Construction Law and Contract Lecturer: Ir. Dr. Rosli Mohamad Zin

Construction Law and

Contract

Lecturer: Ir. Dr. Rosli Mohamad Zin

P.W.D. FORM 203A

JKR 203AJKR 203A

STANDARD FORM OF CONTRACTSTANDARD FORM OF CONTRACT

Conditions Of ContractConditions Of Contract

(56 Clauses)(56 Clauses)

1. Definitions and Interpretation1. Definitions and Interpretation

• Define the following word termsDefine the following word termsContract, Contractor, Contract Contract, Contractor, Contract Sum, S.O, S.O Representatives, Sum, S.O, S.O Representatives, Site, approved, directed, Work.Site, approved, directed, Work.

2. Duties of S.O and S.O.’s 2. Duties of S.O and S.O.’s RepresentativeRepresentative

a)a) S.O shall be responsible for the overall S.O shall be responsible for the overall supervision and direction of the Works.supervision and direction of the Works.

b)b) S.O.'s Representative shall be responsible to the S.O.'s Representative shall be responsible to the S.O. and his duties are to watch and supervise S.O. and his duties are to watch and supervise the Works. the Works.

c)c) S.O. may from time to time in writing delegate to S.O. may from time to time in writing delegate to the S.O.'s Representative any of the powers and the S.O.'s Representative any of the powers and authorities vested in the S.O. and shall furnish authorities vested in the S.O. and shall furnish to the Contractor a copy of all such written to the Contractor a copy of all such written delegation of powers and authorities.delegation of powers and authorities.

3. S.O.'s Right to Take Action3. S.O.'s Right to Take Action

a)a) Officer empowered to act on behalf of Officer empowered to act on behalf of Government and to approve variations. Government and to approve variations. Arises out of provision of Clauses 40, 43, Arises out of provision of Clauses 40, 43, 51, 52 or 54.51, 52 or 54.

b)b) Contractor shall not be entitled to claim for Contractor shall not be entitled to claim for any delay and extension of time or any any delay and extension of time or any extra cost or expense or whatsoever arising extra cost or expense or whatsoever arising for compliance with the provisions of this for compliance with the provisions of this Condition.Condition.

4. Scope of Contract4. Scope of Contract

• Obligation of the contractor to carry out and Obligation of the contractor to carry out and complete the Works in accordance with the complete the Works in accordance with the Contract Documents.Contract Documents.

• The contractor is obligated to provide materials, The contractor is obligated to provide materials, goods and standards of workmanship of the goods and standards of workmanship of the quality and standards.quality and standards.

• Contractor to make good any defect, Contractor to make good any defect, imperfection, shrinkage or other fault which may imperfection, shrinkage or other fault which may appear during Defect Liability Period in appear during Defect Liability Period in accordance with Clause 45.accordance with Clause 45.

5. S.O’s Instructions5. S.O’s Instructions

a)a) S.O. may in his absolute discretion and S.O. may in his absolute discretion and from time to time issue further drawings, from time to time issue further drawings, details, and/or written instructions.details, and/or written instructions.

b) Contractor shall (subject to sub-clause (c) b) Contractor shall (subject to sub-clause (c) hereof) forthwith comply with all instructions hereof) forthwith comply with all instructions issued to him by the S.O. within seven (7) issued to him by the S.O. within seven (7) days after receipt of a written notice from days after receipt of a written notice from the S.O. the S.O.

5. S.O.s Instructions (Cont)5. S.O.s Instructions (Cont)

c)c) All instructions issued by the S.O. shall be All instructions issued by the S.O. shall be issued in writing. Any instruction issued orally issued in writing. Any instruction issued orally shall be of no immediate effect, but shall be shall be of no immediate effect, but shall be confirmed in writing by the Contractor to the confirmed in writing by the Contractor to the S.O.S.O.

d)d) The Contractor shall within one (1) month of The Contractor shall within one (1) month of receipt of such instruction, give notice in writing receipt of such instruction, give notice in writing of his intention to claim for such expense or of his intention to claim for such expense or loss to the S.O. together with an estimate of the loss to the S.O. together with an estimate of the amount of such expense and/or loss, subject amount of such expense and/or loss, subject always to Clause 48 (a) hereof.always to Clause 48 (a) hereof.

6. Notices6. Notices

• Contractor shall notify the S.O. an Contractor shall notify the S.O. an address where written notices and address where written notices and instructions of the S.O. under this instructions of the S.O. under this Contract may be served upon him and Contract may be served upon him and shall inform the S.O. of any change of shall inform the S.O. of any change of address. address.

7. Contract Documents7. Contract Documents

a)a) The Contract Documents as aforesaid shall The Contract Documents as aforesaid shall remain in the custody of the S.O. and shall remain in the custody of the S.O. and shall be produced as and when required by the be produced as and when required by the Contractor.Contractor.

b)b) Copies of Contract DocumentsCopies of Contract Documents- one certified true copy of the Contract - one certified true copy of the Contract DocumentsDocuments

- two copies of the Contract Drawings- two copies of the Contract Drawings - two copies of the unpriced Bills of - two copies of the unpriced Bills of

Quantities Quantities

7. Contract Documents (Cont)7. Contract Documents (Cont)

c) S.O. shallc) S.O. shall have have two copies of such further two copies of such further working drawings or details as are reasonably working drawings or details as are reasonably necessary either to explain and amplify the necessary either to explain and amplify the Contract Drawings or the Specification.Contract Drawings or the Specification.

d)d) Contractor shall keep one copy of the Contractor shall keep one copy of the Contract Drawings, the Specification (if any), Contract Drawings, the Specification (if any), unpriced Bills of Quantities and documentsunpriced Bills of Quantities and documents on the Site and the S.O. shall at all on the Site and the S.O. shall at all reasonable times have access to the same.reasonable times have access to the same.

7. Contract Documents (Cont)7. Contract Documents (Cont)

e)e) Return to the S.O. all drawings, details, Return to the S.O. all drawings, details, specifications, unpriced copy of Bills of specifications, unpriced copy of Bills of Quantities and other documents of like Quantities and other documents of like nature after completion of worknature after completion of work

f)f) None of the documents hereinbefore None of the documents hereinbefore mentioned shall be used by the Contractor mentioned shall be used by the Contractor for any purpose other than this Contract.for any purpose other than this Contract.

8. Sufficiency of Contract 8. Sufficiency of Contract DocumentsDocuments

a)a) Contract Documents are to be taken as Contract Documents are to be taken as mutually explanatory of one another.mutually explanatory of one another.

b) b) Contractor shall find any discrepancy in or Contractor shall find any discrepancy in or divergence between any two or more of the divergence between any two or more of the Contract Documents including a Contract Documents including a discrepancy or divergence between parts of discrepancy or divergence between parts of any one of them, he shall immediately give any one of them, he shall immediately give to the S.O. a written notice specifying the to the S.O. a written notice specifying the discrepancy.discrepancy.

9. Materials and Workmanship9. Materials and Workmanship

a)a) All materials, goods and workmanship shall All materials, goods and workmanship shall be of the respective kinds and standards be of the respective kinds and standards described in the Bills of Quantities and/or described in the Bills of Quantities and/or Specification.Specification.

b) b) The Contractor shall entirely at his own cost The Contractor shall entirely at his own cost provide samples of materials and goods for provide samples of materials and goods for testing.testing. The Contractor shall oblige when The Contractor shall oblige when instructed by the S.O. as per Clause 5. instructed by the S.O. as per Clause 5.

10. Unfixed Materials and Goods10. Unfixed Materials and Goods

• Unfixed materials and goods delivered to, Unfixed materials and goods delivered to, placed on or adjacent to the Works and placed on or adjacent to the Works and intended for incorporation therein, shall not be intended for incorporation therein, shall not be removed except for use upon the Works.removed except for use upon the Works.

