PAM Contract 2006 (Without Quantities)

Agreement And Conditions
Of
·PAM Contract 2006

(Without Quantities)
This page is dclilierotely left blank.
All parties must. rdy upon their own skill and judgment or upon tbose of thei r advisers when using this document
and PAM assumes no liAhility to any user or any third party in conncctinn with such use.
Table of Contents
Page
Articles Of Agreement
Preliminary Recitals
Date of agreement
Parties to agreement and their addresses
The nature of the works and the location
The drawings
Articles
Article l Contractor's Obligations 2
Article 2 Contract Sum 2
Article 3 Architect 2
Article 4 Engineer 2-3
Article 5 Quantity Surveyor 3
A1ticle 6 Specialist Consultant 3
Article 7 Definitions 4-7
Article 8 Meanings 7
Attestation/Signatories Of The Parties 8
The Conditions Of Contract
Clause
1.0 Contractor's Obligations 9

1.1 Completion of Works in accordance with Contract Documents 9
1.2 Temporary work and construction method 9
1.3 Contractor's design and responsibilities 9
1.4 Discrepancy or divergence between documents 9
2.0 Architect's Instructions ('Al') 9

2.1 Contractor to comply with AI 9
2.2 AI 9
2.3 Provisions empowering instructions 9
2.4 Failure of Contractor to comply with AI 9
3.0 Contract Documents, Programme And As-built Drawings 9

3. l Contract Documents 9-10
3.2 Custody of tender documents lO
3.3 Copies of documents lO
3.4 Further drawings or details 10
3.5 Works Programme IO
3.6 Programme not part of Contract 10
3.7 Architect's acceptance of program me lO
3.8 Availability of documents lO
3.9 Limitation of use of documents 10
3.10 As-built Drawings and operation and maintenance manuals lO
4.0 Statutory Obligations, Notices, Fees And Charges 11

4.1 Statutory requirements ll
4.2 Inconsistencies with statutory requirements 11
PAM Contract 2006 (Without Quantities) (i)

Table of Contents (Cont'd)
Page
The Conditions Of Contract (Cont'd)
Clause
4.3 Conforming to statutory obligations 11

4.4 Fees, levies and charges 11
5.0 Levels And Setting Out Of The Works 11

5.1 Setting out 11
6.0 Matedals, Goods And Workmanship To Conform To Description, Testing And Inspection • 11
6.1 Standards of works, materials, goods and workmanship 11
6.2 Provision of vouchers ll
6.3 l nspection and testing 11
6.4 Contractor's obligation not relieved 11
6.5 Work not in accordance with the Contract l2
6.6 No compensation for time and cost 12
6.7 Failure of Contractor to comply 12
6.8 Warranties in respect of materials and goods 12
7.0 Royalties And Intellectual Property Rights 12

7.1 Indemnity to Employer 12
7.2 Contractor's liability to pay 12
7.3 Government royalties 12
8.0 Site Agent 12

8.1 Site Agent 12
8.2 [nstructions to Site Agent 13
8.3 Exclusion of Person employed on the Works 13
9.0 Access To The Works 13

9.1 Access to the Works 13
10.0 Site Staff 13

JO.I Duty of Site Staff 13
10.2 Directions given by Site Staff 13
11.0 Variations, Provisional And Prime Cost Sums 13

I I. I Definition of Variation 13
11.2 No Variations required by Architect shall vitiate Contract 13
11.3 Issue of Variations after Practical Completion 14
11.4 AI on P.C. Sums and Provisional Sums 14
11.5 Valuation of Variations and Provisional Sums 14
I l.6 Valuation rules 14
11.7 Additional expense caused by Variation 14-15
11.8 Access to Contractor's books and documents 15
11.9 Variations and additional expenses added to Contract Sum 15
12.0 Quality And Quantity Of The Works 15

12.1 Quality and quantity of the Works 15
12.2 Lump Sum Contract 15
13.0 Contract Sum 15

13.1 Contract Sum not to be adjusted or altered 15
14.0 Materials And Goods 15

14.1 Materials and goods not to be removed 15
14.2 Materials and goods included in certificates 15
14.3 Responsibility for materials and goods 15
14.4 Warranty of title of goods and materials 16
15.0 Practical Completion And Defects Liability 16

15.1 Practical Completion 16
15.2 Cer1ificate of Practical Completion 16
15.3 Contractor's failure to comply with undertaking 16
15.4 Schedule of Defects 17
PAM Contract 2006 (Without Quantities ) (ii)

Page
Clause
15.5 Instruction to make good Defects 17

15.6 Certificate of Making Good Defects 17
16.0 Partial Possession By Employer 17

16. l Possession of Occupied Part with consent 17-18
16.2 Possession of Occupied Part without consent 18
16.3 Contractor to remove equipment 18
17.0 Assignment And Sub-Contracting 18

17. l Assignment by Employer 18
17.2 Assignment by Contractor 18
17.3 No sub-contracting 18
18.0 Injury To Person Or Loss And/Or Damage Of Property And Indemnity To Employer 18
18.1 Contractor's indemnity against injury or death 18
18.2 Contractor's indemnity against loss and/or damage 18
18.3 Contactor's indemnity against claims by workmen 18
18.4 Indemnities not to be defeated 19
19.0 Insurance Against Injury To Person And Loss And/Or Damage Of Property 19
19.1 Contractor to insure against injury to Person and loss and/or damage of property 19
19.2 Employee's social security scheme for local workmen 19
19.3 Insurance for local workmen not subject to SOCSO 19
19.4 Workmen's compensation insurance for foreign workers 20
19.5 Placing of insurance with licensed insurance companies 20
20.A Insurance Of New Buildings/Works - By The Contractor 20

20.A.l Contractor's risks - new buildings/works 20
20.A.2 Additional risks to be covered under the insurance 20
20.A.3 Placing of insurance with licensed insurance companies 20
20.A.4 Application of insurance claim proceeds 21
20.B Insurance Of New Buildings/Works - By The Employer 21

20.8.l Insurance by Employer 21
20.8.2 Additional risks required by the Contractor 21
20.8.3 Maintenance of policy 21
20.8.4 Failure of Employer to insure 21
20.8.5 Application of insurance claim proceeds 22
20.C Insurance Of Existing Building Or Extension - By The Employer 22

20.C.l Employer's risks - existing building or extension 22
20.C.2 Additional risks required by the Contractor 22
20.C.3 Maintenance of insurance by Employer 22
20.C.4 Failure of Employer to insure 22
20.C.5 Application of insurance claim proceeds 23
21.0 Date Of Commencement, Postponement And Date For Completion 23

21.1 Commencement and Completion 23
21.2 Sectional Commencement Dates 23
21.3 Sectional Completion Dates 23
21.4 Postponement or suspension of the Works 23
22.0 Damages For Non-Completion 23

22.l Liquidated Damages and Certificate of Non-Completion 23
22.2 Agreed Liquidated Damages amount 23
22.3 Certificate of Non-Completion revoked by subsequent Certificate of Extension of Time 24
23.0 Extension Of Time 24

23.l Submission of notice and particulars for extension of time 24
23.2 Delay by Nominated Sub-Contractor 24
PAM Contract 2006 (Without Quantities) (ii i)

r.
Table of Contents (Cont 'd)
Page
Clause
23.3 Insufficient information 24

23.4 Certificate of Extension of Time 24
23 .5 Other consideration for giving extension of time 24
23 .6 Contractor to prevent delay 24
23 .7 Notification to Nominated Sub-Contractors 24
23.8 Relevant Events 25-26
23 .9 Extension of time after the issuance of Certificate of Non-Completion 26
23.10 Architect's review of extension of time after Practical Completion 26
24.0 Loss And/Or Expense Caused By Matters Affecting The Regular Progress Of The Works 26
24 .1 Loss and/or expense caused by matters affecting the regular progress of the Works 26-27
24.2 Access to Contractor's books and documents 27
24.3 Matters materially affecting the regular progress of the Works 27-28
24.4 Loss and/or expense to be included in certificate 28
25.0 Determination Of Contractor's Employment By Employer 28

