Appendix P
Dredging
Published October 1, 1989.  This appendix contains mandatory instructions and contract clauses.
These instructions apply to every contract over $100,000 when dredging operations are a significant portion of the work.  They do not apply to other types of contracts in which dredging operations are incidental to the major portion of the work.
1.	Additional requirements
Bids solicitations, and contracts in which dredging is the principal work, must include the terms and conditions of the standard construction contract form and the additional terms and conditions contained in section 3. below.
The additional terms and conditions require contractors to:
(a)	fully disclose all information upon which quotations or tenders have been based when asked to do so by a contracting authority;
(b)	warrant that there has been no collusion between the contractor and others in respect of the tender, the contract and the work to be executed under the contract;
(c)	agree to a reduced price equal to 90 per cent of the contract price or the actual cost of labour, plant and material, whichever is less, in the event that there is a breach of the foregoing conditions; and
(d)	maintain records for a period of five years.
2.	Interdepartmental dredging committee
Bids for dredging contracts shall be analyzed and reviewed by an interdepartmental committee.  This committee, composed of senior officials of those departments and agencies involved in the administration of dredging contracts (the Departments of Public Works, Transport and Justice, the Canada Ports Corporation and the St. Lawrence Seaway Authority), is chaired by the representative of the Department of Public Works.
3.	Additional terms and conditions
The following terms and conditions must be added to the standard construction contract:
Articles of Agreement
A3	Contract Amount
3.5	“Notwithstanding anything to the contrary, where the Contractor has made default under GC54 the total amount (hereinafter in this Article referred to as the contract price) payable by Her Majesty to the Contractor as consideration for the execution of the work will not under any circumstances exceed
3.5.1	ninety per cent (90%) of the aggregate of all amounts payable to the Contractor pursuant to the provisions of A3.1 and A3.2, or
3.5.2	an amount equal to the cost of the work to the Contractor, computed in the manner and on the basis provided in GC50.1.1 for the determination of cost of labour, plant and material, whichever is less, which contract price shall, in the event of such default, be deemed for all purposes of the contract to be the whole amount payable by Her Majesty to the Contractor as consideration for the execution of the whole of the work and any payment made by Her Majesty to the Contractor in excess of the contract price, so deemed to be the whole amount payable by Her Majesty to the Contractor for the execution of the whole of the work, shall be refunded by the Contractor to Her Majesty on demand”.
General Conditions
“GC38	Taking the Work out of the Contractor's Hands
38.1.7	has made default under GC54 of the General Conditions; or
38.1.8	has otherwise failed to observe or perform any of the provisions of the contract.”
GC51	“Records to be Kept by Contractor”
51.2	for “two years” substitute “five years”.
“GC54	Disclosure of Information, Fiduciary Relationship, etc.
“54.1	The Contractor shall, whenever requested by Her Majesty, fully disclose any and every matter or thing whatsoever in any manner affecting the cost to Her Majesty of the work, or the time required to execute the same, including, without limiting the generality of the foregoing, all information, considerations or factors on which the Contractor’s quotations or tender to Her Majesty for the execution of any and every part of the work is based and the nature and extent of any communication relating to the work or the cost thereof between the Contractor and any other person, together with the identity of such other person.
“54.2	The Contractor warrants that there has been no collusion whatsoever between the Contractor and any other person in respect of
“54.2.1	any tender submitted by the Contractor and on the basis of which the contract between Her Majesty and the Contractor was entered into, the preparation of such tender and the calculations and considerations on which such tender was prepared and submitted,
“54.2.2	the contract between Her Majesty and the Contractor, and
“54.2.3	the work to be executed under such contract, or any of such tender contract or work.
“54.3	For purposes of this section, the Contractor shall be deemed to stand in a fiduciary relationship to Her Majesty.”