General Conditions of Contract (Consultancy SVCS) (BDC)
General Conditions of Contract (Consultancy SVCS) (BDC)
General Conditions of Contract (Consultancy SVCS) (BDC)
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_____________________
FOR
CONSULTANCY SERVICES
________________________
November 2018
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Table of Contents
1. General Provisions 5
1.1 Definitions and Interpretation 5
1.2 Application of These General Conditions of Contract 6
1.3 Relationship Between the Parties 6
1.4 Law Governing Contract 6
1.5 Language 6
1.6 Notices 6
1.7 Location 7
1.8 Authority of Member in Charge 7
1.9 Authorized Representatives 7
1.10 Taxes and Duties 7
1.11 Fraud and Corruption 7
1.12 Eligibility 8
2. Commencement, Completion, Modification and Termination of Contract 9
2.1 Effectiveness of Contract 9
2.2 Termination of Contract for Failure to Become Effective 9
2.3 Commencement of Services 9
2.4 Expiration of Contract 9
2.5 Entire Agreement 9
2.6 Modifications or Variations 9
2.7 Force Majeure 10
2.8 Suspension 11
2.9 Termination 11
3. Obligations of the Consultant 13
3.1 General 13
3.2 Conflict of Interests 14
3.3 Confidentiality 14
3.4 Liability of the Consultant 15
3.5 Insurance to be Taken out by the Consultant 15
3.6 Accounting, Inspection and Auditing 15
3.7 Consultant’s Actions Requiring Procuring Entity’s Prior Approval 15
3.8 Reporting Obligations 15
3.9 Documents Prepared by the Consultant to be the Property of the Procuring Entity 16
3.10 Equipment, Vehicles and Materials Furnished by the Procuring Entity 16
3.11 Equipment and Materials Provided by the Consultants 16
3.12 Contract Administration Fee 16
4. Consultants’ Personnel and Sub-Consultants 16
4.1 General 16
4.2 Description of Personnel 16
4.3 Approval of Personnel 17
4.4 Working Hours, Overtime, Leave, etc. 17
4.5 Removal and/or Replacement of Personnel 17
4.6 Resident Project Manager 18
5. Obligations of the Procuring Entity 18
5.1 Assistance and Exemptions 18
5.2 Access to Land 19
5.3 Change in the Law Related to Taxes and Duties 19
5.4 Services, Facilities and Property of the Procuring Entity 19
5.5 Payment 19
5.6 Counterpart Personnel 19
6. Payments to the Consultant 20
6.1 Contract Price and Currency 20
6.2 Type of Contract 20
6.3 Option 1 – Payments in respect of Lump Sum Contracts 20
6.4 Option 2 – Payments in respect of Time Based Contracts 20
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1. GENERAL PROVISIONS
1.1 Definitions and Interpretation
1.1.1 The definitions used in the Public Procurement and Disposal of Public
Assets Act [Chapter22:23] (“the Act”) and the Public Procurement and
Disposal of Public Assets (General) Regulations, 2018 (Statutory
Instrument 5 of 2018) (“the Regulations”), shall apply to these General
Conditions of Contract. In addition, the following words and expressions
shall have the following meanings, unless the context indicates otherwise:
“Clause” and “Sub-Clause” mean a clause or sub-clause, as the case may
be, of these General Conditions of Contract.
“Contract” means the Contract entered into between the Procuring Entity
and the Consultant, together with the Contract Documents.
“Contract Documents” means the documents listed in the Contract or
incorporated by reference in the Contract, and all attachments and
appendices to those documents as well as any amendments to them.
“Effective Date” means the date on which the Contract comes into force
pursuant to Clause 2.1.
“General Conditions of Contract”, hereinafter referred to as “GCC”,
means the conditions set out in this document.
“Key Personnel” means the Personnel referred to in Clause 4.2.1.
“Lump Sum Contract” means a contract under which the Services are
performed for an all-inclusive fixed total amount.
“Member” means any of the entities that make up the joint
venture/consortium/association; and “Members” means all these
entities.
“Party” means the Procuring Entity or the Consultant, as the case may
be, and “Parties” means both of them.
