INTERNATIONAL PIPELINE & OFFSHORE CONTRACTORS ASSOCIATION

STANDARD FORM OF CONTRACT FOR ONSHORE CROSS-COUNTRY PIPELINES

First Publication in 1989 Second Publication in 2000 by: International Pipe Line and Offshore Contractors Association c/o Federation Internationale Europenne de la Construction 128 rue de la Botie 75008 Paris France All correspondence to: International Pipe Line and Offshore Contractors Association (IPLOCA) St Pietersnieuwstraat 41 9000 Gent Belgium Copyright IPLOCA All rights reserved. No publication may be reproduced in any material form (including photocopying or storing it in any medium by any electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright owner. Applications for the copyrights owners written permission to reproduce any part of this publication should be sent to the aforementioned address. Warning: The doing of an unauthorised act in relation to a copyright may result in both a claim for damages and criminal prosecution.

ACKNOWLEDGEMENTS
The International Pipe Line & Offshore Contractors Association and James R Knowles would herein like to convey their sincere gratitude for the assistance, comments and guidance they have received in the preparation of this document. In particular we would like to thank all those members of the Association who took the time to provide their responses to the Test Edition of the new FIDIC Conditions of Contract for Construction.

INTERNATIONAL PIPELINE & OFFSHORE CONTRACTORS ASSOCIATION

STANDARD FORM OF CONTRACT FOR ONSHORE CROSS COUNTRY PIPELINES

PREAMBLE

PART 1

CONSTRUCTION OF ONSHORE CROSS-COUNTRY PIPELINES TENDER DOCUMENTS

PART 2

FIDIC GENERAL CONDITIONS OF CONTRACT FOR CONSTRUCTION FIRST EDITION 1999

PART 3

PARTICULAR CONDITIONS OF CONTRACT AND GUIDANCE NOTES

PART 4

AMENDMENTS AND ADDITIONS

INTERNATIONAL PIPELINE & OFFSHORE CONTRACTORS ASSOCIATION STANDARD FORM OF CONTRACT

FOR

ONSHORE CROSS COUNTRY PIPELINES

PREAMBLE
It is to everyones advantage to have a Standard Form of Contract because the advantages to all concerned include as follows, viz:

Lawyers do not have to fine toothcomb the Contract Documents to pick out the hidden pitfalls.

Tenders can be prepared and accepted more easily and quickly when the contracting parties are both familiar and conversant with the use of conditions of Contract which are industry standard.

Tenderers do not have to qualify their tenders to the extent they do at present, thereby allowing the tenders to be submitted and evaluated on a like for like basis.

Tender prices tend to be lower because Contractors do not have to include contingent sums to cover for the unknown risks.

Disputes and litigation are likely to be considerably reduced.

The working relationship between the Employer, Engineer and Contractor should become more constructive and proactive and less adversarial when the conditions of Contract have been drafted by an independent third party.

There has, in recent years, been an increasing trend favouring the use of more equitable and user friendly contracts. Indeed, those familiar with the industry will be aware that the World Banks Form of Contract, the new FIDIC suite of Contracts together with the suite of CRINE Contracts all endure themselves to more equitable and user friendly Standard Forms of

Contract, and all of which are drafted in a manner to make them suitable for the construction relationships encountered internationally today. However, notwithstanding the high regard held for the aforementioned Standard Forms of Contract, a close perusal of the said documents highlights that they will not suit everyone involved in construction and, in particular, they are not drafted with onshore cross-country pipeline construction specifically in mind. Notwithstanding their lack of specific applicability to our industry, the majority of the terms and conditions can be used as a model upon which particular and more relevant terms can be drafted to cover the onshore cross-country pipeline construction industry.

