pam contract 2006 (without qty)

8/3/2019 PAM Contract 2006 (Without Qty)

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Agreement And Conditions

Of

PAM Contract 2006(Without Quantities)


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All parties must rely upon their own skill and judgment or upon those of their advisers when using this documentand PAM assumes no liability to any user or any third party in connection with such use.


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Table of Contents

Articles Of AgreementPage

Preliminary Recitals

ArticlesArticle 1 Contractor's ObligationsArticle 2 Contract SumArticle 3 ArchitectArticle 4 EngineerArticle 5 Quantity SurveyorArticle 6 Specialist ConsultantArticle 7 DefinitionsArticle 8 Meanings

Date of agreementParties to agreement and their addressesThe nature of the works and the locationThe drawings

2::::2-3334-7" 7

Attestation/Signatories Of The Parties 8

ClauseThe Conditions Of Contract

1.01.11. 21.31.42.02.12.22.32.43.03.13.23.33.43. 53.63.73.83.93.10

4.04.14.2

Contractor's ObligationsCompletion of Works in accordance with Contract DocumentTemporary work and construction method .Contractor's design and responsibilitiesDiscrepancy or divergence between documents

99999

Architect's Instructions eAI')Contractor to comply with AIAIProvisions empowering instructionsFailure of Contractor to comply with AI

99999

Contract Documents, Programme And As-built DrawingsContract DocumentsCustody of tender documentsCopies of documentsFurther drawings or detailsWorks ProgrammeProgramme not part of ContractArchitect 's acceptance of programmeAvailability of documentsLimitation of use of documentsAs-built Drawings and operation and maintenance manuals

99-10101010101010101010

Statutory Obligations, Notices, Fees And ChargesStatutory requirementsInconsistencies with statutory requirements

111111

PAM Contract 2006 (Without Quantities) (i)


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ClauseThe Conditions Of Contract (Cont'd)

Table of Contents (Coritd)

< 1 '..-'4.45.05 . 1

6.06.16.26.36.46.56.66.76.87 . 07.17.27.38.08.18.28.39 . 09. !10.010.!10.211.0ILl1 1 . 2" ,. ,..I.1 .:J1 1 . 411.511.611.711.81 1 . 9

11.012.112.2

13.013.11 4 . 014.114.21 4 . 314.415.015.11 5 . 215.315.4

Conforming to statutory obligationsFees, levies and chargesLevels And Setting Out Of The WorksSetting outMaterials, Goods And Workmanship To Conform To Description, Testing And InspectionStandards of works, materials, goods and workmanshipProvision of vouchersInspection and testingContractor's obligation not relievedWork not in accordance with the ContractNo compensation for time and costFailure of Contractor to complyWarranties in respect of materials and goodsRoyalties And Intellectual Property RightsIndemnity to EmployerContractor's liability to payGovernment royaltiesSite AgentSite AgentInstructions to Site AgentExclusion of Person employed on the WorksAccess To The WorksAccess to the WorksSite StaffDuty of Site StaffDirections given by Site StaffVariations, Provisional And Prime Cost SumsDefinition of VariationNo Variations required by Architect shall vitiate ContractIssue of Variations after Practical CompletionAI on P.C. Sums and Provisional SumsValuation of Variations and Provisional SumsValuation rulesAdditional expense caused by VariationAccess to Contractor's books and documentsVariations and additional expenses added to Contract SumQuality And Quantity Of The WorksQuality and quantity of the WorksLump Sum Contract

Contract SumContract Sum not to be adjusted or alteredMaterials And GoodsMaterials and goods not to be removedMaterials and goods included in certificatesResponsibility for materials and goodsWarranty of title of goods and materialsPractical Completion And Defects LiabilityPractical CompletionCertificate of Practical CompletionContractor's failure to comply with undertakingSchedule of Defects

PAM Contract 2006 (Without Quantities)

Page

II1 1

11II111 1II1 1II1 21 21 21 2

121 21 21 2

121 21 313131 3

131 31 3

13131 3i41414141 4 - 1 51 515151 51 5

1515151 51 51 516161616]617

(ii)


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Table of Contents (Contd)

15.515.616.016.116.216.317.017.117.217.318.018.i13.218.318.419.019.119.219.319.4lQ . .52u.A20AI20.A.220.A.320.A.420.B20.B.l20.B.220.B.320.BA20.B.S20.C20.C.120.C.220.CJ20.C.420.C.S21.021.121.221.321.422.022.122.222.323.023.123.2

Instruction to make good DefectsCertificate of Making Good Defects

1717

Partial Possession By EmployerPossession of Occupied Part with consentPossession of Occupied Part without consentContractor to remove equipment

1717-181818

Assignment And Sub-ContractingAssignment by EmployerAssignment by ContractorNo sub-contracting

18181818

Injury To Person Or Loss And/Or Damage Of Property And Indemnity To EmployerContractor's indemnity against injury or deathContractor's indemnity against loss andior damageContactor's indemnity against claims by workmenIndemnities not to be defeated

1813131319

Insurance Against Injury To Person And Loss And/Or Damage Of PropertyContractor to insure against injury to Person and loss and/or damage of propertyEmployee's social security scheme for local workmenInsurance for local workmen not subject to SOCSOWorkmen's compensation insurance for foreign workersPlacing of insurance with licensed insurance companies

191919192020

Insurance Of New BuildingslWorks - By The ContractorContractor'S risks- new buildings/worksAdditional risks to be covered under the insurancePlacing of insurance with licensed insurance companiesApplication of insurance claim proceeds

2020202021

Insurance Of New BuildingslWorks - By The EmployerInsurance by EmployerAdditional risks required by the ContractorMaintenance of policyFailure of Employer to insureApplication of insurance claim proceeds

212121212122

Insurance Of Existing Building Or Extension - By The EmployerEmployer's risks - existing building or extensionAdditional risks required by the ContractorMaintenance of insurance by EmployerFailure of Employer to insureApplication of insurance claim proceeds

222222222223

Date Of Commencement, Postponement And Date For CompletionCommencement and CompletionSectional Commencement DatesSectional Completion DatesPostponement or suspension of the Works

2323232323

Damages For Non-CompletionLiquidated Damages and Certificate of Non-CompletionAgreed Liquidated Damages amountCertificate of Non-Completion revoked by subsequent Certificate of Extension of Time

23232324

Extension Of TimeSubmission of notice and particulars for extension of timeDelay by Nominated Sub-Contractor

242424

P AM Contract 2006 (Without Quantities)


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Table of Contents (Cont d)

23.323,423,523,623,723,823,923,[024.024,I24,224,324.425.025, I25,225.325.425,525.625.725.826.026,126,226.326.426.526.626.727.!l27.127,227.327.427.527.627.727.827.927-.1027.1127.1227.1327.1428.028.128.228.328.428.528.628.728.8

Insufficient informationCertificate of Extension of TimeOther consideration forgiving extension of timeContractor to prevent delayNotification to Nominated Sub-ContractorsRelevant EventsExtension of time after the issuance of Certificate of Non-CompletionArchitect's review of extension of time after Practical CompletionLoss And/Or Expense Caused By Matters Affecting The Regular Progress Of The WorksLoss andlor expense caused by matters affecting the regular progress of the WorksAccess to Contractor's books and documentsMatters materially affecting the regular progress of the WorksLoss andlor expense to be included in certificateDetermination Of Coutractor's Employment By EmployerDefaults by ContractorProcedure for determinationContractor's insolvencyRights and duties of Employer and ContractorRecords of ,.'.'arksFinal Account upon determinationRemedy limited to damages onlyEmployer's rights and remedies net prejudicedDetermiuation Of Own Employment By ContractorDefaults by EmployerProcedure for determinationEmployer's insolvencyRights and duties of Contractor and EmployerRecords of WorksSettlement of accountsContractor's rights and remedies not prejudicedNominated Sub-ContractorsP.C. Sums and Provisional Sums - Nominated Sub-ContractorsNomination of sub-contractorObjection to nomination of sub-contractorAction follcwing objection of Nominated Sub-ContractorPayment by Contractor to Nominated Sub-ContractorsFailure of Contractor to pay Nominated Sub-ContractorsFinal payment to Nominated Sub-ContractorsDetermination of the Nominated Sub-Contractor's employmentContractor's responsibility for Nominated Sub-ContractorsEmployer no privity of Contract with Nominated Sub-ContractorsRe-nomination of sub-contractor due to determination by the ContractorRe-nominationof sub-contractor due to determination by the Nominated Sub-ContractorContractor to recover additional expenses from Nominated Sub-ContractorContractor permitted to tender for P.C. SumsNominated SuppliersP.e. Sums and Provisional Sums - Nominated SuppliersNominated Suppliers and their obligationsObjection to nomination of suppliersAction following objection of suppliersValue of materials and goods supplied by Nominated Supp liersPayment to Nominated SuppliersContractor's liability for Nominated SuppliersEmployer no privity of Contract with Nominated Suppliers


Page

242424242425-2626262626-272727-2828 .2828282823-2929293030

30303131313131

323232-33333333333334343434343434

343434-35353535353636

(iv)


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Table of Contents (Cont'd)