• S.O. has included the value of such materials S.O. has included the value of such materials or goods in any certificate in accordance with or goods in any certificate in accordance with Clause 47Clause 47..

• Contractor shall remain responsible for loss or Contractor shall remain responsible for loss or damage to the same.damage to the same.

11. STATUTORY OBLIGATIONS11. STATUTORY OBLIGATIONS

a)a) Compliance with written law, Compliance with written law, regulations and bye-lawsregulations and bye-laws

The Contractor shall give all notices The Contractor shall give all notices and pay all fees and charges and pay all fees and charges required under any written law, required under any written law, regulations and bye-laws in relation regulations and bye-laws in relation to the execution of works or any to the execution of works or any temporary works.temporary works.

11. STATUTORY OBLIGATIONS (Cont)11. STATUTORY OBLIGATIONS (Cont)

b)b) Charges to be borne by GovernmentCharges to be borne by Government

Any costs incurred by the Contractor in Any costs incurred by the Contractor in relation to fees and charges for removal relation to fees and charges for removal and installation of permanent connections and installation of permanent connections to public sewers and permanent water and to public sewers and permanent water and electricity supply shall be borne by the electricity supply shall be borne by the Government.Government.

The Government shall reimburse the The Government shall reimburse the Contractor for such costs by adding it by Contractor for such costs by adding it by the way of Provisional Sum or etc. to the the way of Provisional Sum or etc. to the Contract Sum (if not included).Contract Sum (if not included).

11. STATUTORY OBLIGATIONS 11. STATUTORY OBLIGATIONS (Cont)(Cont)

c) Indemnity to the Governmentc) Indemnity to the Government

The Contractor shall keep the The Contractor shall keep the Government indemnified against all Government indemnified against all penalties and liabilities of every kind penalties and liabilities of every kind of breach under provision of any of breach under provision of any written law, regulations and bye-laws written law, regulations and bye-laws which may be applicable to the works which may be applicable to the works or any temporary works.or any temporary works.

11. STATUTORY OBLIGATIONS (Cont11. STATUTORY OBLIGATIONS (Cont))

d) Changes in written law etc.d) Changes in written law etc.

If there is any change or amendment If there is any change or amendment in any written law, regulations and in any written law, regulations and bye-laws after the date of tender bye-laws after the date of tender which necessitates any variation to which necessitates any variation to the works or any temporary woks, the works or any temporary woks, the Contractor shall give written the Contractor shall give written notice that specifying and giving the notice that specifying and giving the reason for such variation to the S.O. reason for such variation to the S.O. and follow the S.O.’s instruction and follow the S.O.’s instruction before making such variation.before making such variation.

12. FOSSILS etc.12. FOSSILS etc.

• All fossils, coins, articles of value or All fossils, coins, articles of value or antiquities and structures, other remains or antiquities and structures, other remains or things of geological or archaeological things of geological or archaeological discovered on the site of works shall be discovered on the site of works shall be deemed to be absolute property of the deemed to be absolute property of the Government.Government.

• The Contractor shall take the reasonable The Contractor shall take the reasonable precautions to prevent his workmen or any precautions to prevent his workmen or any other persons from removing or damaging other persons from removing or damaging any such articles or things.any such articles or things.

12. FOSSILS etc. (cont)12. FOSSILS etc. (cont)

The Contractor shall immediately The Contractor shall immediately informs S.O. or S.O. informs S.O. or S.O. Representative of such discovery Representative of such discovery and carry out the removal of and carry out the removal of such articles or things at the such articles or things at the expense of the Government.expense of the Government.

13. PATENT RIGHTS AND 13. PATENT RIGHTS AND ROYALTIESROYALTIES

The Contractor shall save harmless The Contractor shall save harmless and indemnify the Government from and indemnify the Government from all claims and proceedings or on all claims and proceedings or on account of infringement of any account of infringement of any patent rights, design, trademark or patent rights, design, trademark or name or other protected rights in name or other protected rights in respect of any plant, machine work respect of any plant, machine work or material used in connection with or material used in connection with works or any of them. works or any of them.

13. PATENT RIGHTS AND 13. PATENT RIGHTS AND ROYALTIES (Cont)ROYALTIES (Cont)

Except where other specified, Except where other specified, the Contractor shall pay all the Contractor shall pay all tonnage and other royalties, tonnage and other royalties, rent, fees and other payments rent, fees and other payments for getting stone, sand, gravel, for getting stone, sand, gravel, clay or other materials clay or other materials required for the works.required for the works.

14. SETTING OUT14. SETTING OUT

The S.O. shall provide information such The S.O. shall provide information such as levels, boundary stone, and any as levels, boundary stone, and any other points of reference which may be other points of reference which may be required for the execution of the works required for the execution of the works for Contractor to set out works at for Contractor to set out works at ground level.ground level.

The Contractor shall take the The Contractor shall take the responsible and shall entirely at his own responsible and shall entirely at his own cost amend any errors arising from his cost amend any errors arising from his own inaccurate setting out.own inaccurate setting out.

15. INSPECTION OF SITE15. INSPECTION OF SITE

The Contractor shall be deemed to have The Contractor shall be deemed to have inspected and examined the site and its inspected and examined the site and its surrounding areas and have to satisfy surrounding areas and have to satisfy himself before submitting his tender as to himself before submitting his tender as to the nature of the ground and subsoil, the the nature of the ground and subsoil, the form and nature of the site, the extent and form and nature of the site, the extent and nature of the work, necessary materials and nature of the work, necessary materials and goods for the completion of the works, goods for the completion of the works, communication and access to the site, communication and access to the site, accommodation, all necessary information as accommodation, all necessary information as to risks contingencies and all circumstance to risks contingencies and all circumstance influencing and affecting his tender. influencing and affecting his tender.

15. INSPECTION OF SITE 15. INSPECTION OF SITE (Cont)(Cont)

Any information or document given Any information or document given or forwarded by the Government to or forwarded by the Government to the Contractor shall not relieve the the Contractor shall not relieve the Contractor of his obligations under Contractor of his obligations under the provisions of the clause.the provisions of the clause.

The Contractor shall make use of The Contractor shall make use of and interpret those information at and interpret those information at his own risk.his own risk.

16. EMPLOYMENT OF 16. EMPLOYMENT OF WORKMENWORKMEN

a) Malaysian citizensa) Malaysian citizens..

The Contractor shall employ only The Contractor shall employ only Malaysian citizens as workmen.Malaysian citizens as workmen.

The contractor can only employ non-The contractor can only employ non-Malaysian citizens if he can satisfy the Malaysian citizens if he can satisfy the S.O. and can prove that Malaysian S.O. and can prove that Malaysian citizens are not available for some citizens are not available for some particular trades or skills that required particular trades or skills that required to complete the works.to complete the works.

Employment of non-Malaysian citizens Employment of non-Malaysian citizens is still subject to the approval of the is still subject to the approval of the Ministry of Labour and Manpower.Ministry of Labour and Manpower.

16. EMPLOYMENT OF 16. EMPLOYMENT OF WORKMEN (Cont)WORKMEN (Cont)

b) Ratio of workmen.b) Ratio of workmen.

The ratio of Malaysian citizens who The ratio of Malaysian citizens who shall be employed by the shall be employed by the Contractor in the execution of the Contractor in the execution of the contract shall reflect the racial ratio contract shall reflect the racial ratio of the citizens of the country as of the citizens of the country as prescribed by the Government from prescribed by the Government from time to time.time to time.


c) Particulars of labour.c) Particulars of labour.

