General Conditions of Contract (GCC)

The General Conditions of Contract (GCC) are the standardized, non-negotiable legal clauses that apply to all contracts of a given category under a particular procurement framework. They establish the core rights and obligations of both parties - covering topics such as payment, variations, performance guarantees, force majeure, insurance, and dispute resolution - and are incorporated into every contract by reference from the bidding document.

What is the GCC?

Development banks publish GCC suites as part of their Standard Bidding Document (sbd) packages. For example, the World Bank has GCC versions for goods supply contracts, civil works contracts, and consultant contracts; each version is calibrated to the typical risk allocation for that contract type. The GCC cannot be changed by the procuring entity or the bidder. Any project-specific modifications to the GCC are recorded in the scc (Special Conditions of Contract), which amend, add to, or delete specific GCC clauses for the particular procurement. Reading the GCC and SCC together gives the complete picture of contractual obligations.

For works contracts, development-bank GCC provisions are often derived from or compatible with international engineering contract standards such as the fidic-red-book. The GCC sets out the procedure for issuing variation orders, the mechanism for price adjustment, the process for handling claims, and the steps for dispute resolution, typically through an engineer's decision followed by arbitration.

Why the GCC matters for bidders

The GCC defines the risk environment that bidders must price when preparing their financial proposal. Provisions on price adjustment protect against inflation on long-duration contracts; provisions on force majeure define when delays are excused; provisions on payment terms set the minimum frequency of interim payments. Bidders who read only the commercial summary and not the GCC risk underpricing risks that the conditions allocate squarely to the contractor. The scc is equally important because it contains the project-specific adaptations that change the GCC defaults - for instance, the currency of payment, the applicable law, and the arbitration venue.

FAQ

Can a bidder propose changes to the GCC?

No. The GCC is not negotiable. Deviating from it in a bid submission is treated as a material deviation and will render the bid non-responsive. Bidders who have concerns about specific GCC provisions should raise them through the formal clarification process before the submission deadline.

What is the difference between GCC and FIDIC?

FIDIC publishes independent standard contract conditions used widely in the construction industry. Many development banks use FIDIC conditions as the basis for their own GCC or allow borrowers to use FIDIC forms directly, but the bank's GCC is the controlling version on bank-financed projects, not the stand-alone FIDIC publication.

Where do I find the applicable GCC for a specific tender?

The GCC is included in the bidding-document package. It is also published on the development bank's website as part of its standard bidding document library, where it can be reviewed before a specific tender is released.