Oman Conditions 1999
Oman Conditions 1999
Oman Conditions 1999
FOURTH EDITION
SEPTEMBER 1999
Form of Tender
Appendix to the Form of Tender
Form of Agreement
Appendices to Form of Agreement
Standard Conditions of Contract
Table of Contents
Standard Conditions
Form of Tender Bond
Form of Advance Payment Bond
Form of Performance Bond
Form of Tender
Note: The Appendix to the Form of Tender shall constitute a part of the Tender documentation. The
Tenderers are required to fill up the blank spaces in this form and in the Appendix.
To…………………………………………………………………………………………………………………...
Messrs,
1. Having examined the instructions to Tenderers, Drawings, Standard Conditions of Contract,
Specification and Bill of Quantities/ Schedule of Rates* for the execution of the
aforementioned Works, we, the undersigned, hereby offer to execute, complete and maintain
the whole of the said Works in accordance with the said Instructions, Drawings, Standard
Conditions of Contract, Specification and Bill of Quantities/Schedule of Rates* for a total sum
of Rials Omani ……….. (RO ………………………..) or such other sum as may be ascertained
in accordance with the said Conditions.
2. We hereby undertake that in the event of the acceptance of our Tender, we shall commence
the Works within a period of ……… days from the date of the Engineer's order to this effect
and that we shall complete and hand over all the Works covered by the contract within
………. days to be calculated with effect from the date of the deadline for the commencement
of the said Works.
3. We further undertake that in the event of the acceptance of our Tender, we shall submit the
required guarantee from an insurance company or bank registered locally (pursuant to the
conditions set forth in Edition Ill of the Standard Contract for Building and Civil Engineering
Works, published in the Sultanate of Oman), to be jointly and severally bound with us in the
sum of 5% of the value of contract, so as to ensure the proper execution under the
Performance Bond approved by you.
4. We agree to adhere to this Tender for a period of ninety days from the date set for the receipt
of the Tender. The Tender shall remain binding upon us and may be accepted at any time
before the expiry of such period.
5. In the event of the acceptance of our Tender and pending the preparation and signing of an
official agreement, this Tender, together with its acceptance in writing by the Employer, shall
constitute a binding obligation upon us.
6. We are aware that you are under no obligation to accept either the Tender with the lowest
price or any other Tender.
7. We acknowledge receipt of the following circulars:
Letter No. Date
………………………………………………….. …………………………………………………..
………………………………………………….. …………………………………………………..
………………………………………………….. …………………………………………………..
We affirm that the contents of these letters have been taken into consideration in our Tender.
*Strike off what is not applicable.
1. All the words and expressions used in this agreement shall carry the meanings assigned
to them subsequently in the Standard Conditions of Contract.
2. The documents listed below shall constitute an integral part of this agreement
and shall be read and interpreted as part of this agreement:
The said Tender
The Standard Conditions of Contract
The Drawings
The Specification
The Bill of Quantities*
The Schedule of Rates and Prices
The Letter of Acceptance*
……………………………………………**
……………………………………………
……………………………………………
……………………………………………
3. The Contractor shall execute, complete and maintain the works required of him in
accordance with the conditions and provisions of the Contract against an undertaking by
the Employer to pay the amounts payable to him as specified below.
4. The Employer undertakes to pay the Contract price to the Contractor, in return for the
execution, completion and maintenance of the Works, on the dates and in the manner
prescribed by the Contract, in accordance with the agreed Cash Flow specified in the
Appendix to the Tender.
Signed by the authorized legal representative of and on behalf of the government of the Sultanate of
Oman
Witness ……………………………………………
……………………………………………
Witness ……………………………………………
……………………………………………
Signed by the authorized legal representative of and on behalf of the Contractor
Witness ……………………………………………
……………………………………………
Ratified by virtue of the Royal Decree no. 48/76 and amendments thereto.