It will be recalled that in 1989 the IPLOCA drafted a Standard Form of Contract for Onshore Pipeline Construction based upon the FIDIC Red Book, 4 Edition, 1987, and in recent years our Offshore Division had a representative sitting on the CRINE Contracts Committee which drafted the Marine Construction Contract, (published in 1998).
th

The Board of IPLOCA has recently decided, following careful consultations, that the time is now right, as we enter the new millennium, to update the current Standard Form of Contract for Onshore Cross-Country Pipeline Construction. The Board recently commissioned a study and comparison of the World Bank Contract, the old and new FIDIC (1987 and 1999 Editions respectively), and the CRINE suite of Contracts. Following careful consideration, it has been decided that it would serve the interests of all concerned to continue to utilise the new FIDIC Conditions of Contract for Construction (First Edition published in 1999) as the General Conditions of Contract with the Particular Conditions of Contract drafted specifically with onshore cross-country pipeline construction in mind. The Board has endeavoured, of course, to take into account the observations and comments made by our members along with a careful consideration of the contents of the World Bank and CRINE Standard Forms of Contract, where applicable. The Form of Tender is a fundamental part of this overall document and is entirely directed towards onshore cross-country pipeline construction contracts. Notwithstanding that reference has been made throughout to the Specification(s) and Drawings, neither of these documents is currently the subject of review or amendment. Finally, it was also decided by the Association that the Part 3 Particular Conditions should expressly provide that the contract would best be based on a Fixed Price Lump Sum. Those familiar with the FIDIC Conditions of Contract for Construction, 1999 Edition, will be aware that this particular Form of Contract does not envisage a Fixed Price Lump Sum as its basis, therefore, the Part 3 Particular Conditions have been amended accordingly to take account of this significant requirement.

INTERNATIONAL PIPELINE & OFFSHORE CONTRACTORS ASSOCIATION STANDARD FORM OF CONTRACT

FOR

ONSHORE CROSS-COUNTRY PIPELINES PART 1

TENDER DOCUMENTS
CONTENTS
Instructions to Tenderer Invitation to Tender Form of Tender Appendix to Tender Form of Tender Security Form of Parent Company Guarantee Form of Performance Security Demand Guarantee Form of Performance Security Surety Bond Form of Advance Payment Guarantee Form of Retention Money Guarantee Form of Payment Guarantee by Employer Contract Agreement Dispute Adjudication Agreement (one person) Dispute Adjudication Agreement (three person)
Page

1 3 5 6 10 11 12 13 14 15 16 17 18 19

Tender Schedules Introduction A Breakdown of the Lump Sum Price B Schedule of Unit Rates C Schedule of Daywork Rates 1 Labour 2 Contractors Equipment 3 Materials

20 21 23 24 25 26 27 29

Tender Information (to be provided by Tenderers) 1 Programme 2 Contractors Organisation 3 Schedule of Contractors Equipment A Utilisation of Equipment by Operation

30 31 33 34 35

5 6 7 8 9 10 11 12 13 14 15 16 17

B Summary of Equipment Schedule of Labour A Utilisation of Labour by Operation B Summary of Labour Details of Proposed Project Implementation and Logistics Safety List of Subcontractors Proposed Working Times Financing Proposal Cash Flow Forecast Schedule of Price Qualifications Rights of Way and Facilities Further Particulars Copy of Joint Venture or Consortium Agreement List of Drawings, Specification(s), Relevant Codes of Practice, etc. Environmental Considerations Schedule of Payments

39 43 44 45 48 48 48 48 49 50 52 53 53 53 53 54 54

(Note: Where the Employer drafts additional or amended Schedules the List of Contents should be amended accordingly by the Employer.)

INTERNATIONAL PIPELINE & OFFSHORE CONTRACTORS ASSOCIATION STANDARD FORM OF CONTRACT

FOR

ONSHORE CROSS-COUNTRY PIPELINES

PART 2

GENERAL CONDITIONS OF CONTRACT

CONDITIONS OF CONTRACT FOR CONSTRUCTION FOR BUILDING AND ENGINEERING WORKS DESIGNED BY THE EMPLOYER, AS PUBLISHED BY FIDIC, FIRST EDITION, 1999

INTERNATIONAL PIPELINE & OFFSHORE CONTRACTORS ASSOCIATION STANDARD FORM OF CONTRACT

FOR

ONSHORE CROSS-COUNTRY PIPELINES

PART 3

PARTICULAR CONDITIONS OF CONTRACT AND GUIDANCE NOTES

INTERNATIONAL PIPELINE & OFFSHORE CONTRACTORS ASSOCIATION STANDARD FORM OF CONTRACT

FOR

ONSHORE CROSS-COUNTRY PIPELINES

PART 4

AMENDMENTS AND ADDITIONS