25.1 Defaults by Contractor 28
25.2 Procedure for determination 28
25 .3 Contractor's insolvency 28
25 .4 Rights and duties of Employer and Contractor 28-29
25 .5 Records of Works 29
25 .6 Final Account upon determination 29
25.7 Remedy limited to damages only 30
25 .8 Employer's rights and remedies not prejudiced 30
26.0 Determination Of Own Employment By Contractor 30

26. l Defaults by Employer 30
26.2 Procedure for determination 31
26.3 Employer's insolvency 31
26.4 Rights and duties of Contractor and Employer 31
26.5 Records of Works 31
26.6 Settlement of accounts 31
26.7 Contractor's rights and remedies not prejudiced 32
27.0 Nominated Sub-Contractors 32

27 .1 P.C. Sums and Provisional Sums - Nominated Sub-Contractors 32
27.2 Nomination of sub-contractor 32-33
27.3 Objection to nomination of sub-contractor 33
27.4 Action following objection of Nominated Sub-Contractor 33
27 .5 Payment by Contractor to Nominated Sub-Contractors 33
27.6 Failure of Contractor to pay Nominated Sub-Contractors 33
27.7 Final payment to Nominated Sub-Contractors 33
27.8 Determination of the Nominated Sub-Contractor's employment 34
27.9 Contractor's responsibility for Nominated Sub-Contractors 34
27.10 Employer no privity of Contract with Nominated Sub-Contractors 34
27.11 Re-nomination of sub-contractor due to determination by the Contractor 34
27.12 Re-nomination of sub-contractor due to determination by the Nominated Sub-Contractor 34
27.13 Contractor to recover additional expenses from Nominated Sub-Contractor 34
27.14 Contractor permitted to tender for P.C. Sums 34
28.0 Nominated Suppliers 34

28 .l P.C. Sums and Provisional Sums - Nominated Suppliers 34
28.2 Nominated Suppliers and their obligations 34-35
28.3 Objection to nomination of suppliers 35
28.4 Action following objection of suppliers 35
28.5 Value of materials and goods supplied by Nominated Suppliers 35
28 .6 Payment to Nominated Suppliers 35
28.7 Contractor's liability for Nominated Suppliers 36
28.8 Employer no privity of Contract with Nominated Suppliers 36
PAM Contract 2006 (Without Qu antities) (iv)

Page
Clause
29.0 Works By Craftsmen, Tradesmen Or Other Contractors Employed Or Engaged By Employer 36

29.1 Works by Employer's craftsmen 36
30.0 Certificates And Payment 36

30.1 Payment application and issue of Architect's certificate 36
30.2 Amount due in Architect's certificate 36
30.3 Errors in payment certificate 36
30.4 Set-off by Employer 36-37
30.5 Retention Fund 37
30.6 Rules regarding Retention Fund 37
30.7 Suspension of Works for non-payment 37
30.8 Compulsory suspension of Works 37
30.9 Cessation insurance resulting from suspension of the Works 37
30.10 Final Account 38
30.11 Items in Final Account 38
30.12 Conclusiveness of the Final Account 39
30.13 Issuance of Penultimate Certificate 39
30.14 Issue of Final Ce11ificate 39
30.15 Final Certificate 39
30.16 Final Certificate not conclusive 39
30.17 Interest 39
31.0 Outbreak Of Hostilities 39

3 l.l Hostilities - determination by Employer or Contractor 39
31.2 Notices of determination 39
31.3 AI regarding protective work 40
3 l.4 Payment resulting from determination 40
32.0 War Damage 40

32.1 Procedures following war damage 40
32.2 Definition of war damage 40
33.0 Antiquities 40
33.1 Antiquities property of Employer 40
34.0 Adjudication And Arbitration 40

34.1 Set-off disputes referred to adjudication 40
34.2 Notice to refer to adjudication 41
34.3 Adjudication Rules 41
34.4 Decision of the adjudicator 41
34.5 Disputes referred to arbitration 41
34.6 Procedures for appointment of arbitrator 41
34.7 Arbitration Act and Rules 41
34.8 Powers of arbitrator 41-42
34.9 Consolidation of arbitration proceedings 42
34.10 Commencement of arbitration proceeding 42
34.11 Arbitrator's award to be final and binding on parties 42
35.0 Mediation 42
35.1 Mediation under PAM rules 42
35.2 Mediation does not prejudice the parties' rights to arbitration 42
36.0 Notice 42
36.1 Notice 42-43
36.2 Notice deem served 43
36.3 Proof of Notice 43
36.4 Written communication 43
PAM Contract 2006 (Without Quantities) (v)

Ta hie of Contents (Cont'd)
Page
Clause
37.0 Performance Bond 43

37.1 Submission of Performance Bond 43
37.2 Form of the Performance Bond 43
37.3 Validity of the Perfonnance Bond 43
37.4 Failure to extend the validity 43
37.5 Payments from the Performance Bond 43
37.6 Return of Performance Bond 43
38.0 Governing Law 43

38.1 Governing Law 43
Appendix 44
PAM Contract 2006 (Without Quantities) (vi)

PAM CONTRACT 2006 (WITHOUT QUANTITIES)
Articles Of Agreement
This 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').
Whereas
The Employer is desirous of(*) ...... .. ... ........... ........ ... ..... .......... ............. ................... ............ .... ....... ... ..................... .
(hereinafter called 'the Works') at ...................................... .. ...................................................................................................... .
and has caused drawings and Contract Bills showing and describing the work to be done to be prepared by his Architect and
Consultant.
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 parties
hereto.
(*)Brief description ofthe Wol'l<s.
PAM Contract 2006 (Without Quantities)

Now it is hereby agreed as follows:
Article 1
For the consideration hereinafter mentioned the Contractor will upon and subject to the Contractor's
Contract carry out and complete the Works shown upon and described by or referred to in Obligations
the Contract.
Article2
The Employer will pay the Contractor the sum of Ringgit Malaysia: .............................. . Contract Sum
(RM ) (hereinafter referred to as 'the Contract Sum') or such

other sum as shall become payable hereunder at the times and in the manner specified in the
Contract.
Article 3
The term 'the Architect' in the Contract shall mean ............................. . .................. . Architect
of ...................................................................................................................................... .
or in the event of such Person ceasing to be the Architect for 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 cettificate or
opinion or decision or approval or instruction given by the preceding Architect.
Article 4
The term 'the Engineer' in the Contract shall mean: Engineer
(a) Structural & Civil Engineer: .......................................................................................... .
of.. ....................................................................................................................... .... ... .
(b) Mechanical & Electrical Engineer: .................................................. .. .......... ..... ........ .
of ...................................................................................................................... . ......... .
PAM Contract 2006 (Without Quantities) 2

or in the event of such Person ceasing to be the Engineer for the purpose of the Contract,
such other Person as the Employer shall appoint within twenty eight (28) Days therefrom.
The Engineer shall perform the duties expected of his profession, and the Architect may
from time to time delegate such duties and authority of the Architect to the Engineer as the
Architect deems fit.
Article 5
The term 'the Quantity Surveyor' in the Contract shall mean ...................... ............... . Quantity
Surveyor
of ............................. ...................................................... ........ .... ....... ....... ........ ... .......... .. .
or in the event of such Person ceasing to be the Quantity Surveyor for the purpose of the
Contract, such other Person as the Employer shall appoint within twenty eight (28) Days
therefrom. The Quantity Surveyor shall perfonn the duties expected of his profession, and
the Architect may from time to time delegate such duties and authority of the Architect to
the Quantity Surveyor as the Architect deems fit.
Article 6
The term 'the Specialist Consultant' in the Contract shall mean: Specialist
Consultant
(a) .. ........................... ..... ············· ·· ···················· ·················· ······· ············ .......................... .

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

of ................... ........................... ...... .... .............................. ................ ..... . ..... ............ ... .
(c) .................................................................................................................................. .. .
of ... .. ........................................................................................................................... .
or in the ev~nt of such Person ceasing to be the Specialist Consultant for the purpose of the
Contract, such other Person as the Employer shall appoint within twenty eight (28) Days
therefrom. The Specialist Consultant shall perfonn the duties expected of his profession,
and the Architect may from time to time delegate such duties and authority of the Architect
to the Specialist Consultant as the Architect deems fit.

