35 INSPECTIONS AND TESTS...........................................................................25
2.36 OWNER'S ACCESS TO WORKS...................................................................25
2.37 EXAMINATION OF WORK BEFORE COVERING UP....................................26
2.38 REJECTION....................................................................................................26
2.39 SUSPENSION OF WORK...............................................................................26
2.40 COMMENCEMENT OF THE WORKS.............................................................27
2.41 ALLOCATION OF SITE...................................................................................28
2.42 TIME FOR COMPLETION...............................................................................28
2.43 EXTENSION OF TIME FOR COMPLETION...................................................28
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2.44 NIGHT, SUNDAY OR HOLIDAY WORK ON SITE...........................................29

2.45 RATE OF PROGRESS....................................................................................29
2.46 LIQUIDATED DAMAGES.................................................................................29
2.47 VARIATIONS....................................................................................................30
2.48 FORFEITURE..................................................................................................31
2.49 URGENT REPAIRS.........................................................................................32
2.50 TERMINATION FOR CONVENIENCE OF THE OWNER................................32
2.51 SETTLEMENT OF DISPUTES........................................................................33
2.52 BRIBERY AND CORRUPTION........................................................................34
2.53 DELIVERY.......................................................................................................34
2.54 VESTING OF PLANT......................................................................................36
2.55 OWNER'S SUPERVISION...............................................................................37
2.56 OWNER'S DECISION......................................................................................37
2.57 TESTS ON COMPLETION AT SITE...............................................................38
2.58 TAKING OVER................................................................................................38
2.59 DEFECTS AFTER TAKING OVER..................................................................39
2.60 CONTRACTOR TO SEARCH..........................................................................40
2.61 PAYMENT CERTIFICATE................................................................................41
2.62 FINAL ACCEPTANCE CERTIFICATE.............................................................41
2.63 CORRECTION AND WITHHOLDING OF CERTIFICATE...............................42
2.64 PAYMENTS DUE FROM THE CONTRACTOR...............................................42
2.65 NOTICES......................................................................................................... 42
2.66 L A W...............................................................................................................42
2.67 EFFECTIVENESS...........................................................................................42
2.68 UNFORSEEABLE DIFFICULTIES..................................................................42
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BOOK I
DEFINITIONS
In the Contract (as hereinafter defined) the following words and expressions
shall have the meanings hereby assigned to them except where the context
otherwise requires:
2.1.1 'Access' means admittance to a portion of the Site by the Owner.
2.1.2 'Approved', 'Approval' means approved and approval in writing, such approval
not relieving the Contractor from his obligation to execute the Works strictly in
accordance with the Contract.
2.1.3 'Bid Drawings' means Drawings referred to in the Technical Requirements

including standard Drawings of the Bid Document.
‘Contract Drawing’ means Drawings referred to in the Technical Requirements

including standard Drawings of the Contract Document.
2.1.4 'Certificate of Engineering/Manufacturing Progress' means a certificate issued

by the Owner signifying that, in the opinion of the Owner the amount in the
application for payment accurately represents the value of the work executed.
The Owner will measure all decisions and opinions against the terms of the
contract. Owner will delegate its surveyor or his own engineers to the
manufacturers for inspections and certifications.
2.1.5 'Commercial Operation' signifies that the Initial Operation, Reliability Run and
Performance Tests have been successfully completed for the Coal Fired Steam
Power Plant. The Owner shall separately test, take over each unit, together with
the system and subsystems directly related thereto and the remaining unit.
2.1.6 'Commissioning' means those activities embraced in the period when the
construction of the Works is essentially complete for Taking Over.
2.1.7 'Completion of the Contract' means the issue of the last Final Acceptance
Certificate.
2.1.8 'Completion of the Works' means that all of the Works have been taken over by
the Owner.
2.1.9 'Construction Equipment/Plant' means all appliances or things of whatsoever

nature required in or about the execution, maintenance or completion of the
Temporary Works (as hereinafter defined) and execution and completion of the
Works but does not include materials or other things intended to form or forming
part of the Permanent Works.
2.1.10 'Contract' means the Agreement entered into by the Owner and the Successful
Contractors and comprises the following documents.
- The Contract Agreement
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- The Contract Discussion Agreement (CDA)

- Letter of Intent
- The Special Conditions of Contract and Addenda thereto
- The General Conditions of Contract and Addenda thereto
- The Instructions to Bidder and Addenda thereto
- The Technical Specifications (to include Technical Requirements and
Contract Drawings)and Addenda thereto
- The Bid Proposal
2.1.11 ‘Contractor' means the person or persons, firm, company, joint venture or
consortium with whom the Owner has entered into a Contract and includes the
Contractor's authorised representatives, successors and permitted assigns. The
parties comprising the Contractor shall be and remain jointly and severally liable
hereunder. Succeeding the Contract Signing, the word ‘Bidder’ shall be read as
‘Contractor’.
2.1.12 'Contract Price' means the sum entered in the Agreement as the Coal Fired steam
power Plant Contract Price.
2.1.13 'Contract Schedule' means the schedule prepared as defined in Part 5, Schedule 4.
2.1.14 'Day' means calendar day
2.1.15 'Engineer' means PT PLN (Persero) Pusat Enjiniring Ketenagalistrikan at Jl. K.S.
Tubun I/2 Jakarta 11420
2.1.16 'Final Acceptance Certificate' means the certificate issued by the Owner to the
Contractor after the first inspection at the end of the Warranty Period.
2.1.17 'Final Contract Price' means the aggregate of:
- the Total Contract Price;

- the amounts of increase or decrease payable to the Contractor in
accordance with Clause 2.47 (Variations) herein;
- the amounts payable to the Contractor in respect of work performed on
Force Account basis in accordance with Part 3, Clause 3.1; subject to the
deduction of any monies due to the Owner by the Contractor in accordance
with the Contract.
2.1.18 'Force Account Work' means additional work ordered by the Owner and paid for on
a Force Account Work basis as provided in Part 3, Clause 3.1.
2.1.19 'Implementation Procedures' mean the procedures issued by the Owner pursuant to
Part 2, Clause 2.66.
2.1.20 'Individual Tests' means those tests carried out on plant items or plant systems in
whole or part which will enable those items or systems to be made available for
Initial Operation to be carried out.
2.1.21 'Initial Operation' means total or part Plant systems which are available for initial
runs including operation at loads up to full load and load rejection tests.
2.1.22 'Letter of Intent' means the official notice issued by the Owner notifying the Bidder
that his Bid Proposal has been accepted and that the Owner desires to enter
into a mutually acceptable Contract.

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2.1.23 'Ministry of Industry' means the Ministry of Industry of the Government of the
Republic of Indonesia.
2.1.24 'Ministry of Finance' means the Ministry of Finance of the Government of the
Republic of Indonesia.
2.1.25 'Month' or 'Monthly' pertains to a calendar month.
2.1.26 'Owner' means PT. PLN (Persero), with its main office located at, Jl. Trunujoyo Blok
M I/135, Kebayoran Baru, Jakarta 12160, Indonesia.
2.1.27 'Owner's Drawings' means and includes Bid Drawings and any other drawings as
may be furnished by the Owner from time to time.
2.1.28 ‘Overseas experience’ means have been experience and successful operation
outside the origin country
2.1.29 'Performance Security' means the security to be provided by the Contractor in

accordance with Clause 2.9 herein for the due performance of the Contract.
2.1.30 'Payment Certificate' means a document issued and signed by the Owner
confirming that, subject to subsequent audit and review the monies claimed on a
Contractor's invoice are correct and due under the terms of the Contract.
2.1.31 'Performance Test' means those tests carried out on the Plant to compare actual
performance with performance data supplied and guaranteed by the Contractor
to be performed prior to Taking Over.
2.1.32 'Permanent Works' means the Plant and all permanent works (including without
limitation, all permanent structures, all work intended to perform a continuing
function after completion and any other work contractually required to remain at
the Site) to be constructed, completed and maintained by the Contractor in
accordance with the Contract.
2.1.33 'Plant' means and includes all and complete machinery, apparatus, equipment,
materials, spare parts, articles, and things of all kinds to be provided under the
Contract which will form part of the Permanent Works.
2.1.34 'Reliability Run' means that the respective Unit shall be energized for a period of
thirty (30) days for the unit, and, during which unit shall be operated for 96
continuous hours at maximum continuous rating. Interruption of the Reliability
Run caused by faults on equipment supplied under the contract will necessitate
repetition of the Reliability Run. However, it is understood that interruptions shall
not lead to the repetition of the Reliability Run, if such interruption is no more
than 3 hours between opening and closing of the generator breaker and in no
event more than eleven hours in the aggregate, as a result of equipment or
operator failure.
It is understood that the Reliability Run of the unit will be extended by the
duration of any forced outage of its unit, due to defects attributable to Contractor
in the Unit.
2.1.35 'Site' means the lands and other places on, under, in or through which the Works
are to be executed or carried out and any other lands or places provided by the
Owner for the purposes of the Contract, together with such other places as may
be specifically designated in the Contract as forming part of the Site.

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2.1.36 'Specification' means 'The Technical Requirements' and the Bid Drawings forming
part of the Bid Document.
2.1.37 'Specified' means specified in writing by the Owner, in the Specifications.
2.1.38 'Steam to Turbine' means the point in time when the first clean steam is admitted to
the turbine in order that the machine can be run at a speed above barring
speed.
2.1.39 ‘Surety’ means any information in writing by the Owner, in order to refuse
performance security submitted by Contractor.
2.1.40 'Surveyor' means the Company appointed to carry out all inspection test certification
and shipping releases on behalf of Owner.
2.1.41 'Synchronizing' means that the machine is connected to the grid system and has
successfully run at full no load speed and all necessary mechanical and
electrical checks have been successfully carried out.
2.1.42 'Taking Over' signifies that fabrication, delivery, erection, testing, adjustment,
Reliability Run and the Performance Tests have been satisfactorily completed.
2.1.43 'Taking-Over Certificate' (TOC) means a document issued and signed by the Owner
confirming the Taking Over of the Works.
2.1.44 'Temporary Works' means all temporary works of every kind required in or about the
execution, maintenance or completion of the Works but not forming part of the
Permanent Works.
2.1.45 'Total Contract Price' means the sum entered in the Agreement composed of
Contract Price and applicable Value Added Tax.
2.1.46 'Unit' shall means respectively a single unit coal fired steam power plant each of
which includes systems and subsystems directly related thereto.
2.1.47 'Variation' means any modifications to the Works, approved by the Owner, which
cause an increase or decrease in the cost of, or the time required for, the
execution of the Contract or part thereof.
2.1.48 ‘Warranty Period’ means the period of months from the date of the TOC date.
2.1.49 'Work' or 'Works' means the Plant and services to be provided in accordance with
the Contract.
2.1.50 'Writing' includes any signed or sealed manuscript, typewritten, or printed statement.
2.1.51 The words 'approved', 'reasonable', 'significant', 'major', 'minor', 'suitable',

‘acceptable’, 'proper', 'satisfactory', 'similar', 'thorough', 'undue' or words of like
effect and import, unless otherwise specified herein, mean approved,
reasonable, significant, major, minor, suitable, acceptable, proper, satisfactory,
similar, thorough or undue in the sole judgment of the Owner and are intended
only to the extent of judging compliance with the terms of the Contract; none of
these terms shall imply the Owner has any authority or responsibility for
supervision of the Contractor's forces, such supervision and the sole
responsibility therefore being strictly reserved for the Contractor.

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2.1.52 ‘Local Content’ means of or pertaining to the number or percentage of the

components of a product that are manufactured in Indonesia.
2.1.53 ‘Major equipment’ or ‘Main equipment’ is equipment that is boiler, steam turbine,
generator, instrument and control, and 150 kV substation.
2.1.54 ‘Effective Date of Contract’ shall means the date when the Contract come into force
shall be when the following pre-conditions are fulfilled:
 Signing of Contract
 Owner’s Confirmation of Site Hand-over for Construction
 Date of Loan Effectiveness
2.1.55 ‘Locally manufactured product’ means Goods / services produced or handled by

companies that invest and produce in Indonesia using self-owned facilities or its
affiliates (majority ownership), which is in the process of production or
workmanship may use imported raw materials / components
2.1.56 ‘Local Company’ means National Companies as stipulated at (Undang Undang No.
6 tahun 1968 tentang Penanaman Modal Dalam Negeri dan perubahannya).
Notes:
- Words sporting the singular only also include the plural and vice versa where
the context requires.
- The headings or marginal notes in the Contract Document shall not be

deemed to be part thereof or be taken into consideration in the interpretation
or construction thereof or of the Contract.
- Sub-clause 2.1.6 (Commissioning); 2.1.8 (Completion of Works); 2.1.17

(Final Acceptance Certificate); 2.1.21 (Individual Tests); 2.1.22 (Initial
Operation); 2.1.31 (Performance Test); 2.1.34 (Reliability Run); 2.1.42
(Taking-Over); 2.1.43 (Taking Over Certificate); 2.1.48 (Warranty Period), the
above referenced definitions are on a unit by unit basis (see Sub-clause
2.1.5).
- Words “Bidder” if any, it will be means “The Contractor” in the Contract

Document.
APPLICATION
These General Conditions shall apply to the extent that they are not superseded
by provisions in other parts of the Contract.
COUNTRY OF ORIGIN
For purposes of this Clause 'origin" means the place where the Goods were
mined, grown or produced, or from which the Services are supplied. Goods are
produced when, through manufacturing, processing or substantial and major
assembling of components, a commercially recognised new product results that
is substantially different in basic characteristics or in purpose or utility from its
components.

