▼ Q.1 What is SANAD?
SANAD is an Arabic name meaning “support” and it was officially launched on 6th April 2017. It contains 4 suites of contract namely, Construction, Design and Build, Design Services and Professional Services.The basic structure of the respective contracts is as follows:
|Construction||Design & Build||Design||Professional|
|1. Form of Contract|
|2. GCOC||38 Articles and 8 Appedencies||31 Articles and 7 Appedencies|
|3. Appendix A||Scope of Work and Specifications||Scope of Services and Deliverables|
|4. Appendix B||Schedules of Prices and Rates||Schedules of Prices and Rates|
|5. Appendix C||Insurances||Insurances|
|6. Appendix D||Administrative Instructions||Administrative Instructions|
|7. Appendix E||Contractor Resources||Contractor Resources|
|8. Appendix F||Drawings and Reports||Drawings and Reports|
|9. Appendix G||Materials, Equipment and Facilities Provided by Employer||Project Execution Plan|
|10. Appendix H||Contract Execution Plan|
▼ Q.2 Why has ASTAD drafted SANAD as there are other existing and established international contracts such as FIDIC, and local derivatives?
ASTAD took it as a corporate social responsibility (“CSR”) to the State of Qatar to develop the contracts; it was also felt that it gave a “local flavour” for Qatar (it fully complies with Qatar Civil Code), and the region.
▼ Q.3 What is/are the advantage(s) of me using SANAD?
SANAD embodies international best practices and is intended to be “a one shoe size to fit all sizes” which allows each Employer to tailor the templates to their own specific project needs and requirements.
▼ Q.4 Who is using SANAD?
Amongst many others who have shown a positive interest in SANAD and stated that they intend to use it, are Qatar Foundation, Qatar University, Qatar Museums, Hamad Medical Corporation, and Ministry of Education and Higher Education.
▼ Q.5 How does SANAD stand out in comparison with other contracts?
SANAD is based on best practice, but also it is a “complete took kit” as it provides Instructions to Tenderers, General Conditions, Appendices an Annexures, with templates and sample Agreements, which no other standard form of contract does.
▼ Q.6 Where can I buy SANAD? How much does it cost?
ASTAD owns SANAD and it is given out free of charge on a case by case basis. Please contact firstname.lastname@example.org for further information.
▼ Q.7 Does SANAD fully comply with the Laws of Qatar including the Tender Law 2015?
Yes – SANAD fully complies with the laws of the State of Qatar for commercial usage. However, ASTAD recommends that government entities have their legal department review it to ensure SANAD complies with the Tender Law 2015, or any specific law as required for them to comply with. With minor amendments SANAD can be used in other countries.
▼ Q.8 Can I use SANAD for all my projects, large and small?
Yes – SANAD is “a one shoe size to fit all sizes” suite of contracts. However if your project is of a lower value, less complexity and/or the risks are low, we are currently developing a SANAD Short Contract. We are also developing a SANAD contract which may be used for a very small project such as a single villa.
▼ Q.9 I have a need for a contract to manage time based “call off” services. Can I use SANAD?
Yes – We are currently developing a SANAD Term Service Contract which will be used for an Employer to appoint a Service Provider, which could be a Contractor or a Consultant for this type of Service over a specific time scale.
▼ Q.10 I have queries about SANAD, who do I contact?
Please contact email@example.com and we will assist you.
▼ Q.11 Does ASTAD provide training for the usage of SANAD?
Yes, please contact firstname.lastname@example.org and again we will assist you. We can provide anything from a single presentation by one of the drafters of SANAD, to a full day’s training on the theory and practice of the contracts.
▼ Q.12 How does SANAD define “Claim” and “Dispute”?
Many contracts see Claims and Disputes as the same, but they are not. SANAD defines Claim as to the assertion of entitlement for time and/or cost in arising out of or in relation to the Contract and/or the Works. As for Dispute, it means any controversy, dispute, difference or issue between the Parties under or arising out of or in connection with the Contract.
▼ Q.13 What is the Dispute Resolution /Dispute Avoidance mechanism in SANAD?
With the collaborative intention to implement the Contract, SANAD has provision for a multi-tiered dispute resolution process. Ample time is provided for mutual resolution (60 days) before it is escalated to the Management Committee (including the Chief Executive Officer of both parties in Dispute). Failing this as a default position for dispute resolution, the matter will be referred to the courts of the state of Qatar. As Employers become sophisticated and acquainted with arbitration, they may (subject to their internal policy) consider inserting their preferred centre and applicable rules, seat of arbitration and the number of arbitrators required.
▼ Q.14 How are Claims managed in SANAD?
As stated in Q10, SANAD distinguishes between a claim and a dispute. SANAD has clear and simple provisions for claims to be notified in terms of Extension of Time and adjustment to Contract Price, with the obligation to submit an Early Warning notice, the notice providing material circumstances of the event including the cause or causes, the contractual basis of it, the nature and extent of any resultant additional costs, the corrective action already undertaken or to be undertaken, a Time Impact Analysis clearly demonstrating the effect of delayed work on the critical path where an Extension of Time is claimed and the proposed Scheduled Completion Date or any Milestone Date should be adjusted, the adjustment, if any, which in its opinion should be made to the Contract Price; and a statement that it is a final Claim or an interim Claim.