The Contractor shall furnish all The Contractor shall furnish all particulars in respect of labour particulars in respect of labour employed by him to the Department employed by him to the Department of Labour on the commencement of of Labour on the commencement of the works in accordance with the the works in accordance with the requirements of the Employment requirements of the Employment Ordinance 1955, employment Ordinance 1955, employment (Restriction) Act 1968, and Internal (Restriction) Act 1968, and Internal Security (Registration of Labour) Security (Registration of Labour) Regulation 1960 or any subsequent Regulation 1960 or any subsequent modification or re-enactment.modification or re-enactment.


d) Source of labour.d) Source of labour.

All workmen employed in connection with All workmen employed in connection with the works shall be employed from the the works shall be employed from the district where the works are situated. district where the works are situated.

Employment of workmen from other Employment of workmen from other districts only can be done if such workmen districts only can be done if such workmen are not available in the said district.are not available in the said district.

The Contractor shall immediately arrange The Contractor shall immediately arrange with the Local Labour Office, District with the Local Labour Office, District Officer to effect such employment after Officer to effect such employment after receipt of acceptance of tenderreceipt of acceptance of tender..


e) On-site Training Programmee) On-site Training Programme

The Contractor shall employ the The Contractor shall employ the Works trainees provided by the Works trainees provided by the Manpower Department, Ministry of Manpower Department, Ministry of Labour and Manpower for the Labour and Manpower for the purpose of providing site training to purpose of providing site training to the workers if required by the the workers if required by the Government.Government.


f) Compliance by sub-contractors.f) Compliance by sub-contractors.

The Contractor shall cause his sub-The Contractor shall cause his sub-contractors (including “labour-contractors (including “labour-only” sub-contractors) and only” sub-contractors) and nominated sub-contractors to nominated sub-contractors to comply the provisions of this comply the provisions of this condition.condition.

17. COMPLIANCE WITH 17. COMPLIANCE WITH EMPLOYMENT ORDINANCE 1955 EMPLOYMENT ORDINANCE 1955

etc.etc.

The Contractor shall comply and shall cause The Contractor shall comply and shall cause his sub-contractors (including “labour-only” his sub-contractors (including “labour-only” sub-contractors) and nominated sub-sub-contractors) and nominated sub-contractors to comply with all the contractors to comply with all the requirements of the Employment Ordinance requirements of the Employment Ordinance 1955, Employment (Restriction) Act 1968, 1955, Employment (Restriction) Act 1968, Employee’s Provident Fund Ordinance 1951, Employee’s Provident Fund Ordinance 1951, the Industrial Relations Act 1967 and any the Industrial Relations Act 1967 and any other law relating to the employment of other law relating to the employment of workmen in the employment of workmen for workmen in the employment of workmen for the execution of the contract.the execution of the contract.

17. COMPLIANCE WITH 17. COMPLIANCE WITH EMPLOYMENT ORDINANCE 1955 EMPLOYMENT ORDINANCE 1955

etc. (Cont)etc. (Cont)

The Contractor shall not be entitled The Contractor shall not be entitled to any claim for additional costs to any claim for additional costs and payments in respect of his and payments in respect of his compliance with this condition. compliance with this condition.

18. DAYS AND HOURS OF 18. DAYS AND HOURS OF WORKINGWORKING

No work shall be done without the No work shall be done without the written permission of the S.O. on:written permission of the S.O. on: The weekly day of rest,The weekly day of rest, Any public holiday which is Any public holiday which is

recognized in the district where the recognized in the district where the contract is being carried out,contract is being carried out,

Between 6 p.m. to 6 a.m. in the Between 6 p.m. to 6 a.m. in the following morning.following morning.

18. DAYS AND HOURS OF 18. DAYS AND HOURS OF WORKING (Cont)WORKING (Cont)

The Contractor shall comply fully The Contractor shall comply fully with all the requirements of the with all the requirements of the Employment Ordinance 1955 or Employment Ordinance 1955 or any subsequent modification or any subsequent modification or re-enactment when such written re-enactment when such written application is approved by the application is approved by the S.O.S.O.

19. FOREMAN AND 19. FOREMAN AND ASSISTANTSASSISTANTS

The Contractor shall keep constantly a competent The Contractor shall keep constantly a competent general foreman and assistants who capable of general foreman and assistants who capable of receiving instructions in Bahasa Malaysia or receiving instructions in Bahasa Malaysia or English in each trade on the site.English in each trade on the site.

Such foreman shall be deemed as a site agent of Such foreman shall be deemed as a site agent of the Contractor and any directions, explanations the Contractor and any directions, explanations or instructions given to such foreman by the S.O. or instructions given to such foreman by the S.O. shall be deemed to have been given to the shall be deemed to have been given to the Contractor under the contract. Contractor under the contract.

20. WAGES BOOKS AND TIME 20. WAGES BOOKS AND TIME SHEETSSHEETS

The Contractor shall keep and shall cause The Contractor shall keep and shall cause his sub-contractors (including “labour-his sub-contractors (including “labour-only” sub-contractors) and nominated sub-only” sub-contractors) and nominated sub-contractors to keep proper wages books contractors to keep proper wages books and time sheets showing wages paid to and time sheets showing wages paid to and the time worked by all workmen and the time worked by all workmen employed by him and his sub-contractor, employed by him and his sub-contractor, on demand for inspection by any persons on demand for inspection by any persons authorized by the S.O. and for the authorized by the S.O. and for the performance of the contract.performance of the contract.

21. 21. Default in Payment of Default in Payment of WagesWages

Failure from the contractor or his Failure from the contractor or his sub-contractor and Nominated sub-contractor and Nominated sub-contractor to:sub-contractor to:

-- pay the wages of the pay the wages of the workmen workmen

-- contribution to the EPF for contribution to the EPF for the the workmen workmen

-- claims filed against the claims filed against the contractor contractor in Department of in Department of Labour Labour

21. 21. Default in Payment of Default in Payment of WagesWages (Cont) (Cont)

The S.O. after viewing the The S.O. after viewing the evidence can make ready evidence can make ready the payment by deducting the payment by deducting any payment towards the any payment towards the contractor at any time contractor at any time during the contract period.during the contract period.

22.22. Discharge of Discharge of WorkmenWorkmen

The contractor is responsible The contractor is responsible for for employing his technical and non employing his technical and non

technical workforce who are technical workforce who are both both efficient and good in efficient and good in character.character.

If the S.O. finds that the If the S.O. finds that the behaviour behaviour of person (s) employed of person (s) employed misconducts misconducts or or caused delays or caused delays or incompetent, incompetent, he is empowered he is empowered to to instruct in instruct in writing the writing the removal of such removal of such employees employees

22.22.Discharge of WorkmenDischarge of Workmen (Cont)(Cont)

Without delaying, a Without delaying, a replacement would be found replacement would be found with the approval of the S.O.with the approval of the S.O.

The contractor will not be The contractor will not be entitled for any expenses entitled for any expenses claims incurred in this clause.claims incurred in this clause.

23.23. Access for the S.O. to Access for the S.O. to the Worksthe Works

The contractor has to grant the The contractor has to grant the S.O. and the representatives S.O. and the representatives access ataccess at reasonable times to:reasonable times to:

WorksWorks SiteSite WorkshopsWorkshops Other places of the contractor Other places of the contractor

where work is done for the contractwhere work is done for the contract

The contractor has to do The contractor has to do the same the same for the places for the places of works undertaken by the of works undertaken by the sub-contractors and the sub-contractors and the nominated sub-contractorsnominated sub-contractors

23.23. Access for the S.O. to the Access for the S.O. to the WorksWorks (Cont) (Cont)

24.24.VariationVariation

a)a) The S.O. is empowered to issue change The S.O. is empowered to issue change orders which has to be confirmed in orders which has to be confirmed in writing. These changes would not weakenwriting. These changes would not weaken the contract.the contract.

b)b) Variation is defined as:Variation is defined as:

AAlteration or modification of the design, lteration or modification of the design, quality or quantity of works shown in the quality or quantity of works shown in the drawings, BQ and specifications.drawings, BQ and specifications.

