TableofContents

Cover

Titlepage

WhyisReadingThisBookofValue?

Acknowledgements

0Concept-flowDiagraming

WhichisWhich?DifferentiatingAmongObligations,ResponsibilitiesandRights

SummaryTable

1GeneralProvisions

1.2Interpretation

1.3Communications

1.4LawandLanguage

1.5PriorityofDocuments

1.6ContractAgreement

1.7Assignment

1.8CareandSupplyofDocuments

1.9ErrorsintheEmployer’sRequirements

1.10Employer'sUseofContractor'sDocuments

1.11Contractor’sUseofEmployer’sDocuments

1.12ConfidentialDetails

1.13CompliancewithLaws

1.14JointSeveralLiability

2TheEmployer

2.1RightofAccesstotheSite

2.2Permits,LicencesorApprovals

2.3Employer’sPersonnel

2.4Employer’sFinancialArrangements

2.5Employer’sClaims

3TheEngineer

3.1Engineer’sDutiesandAuthority

3.2DelegationbytheEngineer

3.3InstructionsoftheEngineer

3.4ReplacementoftheEngineer

3.5Determinations

4TheContractor

4.1Contractor’sGeneralObligations

4.2PerformanceSecurity

4.3Contractor’sRepresentative

4.4Subcontractors

4.5NominatedSubcontractors

4.6Co-Operation

4.7SettingOut

4.8SafetyProcedures

4.9QualityAssurance

4.10SiteData

4.11SufficiencyoftheAcceptedContractAmount

4.12UnforeseeablePhysicalConditions

4.13RightsofWayandFacilities

4.14AvoidanceofInterference

4.15AccessRoute

4.16TransportofGoods

4.17Contractor’sEquipment

4.18ProtectionoftheEnvironment

4.19Electricity,WaterandGas

4.20Employer’sEquipmentandFree-IssueMaterial

4.21ProgressReports

4.22SecurityoftheSite

4.23Contractor’sOperationsonSite

4.24Fossils

5Design

5.1GeneralDesignObligations

5.2Contractor’sDocuments

5.3Contractor’sUndertaking

5.4TechnicalStandardsandRegulations

5.5Training

5.6As-BuiltDocuments

5.7OperationandMaintenanceManuals

5.8DesignError

6StaffandLabour

6.1EngagementofStaffandLabour

6.2RatesofWagesandConditionsofLabour

6.3PersonsintheServiceofEmployer

6.4LabourLaws

6.5WorkingHours

6.6FacilitiesforStaffandLabour

6.7HealthandSafety

6.8Contractor’sSuperintendence

6.9Contractor’sPersonnel

6.10RecordsofContractor’sPersonnelandEquipment

6.11DisorderlyConduct

7Plant,MaterialsandWorkmanship

7.1MannerofExecution

7.2Samples

7.3Inspection

7.4Testing

7.5Rejection

7.6RemedialWork

7.7OwnershipofPlantandMaterials

7.8Royalties

8Commencement,DelaysandSuspension

8.1CommencementofWork

8.2TimeforCompletion

8.3Programme

8.4ExtensionofTimeforCompletion

8.5DelaysCausedbyAuthorities

8.6RateofProgress

8.7DelayDamages

8.8SuspensionofWork

8.9ConsequencesofSuspension

8.10PaymentforPlantandMaterialsinEventofSuspension

8.11ProlongedSuspension

8.12ResumptionofWork

9TestsonCompletion

9.1Contractor’sObligations

9.2DelayedTests

9.3Retesting

9.4FailuretoPassTestsonCompletion

10Employer’sTakingOver

10.1TakingOveroftheWorksandSections

10.2TakingOverofPartsoftheWorks

10.3InterferencewithTestsonCompletion

10.4SurfacesRequiringReinstatement

11DefectsLiability

11.1CompletionofOutstandingWorkandRemedyingDefects

11.2CostofRemedyingDefects

11.3ExtensionofDefectsNotificationPeriod

11.4FailuretoRemedyDefects

11.5RemovalofDefectiveWork

11.6FurtherTests

11.7RightofAccess

11.8ContractortoSearch

11.9PerformanceCertificate

11.10UnfulfilledObligations

11.11ClearanceofSite

12TestsafterCompletion

12.1ProcedureforTestsAfterCompletion

12.2DelayedTests

12.3Retesting

12.4FailuretoPassTestsAfterCompletion

13VariationsandAdjustments

13.1RighttoVary

13.2ValueEngineering

13.3VariationProcedure

13.4PaymentinApplicableCurrencies

13.5ProvisionalSums

13.6Daywork

13.7AdjustmentsforChangesinLegislation