Article 7
Jn the Contract Documents as hereafter defined, the following words and expressions shall Definitions
have 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
Works;
(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 1967
and 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 any
other as-built drawings required to be provided as specified in the Contract
Documents;
(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 Clause
15.6;
(h) Certificate of Non-Completion means the certificate issued under Clause 22.1;
(i) Certificate of Partial Completion means the certificate issued under Clause 16. l;
G) Certificate of Practical Completion means the certificate issued under Clause

15.2;
(k) Certificate of Sectional Completion means the certificate issued under Clause
2 1.3;
(I) Clause 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 under
Clause 23.4;
(n) Conditions means the Conditions of the Contract;
(o) 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 of the Tender (or Contract Sum);
(vi) Schedule of Rates; and
(vii) any other documents specifically mentioned in any of the above documents;

(s) Contract Sum means the sum stated in Article 2;
(t) Contractor means the party nained in the Articles of Agreement and includes the
Contractor's legal successors or personal representatives or any Person to whom
the rights and obligations of the Contractor have been transfen-ed with the
agreement of the Employer;
(u) Contractor's All Risks Insurance ('CAR Insurance') means an insurance policy
which provides cover against any physical loss or damage to work executed and
materials and goods under a standard CAR fnsurance policy. The minimum
insurance risks are specified under Clauses 19.0, 20.A or 20.B or 20.C, and the
insurance shall have the appropriate endorsements. Any additional insurance risks
in addition to those stated in these Conditions that are required to be covered under
the CAR Insurance shall be stated in the Contract Bills;
(v) Date of Commencement means the date(s) fixed and stated in the Appendix
under Clauses 21.1 and 21.2;
(w) Day means calendar day including the weekly day of rest but excluding gazetted
holidays in the location where the Works is carried out;
(x) Defects means defects, shrinkages or other faults due to materials or workmanship
not in accordance with the Contract and Nominated Sub-Contract and/or due to
any faulty design (if any) unde1taken by the Contractor and Nominated Sub-
contractor;
(y) Defects Liability Period means the period stated in the Appendix under Clause
15.4;
(z) Employer means the party named in the A1ticles of Agreement and includes the
Employer's legal successors or personal representatives or any Person to whom
the rights and obligations of the Employer have been transfe1Ted with the
agreement of the Contractor;
(aa) Engineer means the Person named in Article 4 and shall be a Professional
Engineer or any other fonn of practice registered under the Registration of
Engineers Act 1967 and approved by the Board of Engineers, Malaysia;
(ab) Final Account means the documents showing the adjustment of the Contract Sum
issued under Clause 30.10;
(ac) Final Certificate means the final certificate issued by the Architect under Clauses
30.14 and 30.15;
(ad) Force Majeure means any circumstances beyond the control of the Contractor
caused by terrorist acts, governmental or regulatory action, epidemics and natural
disasters;
(ae) Interim Certificates means the progress payment certificate issued by the
Architect under Clause 30.1;
(af) Letter of Award means the letter of acceptance of the Contractor's tender issued
by or on behalf of the Employer;
(ag) Limit of Retention Fund means the amount as stated in the Appendix under
Clause 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 Variations
which shall be valued under Clause 11.0;
(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 the
Architect under Clause 27 .2;

(ak) Nominated Sub-Contractor means a sub-contractor nominated by the Architect
under Clause 27.1;
(al) Nominated Supplier means a supplier nominated by the Architect tinder Clause
28.1;
(am) PAM Sub-Contract 2006 means the form of contract as published by Pertubuhan
Akitek Malaysia where the sub-contractor is nominated under the PAM Contract
2006;
(an) Penultimate Certificate means the payment certificate issued by the Architect for
the release of monies to Nominated Sub-Contractors and/or Nominated Suppliers
under Clause 30.13;
(ao) Performance Bond means the bond required to be provided by the Contractor as
a security for the due performance of the contract under Clause 37. I;
(ap) Period of Honouring Certificates means the period for honouring certificates
stated in the Appendix under Clause 30.1;
(aq) Person means an individual, sole proprietorship, firm (partnership) or body

corporate;
(ar) Practical Completion or Practically Completed means the state of completion

described in Clause I 5 .1 ;
(as) Prime Cost Sums ('P.C. Sums') means the sums provided in the contract for
works or services to be executed by Nominated Sub-Contractor or for materials
and goods to be supplied by Nominated Supplier;
(at) Provisional or Provisional Quantity means the estimated quantities of work

provided in the Contract Bills for work to be executed or for the supply of any
materials and goods which cannot be determined or detailed at the time;
(au) Provisional Sums means the sums provided in the contract and/or the Nominated
Sub-Contract for work to be executed or for the supply of any materials and goods
which cannot be foreseen, determined or detailed at the time;
(av) Quantity Surveyor means the Person named in Article 5 and shall be a
Registered Quantity Surveyor or any other form of practice registered under the
Quantity Surveyors Act 1967 and approved by the Board of Quantity Surveyors,
Malaysia;
(aw) Relevant Event means any one of the events for extension of time set out in
Clause 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 the
Contract including other land and places obtained by the Contractor and accepted
by 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 of
professional work;

(be) Variation means changes made to the Worlcs as defined under Clause 11. l;
(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 in
accordance with the Contract; and
(bh) Works Programme means the works programme described in the Contract
Documents and in Clause 3.5.
Article 8
In the interpretation of the Contract, unless the context requires otherwise, the following Meanings
shall 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 construed
interchangeably in that manner;
(b) Headings and Marginal Notes - the headings and marginal notes in the Conditions
are not to be taken into consideration in the interpretation or construction of the
Conditions or of the Contract;
(c) Reference to legislation - a reference to any Acts is deemed to include references

to any subsequent amendments, consolidation or replacement of the Acts;
(d) Singular and Plural - words importing the singular also include the plural and vice
versa where the context requires; and
(e) Where any word or phrase is given a defined meaning, any other grammatical form
of that word or phrase has a corresponding meaning.

fN WITNESS WHEREOF
*The hand of the Employer has been hereunto set the day and year ) Signature ofEmployer.... .. .... ..... .. ..... ... .................. ..
first above written in the presence of:
)Name ....................... .... ... ... ...................................... .
)
)NRICNo ......................................... ........................... .
Signature of Witness ................................................................. .
Name .... .. ... ... .. ...... ..... ... ...... ... ... ... ..... ................ . .
NRICNo .................................... .. ......... ...................... .
* The Common Seal of .......................................................... ..

was hereunto affixed in the presence of:
Signature of Director................................................................. Signature of Director/Secretary* ......................... ........ ..... ..
Name ....................................................................................... . Name ............................................... .... .... .. .. ........ .. ...... ..
NRICNo ....... ................................... .... ... ... .... ......... ... . NRICNo ......................................................... .. ..
IN WITNESS WHEREOF
* The hand of the Contractor has been hereunto set the day and year ) Signature of Contractor ........................ ... ..... .......... .. .... .
first above written in the presence of:
)Name ............................................ ..... ...................... .
)NRICNo ..................................... ....... ....................... ..

Signature of Witness ................................................................ ..
Name ...................... ..... .... .. ..... ........................... .
NRICNo ..... ................................ ...... ... .... .. ... ... .. ..... .. ..
* The Common Seal of .......................................................... .

was hereunto affixed in the presence of:
Signature of Director................................... ............................ . Signature of Director/Secretary* .......... ....................... .
Name ...................................................................................... . Name ............................................... .. .... ...................... ..
NRICNo ........................................ .... ... ... ... ... ..... ...... .. NRICNo ........ .... ... ... ... .... ....... .. .... .... ........ .... .. ... ..
• Delete as appropriate
The aff1Xing ofthe Common Seal to be witnessed in accordance with the Memorandum & Articles ofAssociation ofthe Company.