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The origin of Goods and Services is distinct from the nationality of the Supplier.
ASSIGNMENT
The Contractor shall not assign the Contract or any part thereof or any benefit or
interest therein or there under without the prior written consent of the Owner.
Any such purported assignment shall be null and void.
SUBLETTING
The Contractor shall not sublet the whole of the Works. The Contractor shall not
sublet any part of the Works without the prior written consent of the Owner and
such consent if given shall not relieve the Contractor from any liability or
obligation under the Contract and he shall be responsible for the acts, defaults
or neglects of any sub Contractor, his agents, servants or workmen as fully as if
they were the acts, defaults or neglects of the Contractor, his agents, servants
or workmen.
With regard to the 1 st paragraph, the Contractor shall not sublet any part of the
Works to other sub-Contractors other than those listed in the Contract without
the prior written consent of the Owner, excepting minor items.
Should any sub Contractor fail to perform in a satisfactory manner the work
undertaken by him, his subcontract shall be immediately terminated by the
Contractor upon notice from the Owner. Nothing contained in this Contract shall
create any contractual relationship between any sub Contractor and the Owner.
The Contractor shall include in his subcontracts and supply contracts provisions
similar to the provisions set forth herein. The Contractor shall ensure that his
sub Contractors and suppliers comply with the provisions of the Contract, insofar
as they apply to the subcontracted work or to the goods and materials to be
supplied. The Contractor shall, when requested by the Owner, produce copies
of his contracts with sub Contractors and suppliers, to allow the Owner to satisfy
himself that the provisions of this Clause have been fulfilled. Prices and rates in
such documents need not be disclosed.
All references herein to duties and obligations of the Contractor shall be deemed
to pertain also to his sub Contractors and suppliers, to the extent applicable.
The Contractor shall be obligated to ensure that they comply with such
requirements.
EXTENT OF CONTRACT
The Contract shall comprise the scope of Work as described in the Bid
Document except in so far as the Contract otherwise provides, the provision of
all labour including the supervision thereof, materials, Construction Equipment/
Plant, Temporary Works and all other things whether of a temporary or
permanent nature, as may be reasonably inferred from the Contract.
DOCUMENTS

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In the event of inconsistencies between different parts of the Contract the

documents defining the Contract shall take the following descending order of
precedence (the most recent document within a category having precedence):
- The Contract Agreement

- The Contract Discussion Agreement (CDA)
- Letter of Intent
- The Special Conditions of Contract and Addenda thereto
- The General Conditions of Contract and Addenda thereto
- The Instructions to Bidder and Addenda thereto
- The Technical Specifications (to include Technical Requirements and
Contract Drawings)and Addenda thereto
- The Bid Proposal
CUSTODY OF DRAWINGS
The originals of Owner's Drawings will remain in the sole custody of the Owner
but two authorized copies of applicable drawings thereof will be furnished to the
Contractor free of cost.
At least one copy of the Owner's Drawings furnished to the Contractor as

aforesaid shall be kept by the Contractor on the Site and the same shall at all
times be available for inspection and use by the Owner and by any other person
authorized by the Owner in writing.
The Owner will have the full authority to supply the Contractor from time to time
during the progress of Works further drawings and instructions as shall be
necessary for the purpose of proper and adequate execution and maintenance
of Works and the Contractor shall carry out and shall be bound by the same.
PERFORMANCE SECURITY
The Contractor shall, at least fourteen (14) Days prior to the date established for
signing of the Agreement, furnish at his own cost performance security to the
Owner in an amount equal to ten (10) percent of the Total Contract Price. The
performance security shall insure the due and proper performance of this
Contract and the payment of any obligations, damages, liquidated damages, or
expenses for which the Contractor may become liable to the Owner.
The performance security shall be issued by reputable local banks or foreign
bank which operates in Indonesia.
The performance security shall be in the form of a Bank Guarantee for

Performance or Performance Bond, in the form included in Part 7. The
performance security shall be payable. The Owner may, at any time upon
application by the Contractor, consider approval of the substitution for any
security held under the provision of this clause by other security.
Unless and until an official receipt is issued by the Owner for the security
deposit, the Owner will not recognize or accept any such deposit as fulfilling the
requirements of this article. Failure to maintain a valid performance security at all
times as provided despite reminder by the Owner shall be a material breach of
Contract.
The performance security shall remain valid and in full effect for a period of thirty
(30) Days after Completion of the Contract.
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If any security furnished shall become unacceptable to the Owner or if any

Surety shall fail to furnish reports as to its financial conditions from time to time
as requested by the Owner, the Contractor shall promptly furnish such additional
or alternative security as may be required by the Owner to protect the interests
of the Owner, not to exceed the amount of the original security.
In the event of any default or breach of this Contract on the part of the
Contractor, the Owner may convert into money any performance security which
does not consist of money, and the proceeds shall be deemed to be a cash
deposit. The Owner will not be liable for any loss resulting from the conversion
of any security deposit into money as herein provided.
Should significant increases in the Final Contract Price take place during the
Contract, the amount of the Performance Security shall be adjusted accordingly.
The validity of the performance security shall be automatically extended under

the same conditions for any and all modifications, alterations, variations and
extensions of time of the Contract as they may occur during and in accordance
with the Contract and without the Owner having to supply notification of or
obtain consent to such modifications, alterations, variations of extensions of time
to the Contract.
INSPECTION OF SITE
The Contractor will be deemed to have inspected and examined the Site and its
surroundings and to have satisfied himself, before submitting his Bid Proposal,
as to the form and nature of the Site, the quantities and nature of the work
necessary for the completion of the Works, and means of access to the Site, the
accommodation he may require and in general shall himself obtain all necessary
information as to risks, contingencies and all other circumstances which may
influence or affect his Bid Proposal.
The Contractor will be deemed to have fully investigated, without any

commitment on the Owner, and made appropriate arrangements for the
establishment of proper accommodation, outside the Site, of his work-force
consistent with all local and Governmental Regulations in force.
SUFFICIENCY OF BID PROPOSAL
The Contractor shall, by careful examination, satisfy himself in respect of all

pertinent conditions which may in any manner bear upon performance of the
Works, such as, but not limited to, the nature and location of the work to be
performed, the character, quality and quantity of the materials which may be
encountered or which may be available, the character of equipment and facilities
needed preliminarily to and during prosecution of the Work, labour conditions,
transport conditions, the general and local conditions and without being limited
by the foregoing, as to any and all matters and conditions which can in any way
affect the Work to be performed.
More specifically, the Contractor shall fully inform himself concerning all
necessary particulars of soil and subsurface conditions at the Site, including
earthquake factors and that the Owner has furnished all data and information
available to the Owner required by the Contractor pertinent hereto. Any
allowance for all of the foregoing factors and all other risks, conditions or other
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circumstances shall be included in the Bid Proposal. Therefore, no claim will be

considered for costs or extensions of time based in whole or in part between the
actual factors and requirements described above from those which may have
been anticipated by the Contractor.
WORKS TO THE SATISFACTION OF OWNER
The Contractor shall execute and complete the Works in strict accordance with
the Contract to the satisfaction of the Owner and shall comply with and adhere
strictly to the Owner's instructions and directions on any matter, whether
mentioned in the Contract or not, concerning the Works. The Contractor shall
take instructions and directions only from the Owner or his designated
representative.
CONTRACTOR'S SUPERINTENDENCE
The Contractor shall give or provide all necessary superintendence during the
execution of the Works and as long thereafter as the Owner may consider
necessary up to the Completion of the Contract for the proper fulfilling of
Contractor's obligations under the Contract. A competent and authorized agent
or representative approved of in writing by the Owner, which approval may at
any time be withdrawn, shall be constantly on the Site and shall give his whole
time to the superintendence of the Works. Such authorised agent or
representative shall receive on behalf of the Contractor directions and
instructions from the Owner.
If such approval shall be withdrawn by the Owner the Contractor shall as soon
as is practicable having regard to the requirement of replacing him as
hereinafter mentioned, after receiving written notice of such withdrawal remove
the agent from the Site and shall not thereafter employ him again on the Site in
any capacity and shall replace him by another agent approved by the Owner.
CONTRACTOR'S EMPLOYEES
The Contractor shall provide and employ in connection with the execution of the
Works:
Only such technical assistants as are skilled and experienced in their respective
trades and such sub-agents, foremen and lead men as are competent to give
proper supervision to the Works they are required to supervise, and Such
skilled, semiskilled and unskilled labour as is necessary for the proper and timely
execution and maintenance of the Works.
The Owner will be at liberty to object to and require the Contractor to remove
forthwith from the Site any person employed by the Contractor in or about the
execution or maintenance of the Works who in the opinion of the Owner
misconduct himself or is incompetent or negligent in the proper performance of
his duties or whose employment is otherwise considered by the Owner to be
undesirable and such person shall not be again employed upon the Works
without the written permission of the Owner. Any person so removed from the

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Site shall be replaced as soon as possible by a competent substitute approved

by the Owner.
SETTING OUT
The Contractor shall be responsible for the true and proper setting out of the
Works.
If at any time during the progress of the Works any error shall appear or arise in
the position, levels, dimensions or alignment of any part of the Works the
Contractor on being required to do so by the Owner shall at his own expense
rectify such error to the satisfaction of the Owner. The checking of any setting
out or of any line or level by the Owner shall not in any way relieve the
Contractor of his responsibility for the correctness thereof and for promptly
informing the Owner of any potential errors or deficiencies in connection
therewith and the Contractor shall carefully protect and preserve all bench
marks, sight-rails, pegs and other things used in setting out the Works. The
Contractor shall regularly re-check the setting out of the Works and notify the
Owner accordingly.
If the Contractor or any of his sub Contractors or any of their representatives or

Owners move or destroy or render inaccurate any survey control point
established by the Owner or its other Contractors, such control point shall be
replaced by the Owner or caused to be replaced by the Owner at the
Contractor's expense. No separate payment will be made for survey work
performed by the Contractor.
LIGHTING AND GUARDING
The Contractor shall be responsible for the proper lighting, guarding and
watching of all the Works on the Site until taken over and for the proper
provision during a like period of temporary roadways, footway, guards and
fences as far as the same may be rendered necessary by reason of the Works
for the accommodation and protection of the owners and occupiers of adjacent
property, the public and others. No naked light shall be used by the Contractor
in the Site other than in the open air without special permission in writing from
the Owner.
CARE OF WORKS
From the date of commencement of the Works to the Completion of the Works
the Contractor shall take full responsibility for the care thereof and of all
Temporary Works and Construction Equipment/ Plant and in case any damage,
loss or injury shall happen to the Works or to any part thereof or to any
Temporary Works or Construction Equipment/ Plant from any cause whatsoever
(except the excepted risks as defined in this Clause 2.17) shall at his own cost,
repair and make good the same so that at completion, the Works shall be in
good order and condition and in conformity in every respect with the
requirements of the Contract and the Owner's instruction.
In the event of any such damage, loss or injury happening from any of the
excepted risks the Contractor shall make good the damage or loss happening
from any of the Excepted Risks at the cost of the Owner as agreed between the
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parties, or if no agreement can be reached, then such shall be settled by

arbitration.
The Contractor shall also be liable for any damage, loss or injury to the Works
occasioned by him in the course of any operations carried out by him for the
purpose of complying with his obligations under Clause 2.59 (Defects After
Taking Over) herein.
Such full responsibility for Construction Equipment/ Plant used in the execution
or maintenance of the Works shall extend until issue of the Final Acceptance
Certificate.
The Contractor shall take full responsibility for the care of any outstanding Work
or tests which he shall have undertaken to finish during the Warranty Period
until such outstanding Work is completed to the satisfaction of the Owner.
The 'excepted risks' are:
war, hostilities (whether war be declared or not), invasion, act of foreign

enemies, rebellion, revolution, insurrection or military or usurped power, civil war,
or (other than among the Contractor's own Employee) riot, commotion or
disorder; and ionising radiations or contamination by radio-activity from any
nuclear fuel or from any nuclear waste from the combustion of nuclear fuel,
radio-active, toxic, explosive on other hazardous properties of any explosive
nuclear assembly or nuclear component thereof; and pressure waves caused by
aircraft or other aerial devices travelling at sonic or supersonic speeds,
earthquake and other natural disasters such as flooding, hurricanes, typhoons.
INDEMNITY
The Contractor shall indemnify and keep indemnified the Owner against all
losses and claims for injuries or damage to any person or any property which
may arise out of or in consequence of the execution of the Works and against all
claims, demands, proceedings, damages, costs, charges and expenses
whatsoever in respect of or in relation thereto. Provided always that nothing
herein contained shall be deemed to render the Contractor liable for or in
respect of or to indemnify the Owner against any compensation or damages for
or with respect to:
- The permanent use or occupation of land by the Works or any part thereof.
- The right of the Owner to execute the Works or any part thereof on, over,
under, in or through any land.
- Interference whether temporary or permanent with any right of light, airway

or water or other easement or quasi-easement which is the unavoidable
result of the construction of the Works in accordance with the Contract.
- Injuries or damage to persons or property resulting solely from any act or

neglect done or committed during the currency of the Contract by the Owner,
his agents, servants or other Contractors employed by the Owner (not being
employed 'by the Contractor) or for or in respect of any claims, demands,
proceedings, damages, costs, charges and expenses in respect thereof or in
relation thereto.