13.8AdjustmentsforChangesinCost

14ContractPriceandPayment

14.1TheContractPrice

14.2AdvancePayment

14.3ApplicationforInterimPaymentCertificates

14.4ScheduleofPayments

14.5PlantandMaterialsIntendedfortheWorks

14.6IssueofInterimPaymentCertificates

14.7Payment

14.8DelayedPayment

14.9PaymentofRetentionMoney

14.10StatementatCompletion

14.11ApplicationforFinalPaymentCertificate

14.12Discharge

14.13IssueofFinalPaymentCertificate

14.14CessationofEmployer'sLiability

14.15CurrenciesofPayment

15TerminationbyEmployer

15.1NoticetoCorrect

15.2TerminationbyEmployer

15.3ValuationatDateofTermination

15.4PaymentAfterTermination

15.5Employer’sEntitlementtoTermination

16SuspensionandTerminationbyContractor

16.1Contractor’sEntitlementtoSuspendWork

16.2TerminationbyContractor

16.3CessationofWorkandRemovalofContractor’sEquipment

16.4PaymentonTermination

17RiskandResponsibility

17.1Indemnities

17.2Contractor’sCareoftheWorks

17.3Employer’sRisks

17.4ConsequencesofEmployer’sRisks

17.5IntellectualandIndustrialPropertyRights

17.6LimitationofLiability

18Insurance

18.1GeneralRequirementsforInsurances

18.2InsuranceforWorksandContractor’sEquipment

18.3InsuranceAgainstInjurytoPersonsandDamagetoProperty

18.4InsuranceforContractor’sPersonnel

19ForceMajeure

19.1DefinitionofForceMajeure

19.2NoticeofForceMajeure

19.3DutytoMinimizeDelay

19.4ConsequencesofForceMajeure

19.5ForceMajeureAffectingSub-Contractor

19.6OptionalTermination,PaymentandRelease

19.7ReleasefromPerformanceUndertheLaw

20Claims,DisputesandArbitration

20.1Contractor'sClaims

20.2AppointmentoftheDisputeAdjudicationBoard

20.3FailuretoAgreeDisputeAdjudicationBoard

20.4ObtainingDisputeAdjudicationBoard’sDecision

20.5AmicableSettlement

20.6Arbitration

20.7FailuretoComplyWithDisputeAdjudicationBoard’sDecision

20.8ExpiryofDisputeAdjudicationBoard’sAppointment

Keywords

EndUserLicenseAgreement

FIDICPlantandDesign-BuildFormof

ContractIllustrated

RaveedKhanlariandMahdiSaadatFard

FarabEnergyandWaterProjects

WILEYBlackwell

Thiseditionfirstpublished2015

?2015byJohnWiley&Sons,Ltd.

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Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmitted,inanyformorbyanymeans,electronic,mechanical,photocopying,recordingorotherwise,exceptaspermittedbytheUKCopyright,Designs

andPatentsAct1988,withoutthepriorpermissionofthepublisher.

Designationsusedbycompaniestodistinguishtheirproductsareoftenclaimedastrademarks.Allbrandnamesandproductnamesusedinthisbookaretradenames,servicemarks,trademarksorregisteredtrademarksoftheirrespectiveowners.Thepublisherisnotassociatedwithanyproductorvendormentionedinthisbook.

LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthor(s)haveusedtheirbesteffortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespecttotheaccuracyorcompletenessofthecontentsofthisbookand

specificallydisclaimanyimpliedwarrantiesofmerchantabilityorfitnessforaparticularpurpose.Itissoldontheunderstandingthatthepublisherisnotengagedinrenderingprofessionalservicesandneitherthepublishernortheauthorshallbeliablefor

damagesarisingherefrom.Ifprofessionaladviceorotherexpertassistanceisrequired,theservicesofacompetentprofessionalshouldbesought.

LibraryofCongressCataloging-in-PublicationData

Khanlari,Raveed,author.

FIDICplantanddesign-buildformofcontractillustrated/RaveedKhanlari,FarabEnergyandWaterProjects;MahdiSaadatFard,FarabEnergyandWaterProjects.

pagescm

Includesbibliographicalreferencesandindex.ISBN978-1-118-89621-1(pbk.)