The Conditions Of Contract
1.0 Contractor's Obligations
Completion of l.1 The Contractor shall upon and subject to these Conditions carry out and complete the
Works in Works in accordance with the Contract Documents and in compliance therewith provide
accordance with materials, goods and standards of workmanship of the quality and standard described in the
Contract Contract Documents and/or required by the Architect in accordance with the provisions of
Documents the Contract.
Temporary work 1.2 Unless designed by the Architect or Consultant, the Contractor shall be fully responsible for
and construction the adequacy, stability and safety of all temporary works and of all methods of construction
method of the Works, irrespective of any approval by the Architect or Consultant.
Contractor's 1.3 If the Contractor proposes any alternative design to that specified in the Works or if the
design and Contract leaves any matter of design, specification or choice of materials, goods and
responsibilities workmanship to the Contractor, the Conn·actor shall ensure that such works are fit for its
purpose. The copyright of the Contractor's design and alternative design belongs to the
Contractor, but the Employer shall be entitled to use the design and alternative design for
the completion, maintenance, repair and future extension of the Works. The acceptance by
the Architect or Consultant of the Contractor's design and alternative design shall not
relieve the Contractor of his responsibilities under the Contract.
Discrepancy or l.4 The Contractor shall use the Contract Documents and any other subsequent documents
divergence issued by the Architect to plan the Works prior to execution. If during the said planning and
between subsequent execution of the Works, the Contractor finds any discrepancy in or divergence
documents between any of the Contract Documents and any subsequent documents issued by the
Architect, he shall give to the Architect a written notice in sufficient time before the
commencement of construction of the affected works, specifying the discrepancy or
divergence to enable the Architect to issue written instructions within a period which would
not materially delay the progress of the affected works, having regard to the Completion
Date. Such discrepancy or divergence shall not vitiate the Contract.
2.0 Architect's Instructions ('Al')
Contractor to 2.1 The Contractor shall subject to Clauses 2.2 and 2.3 forthwith comply with all instructions
comply with AI issued to him by the Architect in regard to any matter in respect of which the Architect is
expressly empowered by these Conditions to issue instructions.
Al 2.2 All instructions issued by the Architect shall be in writing expressly entitled "Architect's
Instruction" ('AI'). All other forms of written instructions including drawings issued by the
Architect shall be an AI:
2.2(a) upon written confirmation from the Contractor entitled "Continuation of

Architect's Instruction" ('CAT'); or
2.2(b) upon subsequent confirmation of the written instructions by the Architect with
an Al.
Provisions 2.3 Upon receipt of a written instruction from the Architect, the Contractor may request the
empowering Architect to specify in writing which provision of these Conditions empowers the issuance
instructions of the said instruction and the Architect shall forthwith comply with such a request. If the
Contractor thereafter complies with the said instruction without invoking any dispute
resolution 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.
Failure of 2.4 If the time of compliance [which shall not be less than seven (7) Days from receipt of the
Contractor to Af] is stated by the Architect in the Al and the Contractor does not comply therewith then
comply with Al the Employer may, without prejudice to any other rights and remedies which he may
possess under the Contract, employ and pay other Person to execute any work which may
be necessru·y to give effect to such instruction. The cost of employing other Person and any
additional cost in this connection shall be set-off by the Employer under Clause 30.4.
3.0 Contract Documents, Programme And As-built Drawings
Contract 3.1 The Contract Documents are to be read as mutually explanatory-of one another. In the event
Documents of any conflict or inconsistencies between any of the Contract Document, the priority in the
interpretation of such documents shall be in the following descending order:

3.l(a) the Letter of Award;
3. J(b) the Articles of Agreement;
3. l(c) the Conditions of Contract;
3.l(d) the Contract Drawings;
3.l(e) the Contract Bills; and
3. l(f) other documents incorporated in the Contract Documents, unJess expressly

stated to be excluded in any of the Contract Document.
Custody of 3.2 The original tender documents shall remain in the custody of the Architect so as to be
tender available at all reasonable times for inspection by the Employer and Contractor.
documents
Copies of 3.3 Immediately after the execution of the Contract, the Architect shall without charge to the
documents Contractor provide him with:
3.3(a) one of the two signed original copies of the Contract Documents;
3.3(b) two (2) fu1ther copies of the Contract Drawings; and
3.3(c) two (2) copies of the unpriced Contract Bills.
Further 3.4 When necessary, the Architect shall without charge to the Contractor fi.tmish him with two
drawings or (2) copies of further drawings, details, levels and any other infomrntion as are reasonably
details necessary either to explain and amplify the Contract Drawings or to enable the Contractor
to complete the Works in accordance with these Conditions. If the Contractor requires any
further drawings, details, levels and any other information, he shall specifically apply in
writing to the Architect for these items in sufficient time before the commencement of
construction of the affected works to enable the Architect to issue instructions within a
period which would not materially delay the progress of the affected works having regard
to the Completion Date.
Works 3.5 Within twenty one (21) Days from receipt of the Letter of Award (or within such longer
Programme period as may be agreed in writing by the Architect), the Contractor shall provide to the
Architect for his information, six (6) copies of the Works Programme (unless a higher
number is stated in the Contract Documents) showing the order in which he proposes to
cany out the Works. The Works Programme shall comply with any requirements specified
in the Contract Documents. If the Works or any part of the Works is delayed for whatever
reason, the Architect may instruct the Contractor to revise the Works Programme. The
Contractor without charge to the Employer, shall provide the Architect from time to time
with similar number of copies of any revised Works Programme.
Programme not 3.6 The Works Programme shall not constitute part of the Contract, whether physically
part of Contract incorporated or not into the Contract Documents.
Architect's 3.7 The acceptance by the Architect of the Works Programme shall not relieve the Contractor
acceptance of of his obligations, duties or responsibilities under the Contract. The Works Programme may
programme be used by the Architect to monitor progress and the Architect is entitled to rely on the
Works Programme as a basis for the assessment of extension of time and the effect of the
delay and/or disturbances to the progress of the Works.
Availability of 3.8 The Contractor shall keep a copy of the Contract Drawings and the unpriced Contract Bi1ls
documents on the Site to be available to the Architect and Consultant and their authorised
representatives at all reasonable times.
Limitation of use 3.9 None of the Contract Documents in Clause 3.1 shall be used by the Contractor for any
of documents purpose other than the Contract. Except for the purpose of the Contract, the parties shall not
disclose any of the rates and prices in the Contract Bills to any other paity.
As-built 3.10 The Contractor shall supply and shall cause any Nominated Sub-Contractor to supply As-
Drawings and built Drawings and/or operation and maintenance manuals specified in the Contract
operation and Documents and/or Nominated Sub-Contract documents in the manner and within the time
maintenance specified therein. Where these are not specified, the Contractor shall supply and shall
manuals ensure that the Nominated Sub-Contractor supplies four (4) copies of the above items
before the Completion Date.

lI
1,
4.0 Statutory Obligations, Notices, Fees And Charges
Statutory 4.1 The Contractor shall comply with and submit all notices required by any laws, regulations,
requirements by-laws, terms and conditions of any Appropriate Authority and Service Provider in respect
of the execution of the Works and all temporary works.
Inconsistencies 4.2 lfthe Contractor finds any inconsistencies between the Contract Documents (including any
with statutory subsequent documents issued by the Architect) and any laws, regulations, by-laws, terms
requirements and conditions of any Appropriate Authority and Service Provider, he shall immediately
specify the inconsistencies and give to the Architect a written notice before commencement
of construction of the affected works.
Conforming to 4.3 If within seven (7) Days of having given written notice to the Architect, the Contractor does
statutory not receive any AI in regard to the matters specified in Clause 4.2, he shall proceed with the
obligations work to conform to such laws, regulations, by-laws, te1ms and conditions of any
Appropriate Authority and Service Provider. Any changes so necessitated shall be deemed
to be a Variation required by the Architect.
Fees, levies and 4.4 The Contractor shall pay and indemnify the Employer against any liability in respect of any
charges fees, 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 Appropriate
Authority and Service Provider in respect of the execution of the Works and all temporary
works. If the Contractor fails to pay, the Employer may pay such amount and such amount
together with any additional cost in this connection shall be set-off by the Employer under
Clause 30.4.
5.0 Levels And Setting Out Of The Works
Setting out 5.1 The Architect shall determine all levels which may be required for the execution of the
Works and shall provide the Contractor with drawings and information to enable the
Contractor to set out the Works. The Contractor shall at his own cost rectify any en-ors
arising from any inaccurate setting out. With the consent of the Employer, the Architect
may instrnct that such errors need not be rectified subject to an appropriate deduction to be
set-off by the Employer under Clause 30.4.
6.0 Materials, Goods And Workmanship To Conform To Description, Testing And