“Personnel” means professionals and support staff provided by the
Consultants or by any Sub-Consultants and assigned to perform the
Services or any part thereof.
“Reimbursable Expenses” means all assignment-related costs other than
Consultant’s remuneration.
“Services” means the services to be performed by the Consultant as
described in the Contract.
“Special Conditions of Contract”, hereinafter referred to as “SCC”,
means the conditions attached to the Contract, which shall govern the
Contract and shall prevail over these General Conditions of Contract.
“Sub-Consultants” means any person or entity to whom/which the
Consultant subcontracts any part of the Services.
“Third Party” means any person or entity other than the Procuring
Entity, the Consultant or a Sub-Consultant.
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1.6.2 A Party may change its address for notice by giving the other Party notice
in writing of such change to the address specified in the SCC.
1.7 Location
The Services shall be performed at such locations as are specified in the SCC and,
where the location of a particular task is not so specified, at such locations, whether
in Zimbabwe or elsewhere, as the Procuring Entity may approve.
1.8 Authority of Member in Charge
Where the Consultant consists of a joint venture/consortium/ association of more
than one entity, the Members hereby authorize the entity specified in the SCC to
act on their behalf in exercising all the Consultant’s rights and obligations towards
the Procuring Entity under the Contract, including without limitation the receiving
of instructions and payments from the Procuring Entity.
1.9 Authorized Representatives
Any action required or permitted to be taken, and any document required or
permitted to be executed under the Contract by the Procuring Entity or the
Consultant, may be taken or executed by the officials specified in the SCC.
1.10 Taxes and Duties
The Consultant, Sub-Consultants and Personnel shall pay such indirect taxes,
duties, fees and other impositions levied under the laws of Zimbabwe as are
specified in the SCC.
1.11 Fraud and Corruption
If the Procuring Entity determines that the Consultant and/or any Sub-Consultant
has engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in
competing for or executing the Contract, or has otherwise acted contrary to the
obligations set out in section 72 of the Act, then the Procuring Entity may, after
giving fourteen (14) days’ notice to the Consultant, terminate the Consultant’s
employment under the Contract, and Clause 2 shall apply as if such termination
had been made under Sub-Clause 2.9.1(d).
Should the Procuring Entity determine that any personnel of the Consultant or of a
Sub-Consultant has engaged in corrupt, fraudulent, collusive, coercive, or
obstructive practice during the execution of the Contract, then the Contractor shall
ensure the removal of that personnel in accordance with Clause 4.5.
In accordance with section 42 of the Regulations, submission of a bid shall be
deemed to be an undertaking on behalf of the Contractor to accept its
responsibilities under this Sub-Clause.
For the purposes of this Sub-Clause, the following terms are defined as follows:
“corrupt practice”1 means the offering, giving, receiving or soliciting, directly or
indirectly, of anything of value in order to influence improperly the actions
of another party;
1
“Another party” means a public official acting in relation to the selection process or contract
execution. In this context, “public official” includes employees of other organizations taking or
reviewing procurement decisions.
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2
A “party” means a public official; the terms “benefit” and “obligation” relate to the selection process
or contract execution; and the “act or omission” is intended to influence the selection process or
contract execution.
3
“Parties” means participants in the selection process (including public officials) attempting to
establish bid prices at artificial, non-competitive levels.
4
A “party” means a participant in the selection process or contract execution.
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2.7.3.4 During the period of their inability to perform the Services as a result
of an event of Force Majeure, the Consultant, upon instructions by the
Procuring Entity, shall either:
(a) demobilize, in which case the Consultant shall be reimbursed
for additional costs they reasonably and necessarily incurred,
and, if required by the Procuring Entity, in reactivating the
Services; or
(b) continue with the Services to the extent possible, in which case
the Consultant shall continue to be paid under the terms of the
Contract and be reimbursed for additional costs reasonably and
necessarily incurred.
2.7.3.5 In the case of disagreement between the Parties as to the existence or
extent of Force Majeure, the matter shall be settled according to
Clause 8.