1.Engineeringcontracts.2.Architecturalcontracts.3.Standardizedtermsofcontract.4.FIDICplantanddesign-buildformsofcontract.5.InternationalFederationofConsultingEngineers.I.SaadatFard,Mahdi,author.II.Title.III.Title:Fédérationinternationaledesingénieurs-conseilsplantanddesign-buildformsofcontractillustrated.

K891.B8K432015346.02′4–dc23

2015017184

AcataloguerecordforthisbookisavailablefromtheBritishLibrary.

Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsinprintmaynotbeavailableinelectronicbooks.

Coverimage:?FARAB

Iwouldlikededicatethisbookto:

·Mywife,Noushin,whoseloveandsupportdrovemetostartoverstudyingandresearchingmoreprofessionallyanddecisively.

·Mylovelyson,Radeen,whoshallberewardedforhispatienceduringthecompilationofthisbook:Radeen,shallwegoplayingStarWars?!

·Mydad,whoisrestlesslylookingforhischildren’s–andindeedallhisfamily’s–comfortandprosperity.

·Thememoryofmylatemother,ParirokhSamanipour,theveryfirstpersonwhotaughtmetoreadandwriteandboughtmemyfirstbook.

Raveed

December2014

Tomylovelywife,Mehri,andmysweetlittleArtin.

Mahdi

December2014

WhyisReadingThisBookofValue?

Thisbook,FIDICFormofContractIllustrated,isintendedtoofferthereaderabetter

understandingoftheInternationalFederationofConsultingEngineers’(FIDIC)ConditionsofContractforPlantandDesign-Buildthroughaseriesofdiagrams.Suchdiagramsare

includedinmanybooks,butthereisnotasingleonethatisbasedsolelyonsuchavisualmethod.

Infact,thebooktakesadifferentapproachtootherbooksonthemarketabouttheFIDIC’s

FormsofContract,asitismainlybasedonshowinghowthesub-clausesoftheFIDICYellowBookfunctionthroughtheuseofquiteuniqueflowcharts.Mostoftheavailablepublications

focusoninterpretingsomeimportantsub-clauses’purposesortheFIDIC’sFormsofContractasawhole,ratherthanrelyingprimarilyonavisualrepresentationofthetextitself.These

booksaremainlyaimedatlawyersandcontractprofessionals,andtakearigorouslegal

approach,withcasecitations,etc.,thatareessentialinalegalcontext.Incomparisonwiththescientific/professionaleffortsofotherrelevantbooks,visualizationoftheFIDICYellowBookisthusthemostimportantadvantageofthisbook,anditisapowerfultoolthatwillreward

dailyconsultationduringtheadministrationofacontract.

Engineersarelessinterestedinthetheoreticallegalbackgroundandmoreinterestedinhowthecontractsshouldbeappliedinpractice.Thespecificuseofflowcharts,termed“theconcept

flow”,whichisafamiliarmeansofrepresentingsuchmatterstothisreadership,ispreferabletootherapproachesandshouldbewelcomed.Asaresult,itisanticipatedthatthisbookwill,forthemostpart,bereadandreferredtobyengineersinvolvedincontractadministration,intheroleoftheEmployer’sRepresentative,theContractor’sRepresentativeortheEngineer,

ratherthanbyothers.Inaddition,thereisaneedforthisbook,particularlyamongbeginnersinthefieldofconstructioncontracts,anditwillmakeagoodcompanionforthoseseekingto

understandthecomplexlanguageofsuchaninternationalformofcontract.Itsgreatesttechnicalappealwillbetostudentsandthosewhodonothaveathoroughunderstandingofthese

conditionsofcontract.

Byglancingatthetableofcontents,youwillseethatthebookcoversallthesub-clausesoftheFIDICYellowBook,thusillustratinganypartofthetextthatonemaybeseekinghelpto

understand.

TheFIDICYellowBookisalegaldocumentandtheprecisemeaningofitsvariousclauses

willdependoneachandeverywordofthecontract.Inordertoavoidanyinterpretationofthewordsthatmaynotbeconsistentwiththewayacourtorarbitraltribunalwouldconstruethem,thebookusestheexactwordings.Butwhentherehasbeenanecessitytocompletetheflowofconceptsinagivensub-clause,authorshaveinsertedanaddendumthatappearsbetweenthebraces{…}andingrey.Westrictlyadvisethatthisbookbeusedasacompaniontothe

originaltextofFIDIC’sConditionsofContractforPlantandDesign-Build.