ClauseThe Conditions Of Contract (Cont'd) Page

29.029.130.030.130.230.330.430.530.630.730.830.930.1030.1 I30.1230.1330.1430.1530.1630.1731.031.131.231.331.432.0~2.1.JL.L-

33.033.134.034.134.234.334.434.534.634.734.834.934.1034.U35.035.135.236.036.136.236.336.4

Works By Craftsmen, Tradesmen Or Other Contractors Employed Or Engaged By Employer 36Works by Employer's craftsmen 36Certificates And PaymentPayment application and issue of Architect 's certificateAmount due in Architect 's certificateErrors in payment certificateSet-off by EmployerRetention FundRules regarding Retention FundSuspension of Works for non-paymentCompulsory suspension of WorksCessation insurance resulting from suspension of the WorksFinal AccountItems in Final AccountConclusiveness of the Final AccountIssuance of Penultimate CertificateIssue of Final Certificatefinal CertificateFinal Certificate not conclusiveInterest

3636363636-3737373737373838393939393939

Outbreak Of HostilitiesHostilities - determination by Employer or ContractorNotices of determinationAI regarding protective workPayment resulting from determination

3939394040

War DamageProcedures following war d.amageDefinition of war damage

404040

AntiquitiesAntiquities property of Employer 4040Adjudication And ArbitrationSet-off disputes referred to adjudication.Notice to refer to adjudicationAdjudication RulesDecision of the adjudicatorDisputes referred to arbitrationProcedures for appointment of arbitratorArbitration Act and RulesPowers of arbitratorConsolidation of arbitration proceedingsCommencement of arbitration proceedingArbitrator 's award to be final and binding on parties

404041414141414141-42424242

MediationMediation under PAM rulesMediation does not prejudice the parties' rights to arbitration

424242

NoticeNoticeNotice deem servedProof of NoticeWritten comm unication

4242-43434343

PAM Contract 2006 (Without Quantities) (v)


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Table of Contents (Cont'd)


Page

37.037.137.237.337.437.537.638.038.1

Performance BondSubmission of Performance BondForm of the Performance BondValidity of the Performance BondFailure to extend the validityPayments from the Performance BondReturn of Performance Bond

4 3- 1 - 343434 : : ;4343

Governing LawGoverning Law 4343Appendix

PAM Contract 2006 (Without Quantities) (vi)


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PAM COl'll 'R-\CT 2006 (WITHOUT Q"CAc"iTlTIES)

Articles Of AgreementThis Agreement is made on the day of 20 .between .of (or whose registered office or business address is situated at) .

................. .. (hereinafter called 'the Employer')and .of (or whose registered office or business address is situated at) .

.................... (hereinafter called 'the Contractor I.

Whereas

The Employer is desirous of (~).......... .. . . .. . .. . .. . , .

.~ ~ ; - - .(hereinafter called 'the Works') at .

and ha s caused drawings and Contract Bills showing and describing the work to be done to be prepared by his Architect andConsultant.

And Whereas the Contractor has supplied the Employer with a fully priced copy of the said Contract Bills.

And Whereas the said drawings numbered , .

inclusive (hereinafter referred to as 'the Contract Drawings') and the Contract Bills have been signed by or on behalf of the partieshereto.

(*) Brief description of the Works.



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Now it is hereby agreed as follows:

Article 1

For the consideration hereinafter mentioned the Contractor will upon and subject to theContract carry out and complete the Works shown upon and described by or referred to inthe Contract.

Article 2

The Employer will pay the Contractor the sum of Ringgit Malaysia: .

(RM ) (hereinafter referred to as 'the Contract Sum ') or suchother sum as shall become payable hereunder at the times and in the manner specified in theContract.

Article 3

The term 'the Architect' in the Contract shall mean .

of .

or i" the event of such Person ceasing to be the ,A.rchitect fer the purpose of the Contract,such other Person as the Employer shall appoint within twenty eight(28) Days therefrom.No Architect so appointed shall be entitled to disregard or overrule any certificate oropinion or decision or approval or instruction given by the preceding Architect.

Article 4

The term 'the Engineer' in the Contract shall mean:

(a) Structural &.Civil Engineer: ,...........................................................................

of.. .

(b) Mechanical & Electrical Engineer: .

of ..


Contractor'sObligations

Contract Sum

Architect

Engineer

2


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or in the event of such Person ceasing to be the Engineer for the purpose of the Contract,such other Person as the Employer shaJ.lappoint within twenty eight (28) Days therefrom.The Engineer shall perform the duties expected of his profession, and the Architect mayfrom time to time delegate such duties and authority of the Architect to the Engineer as theArchitect deems fit.

Article 5

The term 'the Quantity Surveyor' in the Contract shall mean .

of _ .

or in the event of such Person ceasing to be the Quantity Surveyor for the purpose of theContract, such other Person as the Employer shall appoint within twenty eight (28) Daystherefrom. The Quantity Surveyor shall perform the duties expected of his profession, andthe Architect may from time to time delegate such duties and authority of the Architect tothe Quantity Surveyor as the Architect deems fit.

Article 6

The term 'the Specialist Consultant' in the Contract shall mean:

(a) .of .

(b) .of ............................ ................................. .................................... ...............................

(c) .of .

...................................... :. u .

or in the event of such Person ceasing to be the Specialist Consultant for the purpose of theContract, such other Person as the Employer shall appoint within twenty eight (28) Daystherefrom. The Specialist Consultant shall perform the duties expected of his profession,and the Architect may from time to time delegate such duties and authority of the Architectto the Specialist Consultant as the Architect deems fit,

PAM Co nt ra ct 2 0 06 (W it ho ut Q u an ti ti es )

QuantitySurveyor

SpecialistConsultant

3


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Article -;

In [he Contract Documents as hereafter defined, the following words and expressions shallhave the meanings hereby assigned to them, except where the context otherwise requires:

(a) Appendix means the Appendix to the Conditions of the Contract;(b) Appropriate Authority means any statutory authority having jurisdiction over the

\Vorks; ,(c) Architect means the Person named in Article 3 and shall be a Professional

Architect or any other form of practice registered under the Architects Act 1967and approved by the Board of Architects, Malaysia;

(d) Architect's Instruction or AI - as described in Clause 2.2;(e) As-built Drawings means as-built drawings for works designed (including

alternative design) by the Contractor and/or Nominated Sub-Contractor and anyother as-built drawings required to be provided as specified in the ContractDocuments;

(f) . Certificate of Extension of Time means the certificate issued under Clause 23.4;

(g) Certificate of Making Good Defects means the certificate issued under Clause15.6;(h) Certificate of Non-Completion means the certificate issued under Clause 22.1;(i) Certificate of Partial Completion means the certificate issued under Clause [6.};(j) Certificate of Practical Completion means the certificate issued under Clause

15.2;(k) Certificate of Sectional Completion means me certificate issued under Clause

21.3.;(1) Cause means the clauses in the Conditions of the Contract;(m) Completion Date means the date(s) for completion of the Works stated in the

Appendix under Clauses 21.1 and 21.3 or the last extended date granted underClause 23.4;

(n)Conditions means the Conditions of the Contract;(0) Confirmation of Architect's Instruction or CAI-as described in Clause 2.2;(P) Consultant means the Engineer, Quantity Surveyor and/or Specialist Consultant

as appropriate;(q) Contract or Contract Documents comprise the following documents:

(i) the Letter of Award;(ii) the Articles of Agreement;(iii) the Conditions of Contract;(iv) the Contract Drawings;(v) the Contract Bills; and(vi) other documents incorporated in the Contract Documents, unless expressly

stated to be excluded therefrom;(r) Contract Bills comprise the following documents (as may be applicable):

(i) Instructions to Tenderers;(ii) Conditions of Tendering;(iii) Form of Tender;(iv) Preliminaries;(v) Preambles and Specification;(vi) Summary ofthe Tender (or Contract Sum);(vi) Schedule of Rates; and(vii) any other documents specifically mentioned in any of the above documents;


Definitions

4


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(5) Contract Sum means the sum stated in Article 2;(r) Contractor means the party named in the Anicles of Agreement and includes the

Contractor's legal successors or personal representatives or any Person to whomthe rights and obligations of the Contractor have been transferred with theagreement of the Employer;

(u) Contractor's All Risks Insurance (,CAR Insurance') means an insurance policywhich provides cover against any physical loss or damage to work executed andmaterials and goods under a standard CAR Insurance policy, The minimuminsurance risks are specified under Clauses 19.0, 20.A or 20.B or 20.C, and theinsurance shall have the appropriate endorsements. Any additional insurance risksin addition to those stated in these Conditions that are required to be covered underthe CAR Insurance shall be stated in the Contract Bills;

(v) Date of Commencement means the date(s) fixed and stated in the Appendixunder Clauses 21.1 and 21.2;

(w) Day means calendar day including the weekly day of rest but excluding gazettedholidays in the location where the Works is carried out;

(x) Defects means defects, shrinkages or other faults due to materials or workmanshipnot in accordance with the Contract and Nominated Sub-Contract and/or due toany faulty design (if any) undertaken by the Contractor and Nominated Sub-Contractor;

(y) Defects Liability Period means the period stated in the Appendix under Clause15.4;