2.8 Suspension
The Procuring Entity may, by written notice of suspension to the Consultant,
suspend all payments to the Consultant under the Contract if the Consultant fails to
perform any of its obligations under the Contract, including the carrying out of the
Services, provided that such notice of suspension:
(a) shall specify the nature of the failure; and
(b) shall request the Consultant to remedy such failure within a period not
exceeding thirty (30) days after receipt by the Consultant of such
notice of suspension.
2.9 Termination
2.9.1 By the Procuring Entity
The Procuring Entity may terminate the Contract if any of the following
events occur:
(a) If the Consultant fails to remedy a failure in the performance of its
obligations hereunder, as specified in a notice of suspension pursuant
to Clause 2.8, within thirty (30) days of receipt of a notice of
suspension or within such further period as the Procuring Entity may
have subsequently approved in writing.
(b) If the Consultant becomes (or, if the Consultant consists of more than
one entity, if any of its Members becomes) insolvent or bankrupt or
enters into any agreement with its creditors for relief of debt or takes
advantage of any law for the benefit of debtors or goes into
liquidation or receivership, whether compulsory or voluntary.
(c) If the Consultant fails to comply with any final decision reached as a
result of arbitration proceedings pursuant to Clause 8.
(d) If the Consultant, in the opinion of the Procuring Entity, has engaged
in corrupt or fraudulent practices in competing for or in executing the
Contract.
(e) If the Consultant submits to the Procuring Entity a false statement
which has a material effect on the rights, obligations or interests of
the Procuring Entity.
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(f) If, as the result of Force Majeure, the Consultant is unable to perform
a material portion of the Services for a period of not less than sixty
(60) days.
(g) If the Procuring Entity, in its sole discretion and for any reason
whatsoever, decides to terminate the Contract.
If any such event occurs, the Procuring Entity shall give not less than thirty
(30) days’ written notice of termination to the Consultant, except where the
event referred to in paragraph (d) occurs, when the Procuring Entity may
terminate the Contract with immediate effect.
2.9.2 By the Consultant
The Consultant may terminate the Contract, by not less than thirty (30)
days’ written notice to the Procuring Entity, if any of the following events
occurs:
(a) if the Procuring Entity fails to pay any money due to the Consultant
pursuant to the Contract and not subject to dispute pursuant to Clause
8 within forty-five (45) days after receiving written notice from the
Consultant that such payment is overdue;
(b) if, as the result of Force Majeure, the Consultant is unable to perform
a material portion of the Services for a period of not less than sixty
(60) days;
(c) if the Procuring Entity fails to comply with any final decision reached
as a result of arbitration pursuant to Clause 8;
(d) if the Procuring Entity is in material breach of its obligations pursuant
to the Contract and has not remedied the breach within forty-five (45)
days (or such longer period as the Consultant may have subsequently
approved in writing) following the receipt by the Procuring Entity of
the Consultant’s notice specifying such breach.
2.9.3 Cessation of Rights and Obligations
Upon termination of the Contract pursuant to Clause 2.2 or 2.9, or upon
expiration of the Contract pursuant to Clause 2.4, all rights and obligations
of the Parties under the Contract shall cease, except:
(a) such rights and obligations as may have accrued on the date of
termination or expiration;
(b) the obligation of confidentiality set forth in Clause 3.3;
(c) the Consultant’s obligation to permit inspection, copying and auditing
of its accounts and records set forth in Clause 3.6; and
(d) any right which a Party may have under the laws of Zimbabwe.
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3.3 Confidentiality
Except with the prior written consent of the Procuring Entity, the Consultant and
the Personnel shall not at any time communicate to any person or entity any
confidential information acquired in the course of the Services, nor shall the
Consultant and the Personnel make public the recommendations formulated in the
course of, or as a result of, the Services.
3.4 Liability of the Consultant
The Consultants’ liability under the Contract shall be provided by the laws of
Zimbabwe.
3.5 Insurance to be Taken out by the Consultant
The Consultant:
(a) shall take out and maintain, and shall cause any Sub-Consultants to
take out and maintain, at their (or the Sub-Consultants’, as the case
may be) own cost but on terms and conditions approved by the
Procuring Entity, insurance against the risks, and for the coverages
specified in the SCC; and
(b) at the Procuring Entity’s request, shall provide evidence to the
Procuring Entity showing that such insurance has been taken out and
maintained and that the current premiums therefore have been paid.
