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NOTICE OF * AGREEMENT / DETERMINATION

Employer : [State Name]

Contractor : [State Name] Notice No :

Works : [State Project Title] Issue Date :

Pursuant to Sub-Clause 3.5 of the Conditions of Contract, and with reference to your Notice
No:_____dated [state date] issued pursuant to Sub-Clause [specify sub-clause number under which
notice of claim was issued],

I / we give notice of my / our *agreement on / determination of the matters as follows:

1. [State agreement made between parties or in absence of agreement, Engineer’s


determination on claim with supporting particulars]

2. [Ditto]

Signed:

___________________________

[Name of Engineer]

DISTRIBUTION

__________________

*Delete as may be appropriate


Sub-Clause 3.5

Notice of Agreement / Determination


When to use

When agreeing or determining any money or time claims submitted by the Employer or the
Contractor in accordance with the procedures specified in sub-clauses 2.5 [Employer’s Claim]
and 20.1 [Contractor’s Claims] respectively, the Engineer must first consult each party with a
view to achieve an agreement.

If no agreement can be reached, the Engineer must make a fair determination taking into
account the relevant circumstances and notify both the Employer and the Contractor. Any
dissatisfaction by the Employer and the Contractor with the Engineer’s determination is dealt
with under the dispute resolution provisions in clause 20. Sub-clause 3.5 is referred to in the
following sub-clauses:

Sub-clause Applicable Provision Sub-clause Applicable Provision


1.9 Delayed drawings or instructions 10.3 Interference with tests on completion.
2.1 Right of access to the site. 11.4 X Failure to remedy defects
2.5 Employer’s claims. 11.8 X Contractor to search
4.7 Setting out 12.3 X Evaluation.
4.12 Unforeseeable physical 12.4 Omissions.
conditions.
4.19 X Electricity, water and gas. 13.2 X Value engineering.
4.20 X Employer’s equipment and free- 13.7 Adjustments of changes in legislation.
issue material.
4.24 Fossils. 14.4 X Schedule of payments.
7.4 Testing. 15.3 X Valuation at date of termination.
8.9 Consequences of suspension. 16.1 Contractor’s entitlement to suspend work.
9.4 X Failure to pass tests on 17.4 Consequences of employer’s risks.
completion.
10.2 Taking over of part of the works. 19.4 Consequences of force majeure.
20.1 Contractor’s claims.

Note that certain sub-clauses above (marked ‘X’) do not require the Contractor to initiate the
procedure for agreement or determination of the matter by a notice of claim. Refer to Figure 1
(in Sub-clause 2.5 – Notice of Employer’s Claim) for an illustrated overview on the processing
of the Employer’s claims.

How to Complete

Insert the name of the Employer and the Contractor and description of the Works which
should match the entries in the Contract Agreement (and also the Appendix to Tender, in the
case of the name of the Employer and the Contractor), Notice number and issue date.

Delete the alternative in the Notice title and make the appropriate deletion, depending on
whether the notice relates to an agreement on or determination of the matter claimed. Enter
details of the Employer’s or Contractor’s notice of claim and the relevant sub-clause number
under which it was issued. Supporting particulars should be given and attached to and
referred to on the notice.
The name of the Engineer should match the person named in the Appendix to Tender (or
such other person whom the Employer may appoint from time to time and has notified to the
Contractor) and the signature should be that of, or on behalf of, such named Engineer.

Who to Issue

Issue the original to both the Employer and the Contractor and copies to any other relevant
parties.

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