(z) Employer means the party named in the Articles of Agreement and includes theEmployer 's legal successors or personal representatives or any Person to whomthe rights and obligations of the Employer have been transferred with theagreement of the Contractor;

(aa) Engineer means the Person named in Article 4 and shall be a ProfessionalEngineer or any other form of practice registered under the Registration ofEngineers Act 1967 and approved by the Board of Engineers, Malaysia;

(ab) Final Account means the documents showing the adjustment of the Contract Sumissued under Clause 30.10;

(ac) Final Certificate means the final certificate issued by the Architect under Clauses30.14 and 30.15;

(ad) Force Majeure means any circumstances beyond the control of the Contractorcaused by terrorist acts, governmental or regulatory action, epidemics and naturaldisasters;

(ae) Interim Certificates means the progress payment certificate issued by theArchitect under Clause 30.1;

(at) Letter of Award means the letter of acceptance of the Contractor's tender issuedby or on behalf of the Employer;

(ag) Limit of Retention Fund means the amount as stated in the Appendix underClause 30.5;

(ah) Lump Sum Contract means a fixed price Contract and is not subject to re-measurement or recalculation except for Provisional Quantities and Variationswhich shall be valued under Clause I 1.0;

(ai) Month means calendar month;(aj) Nominated Sub-Contract means the contract entered into between the Main

Contractor and the Nominated Sub--Contractor pursuant to a nomination by theArchitect under Clause 27.2;

PAM Contract 2006 (Without Quantities) 5


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(aki

(al)

(am)

(an)

(ao)

(ap)

Nominated Sub-ContDctor means a sub-contractor nominated by the Architectunder Clause 27.1;Nominated Supplier means a supplier nominated by the Architect under Clause23.1;P.:.:v1 Sub-Contract 2006 means the form of contract as published by PertubuhanAkitek Malaysia where the sub-contractor is nominated under the PAM Contract2006;Penultimate Certificate means the payment certificate issued by the Architect forthe release of monies c o Nominated Sub-Contractors and/or Nominated Suppliersunder Clause 30.13;Performance Bond means the bond required to be provided by the Contractor asa security for the due performance of the contract under Clause 37.1;Period of Honouring Certificates means the period for honouring certificatesstated in the Appendix under Clause 30.1;

(aq) Person means an individual, sole proprietorship, firm (partnership) or bodycorporate;

(ar) Practical Completion or Practically Completed means the state of completiondescribed in Clause 1 5 . 1 ;

(as) Prime Cost Sums ('P.c. Sums') means the sums provided in the contract forworks or services to be executed by Nominated Sub-Contractor or for materialsand goods LO be supplied by Nominated Supplier;

(at) Provisional or Provisional Quantity means the estimated quantities of workprovided in the Contract Bills for work to be executed or for the supply of anymaterials and goods which cannot he determined or detailed at the time;

(au) Provisional Sums means the sums provided in the contract and/or the NominatedSub-Contract for work to be executed or for the supply of any materials and goodswhich cannot be foreseen, determined or detailed at the time;

(av) Quantity Surveyor means the Person named in Article 5 and shall be aRegistered Quantity Surveyor or any other form of practice registered under theQuantity Surveyors Act 1967 and approved by the Board of Quantity Surveyors,Malaysia; . .

(aw) Relevant Event means anyone of the events for extension of time set out inClause 23.8;

(ax) Retention Fund means the sum retained in accordance with Clause 30.5;(ay) Schedule of Rates means any documents however entitled or described and which

is intended to be used for the purpose of valuing Variations;(az) Service Provider means any company or body authorised to provide water,

electricity, telephone, sewerage and other related services;(ba) Site means the land and other places on, in, under, over or through which the

Works are to be executed and is provided by the Employer for the purposes of theContract including other land and places obtained by the Contractor and acceptedby the Employer as forming part of the Site;

(bb) Site Agent means the person appointed under Clause 8.1;(be) Site Staff means the person appointed under Clause 10.1;(bd) Specialist Consultant means the Person named in Article 6 and such Person shall

be a Specialist Consultant appointed by the Employer for a designated scope ofprofessional work;



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, : : : . . .

(be) Variation means changes made to the Works as defined under Clause 11.1;(bf) Week means a period of seven (7) consecutive days;(bg) Works means the works described in the Articles of Agreement and referred to in

the Contract Documents and includes any changes made to these works inaccordance with the Contract; and

(bh) Works Programme means the works programme described in the ContractDocuments and in Clause 3.5.

Article 8In the interpretation of the Contract, unless the context requires otherwise, the followingshall apply:(a) Gender - words of one gender include the other gender, and words denoting natural

persons include corporations and firms and all such words are to be construedinterchangeably in that manner;

(b) Headings and Marginal Notes - the headings and marginal notes in the Conditionsare not to be taken into consideration in the interpretation or consrruction of theConditions or oi the Contract;

(CI Reference :u legislation - a reference to any Acts IS deemed to include referencesto any subsequent amendments, consolidation or replacement of the Acts;

(u) Singular and Plural - words importi..ig the sing-ular a\50 include the plural and viceversa where the context requires; and

(e) Where any word or phrase is given a defined meaning, any other grammatical formof that word or phrase has a corresponding meaning .

PA M Contract 2906 (WithoutQuantities)

Meanings

7


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INWITNESS WHEREOF* The hand of the Employer has been hereunto set the day and yearfirst above written in the presence of:

Signature of Witness .

Name .

NRIC No .

* The Common Seal of .was hereunto affixed in the presence of:

Signature of Director. , .

Nam e .

NRlCNc .

L.~WITNESS \VHEREOF

* The hand of the Contractor has been hereunto set tl.e day and yearfirst above written in the presence of:

Signature of Witness .

Name , ..

NRIC No .

* The Common Seal of .was hereunto affixed in the presence of:

Signature of Director. .

Name .

NRICNo ..

) Signature of Employer ..\ ,.) l~ame .

) NRIC No ..

Signature of Director/Secretary" .

Name .

NRICNo ..

) Signature of Contractor .

) Name ..

)NRlCNo , ..

Signature of Director/Secretary" ..

Name ..

NRIC No ..

Delete as appropriateThe affixing of the Common Seal to be witnessed in accordance with the Memorandum & Articles of Association of the Company.



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1.0Completion ofWorks inaccordance withContractDocuments

1.1

Temporary workand constructionmethod

1. 2

Contractor'sdesign andresponsibilities

Discrepancy ordivergencebetweendocuments

1. 4

2.0Contractor to .comply with Al

") ._.1

Al 2.2

Provisions 2.3empoweringinstructions

.

Failure of 2.4Contractor tocomply with Al

3.0ContractDocuments

3.1

_ - ~-PA . t ' v f Contract 2006 (Without Quantities)

The Conditions Of ContractContractor's ObligationsThe Contractor shall upon and subject to these Conditions carry out and complete theWorks in accordance with the Contract Documents and in compliance therewith providematerials, goods and standards of workmanship of the quality and standard described in theContract Documents and/or required by the Architect in accordance with the provisions ofthe Contract.Unless designed by the Architect or Consultant, the Contractor shall be fully responsible forthe adequacy, stability and safety of all temporary works and of all methods of constructionof the Works, irrespective of any approval by the Architect or Consultant.If the Contractor proposes any alternative design to that specified in the Works or if theContract leaves any matter of design, specification or choice of materials, goods andworkmanship to the Contractor, the Contractor shall ensure that such works are fit for itspurpose. The copyright of the Contractor's design and alternative design belongs to theContractor, but the Employer shall be entitled to use the design and alternative design forthe completion, maintenance, repair and future extension of the Works. The acceptance bythe Architect or Consultant of the Contractor's design and alternative design shall notrelieve the Contractor of his responsibilities under the Contract.The Contractor shall use the Contract Documents and any other subsequent documentsissued by the Architect to plan the Works prior to execution. If during the said planning andsubsequent execution of the Works, the Contractor finds a.ry discrepancy in or divergencebetween any of the Contract Documents and any subsequent documents issued by theArchitect, he shall give to the Architect a written notice in sufficient time before thecommencement of constrllction of the affected works, specifying the discrepancy ordivergence to enable the Architect to Issue written instructions within a period which wouldnot materially delay the progress of the affected works, having regard. to the CompletionDate, Such discrepancy or divergence shall not vitiate the Contract.Architect's Jnstructions ('AI')The Contractor shall subject to Clauses 2.2 and 2.3 forthwith comply with all irL5tructionsissued to him by the Architect in regard to any matter in respect of which the Architect isexpressly empowered by these Conditions to issue instructions.All instructions issued by the Architect shall be in writing expressly entitled "Architect'sInstruction" ('AI'). All other forms of written instructions including drawings issued by theArchitect shall be an AI:2.2(a) upon written confirmation from the Contractor entitled "Confirmation of