BOOK I
In no event shall the Contractor be liable, whether as a result of breach of

contract, warranty or otherwise for loss of anticipated profit, loss by reason of
plant shut down, increased operational expenses, cost of replacement power,
claims by Owner's customers or for any other indirect or consequential
damages, and that the remedies of the Owner expressly provided for in the
Contract are exclusive. The total liability of the Contractor hereunder shall be the
Total Contract Price.
The placement of this clause shall not limit its applicability to the whole contract.
The indemnification under this sub clause shall not be limited in any way by any
workman's compensation acts, disability benefit acts or other Owner benefit
acts.
The obligations of the Contractor under this sub clause shall not extend to the
liability of the Owner, his agents, servants or Owners arising out of the
preparation or approval of plant, opinions, surveys, designs or specification, or
the on-site inspection services performed by the Owner, his agents, servants, or
Owners, provided the performance of such acts is the sole cause of the injury or
damage. However the Contractor shall include these risks under the
Construction All Risk insurance.
The Contractor shall indemnify and keep indemnified the Owner against all
losses and claims for social and economic impact to any person or any property
which may arise out of or in consequence of the execution of the works.
FORCE MAJEURE
2.1.1 DEFINITION OF FORCE MAJEURE
The term 'force majeure as employed hereinafter shall mean acts of God, strike,
lockout, or other industrial disturbances, acts of public enemy, wars, blockades,
insurrection, riots, epidemics, landslides, earthquakes, storms, lightning, flood
washouts, civil disturbances, explosions, and any other cause not within the
control of either party and which by the exercise of due diligence neither party is
able to overcome.
2.1.2 GENERAL
If the Contractor is temporarily unable, wholly or partially, to perform his duties

and responsibilities under the Contract by force majeure, it is agreed that, when
notice and full particulars in writing of such force majeure is given to the Owner
by the Contractor within 14 (fourteen) days after the occurrence of the cause
relied on, the duties and responsibility of the Contractor so far as they are
affected by such force majeure shall be suspended during the continuance of
any inability so caused, but for no longer period, and such cause shall as far as
possible, be removed with all reasonable dispatch. Neither party shall be liable
to the other for delays caused by force majeure.
2.1.3 FORCE MAJEURE OF SUB CONTRACTOR
Delay and failure to deliver in time by a Sub-Contractor due to any of such

causes as mentioned in Clause 2.19.1 to the sub Contractor, will be considered
as a force majeure to the Contractor unless the Owner in such cases has
determined that the minor and/or standard goods to be furnished under the
subcontract are procurable in the open market.
BOOK I
2.1.4 NOTICE OF FORCE MAJEURE
If the Contractor is permanently prevented, wholly or partially, by reason of force

majeure or other cause, from performing the Work under the Contract, the
Contractor shall submit to the Owner within 14 (fourteen) days a notice in
writing, giving full particulars of such force majeure or other cause (certified by
the appropriate Chamber of Commerce of the supplier's country and/or by the
Indonesian Diplomatic Representative in that country, if such cases occur
outside Indonesia). Both parties shall be entitled to terminate the Contract by
notice in writing-without prejudice to each party's rights against the other party in
respect of the executed portion of the works.
If for reasons of force majeure the performance under this Contract has been
suspended for more than 1 (one) year, upon receipt of such a notice the Owner
and the Contractor shall mutually evaluate the portion of the work performed by
Contractor and payments made by or on behalf of the Owner and settle the
accounts.
CONTRACTOR'S INSURANCE
Without limiting his obligations or responsibilities under Clauses 2.17 and 2.18
herein and with due regard to statutory Workers Compensation Insurance, the
Contractor shall, at his own expense, provide and maintain at all times and over
all equipment and materials within the duration of the Contract, Builders Risk
insurance, Third Party Liability insurance and Marine and Cargo insurance as
detailed in this Clause 2.20. The minimum extent of coverage or indemnity for
the risks shall be as specified in Part 3.
2.1.5 BUILDERS RISK INSURANCE
Builder's risk insurance shall indemnify the Owner, the Contractor, his sub
Contractors and suppliers or others engaged by the Contractor to provide
goods, equipment, materials or services in connection with the Contract, from:
Loss of or damage to the Permanent Works and Temporary Works, including

any unfixed materials or other things delivered to the Site for incorporation
therein, from a cause occurring on the Site prior to Completion of the Works or
occasioned by the Contractor in the course of any operation carried out by him
for the purpose of complying with his obligations under Clause 2.58 herein.
Loss of or damage to Construction Equipment/ Plant and other things brought

on to the Site by the Contractor for use in the execution and maintenance of the
Works.
The insurance shall not apply to or include the 'excepted risks' defined in Clause
2.17 herein. The insurance shall include a 50/50 clause to match a similar
clause in the Marine and Cargo insurance to cover the event of loss or damage
discovered within 120 Days of equipment or materials being received at the Site.
The Contractor shall, before commencing the execution of the Works, effect
insurance with one or more Indonesian national insurance companies licensed
by the Ministry of Finance.
Unless the Owner shall have approved, in writing, other arrangements, the
Contractor shall, in the joint names of the Contractor and the Owner, insure the
BOOK I
Works and keep each part thereof insured for their full replacement value, it
being understood that the Owner shall not in any way be liable for inadequate
coverage, against all loss or damage from whatever cause arising, including
those due to the Contractor's defective design, the Contractor's defective
materials, the Contractor's bad workmanship, loss or damage caused by major
and other perils such as fire, earthquake, windstorm, flood, typhoon,
subsidence, landslide, total collapse, strike, riot, civil commotion (SRCC) unless
solely restricted to Owners of the Contractor or of his Sub Contractors and
arising from the conduct of the Works, from the date of shipment or the date on
which it becomes the property of the Owner whichever is the earlier until it is
taken over by the Owner.
The insurance shall cover all supplies and services under the Contract to one
hundred percent (100 %) of the full Contract value during the performance of the
Works up to the issuance of the Taking-Over Certificate.
The coverage of this insurance shall be on an all-risks basis.
The insurance coverage between the transport and the construction all-risk
insurance shall be without any interruption.
2.1.6 PUBLIC LIABILITY (THIRD PARTY INSURANCE)
Public liability insurance shall indemnify the Owner, the Contractor, his sub
Contractors and suppliers or others engaged by the Contractor to provide
goods, equipment, materials or services in connection with the Contract, from:
Liability for payment of compensation to workmen for injury suffered in the

course of their employment by the Contractor or any of his sub Contractors on
the Site under the Workmen's Compensation Act or any statutory modification or
re-enactment thereof.
The insurance shall also cover all Contractor's Owners not covered under the
Workmen's Compensation Act or other similar workers compensation laws, as
may be applicable and for his common law/Owners liabilities for all Owners.
Liability for damage, loss or injury which may occur to any property, or to any
person, by or arising out of the execution of the Works, or in carrying out the
Contract.
Liability to third parties for all owned, leased, hired or non- owned mechanically
propelled vehicles used or operated in the performance of the Contract by or on
behalf of the Contractor on public highways or elsewhere such as to be eligible
for compulsory Motor Insurance under the provisions of the laws of Indonesia.
Indemnity limits shall be for at least the applicable amount stated in Part 3
Clause 3.18.
The insurance shall also cover the following:
- Owner's and Contractor's protective liability

- Contractual liability
- Liability during the Warranty Period
- Personal injury liability
- Cross liability
- Occurrence property damage
The insurance policy shall contain the following clause or one of like effect:
BOOK I
'The insurance afforded by this policy shall apply with respect to any liability or
alleged liability of any one Insured to any other Insured as if separate policies
had been issued to each Insured'.
Any act or omission on the part of any Insured hereunder shall not prejudice the
interests of any other Insured under this policy.
The insurance afforded by this policy is primary and any liability insurance
carried by PT. PLN (Persero) shall be considered extra.
The insurance coverage shall not apply to or include the 'excepted risks' as
described herein.
2.1.7 MARINE AND CARGO INSURANCE
Marine and Cargo insurance shall be in the joint names of the Owner, the
Contractor and his associated sub Contractors. The insurance shall cover the
Plant during transportation from places of manufacture up to the relevant places
of destination for the installation, as well as during intermediate storage, if any,
against all risks according to institute Cargo Clauses. The coverage shall be
made for 110% of the total contract price (CIF) of the equipment to be supplied
under the Contract. This insurance shall cover all risks including SRCC, theft,
pilferage, loss and/or damage caused by sea-water, freshwater and rainwater,
condensation, hooks, mud, oil, and/or cargo, fire; including ordinary breakage,
including bending, denting, and twisting; including rust and/or oxidation
howsoever caused. Replacement of damaged equipment and/or materials
(under these sub-clauses) can be imported free from any custom duty, taxes or
any other fees. The insurance shall be valid until the Plant has been installed in
place. Coverage shall be on an 'All Risks' basis for any form of land, sea or air
conveyance and shall include for:
Loss of or damage' to materials intended for incorporation in the Contract other

than as specified in the Owner's insurance program whilst in course of transport
to the Site. Coverage shall be based on Institute Cargo Clause A and/or
Institute Cargo Air All Risks or acceptable equivalent, and shall be extended to
include the relevant Institute War and Strikes Clauses.
Loss of or damage to Construction Equipment/ Plant and other things whilst in

the course of transport to the Site. Coverage shall be based on Institute Cargo
Clauses A and/or Institute Cargo Air All Risks or acceptable equivalent, and shall
be extended to include the relevant Institute War and Strikes Clauses.
The insurance shall include a 50/50 clause to match a similar clause in the
Builder's Risk insurance to cover the event of loss or damage discovered within
120 Days of equipment or materials being received at Site.
2.1.8 GENERAL INTENT
The general intent of the insurance specified in this Clause 2.20, is to indemnify
the Owner and other Contractors engaged at Site from any liability for loss
except for an accident or injury resulting from an act or default of the Owner, his
agents or his servants.
Insurance shall contain an automatic increase clause to allow for variations in

the value of the Contract over the duration of the Contract and shall include for
the costs of dismantling, re-erection, testing, inspection, cleaning, repainting etc.
involved in the rectification of a claim. Any money payable in respect of any
BOOK I
claim under any insurance policy shall be payable in free convertible currency to
the Affected party. All money received under any such insurance will be applied
in or towards the repair and/or replacement of the Plant damaged or destroyed.
Insurance provided by Contractor shall comply with the general intent of this Sub
clause 2.20.4.
2.1.9 INSURANCE OPTION
In case the Owner undertakes to make arrangements for insurance specified in

Sub clauses 2.20.1, 2.20.2 and 2.20.3 and confirmed by the Contractor, the
Contractor's liability for those risks will be limited to the deductible portion of
each claim as given in the Owner's insurance policy and specified in Part 3, Sub
clause 3.18. The Contractor will remain responsible for the other coverage
specified in this Clause 18. The Contractor will remain responsibility for the other
coverage specified in this clause including re-insurance if Insurance Company
can’t be taken by him. The Contractor should be provided Re-insurance
Company with the qualification of the Rating Standard and Poor minimum (A-).
2.1.10 NOTIFICATION
Insurance certificates shall contain the following information.
- name and address of the insurance company