3.6 Accounting, Inspection and Auditing
The Consultant shall permit the Procuring Entity and/or persons appointed by the
Procuring Entity to inspect its accounts and records as well as those of its Sub-
Consultants relating to the performance of the Contract. The Consultant’s attention
is drawn to Clause 1.9 which provides, inter alia, that acts intended to materially
impede the exercise of the Procuring Entity’s inspection and audit rights provided
for under this Clause constitute a prohibited practice subject to contract
termination.
3.7 Consultant’s Actions Requiring Procuring Entity’s Prior Approval
The Consultant shall obtain the Procuring Entity’s prior approval in writing before
taking any of the following actions:
(a) any change or addition to the Personnel listed in Appendix B of the
Contract or to their working hours or period of engagement;
(b) subcontracts: The Consultant may subcontract work relating to the
Services to an extent and with such experts and entities as may be
approved in advance by the Procuring Entity. Notwithstanding such
approval, the Consultant shall retain full responsibility for the
Services. In the event that any Sub-Consultants are found by the
Procuring Entity to be incompetent or incapable in discharging
assigned duties, the Procuring Entity may request the Consultant to
provide a replacement, with qualifications and experience acceptable
to the Procuring Entity, or to resume the performance of the Services
itself;
(c) any other action that may be specified in the SCC.
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5.5 Payment
In consideration of the Services performed by the Consultant under the Contract,
the Procuring Entity shall make to the Consultant such payments and in such
manner as is provided by Clause 6.
5.6 Counterpart Personnel
5.6.1 The Procuring Entity shall make available to the Consultant free of charge
such professional and support counterpart personnel, to be nominated by
the Procuring Entity with the Consultant’s advice, if specified in the SCC.
5.6.2 If counterpart personnel are not provided by the Procuring Entity to the
Consultant as and when specified in the SCC, the Procuring Entity and the
Consultant shall agree on:
(a) how the affected part of the Services shall be carried out, and
(b) the additional payments, if any, to be made by the Procuring Entity to
the Consultant as a result thereof pursuant to Clause 6.7.2.
5.6.3 Professional and support counterpart personnel, excluding Procuring
Entity’s liaison personnel, shall work under the exclusive direction of the
Consultant. If any member of the counterpart personnel fails to perform
adequately any work assigned to such member by the Consultant that is
consistent with the position occupied by such member, the Consultant may
request the replacement of such member, and the Procuring Entity shall not
unreasonably refuse to act upon such request.
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6.3.2 The Contract Price may be increased only through amendment of the
Contract in accordance with Clause 2.6.
6.3.3 The price for any additional services, as may be agreed in accordance with
Clause 2.6, shall be determined using the Breakdown of Contract Price in
the Contract.
6.4 Option 2 – Payments in respect of Time Based Contracts
6.4.1 The Contract Price shall be a maximum amount, based on the Breakdown
of Cost Estimates in the Contract.
6.4.2 Payment shall be made for the time actually spent and for reimbursable
expenses actually incurred by the Consultant in the performance of the
Services.
6.4.3 Fees for the Personnel shall be determined on the basis of time actually
spent by the Personnel in the performance of the Services after the date
determined in accordance with the Commencement Date of the Services, or
such other date as the Parties may agree in writing, and at the rates
specified in the Contract. Personnel time spent in the performance of the
Services shall include time for necessary travel via the most direct route, at
the rates detailed in the Contract, unless otherwise specified in the SCC.
6.4.4 Reimbursable expenditures shall include costs actually and reasonably
incurred by the Consultant in the performance of the Services, as specified
in the Contract.
6.4.5 The Consultant’s total remuneration shall not exceed the Contract price.
The Consultant shall notify the Procuring Entity as soon as cumulative
charges incurred for the Services have reached 80% of the Contract price.
6.4.6 Separate invoices shall be submitted for fees and for reimbursable
expenditure.
6.4.7 A final payment shall be made against submission by the Consultant of a
final statement, identified as such and approved by the Procuring Entity.