Addition, omission or substitution of Addition, omission or substitution of worksworks

Alteration or removal in the kind or Alteration or removal in the kind or standard or any materials or goods to be standard or any materials or goods to be used in the works for the contract.used in the works for the contract.

25.25. Measurement & Valuation Measurement & Valuation of Works Including Variationof Works Including Variation

a)a) If the works are not similar and notIf the works are not similar and not executed under similar conditions, a executed under similar conditions, a reasonable rate or a fair valuation reasonable rate or a fair valuation shall be made by the S.O.shall be made by the S.O.

b)b) The BQ rates will determine the value The BQ rates will determine the value of works omitted. If the omission of works omitted. If the omission amounts to varying condition of the amounts to varying condition of the remaining works, then a reasonable remaining works, then a reasonable rate or a fair valuation shall be made rate or a fair valuation shall be made by the S.O.by the S.O.


(Cont)(Cont)

c)c) Amount to be paid for quantities Amount to be paid for quantities of work stated as of work stated as provisional will provisional will be subjected to re-measurementbe subjected to re-measurement once theonce the contract is endedcontract is ended..

d)d) Works which cannot be properlyWorks which cannot be properly measured or valued:measured or valued:


(Cont)(Cont)

an allowance would be made to the an allowance would be made to the contractor to enable him quote day-contractor to enable him quote day-work price with 15% mark-up which work price with 15% mark-up which includes the costs for ordinary plants, includes the costs for ordinary plants, tool, scaffolding, supervision and profit.tool, scaffolding, supervision and profit.

The contractor is to furnish the S.O. The contractor is to furnish the S.O.

with vouchers, receipts and wage books with vouchers, receipts and wage books specifying the time, for labour and plant specifying the time, for labour and plant and materials used in not more than 7 and materials used in not more than 7 days after executing the work.days after executing the work.


(Cont)(Cont)

e)e) S.O. is responsible to give priorS.O. is responsible to give prior notice notice to the contractor to attend or send a to the contractor to attend or send a qualified agent to assist the S.O. or the qualified agent to assist the S.O. or the representative to undertake therepresentative to undertake the measurement.measurement.

Failure on the contractor to attendFailure on the contractor to attend or or send a qualified agent would deem send a qualified agent would deem whatever measurement taken by the whatever measurement taken by the S.O. to be the correct measurement of S.O. to be the correct measurement of work.work.

25.25. Measurement & Valuation of Measurement & Valuation of Works Including VariationWorks Including Variation (Cont) (Cont)

f)f) In respect of variation, the In respect of variation, the amount to be allowed shall amount to be allowed shall be added or deducted from be added or deducted from the contract sum the contract sum appropriately.appropriately.

26.26.Bills of QuantitiesBills of Quantities

a)a) The BQ is part of the contract and theThe BQ is part of the contract and the quality and quantity of works under thequality and quantity of works under the contract follows the description of the BQcontract follows the description of the BQ which shall be the basis of the Contract which shall be the basis of the Contract Sum.Sum.

b)b) The BQ, unless stated, shall be The BQ, unless stated, shall be prepared prepared with accordance to the Standard Method of with accordance to the Standard Method of Measurement of Building Works published Measurement of Building Works published by the Institute of Surveyors Malaysia.by the Institute of Surveyors Malaysia.

26.26.Bills of QuantitiesBills of Quantities (Cont)(Cont)

c)c) Quantities that are Quantities that are provisionalprovisional are are estimated quantities and therefore estimated quantities and therefore the contractor should not be take the contractor should not be take it as the actual figure.it as the actual figure.

d)d) Prices and rate submitted by the Prices and rate submitted by the contractor is subject to agreement contractor is subject to agreement ofof the S.O. and prior to signing thethe S.O. and prior to signing the contract, the S.O. can reasonablycontract, the S.O. can reasonably change the price or rate.change the price or rate.

26.26.Bills of QuantitiesBills of Quantities (Cont)(Cont)

Any adjustment, error or Any adjustment, error or omission shouldomission should be rectified be rectified prior to signing of the prior to signing of the contract andcontract and the corrected the corrected amount should reflect theamount should reflect the amount in the Form of amount in the Form of Tender.Tender.

27.27. Sub-Letting and Sub-Letting and

AssignmentAssignment

a)a) Unless provided in the contract, theUnless provided in the contract, the contractor is not to sub-let the entire or contractor is not to sub-let the entire or part of the works without prior written part of the works without prior written notice to the S.O. notice to the S.O.

If consent is given to sub-let, theIf consent is given to sub-let, the contractor is still liable under thecontractor is still liable under the contract and shall be responsible forcontract and shall be responsible for the the acts, defaults and neglectacts, defaults and neglect carried out carried out by the sub-contractorsby the sub-contractors..

Provision of labour on a pieceworkProvision of labour on a piecework basis is basis is not included in this categorynot included in this category..

27.27. Sub-Letting and Sub-Letting and Assignment Assignment (Cont)(Cont)

b)b) The of sub-letting of the sub-The of sub-letting of the sub-contractor under sub-contract contractor under sub-contract shall be determined shall be determined immediately upon the immediately upon the determination of the determination of the contractor’s employment contractor’s employment under the contract.under the contract.

27.27. Sub-Letting and Sub-Letting and Assignment Assignment (Cont)(Cont)

c)c) Sub-contractors employed for Sub-contractors employed for thethe works is only limited within theworks is only limited within the

district where the works are district where the works are situated situated or unlessor unless an unavailability an unavailability of such of such expertise, they can be expertise, they can be employed employed from within thefrom within the state.state.

Variation to this is only due Variation to this is only due from thefrom the consent of the S.O.consent of the S.O.

27.27. Sub-Letting and Assignment Sub-Letting and Assignment (Cont)(Cont)

d)d) The contractor cannot assign The contractor cannot assign the the entire contract or part of it in entire contract or part of it in favour favour of the contractor’s banker, of the contractor’s banker, financial financial institution or corporation institution or corporation without without prior consent from the prior consent from the government.government.

28.28. Nominated Sub-contractors / Nominated Sub-contractors / SuppliersSuppliers

a)a) All expertise personnel undertakingAll expertise personnel undertaking the works or supplying materials the works or supplying materials forfor works under the P.C. Sums in works under the P.C. Sums in the BQthe BQ shall be nominated by the shall be nominated by the S.O. andS.O. and employed by the employed by the contractor.contractor.

b)b) The S.O. or contractor is obliged to The S.O. or contractor is obliged to obtainobtain tenders for nominated sub-tenders for nominated sub-contractorscontractors works or supply of works or supply of materials for thematerials for the P.C. Sum works or P.C. Sum works or provisional Sums whichprovisional Sums which areare included in the BQincluded in the BQ upon receiving upon receiving S.O. instruction.S.O. instruction.

28.28. Nominated Sub-Nominated Sub-CContractors / ontractors / Suppliers Suppliers (Cont)(Cont)

c)c) The S.O. shall not nominate a sub-contractor or The S.O. shall not nominate a sub-contractor or a supplier if:a supplier if:

Reasonable objection made by the contractor Reasonable objection made by the contractor within 1within 14 days of the instruction by the S.O.4 days of the instruction by the S.O.

The person does not enter into a sub-contract The person does not enter into a sub-contract terms and conditions stated in the government terms and conditions stated in the government standard form of sub-contract under PWD 203N standard form of sub-contract under PWD 203N or PWD 203Por PWD 203P

The person that give no indemnity against The person that give no indemnity against government as required under the conditions of government as required under the conditions of the contractthe contract


d)d) The S.O. shall undertake one of theThe S.O. shall undertake one of the following in the event thefollowing in the event the contractor is contractor is not required to enter into a sub-not required to enter into a sub-contract:contract:

Nominate an alternative sub-Nominate an alternative sub-contractor or suppliercontractor or supplier

Vary the works in accordance to the Vary the works in accordance to the variation clausevariation clause

Arrange for the contractor to Arrange for the contractor to undertake the works as per clause 30dundertake the works as per clause 30d


e)e) Interim certificates of the S.O. will Interim certificates of the S.O. will separately state the amounts due to separately state the amounts due to each nominated sub-contractors or each nominated sub-contractors or suppliers.suppliers.