- terms of the insurance
- duration of the insurance
- total value and its allocation to main parts of the Works premium.
- name and address of insurance broker if any.
The Contractor shall furnish in duplicate, originals of the insurance policies to

the Owner before the first shipment is made.
The Contractor shall notify the insurer or broker of any matter or event which by
the terms of such insurance are required to be notified.
The Contractor shall keep indemnified the Owner against all losses, claims,
demands, proceeding costs, charges and expenses whatsoever arising out of
and resulting from any default of the Contractor in complying with such
notification or subsequent handling of claims.
CONTRACTOR'S INSURANCE DOCUMENTATION
For any insurance provided by the Contractor under the Contract, the Contractor
shall provide to the Owner copies of the policy or policies of insurance and
receipts for payment of the current premium, undertaken by the Contractor in
accordance with the requirements of Clause 2.20 (Contractor's Insurance)
herein for detailed scrutiny and approval. The Owner may accept or reject any
company, policy or section thereof which in the Owner's opinion does not meet
the intent of Clause 2.20 (Contractor's Insurance) herein. The Contractor shall
provide draft copies of his proposed contracts of insurance to the Owner
immediately after Contract Signing and formal copies immediately after such
insurance come into effect. Insurance shall be effected with an Insurance
Company registered in Indonesia which has a business license from the Ministry
of Finance.
All insurance policies shall provide that the insurance shall not, without approval
of the Owner, be cancelled, reduced, restricted, or changed in any way without
BOOK I
at least forty five (45) Days' written notice being given to the Owner by
registered mail to the head office of the Owner. In the event of any such
cancellation, reduction, restriction or change in any insurance, the Contractor
shall immediately replace such insurance with coverage acceptable to the
Owner.
If the Contractor shall fail to effect and keep in force the insurance referred to in
Clause 2.20 (Contractor's Insurance) herein or any other insurance which he
may be required to effect under the terms of the Contract or if he should fail to
provide evidence of this insurance being kept in effect then and in such case the
Owner will effect and keep in force any such insurance and pay such premiums
as may be necessary for that purpose and from time to time deduct the amount
so paid by the Owner from any monies due or that may become due to the
Contractor or recover the same as a debt due from the Contractor. It is
expressly provided that any action on the part of the Owner, in this respect shall
in no way change or reduce the Contractor's responsibilities and liabilities under
this Contract. The Contractor shall be liable to the Owner for the full
consequences of his failure to insure.
COMPLIANCE WITH STATUTES AND REGULATIONS
The Contractor shall give all notices and pay all fees required to be given or paid
by any national or provincial or local statute, ordinance or other law or any
regulation or by-law of any local or other duly constituted authority in relation to
the execution of the Works or of any Temporary Works and by the rules and
regulations of all public bodies and companies whose property or rights are
affected or may be affected in any way by the Works or any Temporary Works.
The Contractor shall comply in all respects with the provisions of any such
statute, ordinance or law aforesaid and the regulations or by-laws of any local or
other duly constituted authority which may be applicable to the Works or to any
Temporary Works and with such rules and regulations of public bodies and
companies as aforesaid and shall keep the Owner indemnified against all
penalties and liability of every kind for breach of any such statute, ordinance or
law, regulation or by-law.
The Contractor shall keep himself fully informed of all laws of the Republic of
Indonesia, all local laws, ordinances, safety codes, regulations and all orders
and decrees of bodies or tribunals having any jurisdiction or authority which in
any manner affect the Contractor, those engaged or employed on the Works or
which in any way affect the conduct of the Works. He shall at all times observe
and comply with all such laws, ordinances, safety codes, regulations, orders and
decrees and shall protect and indemnify the Owner against any claim or liability
arising from or based on the violation thereof.
The Owner will assist the Contractor in obtaining the necessary permits and
licenses required for the Contractor's personnel to perform the Works.
It is understood that if there are changes to any law, regulation, presidential or

governmental decree etc. after the Contract signing date, the implications of
such changes shall be discussed in good faith and mutually agreed within the
framework of these laws, regulations decrees etc. and in compliance with
guidance laid down by the Government of Indonesia for implications to such
changes to the laws, regulations, presidential and governmental decrees etc.

BOOK I
MINERALS AND ARTICLES OF VALUE
All minerals, fossils, coins, articles of value or antiquity and structures and other
remains or things of geological or archaeological interest discovered on the site
of the Works will be deemed to be the absolute property of the Owner and the
Contractor shall take reasonable precautions to prevent his workmen or any
other persons from removing or damaging any such article or thing and shall
immediately upon discovery thereof and before removal acquaint the Owner of
such discovery and carry out at the expense of the Owner, the Owner's orders
as to the disposal of the same.
PATENT RIGHTS
The Contractor shall fully indemnify the Owner against all actions, claims,
demands, costs, charges and expenses arising from or incurred by reason of
any infringement of letters patent, design, trade-mark or copyright or other
protected right by the use of any Plant supplied or Construction Equipment/
Plant or material used by the Contractor, but such indemnity shall not cover any
use of the Works other than for the purpose indicated by or reasonably to be
inferred from the Specification.
In the event of any claim being made or action brought against the Owner
arising out of the matters referred to in this Clause, the Contractor will be
promptly notified thereof and may at his own expense conduct all negotiations
for the settlement of the same, and any litigation that may arise there from. The
Owner will not, unless and until the Contractor shall have failed to take over the
conduct of the negotiations or litigation, make any admission which might be
prejudicial thereto. The conduct by the Contractor of such negotiations or
litigation shall be conditional upon the Contractor having first given to the Owner
such reasonable security as shall from time to time be required by the Owner to
cover the amount ascertained or agreed or estimated as the case may be, of
any compensation, damages, expenses, and costs for which the Owner may
become liable in respect of such infringement as aforesaid. The Owner will at
the request of the Contractor, afford all available assistance for the purpose of
contesting any such claim or action, and shall be repaid any costs and expenses
in so doing.
Notwithstanding the foregoing, in the event the use of any part of the Works is
enjoined, the Contractor shall immediately take such action as the Owner may
direct to allow the Owner use of the Works.
INTERFERENCE WITH TRAFFIC AND ADJOINING PROPERTIES
All operations necessary for the execution of the Works and for the construction
of any Temporary Works shall so far as compliance with the requirements of the
Contract permits be carried on so as not to interfere unnecessarily or improperly
with the convenience of the public or the access roads and foot-paths to or of
properties whether in the possession of the Owner or of any other person.
EXTRAORDINARY TRAFFIC
The Contractor shall use every reasonable means to prevent any of the
highways or bridges communicating with or on the routes to the Site from being
damaged or injured by any traffic of the Contractor or any of his sub Contractors
BOOK I
and in particular shall select routes, choose and use vehicles and restrict and
distribute loads so that any such extraordinary traffic as will inevitably arise from
the moving of plant and material from and to the Site shall be limited as far as
reasonably possible and so that no unnecessary damage or injury may be
occasioned to such highways and bridges.
WATER BORNE TRAFFIC
Where the nature of the Work is such as to require the use by the Contractor of
water-borne transport the provisions of Clause 2.26 (Extraordinary Traffic) herein
shall be construed as though 'highway' included a lock, dock, sea wall or other
structure related to a waterway and 'vehicle' included craft and shall have effect
accordingly.
CO-OPERATION WITH OTHER CONTRACTORS
In accordance with the requirements of the Owner, the Contractor shall co-
operate and co-ordinate his work with and afford all reasonable opportunities for
carrying out their work to any Contractors and their workmen employed by the
Owner, to the workmen of the Owner and to any other duly constituted
authorities who may be employed in the execution on or near the Site of any
work not included in the Contract or of any contract which the Owner may enter
into in connection with or ancillary to the Works. The Contractor shall commit or
permit no act, omission or negligence which may interfere with the work of any
other Contractor.
SUPPLY OF PLANT MATERIALS AND LABOUR
The Contractor shall at his own expense supply and provide all the Construction
Equipment/Plant, Temporary Works, materials both for Temporary and for
Permanent Works, labour (including the supervision thereof), transport to or
from the Site and in and about the Works and other things of every kind required
for the construction and completion of the Works and shall be responsible for
off-loading, storage, transport and, unless the Owner has made his own
arrangements, insurance on the Site for any plant and materials supplied as
free-issue by the Owner.
CLEAN UP OF SITE
Special attention shall be given to keeping the inside of the structures and
surrounding grounds clean and free from trash and debris. The Contractor shall
employ sufficient and special personnel to clean his work areas thoroughly and
continuously each working day and shall co-operate with other Contractors to
keep the entire Site clean. This shall include sweeping all floors, collecting and
disposing of trash, and all other functions required to keep the Site clean.
Materials and supplies shall be stored in locations which will not block access-
ways, and arranged to permit easy cleaning of the area. In areas where
equipment might drip oil or cause other damage to the floor surface, a protective
cover of heavy gauge, flame resistant, oil-proof sheeting shall be provided
between the equipment and the floor surface so that no oil or grease contacts
the concrete. This requirement shall be applicable to both finished and
unfinished floors.

BOOK I
All hoses, cables, extension cords and similar materials shall be located,
arranged, and grouped so that they will not block any access-way and will permit
easy cleaning and maintenance. At the close of each work-week and at the
close of each day preceding a holiday, all such items shall be removed from the
construction area and stored in the Contractor's warehouses or other storage
areas.
All trash, debris and waste materials shall be removed from the Site daily and
disposed of by the Contractor and at the Contractor's expense.
Promptly upon the completion of the erection work, all scrap, trash, waste
materials and debris resulting from Work under this Contract shall be removed
from the Site. All Contractor-owned facilities, materials and Construction
Equipment/ Plant shall be removed from the Site. The Contractor shall
thoroughly clean the work, removing all accumulations of dust, scraps, waste,
oil, grease, weld spatter, insulation, paint and other foreign substances.
Surfaces damaged by deposits of insulation, concrete, paint, weld metal, or
other adhering materials shall be restored by the Contractor.
In the event of conflict between Contractors concerning cleaning responsibilities,

the Owner will determine the responsibility and assign the work. The Owner's
decision will be final and binding and the responsible Contractor shall promptly
perform the disputed work.
In the event that the Contractor fails to comply with the cleanliness requirement
specified herein or to perform the clean-up work assigned to him by the Owner,
the Owner will reserve the right to hire another Contractor (not necessarily one
of the construction Contractors) to perform the necessary cleaning work and the
Contractor shall reimburse the Owner for the cost of all such clean-up work.
LABOUR
The Contractor shall make arrangements for the engagement of all labour, local
or otherwise and for the transport, housing, feeding and payment thereof.
The Contractor shall not, otherwise than in accordance with the statutes,
ordinances and government regulations or orders for the time being in force,
import, sell, give, barter or otherwise dispose of any alcoholic liquor or
hallucinating drugs or permit or suffer any such importation, sale, gift, barter or
disposal by his sub Contractor, agents or Owners.
The Contractor shall not give, barter, or otherwise dispose of to any person or
persons any arms or ammunition of any kind or permit or suffer the same
aforesaid.
The Contractor shall in all dealings with labour in his employ have due regard to
all recognised festivals, days of rest and religious or other customs.
In the event of any outbreak of illness of any epidemic nature the Contractor
shall comply with and carry out such regulations, orders and requirements as
may be made by the government or the local medical or sanitary authorities for
the purpose of dealing with and overcoming the same.
The Contractor shall at all times take all reasonable precautions to prevent any
unlawful, riotous or disorderly conduct by or amongst his Owners and for the
preservation of peace and protection of persons and property in the
neighbourhood of the Works against the same.
BOOK I
The Contractor shall be responsible for observance by his sub Contractors of

the foregoing provisions.
RATES OF PAY AND WORKING HOURS
The Contractor shall pay labour at the rates of pay not less than those
established by the authorities having jurisdiction in the place where the Work is
to be carried out, and shall comply with any regulations issued by such
authorities from time to time regarding working hours and conditions and other
legislation governing employment of labour.
REPORTS REGARDING LABOUR
The Contractor shall deliver to the Owner at his registered office a weekly return
in detail and in such form as the Owner may prescribe showing the supervisory
staff and the numbers of the several classes of labour from time to time
employed by the Contractor on the Site and such information with respect to
Construction Equipment/ Plant as the Owner may require.
WARRANTY
Without prejudice to what is laid down in general Law regarding hidden defects,
the Contractor shall guarantee that the Works under the Contract will be free
from any defects in design (other than a design made, furnished or specified by
the Owner), material or workmanship and will conform with the requirements of
the Contract notwithstanding the fact that the Owner any other independent
inspector authorized by the Owner may have inspected and/or accepted the
equipment and/or materials.
The warranty period shall starts from the date stated in the Taking-Over
Certificate for the Unit and shall expire after twelve (12) months from that date.
If the issue of the Taking-Over Certificate is delayed for reasons beyond the
control of the Owner and/or the Contractor, then the matter shall be discussed
by both parties to fix the date of commencement of the warranty period.
In case urgent replacement or repair is required, the Owner may, with the
Contractor's agreement replace or carry out such work and all cost for the work
carried out by the Owner on behalf of the Contractor will be reimbursed by the
Contractor.
The Goods supplied under this Contract shall conform to the standards
mentioned in the Technical Specifications, and, when no applicable standard is
mentioned, to the authoritative standard appropriate to the Goods country of
origin and such standards shall be the latest issued by the concerned institution.
The Contractor shall be responsible for the import of replacement parts and
equipment, and for the re-export of the defective parts and equipment at the
same conditions concerning taxes, duties, and levies as governed the original
supply for those components. To this effect, the letter of credit and reference
numbers will have a validity extending until the end of the warranty period. The
Owner will assist the Contractor as appropriate.