The final statement shall be deemed approved by the Procuring Entity
ninety calendar days after receipt by the Procuring Entity unless the
Procuring Entity, within this period, gives written notice to the Consultant
specifying in detail deficiencies in the Services, the deliverables or the final
statement.
6.4.8 Any amount which the Procuring Entity has paid or caused to be paid
which is in excess of the amounts actually payable in accordance with the
provisions of the Contract, shall be reimbursed by the Consultant to the
Procuring Entity within thirty (30) days after receipt by the Consultant of a
notice thereof. Any such claim by the Procuring Entity for reimbursement
must be made within twelve months after receipt by the Procuring Entity of
a final statement approved by the Procuring Entity.
6.5 Payment Schedule and Advance Payments
6.5.1 All payments under the Contract shall be made in accordance with the
payment schedule specified in the SCC.
6.5.2 All payments under the Contract shall be made to the accounts of the
Consultant specified in the SCC.
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6.5.3 Unless otherwise stated in the SCC, where any payment is made in advance
of any deliverables as an advance payment, the payment shall be made
against the provision by the Consultant of a bank guarantee for the same
amount, and shall be valid for the period stated in the SCC.
6.5.4 Should the advance payment guarantee cease to be valid and the Consultant
fails to re-validate it, a deduction equal to the amount of the advance
payment may be made by the Procuring Entity from future payments due to
the Consultant under the Contract.
6.5.5 If a Contract is terminated for any reason, the guarantee securing the
advance may be invoked in order to recover the balance of the advance still
owed by the Consultant.
6.6 Payment Terms
6.6.1 Unless otherwise specified in the SCC, payments shall be made by the
Procuring Entity, no later than sixty (60) days after submission of a request
for payment by the Consultant.
6.6.2 The Consultant’s request for payment shall be made to the Procuring Entity
in writing, accompanied by invoices and supporting documents. The
supporting documentation required shall be as specified in the SCC.
6.6.3 The Procuring Entity shall notify the Consultant of the inadmissibility of a
request for payment due to an error, discrepancy, omission or any other
reason so that the Parties may resolve such error, discrepancy, omission or
other fault and agree a solution to enable payment of the corrected request
for payment. The Procuring Entity shall not unreasonably withhold
payment of any undisputed portion of a request for payment. Should any
discrepancy be found to exist between actual payment made and costs
authorised to be incurred by the Consultant, the Procuring Entity may add
or subtract the difference from any subsequent payments.
6.6.4 Unless otherwise stated in the SCC, if the Procuring Entity has delayed
payments beyond fifteen (15) days after the due date stated in the SCC,
interest shall be paid to the Consultant for each day of delay at the inflation
rate published by the Reserve Bank of Zimbabwe at http://www.rbz.co.zw.
6.7 Price Adjustments and Increases
6.7.1 Prices charged by the Consultant for the Services performed under the
Contract shall not vary from the prices quoted in the Contract, with the
exception of any price adjustments authorised in the SCC.
6.7.2 Notwithstanding Clauses 6.3 and 6.4, if pursuant to Clause 5.3, 5.4 or 5.6,
the Parties agree that additional payments shall be made to the Consultant
in order to cover any necessary additional expenditures not envisaged in the
cost estimates referred to in Clause 6.1, the Contract Price set forth in
Clause 6.1 shall be increased by the amount or amounts, as the case may be,
of any such additional payments.
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8. SETTLEMENT OF DISPUTES
8.1 Amicable Settlement
The Procuring Entity and the Consultant shall make every effort to resolve
amicably, by direct informal negotiation, any disagreement or dispute arising
between them under or in connection with the Contract or its interpretation.
8.2 Dispute Resolution
8.2.1 If, after twenty-eight (28) days, the Parties have failed to resolve their
dispute or difference by such mutual negotiation, then either Party may give
notice to the other Party of its intention to commence arbitration under the
Arbitration Act [Chapter 7:15], as amended.
8.2.2 Notwithstanding any reference to arbitration in the Contract:
(a) the Parties shall continue to perform their respective obligations under
the Contract unless they otherwise agree; and
(b) the Procuring Entity shall pay the Consultant any moneys due to the
Consultant.
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