…………………………………………… ……………………………………………
Minister Responsible for Financial Affairs Undersecretary for Finance
Darwish Bin Ismail Bin Ali Al Balushi
1. International Companies:
The Contractor shall, prior to the signing of the Form of Agreement, submit notarially
authenticated copies of the original documents specifying the formation of the company,
powers of attorney and other relevant documents.
In case of a partnership or firm, these documents shall be duly authenticated extracts from the
partnership deed and other instruments.
Such documents shall also specify the individuals with whom contracts may be concluded, the
nature of such contracts, the individuals directly responsible for the adequate execution of
such contracts and those who may issue valid receipts and their specimen signatures.
An overseas power of attorney of a foreign signatory to the Tender shall be endorsed by an
approved Omani authority (such as an Embassy).
A Contractor who intends to conclude such Contract in association with another firm or other
firms, including firms or individuals serving as consultants shall submit a statement explaining
the methodology of meeting the contractual liabilities and defining the exact relationship
between various parties.
The Contractor shall provide the name and address of his resident agent in Oman, if any.
2. Omani Companies:
The Contractor shall, prior to the signing of the Form of Agreement, submit details of the
nature of the company, specifying whether it is a general partnership, limited partnership,
limited liability company, joint venture or joint stock company and shall state the number of
registration in the Commercial Register.
Such details shall also specify the individuals with whom contracts may be concluded, the
nature of such contracts, the individuals directly responsible for the adequate execution of
such contracts and those who may issue valid receipts and their specimen signatures.
Value of Preliminaries …
Value of Measured Works …
Value of Provisional Sum …
Value of Dayworks …
Value of Contingencies …
1. Definitions
2. Singular and Plural
3. Captions and Notes
4. Cost
Contract Documents
Clause 5
1. Language and Law
2. Mutually Explanatory Documents
Clause 6
1. Possession of Drawings and Specification
2. Preservation of Copy of Drawings and Specification on Site
3. Disruption of Progress
4. Delays and Cost of Delay of Drawings
Clause 7
Other Drawings and Instructions
General Liabilities
Clause 8
General Liabilities of Contractor
Clause 9
Form of Agreement
Manpower
Clause 34
1. Recruitment
2. Water Supply
3. Alcoholic Beverages and Drugs
4. Arms and Ammunition
5. Festivities and Religious Traditions
6. Epidemics
7. Disorderly Conduct Etc.
8. Compliance by Subcontractors
Clause 35
Reports on Labour Etc.
Quantities
Clause 55
1. Estimated Quantities
2. Works to be Measured
Clause 56
Actual and Correct Quantities
Clause 57
Method of Measurement
Provisional Sums
Clause 58
1. Definition of 'Provisional Sum'
2. Use of 'Provisional Sums'
3. Production of Documents
Nominated Subcontractors
Clause 59
1. Definition of Nominated Subcontractor
2. Objection to Nomination By Nominated Subcontractors
3. Express Provision of Design Requirements
4. Payments to Nominated Subcontractors
5. Certification of Payments to Nominated Subcontractors
6. Specification of Liabilities of Nominated Subcontractor
Clause 64
Urgent Repairs
Special Risks
Clause 65
1. Absence of Liability for War Risks Etc.
2. Damage to Works Etc. by Special Risks
3. Projectiles and Missiles
4. Increased Costs Arising from Special Risks
5. Special Risks
6. Outbreak of War
7. Removal of Plant on Termination
8. Payment on Termination of Contract
Frustration
Clause 66
Payment in Event of Frustration
Settlement of Disputes
Clause 67
Settlement of Disputes and Arbitration
Default of Employer
Clause 69
Default of Employer
Miscellaneous
Clause 71
Bribery and Corruption
Clause 72
Precautions Against Fire
Clause 73
Confidentiality of Details
Clause 74
Photographs and Advertising
Clause 75
Wireless Communications
Clause 76
Land Acquisition for Quarries, Borrow Pits and Contractor's Use
Clause 77
Maintenance of Other Services and Structures
Clause 78
Spoil Dumps
Clause 79
Operating and Maintenance Instructions
Contract Documents
Clause 5
1. Languages and Law
A. Unless provided otherwise, the approved language shall be the one in which the Contract
documents have been drafted.
