ABSTRACT

Public works projects represent a significant sector of the construction industry and a large proportion of civil engineering contracts. In common with the institution of civil engineers Conditions both a specification and bills of quantities are contract documents. Contractors must take steps at their own expense to reinstate, replace or make good to the satisfaction of the authority any loss or damage to the works. If this also results in a claim against the authority by third persons, the contractor has to reimburse the authority for any costs or expense that may be incurred. The contractor is responsible for the protection, preservation, and replacement of things that are lost, stolen, damaged, destroyed or unfit or unsuitable for their intended purpose. If the authority withholds payments, the contractor is allowed to add finance charges to those amounts at a rate of 1 per cent above the Bank of England’s lending rate.