BOOK I
The warranty period of refurbished and/or replaced equipment and/or material

shall continue until twelve (12) months after the date of such refurbishment
and/or replacement.
For replaced and repaired parts, the Warranty shall be in accordance with
clause 2.34 paragraph 6.
In case a defect is due to conceptual design or construction, the Contractor at

his own cost shall replace or modify the portion of the corresponding unit and all
other identical portions of other units, although the default in those units may not
yet have taken place or been proven but is expected to occur.
The Contractor shall guarantee that the materials and workmanship

incorporated into the Works are new and totally in accordance with the Contract
(as it may be amended) for the purpose Specified and that items will be free
from defects in design, workmanship and materials, and that the Plant will
operate successfully at the capacities Specified under the Contract up to and
including the maximum specified load without undue stress, heating, straining of
parts, wear and vibration, and that an ample factor of safety is included in every
design.
The above guarantee of the Contractor does not apply to products which
normally wear out during service or which have a limited durability due to normal
wear and tear and such durability is shorter than the period of warranty. To
secure the proper functioning of the Works, the Owner will maintain and operate
the Plant strictly in accordance with the regulations and/or instructions as laid
down in the respective instruction manuals. To this effect, the Owner will keep
records of operation and maintenance in the form of log-sheets during the
warranty period, submitting copies thereof of the Contractor upon his specific
request to do so.
The Plant to be supplied and all Works to be done under the Contract shall be
designed, manufactured, delivered, erected, tested, warranted, maintained and
inspected in the manner set out in the Specification or, where not so set out, to
the satisfaction of the Owner, and all the Works on Site shall be carried out in
accordance with such directions as the Owner may give.
Some of the equipment and materials to be supplied under the Contract are
specified by the use of brand names to indicate the required level of quality and
suitability. The Contractor may propose alternative equipment and materials
provided he can satisfactorily demonstrate to the Owner the acceptability of
such alternatives.
In case of a guarantee claim, the Owner and Contractor together shall determine
whether the manner of operation has affected the functioning of the Plant and
the possible impact thereof on the guarantee obligations of Contractor. Repair
by the Contractor however shall be effected as soon as possible to secure
continuous operation of the Plant without waiting for the final conclusion
between the Owner and the Contractor.
During the warranty period, the Contractor shall have the right of access, at all
reasonable working hours, at his own risk and expense, by himself or his duly
authorized representatives (whose names shall have previously been

BOOK I
communicated in writing to the Owner), to all parts of the Works for the purpose
of inspecting the workings thereof and shall have access to the records of the
Works and performance thereof for the purpose of inspecting the same and
taking notes there from.
Subject to the Owner approval, which shall not be unreasonably withheld, the
Contractor may at his own risk and expense make any tests which he considers
desirable.
In case a failure of the equipment due to Contractor's fault (mechanical or

electrical) occurs the causes of which are in the equipment supplied during the
original warranty period leading to a stoppage of the generating set for more
than one (1) calendar month from the date the Contractor has been informed,
the following consequences shall take place :
- The Contractor shall replace defective parts and to effect a repair as fast as
possible.
- A new warranty period equal to twelve (12) months shall be applied to the
replaced parts of major components, starting from the date the generating
set is ready to run.
- The original warranty period on the concerned generating set which is
interrupted by this procedure shall be extended by a period equal to the
period during which the generating set is out of order as a result of the
defect.
- The performance Bond/Bank Guarantee shall be extended accordingly and
submitted to the Owner.
The Contractor shall not have any liability regarding defects beyond the
obligation to repair and/or replace the defective part(s) at its own cost.
INSPECTIONS AND TESTS
The Owner or his appointed representative will be entitled at all times to inspect,
examine and test on the Contractor's premises the materials and workmanship
of all Plant to be supplied under the Contract, and if part of the said Plant is
being manufactured on other premises the Contractor shall obtain for the Owner
permission to inspect, examine and test as if the said Plant were being
manufactured on the Contractor’s premises. Such inspection, examination or
testing, if made, shall not release the Contractor from any obligation under the
Contract. Notification of Shop Test to be witnessed by the Owner shall be given
by the Contractor at least thirty (30) days before the said test date.
With regard to the first paragraph, for such parts of the Plant which is part of
Contractor's standard stock type production, it may be that inspection of such
parts of the Plant or materials and witnessing of shop tests are already carried
out by Lloyds or equivalent surveyor according to the Contractor's practice
hence retesting of materials or such parts of the Plant may not be necessary.
The Contractor shall co-operate with and provide full opportunity to the Owner to
monitor regularly the progress of manufacture in the Works of the Contractor
and his sub Contractors to the detailed extent necessary to satisfy progress
relative to the Contract Schedule.

BOOK I
All pertinent information such as shop loading, detailed manufacturing programs

to enable the Owner to determine the adequacy of the advance planning for
material procurement, machine and manpower resources to meet the Contract
Schedule shall be made freely available to the Owner's representative when
visiting the manufacturing facilities.
These requirements shall be incorporated in orders placed with major sub-

suppliers. The Contractor shall fully comply with all requirements of Part 4,
Clause 4.3.7.8.
Where the Contract provides for tests on the premises of the Contractor or of
any sub Contractor the Contractor shall provide at no extra cost such
assistance, labour, materials, electricity, fuel, stores, apparatus and instruments
as may be requisite and as may be reasonably demanded to carry out such
tests efficiently.
The Contractor shall give the Owner at least ten (10) working days prior notice in
writing when packing will be carried out prior to ex-works dispatch for shipping.
A representative of the Owner shall carry out the inspection and approval before
dispatch at the place of manufacturing. The release for shipment shall not
constitute acceptance of the Goods on equipment nor relieve the Contractor
from any obligation to perform the work strictly in accordance with the Contract.
OWNER'S ACCESS TO WORKS
The Owner and any person authorized by him will at all times have access to the
Works at Site and to all workshops and places where Plant is being prepared or
whence materials, manufactured articles or machinery are being obtained for the
Works and the Contractor shall afford every facility for and every assistance in
assuring the right to such access.
EXAMINATION OF WORK BEFORE COVERING UP
No work or Works shall be covered up or put out of view without the approval of
the Owner and the Contractor shall afford full opportunity for the Owner to
examine and measure any work which is about to be covered up or put out of
view. The Contractor shall give due notice to the Owner whenever any such
work is ready or about to be ready for examination and the Owner will without
unreasonable delay, unless he considers it unnecessary and advises the
Contractor accordingly, attend for the purpose of examining and measuring such
work.
If any such work is covered up without the prior approval of the Owner, the
Contractor shall uncover any part or parts of the said works as the Owner may
from time to time direct and shall reinstate and make good such part or parts to
the satisfaction of the Owner at no extra cost to the Owner.
REJECTION
If at any time before the Works are taken over, the Owner decides that any Work
done or Plant supplied including materials/equipments used by the Contractor or
any sub Contractor is or are defective or not in accordance with the Contract or
that the Works or any portion thereof is defective or does not meet the

BOOK I
requirements set out under the Contract (all such matters being hereinafter in
this Clause called ‘defects’), the Owner:
- Will give to the Contractor notice in writing of the said decision, specifying
particulars of the defects alleged and of where the same are alleged to exist
or to have occurred, and
- Will so far as may be necessary place the Works at the Contractor's

disposal; then the Contractor shall with all speed and, except as provided in
Clause 2.53 (Delivery) herein at his own risk and expense make good the
defects so specified.
In case the Contractor shall fail to do so the Owner in addition to his other rights
hereunder may take at the risk and the cost of the Contractor such steps as may
in all circumstances be practicable to make good such defects.
The Contractor shall be entitled to remove and retain all works that the Owner
may have replaced at the Contractor's cost.
Nothing contained in this clause will affect any claim by the Owner under
Clause 2.46 (Liquidated Damages) herein.
SUSPENSION OF WORK
Upon written notice by the Owner to Contractor, all or any portion of Works to be
performed under the Contract may be suspended at any time. Upon receipt of
such notice, Contractor shall, unless the notice requires otherwise:
- Immediately discontinue Works on the date and to the extent specified in the
notice;
- Place no further orders to subcontracts for material, services, or facilities
with respect to suspended Works other than to the extent required in the
notice;
- Promptly make every reasonable effort to provide suspension status upon
terms satisfactory to the Owner of all orders, subcontracts, and rental
agreements to the extent they relate to performance of suspended Work;
- During such suspensions, continue to protect and maintain the Works
including those portions on which work has been suspended; and
- Take any other reasonable steps to minimise costs associated with such
suspension.
As full compensation for such suspension, Contractor will be reimbursed for the
following costs, reasonably incurred, without duplication of any item, to the
extent that such costs directly result from such suspension of Works, providing
that Contractor will not be paid any profit thereon
- A standby charge sufficient to compensate Contractor for keeping, to the

extent required in the suspension notice, his organization and equipment
committed to the Works on a standby basis;
- All reasonable costs associated with approved mobilization and
demobilization of Contractor's plant, forces, and equipment; and
- An equitable amount to reimburse Contractor for the cost of maintaining and

protecting that portion of Work upon which performance has been
suspended.
Sub-Contractors claims are included in the Contractor's claims.
BOOK I
Upon receipt of notice to resume suspended work, Contractor shall immediately

resume performance under the Contract to the extent required in the notice. If
Contractor intends to assert a claim for equitable adjustment under this Article,
he shall, within 30 (thirty) calendar days after receipt of notice to resume work,
submit to the Owner a Notice of Claim stating forth the schedule impact and
monetary extent of such claims in sufficient detail to permit a thorough analysis.
No adjustment will be made for any suspension to the extent that performance
was suspended or delayed by virtue of the acts or omissions of Contractor.
The Contractor shall be entitled to declare the Contract terminated under the
terms of Clause 2.50, if the suspensions in total are more than 9 (nine) months.
COMMENCEMENT OF THE WORKS
The Contractor shall proceed with the Works with due expedition and without
delay in accordance with the provisions of the Contract Schedule except as may
be expressly authorized or ordered by the Owner. Time is of the essence in the
execution of this Contract.
The Contractor shall commence the Works upon timing date after the Contract
effective date, as stipulated in Part 1 Clause 1.29, is achieved in order to fulfil
the schedule of commercial operation as specified in Part 5, Schedule 4.
The Contractor shall not claim any commercial implication in case the L/C
opening is delayed due to circumstances beyond the control of the Owner and
the Contractor. In such a case, both parties will only discuss and mutually agree
on the project schedule implication, if any.
ALLOCATION OF SITE
The Owner will upon commencement of the Works allocate to the Contractor so much
of the Site as required to enable the Contractor to commence and proceed with
the construction of the Works in accordance with the Contract Schedule.
Access to and allocation of the Site shall not be exclusive to the Contractor but only
such as shall enable him to execute the Works. The Contractor shall afford to
the Owner, and to other Contractors engaged upon the Site every reasonable
facility for the execution of work concurrently with his own.
The Owner will not permit any extension of time for completion or any extra cost that
the Contractor may incur as a result of; the requirement to share the allocated
Site with other Contractors; or as a result or access to the allocated Site from all
directions not being available, or if the allocated Site is deemed by the Owner to
be suitable for the Contractor to perform his Work.
The timing of allocation of Site shall be as per the agreement in Part 5, Schedule 4 -
Contract Schedule key dates.
TIME FOR COMPLETION
The time for completion shall be in accordance with the contract schedule specified
under Part 5, Schedule 4.