Inspection
Standards of 6.1 All works, materials, goods and workmanship shall be of the respective quality and
works, materials, standards described in the Contract Documents and required by the Architect in accordance
goods and with the provisions of the Contract.
workmanship
Provision of 6.2 The Contractor shall upon the request of the Architect, provide him with vouchers or such
vouchers other evidence to prove that the materials and goods comply with Clause 6.1.
Inspection and 6.3 The Contractor shall provide samples of materials and goods for testing before
testing incorporation into the Works. The Architect may issue an Al requiring the Contractor to
open up for inspection any work covered up, or to arrange for or carry out any test on any
materials and goods already incorporated in the Works or of any executed work. The cost
of such opening up or testing together with the cost of making good shall be added to the
Contract 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; or
6.3(c) the inspection or test was in the opm10n of the Architect required in
consequence of some prior negligence, omission, default and/or breach of
contract by the Contractor.
Contractor's 6.4 The provisions of Clauses 6.2 and 6.3 shall not relieve the Contractor of his obligations to
obligation not execute the work and supply materials and goods in accordance with the Contract.
relieved
PAM Contract 2006 (Without Quantities) II

Work not in 6.5 If the Architect finds any work, materials, goods or workmanship which is not m
accordance with accordance with the Contract, the Architect shall instruct the Contractor in writing:
the Contract
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 the
instruction) proposing how such works, materials, goods or workmanship can
be rectified. If the Architect accepts the Contractor's proposal, the Contractor
shall carry out the rectification work with no adjustment to the Contract Sum
or alternatively, the Architect may reject the proposal and issue any other
written 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 the
Employer under Clause 30.4 and the Contractor shall remain liable for the
same.
No compensation 6.6 Compliance by the Contractor with a written instruction issued under Clause 6.5 shall not
for time and cost entitle the Contractor to an extension of time nor compensation for any loss and/or expense
that may be incurred.
Failure of 6.7 If the Contractor fails or refuses to comply with a written instruction of the Architect issued
Contractor to under Clause 6.5, the Employer may without prejudice to any other rights or remedies
comply which he may possess under the Contract, employ and pay other Person to carry out the
subject matter of the written instruction. All costs incurred including any loss and expense
shall be set-off by the Employer under Clause 30.4.
Warranties in 6.8 If the Contract requires any manufacturer, sub-contractor or supplier to give a warranty or
respect of guarantee in respect of any proprietary systems, materials and goods supplied, the
materials and Contractor shall procure such warranties or guarantees and submit to the Employer. The
goods provision of such warranties or guarantees shall in no way relieve or release the Contractor
from any liabilities under the Contract.
7.0 Royalties And Intellectual Property Rights
Indemnity to 7.1 Subject to Clause 7 .2, all royalties or other sums payable in respect of the supply and use in
Employer carrying out the Works of any articles, processes, inventions or drawings shall be deemed
to have been included in the Contract Sum. The Contractor shall indemnify the Employer
against all claims, proceedings, damages, costs and expenses which may be brought against
the Employer or to which he may be subjected to by reason of the Contractor infringing or
being held to have infringed any such intellectual property rights.
Contractor's 7.2 Where in compliance with a written instruction, the Contractor has informed the Architect
liability to pay in writing that there may be an infringement of intellectual property rights but the Architect
still instructs the Contractor in writing to comply, the Contractor shall not be liable for any
such infringement. All royalties, damages or other monies which the Contractor may be
liable to pay for such infringement shall be added to the Contract Sum.
Government 7.3 Except where otherwise provided for in the Contract, the Contractor shall pay all
royalties Government royalties, levies, rent and all other payments in connection with the Works.
8.0 Site Agent
Site Agent 8. l The Contractor shall appoint a competent person to be the Site Agent. The Site Agent for
the purposes of the Contract shall be deemed to be the Contractor's authorised site
representative. The Site Agent shall be assisted by such assistants and supervisory staff as
necessary to execute the Works efficiently and satisfactorily. The Site Agent shall be
employed full time on Site and in the event that he has to be temporarily absent from the
Site, the Contractor shall designate a deputy in his place.
PAM Conh·act 2006 (Without Quantities) 12

Instructions to 8.2 The Contraetor shall ensure that the Site Agent and such assistants and supervisory staff are
Site Agent capable of receiving directions or instructions in English or Bahasa Malaysia. The Site
Agent shall be deemed to be authorised by the Contractor to receive any directions given by
the Site Staff or instructions given by the Architect and any such directions and instructions
given shall be deemed to have been given to the Contractor.
Exclusion of 8.3 The Architect may instruct the Contractor to remove the Site Agent or any Person under the
Person employed employment or control of the Contractor from the Site. The Architect shall not exercise this
on the Works discretion unreasonably or vexatiously. On receipt of a written instruction, the Contractor
shall immediately remove and replace such staff or any Person within a reasonable time and
such staff or Person so removed, shall not again be employed on the Site. The Contractor
shall not be entitled to any extension of time and additional cost in respect of any
instruction given by the Architect under this clause.
9.0 Access To The Works
Access to the 9.l The Architect, Consultant and their authorised representatives shall at all times have
Works reasonable access to the Works and to the factories, workshops or other places where any
construction plant, materials, goods and work are being fabricated, prepared or stored for
the Contract. The Contractor shall ensure that all sub-contracts contain provisions entitling
the Architect, Consultant and their authorised representatives to have such access.
10.0 Site Staff
Duty of Site Staff IO.I The Employer may from time to time appoint such number of Site Staff as the Employer
shall deem necessary. The Site Staff shall act as inspectors under the direction of the
Architect and the Contractor shal I provide reasonable facilities for the perfmmance of such
duties.
Directions given 10.2 Any directions given to the Contractor or his Site Agent by the Site Staff shall be of no
by Site Staff effect, unless given in writing in regard to a matter in respect of which the Site Staff have
been expressly authorised in writing by the Architect. All such directions involving a
Variation shall be of no effect, unless confirmed by an AI.
11.0 Variations, Provisional And Prime Cost Sums
Definition of l l. l The term "Variation" means the alteration or modification of the design, quality or quantity
Variation of the Works including:
l l. l(a) the addition, omission or substitution of any work;
11.l(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 than
work, materials and goods which are not in accordance with the Contract; and
I l.l(d) any changes to the provisions in the Contract with regards to:
11.l(d)(i) any limitation of working hours;
l l.l(d)(ii) working space;
11 . l(d)(iii) access to or utilisation of any specific part of the Site; and
11.1 (d)(iv) the execution and completion of the work in any specific order,
but shall exclude any changes intended to rectify any negligence, omission, default and/or
breach of contract by the Contractor and such changes shall be executed by the Contractor
entirely at his own cost.
No Variations 11.2 The Architect may issue an Al ordering a Variation or sanctioning any Variation made by
required by the Contractor. No Variation ordered by the Architect or subsequently sanctioned by him
Architect shall shall vitiate the Contract. Pending the valuation of the Variations, the Contractor shall carry
vitiate Contract out with due diligence and expedition all Variations so instructed.