The amount shall be paid by the The amount shall be paid by the contractors to them within 14 days contractors to them within 14 days after the contractor receives theafter the contractor receives the payment from the governmentpayment from the government

‘‘pay when paid’pay when paid’


f)f) The S.O. is entitled to demand theThe S.O. is entitled to demand the contractor for proof of previouscontractor for proof of previous payment made to the nominated sub-payment made to the nominated sub-ccontractors or suppliers. ontractors or suppliers.

Failure by the contractor to pay theFailure by the contractor to pay the nominated subcontractors ornominated subcontractors or suppliers suppliers promptly can entitle the government promptly can entitle the government to pay directly to the nominatedto pay directly to the nominated subcontractors or suppliers.subcontractors or suppliers.


g)g) The conditions The conditions stated in the contract stated in the contract cannot be seen as the cannot be seen as the government being liable government being liable for the nominatedfor the nominated subcontractors or the subcontractors or the suppliers.suppliers.

29.29. Responsibilities of Contractor Responsibilities of Contractor for Nominated Sub-contractors / for Nominated Sub-contractors /

SuppliersSuppliers

aa) The contractor is fully ) The contractor is fully responsible for the defaults of responsible for the defaults of the nominated subcontractor or the nominated subcontractor or nominated supplier and the nominated supplier and the government is not liable to the government is not liable to the contractor inn any way.contractor inn any way.

29.29. Responsibilities of Contractor Responsibilities of Contractor for Nominated Sub-contractors / for Nominated Sub-contractors /

SuppliersSuppliers

b)b) If the nominated If the nominated subcontractor or subcontractor or supplier abandons supplier abandons the contract, the the contract, the contractor can:contractor can:

Engage another subcontractor with Engage another subcontractor with the consent of the S.O.the consent of the S.O.

Undertake the subcontract works Undertake the subcontract works himself.himself.

30.30. Prime Cost and Provisional Prime Cost and Provisional CostCost

a)a) Prime cost sum provided in the Prime cost sum provided in the BQ BQ are works that would be executed are works that would be executed

by nominated subcontractors or by nominated subcontractors or for for materials supplied by nominated materials supplied by nominated

suppliers.suppliers.

The sum due to the contractor shall be The sum due to the contractor shall be in the form of profit or attendance as in the form of profit or attendance as quoted by thequoted by the contractor in the BQ.contractor in the BQ.

30.30. Prime Cost and Prime Cost and Provisional Cost Provisional Cost (Cont)(Cont)

b)b) Provisional sum provided in the BQ Provisional sum provided in the BQ are for are for thethe works or the supply of works or the supply of

goods or goods or materials which cannotmaterials which cannot be be estimated,estimated, defined at the time of tender.defined at the time of tender.

If the amount in the provisional sum is If the amount in the provisional sum is notnot used entirely or partly, the amount used entirely or partly, the amount not used isnot used is deducted from the contract deducted from the contract sum.sum.

The valuation of the works in theThe valuation of the works in the provisional sum shall be subjected to re-provisional sum shall be subjected to re-measurementmeasurement upon completion.upon completion.

30.30. Prime Cost and Provisional Prime Cost and Provisional Cost Cost (Cont)(Cont)

c)c) If the S.O. decides to If the S.O. decides to treat treat the worksthe works or or materials in materials in the provisional the provisional sum sum as prime as prime costcost sum, then the item sum, then the item would would be dealtbe dealt accordingly as accordingly as the prime cost sum items.the prime cost sum items.


d)d) If the contractor desire to If the contractor desire to carry out carry out works under the works under the prime cost sum and prime cost sum and the S.O. is the S.O. is prepared to accept prepared to accept tenders from tenders from the contractor for the the contractor for the works, works, the contractor may do so the contractor may do so without without prejudice to government’s prejudice to government’s right to right to reject the lowest tenderreject the lowest tender


If the contractor’ s tender If the contractor’ s tender is is accepted, the contractor accepted, the contractor would would not be entitled to the not be entitled to the profit profit and attendance and attendance charges as charges as contained in the contained in the BQ.BQ.

31. Artists and Tradesmen31. Artists and Tradesmen

Contractor must allow and permit Contractor must allow and permit the tradesmen that may engaged the tradesmen that may engaged by Government to execute the by Government to execute the works that not forming part of the works that not forming part of the contract.contract.

i.e. to allow work to be carried out i.e. to allow work to be carried out by others e.g. tenaga, telekomby others e.g. tenaga, telekom

32. Indemnities to Government in 32. Indemnities to Government in Respect of Personal Injuries and Respect of Personal Injuries and

Damage to PropertyDamage to Property

a)a) Contractor is liable and shall indemnify Contractor is liable and shall indemnify the Government for any damage, the Government for any damage, expense, liability, loss, claim or other expense, liability, loss, claim or other proceedings against personal injury or proceedings against personal injury or death of any person in the execution death of any person in the execution of the Works.of the Works.

i.e. coverage against personal injury or i.e. coverage against personal injury or deathdeath

32. Indemnities to Government 32. Indemnities to Government in Respect of Personal Injuries in Respect of Personal Injuries

and Damage to Property (cont.)and Damage to Property (cont.)

b)b) Contractor is liable and shall Contractor is liable and shall indemnify the Government for any indemnify the Government for any damage, expense, liability, loss, damage, expense, liability, loss, claim or other proceedings due to claim or other proceedings due to damage of any property in the damage of any property in the execution of the Works, and also due execution of the Works, and also due to any negligence, omission, breach to any negligence, omission, breach of Contract, including default of of Contract, including default of Contractor responsibilities.Contractor responsibilities.

32. Indemnities to Government in 32. Indemnities to Government in Respect of Personal Injuries and Respect of Personal Injuries and

Damage to Property (cont.)Damage to Property (cont.)

c)c) For any negligence or omission For any negligence or omission by Government or S.O. in failing by Government or S.O. in failing to supervise Contractor’s site to supervise Contractor’s site operation, the indemnities given operation, the indemnities given by the Contractor under sub-by the Contractor under sub-clauses (a) and (b) should not be clauses (a) and (b) should not be reduced.reduced.

33. Insurance Against 33. Insurance Against Personal Injuries and Personal Injuries and Damage to PropertyDamage to Property

a)a) That the obligations of the contractor That the obligations of the contractor to effect and maintain insurances is to effect and maintain insurances is additional to and does not effect the additional to and does not effect the indemnity given by the contractor to indemnity given by the contractor to the government under clause 32the government under clause 32

The insurances must be effected The insurances must be effected before the commencement of any before the commencement of any work under the contractwork under the contract

33. Insurance Against Personal 33. Insurance Against Personal Injuries and Damage to Property Injuries and Damage to Property

(cont.)(cont.)

b)b) The insurance as referred to sub-The insurance as referred to sub-clause (a) shall be effected and clause (a) shall be effected and maintained in the joint names of the maintained in the joint names of the Government and Contractor for the Government and Contractor for the whole construction period, including whole construction period, including the Defects Liability Period. the Defects Liability Period. Contractor is responsible to produce Contractor is responsible to produce the relevant policies of the the relevant policies of the insurance together with receipts of insurance together with receipts of premium paid to the S.O.premium paid to the S.O.