Differentconceptsandkeyissues(e.g.notices,timeperiods,eachparty’sobligationsor

entitlements,etc.)areexhibitedthroughdifferentdesignatedshapes/indicators.The

associationsofonesub-clausetoothercontractdocuments(e.g.theParticularConditions,theAppendixtoTender,theEmployer’sRequirements,theSchedules,etc.)orothersub-clausesareclearlymentionedthroughtheuseofspecialindicatorsaswell.

Throughoutthebook,youwillseesomeothervisualrepresentations,suchascolourcoding,whichidentifytheunderlyingconceptand/orissue.Alloftheseindicatorshavebeendeployedtodrawthereader’sattentioninstantlyandsmoothlytoalltheimportantissuesinagivensub-clause.

Acknowledgements

Whilewewereembarkedonthejourneyofwritingthisbook,anumberofpeoplesharedwithustheirexperiencesandknowledgeregardingmattersrelatedtoit,suchthat,whenweturnthepages,theirpresenceisapparenttousincertainwords,phrasesandpartsofthisworkina

waythatreaderswillscarcelynotice.Butsuchmementoswillalwaysremindusofspecialmomentsfromthatjourneyandwearedeeplythankfultothosepeopleformakingitsouniqueandmemorable.

WewouldliketothankourcolleaguesinFarab’sCommercialDepartment,especiallythoseintheContractsDivision–KambizTaheri,ShahnazVasheghaniandNedaBahrami–whohelpedusagreatdealingettingaclearerideaoftheconceptsbehindmanycontractualmattersthrough

aseriesofconstructivediscussionsandquestion-and-answersessions.WeappreciatethepositiveattitudethatHormozShafianiexpressedandheldtowardsthisprojectandwhichencouragedustomakeaconcertedeffortintacklingit.Wewouldalsoliketothank

MohammadSadeghi,asarepresentativeofFarab’smanagement,forhissupport.WewouldalsoliketoofferadeepsenseofrespecttoMahdiShafeghatiwhosetouchleftanindeliblemarkonsomepartsofthebook.WeshouldexpressoursincerethankstoFèdèration

InternationaledesIngénieurs-Conseils(FIDIC)andhisCommercialDirector,Fran?ois

Baillon,forpermissiontore-usethetextofFIDICP&DB,asitappearsinthebook.AndwegiveoursincerethankstoVincentLeloup,thesenioradvisortoFIDIC,whoseveryfirst

commentsonourworkdroveourpassiontodeliveritasabook.AndlastbutnotleastwethankWiley’seditorialteamintheConstructionandCivilEngineeringDepartment–ledbyPaulSayer–fortheopportunitytheygaveustomakethisworkhappen.

0

Concept-flowDiagraming

AnIdiosyncraticTechnique

Thisbookisanillustrationofcontractualmatters,inthelightofaninventedtechniquecalled“concept-flowdiagramming”.Thetechniqueappliesarangeofindicators,varyingfrom

coloursandpunctuationmarkstogeometricalandcompositionalshapes,todemystifythe

jargonofcontractualmatters.Byusingthisrangeofelements,wehaveaimedtoillustratea

formofcontractthatiswidelyappliedinanumberofinfrastructureprojectsaroundtheglobe,inordertohelpthosepeopleinsufficientlyacquaintedwithcontractualandlaw-relatedcontenttoreadandunderstanditmoreeasily.Althoughthesesortsofelementsmayappearquite

familiarandlong-established,andthereforenotrequireintroductionanddefinitionyetagain,theirapplicationinthisbookishighlyspecificinordertohallmarkagivensub-clause’s

meaningandpacewithinitstextualboundaries.

Amongsuchelements,shapeswillplaythemajorroleinunderliningactionsand/orfactsthroughwhichtheconceptflowofeachsub-clauseemerges.Byemployingamixtureof

geometricalandcompositionalshapes,theseactionsandfactsareclassifiedinaccordancewiththemattersthatfrequentlyariseinagivencontract(e.g.responsibilities,obligations,entitlements,etc.)toeasilyidentifytheoneinquestion.

Inthissection,youwillbeintroducedtothemeaningandapplicationofeachshapeaswellasotherindicators,whichwillhelpyoutogettogripswiththeideabehindtheconcept-flow

diagrammingtechnique.Gettingagoodgraspofthetechnique’sphilosophywillguaranteeaquickunderstandingoftheflowofconcepts,andtheimplicationsofanysub-clausesinthe

FIDIC’sConditionsofContractforPlantandDesign-Build(P&DB)

.a

Youwillthenseethedegreetowhichillustrationofacontractclausecanimprovethereadabilityofthetext,

especiallywhendealingwithcontroversialanddebatableissues.

