Interpretation and Definition

Question 1

1.1 Government Law

Answer 1

• Hong Kong law

Question 2

1.2 Singular, plural, masculine and feminine

Answer 2

• Singular includes plural
• Masculine includes feminine and neuter

Question 3

1.3 Method of reference to clauses and articles

Answer 3

Unless stated otherwise a reference in the Articles, the Conditions or the Appendix to any clause means that clause of the Conditions and a reference to an Article means that Article of the Articles of Agreement.

Question 4

1.4 Articles of Agreement, the Conditions and the Appendix are to be read as a whole

Answer 4

• Reading as a Whole: All three sections (Articles, Conditions, and Appendix)

Question 5

1.5 Clauses divided into sub-clauses to be read as a whole

Answer 5

• Reading as a Whole: The sub-clauses should be read as if there were no division between them, meaning their meaning is interconnected and dependent on each other.

Question 6

1.6 Definitions

Answer 6

• Scope of Definitions: These definitions apply to Articles of Agreement, the Conditions and the Appendix

Question 7

Appendix

Answer 7

the Appendix to the Conditions

Question 8

Architect

Answer 8

The person named as the Architect in Article 3, or any successor appointed under Article 5.

Question 9

Articles or Articles of Agreement

Answer 9

The Article of Agreement to which the Conditions are annexed.

Question 10

Commencement Date

Answer 10

the date stated in the Appendix for the commencement of the Works.

Question 11

Communication

Answer 11

The giving, submitting or issuing of, without limitation, any agreement,approval, authorisation, certificate, confirmation, consent, decision, delegation,direction, dissent, determination, endorsement, instruction, notice, notification, opinion,request,requirement or statement.

Question 12

Completion Date

Answer 12

the date stated in the Appendix by which the Works or a Section are to be completed or such later date to be fixed by the Architect under clause 25.

Question 13

Conditions

Answer 13

the Conditions of Agreement and Schedule of Conditions of Building Contract for use in the Hong Kong Special Administrative Region, Private Edition Without Quantities and any special Conditions.

Question 14

Contract

Answer 14

the Articles of Agreement, the Appendix, the Form of tender submitted by the Contractor, the Employer’s letter of acceptance of the Contractor’s tender and Special Conditions, if any, the Conditions, the Contract Drawings, the Specification and the Schedule of Quantities and Rates.

Question 15

Contract Drawings

Answer 15

The drawings referred to in the first and fourth recitals of the Articles and enumerated as such in the Specification.

Question 16

Contract Sum

Answer 16

The sum stated in Article 2, or such other sum that becomes payable in accordance with the Contract.

Question 17

Contractor

Answer 17

The person named as the Contractor in the Articles

Question 18

Contractors’ All Risks Insurance of the Works

Answer 18

• Scope of Coverage: The Works, Temporary Works, Materials and Goods

Question 19

Date for Possession of the Site

Answer 19

The date or dates for the possession of the whole or parts of the Site stated in the Appendix under the reference to clause 23.1.

Question 20

Date of Substantial Completion

Answer 20

The date stated in the Substantial Completion Certificate for the Works or a Section, issued by the Architect under the reference to clause 23.1

Question 21

Day

Answer 21

A calendar day and includes Sundays and other days which are general holidays by virtue of the General Holidays Ordinance (Chapter 149, Laws of Hong Kong)

Question 22

Defects Liability Period

Answer 22

the period stated in the Appendix under the reference to clause 17.3, commencing on the day after the Date of Substantial Completion of the Works or a Section or the day after the Relevant Date of Substantial Completion of a Relevant Part.

Question 23

Defects Rectification Certificate

Answer 23

A certificate issued by the Architect to the effect that all defects, shrinkages and other faults have been rectified in accordance with the Contract, as described in clauses 17.4 and 17.5

Question 24

Direct loss and/or expense:

Answer 24

the monetary consequences that flow naturally without other intervening cause and independently of special circumstances because of the direct consequences of a qualifying event and which are not otherwise reimbursed to the Contractor.

Question 25

Domestic Sub-Contractor

Answer 25

a person, other than a Nominated Sub-Contractor, to whom the Contractor sub-lets any part of the Works and includes a labour only sub-contractor.

Question 26

Employer

Answer 26

the person named as the Employer in the Articles.