Architect's Instruction" ('CAl'); or2.2(b) upon subsequent confirmation of the written instructions by the Architect with

anALUpon receipt of a written instruction from the Architect, the Contractor may request theArchitect to specify in writing which provision of these Conditions empowers the issuanceof the said instruction and the Architect shall forthwith comply with such a request. If theContractor thereafter complies with the said instruction without invoking any disputeresolution procedure under the Contract to establish the Architect's power in that regard,the instruction shall be deemed to have been duly given under the specified provision.If the time of compliance [which shan not be less than seven (7) Days from receipt of theAI] is stated by the Architect in the AI and the Contractor does not comply therewith thenthe Employer may, without prejudice to any other rights and remedies which he maypossess under the Contract, employ and pay other Person to execute any work which maybe necessary to give effect to such instruction. The cost of employing other Person and anyadditional cost in this connection shall be set-off by the Employer under Clause 30.4.Contract Documents, Programme And As-built DrawingsThe Contract Documents are to be read as mutually explanatory of one another. In the eventof any conflict or inconsistencies between any of the Contract Document, the priority in theinterpretation of such documents shall be in the following descending order:

9


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Custody oftenderdocumentsCopies ofdocuments

Furtherdrawings ordetails

WorksProgramme

Programme notpart of ContractArchitect'sacceptance ofprogramme

Availability ofdocuments

Limitation of useof documents

As-builtDrawings andoperation andmaintenancemanuals

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3. 9

3.10

PAM Contract2006 (Without Quantities)

the Letter of Award;3.1(b) the Articles of Agreement;3.ic) the Conditions of Contract;3.1(d) the Contract Drawings;3. 1 (e) the Contract Bills; and3.1 (f) other documents incorporated in the Contract Documents, unless expressly

stated to be excluded in any of the Contract Document.The original tender documents shall remain in the custody of the Architect so as to beavailable at all reasonable times for inspection by the Employer and Contractor.

Immediately after the execution of the Contract, the Architect shall without charge to theContractor provide him with:3.3(a) one of the two signed original copies of the Contract Documents;3.3(b) two (2) further copies of the Contract Drawings; and3.3(cl two (2) copies of the unpriced Contract Bills.When necessary, the Architect shall without charge to the Contractor furnish him with two(2) copies of further drawings, details, levels and any other information as are reasonablynecessary either to explain and amplify the Contract Drawings or to enable the Contractorto complete the Works in accordance with these Conditions. If the Contractor requires anyfurther drawings, details, levels and any other information. he shall specifically apply inwriting to the Architect for these items in sufficient time before the commencement ofconstruction of the affected works to enable the Architect to issue instructions within aperiod which would not materially delay the progress of the>affected works having regardto tn e Completion Date.Within twenty one (21) Days from receipt of the Letter of Award (or within such longerper iod as may be agreed in writing by the Architect), the Contractor shall provide to theArchitect for his information, six (6) copies or the Works Programme (unless a highernumber is stated in the Contract Documents) showing the order in which he proposes tocarry out the Works. The Works Programme shall comply with any requirements specifiedin the Contract Documents. If the Works or any part of the Works is delayed for whateverreason, the Architect may instruct the Contractor to revise the Works Programme. TheContractor without charge to the Employer, shall provide the Architect from time to timewith similar number of copies of any revised Works Programme ..The Works Programme shall not constitute part of the Contract, whether physicallyincorporated or not into the Contract Documents.The acceptance by the Architect of the Works Programme shall not relieve the Contractorof his obligations, duties or responsibilities under the Contract. The Works Programme maybe used by the Architect to monitor progress and the Architect is entitled to rely on theWorks Programme as a basis for the assessment of extension of time and the effect of thedelay and/or disturbances to the progress of the Works.The Contractor shall keep a copy of the Contract Drawings and the unpriced Contract Billson the Site to be available to the Architect and Consultant and their authorisedrepresentatives at all reasonable times.None of the Contract Documents in Clause 3.1 shall be used by the Contractor for anypurpose other than the Contract. Except for the purpose of the Contract, the parties shall notdisclose any of the rates and prices in the Contract Bills to any other party.The Contractor shall supply and shall cause any Nominated Sub-Contractor to supply As-built Drawings and/or operation and maintenance manuals specified in the ContractDocuments and/or Nominated Sub-Contract documents in the manner and within the limespecified therein. Where these are not specified, the Contractor shall supply and shallensure that the Nominated Sub-Contractor supplies four (4) copies of the above itemsbefore the Completion Date. .

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Statutoryrequirements

Inconsistencieswith statutoryrequirements

Conforming tostatutoryobligations

Fees, levies andcharges

Setting out

Standards ofworks, materials,goods andworkmanshipProvision ofvouchersInspection andtesting

Contractor'sobligation notrelieved

4. 04. 1

4.3

4.4

5.0s. :

6.0

6. 1

6.2

6.3

6. 4


Statutory Obligations, Notices, Fees And ChargesThe Contractor shall comply with and submit all notices required by any laws, regulations,by-laws, terms and conditions of any Appropriate Authority and Service Provider in respectof the execution of the Works and all temporary works.If the Contractor finds any inconsistencies between the Contract Documents (including anysubsequent documents issued by the Architect) and any laws, regulations, by-laws, termsand conditions of any Appropriate Authority and Service Provider, he shall immediatelyspecify the inconsistencies and give to the Architect a written notice before commencementof construction of the affected works.lfwithin seven (7) Days of having given written notice to the Architect, the Contractor doesnot receive any AI in regard to the matters specified in Clause 4.2, he shall proceed with thework to conform to such laws, regulations, by- laws, terms and conditions of anyAppropriate Authority and Service Provider. Any changes so necessitated shall be deemedto be a Variation required by the Architect.The Contractor shall pay and indemnify the Employer against any liability in respect of anyfees, levies and charges including any penalties which may arise from the Contractor's non-compliance with any laws, regulations, by- laws, terms and conditions of any AppropriateAuthority and Service Provider in respect of the execution of the Works and 1 1 1 temporaryworks. If the Contractor fails to pay, the Employer may pay such amount and such amounttogether with any additional cost in this connection shall be set-off by the Emp loyer underClause 3S'.'tLevels And Setting Out Of The WorksThe Architect shall determine all levels which may be required for the execution of theWorks and shall provide the Contractor with drawings and information to enable theContractor to set out the Works. The' Contractor shall at his own cost rectify any errorswising from any inaccurate setting out With the consent of the Employer, the Architectmay instruct that such errors Geed not he rectified subject to an appropriate deduction to beset-off by the Employer under Clause 30.4.Materials, Goods And Workmanship To Conform To Description, Testing AndInspectionAll works, materials, goods and workmanship shall be of the respective quality andstandards described in the Contract Documents and required by the Architect in accordancewith the provisions of the Contract.

The Contractor shall upon the request of the Architect, provide him with vouchers or suchother evidence to prove that the materials and goods comply with Clause 6.1.The Contractor .shall provide samples of materials and goods for testing beforeincorporation into the Works. The Architect may issue an AI requiring the Contractor toopen up for inspection any work covered up, or to arrange for or carry out any test on anymaterials and goods already incorporated in the Works or of any .executed work. The costof such opening up or testing together with the cost of making good shall be added to theContract Sum unless:6.3(a) the cost is provided for in the Contract Bills;6.3(b) the inspection or test shows that the works, materials and goods were not in

accordance with the Contract; or6.3(c) the inspection or test was in the opirnon of the Architect required in

consequence of some prior negligence, omission, default and/or breach ofcontract by the Contractor.

The provisions of Clauses 6.2 and 6.3 shall not relieve the Contractor of his obligations toexecute the work and supply materials and goods in accordance with the Contract.

11


20/53

Work not inaccordance withthe Contract

No compensationfor time and cost

Failure o fContractor lucomply

Warranties inrespect ofmaterials andgoods

Indemnity toEmployer

Contractor'sliability to pay

Governmentroyalties

Site Agent

6.5

6.6

6.7

6.8

7. 07.1

7.2

7.3

8.08.1

If the Architect finds any work, materials, goods or workmanship which is not inaccordance with the Contract, the Architect shall instruct the Contractor in writing:6.5(a) to remove from and not to bring to the Site such materials and goods;6.5(b) to demolish and reconstruct such work to comply with the Contract;6.5(c) to rectify such work as instructed by the Architect with no adjustment to the

Contract Sum;6.5(d) to submit a method statement within seven (7) Days from receipt of the written

instruction (or within such period as may be specified by the Architect in theinstruction) proposing how such works, materials, goods or workmanship canbe rectified. If the Architect accepts the Contractor's proposal, the Contractorshall carry out the rectification work with no adjustment to the Contract Sumor alternatively, the Architect may reject the proposal and issue any otherwritten instruction under this clause; or

6.5(e) with the consent of the Employer, to leave all or any such works, materials,goods or workmanship in the Works subject to an appropriate set-off by theEmployer under Clause 30.4 and the Contractor shaii remain liable for thesame.