33. Insurance Against Personal 33. Insurance Against Personal Injuries and Damage to Property Injuries and Damage to Property (cont.)(cont.)

c)c) If any default in renewing such If any default in renewing such insurance by Contractor, the insurance by Contractor, the Government or S.O. may renew Government or S.O. may renew the insurance as aforesaid and the insurance as aforesaid and may deduct the amount paid due may deduct the amount paid due to Contractor in respect of to Contractor in respect of premiums paid.premiums paid.

34. Workmen’s 34. Workmen’s CompensationCompensation

a)a) Contractor is liable and shall Contractor is liable and shall indemnify the Government, and indemnify the Government, and all workmen employed for all workmen employed for compensation payment under the compensation payment under the Workmen’s Compensation Workmen’s Compensation Ordinance 1952 and the Ordinance 1952 and the Employee’s Social Security Act, Employee’s Social Security Act, 1969.1969.

34. Workmen’s 34. Workmen’s Compensation (cont.)Compensation (cont.)

b)b) i)Policies of insurance in the joint names of i)Policies of insurance in the joint names of the Government and Contractor are the Government and Contractor are necessary at Contractor own cost and necessary at Contractor own cost and expense to cover his liability in respect of expense to cover his liability in respect of workmen employed by him. Also, if any workmen employed by him. Also, if any Nominated Sub-contractor to take out, Nominated Sub-contractor to take out, insurance policies should in the joint insurance policies should in the joint names of the Government, the Contractor names of the Government, the Contractor and the Nominated Sub-contractor to and the Nominated Sub-contractor to cover the liability of Contractor in respect cover the liability of Contractor in respect of workmen employed by the Nominated of workmen employed by the Nominated Sub-contractor.Sub-contractor.


b)b) ii)the policies so taken out shall ii)the policies so taken out shall be as per endorsement A or B. be as per endorsement A or B.


c)c) The policies must be deposited with The policies must be deposited with the S.O. and Contractor shall the S.O. and Contractor shall maintain it for the whole maintain it for the whole construction period, and also construction period, and also covered during Defects Liability covered during Defects Liability Period where defect rectification Period where defect rectification work (if any) is carried out. The work (if any) is carried out. The Contractor also responsible to Contractor also responsible to produce the receipt in respect of produce the receipt in respect of premium paid to the S.O.premium paid to the S.O.


d)d) If any default is made by the If any default is made by the Contractor in complying the term of Contractor in complying the term of this Condition or any term of this this Condition or any term of this Contract, the Government or S.O. may Contract, the Government or S.O. may withhold an amount from any money withhold an amount from any money which would due to Contractor, and which would due to Contractor, and pay such claim for compensation by pay such claim for compensation by workmen.workmen.

e)e) The provision in this clause would not The provision in this clause would not derogate the Government’s right to be derogate the Government’s right to be indemnified by Contractor under sub-indemnified by Contractor under sub-clause (a) of this Condition.clause (a) of this Condition.

35. Employee’s Social 35. Employee’s Social Security Act, 1969Security Act, 1969

a)a) The Contractor will not be required The Contractor will not be required to take out any Workmen’s to take out any Workmen’s Compensation Insurance Policy Compensation Insurance Policy under Cl. 34(b) if the workers are under Cl. 34(b) if the workers are liable for coverage under the liable for coverage under the Employee’s Social Security Act, Employee’s Social Security Act, 1969. In this case, Contractor shall 1969. In this case, Contractor shall register his employees and register his employees and contribute under Social Security contribute under Social Security Scheme (SOCSO).Scheme (SOCSO).

35. Employee’s Social 35. Employee’s Social Security Act, 1969 (cont.)Security Act, 1969 (cont.)

b)b) The Contractor shall pay all The Contractor shall pay all contributions from time to time contributions from time to time until the completion of his until the completion of his Contract. He shall produce to the Contract. He shall produce to the S.O. contribution cards or stamp S.O. contribution cards or stamp vouchers as evidence of vouchers as evidence of payment.payment.

35. Employee’s Social 35. Employee’s Social Security Act, 1969 (cont)Security Act, 1969 (cont)

c)c) If any default caused by If any default caused by Contractor, the Government or Contractor, the Government or S.O. may withhold an amount S.O. may withhold an amount from any money which would due from any money which would due to Contractor, and pay to Contractor, and pay compensation claim by workmen.compensation claim by workmen.

35. Employee’s Social 35. Employee’s Social Security Act, 1969 (cont)Security Act, 1969 (cont)

d)d) Nothing in the clause would Nothing in the clause would derogate the Government’s derogate the Government’s right to be indemnified by right to be indemnified by Contractor under Clause 34(a) Contractor under Clause 34(a) in respect of all compensation, in respect of all compensation, costs and other expenses.costs and other expenses.

36. Insurance of Works36. Insurance of Works

a)a) The Contractor shall in the joint The Contractor shall in the joint names of the Government and names of the Government and

Contractor insure against loss and Contractor insure against loss and damage by fire, lightning, explosion, damage by fire, lightning, explosion,

storm, flood, ground subsidence storm, flood, ground subsidence and and others, including materials and others, including materials and

goods so insured until the goods so insured until the completion of the whole Works.completion of the whole Works.

36. Insurance of Works 36. Insurance of Works (cont.)(cont.)

b)b) The insurance shall be The insurance shall be effected with effected with an insurance an insurance company approved by company approved by the S.O. the S.O. and the Contractor shall and the Contractor shall produce produce to the S.O. the policy and to the S.O. the policy and the the receipts in respect of the receipts in respect of the premium paid.premium paid.


c)c) If Contractor failed to renew If Contractor failed to renew such such insurance, the insurance, the Government or S.O. Government or S.O. may renew may renew such insurance and pay such insurance and pay the the premium by deducting the premium by deducting the amount from any monies due to amount from any monies due to the the Contractor.Contractor.


d)d) If any occurrences of loss or damage to If any occurrences of loss or damage to Work prior to the completion of the Work prior to the completion of the Works, the Contractor shall restore the Works, the Contractor shall restore the damaged work even before the pay out damaged work even before the pay out by the insurance company has been by the insurance company has been made. All monies received from the made. All monies received from the insurance shall be paid to the insurance shall be paid to the Government first and then be released to Government first and then be released to the Contractor by installments on the the Contractor by installments on the certificate for payment issued by S.O.certificate for payment issued by S.O.

37. Performance Bond37. Performance Bond

a)a) The Contractor shall deposit with the The Contractor shall deposit with the Government a Performance Bond equal to 5% Government a Performance Bond equal to 5% of the Contract Sum for the due observance of the Contract Sum for the due observance and performance of this Contract. The and performance of this Contract. The Performance Bond shall be in cash, or Performance Bond shall be in cash, or Treasury’s Deposit, Banker’s Draft or an Treasury’s Deposit, Banker’s Draft or an approved Banker’s or Insurance Guarantee.approved Banker’s or Insurance Guarantee.

b)b) The Performance Bond shall be held or The Performance Bond shall be held or remain valid and effective for such period as remain valid and effective for such period as is provided in the approved Banker’s or is provided in the approved Banker’s or Insurance Guarantee. Normally 6 month after Insurance Guarantee. Normally 6 month after DLP.DLP.

37. Performance Bond 37. Performance Bond (cont.)(cont.)

c)c) If the Contractor breach the Contract, the If the Contractor breach the Contract, the Government or S.O. may utilize and make Government or S.O. may utilize and make payments form the Performance Bond.payments form the Performance Bond.

d)d) The Performance Bond may be released to The Performance Bond may be released to the Contractor on the completion of the Contractor on the completion of making good all defects which may making good all defects which may appear during the Defects Liability Period appear during the Defects Liability Period and upon the giving of the Certificate of and upon the giving of the Certificate of Completion of Making Good Defects. Completion of Making Good Defects.

