(1) Subject to this section, a public procurement contract shall include the terms and conditions that are set out in the tendering documents or request for proposals.
(2) A public procurement contract must include —
(a) the name, address, telephone and fax numbers, of the contact persons of the parties to the public procurement contract;
(b) the scope of the work;
(c) the order of priority of public procurement contract documents;
(d) the contract price or its mode of determination;
(e) the conditions of acceptance;
(f) the conditions and mode of payment;
(g) the modalities of 'force majeure';
(h) the price adjustment mechanisms;
(i) the provisions for termination of the public procurement contract;
(j) the procedure for dispute resolution; and
(k) the applicable law.
(3) Where a public procurement contract exceeds twelve months, the public procurement contract must permit fair price adjustment for changes in costs.
(4) For the purposes of subsection (3), a price adjustment clause of the public procurement contract must specify —
(a) the timing for determining any price adjustment;
(b) the conditions, which will justify the formula of price adjustment, such as increases or decreases in the cost of materials, labour, and energy according to official indices;
(c) limits which will determine the amount of any price adjustment; and
(d) other procedures to be followed.
(5) The public procurement contract shall provide for termination or re-negotiation, if price adjustment exceeds a certain sum or percentage of the contract.
(6) A public procurement contract may provide for —
(a) the making of progress payments at —
(i) defined points in the fulfilment of the public procurement contract, such as completion of a percentage of the performance due under the public procurement contract, or
(ii) any other performance milestones described in the public procurement contract; or
(b) retention of progress payments as security.
(7) A progress payment is authorized by an interim certificate that confirms the conditions for payment, based on such documentation of performance as is required by the public procurement contract.
(8) A procuring entity may, by means of a public procurement contract, require a contractor to provide training and spare parts during the average operating life of goods or works which require after-sale service or maintenance.
(9) Where insurance is required in respect of a public procurement contract, a procuring entity shall indicate, in the public procurement contract, the amount and essential terms of the required insurance.
(10) The procuring entity reserves the right to reject insurance coverage which does not comply with the requirements in the public procurement contract.
(11) The consent for sub-contractors may be conditioned on their obtaining insurance in accordance with the requirements of the public procurement contract.
(12) The contractor and any of his or her sub-contractors shall —
(a) assign any and all rights to compensation from the signed insurance covers to the procuring entity; and
(b) inform the insurance company of the assignment.
(13) A public procurement contract may provide for payment of a bonus to the contractor for early completion.