Compliance by the Contractor with a written instruction issued under Clause 6.5 shall notentitle the Contractor to an extension oftime nor compensation for any loss and/or expensethat may be incurred.Ifthe Contractor fails or refuses to comply with a written instruction of the Architect issuedunder Ciause 6.5, the Employer may without prejudice to any other rights or remedieswhich he may possess under ti.e Contract, employ and pay other Person to carry out thesubject matter of the written instruction, Ali costs incurred including any loss and expenseshall be set-off by the Employer under Clause 30A.If the Contract requires any manufacturer, sub-contractor or supplier to give a warranty O~guarantee in respect of any proprieta r ): systems, materials and goods supplied, theContractor shail procure such warranties or guarantees and submit to -the Employer. Theprovision of such warranties or guarantees shall in no way relieve or release the Contractorfrom any liabilities under the Contract.Royalties And Intellectual Property RightsSubject to Clause 7.2, all royalties or other sums payable In respect of the supply and use incarrying out the Works of any articles, processes, inventions or drawings shall be deemedto have been included in the Contract Slim. The Contractor shall indemnify the Employeragainst all claims, proceedings, damages, costs and expenses which may be brought againstthe Employer or to which he may be subjected to by reason of the Contractor infringing orbeing held to have infringed any such intellectual property rights.Where in compliance with a written instruction, the Contractor has informed the Architectin writing that there may be an infringement of intellectual property rights. but the Architectstill instructs the Contractor in writing to comply, the Contractor shall not be liable for anysuch infringement. All royalties, damages or other monies which the Contractor may beliable to pay for such infringement shall be added to the Contract Sum.Except where otherwise provided for in the Contract, the Contractor shall pay allGovernment royalties, levies, rent and ail other payments in connection with the Works.Site AgentThe Contractor shall appoint a competent person to be the Site Agent. The Site Agent forthe purposes of the Contract shall be deemed to be the Contractor's authorised siterepresentative. The Site Agent shall be assisted by such assistants and supervisory staff asnecessary to execute the Works efficiently and satisfactorily. The Site Agent shall beemployed full time on Site and in the event that he has to be temporarily absent from theSite, the Contractor shall designate a deputy in his place.


21/53

Instructions toSite Agent

Exclusion ofPerson employedon the Works

Access to theWorks

Duty 01Site Staff

Directions givenby Site Staff

Definition ofVariation

No Variationsrequired byArchitect shallvitiate Contract

8. 2

3. 3

9.09.1

The Contractor shan ensure that the Site Agent and such assistants and supervisory staff arecapable of receiving directions or instructions in English or Bahasa Malaysia. The SiteAgent shall be deemed to be authorised by the Contractor to receive any directions given bythe Site Staff or instructions given by the Architect and any such directions and instructionsgiven shall be deemed to have been given to the Contractor.The Architect may instruct the Contractor to remove the Site Agent or any Person under theemployment or control of the Contractor from the Site, The Architect shall not exercise thisdiscretion unreasonably or vexatiously. On receipt of a written instruction, th e Contractorshall immediately remove and replace such staff or any Person within a reasonable time andsuch staff or Person so removed, shall not again be employed on the Site. The Contractorshall not be entitled to any extension of time and additional cost in respect of anyinstruction given by the Architect under this clause,Access To The WorksThe Architect, Consultant and their authorised representatives shall at all times havereasonable access to the Works and to the factories, workshops or other places where anyconstruction plant, materials, goods and work are being fabricated, prepared or stored forthe Contract. The Contractor shall ensure that all sub-contracts contain provisions entitlingthe Architect, Consultant and their authorised representatives to have such access.

10.110.0 Site Staff

10.2

The Employer may l::om time to time appoint such number of Site Staff a' the Employershall deem necessary. The Site Stan shall act as inspector, under the direction of theArchitect and t:le Contractor shall provide reaso ..able facilities for the performance of suchduties.Any directions given to the Contractor or his Site Agent by the Site Staff shall be of noeffect, unless given in writing in regard to a matter in respect of which the Site Staff havebeen expressly authorised in writing by the Architect. All such directions involving aVariation shall be of no etfect, unless confirmed by an AI.

IL

11.0 Variations, Provisional And Prime Cost Sums

11.2


The term "Variation" means the alteration or modification of the design, quality or quantityof the Works including: .11.1(a) the addition, omission or substitution of any work;11.1(b) the alteration of the kind or standard of any materials and goods to be used in

the Works;11.1(c) the removal from the Site of any work executed or materials and goods

brought thereon by the Contractor for the purposes of the Works other thanwork, materials and goods which are not in accordance with the Contract; and

11.1(d) any changes to the provisions in the Contract with regards to:11.1 (d)(i) any limitation of working hours;11.1 (d)(ii) working space;11.1(d)(iii) access to or utilisation of any specific part of the Site; and11.1(dXiv) the execution and completion of the work in any specific order,

but shall exclude any changes intended to rectify any negligence, omission, default and/orbreach of contract by the Contractor and such changes shall be executed by the Contractorentirely at his own cost.The Architect may issue an AI ordering a Variation or sanctioning any Variation made bythe Contractor. No Variation ordered by the Architect or subsequently sanctioned by himshall vitiate the Contract. Pending the valuation of the Variations, the Contractor shall carryout with due diligence and expedition all Variations so instructed.

\3


22/53

Issue ofVariations afterPracticalCompletionAI on PvC, Sumsand ProvisionalSumsValuation ofVariations andProvisional Sums

Valuation rules

Additionalexpense causedby Variation

.. ::l

\ 1 .3

1lA

11.5

11.6

11.7

PAi\-{ Co ntract 2006 (Without Quantities)

The Architect may issue instructions in writing requiring a Variation at any time before theissuance of the Certificate of Practical Completion. Thereafter. any AI requiring a Variationmust be necessitated by obligations or compliance with the requirements of anyAppropriate Authority and Service Provider.The Architect shall issue AI in regard to the expenditure of P.c. Sums and ProvisionalSums included in the Contract Bills and ofP.C. Sums which arise as a result of instructionsissued in regard to the expenditure of Provisional Sums.All Variations shall be measured and valued by the Architect. Where any recording of siteinformation and/or site measurements are carried out at the Site, the Contractor shallprovide the Architect with such assistance as may be necessary to carry out the works andthe Contractor shall be given the opportunity to be present to take such notes andmeasurements as he may require.The valuation of Variations and work executed by the Contractor for which a ProvisionalQuantity is included in the Contract and the expenditure of Provisional Sums (other than forwork for which a tender had been accepted under Clause 2- ; .14) shall be made inaccordance with the following rules:11.6(a) where work is of a similar character to, is executed under similar conditions as,

and does not significantly change the quantity of work as set out in theContract Documents, the rates and prices in the Schedule of Rates shalldetermine the valuation;

11.6(b) where work is of a similar character to work as set v u e in the ContractDocuments bu t is not executed under similar conditions or is executed undersimilar conditions but there is a significant change in the quantity of workcarried out, the rates. and prices in th- Schedule of Rates shall be the basis fordetermining the valuation which sl.ail include a fair adjustment in the fates totake into account such difference;

11.6(c) where work is not of a similar character to work. as set out in the ContractDocuments, the valuation shall be at fair market rates arid prices determined bythe Architect;

11.6(d) where work cannot be properly measured and valued in accordance withClause 11.6(a), (0) or (c), the Contractor shall be allowed:11.6(d)(i) the daywork rates in the Schedule of Rates; or11.6(d)(ii) where there are no such daywork rates in the Schedule of Rates,

at the actual cost to the Contractor of his materials, additionalconstruction plant and scaffolding, transport and labour for thework concerned, plus fifteen (15) percent, which percentageshall include for the use of all tools, standing plant, standingscaffolding, supervision, overheads and profit.

In either case, vouchers specifying the time spent daily upon the work, theworkers' names, materials, additional construction plant, scaffolding andtransport used shall be signed by the Site Agent and verified by the Site Staffand shall be delivered to the Architect at weekly intervals with the finalrecords delivered not later than fourteen (14) Days after the work has beencompleted;

11.6(e) the rates and prices in the Schedule of Rates shall determine the valuation ofitems omitted. If omissions substantially vary the conditions under which anyremaining items of work are carried out, the prices of such remaining itemsshall be valued under Clause 11.6(a), (b) or (c); and

11.6(f) in respect of Provisional Quantity, the quantities stated in the Contract Billsshall be re-rneasured by the Architect based on the actual quantities executed.The rates and prices inthe Schedule of Rates shall determine their valuations.

Where a Variation has caused or is likely to cause the Contractor to incur additionalexpenses for which he would not be paid under any provisions in Clause 11.6, theContractor may make a claim forsuch additional expenses provided always that:

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23/53

Access toContractor'sbooks anddocuments

Variations andaddition lexpenses addedto Contract Sum

Quality annquantity of theWorks

Lump SumContract

Contract Sumnot to beadjusted oraltered

Materials andgoods not to beremovedMaterials andgoods included incertifica tesResponsibility formaterials andgoods

11.8

11 . 9

12.012.1

12.2

I 1 .7 ( a) the Contractor shall give written notice to the Architect of his intention toclaim for such additional excenses together with an initial estimate of hisclaim duly supported with all necessary calculations. Such notice must begiven within twenty eight (2S) Days from the date of the AI or CAl giving riseto his claim. The giving of such written notice shall be a condition precedent toany entitlement to additional expenses that the Contractor may have under theContract; and

PAc\1 Contract 2006 (Without Quantities)

l1.7(b) within twenty eight (28) Days of completing such Variation, the Contractorshall send to the Architect complete particulars of his claim for additionalexpenses together with all necessary calculations to substantiate his claims. Ifthe Contractor fails to submit the required particulars within the stated time (orwithin such longer period as may be agreed in writing by the Architect), itshall be deemed that the Contractor has waived his rights to any suchadditional expenses.