B. All correspondence exchanged between the Employer, Engineer and Contractor shall be
conducted in the Arabic and English languages.
C. This Contract shall be subject to and interpreted by virtue of the laws applicable in the
Sultanate of Oman.
2. Mutually Explanatory Documents
The set of Contract documents shall be treated as mutually explanatory unless provided otherwise in
the Contract within the limits of such provision.
In the event of an ambiguity or contradiction, the Engineer shall issue his explanations and
interpretations and give instructions to the Contractor in this regard.
However, where in the judgement of the Engineer, compliance by the Contractor with such
instructions is liable to make the latter incur additional expenses he is unable to assess in advance on
account of such ambiguity or contradiction, the Engineer shall, subject to the provisions of Clause 2
(1), sanction additional reasonable amounts to cover such expenses and the Employer shall pay them
to the Contractor.
Clause 6
1. Possession of Drawings and Specification
The Drawings and Specification shall remain in the possession of the Engineer and the Contractor
shall be provided with two copies free of charge.
General Liabilities
Clause 8
General Liabilities of Contractor
1. The Contractor shall execute and complete the Works by virtue of the Contract with full
attention and diligence and shall provide and supervise all the workers and provide materials,
Constructional Plant and all other articles, of a temporary or permanent nature, necessary for
execution, completion or maintenance where such provision is stipulated in or reasonably
understood by the Contract.
2. The Contractor shall bear the entire responsibility in respect of the adequacy, permanence
and safety of the techniques of execution and of all the operations on the Site. The Contractor
shall not, unless provided expressly in the Contract, be responsible for the designs and
specification of the Permanent Works and the designs and specification of Temporary Works
prepared by the Engineer.
Manpower
Clause 34
1. Recruitment
The Contractor shall make his own arrangements for the engagement of all labour, local or otherwise,
and save insofar as the Contract otherwise provides, for its transportation, boarding and lodging, in
accordance with the Laws of the Sultanate of Oman.
2. Water Supply
The Contractor shall provide on the Site, to the satisfaction of the Engineer's Representative, an
adequate supply of drinking and other water for the use of the Contractor's staff and work people.
3. Alcoholic Beverages and Drugs
The Contractor shall not, otherwise than in accordance with the laws of the Sultanate of Oman, for the
time being in force, import, sell, give, barter or otherwise dispose of any alcoholic beverages,
intoxicants or drugs or permit or suffer any such importation, sale, gift, barter or disposal by his
subcontractors, agents or employees.
4. Arms and Ammunition
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 as aforesaid.
Quantities
Clause 55
1
1. Estimated Quantities
The quantities set out in the Bill of Quantities are the estimated quantities of the work, but they are not
to be taken as the actual and correct quantities of the Works to be executed by the Contractor in
fulfilment of his contractual obligations.
The quantities may vary conforming to the actual Site conditions, due to errors or omissions in the
original Bill of Quantities, and on account of variations.
Such errors in, omissions from, or variation to the Bill of Quantities shall not in any way vitiate or
invalidate the Contract, nor shall the Contractor be entitled to any claim whatsoever except as
provided in Clauses 51 and 52 hereof.
2. Works to be measured
The Engineer shall, except as otherwise stated, ascertain and determine by actual measurement the
value in terms of the Contract of work done in accordance with the Contract.
He shall, when he requires any part or parts of the Works to be measured, give notice to the
Contractor's authorised agent or representative, who shall forthwith attend or send a qualified agent to
assist the Engineer or the Engineer's Representative in making such measurement, and shall furnish
all particulars required by either of them. Should the Contractor not attend, or neglect or omit to send
such agent, the measurement made by the Engineer or approved by him shall be taken to be the
correct measurement of the work.
For the purpose of measuring such Permanent Work as is to be measured by records and drawings,
the Engineer's Representative shall prepare records and drawings month by month of such work.