38. Possession of Site38. Possession of Site

a)a) No work shall be commenced unless No work shall be commenced unless the Performance Bond and the Performance Bond and insurance policies have been insurance policies have been deposited with the Government or deposited with the Government or the S.O.the S.O.

b)b) Possession of the Site as complete Possession of the Site as complete shall be given on or before the “date shall be given on or before the “date for Possession” stated in the Letter for Possession” stated in the Letter of Acceptanceof Acceptance

38. Possession of Site 38. Possession of Site (Cont)(Cont)

c)c) Restrictions upon possession of the Site Restrictions upon possession of the Site shall be stated in the Appendix in the shall be stated in the Appendix in the Contract Documents.Contract Documents.

d)d) S.O. may issue instructions to the S.O. may issue instructions to the revision of the “Date for Possession” revision of the “Date for Possession” and “Date for Completion” if delay in and “Date for Completion” if delay in giving possession of the Site. Contractor giving possession of the Site. Contractor shall not be entitled to any claim for shall not be entitled to any claim for loss or damage caused by delay or loss or damage caused by delay or terminate/end the contractterminate/end the contract


e)e) S.O. Shall give written notice to S.O. Shall give written notice to the Contractor of the causes of the Contractor of the causes of delay if possession of Site is delay if possession of Site is delayed beyond three months from delayed beyond three months from “Date from Possession”. “Date from Possession”. Contractor may notice S.O. within Contractor may notice S.O. within fourteen days to agree proceed fourteen days to agree proceed with the works or determine his with the works or determine his own employment.own employment.


f)f) Contractor shall render all Contractor shall render all necessary assistance and necessary assistance and facilities required by facilities required by representative of Government to representative of Government to carries out investigation to carries out investigation to accident or failure in connection accident or failure in connection with the Works.with the Works.

39. Completion of Works39. Completion of Works

a)a) The Contractor shall complete the whole The Contractor shall complete the whole Works on or before the “date for Works on or before the “date for Completion” or extended date as per Completion” or extended date as per clause 43 (EOT)clause 43 (EOT)

b)b) When the whole Works reached practical When the whole Works reached practical completion and the satisfaction of the completion and the satisfaction of the S.O. the date of completion shall be the S.O. the date of completion shall be the date of the commencement of the date of the commencement of the Defects Liability Period.Defects Liability Period.

• PRACTICAL COMPLETION BASED ON THE OPINION PRACTICAL COMPLETION BASED ON THE OPINION OF THE SO i.e. work has reached completion, only OF THE SO i.e. work has reached completion, only very minor work left (ready to be used)very minor work left (ready to be used)

40. Damages for Non-40. Damages for Non-completioncompletion

Under this clause, contractor should be Under this clause, contractor should be responsible for failure to complete work responsible for failure to complete work on time, as stated in the Appendix or on time, as stated in the Appendix or extended time under Clause 43.extended time under Clause 43.

Damages known as Liquidated and Damages known as Liquidated and Ascertained Damages (LAD) with issuing Ascertained Damages (LAD) with issuing of Certificate of Non-Completion.of Certificate of Non-Completion. LAD avoid the necessity to prove actual cost LAD avoid the necessity to prove actual cost

sufferedsuffered

41. Sectional Completion41. Sectional Completion

This clause is invoked when there is This clause is invoked when there is separate dates for completion and rates for separate dates for completion and rates for LADLAD

SO issues separate Certificate of Practical SO issues separate Certificate of Practical Completion, Delay and Extension of Time, Completion, Delay and Extension of Time, LAD for delay, and Defect Liability Periods.LAD for delay, and Defect Liability Periods.

Apply Apply mutatis mutandis mutatis mutandis in absence of any in absence of any express provision in Contract Document i.e. express provision in Contract Document i.e. each phases is treated as a separate each phases is treated as a separate contractcontract

42. Partial Occupation by 42. Partial Occupation by GovernmentGovernment

Stated that governnment can take Stated that governnment can take possession on part of works done with possession on part of works done with consent of Contractor under conditions:consent of Contractor under conditions:

a)a) S.O. shall issue Certificate of Partial S.O. shall issue Certificate of Partial Occupation within 7 days from date of Occupation within 7 days from date of possession.possession.

b)b) Relevant part shall reached practical Relevant part shall reached practical completion (for purpose of Clauses 39 & completion (for purpose of Clauses 39 & 45).45).

c)c) Contractor shall repair relevant part Contractor shall repair relevant part before end of Defects Liability Period. before end of Defects Liability Period.

42. Partial Occupation by 42. Partial Occupation by Government (cont)Government (cont)

d)d) Contractor shall give notice to insurer Contractor shall give notice to insurer of Partial occupation by Government.of Partial occupation by Government.

e)e) LAD after certification of practical LAD after certification of practical completion shall be reduced in completion shall be reduced in proportion which the total value of the proportion which the total value of the relevant part bear to Contract Sum.relevant part bear to Contract Sum.

f)f) Performance Bond shall be released or Performance Bond shall be released or refunded only after completion of refunded only after completion of making good all defects.making good all defects.

43. Delay and Extension of 43. Delay and Extension of TimeTime

Extension of time permitted with Extension of time permitted with written notice of causes of delay by written notice of causes of delay by Contractor to S.O. Contractor to S.O.

Causes of delayCauses of delaya)a) By force majeureBy force majeureb)b) By exceptionally inclement weatherBy exceptionally inclement weatherc)c) By direction of S.O.By direction of S.O.d)d) By loss or damage, referred to Clause By loss or damage, referred to Clause

3636e)e) By S.O.’s instruction under Clause 5. By S.O.’s instruction under Clause 5.

43. Delay and Extension of 43. Delay and Extension of TimeTime

Causes of delayCauses of delayf)f) By reason Contractor not received By reason Contractor not received

necessary instructionsnecessary instructionsg)g) By delay of possession of siteBy delay of possession of siteh)h) By reason of any action due to local By reason of any action due to local

combination of workmen, strike or combination of workmen, strike or lockout affecting trades employed.lockout affecting trades employed.

i)i) By delay by GovernmentBy delay by Governmentj)j) By Contractor inability for reason By Contractor inability for reason

beyond his control.beyond his control.k)k) By delay on part of supplierBy delay on part of supplier

44. Loss And Expense 44. Loss And Expense Caused by DelaysCaused by Delays

Under this clause, Contractor Under this clause, Contractor can claim loss or expense by can claim loss or expense by giving notice to S.O. within 1 giving notice to S.O. within 1 month of the occurrence of the month of the occurrence of the event, as referred to work event, as referred to work affected by reason stated in affected by reason stated in clause 43 (c), (f) or (i).clause 43 (c), (f) or (i).

45. Defects After 45. Defects After CompletionCompletion

a)a) Defects Liability Period is 6 months after date Defects Liability Period is 6 months after date of practical completion, and Contractor shall of practical completion, and Contractor shall be notified by S.O. to make good the defects be notified by S.O. to make good the defects at own cost.at own cost.

b)b) Any defect shall be reported by S.O. to Any defect shall be reported by S.O. to Contractor within 14 days after Defects Contractor within 14 days after Defects Liability Period and Contractor shall make Liability Period and Contractor shall make good the defects within 3 months of notice.good the defects within 3 months of notice.

c)c) Failure by Contractor to make good the Failure by Contractor to make good the defects may causes deduction from defects may causes deduction from Performance Bond or liquidated demand Performance Bond or liquidated demand (legal action). (legal action).

45. Defects After Completion 45. Defects After Completion (cont)(cont)

d)d) Deduction from sum to be paid to Deduction from sum to be paid to Contractor if existence of defects Contractor if existence of defects impracticable or inconvenient to impracticable or inconvenient to Government to have remedy.Government to have remedy.

e)e) After Contractor has made good of After Contractor has made good of defects, with approval by S.O., defects, with approval by S.O., Contractor shall be issued Certificate Contractor shall be issued Certificate of Completion of Making Good of Completion of Making Good Detects.Detects.