▼ Q.15 Do you have provision for Liquidated Damages in SANAD?
Yes - Liquidated Damages are pre-agreed determined losses for delayed completion, the value of which can be inserted into Appendix B. The loss incurred by the Employer does not have to be proven. The figure included in the Contract represents an overall cap on the damages the Employer can recover. There is also provision for reduction of Liquidated Damages for partial take over.
▼ Q.16 How is Extension of Time managed in SANAD?
It will be managed based on the detailed provisions for Extensions of Time in terms of notification requirements, defined delay events, delays to critical path/float (critical path and types of float are defined terms within the contract), and claiming for associated costs, etc.
There is also an early warning process requiring the Contractor/Consultant as a pre-condition to a claim to pre-notify an event which could give rise to an Extension of Time claim and/or associated costs. This gives the parties the opportunity to be become aware, and to discuss the issues beforehand.
▼ Q.17 Is the Early Warnings provision in SANAD the same as in NEC?
In NEC, the Early Warning provisions apply equally to Contractor and Employer, which have effect on time, cost and/or quality. In SANAD, it is a pre-condition notification to be fulfilled by the Contractor giving rise to an entitlement for a claim.
▼ Q.18 How is Payment managed under SANAD?
Payment type is linked to Appendix B (Schedule of Prices and Rates) giving flexibility in terms of payment methods, processes and timing, with payment milestones and appropriate verification methods, giving each Employer the choice of procurement method to suit his preferences, project needs and associated risks.
▼ Q.19 How is post termination being managed?
Contractor shall cease performance of the Works and Employer is given full access to the Construction Site to take over the Works with the balance of materials, supplies, equipment, plant, computer (servers with passwords). Upon Employer’s instruction Contractor shall assign or novate applicable contracts to the Employer or its nominee. The Contractor shall vacate the Construction Site and hand over the site and all Technical Information and Contractor Documents to Employer. Contractor’s Payment entitlement (if any) will be dependent upon the type of termination.
▼ Q.20 What is covered under the Audit Rights?
The Employer or its authorised representative have the right to examine and audit books, records or accounts of the Contractor/Consultant and any Subcontractor/Sub Consultant to ensure that their accounts and time records showing all costs, data and charges incurred in accordance with internationally accepted accounting principles and practices. This includes the right to audit the proper implementation of the Project Quality Plan.
▼ Q.21 How does SANAD deal with Novation and Assignment of Contractors/Sub-Contractors?
The Contractor shall not novate, assign, or transfer in any other way the Contract or any part of it or any benefit, entitlement, payment or interest in or under it without the prior written contract of the Employer. As and when required, Contractor shall also procure the execution by the Novated Subcontractors and the Key Subcontractors and deliver to the Employer the collateral warranties in favour of the Employer.
▼ Q.22 How are Substantial Completion and Completion defined in SANAD?
Completion means, following Substantial Completion of the Works (or a Section), completion of the Works (or a Section) which shall include rectification of all Snagging Items; Substantial Completion means that: (a) All structural and architectural Works have been completed; and (b) All systems, components and equipment have been installed, tested, commissioned, integrated (where relevant) and are operating in accordance with the Contract; and (c) All utilities (including permanent electricity and water) are connected to mains supply and activated; and (d) All Permits have been obtained by Contractor from all relevant authorities (including Qatar Civil Defence Department in relation to the required "Occupational Certificate"); and (e) Such that the Works or the applicable Section(s) thereof, as applicable, can be used or operated, or both, for its intended purpose with only Snagging Items remaining.
▼ Q.23 What happens when the Contractor is faced with Adverse Site Conditions after commencing the Works?
The Contractor is required to notify the Employer of the existence of the Adverse Site Conditions as soon as possible and to comply with the Employer’s Instructions. If the result of the Adverse Site Conditions affects the Critical Path resulting in delay and/or incurring additional costs, the Contractor is entitled to claim an adjustment to the Contract Price and Extension of Time, subject to the Contractor’s compliance with contractual requirements.
▼ Q.24 What are Adverse Site Conditions in SANAD?
Adverse Site Conditions means underground conditions substantially different from those shown on the information provided by Employer. This includes sink holes and unforeseen utilities which adversely affect the performance of the Works after the Commencement Date.
▼ Q.25 What is a Contractor Declaration Statement?
A declaration statement given by the Contractor to the Employer confirming that they have fully paid the salaries and wages to all Contractor Personnel for the immediate preceding calendar month, in accordance with the respective employment contract and the Qatar Labour Law.
▼ Q.26 What is a Subcontractor’s Declaration Statement?
A declaration statement by Subcontractor confirming that they have received all relevant payments as at that date from Contractor.