Provisional Sums
Clause 58
1. Definition of "Provisional Sum"
"Provisional Sum" means a sum included in the Contract and so designated in the Bill of Quantities for
the execution of work or the supply of goods, materials, or services, or for contingencies, which sum
Nominated Sub-Contractors
Clause 59
1. Definition of Nominated Subcontractors
All specialists, merchants, tradesmen and others executing any work or supplying any goods,
materials, or services for which Provisional Sums are included in the Contract, who may have been or
be nominated or selected or approved by the Employer or the Engineer, and all persons to whom by
virtue of the provisions of the contract the Contractor is required to sublet any work shall in the
execution of such work or the supply of such goods, materials or services, be deemed to be
subcontractors employed by the Contractor and are referred to in this Contract as "Nominated Sub-
Contractors".
2. Objection to Nomination by Nominated Subcontractors
The Contractor shall not be required by the Employer or the Engineer or be deemed to be under any
obligation to employ any nominated Subcontractor against whom the Contractor may raise reasonable
objection, or who shall decline to enter into a sub-contract with the Contractor containing provisions:
A. That in respect of the work, goods, materials or services covered by the subcontract, the
nominated Subcontractor shall undertake towards the Contractor the like obligations and
liabilities as are imposed on the Contractor towards the Employer by the terms of the
Contract and shall save harmless and indemnify the Contractor from and against the same
and from all claims, proceedings, damages, costs, charges and expenses whatsoever
arising out of or in connection therewith, or arising out of or in connection with any failure to
discharge such obligations or to meet such liabilities.
B. That the nominated Subcontractor shall save harmless and indemnify the Contractor from
and against any negligence by the nominated Subcontractor, his agents, workmen and
servants and from and against any misuse by him or them of any Constructional Plant or
Temporary Works provided by the Contractor for the purposes of the Contract and from all
claims as aforesaid.
(iii) any sums which are due and payable to the Employer by the Contractor
under the terms of the Contract.
(iv) any previous payments made by the Employer to the Contractor under the
terms of the Contract.
The Engineer shall only issue an interim certificate if the amount thereof, after deducting retention
money, partial recovery of any advance payment, any other sums which are due and payable to the
Employer under the terms of the Contract and previous interim payments, is more than the minimum
amount of interim certificates as stated in the Appendix to the Tender.
5. Monthly Payments
A. Payment upon the Engineer's Advance Payment Certificate and upon each of the Engineer's
interim certificates or in case of any objections as defined in sub-clause (b) hereafter, upon
those portions approved by the Employer shall be made by the Employer to the Contractor
within 60 days after such Certificates have been delivered to the Employer.
B In the case of the Employer objecting to or rejecting to pay in total or in part any particular
items of the certificate either:
(i) by way of a bonafide defence or counterclaim, or
(iii) where the Contract expressly gives the Employer the right to deduct monies
from sums due under the Contract.
the Employer shall notify the Engineer, with a copy to the Contractor, of his
objections within sixty days of the date of the interim certificate. In this case,
he shall pay the sums not included in the objection within the same period.
Special Risks
Clause 65
1. Absence of Liability for War Risks Etc.
Notwithstanding anything contained in the Contract:
The Contractor shall be under no liability whatsoever, whether by way of indemnity or otherwise, for or
in respect of destruction of or damage to the Works, save to Work condemned under the provisions of
Frustration
Clause 66
Payment in Event of Frustration
If a war, or other circumstances outside the control of both parties, arises after the Contract is made
so that either party is prevented from fulfilling his contractual obligations, or under the Law of the
Sultanate of Oman, the parties are released from further performance.
The sum payable by Employer to the Contractor in respect of the work executed shall be the same as
that which would have ben payable under Clause 65 hereof if the Contract had been terminated under
the provisions of Clause 65 hereof.
Clause 67
Settlement of Disputes and Arbitration
If any dispute or difference of any kind whatsoever shall arise between the Employer and the
Contractor or the Engineer and the Contractor in connection with, or arising out of the Contract, or the
execution of the Works, whether during the progress of the Works or after their completion and
Notices
Clauses 68
1. Service of Notice upon Contractor
All certificates, notices or written orders to be given by the Employer or by the Engineer to the
Contractor, under the terms of the Contract, shall be served by dispatch through registered post or
delivery to the principal office of the Contractor, his registered office or any other address specified by
the Contractor for this purpose.
