Special Conditions of Contract (SCC)

The Special Conditions of Contract (SCC) are the project-specific contractual clauses that a procuring entity uses to modify the standard General Conditions of Contract (gcc) for a particular contract. While the GCC applies uniformly across all contracts of the same type, the SCC is where the procuring entity enters the details unique to this project: the governing law, the currency and timing of payments, the applicable arbitration rules, and any additions or deletions to the standard risk allocation.

What is the SCC?

The SCC appears in the bidding-document alongside the gcc. The two documents must be read together: any clause in the SCC that references a GCC clause number amends that clause for this contract; a clause in the SCC that adds a new provision supplements the GCC; and a clause that deletes a GCC provision removes it. Where there is a conflict between the GCC and the SCC, the SCC prevails, making it the more important document for understanding the actual contractual risk on a specific project.

Typical SCC content includes: the name of the procuring entity and the project, the contract price and currency, the payment currency and any exchange rate provisions, the site or delivery location, the performance security percentage and form, the defects liability period, the delay penalty (liquidated damages) rate, the dispute resolution mechanism and arbitration venue, and the governing law. Development-bank sbd templates provide a pro-forma SCC data sheet that procuring entities complete field by field, which makes SCC content relatively predictable even across different countries.

Why the SCC matters for bidders

The SCC is where the most financially significant project-specific terms live. The liquidated damages rate (typically expressed as a percentage of the contract price per week of delay, capped at a maximum) directly affects risk pricing; a 0.5 percent per week rate capped at 10 percent is very different from a 1 percent rate uncapped. The defects liability period determines how long the contractor is responsible for correcting defects at their own cost after practical completion. The arbitration clause determines where and under whose rules disputes will be resolved - a seat of arbitration in a distant jurisdiction substantially increases the cost of enforcing rights. Bidders who skip the SCC and focus only on the commercial summary miss the clauses that most often generate contract disputes.

FAQ

Can the SCC override the GCC entirely?

The SCC can amend, add to, or delete specific GCC clauses, but it cannot replace the entire GCC. Where the SCC is silent, the GCC applies in full. The SCC is a modifier, not a substitute.

Is the SCC negotiable after the contract is awarded?

No. The SCC is part of the contract documents that form the contract-agreement. Its terms were set in the bidding document and form part of what the bidder accepted when submitting an offer. Post-award renegotiation of SCC terms is not permitted under development-bank rules.

What is a Bid Data Sheet, and how is it different from the SCC?

The Bid Data Sheet (BDS) is a companion document to the Instructions to Bidders and fills in the project-specific procedural details of the bidding process (deadline, document fee, clarification contact). The SCC fills in the project-specific details of the contract itself. Both serve the same function of making standard templates project-specific but at different stages of the process.