Issue of 11.3 The Architect may issue instructions in writing requiring a Variation at any time before the
Variations after issuance of the Certificate of Practical Completion. Thereafter, any AI requiring a Variation
Practical must be necessitated by obligations or compliance with the requirements of any
Completion Appropriate Authority and Service Provider.
AI on P.C. Sums 11.4 The Architect shall issue Al in regard to the expenditure of P.C. Sums and Provisional
and Provisional Sums included in the Contract Bills and of P.C. Sums which arise as a result of instructions
Sums issued in regard to the expenditure of Provisional Sums.
Valuation of I 1.5 All Variations shall be measured and valued by the Architect. Where any recording of site
Variations and information and/or site measurements are carried out at the Site, the Contractor shall
Provisional Sums provide the Architect with such assistance as may be necessary to can-y out ·the works and
the Contractor shall be given the opportunity to be present to take such notes and
measurements as he may require.
Valuation rules I 1.6 The valuation of Variations and work executed by the Contractor for which a Provisional
Quantity is included in the Contract and the expenditure of Provisional Sums (other than for
work for which a tender had been accepted under Clause 27.14) shall be made in
accordance with the following rules:
I I .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 the
Contract Documents, the rates and prices in the Schedule of Rates shall
determine the valuation;
l l.6(b) where work is of a similar character to work as set out in the Contract
Documents but is not executed under similar conditions or is executed under
similar conditions but there is a significant change in the quantity of work
carried out, the rates and prices in the Schedule of Rates shall be the basis for
determining the valuation which shall include a fair adjustment in the rates to
take into account such difference;
I l.6(c) where work is not of a similar character to work as set out in the Contract
Documents, the valuation shall be at fair market rates and prices determined by
the Architect;
1 I .6(d) where work cannot be properly measured and valued in accordance with
Clause l 1.6(a), (b) or (c), the Contractor shall be allowed:
I I .6(d)(i) the daywork rates in the Schedule of Rates; or
l I .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, additional
construction plant and scaffolding, transport and labour for the
work concerned, plus fifteen (15) percent, which percentage
shall include for the use of all tools, standing plant, standing
scaffolding, supervision, overheads and profit.
ln either case, vouchers specifying the time spent daily upon the work, the
workers' names, materials, additional construction plant, scaffolding and
transport used shall be signed by the Site Agent and verified by the Site Staff
and shall be delivered to the Architect at weekly intervals with the final
records delivered not later than fourteen (l4) Days after the work has been
completed;
1J.6(e) the rates and prices in the Schedule of Rates shalJ determine the valuation of
items omitted. If omissions substantially vary the conditions under which any
remaining items of work are carried out, the prices of such remaining items
shall be valued under Clause l 1.6(a), (b) or (c); and
I l.6(f) in respect of Provisional Quantity, the quantities stated in the Contract Bills
shall be re-measured by the Architect based on the actual quantities executed.
The rates and prices in the Schedule of Rates shall determine their valuations.
Additional 11.7 Where a Variation has caused or is likely to cause the Contractor to incur additional
expense caused expenses for which he would not be paid under any provisions in Clause 11.6, the
by Variation Contractor may make a claim for such additional expenses provided always that:

I 1.7(a) the Contractor shall give written notice to the Architect of his intention to
claim for such additional expenses together with an initial estimate of his
claim duly supported with all necessary calculations. Such notice must be
given within twenty eight (28) Days from the date of the Al or CAl giving rise
to his claim. The giving of such written notice shall be a condition precedent to
any entitlement to additional expenses that the Contractor may have under the
Contract; and
1 l.7(b) within twenty eight (28) Days of completing such Variation, the Contractor
shall send to the Architect complete particulars of his claim for additional
expenses together with all necessary calculations to substantiate his claims. If
the Contractor fails to submit the required patticulars within the stated time (or
within such longer period as may be agreed in writing by the Architect), it
shall be deemed that the Contractor has waived his rights to any such
additional expenses.
Access to 11.8 The Contractor shall keep contemporaneous records to substantiate all his claims for
Contractor's additional expenses under Clause 11.7, and shall submit all particulars to the Architect and
books and Consultant. The Architect and Consultant shall have access to all books, documents,
documents reports, papers or records in the possession, custody or control of the Contractor that are
material to the claim and the Contractor shall provide free of charge a copy each to the
Architect and Consultant when requested. All such documents shall remain available in
accordance with this clause until all claims have been resolved. The Contractor shall use his
best endeavour to ensure that all such similar documents in the possession, custody or
control of sub-contractors and/or suppliers that are material to the claim are similarly
available.
Variations and 11.9 As soon as the Architect has ascertained the amount of Variations and/or additional
additional expenses claimed by the Contractor under Clause 11.7, the amount so ascertained shall be
expenses added added to the Contract Sum. When an Interim Certificate is issued after the date of
to Contract Sum ascertainment, such amount shall be included in the certificate.
12.0 Quality And Quantity Of The Works
Quality and 12.1 The quality and quantity of the work included in the Contract Sum shall be deemed to be
quantity of the those which are shown upon the Contract Drawings and/or set out in the Contract Bills.
Works Unless otherwise expressly stated, the measurements of Variations and Provisional
Quantities shall be carried out in accordance with the principles of the Standard Method of
Measurement of Building Works sanctioned by the Institution of Surveyors Malaysia and
currently in force
Lump Sum 12.2 Unless otherwise expressly provided, the contract is a Lump Sum Contract and shall be
Contract deemed to include all ancillary and other works and expenditure, which may or may not
have been specifically mentioned or described in the Contract Documents, but which are
either indispensably necessary to be carried out to bring the Works to completion or which
may contingently become necessary to overcome difficulties before completion.
13.0 Contract Sum
Contract Sum 13.1 The Contract Sum shall not be adjusted or altered in any way whatsoever, other than in
not to be accordance with the express provisions of the Contract. Any arithmetical errors or any
adjusted or errors in the prices and rates shall be corrected and/or rationalised by the Architect or
altered Consultant without any change to the Contract Sum before the signing of the Contract.
14.0 Materials And Goods
Materials and 14.1 Materials and goods delivered to the Site for incorporation into the permanent works shall
goods not to be not be removed until completion of the Works unless prior consent in writing from the
removed Architect has been obtained, which consent shall not be unreasonably withheld or delayed.
Materials and 14.2 Where the value of such materials and goods has in accordance with Clause 30.2 been
goods included in included in any Interim Certificate under which the Employer has effected payment, such
certificates materials and goods shall become the property of the Employer.
Responsibility for 14.3 The Contractor shall be responsible for any loss and/or damage to such materials and goods
materials and including materials and goods supplied by Nominated Sub-Contractors and Nominated
goods Suppliers.

Warranty of title 14.4 The Contractor shall be deemed to have warranted that he has title free from encumbrances
of goods and for such materials and goods upon inclusion of the value of such materials and goods in any
materials applications for payments under Clause 30.l. In the event that the Contractor is found to
have made a false warranty, any loss suffered by the Employer shall be made good by the
Contractor or shall be set-off under Clause 30.4.
15.0 Practical Completion And Defects Liability
Practical 15.1 The Works are Practically Completed when :

Completion
15. l(a) in the opinion of the Architect, the Employer can have full use.of the Works
for their intended purposes, notwithstanding that there may be works and
defects of a minor nature still to be executed and the Contractor has given to
the Architect a written undertaking to make good and to complete such works
and defects within a reasonable time specified by the Architect; and
15. \(b) other requirements expressly stated in the Contract Documents as a pre-
requisite for the issuance of the Certificate of Practical Completion have been
complied with.
Certificate of 15.2 When the whole of the Works are Practically Completed, the Contractor shall forthwith
Practical give written notice to that effect to the Architect who shall within fourteen (14) Days do
Completion either one of the following:
15.2(a) ifthe Architect is of the opinion that the Works are not Practically Completed
under Clause 15.l, the Architect shall give written notice to the Contractor
with copy extended to the Nominated Sub-Contractors stating the reasons for
his opinion; or
15.2(b) if the Architect is of the opinion that the Works are Practically Completed
under Clause l 5.1, the Architect shall issue the Certificate of Practical
Completion. The date of Practical Completion shall be:
l5.2(b)(i) the date of receipt of the Contractor's written undertaking to

make good and to complete works and defects ofa minor nature,
where there are such works and defects; or
15.2(b)(ii) the date ofreceipt of the Contractor's written notice, where there
are no works and defects ofa minor nature.
The Certificate of Practical Completion shall be issued to the Contractor with

copies extended to the Employer and Nominated Sub-Contractors. Upon the
issuance of Certificate of Practical Completion by the Architect, the Contractor
shall forthwith return Site possession to the Employer.
Contractor's 15 .3 Where applicable, the Contractor shall comply with his undertaking to attend to the works
failure to comply and defects of a minor nature under Clause 15. l (a) within the specified time. In the event
with undertaking the Contractor fails to comply with his undertaking, the Employer may without prejudice to
any other rights and remedies which he may possess under the Contract do any one of the
following:
15.3(a) grant the Contractor additional ex-gratia time to be specified by the Architect
to enable the Contractor to comply with his said undertaking;
I 5.3(b) employ and pay other Person to execute any work which may be necessary to
give effect to the Contractor's said undertaking. All costs incurred including
any loss and/or expense shall be set-off by the Employer under Clause 30.4; or
I 5.3(c) accept to leave all or any such works and defects of a minor nature in the
Works subject to an appropriate set-off under Clause 30.4.
PAM Conn·act 2006 (Without Quantities) 16