2. Service of Notice upon Employer
All notices to be given to the Employer, under the terms of the Contract, shall be served by dispatch
through registered post or delivery to the address specified for this purpose in Clause 1 (I)(a) herein.
Default of Employer
Clause 69
Default of Employer
1. In the event of the Employer:
A. Failing to pay to the Contractor the amount due under any certificate of the Engineer within
sixty days after the same shall have become due under the terms of the Contract, subject to
any deduction that the Employer is entitled to make under the Contract, or
B. Interfering with or obstructing or refusing any required approval to the issue of any such
certificate, only where such action is fundamental to the execution of the work, or
C. Giving formal notice to the Contractor that for unforeseen reasons, due to economic
dislocation, it is impossible for him to continue to meet his contractual obligations the
Contractor shall be entitled to terminate his employment under the Contract after giving
fourteen days' prior written notice to the Employer, with a copy to the Engineer.
2. Upon the expiry of the fourteen-day notice referred to in sub-clause (1) of this Clause, the
Contractor shall, notwithstanding the provisions of Clause 53 (1) hereof, with all reasonable
despatch, remove from the Site all Constructional Plant brought by him thereon.
3. In the event of such termination the Employer shall be under the same obligations to the
Contractor in regard to payment as if the Contract had been terminated under the provisions of
Clause 65 hereof.
However, in addition to the payments specified in Clause 65 (8) hereof, the Employer shall pay
to the Contractor the amount of any loss or damage to the Contractor arising out of or in
connection with or by consequence of such termination.
Miscellaneous
Clause 71
Bribery and Corruption
The Employer shall be entitled to cancel the Contract and recover from the Contractor the amount of
any loss resulting from such cancellation, if the Contractor shall have offered or given or agreed to
give to any person any bribe, gift, commission or consideration of any kind as an inducement or
reward for doing or forbearing to do or having done or forborne to do any action in relation to the
obtaining or execution of the Contract, or any other contract with the Employer, or for showing or
forbearing to show favour or disfavour to any person in relation to the Contract or any other contract
with the Employer.
Clause 72
Precautions Against Fire
The Contractor shall conform to the regulations of the Employer and any other controlling authority, in
force at the Site of the Works with respect to precautions to be taken against fire hazards.
Clause 73
Confidentiality of Details
The Contractor shall treat the details of the Contract as private and confidential (save in so far as may
be necessary for the purposes hereof) and shall not publish or disclose the same or any particulars
thereof without the previous consent in writing of the Employer.
If any dispute arises as to the necessity of any publication or disclosure for the purpose of this
Contract, the same shall be referred to the decision of the Engineer whose award shall be final.
Clause 74
Photographs and Advertising
The Contractor shall not publish any photographs of the Works nor allow the Site of the Works to be
used for any form of advertising whatsoever without the prior approval in writing of the Employer.
Clause 75
Radio Communications
If during the period of the Contract the Contractor wishes to establish radio communications about the
Site, the Employer shall assist the Contractor to obtain a permit for the operation of such radio
communication.
Clause 76
Land Acquisition for Quarries, Borrow Pits and Contractor's Use
The Employer shall, where possible, assist the Contractor in the procurement of land for quarries,
borrow pits and tips for use by the Contractor.
The Contractor shall be responsible for the demarcation and establishment of areas to be
appropriated as aforesaid in locations to be approved by the Engineer and upon completion of the
Works shall be responsible for the reinstatement of these areas in the manner directed by the
Engineer.
Tender Bond No
Authorized Signatories
(To be issued by a bank registered in the Sultanate)
Authorized Signatories
(To be issued by a bank registered in the Sultanate)
Ministry of Finance
P.O. Box 506
Muscat
Sultanate of Oman.
Authorized Signatories
(To be issued by a bank registered in the Sultanate)