The Contractor shall keep contemporaneous records to substantiate all his claims foradditional expenses under Clause 11.7, and shall submit all particulars to the Architect andConsultant. The Architect and Consultant shall have access to all books, documents,reports, papers or records in the possession, custody or control of the Contractor that arematerial to the claim and the Contractor shall provide free of charge a copy each to theArchitect and Consultant when requested. A ll such documents shall remain available inaccordance with this clause until all claims have been resolved. The Contractor shall use hisbest endeavour to ensure that all such similar documents in the possession, custody orcontrol of sub-contractors and/or suppliers that are material to the claim are similarlyavailable.As soon as the Architect has ascertained the amount of Variations and/or additionalexpenses claimed Ly the Contractor under Clause 11.7. the amount so ascertained "il"li beadded to the Contract Sum. When an lnterimCertiflcate is issued after the date ofascertainment; such amount shall be included in the certificate.Quality And Quantity Of The WorksThe quality and quantity of the work included in the Contract Sum shall be deemed to hethose which are shown upon the Conlidct Drawings and/or set out in the Contract Bills.Unless otherwise expressly stated, the measurements of Variations and ProvisionalQuantities shall be carried out in accordance with the principles of the Standard Method ofMeasurement of Building-Works sanctioned by the Institution of Surveyors Malaysia andcurrently in forceUnless otherwise expressly provided, the contract is a Lump Sum Contract and shall bedeemed to include all ancillary and other works and expenditure, which mayor may nothave been specifically mentioned or described in the Contract Documents, but which areeither indispensably necessary to be carried out to bring the Works to completion or whichmay contingently become necessary to overcome difficulties before completion.

13.113.0 Contract Sum

The Contract Sum shall not be adjusted or altered in any way whatsoever, other than inaccordance with the express provisions of the Contract. Any arithmetical errors or anyerrors in the prices and rates shall be corrected and/or rationalised by the Architect orConsultant without any change to the Contract Sum before the signing of the Contract.

14.114.0 Materials And Goods

14.2

14.3

Materials and goods delivered to the Site for incorporation into the permanent works shallnot be removed until completion of the Works unless prior consent in writing from theArchitect has been obtained, which consent shall not be unreasonably withheJd or delayed.Where the value of such materials and goods has in accordance with Clause 30.2 beenincluded in any Interim Certificate under which the Employer has effected payment, suchmaterials and goods shall become the property of the Employer.The Contractor shall be responsible for any loss and/or damage to such materials and goodsincluding materials and goods supplied by Nominated Sub-Contractors and NominatedSuppliers.

15


24/53

Warranty of titleof goods andmaterials

PracticalCompletion

Certificate ofPracticalCompletion

Contractor'sfailure to complywith undertaking

\4A

15.015.1

\5.2

15.3


The Contractor shall be deemed to have warranted that he has title free from encumbrancestor such materials and goods upon inclusion of [he value of such materials and goods in anyapplications for payments under Clause 30.\. In the ev en t that the Contractor is found tohave made a false warranty, any loss suffered by the Employer shall be made good by theContractor or shall be set-off under Clause 30.4.Practical Completion And Defects Liability

\5.\(a)The Works are Practically Completed when:

15.\ (b)

in the opinion of the Architect, the Employer can have full use of the Worksfor their intended purposes, notwithstanding that there may be works anddefects of a minor nature still to be executed and the Contractor has given tothe Architect a written undertaking to make good and to complete such worksand defects within a reasonable time specified by the Architect; andother requirements expressly stated in the Contract Documents as a pre-requisite for the issuance of the Certificate of Practical Completion have beencomplied with.

When the whole of the Works are Practically Completed, the Contractor shall forthwithgive written notice to that effect to the Architect who shall within fourteen (14) Days doeither one of the foilowing:15.2(a)

15.2(b)

if the Architect is of the opinion that the Works are not Practically Completedunder Clause 15.1, the Architect shall give written notice to the Contractorwith copy extended to the Nominated Sub-Contractors stating the reasons forhis opinion; orif the Architect is of the opinion that the Works are Practically Completedunder Clause 15.1, the Architect shall issue the Certificate cf PracticalCompletion. The date of Practical Completion shall be :15.l(b )(i) the date of receipt of the Contractor's written undertaking to

make good and to complete works and defects of a miner nature,where there are such works and defects; or

15.2(b)(ii) the date of receipt of the Contractor's written notice, where thereare no works and defects of a minor nature.

The Certificate of Practical Completion shall be issued to the Contractor withcopies extended to the Employer and Nominated Sub-Contractors. Upon theissuance of Certificate of Practical Completion by the Architect, the Contractorshall forthwith return Site possession to the Employer.

Where applicable, the Contractor shall comply with his undertaking to attend to the worksand defects ofa minor narure under Clause 15.1(a) within the specified time. In the eventthe Contractor fails to comply with his undertaking, the Employer may without prejudice toany other rights and remedies which he may possess under the Contract do anyone of thefollowing:15.3(a)

15.3(b)

15.3(c)

grant the Contractor additional ex-gratia time to be specified by the Architectto enable the Contractor to comply with his said undertaking;employ and pay other Person to execute any work which may be necessary togive effect to the Contractor's said undertaking. All costs incurred includingany loss and/or expense shall be set-off by the Employer under Clause 30.4; oraccept to leave all or any such works and defects of a minor narure in theWorks subject to an appropriate set-off under Clause 30.4.

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25/53

Schedule ofDefects

Instruction tomake goodDefects

Certificate ofMaking GoodDefects

Possession ofOccupied Partwith consent

15A

15.5

15.6

Any Defects in the Works which appear within the Defects Liability Period shall bespecified by the Architect in 3. schedule of defects which he shall deliver to the Contractorno! later than fourteen (\4) Days after the expiration of the Defects Liability Period. TheContractor shall make good the Defects specified within twenty eight (28) Days afterreceipt of the schedule of defects (or within such longer period as may be agreed in writingby the Architect) at the Contractor's cost. If the Contractor fails to attend to the Defects, theEmployer may, without prejudice to any other rights and remedies which he may possessunder the Contract, employ and pay other Person to rectify the Defects and all costsincurred shall be set-off by the Employer under Clause 30A. If the Architect with theconsent of the Employer, instructs the Contractor to leave the Defects in the Works, then anappropriate deduction for such Defects not made good by the Contractor shall be set-off bythe Employer under Clause 30.4.Notwithstanding Clause IA , the Architect may at any time during the Defects LiabilityPeriod issue an Al requiring any critical Defects which need urgent rectification to be madegood within a reasonable time specified by the Architect at the Contractor's cost. If theConrractor fails to attend to such Defects within the time specified by the Architect, theEmployer may employ and pay other Person to rectify such Defects and all costs incurredshall be set-off by the Employer under Clause 30.4.Upon completion of making good all Defects which may have been required to be madegood under Clause IS.4, the Contractor shall forthwith give written notice to the Architectto that effect. The Architect shall within fourteen (14) Days do either one of the following:lS.6(a) if the Architect is of the opinion that there is ,,0 Defects or the Contractor has

made good all Defects, the Architect shall issue a Certificate of Making GoodDefects and the date of making good Defects shall be the date of receipt o f theContractor's written notice. The Certificate of Making Good Defects shall beissued to the Contractor and copies shall be extended to the Employer andNominated Sub-Contractors; or

P Al\-{ C on tra ct 2 00 6 ( Wit ho ut Quantities)

IS.6(b) if the Architect is of the opinion that the Defects have not been made good, theArchitect shall give written notice to the Contractor with copies to NominatedSub-Contractors stating the reasons fer the non-issuance of the Certificate ofMaking Good Defects.

16.116.0 Partial Possession ByEmployer

If at any time before Practical Completion of the Works, the Employer wishes to takepossession and occupy any part of the Works ("the Occupied Part") and the consent of theContractor (whose consent .shall not be unreasonably delayed or withheld) has beenobtained, then notwithstanding anything expressed or implied elsewhere in the Contract,the Employer may take possession of the Occupied Part and the following shall apply:16.1(a) within fourteen (14) Days from the date on which the Employer has taken

possession of the Occupied Part, the Architect shall issue 'a Certificate ofPartial Completion. The Certificate of Partial Completion shall state theArchitect's estimate of the approximate total value of the Occupied Part andfor all purposes of Clause 16.0, the value so stated shall be deemed to be thetotal value of the Occupied Part;

16.1(b) for the purposes of Clauses 15.4, 15.5 and 16.1(t), Practical Completion of theOccupied Part shall be deemed to have occurred and the Defects LiabilityPeriod in respect of the Occupied Part shall be deemed to have commenced onthe date which the Employer has taken possession;

16.I(c) the Liquidated Damages under Clause 22.1 shall be reduced by the ratio of theestimated value of the Occupied Part to the Contract Sum;

16.1(d) upon the issuance of the Certificate of Partial Completion, the Architect shallwithin fourteen (14) Days issue a certificate to release half the amount of theRetention Fund in the ratio of the estimated value of the Occupied Part to theContract Sum. The Contractor shall be entitled to payment within the Period ofHonouring Certificates. The amount of the Limit of Retention Fund shall thenbe reduced by the same amount;

'17


26/53

Possession ofOccupied Partwithout consent

Contractor toremoveequiprn=ut

Assignment byEmployer

Assignment byContractor

No sub-contracting

Contractor'sindemnityagainst injury ordeath

Contractor'sindemnityagainst lossand/or damage

Contractor'sindemnityagainst claims byworkmen

16.2

16.3

1 6 . 1 (e ) when in the opinion of the Architect all Defects in me Occupiea Part which hemay have required to be made good under Clause 15.4 or 15.5 have been madegood, he shall issue a Certificate of Making Good Detects under Clause 1:5.6in respect of the Occupied Part; and

PAl\{ Contract 2006 (Without Quantities)

16.1 (f) upon the issuance of the Certificate 0f Making Good Defects of the OccupiedPan, the Architect shall within fourteen (14) Days issue a certificate tor therelease of the remaining amount of the Retention fund in respect of theOccupied Part. The Contractor shall be entitled to payment within the Periodof Honouring Certificate.