Schedule of 15.4 Any Defects in the Works which appear within the Defects Liability Period shall be
Defects specified by the Architect in a schedule of defects which he shall deliver to the Contractor
not later than fourteen (14) Days after the expiration of the Defects Liability Period. The
Contractor shall make good the Defects specified within twenty eight (28) Days after
receipt of the schedule of defects (or within such longer period as may be agreed in writing
by the Architect) at the Contractor's cost. lfthe Contractor fails to attend to the Defects, the
Employer may, without prejudice to any other rights and remedies which he may possess
under the Contract, employ and pay other Person to rectify the Defects and all costs
incurred shall be set-off by the Employer under Clause 30.4. If the Architect with the
consent of the Employer, instructs the Contractor to leave the Defects in the Works, then an
appropriate deduction for such Defects not made good by the Contractor shall be set-off by
the Employer under Clause 30.4.
Instruction to 15.5 Notwithstanding Clause 15.4, the Architect may at any time during the Defects Liability
make good Period issue an AI requiring any critical Defects which need urgent rectification to be made
Defects good within a reasonable time specified by the Architect at the Contractor's cost. If the
Contractor fails to attend to such Defects within the time specified by the Architect, the
Employer may employ and pay other Person to rectify such Defects and all costs incurred
shall be set-off by the Employer under Clause 30.4.
Certificate of 15.6 Upon completion of making good all Defects which may have been required to be made
Making Good good under Clause 15.4, the Contractor shall f011hwith give written notice to the Architect
Defects to that effect. The Architect shall within fourteen (14) Days do either one of the following:
15.6(a) ifthe Architect is of the opinion that there is no Defects or the Contractor has
made good all Defects, the Architect shall issue a Certificate of Making Good
Defects and the date of making good Defects shall be the date of receipt of the
Contractor's written notice. The Certificate of Making Good Defects shall be
issued to the Contractor and copies shall be extended to the Employer and
Nominated Sub-Contractors; or
15.6(b) ifthe Architect is of the opinion that the Defects have not been made good, the
Architect shall give written notice to the Contractor with copies to Nominated
Sub-Contractors stating the reasons for the non-issuance of the Certificate of
Making Good Defects.
16.0 Partial Possession By Employer
Possession of 16.1 lf at any time before Practical Completion of the Works, the Employer wishes to take
I•
Occupied Part possession and occupy any pa11 of the Works ("the Occupied Part") and the consent of the
with consent Contractor (whose consent shall not be unreasonably delayed or withheld) has been
obtained, 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. l(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 of
Partial Completion. The Ce11ificate of Partial Completion shall state the
Architect's estimate of the approximate total value of the Occupied Part and
for all purposes of Clause 16.0, the value so stated shall be deemed to be the
total value of the Occupied Part;
16. l(b) for the purposes of Clauses 15.4, 15.5 and 16.l(f), Practical Completion of the
Occupied Part shall be deemed to have occurred and the Defects Liability
Period in respect of the Occupied Part shall be deemed to have commenced on
the date which the Employer has taken possession;
16.l(c) the Liquidated Damages under Clause 22.1 shall be reduced by the ratio of the
estimated value of the Occupied Part to the Contract Sum;
16. l(d) upon the issuance of the Certificate of Partial Completion, the Architect shall
within fourteen (14) Days issue a cet1ificate to release half the amount of the
Retention Fund in the ratio of the estimated value of the Occupied Part to the
Contract Sum. The Contractor shall be entitled to payment within the Period of
Honouring Certificates. The amount of the Limit of Retention Fund shall then
be reduced by the same amount;
PAM Contract 2006 (Without QLiantities) 17

16.J(e) when in the opinion of the Architect all Defects in the Occupied Part which he
may have required to be made good under Clause 15.4 or l 5.5 have been made
good, he shall issue a Certificate of Making Good Defects under Clause 15.6
in respect of the Occupied Part; and
16.l(t) upon the issuance of the Ce1tificate of Making Good Defects of the Occupied
Part, the Architect shall within fourteen (14) Days issue a certificate for the
release of the remaining amount of the Retention Fund in respect of the
Occupied Part. The Contractor shall be entitled to payment within the Period
of Honouring Certificate.
Possession of 16.2 The Employer may, without prejudice to any other rights and remedies which he may
Occupied Part possess under the Contract, enter and occupy such part of the Works prior to the completion
without consent of the whole of the Works without the consent of the Contractor under Clause 16. l
provided 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; and
16.2(b) such entry and occupation of the Occupied Prut can be effected without any
unreasonable disturbance to the progress of the Contractor's remaining works.
Jn that event, the provisions of Clauses 16. l(a) to 16. l (t) shall apply.
Contractor to 16.3 If the Employer takes possession of the Occupied Prut under Clause 16. l or 16.2, the
remove Contractor shall upon the written instruction of the Architect remove his site facilities,
equipment construction plant or equipment, materials and goods from the Occupied Part.
17.0 Assignment And Sub-Contracting
Assignment by 17.l Other than assigning his rights, interests or benefits under the Contract to his financial
Employer institution, the Employer shall not without the written consent of the Contractor (such
consent shall not be unreasonably delayed or withheld) assign the same to other parties.
Assignment by 17.2 Other than assigning any payment due or to become due under the Contract to his financial
Contractor institution, the Contractor shall not without the written consent of the Employer (such
consent shall be at the sole discretion of the Employer) assign his rights, interests or
benefits under the Contract to other parties.
No sub- 17.3 Except where otherwise provided by the Contract, the Contractor shall not wholly or
contracting substantially sub-contract the Works. Where the Contractor sub-contracts labour only of
craftsmen, skilled or semi-skilled workmen to carry out any poition of the Works, this shall
not constitute sub-contracting within the meaning of this clause.
18.0 Injury To Person Or Loss And/Or Damage Of Property And Indemnity To Employer
Contractor's 18.1 The Contractor shall be liable for and shall indemnify the Employer against any damage,
indemnity expense, liability, loss, claim or proceedings whatsoever whether arising at common Jaw or
against injury or by statute in respect of personal injury to or death of any person ru·ising out of or in the
death course of or caused by the carrying out of the Works and provided always that the same is
due to any negligence, omission, default and/or breach of contract by the Contractor or of
any Person for whom the Contractor is responsible.
indemnity expense, liability, loss, claim or proceedings due to Joss and/or damage of any kind
against loss whatsoever to any prope1ty real or personal, including the Works and any other property of
and/or damage the Employer, in so far as such Joss and/or damage arises out of or in the course of or by
reason of the execution of the Works and provided always that the same is due to any
negligence, omission, default and/or breach of contract by the Contractor or of any Person
for whom the Contractor is responsible.
indemnity expense, liability, loss, claim or proceedings whatsoever arising out of claims by any and
against claims by every workman employed in and for the execution of the Works and for payment of
workmen compensation under or by vi1tue of the Workmen's Compensation Act 1952 and the
Employees' Social Security Act I 969.

