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1028 00 (01/05/93) Ship Construction - Firm Price
Supply and Services Canada
01 Interpretation
02 Conduct of Work
03 Inspector Final Judge of Work, Materials, Etc.
04 Re-execution of Inferior Work
05 Drawings
06 Design Changes and Modifications
07 Labour Conditions
08 Accommodation
09 Care of Vessel During Construction
10 Wharfage and Dockage Fee
11 Overhanging Charges
12 Warranty
13 Public Ceremony
14 Insurance
15 Amendment to General Conditions DSS-MAS 1026A
1028 01 (01/06/91) Interpretation
(1) Unless otherwise provided in the agreement,
"the General Conditions" means General Conditions DSS-MAS
1026A (Supplies - Firm Price) forming part of the Contract;
"these supplemental conditions" means these Supplemental
General Conditions;
"Inspector" means the inspection authority designated in the
Contract to carry out the inspection duties;
"vessels" means the ships or vessels to be constructed by the
Contractor under the Contract and includes the whole of their
respective hulls, engines, boilers, machinery, auxiliaries,
equipment, fittings, and appurtenances where the context
permits, the term "work" as used in the Contract includes the
vessels as herein defined;
a "Design Change" is any change to approved drawings,
specifications, or statements of requirements. Work necessary
to eliminate "fouling" points or for the correction of errors
made by the Contractor is not a "Design Change" within the
meaning of this section;
the expression "make modifications of, changes in, or
additions to, the specifications," as the same is employed in
section 19 of the General Conditions (DSS-MAS 1026A), shall
be deemed to include and to apply to "Design Changes" as
herein before defined.
(2) These supplemental conditions shall be read with the General
Conditions, provided that, in the event of any
inconsistencies between the provisions of the General
Conditions and of these supplemental conditions, the latter
shall prevail.
(3) Where the Inspector is not specifically mentioned in the
Contract, the Minister may act in respect of any covenant,
agreement, condition or matter under the Contract by or
through the Inspector or by or through such other officers as
he may from time to time designate, with power in the
Inspector or any such officers to delegate in writing or by
telegram any of the powers contained in the Contract.
1028 02 (01/06/91) Conduct of Work
(a) Canadian Labour
To the full extent consistent with availability, proper economy and
the expeditious performance of the Contract, the Contractor will
employ Canadian labour exclusively. A reasonable proportion of the
labour force employed will consist of persons who have been
demobilized or honourably discharged from Active Service in Her
Majesty's Forces, where such persons are available and qualified for
the Work to be performed.
(b) Materials
The Contractor hereby warrants, represents, and agrees that it will
procure all materials, parts, components and equipment required in
connection with the performance of Contract from the sources
proposed in its tender or such other sources as may be authorized by
the Minister.
(c) Performance Control
The Contractor may, at any time, apply to the Minister for advice or
direction on matters pertaining to the Contract.
The Contractor shall submit for examination by the Inspector and/or
the Minister all proposed Contracts including those to be effected
by Purchase Orders, if requested to do so.
The Contractor shall permit the Inspector to examine any designs,
drawings, models or specifications, completed or under preparation
by it or on its behalf in connection with the Contract at any time.
All directions and instructions that may, from time to time, be
given by the Inspector and/or the Minister with respect to the
recording and reporting upon the conduct, progress and cost of the
work, shall be duly carried out by the Contractor.
1028 03 (01/06/91) Inspector Final Judge of Work, Materials, Etc.
If any part of the specifications provides for a method of
construction or for the supply and/or use of materials, equipment or
parts which are not specified with particularity, the Contractor
shall have the right of selection provided that the construction so
performed and the materials, equipment and parts so supplied and/or
used are in accordance with good marine building practice for the
type and class of vessels covered by the Contract, and provided that
the specifications and drawings and all other Contract requirements
are fully complied with. The Inspector shall be the final judge of
the quality, quantity and suitability of the workmanship, parts,
materials, plant, machinery, apparatus, tools and equipment used in
or for the purposes of the Work and as to the meaning or
interpretation of the specifications and his decision with regard to
the foregoing matters, or any of them, shall be final and binding
upon the Contractor. All orders, directions or instructions at any
time given by the Inspector with respect to the Work or the conduct
or progress thereof or with respect to the parts, materials, plant,
apparatus, machinery, tools or equipment used in or for the purposes
of the work, shall be promptly and fully complied with by the
Contractor.