The Employer may, without prejudice to any other rights and remedies which he maypossess under the Contract, enter and occupy such part of the Works prior to the completionof the whole of the Works without the consent of the Contractor under Clause 16.1provided always that:16.2(a ) the completion of the Works has been delayed and a Certificate of Non-

Completion has been issued by the Architect under Clause 22.1; and16.2(b) such entry and occupation of the Occupied Pan can be effected without any

unreasonable disturbance to the progress of the Contractor's remaining works.In that event, the provisions of Clauses 16.1(a) to 16.l (f) shall apply.If the Employer takes possession of the Occupied Pan under Clause 16.1 or 16.2, theContractor shall upon the written instruction of the Architect remove I1lS site facilities,construction plant or equipment, materials and goods frcrn the Occupied Part.

17.117.0 Assignment And Sub-Contracting

17.2

17.3

18.0IS.1

IS.2

IS,]

Other than assigning his rights, interests or benefits under the Contract to his financialinstitution, the Employer shall not without the written consent of the Contractor (suchconsent shall not be unreasonably delayed or withheld) assign the same to other parties.Other than assigning any payment due or to become due under the Contract to his financialinstitution, the Contractor shall not without the written consent of the Employer (suchconsent shall be at the sole discretion of the Employer) assign his rights, interests orbenefits under the Contract to other parties.Except where otherwise provided by the Contract, the Contractor shall not wholly orsubstantially sub-contract the Works. Where the Contractor sub-contracts labour only ofcraftsmen, skilled or semi-skilled workmen to carry out any portion of the Works, this shallnot constitute sub-contracting within the meaning of this clause.Injury To Person Or Loss And/Or Damage Of Property And Indemnity To EmployerThe Contractor shall be liable. for and shall indemnify the Employer against any damage,expense, liability, loss, claim or proceedings whatsoever whether arising at common law orby statute in respect of personal injury to or death of any person arising out of or in thecourse of or caused by the carrying out of the Works and provided always that the same isdue to any negligence, omission, default and/or breach of contract by the Contractor or ofany Person for whom the Contractor is responsible.The Contractor shall be liable for and shall indemnify the Employer against any damage,expense, liability, loss, claim or proceedings due to loss and/or damage of any kindwhatsoever to any property real or personal, including the Works and any other property ofthe Employer, in so far as such loss and/or damage arises out of or in the course of or byreason of the execution of the Works and provided always that the same is due to anynegligence, omission, default and/or breach of contract by the Contractor or of any Personfor whom the Contractor is responsible.The Contractor shall be liable for and shall indemnify the Employer against any damage,expense, liability, loss, claim or proceedings whatsoever arising out of claims by any andevery workman employed in and for the execution of the Works and for payment ofcompensation under or by virtue of the Workmen's Compensation Ac: 1952 and theEmployees' Social Security Act 1969.

18


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Indemnities notto. be defeated

Contractor toinsure againstinjury to Personand loss and/ordamage ofproperty

Employees' socialsecurity schemefor localworkmen

Insurance forlocal workmennot subject toSOCSO

18 A The indemnities given by the Contractor under Clauses 1S.l to 1S.3 shall no t be defeated orreduced by reason of any negligence or omission of the Employer, Architect, Consultant orother authorised representatives in failing to supervise or control the Contractor's siteoperation or methods of working or temporary work or to detect or prevent or remedydefective work or to ensure proper performance of any obligation of the Contractor underthe Contract.

19.1

19.0 Insurance Against Injury To Person And Loss And/Or Damage Of Property

19.2

19.3

PAM Contract2006 (Without Quantities)

Without prejudice to his liability to indemnify the Employer under Clause 18.0, theContractor shall, as a condition precedent to the commencement of any work under the.Contract, take out and maintain in the joint names of the Employer, Contractor, sub-contractor and all interested parties in respect of personal injuries or death and injury or lossand/or damage of property real or personal arising out of or in the course of or by reason ofthe execution of the Works and whether or not such injury, death, loss and/or damage iscaused by negligence, omission, default and/or breach of contract by the Contractor,Employer, sub-contractor and interested parties and any of their servants and agents. Suchinsurance policy shall provide cover in respect of third party liability for personal injury ordeath and damage to property for the amounts stated in the Appendix. If the Contractorhaving regard to hISindemnity tothe Employer under Clause 18.0 desires to increase any ofthe insurance coverage, he shall do so and allow for any additional cost. The insurancepolicy shall include the following endorsements:19.1 (a) a "cross liability" endorsement to provide insurance cover to the Employer and

Contractor and any other parties involved in the Works as though they areseparately insured for their respective rights and interest;

19.1(b) an endorsement to the effect that the Architect, Consultant and any otherprofessional consultants (as appncable) and their employees andrepresentatives, Site. Staff, employees and reoresentatives of the Employer, aredeemed to be third parties;

19.I(c) an endorsement for waiver of all expressed or implied rights of subrogation orrecoveri es against the insured; and

19.J (d) an endorsement for automatic extension or renewal of the insurance up to theissuance of the Certificate of Making Good Defects.

Without prejudice to his liability to indemnify the Employer under Clause 18,0, theContractor shall register or cause to register all local workmen employed on the Works andwho are subject to registration under the Employees' Social Security Scheme (hereinafterreferred to as "SOC SO") in accordance with the Employees' Social Security Act 1969 andshall cause all sub-contractors to comply with the same provisions. The Contractor shallmake payment of all contributions and cause all sub-contractors to' make similar paymentsfrom time to time when the same ought to be paid.Without prejudice to his liability to indemnify the Employer under Clause 18.0, theContractor shall, as a condition precedent to the commencement of any work under theContract, take out and maintain in the joint names of the Employer and Contractor and shalJ.cause all sub-contractors to take out and maintain a similar insurance policy for localworkmen who are not subject to registration under SOCSO. Such insurance policy shall beeffected and maintained as necessary to cover an liabilities including common law liabilityin respect of any claim which may arise in the course of the execution of the Works. Theinsurance policy shall be valid up to the Completion Date and the extended maintenancecover shall be for the Defects Liability Period plus a further three (3) Months. If theContractor is unable to complete by the Completion Date or complete making good theDefects within the insured period, he shall ensure that the insurance is accordingly extendedfor the same period of delay. The Contractor shall effect the said extension of the insurancecover not Jess than one (I) Month before the expiry of the insurance currently in force.

19


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Workmen'scompensationinsurance forforeign workers