BOOK I
EXTENSION OF TIME FOR COMPLETION
Should the Contractor be delayed in the final completion of the Works due to causes
as listed in clause 2.19 - Force Majeure, then an extension of time as
determined by the Owner, will be granted by the Owner, provided, however, that
the Contractor has within fourteen (14) days after the occurrence of such event
given to the Owner full and detailed particulars of any claim for extension of time
to which he may consider himself entitled and has demonstrated that he has
used all reasonable means to minimize the delay. Any such extension shall not
exceed the total delay in performance of the Work and shall take into account
the ability of the Contractor to reschedule activities to minimize or eliminate
delays in the final completion of the Works notwithstanding delays to certain
portions of the work.
No claim for extension of time will be allowed on account of failure on part of

Owner to furnish drawings, which drawings the Owner is required to furnish
under the Contract, until fourteen (14) Days after demand for such drawings and
not then unless such claim can justify that the Contractor’s Work has been
delayed by such late delivery.
Extensions of time will not be granted for delays caused by unfavourable

weather, unsuitable ground condition, inadequate construction force, the failure
of the Contractor to place orders for equipment or materials sufficiently in
advance to ensure delivery when needed, deficiencies in the performance of its
suppliers or sub Contractors or delays in shipment or discharge.
Should any circumstance beyond the control of the Owner prevent or delay his
performance hereunder, the Owner shall notify the Contractor thereof within
fourteen (14) days after its occurrence and time for the Owner's performance
shall be appropriately extended.
NIGHT, SUNDAY OR HOLIDAY WORK ON SITE
Subject to any provision to the contrary contained in the Contract none of the
Work shall except as hereinafter provided be carried on after 18.00 hours or on
Sundays or on statutory holidays without the permission in writing of the Owner
except when the work is unavoidable or absolutely necessary for the saving of
life or property or for the safety of the Works in which case the Contractor shall
immediately advise the Owner. Provided always that the provisions of this
Clause shall not be applicable in the case of any work which is customary to
carry out by rotary or double shifts.
Night work and work on holidays shall be required for this project due to the tight
construction schedule. However, the Contractor shall request Official permits
from the Owner when such overtime work is necessary.
RATE OF PROGRESS
The whole of the materials, Plant and labour to be provided by the Contractor
under the Contract and the mode, manner and speed of execution of the Works
shall be of a kind and conducted in a manner to the satisfaction of the Owner.
If the rate of progress of the Works or any part thereof is at any time in the
opinion of the Owner too slow to ensure the completion of the Works by the
BOOK I
prescribed time, the Owner will so notify the Contractor in writing and the
Contractor shall thereupon take such steps as shall be necessary and
acceptable to the Owner to expedite progress so as to complete the Works by
the prescribed time or extended time. The Contractor shall not be entitled to any
additional payment for taking such steps. Failure by the Contractor to take
appropriate action to ensure timely completion shall be deemed a material
breach of Contract.
If as a result of any notice given by the Owner under this Contract, the
Contractor shall seek the Owner's permission to do any work at night or on
Sundays; such permission shall not be unreasonably refused.
LIQUIDATED DAMAGES
GENERAL
Liquidated damages shall be assessed against the Contractor should the

Contractor fail to perform certain contractual obligations as hereinafter specified.
Such damages shall be assessed as stipulated liquidated damages and not as a
penalty.
In the event that liquidated damages are assessed against Contractor the
liquidated damages will not be deducted from any invoice. However, processing
of the invoice will be suspended until after Contractor makes payment of the
liquidated damages amount to the Owner.
In the event that liquidated damages are assessed by the Owner, which
assessment shall be in US Dollars, the costs claimed through the Contract may
be in US Dollars or the currency or currencies of the Contract. In payment of the
liquidated damages, the application of the exchange rate shall be those issued
by the Bank of Indonesia at the date of the completion of the performance test.
These liquidated damages shall be in full satisfaction of the Contractor's liability

with regard to failure in performance or delivery.
COMPLETION OF KEY DATE OBLIGATIONS
If the Contractor shall fail to carry out his obligations under the Contract by the
respective Key Dates which are subject to liquidated damages, as specified in
Part 5, Schedule 4, or such extensions thereto as may be granted by the Owner
pursuant to the provisions of Clause 2.43 (Extension of Time for Completion)
herein, the Contractor shall be liable to pay to the Owner liquidated damages in
accordance with and at the rates specified in Part 3, Clause 3.4.1.
PERFORMANCE OBLIGATIONS
Should a Unit of the Plant furnished by the Contractor fail to meet the specific
performance guarantee stipulated in the Contract Document, then the
Contractor shall be liable to pay to the Owner liquidated damages in accordance
with as specified in Part 3, Clause 3.4.2.
VARIATIONS
The Contractor shall not alter any of the Works, except as directed in writing by
the Owner, but the Owner will have full power from time to time during the
execution of the Contract by notice in writing to direct the Contractor to alter,
amend, omit, add to, or otherwise vary any of the Works and the Contractor
BOOK I
shall carry out such variations and be bound by the same conditions, so far as
applicable, as though the said variations were stated in the Contract.
The Contractor shall carry out minor variations that do not significantly affect the
scope of Work or are otherwise defined in the Specification, without any change
to the Contract Price. In any case in which the Contractor has received any
such direction from the Owner which either then or later will, in the opinion of the
Contractor, involve an increase or decrease in the Contract Price, the Contractor
shall within fourteen (14) days, advise the details of work involved and changes
to the Contract Price or/and time to the Owner in writing to that effect.
The difference in cost to the Owner, if any, occasioned by any such variations
shall be added to or deducted from the Contract Price as the case may require.
The amount of such difference shall be ascertained and mutually agreed to by

negotiations between the Owner and the Contractor.
Should the Owner make any such variations in any part of the Works, such
reasonable notice in writing will be given to the Contractor as will enable him to
make his arrangements accordingly, and in cases where Plant is already
manufactured or in course of manufacture, or any matter done or drawings or
patterns made that require to be altered, a reasonable sum in respect thereof
will be allowed by the Owner. If in the opinion of the Contractor any such
variation is likely to prevent or prejudice the Contractor from fulfilling any of his
obligations under the Contract, he shall immediately notify the Owner thereof in
writing, and the Owner will decide forthwith whether or not the same shall be
carried out. If the Owner confirms his instructions in writing, the said obligations
shall be modified to such an extent as may be justified. Until the Owner so
confirms his instructions they shall be deemed not to have been given.
The procedures for variations shall be agreed to after the signing on the
contract.
FORFEITURE
If the Contractor:
Shall become bankrupt or shall have a receiving order made against him or shall
present his petition in bankruptcy or shall make an arrangement with or
assignment in favour of his creditors or shall agree to carry out the Contract
under a committee of inspection of his creditors or (being a corporation) shall go
into liquidation (other than a voluntary liquidation for the purpose of
amalgamation or reconstruction), or
Shall assign the Contract without first obtaining the consent in writing of the
Owner, or
Shall have a lien on his goods, or
Has in the Owner's opinion abandoned the Contract, or
Without reasonable excuse has failed to commence the Works or has

suspended the progress of the Works for fourteen (14) Days after receiving from
the Owner written notice to proceed, or

BOOK I
Has failed to remove materials from the Site or to pull down and replace work for
fourteen (14) Days after receiving from the Owner written notice that the said
materials or work has been condemned and rejected by the Owner under these
conditions, or
The Owner may take over the work out of the hands of Contractor if the
Contractor is persistently neglecting to carry out its obligations under the
Contract, in executing the works, or
Has sublet any part of the Contract except as otherwise provided herein, then
the Owner may after giving fourteen (14) Days notice in writing to the Contractor
(provided that no notice shall be required in the event of termination under
clause 50) enter upon the Site and the Works and expel the Contractor there
from without thereby voiding the Contract or releasing the Contractor from any
of his obligations or liabilities under the Contract or affecting the rights and
powers conferred an the Owner by the Contract and may himself complete the
Works or may employ any other Contractor to complete the Works and the
Owner or such other Contractor may use for such completion all of the
Construction Equipment/ Plant, Temporary Works and materials which have
been deemed to be reserved exclusively for the construction and completion of
the Works under the provisions of the Contract and the Owner may at any time
sell any of the said Construction Equipment/ Plant, Temporary Works and
unused materials and apply the proceeds of sale in or towards the satisfaction
of any sums due or which may become due to him from the Contractor under
the Contract.
The Contractor shall continue to be liable for the performance of Work partially
or fully completed. The Contractor shall compensate the Owner in respect of all
loss or damage suffered by the Owner on account of any of the foregoing
defaults by the Contractor.
The Owner will as soon as may be practicable after any such entry and
expulsion by the Owner determine what amount (if any) has at the time of such
entry and expulsion been reasonably earned by or would reasonably accrue to
the Contractor in respect of work then actually done by him under the Contract
and what was the value of any of the said unused or partially used materials and
Construction Equipment/ Plant and any Temporary Works.
If the Owner enters and expels the Contractor under this Clause he will not be
liable to pay to the Contractor any money on account of the Contract until the
expiration of the last Warranty Period and thereafter until the costs of
completion, damages for delay in completion (if any) and all other expenses
incurred by the Owner have been ascertained and the amount thereof certified
by the Owner. The Contractor shall then be entitled to receive only such sum or
sums (if any) which are due to him upon due completion by him after deducting
the said amount. However if such amount shall exceed the sum which would
have been payable to the Contractor on due completion by him then the
Contractor shall upon demand pay to the Owner the amount of such excess and
it shall be deemed a debt due by the Contractor to the Owner and shall be
recoverable accordingly.
URGENT REPAIRS
If by reason of any accident or failure or other event occurring to, in, or in

connection with the Works or any part thereof either during the execution of the
Works or during the Warranty Period any remedial or other work or repair shall
in the opinion of the Owner be urgently necessary for security and the
BOOK I
Contractor is unable or unwilling to take action at once to do such work or repair

the Owner may by his own or other workmen do such work, or repair as may be
considered necessary. Unless the work or repair so done by the Owner is not
work which the Contractor was liable to do at his own expense under the
Contract all costs and charges properly incurred by the Owner in so doing shall
on demand be paid by the Contractor to the Owner or may be deducted by the
Owner from any monies due or which may become due to the Contractor.
Provided always that the Owner will as soon after the occurrence of any such
emergency as may be reasonably practicable notify the Contractor thereof in
writing.
TERMINATION FOR CONVENIENCE OF THE OWNER
The Owner reserves the right to terminate and cancel this Contract in whole or in
part at any time by written notice to the Contractor. Unless and until such notice
of termination has been received, and acknowledged by the Contractor, the
Contractor shall use his best endeavours to complete the execution of the
Works in accordance with the requirements of the Contract.
Upon receipt by the Contractor of such notice of termination the Contract shall
immediately terminate but without prejudice to the rights of either party in
respect of any antecedent breach thereof.
If the Contract shall be terminated as aforesaid the Contractor will be paid by the
Owner in so far as such amounts or items shall not have already been covered
by payments on account made to the Contractor, for all work executed prior to
the date of termination as provided in the Contract, including:
- The amounts payable in respect of any preliminary items so far as the work
or service comprised therein has been carried out or performed and a proper
proportion as certified by the Owner of any such items of the work or service
which has been partially carried out or performed, and
- The cost of materials or goods reasonably ordered for the Works or

Temporary Works which shall have been delivered to the Contractor or of
which the Contractor is legally liable to accept delivery, such materials or
goods becoming the property of the Owner upon such payment being made
by him, and
- A sum to be certified by the Owner being the amount of any expenditure

reasonably incurred by the Contractor in the expectation of completing the
whole of the Works in so far as such expenditure shall not have been
covered by the payment in the sub-items before mentioned, and
- The reasonable cost of removal of all the Contractor's Construction

Equipment/ Plant from the Site and its return to the Contractor's works in his
home country or to another destination at no greater cost, and
- The reasonable cost of repatriation of all the Contractor's staff and workmen
employed on or in connection with the Works at the time of such termination
in so far as such cost has not otherwise been provided for.
The Owner shall give notice to the Lender (Bank) and allow the Lender, an
opportunity to discuss the implications of such termination prior to its
effectiveness.