1028 04 (01/06/91) Re-execution of Inferior Work
The Inspector may reject or refuse to accept or approve any part of
the materials or Work if, in his opinion, the same or any
workmanship, parts or materials used in the manufacture or
production thereof are not in accordance with the provisions of the
Contract. The Contractor shall forthwith at its own expense replace
or otherwise make good to the satisfaction of the Inspector any part
of the materials or Work which may have been rejected by the
Inspector. Her Majesty shall not be under any liability hereunder
for any Work done, materials, or parts delivered or assembly made by
the Contractor hereunder, unless and until the same shall have been
approved by the Inspector as evidenced by his certificate in writing.
1028 05 (01/06/91) Drawings
(1) All drawings, copies of drawings and models, which have been
prepared by the Contractor pursuant to the Contract or
furnished to the Contractor by Her Majesty, shall be the sole
property of Her Majesty and may be used as Her Majesty sees
fit.
(2) Approval of the drawings, whether express or implied, shall
not relieve the Contractor of its responsibility under the
Contract to deliver a vessel that will meet the performance
requirements in the specifications.
(3) Where modifications are requested to the drawings prior to
their approval, the Contractor shall be deemed to have
accepted such modifications and to have agreed that they do
not constitute a change in specifications and that they will
not affect the performance of the vessel adversely, unless it
notifies the Minister, in writing, within fourteen (14) days
after receipt by it or notice of the modification, that it
considers that such modification constitutes a change in
specification or that it will adversely affect the
performance of the vessel. In the event that the Contractor
does not withdraw such notice, it shall be deemed to be
relieved of any liability for failure of the vessel to
perform in accordance with the warranty insofar as such
failure can be shown to be the direct result of such
modification.
(4) The provisions of the preceding subsection shall apply to
Design Changes, "mutatis mutandis".
1028 06 (01/06/91) Design Changes and Modifications
(1) Any adjustment to the Contract price made pursuant to section
19 (Suspension of Work and Change in Specifications) of the
General Conditions DSS-MAS 1026A shall be ascertained and
agreed to by the parties hereto prior to the purchase of any
materials or the commencement of any Work by the Contractor.
(2) If the Contractor proposes to make a claim for adjustment of
the Contract price pursuant to section 19 as aforesaid, it
must furnish notice to the Minister of its intention to do so
within thirty (30) days of the date that it received
information that a change within the scope of section 19 has
been made. Failure by the Contractor to give such notice
within the prescribed period shall be deemed to constitute a
waiver by it of any rights that it may have hereunder to
adjustment in the Contract price as a result of such change.
1028 07 (01/06/91) Labour Conditions
The applicable Labour provisions established by Order-in-Council PC
1954-2029 of December 22, 1954, and by all amendments thereto shall
apply and form part of the Contract.
1028 08 (01/06/91) Accommodation
(a) Personnel
The Contractor shall provide for the Inspector and any supervisory
or other staff employed by Her Majesty, such office space, office
facilities, telephone service, and suitable sanitary and washing
facilities as the Inspector or the Minister may require from time to
time at the Contractor's shipyard.
(b) Storage and Handling
The Contractor shall supply suitable warehouse accommodation for all
government supply stores issued in connection with the Contract for
such length of time as the Minister may direct. The Contractor
shall be responsible for the care, handling, embarking, loading,
moving and similar duties in respect of supply stores in the custody
or control of the Contractor or of the Inspector as the Inspector or
the Minister may from time to time direct.
1028 09 (01/06/91) Care of Vessel during Construction
(1) All parts of the vessel including, but not limited to,
structure, paint work, machinery, auxiliaries, appliances and
apparatus shall be maintained in a satisfactory condition
during the entire period of construction. Measures shall be
taken to keep to a minimum any wear and damage incident to
construction, and to prevent corrosion, or other
deterioration, especially to unpainted, polished and moving
parts. All water piping, heat exchangers, valve chests and
equipment shall be kept drained, flushed, and cleaned except
during trials and tests. Cold weather precautions will be
taken when conditions so require.
(2) The Contractor shall be responsible for the care of all
machinery and equipment whether furnished by him or by the
Crown. Electrical, electronic and interior communication
equipment shall, at all times, be fully protected against
dust, moisture, or other foreign matter, and shall not be
subjected to rapid temperature changes.
(3) The Contractor shall ensure that the design form of the
vessel is maintained throughout the course of construction
and that no distortion of materials occurs which might cause
locked-in stresses.