Placing ofinsurance withlicensedinsurancecompanies

Contractor'srisks - newb:!!!1ingsl works

Additional risksto be coveredunder theinsurance

Placing ofinsurance withlicensedinsurancecompanies

19.4

19.5

**20.A

20AI

20.A.2

20,A3

Without prejudice to his liability to indemnify the Employer under Clause IS.O, theContractor shall, as a condition precedent to the commencement of any work. under theContract, take out and maintain in the name of the Contractor and shall cause ail sub-contractors to take out and maintain a similar insurance policy for all foreign workersemployed on the Works as required by the Workmen's Compensation Act 195:: andWorkmen's Compensation (Foreign Worker's Compensation Scheme) (Insurance) Order1998. Such insurance policy shall be effected and maintained as necessary to cover allliabilities including common law liability in respect of any claim which may arise in thecourse of the execution of the Works. The insurance policy shall be valid up to theCompletion Date and the extended maintenance cover shall be for the Defects LiabilityPeriod plus a further three (3) Months. If the Contractor is unable to complete by theCompletion Date or complete making good the Defects within the insured period, he shallensure that the insurance is accordingly extended fur the same period of delay. TheContractor shall effect the said extension of the insurance cover not less than one (1) Monthbefore the expiry of the insurance currently in force.The insurance referred to in Clauses 19.1,19.2,19.3 and 19.4 shall be placed with licensedinsurance companies approved by the Employer, and the Contractor shall deposit with theEmployer the policy and the receipt of premiums paid with copies extended to the Architectand Consultant. If the Contractor makes default in insuring or continuing to insure asaforesaid, the Employer may (but is not obligated to) insure against any risks in respect ofwhich the default has occurred and the amount of premiums and any other cost incurred orpaid by the Employer shall be set-off by the Employer under Clause 30.4.Insurance Of New BuildingslWorks - By The ContractorWithout prejudice to his liability [0 indemnify the Employer under Clause lS.O, theContractor shall, as a condition precedent to the commencement of any work under theContract, take out and maintain in the joint names of the Employer, Contractor, sub-contractors and all interested parties a Cf\.?c Insurance policy for a value not less than theContract Sum, plus the sum to cover professional fees for reinstatement and the sum tocover the removal of debris all as stated in the Appendix. Unless covered by the standardCAR Insurance policy. the insurance shall have endorsements to cover against loss and/ordamage by fire, lightnmg, explosion, earthquake, volcanism, tsunami, storm, cyclone,flood, inundation, landslide, theft, ground subsidence, existing underground cables and/orpipes cr other underground facilities, bursting or overflowing of water tanks, apparatus orpipes, aircraft and other aerial devices or articles dropped therefrom, strike, riot and civilcommotion, malicious damage, trespass, cessation of work whether total or partial,vibration and weakening of support. Unless otherwise insured by the Contractor, the CARInsurance policy will exclude cover for construction plant, tools and equipment owned orhired by the Contractor or any sub-contractors. The Contractor shan keep such Works soinsured notwithstanding any arrangement for Sectional Completion under Clause 21.0 orPartial Possession under Clause 16.0. The insurance policy shall be valid up to theCompletion Date and the extended maintenance cover shall be for the Defects LiabilityPeriod plus a further three (3) Months. If the Ccntractor is unable to complete by theCompletion Date or complete making good the Defects within the insured period, he shallensure that the insurance is accordingly extended for the same period of delay, TheContractor shall effect the said extension of the insurance cover not less than one (1) Monthbefore the expiry of the insurance currently in force. Where deductibles ate specified in theAppendix or in the insurance policy, the Contractor shall bear the amount of all deductibles.The insurance policy shall also include the endorsement under Clauses 19. 1(a) to (d),Any additional risks or endorsements in addition to those stated in Clause 20.A.l whichmay be required to be covered under the CAR Insurance policy shall be specified in theContract Bills. If the Contractor having regard to his indemnity to the Employer underClause 18.0, desires to have any additional endorsements to the insurance in addition to therisks specified, he shall do so at his own cost.The insurance referred to in Clause 20.A shall be placed with licensed insurance companiesapproved by the Employer, and the Contractor shall deposit with the Employer the policyand the receipt of premiums paid. If the Contractor makes default in insuring or continuingto insure as aforesaid, the Employer may insure against any risks in respect of which thedefault has occurred and the amount of premiums and any other cost incurred or paid by theEmployer shall be set-off by the Employer under Clause 30.4.

Strike out Clause 20.A. 20.B or 20. C as appropriate

PAJ ,, !Con t rac t 2006 (WithoutQuantities) 20


29/53

Application ofinsurance claimproceeds

Insurance byEmployer

Additional risksrequired by theContractor

Maintenance ofpolicy

Failure ofEmployer toinsure

20.AA

H20.B

20.B.l

20.B.2

20.B.3

20.B.4

Upon the OCCUI7enceof any loss and/or damage to the Works or unfixed materials andgoods prior to Practical Completion of the Works from any cause whatsoever, andnotwithstanding that settlement of any insurance claim has not been completed. tr.eContractor shall with due diligence restore, replace or repair the same. remove and disposeof any debris and proceed with the carrying out and completion of the Works. All money ifand when received from the insurance under this clause shall be paid 'In the first place La theEmployer. The Employer shall retain the amount paid by the insurance companies inrespect of professional fees for reinstatement and pay the balance to the Contractor and/orNominated Sub-Contractors by installments under separate certificates to be issued by theArchitect. The Contractor shall not be entitled to any additional payments in respect of therestoration of the damaged work and replacement or repair of any unfixed materials andgoods and the removal and disposal of debris other than the monies received under theaforesaid insurance.Insurance Of New Buildings/Works - By The EmployerWithout prejudice to the Contractor 's liability to indemnify the Employer under ClauseIS.O, the Employer shall, as a condition precedent to the commencement of any work underthe Contract, take out and maintain in the joint names of the Employer, Contractor, sub-contractors and all interested parties a CAR Insurance policy for a value not less than theContract Sum, plus the sum to cover professional fees for reinstatement and the sum tocover the removal of debris all as stated in the Appendix. Lniess covered by the standardCAR Insurance policy, the insurance shall have endorsements to cover against loss andlordamage by fire, lightning, explosion, earthquake, volcanism, tsunami, storm, cyclone,flood, inundation, landslide, ground subsidence, existing underground cables and/or pipesor other underground facilities, bursting or overflowing of water tanks, apparatus or pipes,aircraft and other aerial devices or articles dropped therefrom, strike, riot and civilcommotion, malicious damage, trespass, cessation of work whether total or partial,vibration and weakening C lf support. Unless separately required by the Contractor at hisown cost, the CAR Insurance policy will exclude cover for construction plan" tools and'equipment owned or hired by the Contractor or any sub-contractor. The Employer shallkeep such Works so insured notwithstanding any arrangement for Sectional Completionunder Clause 21.0 or Partial Possession under Clause 16.u. The insurance policy shall bevalid up to the Completion Date and the extended maintenance cover shall be for theDefects Liability Period plus a further three (3) Months. If the Contractor is unable tvcomplete by the Completion Date or complete making good the Defects within the insuredperiod, the Employer shall ensure that the insurance is accordingly extended for the sameperiod of delay. The Employer shall effect the said extension of the insurance cover not lessthan one (I)Month before the expiry of the insurance currently in force. Where deductiblesare specified in the Appendix or in the insurance policy, the Contractor shall bear theamount of all deductibles, The insurance policy shall also include the endorsement underClauses 19:1 (a) to (d).Any additional risks or endorsements which vary from those stated in Clause 20.B.1 sharibe specified in the Contract Bills, and the Employer shall ensure that the risks specified inthe Contract Bills are covered by the CAR Insurance policy. If the Contractor having regardto his indemnity to the Employer under C1ause 18.0, desires to have further additionalendorsements to the insurance in addition to the risks specified, he shall do so at his owncost.The Employer shall maintain a proper insurance policy against the aforesaid risks and suchpolicy and receipt for the last premium paid for its renewal shall, upon the request of theContractor, be produced for his inspection.If the Employer at any time upon the request of the Contractor fails to produce any receiptshowing such a policy as aforesaid to be effective, then the Contractor may take out andmaintain in the joint names of the Employer, Contractor, sub-contractors and all interestedparties, the CAR Insurance policy as required under Clauses 20.B.1 and 20.B.2. TheContractor upon production of the receipt of any premium paid by him shall be entitled tohave the amount added to the Contract Sum .

S tr ik e out C la us e 2 0 .A , 2 0. B or 2 0.C a s appropriate



30/53

Application ofinsurance claimproceeds

Employer's risks- existingbuilding orextension

Additional risksrequired byContractor

Maintenance of-insurance byEmployerFailure ofEmployer toinsure

20,B,)

**20,C

20,C.l

20,C.2

20,C3

20,CA

Upon the occurrence of any loss and/or damage to the Yvorks or unrixed materials andgoods prior to Practical Completion of the Works from an.v cause wharscevcrnotwithstanding that settlement of any insurance claim ha s not been completed. theContractor shall with due diligence restore. replace or repair the same. remove and disposeof any debris and proceed with the carrying out and completion of the Works, Ail money ifand when received from the insurance under this clause shall be paid in the first place LO th eEmployer. The Employer shall retain the amount paid by the insurance companies inrespect of professional fees for reinstatement and pay the balance to the Contractor and/orNominated Sub-Contractors by installments under separate certificates issued by theArchitect. The Contractor shall not be entitled to any additional payments in respect of therestoration of the damaged work and replacement or repair of any unfixed materials andgoods and the removal and disposal of debris other than the monies received under theaforesaid insurance,Insurance Of Existing Building Or Extension - By The EmployerWithout prejudice to the Contractor's liability to indemnify the Employer under Clause18,0, the Employer shall, as a condition precedent to the commencement of any work underthe Contract, take out and maintain in the joint names of the Employer, Contractor, sub-contractors and all interested parties a CAR Insurance policy for a value not less than theContract Sum, plus the value of the existing structure together with al l the contents ownedby the Employer' or for which he is responsible, the sum to cover professional fees forreinstatement and the sum to cover the removal of debris all as stated in the Appendix,Unless covered by the standard CAR Insurance policy, the insurance shall haveendorsements to cover against loss and/or damage by fire, l ightning, explosion, earthquake,volcanism, tsunami, storm, cyclone, flood, inundation, landslide, ground subsidence,existing underground cables and/or pipes or other underground facilities, bursting orovert lowing of water tanks, apparatus or pipes, aircraft and other aerial devices or articlesdropped therefrom, strike, riot and civil commotion, malicious damage, trespass, cessationof work whether total or p ar ti al , v ib ra ti on and weakening e l f support. unless separatelyrequired by the Contractor at his own ~CJ3t, the CAR Insurance policy will exclude cover forconstruction plant, tools and equipment owned or hired by the Contractor or any sub-contractor. The Employer shall keep such Works so insured notwithstanding anyarrangement for Sectional Completion under Clause 21.0 or Partial Possession underClause 16,0, The i