BOOK I
Provided always that against any payment due from the Owner under this
clause the Owner will be entitled to be credited with any outstanding balances
due from the Contractor for advances in respect of Plant and materials and any
sum previously paid by the Owner to the Contractor in respect of the execution
of the Works.
SETTLEMENT OF DISPUTES
If any dispute or difference relating to technical matters or interpretation of the

Contract shall arise between the Owner and the Contractor in connection with or
arising out of the Contract or the carrying out of the Works, whether during the
progress of the Works or after their completion and whether before or after the
termination abandonment or breach of the Contract, which cannot be settled by
agreement between the parties to the dispute, such dispute or difference shall
be submitted to arbitration as hereinafter provided.
The arbitration will be conducted in accordance with the Rules of Conciliation

and Arbitration of the International Chamber of Commerce, Paris.
Within sixty (60) Days from the date of failure to reach agreement as
established by written notice by either party to the dispute to the other, each
party to the dispute shall appoint an arbitrator. If the two arbitrators thus
appointed fail to agree upon a decision and award within thirty (30) Days of the
date of appointment of the second arbitrator, they shall select a third arbitrator
by agreement within five (5) Days of such failure to agree upon an award. If
either party to the dispute fails to appoint an arbitrator within the allocated time,
or if the two arbitrators cannot agree upon a third arbitrator within the said five
(5) Days, then the parties to the dispute, or either of them, shall apply to the
Court of Arbitration of the International Chamber of Commerce, 2 Rue De
Viarmes 75001 Paris, France tel. : 45083920, fax : (42) 230823 for the
appointment which has not been made as stated.
The decision shall be by majority vote of the arbitrators and shall be final,
conclusive, and binding upon the parties thereto. Each party shall bear the cost
of its appointed arbitrator. The cost of the third arbitrator if one be appointed,
shall be borne by the parties as the arbitrators may determine.
All arbitration proceedings shall be conducted in Jakarta, Indonesia and in

accordance with Indonesian law. Reference to arbitration shall be a condition
precedent to any other action of law.
The Owner will have the right to institute suit in any court of competent
jurisdiction to enforce any decision or award rendered in arbitration proceedings.
The Contractor shall continue to execute the Works with due diligence in
accordance with the Owner's instructions during any arbitration proceedings. It
is understood and agreed by the parties to the Contract that no requirement or
statement herein shall be interpreted as curtailing the power of the Owner to
determine the amount, quality and acceptability of Works and materials.
BRIBERY AND CORRUPTION
The Contractor shall not give or promise any person or organization- any money,
goods or services that are by way of a bribe or that have been given or
promised for any corrupt reason.

BOOK I
Nothing in this Contract will render the Owner liable to reimburse the Contractor
for any such considerations given or promised.
DELIVERY
2.1.11 No Contractor's equipment shall be delivered to the Site until intimation in writing
has been applied for and obtained by the Contractor from the Owner that
delivery may be made.
Plant shall be delivered to the Site only upon approval from the Owner.
The Contractor shall be responsible for customs clearance, transportation to and

reception on the Site of all Plant and Contractor's equipment delivered for the
purpose of the Contract. The Owner shall receive an application for a request for
approval in thirty (30) days prior to shipment. Should the approval from the
Owner not have been received two (2) weeks prior to shipment, the Contractor
shall be entitled to proceed with shipment provided the other contractual
obligations connected herewith have been fulfilled.
2.1.12 DEFINITIONS FOR THE PURPOSE OF CLAUSE 2.53 ONLY
'Delayed Plant' means:
Plant which by delay or failure on the part of the Owner to give such approval as
is mentioned in Sub clause 2.53.1 of this Clause or from any cause for which the
Owner or some other Contractor employed by him is responsible, the Contractor
is prevented from delivering to the Site at the time specified for the delivery
thereof or, if no time is specified, at the time when it is reasonable for it to be
delivered having regard to the date by which the Works ought to be completed,
or
Plant which has been delivered to the Site but which by delay or failure on the
part of the Owner or from any cause for which the Owner is responsible the
Contractor is for the time being prevented from erecting.
'The normal delivery date' means the time when but for such delay, failure or
other cause as aforesaid Delayed Plant would have been delivered to the Site.
'Notice to proceed' means notice in writing from the Owner to the Contractor that
Delayed Plant may forthwith be delivered to the Site or (as the case may be)
erected.
2.1.13 If Delayed Plant is ready for delivery and has been suitably and sufficiently
marked as appropriate to the Contract and the Contractor has given to the
Owner an opportunity of inspecting it or if Delayed Plant has been delivered to
the Site the Contractor may give notice in writing to the Owner requiring that the
provision of Sub clause 2.53.4 of this Clause shall have effect with respect to
such Delayed Plant after thirty (30) Days of submission of notice.
2.1.14 Where notice has been given in accordance with Sub clause 2.53.3 of this
Clause.
There shall be added to the Contract Price the reasonable additional expense
incurred in storing and taking reasonable measures to protect and preserve the
Delayed Plant from and insuring it against loss, deterioration and damage
however caused from the expiry date of the said notice or the normal delivery
BOOK I
date if this shall be later until the Contractor shall no longer be prevented from
delivering the Delayed Plant or (as the case may be) erecting it or shall be
relieved of responsibility therefore under Sub clause 2.53.5 herein whichever
shall first happen. Such expenses shall include storage charges, handling
charges, insurance, and transportation charges to the storage facility. In the
event storage is necessary, the Contractor shall be guided by the Owner's
instructions in respect of delivery to Site in accordance with the terms of the
Contract.
If at the expiration of six (6) months from the normal delivery date or from the
expiry date of the said notice (whichever shall be the later) the Contractor shall
still be prevented by the Owner from delivering the Delayed Plant to the Site or
(as the case may be) from erecting it the Owner will on the application of the
Contractor, certify accordingly and within thirty (30) Days from the presentation
of such certificate the Contractor shall be entitled to be paid ninety (90) percent
of the value of the Delayed Plant less any sum previously paid to him in respect
thereof.
If at any time after the expiration of twelve (12) Months from the expiry date of
the said notice the Contractor may by a further notice in writing expiring thirty
(30) Days after receipt thereof by the Owner require the Owner to assume
responsibility for storing, protecting and preserving the Delayed Plant and upon
the expiration of the last mentioned notice the Owner will assume responsibility
for storing and insuring the Delayed Plant provided always that if notice to
proceed shall be given within thirty (30) Days after receipt of the last mentioned
notice given by the Contractor this paragraph of this Sub clause shall not
operate.
Without prejudice to the provisions of Clause 2.59 (Defects after Taking Over),
the obligations of the Contractor under that Clause with respect to Delayed Plant
shall not apply to any defect that may develop therein after elapsement of three
(3) years from the expiry date of the said notice referred to in Sub clause 2.53.3
herein or the normal delivery date if this shall be later.
2.1.15 If at any time the Owner assumes responsibility for storing and insuring Delayed
Plant whether pursuant to Sub clause 2.53.4 paragraph 3 or otherwise the
Contractor shall thereupon be relieved of any responsibility for the Delayed
Plant until either the expiration of thirty (30) Days after the receipt of a notice to
proceed or the Contractor having received the notice to proceed resumes
possession of the said plant whichever shall first occur.
2.1.16 After receipt of notice to proceed the Contractor, if he has been relieved of
responsibility under Sub clause 2.53.5 of this Clause, shall (and in any other
case may) after due notice in writing to the Owner and if required by the Owner
in his presence examine the Delayed Plant and any plant on the Site that has
been erected but not taken over under Clause 2.58 (Taking Over) by reason of
delay in the delivery or erection of the Delayed Plant, and make good any
deterioration or defect therein that may have developed or loss thereof that may
have occurred after the normal delivery date or (if later) the date when the
Contractor was by such delay failure or other cause as before mentioned first
prevented from erecting the Delayed Plant.
2.1.17 There shall be added to the Contract Price any reasonable expense to which the
Contractor may be put in making the examination referred to in Sub clause
2.53.6 of this Clause or in making good any deterioration, defect or loss as
therein mentioned except in so far as the same was caused by faulty
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workmanship or materials or by the Contractor's failure to take the measure

referred to in Sub clause 2.53.4 paragraph 1 of this Clause or in Clauses 2.20
(Damage Contractor's Insurance). Any reasonable expense to which the
Contractor may be put in delivering the Delayed Plant to the Site or in erecting
the same or any other plant or in performing his obligations under Clause 2.59
(Defects after Taking Over) which would not have been incurred had the delivery
or erection of the Delayed Plant not been prevented as aforesaid shall also be
added to the Contract Price.
VESTING OF PLANT
Title to the Plant and Permanent Works shall pass to the Owner upon the earlier
of
- Delivery pursuant to the Contract or

- Payment with respect thereto.
Transfer of title shall not be construed to mean an acceptance of Plant and

Permanent Works and shall not relieve the Contractor from responsibility for risk
of loss as provided herein.
The Contractor hereby agrees to take all necessary action and provide whatever
documentation is requested by the Owner's interest in the Plant and Permanent
works and to evidence the transfer of title to the Owner. The Contractor shall
keep same free from any liens, claims or encumbrances.
All Construction Equipment/Plant shall, on being brought upon the Site for the
purpose of the Works, vest in and become the property of the Owner, and shall
be used solely for the purpose of the Works and shall not be taken away by the
Contractor while it is required on the Site for the purpose of the Works without
the permission in writing of the Owner and the Contractor shall be liable for the
loss or destruction thereof or damage thereto which may happen. If there shall
be due, owing or accruing to the Owner from the Contractor any monies under
or in respect of the Contract, of which the Owner shall be unable to obtain
payment, the Owner will be at liberty at the cost of the Contractor to sell
and dispose of any Construction Equipment/ Plant as he shall think fit and to
apply the proceeds in or towards the satisfaction of such monies as aforesaid.
Subject to the foregoing the property in any Construction Equipment/Plant shall
revert to the Contractor on being properly removed from the Site or on
completion of the Works or on the termination of the Contract whichever may be
the earliest.
OWNER'S SUPERVISION
All instructions and orders to the Contractor will, except as herein otherwise
provided, be given by the Owner or his delegated representative.
OWNER'S DECISION
Notwithstanding the existence of an outstanding matter or dispute between the

Owner and the Contractor, the Contractor shall proceed with the Works in
accordance with decisions, instructions and orders given by the Owner in
accordance with these conditions, provided always that:

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- If the Contractor, without undue delay after being given any decision,
instruction or order otherwise than in writing, requires it to be confirmed in
writing, such decision, instruction, or order shall not be effective until written
confirmation thereof has been received by the Contractor, and
- If the Contractor, by written notice to the Owner within fourteen (14) Days
after receiving any decision, instruction, or order of the Owner in writing or
written confirmation thereof, intimates that he disputes or questions the
decision, instruction, or order, giving his reasons for so doing, either party
shall be at liberty to refer the matter to arbitration pursuant to Clause 2.51
(Settlement of Disputes), but such an intimation shall not relieve the
Contractor of his obligation to proceed with the Works in accordance with the
decision, instruction or order in respect of which the intimation has been
given.
Notwithstanding the foregoing, the Contractor is an independent Contractor

under the Contract and shall not be deemed an agent of the Owner for any
purpose.
TESTS ON COMPLETION AT SITE
The Contractor shall give to the Owner timely notice in writing of the date after
which he will be ready to make the tests on completion which may be Individual
Tests or Performance Tests as specified in Part 4, Sub-clause 4.3.6.5.3. Unless
otherwise agreed, the tests shall take place within 10 Days after said date, on
such day or days as the Owner shall in writing notify the Contractor.
Except as otherwise specified, laboratory testing required by the Specification

shall be done by an independent testing laboratory retained by the Contractor
and acceptable to the Owner.
If, in the opinion of the Owner, these tests are being unduly delayed, he may by
notice in writing call upon the Contractor to make such tests within ten (10) Days
from the receipt of the said notice and the Contractor shall make the said tests
on such day within the said ten (10) Days as the Contractor may fix and of which
he shall give the notice to the Owner. If the Contractor fails to make such tests
within the time aforesaid the Owner may himself proceed to make the tests. All
tests so made by the Owner will be at the risk and expense of the Contractor.
The Owner, except where otherwise specified, will provide free of charge,
subject to the provisions of this Clause, high voltage electricity and coal as may
be required and as may be reasonably demanded to carry out such tests
efficiently. All labour, materials, test or start-up Spare-parts, lubricants, water,
chemicals, stores and apparatus as may be required to perform the tests shall
be provided by the Contractor.
If any portion of the Works fails to pass the tests, tests of the said portion shall
be repeated within a reasonable time upon the same terms and conditions,
except that all reasonable costs and expenses to which the Owner may be put
by the repetition of the tests will be deducted from the Contract Price.
TAKING OVER
As soon as the Works have been completed in accordance with the Contract
and have satisfactorily passed the tests on completion and Contractor have
BOOK I
fulfilled his other obligations hereunder except for the maintenance thereof as
provided in Clause 2.59 (Defects after Taking Over), the Owner will issue a
certificate, herein called a 'Taking-Over Certificate', in which he will certify the
date on which the Works have been so completed and the Owner shall be
deemed to have taken over the Works on the date so certified. The issue of a
Taking-Over Certificate shall not operate as an admission that Works have been
completed in every respect. The Taking-Over shall not be withheld due to minor
defects, faults or omissions, which do not impede the safe operation of the Unit.
If the Owner decides that any part of the works, other than Unit shall be taken
over before the remainder of the Works, the Owner shall issue a Taking-Over
Certificate in respect of that part.
If by reason of any default on the part of the Contractor a Taking-Over Certificate

has not been issued in respect of every part of the Works within thirty (30) Days
after the date fixed by the Contract for the completion of the Works, or, if no time
be fixed, within a reasonable time, the Owner will be at liberty to operate the
Plant or any part thereof under the supervision of the Contractor's personnel in
respect of which a Taking-Over Certificate has not been issued, provided that
the Works or the part so used as aforesaid shall be reasonably capable of being
used and that the Contractor shall be afforded reasonable opportunity of taking
such steps as may be necessary to permit the issue of the Taking-Over
Certificate.
If by reason of any act or omission of the Owner, the Contractor shall be

prevented from carrying out the tests on completion as provided in Clause 2.57
(Tests on Completion at Site) then, unless in the meantime the Works shall have
been proved not to be in accordance with the Contract, the Owner will be
deemed to have taken over the Works, and a Taking-Over Certificate will
accordingly be issued.
Nevertheless, the Contractor shall make the said tests before the end of the
Warranty Period as and when required by the Owner by fourteen (14) days'
notice in writing, and Clause 2.57 (Tests on Completion at Site) will apply.
Prior to the Taking-Over Certificate of each Unit, the Owner shall receive the
provisional manuals, catalogues and data necessary for the safe operation of
the Plant.
Then prior to the Taking-Over Certificate of the last Unit, the Owner shall receive
the final manuals, catalogues and data.
Upon to the issuance of Taking-Over Certificate of the last unit, the following
shall be received by the Owner:
- Other documentation required by the Contract;