WhichisWhich?DifferentiatingAmongObligations,ResponsibilitiesandRights

Hexagon[INITIATION/PURPOSE]

Inmostcases,asub-clauseisreferredtoonceaneventorcircumstancearises(oris

anticipatedtoarise)duringtheprojectlifecycle.Hexagonsareusedtoshowsucheventsorcircumstancesviawhichthemeaningofagivensub-clauseispracticallyconveyed.Itis

mainlyintendedtoshowthereasonand/orconditionsthatjustifytheexistenceofanygiven

sub-clause.

Wehavechosenanexcerptofthesub-clauseitselfthatisrelevanttosuchinitiationand

incorporatedthisintothehexagon.Wherethishasnotbeenpossible,analternatewordingisincludedinthehexagon(s)toexplainthepurposeofthatsub-clause.

Example.Considerthesentencesbelowastheopeningpartsoftwoseparatesub-clauses:

1.“TheEmployershallprovidereasonableassistancetotheContractorattherequestoftheContractor.”

Here,theactioncanbeeasilyrecognizedbytheverbitself.Theverb“provide”triggerstheconceptflowinthisexample,andthesubjectofthesentence–theEmployer–istheinitiator.Thus,thehexagonofsuchasub-clausewillembracetheexactwordingoftheopeningsentence,asfollows:

2.“UnlessotherwisestatedintheParticularConditions:

a.theContractPriceshallbelumpsumAcceptedContractAmount,

b.theContractorshallpayalltaxes,and

c.anyquantitiesinastatementareestimatedquantities.”

Theaboveexampleisquitedifferentindefiningtheinitiation.Thesubjectofthesentenceisnotanactor,andthereforecannotberegardedastheinitiator.Infact,thesub-clause’spurposeistodefinesomefactsabouttheContractPrice.Inthiscase,thewordingofthetextinsidethehexagonisanadditiontotheoriginaltextofthesub-clausetoreflectwhatitspurposemightbe:

Notethegreycolourofthetextandthebrackets,bothindicatingthatthetextisnotapartoftheoriginaltranscript.

Itisworthrememberingthatmostofthesub-clauses’diagramscontainonlyonehexagon.Buttherearesomeexceptionsinwhichthediagramincludestwoormorehexagons(e.g.the

diagramforSub-Clause17.1[Indemnities]).

Sometimes,youneedtoaskoneortwoquestionsbeforeyoucaneffectuateasub-clause’s

provisions.Insuchcircumstances,hexagonsarenotautomaticallypositionedatthebeginningofthediagram,andareonlyinsertedassoonastheprerequisitesarefulfilled(e.g.thediagramforSub-Clause15.1[NoticetoCorrect]).

Rectangle[ACTION]

Themainreasonforusingthiskindofgeometricalshapeistoshowanobligation(s)isreferredtoinasub-clause.Inmostcases,obligationsevolveintovariousformsofaction.Inother

words,itwouldbepossibletohavemorethanoneactioninasub-clause,sorectanglesareusedproportionallytorepresentsuchactionsinthediagram.

Example.Supposethesentencebelowisapartofaparagraphinthemiddleofasub-clause:

“TheEmployershallgivetheContractorrightofaccesstotheSitewithinthetimeasrequired.”

Theactiveformoftheverbandthesubjectofthesentence–whichisoneofthecontract

parties–remindthereaderofanobligationthatshallbetaken/assumedbyanactor(heretheEmployer),thusjustifyingtheuseofarectangletoillustratethispartofthetext:

Notethattheendingofthesentenceisnotincludedinsidetherectangleasitreferstoatimeconcept.Wehavedevisedaseparateshapefortemporalconceptsandthisisdetailedinthe“semi-rectanglesemi-oval”sectionlaterinthischapter.

Double-sidedrectangle[ACTIONUNDEROTHER

CONTRACTUALPROVISIONS]

Thisshapealsorepresentsanaction,butunderprovisionsofanothersub-clauseand/orothercontractdocuments(e.g.ParticularConditionsofContract).

Example.ThefollowingsentenceembodiesanactionthatisduetobefollowedundertheprovisionoftheParticularConditionsoftheContract:

“TheContractorcarriesouttheTestsonCompletioninconformitywiththeParticularConditions.”

Thisshapeisintendedtosignifythelinkagesofagivensub-clausetothecontract’sothersub-clausesand/ordocuments.