Question 27

Engineer

Answer 27

a person engaged as a member of the Employer’s design team for the design and supervision of one or more of the geotechnical, civil, structural or building services elements of the Works, as referred to in clause 1.7

Question 28

Excepted Risks

Answer 28

(a) War and Civil Unrest
(b) Architect’s Design
(c) Architect’s or Employer’s Negligence
(d) Nuclear Events
(e) Sonic Booms

Question 29

Final Contract Sum

Answer 29

the sum resulting from the adjustment of the Contract Sum in accordance with the Contract.

Question 29

Final Certificate

Answer 29

A document issued by the Architect that states two key figures:
- Final Contract Sum: total amount of money due to the Contractor for completing the project
- Total of Interim Certificates: the sum of all the interim payments that the Contractor has already received for completed work

Question 30

Form of Tender

Answer 30

the form of tender referred to in the first recital of the Articles as being part of the Tender Documents

Question 31

Hong Kong

Answer 31

the Hong Kong Special Administrative Region

Question 32

Interim Certificate

Answer 32

a certificate issued by the Architect stating the amount of an interim payment due to the Contractor, as described in clause 32.1.

Question 33

Limit of Retention

Answer 33

the amount stated in the Appendix under the reference to clause 32.4 as the limit to the amount of Retention to be held by the Employer on the payment for the Contractor’s work in progress.

Question 34

Nominated Sub-Contract

Answer 34

the sub-contract between the Contractor and a Nominated Sub-Contractor.

Question 35

Nominated Sub-Contractor

Answer 35

a sub-contractor nominated by the Architect under clause 29 to carry out work forming part of the Works.

Question 36

Nominated Supplier

Answer 36

a supplier nominated by the Architect under clause 29 to supply materials or goods for incorporation into the Works

Question 37

Nominated Supply Contract

Answer 37

the supply contract between the Contractor and a Nominated Supplier.

Question 38

parties

Answer 38

the Employer and the Contractor.

Question 39

Period of Interim Certificates

Answer 39

the period stated in the Appendix under the reference to clause 32.1 as the interval between the issuing of Interim Certificates

Question 40

person

Answer 40

an individual, firm, partnership, or body corporate.

Question 41

person for whom the Contractor is responsible

Answer 41

Persons on the Site:
- Contractor’s servants or agents,
- Sub-contractors
- Suppliers
- Persons Employed or Engaged
- Persons Properly on Site: inspectors, surveyors, or engineers
- Connection with the Works

Question 42

person for whom the Employer is responsible

Answer 42

the Employer’s servants or agents and the persons listed in clause 30.1.

Question 43

postpone

Answer 43

to defer the commencement of operations on an activity.

Question 44

Prime Cost Sum

Answer 44

• Clause 29.1
• work or materials that are procured through Nominated Sub-Contractor or Nominated Supplier

Question 45

Provisional Item

Answer 45

• clause 13.2.
• the Contractor is obligated to carry out only if instructed to do so by the Architect
• is not made at the time of contract signing but is contingent on future circumstances or decisions

Example: additional landscaping work. Specific details of the landscaping (type of plants, layout, etc.) might not be finalized until later in the project.

Question 46

Provisional Quantities

Answer 46

• work that the Contractor is obligated to carry out only if instructed to do so by the Architect
• the decision to include these items in the project and the final quantity of work are not determined at the time of contract signing but are contingent on future circumstances or decisions

Example: excavation work. The exact amount of earth to be excavated might not be known until after the site investigation or during the construction process.

Question 47

Provisional Sum

Answer 47

• clause 13.2.
• a sum provided in the Contract Bills for work or for costs, which could not be entirely foreseen, defined or detailed when the bills of quantities were prepared.

Question 48

Key Differences

Answer 48

• Prime Cost Sum vs. Provisional Sum:
  Both are sums allocated in the contract. The Prime Cost Sum is for specific items procured through nominated subcontractors/suppliers, while the Provisional Sum is for unforeseen work or costs.

-Provisional Item vs. Provisional Quantities:
Both are conditional work items. The Provisional Item refers to the entire work item, while Provisional Quantities refer to the estimated quantity of that work item

Question 49

Quantity Surveyor

Answer 49

the person named as the Quantity Surveyor in Article 4, or any successor appointed under Article 5.

Question 50

Relevant Date

Answer 50

the date upon which the Employer took possession of a Relevant Part under clause 18.

Question 51

Relevant Part

Answer 51

the part of the Works or part of a Section taken possession of by the Employer under clause 18 before Substantial Completion of the Works or that Section.

Question 52

Retention

Answer 52

the sum calculated in accordance with clause 32.4 and retained by the Employer from the gross valuation of the Contractor’s work in progress included in an Interim Certificate.