- Legally effective releases, executed by the Contractor and his sub
Contractors, of all claims and liens against the Owner or the Works arising
under or by virtue of this Contract, except such claims and liens, if any, in
such stated amounts which the Contractor, with the written consent of the
Owner, may exclude from the operation of such releases; and
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- The Contractor's statement, together with such supporting documents as the

Owner may reasonably require, that all claims and demands against and
debts incurred by Contractor in respect of this Contract have been settled
and that all taxes due and payable by Contractor have been paid or
otherwise provided for.
DEFECTS AFTER TAKING OVER
Subject to the provisions of Clause 2.53 (Delivery) the Contractor shall be

responsible for making good at his own risk and cost with all possible speed any
defects arising from defective design, material, or workmanship or from any act
or omission of the Contractor that may develop under the conditions provided for
by the Contract within the Warranty Period.
If any defects or non-conformance should occur, the Owner will inform the
Contractor thereof, stating in writing the nature of the defects or non-
conformance and information of related operational records and relevant
observations. Upon receipt of such notice in writing the Contractor shall, with all
possible speed, refurnish, repair or replace the defective or nonconforming
equipment or materials, or parts thereof, at his own expense.
If the Contractor replaces or renews any part of the Works, the Warranty with
respect thereto shall be as per clause 2.34, Warranty.
If the Contractor does not start action to remedy the defect within fifteen (15)
days of the Owner's notification to the Contractor, the Owner may proceed to do
the work, at the Contractor's risk and expense, but without prejudice to any other
rights expressly described in the Contract which the Owner may have against
the Contractor in respect of the failure of the Contractor to remedy such defects.
If the replacements or renewals are of such a character as may affect the

efficiency of the Works or any part thereof, the Owner may within thirty (30)
Days of such replacement or renewal give to the Contractor notice in writing
requiring that tests on completion be made, in which case such tests shall be
carried out as provided in Clause 2.57 (Tests on Completion at Site).
If the Contractor fails to refurbish, repair or replace the defective or

nonconforming equipment or materials within a period three (3) months after
receiving written notice by the Owner to do so, the Owner may claim from the
Performance Bond/Bank Guarantee such portion of the Contract price of the
equipment and/or material plus any additional cost of installing replacement
equipment/material equitable under the circumstances.
These General Conditions shall apply to all inspections, adjustments,

replacements and renewals and to all tests occasioned thereby, carried out by
the Contractor pursuant to this Clause.
CONTRACTOR TO SEARCH
The Contractor shall, if required by the Owner in writing, search under the
directions of the Owner for the cause of any defect, imperfection or fault
appearing during the progress of the Work or during the Warranty Period. The
cost of the work carried out by the Contractor in such search shall be borne by
the Owner unless such defect, imperfection or fault shall be one for which the
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Contractor is liable under the Contract. But if such defect, imperfection or fault
shall be one for which the Contractor is liable, the cost of the work carried out in
such investigation shall be borne by the Contractor and he shall, in such case,
repair, rectify and make good such defect, imperfection or fault at its own
expense.
PAYMENT CERTIFICATE
The Contractor may at the times and in the manner following apply for Payment
Certificates, as referred to in Part 3, Clause 3.2, for plant manufactured and
shipped from the country of origin to the Site and for works executed on the
Site.
Applications for Payment Certificates may be made to the Owner in respect of

each shipment of plant and from time to time as Work in the manufacture and
on the Site progresses. Each such application in respect of shipment shall
identify the plant shipped, state the amount claimed, and be accompanied by
such evidence of shipment and of payment of freight and insurance as the
Owner may reasonably require.
Each application for work executed in manufacture or on Site shall state the
amount claimed and shall set forth in detail in the order of Part 5, Schedule 1 or
2 as applicable, particulars of the Works executed in manufacture and on the
Site pursuant to the Contract to a date named in the application and since the
period covered by the last preceding certificate (if any). The Payment Certificate
will not be issued for Work executed in manufacture until the Contractor has
obtained from the Owner a Certificate of engineering/ Manufacturing Progress
as defined in Clause 1 herein.
The Owner will issue to the Contractor a Payment Certificate within forty five
(45) days after receiving a correct application therefore made in accordance with
this Clause.
Every Payment Certificate shall certify in accordance with Part 3, Clause 3.2, the
value of plant manufactured and shipped or the value of the works duly
executed on the Site and of the plant delivered to the Site for use in the Works
pursuant to the Contract up to the date named in the application for the
certificate, less the total of any sums previously certified in Payment Certificates,
provided that no sum shall be included in any Payment Certificate in respect of
any plant that, according to the decision of the Owner, does not comply with the
Contract or has been brought and is at the date of the certificate prematurely
upon Site without the prior approval of the Owner.
No Payment Certificate shall be relied on as conclusive evidence of any matter

stated therein, nor affect or prejudice any right of the Owner or the Contractor
against the other.
Any sums payable under the Contract by or to the Contractor other than for
Works executed or Plant delivered will be included or deducted in the next
certificate issued by the Owner.

BOOK I
FINAL ACCEPTANCE CERTIFICATE
Contractor may apply to the Owner for a Final Acceptance Certificate with
respect to the Works (or to a part thereof for which a Taking Over Certificate has
been issued) at any time after first inspection at the end of the Warranty Period
with regard to the Works or such portion thereof.
The Owner will issue to the Contractor a Final Acceptance Certificate within thirty
(30) Days after receiving an application thereof which the Contractor is entitled
to make. If, due to reasons beyond the Contractor's control, the
Acceptance Certificate of the respective part of the Work is not issued or is
delayed, it shall be deemed issued fourteen (14) months after the Taking Over
Certificate. However, the Final Acceptance Certificate shall only be issued if the
Unit does not contain defects which impair its safe operation.
CORRECTION AND WITHHOLDING OF CERTIFICATE
The Owner may in or by any Payment Certificate give effect to or make any
correction or modification that should properly be made in respect of any
previous Payment Certificate which will have been issued by him and will have
power to withhold any certificate if the Works or any part thereof, not being
carried out according to the Contract Documents.
PAYMENTS DUE FROM THE CONTRACTOR
All costs, damages or expenses for which under the Contract the Contractor is
liable to the Owner may be deducted by the Owner from any monies due or
becoming due to the Contractor under the Contract, or may be recovered by
action at law or otherwise from the Contractor.
NOTICES
Any notice, order, direction or other communication to be given to the Contractor

under any of the provisions of this Contract shall be deemed to have been
received by the Contractor if delivered to the Contractor personally, or to his
superintendent or foreman, or left at the Contractor's office, or mailed at any
post office to the Contractor addressed to the address mentioned in the Contract
or to the Contractor's last known place of business or residence.
Notices to the Owner shall be given in accordance with the appropriate

procedure set out in the Implementation Procedures.
LAW
This Contract shall be construed according to the laws in force in the Republic of
Indonesia. The Owner and the Contractor hereby waive the provisions of Article
1266 and 1267 of the Indonesian Civil Code with respect to the Contract.
EFFECTIVENESS
In the event of this Contract is not approved by the requisite authorities within
the Republic of Indonesia or by the funding authorities, the Contract shall be null
and void and the Owner shall not be liable for any cost arising there from.
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UNFORSEEABLE DIFFICULTIES
Except as otherwise stated in the Contract:
(a) The Bidder shall be deemed to have obtained all necessary information as
to risk, contingencies and other circumstances which may influence or
affect the Works;
(b) By signing the Contract, the Bidder accept total responsibilities for having
foreseen all difficulties and cost of successfully completing the Work;
(c) The contract price shall not be adjusted to take account of any unforeseen
difficulties or cost.

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BOOK I

PART 2 GENERAL CONDITIONS OF CONTRACT

PART 2 GENERAL CONDITIONS OF CONTRACT

Revision 0 Part 2 - i Lontar Extension CFSPP (1 x 315 MW)

2.44 NIGHT, SUNDAY OR HOLIDAY WORK ON SITE...........................................29

Revision 0 Part 2 - ii Lontar Extension CFSPP (1 x 315 MW)

PART 2 GENERAL CONDITIONS OF CONTRACT

2.1.1 'Access' means admittance to a portion of the Site by the Owner.

2.1.3 'Bid Drawings' means Drawings referred to in the Technical Requirements

‘Contract Drawing’ means Drawings referred to in the Technical Requirements

2.1.4 'Certificate of Engineering/Manufacturing Progress' means a certificate issued

2.1.9 'Construction Equipment/Plant' means all appliances or things of whatsoever

- The Contract Agreement

Revision 0 Part 2 - 1 Lontar Extension CFSPP (1 x 315 MW)

- The Contract Discussion Agreement (CDA)

2.1.14 'Day' means calendar day

2.1.17 'Final Contract Price' means the aggregate of:

- the Total Contract Price;

Revision 0 Part 2 - 2 Lontar Extension CFSPP (1 x 315 MW)

2.1.25 'Month' or 'Monthly' pertains to a calendar month.

2.1.29 'Performance Security' means the security to be provided by the Contractor in

Revision 0 Part 2 - 3 Lontar Extension CFSPP (1 x 315 MW)

2.1.37 'Specified' means specified in writing by the Owner, in the Specifications.

2.1.51 The words 'approved', 'reasonable', 'significant', 'major', 'minor', 'suitable',

Revision 0 Part 2 - 4 Lontar Extension CFSPP (1 x 315 MW)

2.1.52 ‘Local Content’ means of or pertaining to the number or percentage of the

2.1.55 ‘Locally manufactured product’ means Goods / services produced or handled by

- The headings or marginal notes in the Contract Document shall not be

- Sub-clause 2.1.6 (Commissioning); 2.1.8 (Completion of Works); 2.1.17

- Words “Bidder” if any, it will be means “The Contractor” in the Contract

Revision 0 Part 2 - 5 Lontar Extension CFSPP (1 x 315 MW)

Revision 0 Part 2 - 6 Lontar Extension CFSPP (1 x 315 MW)

In the event of inconsistencies between different parts of the Contract the

- The Contract Agreement

At least one copy of the Owner's Drawings furnished to the Contractor as

The performance security shall be in the form of a Bank Guarantee for

If any security furnished shall become unacceptable to the Owner or if any

The validity of the performance security shall be automatically extended under

The Contractor will be deemed to have fully investigated, without any

SUFFICIENCY OF BID PROPOSAL

The Contractor shall, by careful examination, satisfy himself in respect of all

circumstances shall be included in the Bid Proposal. Therefore, no claim will be

WORKS TO THE SATISFACTION OF OWNER

Revision 0 Part 2 - 9 Lontar Extension CFSPP (1 x 315 MW)

Site shall be replaced as soon as possible by a competent substitute approved

If the Contractor or any of his sub Contractors or any of their representatives or

LIGHTING AND GUARDING

parties, or if no agreement can be reached, then such shall be settled by

The 'excepted risks' are:

war, hostilities (whether war be declared or not), invasion, act of foreign

- Interference whether temporary or permanent with any right of light, airway

- Injuries or damage to persons or property resulting solely from any act or

Revision 0 Part 2 - 11 Lontar Extension CFSPP (1 x 315 MW)

In no event shall the Contractor be liable, whether as a result of breach of

2.1.1 DEFINITION OF FORCE MAJEURE

If the Contractor is temporarily unable, wholly or partially, to perform his duties

2.1.3 FORCE MAJEURE OF SUB CONTRACTOR

Delay and failure to deliver in time by a Sub-Contractor due to any of such

2.1.4 NOTICE OF FORCE MAJEURE

If the Contractor is permanently prevented, wholly or partially, by reason of force

2.1.5 BUILDERS RISK INSURANCE

Loss of or damage to the Permanent Works and Temporary Works, including

Loss of or damage to Construction Equipment/ Plant and other things brought