1028 10 (01/06/91) Wharfage and Dockage Fee
Until the completion of the Contract, the Contractor shall be
responsible for and shall pay all expenses of wharfage, towage,
dockage, running lines, electric light, heating water for testing
and refilling the tanks and all other charges, fees, expenses and
disbursements for incidental to the construction, launching and
delivery of the vessel. If at any time after the launching and
before final acceptance of the said vessel, any contingency should
arise making it, in the opinion of the Inspector, advisable to have
such vessel placed in dock for survey, the Contractor shall dock the
vessel at its own risk and expense.
1028 11 (01/06/91) Overhanging Charges
In the event of any assessments, taxes or duties, or other levies or
charges whatsoever, being unpaid after the vessel has been formally
accepted by the Minister, and Her Majesty has complied with all the
provisions imposed upon Her by the Contract, the Contractor shall
reimburse Her Majesty within thirty (30) days thereafter for any
such assessments, taxes, duties, levies or charges as may have been
paid by Her Majesty.
1028 12 (01/05/93) Warranty
The Contractor shall warrant the hull, propelling machinery and
auxiliaries, fittings, and equipment of all kinds, for a full period
of twelve (12) months after delivery to and acceptance of the vessel
by Her Majesty, excluding any time or times in excess of one (1)
month upon any single occasion during which the vessel may be out of
service while undergoing repair pursuant hereto, against all defects
of design, material and workmanship, and undertakes that any part or
parts of the vessel which may be found defective or show signs of
weaknesses or undue wear within such period, owing to faulty design,
material or workmanship, shall be repaired or removed and replaced
and all such defects remedied and made good at the sole cost and
expense of the Contractor. An immediate notice in writing shall be
given by the Minister to the Contractor of the discovery of any such
defects, weakness or undue wear, and the Contractor agrees to
deliver the necessary part or parts and to fit, complete and make
good the defective part or parts at the Contractor's yard at ______________,
but if the vessel is not brought to the Contractor's yard for
repairs or replacement of a defective part or parts and such repairs
or replacements are made elsewhere, the Contractor shall pay to Her
Majesty such sums as are equivalent to the cost of supplying the
necessary part or parts and doing the Work at the yard of the
Contractor. The Contractor shall not be held responsible for fair
wear and tear, or for breakage and defects arising through the
negligence or carelessness of any person or persons employed on
board the vessel during the warranty period, except the negligence
or carelessness of the Contractor's representative if any. The
Contractor will not be held responsible for or be under any
obligation for consequential damages and delays to the vessel or her
cargo.
1028 13 (01/06/91) Public Ceremony
Unless otherwise provided in the Contract, the Contractor shall not
be entitled to any increase in the Contract price by reason of any
public ceremony. The Contractor shall not allow any public ceremony
in connection with the Work without having previously obtained the
written permission of the Minister.
1028 14 (01/06/91) Insurance
(1) Notwithstanding any other provisions herein contained, the
Contractor shall bear and be subject to all risk of loss or
damage of or to the Work or any part thereof until delivery
of the vessel and final acceptance of same pursuant to the
provisions hereof. If any such loss or damage should occur
prior to such delivery and final acceptance, the Contractor
shall forthwith (unless otherwise directed by the Minister or
the Inspector and subject to such conditions as the Minister
or the Inspector may impose), at its own expense and without
making any claim for reimbursement therefor, repair, restore
and/or replace the Work or the part thereof so lost or
damaged.
(2) The Contractor shall indemnify and save harmless Her Majesty
against and from any and all claims, damages, loss, costs and
expenses which Her Majesty may, at any time or times, suffer
or incur as a result of or arising out of any actual or
alleged injury to persons (including injuries resulting in
death) or damage to property which may be or be alleged to be
caused by or suffered as a result of the carrying out of this
Contract or any part thereof, whether by the Contractor or by
any Subcontractor or assignee of the Contractor.
(3) The Contractor shall enter into a contract of insurance
issued in the joint names of the Contractor and Her Majesty
as their respective interests may appear in the standard form
of Marine Builder's Risk Policy to provide full
indemnification to Her Majesty for any loss or damage to the
vessel or any other materials which are the property of the
Crown for installation in the vessel in the custody of the
Contractor or any claim or expenses to the Crown as aforesaid
for which the Contractor assumes responsibility hereunder,
and the premium or cost of such insurance coverage shall be
incorporated into and form part of the purchase price.
1028 15 (01/06/91) Amendment to General Conditions DSS-MAS 1026A
The General Conditions DSS-MAS 1026A as incorporated herein is
amended by deleting section 14 (Care of Crown Property).