46. Unfulfilled 46. Unfulfilled ObligationsObligations

Contractor and Government Contractor and Government shall remain liable for the shall remain liable for the fulfillments of any obligation fulfillments of any obligation incurred.incurred.

This provision normally applies to This provision normally applies to any outstanding yet to be any outstanding yet to be completed on practical completed on practical completioncompletion

47. Payment to Contractor and 47. Payment to Contractor and Interim Certificates.Interim Certificates.

a)a) After Contractor has executed After Contractor has executed work, S.O. shall make evaluation work, S.O. shall make evaluation of the work so that payment can of the work so that payment can be made to Contractor.be made to Contractor.

b)b) Within 14 days from valuation, Within 14 days from valuation, S.O. shall issue Interim Certificate S.O. shall issue Interim Certificate to Contractor.to Contractor.

47. Payment to Contractor and 47. Payment to Contractor and Interim Certificates.Interim Certificates.

c)c) Sum to be certified in Interim Sum to be certified in Interim Certificate subject to agreement Certificate subject to agreement between parties.between parties.

d)d) Government shall make interim Government shall make interim payment on the amount certified payment on the amount certified to Contractor within 30 days or to Contractor within 30 days or period stated in Appendix.period stated in Appendix.

48. Final Certificate48. Final Certificate

a)a) Contractor shall submit all claims Contractor shall submit all claims (final) with all supporting documents (final) with all supporting documents to the S.O. within three month after to the S.O. within three month after practical completion.practical completion.

b)b) S.O. shall issue Final Certificate within S.O. shall issue Final Certificate within three month after the expiry of the three month after the expiry of the Defects Liability.Defects Liability.

c)c) Final Certificate shall be supported by Final Certificate shall be supported by document showing works accordance document showing works accordance with the terms of Contract.with the terms of Contract.

48. Final Certificate (Cont)48. Final Certificate (Cont)

d)d) S.O. Must make sure S.O. Must make sure contractor’s employee contractor’s employee received all wages before received all wages before making payment under Final making payment under Final Certificate.Certificate.

49. Effect of S.O.’s 49. Effect of S.O.’s CertificatesCertificates

S.O.’s certificate shall not be S.O.’s certificate shall not be considered as conclusive considered as conclusive evidence to the sufficiency of evidence to the sufficiency of work, materials or goods.work, materials or goods.

i.e. all certificates can be opened i.e. all certificates can be opened up, reviewed, and revised by the up, reviewed, and revised by the arbitrator or court in the event arbitrator or court in the event dispute arisesdispute arises

50. Deduction From Money 50. Deduction From Money Due to ContractorDue to Contractor

The Government or The S.O. The Government or The S.O. entitled to deduct money entitled to deduct money owing by the Contractor to owing by the Contractor to The Government from the The Government from the sum due and payable to the sum due and payable to the contractor.contractor.

51. Determination of 51. Determination of Contractor’s EmploymentContractor’s Employment

a)a) S.O. may give Contractor a notice by S.O. may give Contractor a notice by registered post to continue default registered post to continue default within fourteen days.within fourteen days.

b)b) The Government sent a notice to The Government sent a notice to Contractor by registered post to Contractor by registered post to determine the employment if determine the employment if Contractor commits an act of Contractor commits an act of bankruptcy.bankruptcy.

51. Determination of 51. Determination of Contractor’s Employment Contractor’s Employment

(Cont)(Cont)

c)c) (I)(I) If the Contractor employment is If the Contractor employment is

determined under sub-clause (a) determined under sub-clause (a) or (b), contractor shall stop all or (b), contractor shall stop all operation on site, remove all his operation on site, remove all his personnel, plant, tools, equipment personnel, plant, tools, equipment and goods from site.and goods from site.

(II)(II) The Government may complete The Government may complete the Works departmentally or the Works departmentally or employ other contractor.employ other contractor.


(Cont)(Cont)

c)c) (III)(III) The Contractor is obliged if required The Contractor is obliged if required

by SO to assign to the Government by SO to assign to the Government without payment the benefit of any without payment the benefit of any contracts (execution of work or contracts (execution of work or supply of good).supply of good).

(IV)(IV) The Contractor when instructed is The Contractor when instructed is required to remove from the site any required to remove from the site any temporary buildings, plants, tools, temporary buildings, plants, tools, equipment goods and materials equipment goods and materials belonging to or hired by him. The belonging to or hired by him. The Government has the power to sell Government has the power to sell those items if the Contractor fails to those items if the Contractor fails to fulfill instruction.fulfill instruction.


(Cont)(Cont)

c)c) (V)(V) The Government may claim any direct The Government may claim any direct

loss and/or damage the Government loss and/or damage the Government has suffered as a result of the has suffered as a result of the determination which include the determination which include the additional completion cost, lost of additional completion cost, lost of use, expenses incurred due to delay use, expenses incurred due to delay in completionin completion

(VI)(VI) If the Government completes the If the Government completes the works departmentally, costs of works departmentally, costs of supervision, interest, plant and supervision, interest, plant and equipment, depreciation, overhead equipment, depreciation, overhead charges and profit are included for charges and profit are included for calculating the completion costscalculating the completion costs

52. Effect of War or 52. Effect of War or EarthquakeEarthquake

When war or earthquake arises When war or earthquake arises during Contract, the continuance, during Contract, the continuance, suspension or termination of suspension or termination of contract shall be settled by contract shall be settled by agreement between Government agreement between Government and Contractor, or settled by and Contractor, or settled by Arbitration.Arbitration.

53. Fluctuation of Price53. Fluctuation of Price

The amount payable to the The amount payable to the Contractor shall be Contractor shall be increased or decreased in increased or decreased in accordance with the accordance with the formulae in the Special formulae in the Special Provisions to the Conditions Provisions to the Conditions of Contract.of Contract.

54. Arbitration54. Arbitration

a)a) Dispute or difference arise between the Dispute or difference arise between the Government and the Contractor shall be Government and the Contractor shall be referred to the S.O. for decision.referred to the S.O. for decision.

b)b) The S.O.’s decision must be in writing.The S.O.’s decision must be in writing.

c)c) Dispute or difference referred to Dispute or difference referred to arbitration within forty-five days if the arbitration within forty-five days if the S.O. fails to give decision or the S.O. fails to give decision or the Contractor dissatisfied with S.O. Contractor dissatisfied with S.O. decision.decision.

54. Arbitration (Cont)54. Arbitration (Cont)

d)d) Reference shall not be commenced Reference shall not be commenced until after the completion of the works until after the completion of the works or determination of the Contractor’s or determination of the Contractor’s Employment, or abandonment of the Employment, or abandonment of the work.work.

e)e) The Arbitrator have power to review The Arbitrator have power to review and revise certificate, opinion, decision, and revise certificate, opinion, decision, requisition or notice and to determine requisition or notice and to determine all matters in dispute.all matters in dispute.

54. Arbitration (Cont)54. Arbitration (Cont)

f)f) The award of the Arbitrator shall be final The award of the Arbitrator shall be final and binding on the parties.and binding on the parties.

g)g) The Government and the Contractor The Government and the Contractor shall appoint another person to act as shall appoint another person to act as the Arbitrator if the original Arbitrator is the Arbitrator if the original Arbitrator is dead or unwillingness or inability to act.dead or unwillingness or inability to act.

h)h) ““Reference” shall be reference to Reference” shall be reference to arbitration within the Arbitration Act arbitration within the Arbitration Act 1952.1952.

55. Stamp Duty55. Stamp Duty

Stamp Duty on the Stamp Duty on the Contract will be borne Contract will be borne by the Government.by the Government.

56. Bahasa Malaysia Text 56. Bahasa Malaysia Text Shall PrevailShall Prevail

The text in Bahasa Malaysia The text in Bahasa Malaysia shall prevail if any shall prevail if any inconsistency occurs in any inconsistency occurs in any texts.texts.