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17.4 Consequences of Employer's Risks

The document outlines the responsibilities of the Contractor regarding loss or damage to Works, Goods, or Contractor’s Documents, including the requirement to notify the Engineer and rectify the damage. It also details the indemnification obligations of both the Employer and Contractor concerning intellectual property rights and claims, as well as limitations on liability for indirect or consequential losses. The Contractor is entitled to an extension of time and payment for costs incurred due to rectification of damages.
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0% found this document useful (0 votes)
21 views1 page

17.4 Consequences of Employer's Risks

The document outlines the responsibilities of the Contractor regarding loss or damage to Works, Goods, or Contractor’s Documents, including the requirement to notify the Engineer and rectify the damage. It also details the indemnification obligations of both the Employer and Contractor concerning intellectual property rights and claims, as well as limitations on liability for indirect or consequential losses. The Contractor is entitled to an extension of time and payment for costs incurred due to rectification of damages.
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Mustafa USALAN

0 532 4712921
mustafa@usalan.net

17.4 If and to the extent that any of the risks listed in Sub-Clause 17.3 above results in loss
Consequences of or damage to the Works, Goods or Contractor’s Documents, the Contractor shall
Employer’s Risks promptly give notice to the Engineer and shall rectify this loss or damage to the extent
required by the Engineer.

If the Contractor suffers delay and/or incurs Cost from rectifying this loss or damage,
the Contractor shall give a further notice to the Engineer and shall be entitled subject
to Sub-Clause 20.1 [Contractor’s Claims] to:

(a) an extension of time for any such delay, if completion is or will be delayed,
Licensed copy: scottwilson, Scott Wilson Holdings, 20/01/2010, Uncontrolled Copy, ®FIDIC

under Sub-Clause 8.4 [Extension of Time for Completion], and


(b) payment of any such Cost, which shall be included in the Contract Price. In the
case of sub-paragraphs (f) and (g) of Sub-Clause 17.3 [Employer’s Risks],
reasonable profit on the Cost shall also be included.

After receiving this further notice, the Engineer shall proceed in accordance with Sub-
Clause 3.5 [Determinations] to agree or determine these matters.

17.5
Intellectual and Industrial In this Sub-Clause, “infringement” means an infringement (or alleged infringement) of
Property Rights any patent, registered design, copyright, trade mark, trade name, trade secret or other
intellectual or industrial property right relating to the Works; and “claim” means a claim
(or proceedings pursuing a claim) alleging an infringement.

Whenever a Party does not give notice to the other Party of any claim within 28 days
of receiving the claim, the first Party shall be deemed to have waived any right to
indemnity under this Sub-Clause.

The Employer shall indemnify and hold the Contractor harmless against and from any
claim alleging an infringement which is or was:

(a) an unavoidable result of the Contractor’s compliance with the Contract, or


(b) a result of any Works being used by the Employer:

(i) for a purpose other than that indicated by, or reasonably to be inferred
from, the Contract, or
(ii) in conjunction with any thing not supplied by the Contractor, unless such
use was disclosed to the Contractor prior to the Base Date or is stated
in the Contract.

The Contractor shall indemnify and hold the Employer harmless against and from any
other claim which arises out of or in relation to (i) the manufacture, use, sale or import
of any Goods, or (ii) any design for which the Contractor is responsible.

If a Party is entitled to be indemnified under this Sub-Clause, the indemnifying Party


may (at its cost) conduct negotiations for the settlement of the claim, and any litigation
or arbitration which may arise from it. The other Party shall, at the request and cost of
the indemnifying Party, assist in contesting the claim. This other Party (and its
Personnel) shall not make any admission which might be prejudicial to the indemnifying
Party, unless the indemnifying Party failed to take over the conduct of any negotiations,
litigation or arbitration upon being requested to do so by such other Party.

17.6
Limitation of Liability Neither Party shall be liable to the other Party for loss of use of any Works, loss of
profit, loss of any contract or for any indirect or consequential loss or damage which
may be suffered by the other Party in connection with the Contract, other than under
52 Conditions of Contract for Construction

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