SKANSKA SPECIFICATIONS TO GENERAL CONDITIONS FOR BUILDING CONTRACTS 1998

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1 1 (6) SKANSKA SPECIFICATIONS TO GENERAL CONDITIONS FOR BUILDING CONTRACTS 1998 Offer If the offer diverges from the invitation to tender, it must be mentioned explicitly and relevantly in order to be able to refer to the given exception. A possible optional offer must clearly define how it differs from the solution mentioned in the invitation to tender. If there are uncertainties in the contract s bidding and estimation documents, they have to be reported to Skanska. 2 Further obligations Skanska has defined its unified globally applied ethical business principles. The contractor assures to be acquainted with Skanska s Code of Conduct, the Ethical business practises and hereby commits to adhere to Skanska Code of Conduct principles in its performance. The contractor is also responsible for ensuring that both its employees and other third parties possibly used in the fulfilment of the contract adhere to the Code of Conduct principles. If the Code of Conduct principles are violated, Skanska is entitled to terminate the contract immediately, to stop the payment of future remunerations as well as receive compensation from the termination of the contract that causes damage to Skanska. The contractor will comply with construction site s daily working hours, which have been agreed together with Skanska. The contractor has to pay wages of its employees to a bank account stated by an employee via a financial institution operating in Finland. The employer must provide the employee a written calculation of the wage in euros, which shows the amount of the wage as well as the essential information of how it is calculated. Before signing the agreement, the contractor or the labour leasing company will have to present the following documents to Skanska according to the Contractor s Liability Act (1233/2006): 1. A certificate on whether the enterprise is entered in a. the Prepayment Register b. the Employer Register and c. as VAT-liable in the Value Added Tax Register 2. An extract from the Trade Register 3. A certificate of tax paid or tax debt, or an account that a payment plan has been made for tax debt 4. Certificates of pension insurance and payment of pension insurance premiums or an account that a payment agreement has been made on overdue pension payments.

2 2 (6) 5. An account of the applicable collective agreement or the principal terms applicable to the work 6. Certificate of an accident insurance taken out by contractor If the contract is valid for more than twelve months, the contractor or the labour leasing company shall deliver the certificates mentioned in the sections 3 and 4 to Skanska every twelve months during the contractual relationship. In addition to the above, Skanska requires that the contractor must provide a certificate regarding the arrangement of occupational health care and the company s liability insurance when requested by Skanska, authority or the developer. The information, certificates and accounts presented by virtue of this Act shall not be more than three months old. Upon a request, the contractor shall provide a reliable account proving that the wages that its employees have earned on the building site have been correctly paid as a whole. Skanska is entitled to refrain from paying the contractor s invoices until the relevant certificates and accounts have been delivered. Skanska notifies the contract and the employee information on a monthly basis to the Tax Administration in accordance with the compulsory notification laws (363/2013 and 346/2013). The Contractor is therefore obligated to provide Skanska the information required for the notification and to ensure that the subcontractors of the contractor provide such information. If the contractor uses its own subcontractors or labour leasing companies, is the subcontractor of Skanska required to provide similar account concerning the subcontractors and labour leasing companies they use. Skanska is entitled to terminate the contract immediately and without any notification in advance, if the subcontractor or labour leasing company or third party possibly employed by Skanska during the performance of the contract neglect to provide Skanska the reports mentioned above, or if the relevant information is delivered to Skanska with a delay and it can be stated the on the basis of these information that Skanska would have had a reason not to enter into agreement. The contractor is committed to comply with its industry s universally binding collective agreement or other collective agreement he is obligated to obey, as well as the work and social legislation. Skanska has the right to withhold and settle an amount of the contract price or other equivalent amount without hearing the contractor, if the amount has been formed by the receivables caused by the contracting party s employment relationships or other damage or harm caused by the contracting party.