Roundedrectangle[ALTERNATE

ACTIONS/FRAGMENTATION]

Roundedrectanglesrepresentalternateactions;thatis,theyareappliedtoanygivenaction

whenatleastoneotheroptionexiststhatcouldbefollowedinstead.Notethatthisoptionmaybeasimpleaction(statedasasimplesentencewithanactiveform)oritmayemergeasa

separateprocedureitself.Here,weuseasimplifiedexampletoshowasimpleaction.

Example.Considerthefollowingsentence:

“…,theEmployershallrejecttheWorks,issueaTaking-OverCertificate,ororderfurtherrepetitionoftheTestsonCompletion.”

Asyoucansee,theEmployerherehasthreeoptionstoproceed:(i)rejecttheWorks;(ii)issueaTaking-OverCertificate;or(iii)orderfurtherrepetitionoftheTestsonCompletion.We

definethesethreeoptionsassimpleactions(oneofwhichistobepursuedbytheEmployer)anddrawthediagramforthisexampleasshowninthefigurebelow:

The“OR”indicator(youwilllearnaboutthisinthesectionon“conjunctionshapes”)isalsousedtoattractthereader’sattentiontothefactthattheprocedurecouldendupwithonlyoneoftheactionsstatedintheroundedrectangles.

NotethataseparateprocedurecoulditselfbeconsideredanalternativeactiontobeinsertedintothediagramasanoptionaftertheORindicator.Assuch,asub-processmayinclude

severalshapes,alltobeconsideredonealternateactioninsteadoftheotherchoices.

Roundedrectanglesarealsousedforanotherpurpose.Theyhighlightthefragmentsresultingfromthebreakdownofaparagraph,sentenceorphrase.Insuchcases,thedivisionofthe

wordsorphrasesisconsideredtoenhancethereadabilityofthetextanddrawthereader’s

attentionmorecloselytosuchmatters.

Example.Readthetwoexamplesbelow:

1.“TheEmployershallprovideassistancetotheContractor:

a.byobtainingcopiesoftheLawsoftheCountry,and

b.fortheContractor’sapplicationsforanypermits,licencesorapprovals.”

LiketheORindicatorintheprecedingexample,theANDindicatorisusedtounderlinethemutualrelationshipsofsub-paragraphs(pleaserefertothesectionon“conjunctionshapes”).Thelastshapeinthefigure,thetarget,affirmsthatsuchfragmentationsaftertheANDindicatorshallbeconsideredandconstruedalltogether.

2.“TheEmployershallgiveparticularstotheContractor.Theparticularsshallspecify

theClauseorotherbasisoftheclaim.”

Thefragmentationindicatedinthesecondexamplesignifiestheitemsthatthereadershouldbemorecarefulaboutwhenperusingthetext.(ForanexplanationofthetextwrittenonthesidesofthearrowdrawnfromtheORindicator,pleaserefertothenoteinthe“parallelogram”section.)

Crookedrectangle[FACTRELATINGTOPARTIESOR

ANOTHERPERSON]

Sometimesasentenceinformsyouofafactratherthananaction.Weusecrookedrectanglesto

divertattentionfromactionstofacts,butonlythosethatarerelatedtopersons.Readingaboutsuchfactsmayinformthereaderoftherightsorresponsibilitiesapartytothecontractmayhaveorhold.

Thebenefitofdifferentiatingbetweentherectangleandthecrookedrectangleisthatreaderscanquicklydistinguishobligations(actions/restrictions)fromrights/responsibilities(facts)thatthepartiesmayhave.

Verbsinthesentencesthatindicateafactareofteninthepassiveform,althoughthatshouldnotbeassumedasageneralrule(someverbs,suchas“warrant”or“undertake”,conveya

responsibilityforratherthananobligationtobeperformedbytheirsubject).Youcanseesuchapassivevoiceinthefollowingexample.

Example.Assumethefollowingsentenceasanexcerptfromasub-clause:

“TheContractorshallbeentitledtopaymentofCost,plusreasonableprofit.”

Uponreadingthissentence,youdonotexpecttheContractortoperformaspecifictaskortakeaparticularaction;rather,youcouldsaythatitmerelyreferstoarighttoreceiveapayment.Thissentencewouldthereforebeshownonthediagrambythecrookedrectangle:

Indepictingtheconceptflowofasub-clauseonadiagram,facts(insomecases)willnotholdapositioninthemainstreamofthatconcept,butratheremergeascomplementarydatatotheactionsorotherexistingfacts.Considerthefollowingexampleastheopeningpartofasub-clause:

“TheEmployerconsidershimself