3 3 (6) Supplier/contractor is responsible for ensuring that the building material meets the Finnish legislation and regulatory requirements and it is suitable for its intended purpose. Supplier/contractor shall not install or supply building products to the construction site that do not possess a suitable CE marking, even if they are granted with a valid harmonised product standard regarding EU s construction product regulation or European technical approval (ETA). The supplier/contractor is obligated to deliver the clarifications regarding the CE-marking to the client when the contract is signed or during other agreed time, for example before delivering or installing the product. If the supplier/contractor fails to comply with this obligation, limitations of liability are not applied regarding the damage caused by the delay but the supplier/contractor is responsible for compensating the entire damage to the client. The supplier/contractor is also required to pay the entire damage and costs caused by the CE-marking to the client as well as the lack of clarifications regarding it. If presenting the CE marking reports is delayed more than two weeks of the agreed date, the client has the right to terminate the contract immediately. The client shall have the right to refrain from paying the price of the purchase until the CE marking report is presented. 4 Site management duties 7 Co-operation 7 2 Skanska is the contractor responsible for construction site services and onsite management duties. The contractor is obligated to comply with the constructions site s areal plan as well as the given instructions regarding material ordering, storage and marking. If the contractor does not attend to these duties regardless of a written request, Skanska retains the right to restore the order consistent with the plan at the expense of the contractor. Furthermore, Skanska reserves the right to charge the costs in question from any following instalment. 18 Penalty for delay Penalty for delay amounts to 0,2 % of the contract price per delayed day without VAT, unless agreed otherwise. Contract price includes the value of additional and modification works and is based on actual contract price. 28 Product liability The contractor is solely responsible for the product liability of the products that belong to his performance obligations. If the products cause damage consistent with the Act on Product Liability, which Skanska will be obligated to compensate either to the party having inflicted by the damage or to its contracting partner, the contractor undertakes to compensate Skanska

4 4 (6) without a specific agreement for all such damage or possible costs of legal proceedings, including an interest consistent with the Interest Act from the date of payment made by Skanska. 29 Liability during guarantee period 29 The guarantee period lasts for two years from the handover of the entire building project from Skanska to the ordering party, if not mentioned otherwise in the contract agreement. In residential building projects the contractor is responsible for its performance after the above-mentioned guarantee period on the basis of Housing Transaction Act 7 chapter Contractor s surety for Skanska 36 1 An absolute suretyship provided by a financial or insurance institution shall be acceptable as surety. 37 Client s obligation to deposit surety Skanska does not deposit sureties. 40 Payment of contract price 40 In case the contractor provides a payment schedule, the first instalment cannot exceed 5 % of the contract price and it will be paid when the work has been started, the site s commencement meeting has been held and the surety for work period has been delivered to Skanska. The last instalment has to comprise of at least 10 % of the contract amount and it is paid when the contract performance is complete and received, the requirements and obligations placed for the contractor has been fulfilled, the final settlement has been held and all possible deficiencies and faults have been repaired, as well as the surety for guarantee period has been handed over to Skanska. A statement of completion of particular work stages mentioned on the invoice signed by Skanska work management has to be attached to the invoice. 42 Withholding In a building project where collective agreement of construction industry is applied and where the contractor refrains from paying the wages of the employees, is the client without consulting the contractor entitled to withhold the wages paid on behalf of the contractor from the unpaid contract amount consistent with the client s contract of using external labour section four.

5 5 (6) 41 Penalty interest Skanska s term of payment is 30 days. 57 Health and safety at work The Hot work safety guidelines 2014 published by the Federation of Finnish Financial Services are a part of this contract agreement. The contractor has to comply with these safety guidelines when performing hot work. ally, the contractor is obligated to comply with the Skanska hot work supervision programme. The contractor has to also assign persons responsible for hot works before performing the work. The same applies to contactor s own subcontractors. 58 Other regulations concerning the contractor s employees 58 3 Before initiation of work, the contractor s employees must visit the building site office and provide Skanska their employer information and their own personal information with the tax number, as well as sign their building site passes. The contractor has to make sure that their workers keep their site passes visible at all times whilst on the site. The contractor is also responsible for ensuring that employees are marked on the public tax number register of construction industry. The identity card shall indicate whether the worker is under employment or is an independent work performer. The personal tax number that is marked on the tax number register and that is consistent with the Act on Tax numbers and the Public tax number register for the construction industry (1231/2011) shall be visible on the identity card as well as the name of the employer. 69 Inspections required by law In addition to the reviews and inspections of General conditions for building contracts (YSE 1998), the contractor is required to engage in the requirements of the Housing Transactions Act. The contractor has to perform introduction and maintenance inspections of all machines, devices, scaffoldings, etc. in his use, in accordance with applicable regulations and standards, as well as to deliver the relevant inspection protocols to the client. 92 Resolving disputes Disputes, from which the parties are unable to negotiate a settlement, shall be settled in accordance with a valid law of arbitration by a single-member court of arbitration. The arbitration shall take place in the city of Helsinki.

6 6 (6) Skanska s right to terminate the contract If the building owner is declared bankrupt or otherwise is driven in such situation where it is unable to meet its payments to Skanska, Skanska has the right to immediately interrupt and terminate the contract due to building owner s insolvency upon delivery of a written statement to the contractor. Upon interruption or cancellation of the contract in the above mentioned manner, Skanska is obligated to compensate the contractor the proportion of the total contract amount that corresponds to the amount of work done by the contractor. If the contractor does not pay their employees wages on time, the client has the right to terminate the contract agreement.

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