Indemnities not 18.4 The indemnities given by the Contractor under Clauses 18. l to 18.3 shall not be defeated or
to be defeated reduced by reason of any negligence or omission of the Employer, Architect, Consultant or
other authorised representatives in failing to supervise or control the Contractor's site
operation or methods of working or temporary work or to detect or prevent or remedy
defective work or to ensure proper performance of any obi igation of the Contractor under
the Contract.
19.0 Insurance Against Injury To Person And Loss And/Or Damage Of Property
Contractor to 19.1 Without prejudice to his liability to indemnify the Employer under Clause 18.0, the
insure against Contractor shall, as a condition precedent to the commencement of any work under the
injury to Person Contract, take out and maintain in the joint names of the Employer, Contractor, sub-
and loss and/or contractor and all interested parties in respect of personal injuries or death and injury or loss
damage of and/or damage of property real or personal arising out of or in the course of or by reason of
property the execution of the Works and whether or not such injury, death, loss and/or damage is
caused 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. Such
insurance policy shall provide cover in respect of third party liability for personal injury or
death and damage to property for the amounts stated in the Appendix. If the Contractor
having regard to his indemnity to the Employer under Clause 18.0 desires to increase any of
the insurance coverage, he shall do so and allow for any additional cost. The insurance
policy shall include the following endorsements:
19. l(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 are
separately insured for their respective rights and interest;
19.l(b) an endorsement to the effect that the Architect, Consultant and any other
professional consultants (as applicable) and their employees and
representatives, Site Staff, employees and representatives of the Employer, are
deemed to be third parties;
19. l(c) an endorsement for waiver of all expressed or implied rights of subrogation or
recoveries against the insured; and
19.l(d) an endorsement for automatic extension or renewal of the insurance up to the

issuance of the Cettificate of Making Good Defects.
Employees' social 19.2 Without prejudice to his liability to indemnify the Employer under Clause 18.0, the
security scheme Contractor shall register or cause to register all local workmen employed on the Works and
for local who are subject to registration under the Employees' Social Security Scheme (hereinafter
workmen referred to as "SOCSO") in accordance with the Employees' Social Security Act 1969 and
shall cause all sub-contractors to comply with the same provisions. The Contractor shall
make payment of all contributions and cause all sub-contractors to make similar payments
from time to time when the same ought to be paid.
Insurance for 19.3 Without prejudice to his liability to indemnify the Employer under Clause 18.0, the
local workmen Contractor shall, as a condition precedent to the commencement of any work under the
not subject to Contract, take out and maintain in the joint names of the Employer and Contractor and shall
socso cause all sub-contractors to take out and maintain a similar insurance policy for local
workmen who are not subject to registration under SOCSO. Such insurance policy shall be
effected and maintained as necessary to cover all liabilities including common law liability
in respect of any claim which may arise in the course of the execution of the Works. The
insurance policy shall be valid up to the Completion Date and the extended maintenance
cover shall be for the Defects Liability Period plus a further three (3) Months. If the
Contractor is unable to complete by the Completion Date or complete making good the
Defects within the insured period, he shall ensure that the insurance is accordingly extended
for the same period of delay. The Contractor shall effect the said extension of the insurance
cover not less than one (I) Month before the expiry of the insurance cu1Tently in force.

Workmen's 19.4 Without prejudice to his liability to indemnify the Employer under Clause 18.0, the
compensation Contractor shall, as a condition precedent to the commencement of any work under the
insurance for Contract, take out and maintain in the name of the Contractor and shall cause all sub-
foreign workers contractors to take out and maintain a similar insurance policy for all foreign workers
employed on the Works as required by the Workmen's Compensation Act 1952 and
Workmen's Compensation (Foreign Worker's Compensation Scheme) (fnsurance) Order
1998. Such insurance policy shall be effected and maintained as necessary to cover all
liabilities including common law liability in respect of any claim which may arise in the
course of the execution of the Works. The insurance policy shall be valid up to the
Completion Date and the extended maintenance cover shall be for the Defects Liability
Period plus a further three (3) Months. If the Contractor is unable to complete by the
Completion Date or complete making good the Defects within the insured pe~iod, he shall
ensure that the insurance is accordingly extended for the same period of delay. The
Contractor shall effect the said extension of the insurance cover not less than one (1) Month
before the expiry of the insurance currently in force. ..
Placing of 19.5 The insurance referred to in Clauses 19. l, 19.2, 19.3 and 19.4 shall be placed with licensed
insurance with insurance companies approved by the Employer, and the Contractor shall deposit with the
licensed Employer the policy and the receipt of premiums paid with copies extended to the Architect
insurance and Consultant. If the Contractor makes default in insuring or continuing to insure as
companies aforesaid, the Employer may (but is not obligated to) insure against any risks in respect of
which the default has occun-ed and the amount of premiums and any other cost incun-ed or
paid by the Employer shall be set-off by the Employer under Clause 30.4.
**20.A Insurance Of New Buildings/Works- By The Contractor
Contractor's 20.A. l Without prejudice to his liability to indemnify the Employer under Clause 18.0, the
risks- new Contractor shall, as a condition precedent to the commencement of any work under the
buildings/ works 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 the
Contract Sum, plus the sum to cover professional fees for reinstatement 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 have endorsements to cover against loss and/or
damage by fire, lightning, explosion, earthquake, volcanism, tsunami, storm, cyclone,
flood, inundation, landslide, theft, ground subsidence, existing underground cables and/or
pipes or other underground facilities, bursting or overflowing of water tanks, apparatus or
pipes, aircraft and other aerial devices or articles dropped therefrom, strike, riot and civil
commotion, malicious damage, trespass, cessation of work whether total or partial,
vibration and weakening of support. Unless otherwise insured by the Contractor, the CAR
Insurance policy will exclude cover for construction plant, tools and equipment owned or
hired by the Contractor or any sub-contractors. The Contractor shall keep such Works so
insured notwithstanding any arrangement for Sectional Completion under Clause 21.0 or
Partial Possession under Clause 16.0. The insurance policy shall be valid up to the
Completion Date and the extended maintenance cover shall be for the Defects Liability
Period plus a further three (3) Months. ff the Contractor is unable to complete by the
Completion Date or complete making good the Defects within the insured period, he shall
ensure that the insurance is accordingly extended for the same period of delay. The
Contractor shall effect the said extension of the insurance cover not less than one ( 1) Month
before the expiry of the insurance cun-ently in force. Where deductibles are specified in the
Appendix or in the insurance policy, the Contractor shall bear the amount of all deductibles.
The insurance policy shall also include the endorsement under Clauses I 9. I (a) to (d).
Additional risks 20.A.2 Any additional risks or endorsements in addition to those stated in Clause 20.A. 1 which
to be covered may be required to be covered under the CAR Insurance policy shall be specified in the
under the Contract Bills. If the Contractor having regard to his indemnity to the Employer under
insurance Clause I 8.0, desires to have any additional endorsements to the insurance in addition to the
risks specified, he shall do so at his own cost.
Placing of 20.A.3 The insurance referred to in Clause 20.A shall be placed with licensed insurance companies
insurance with approved by the Employer, and the Contractor shall deposit with the Employer the policy
licensed and the receipt of premiums paid. If the Contractor makes default in insuring or continuing
insurance to insure as aforesaid, the Employer may insure against any risks in respect of which the
companies default has occurred and the amount of premiums and any other cost incurred or paid by the
Employer shall be set-off by the Employer under Clause 30.4.
'*Strike out Clause 20.A. 20.8 or 20.C as appropriate

Application of 20.A.4 Upon the occun-ence of any loss and/or damage to the Works or unfixed materials and
insurance claim goods prior to Practical Completion of the Works from any cause whatsoever, and
proceeds notwithstanding that settlement of any insurance claim has not been completed, the
Contractor shall with due diligence restore, replace or repair the same, remove and dispose
of any debris and proceed with the carrying out and completion of the Works. All money if
and when received from the insurance under this clause shall be paid in the first place to the
Employer. The Employer shall retain the amount paid by the insurance companies in
respect of professional fees for reinstatement and pay the balance to the Contractor and/or
Nominated Sub-Contractors by installments under separate certificates to be issued by the
Architect. The Contractor shall not be entitled to any additional payments in respect of the
restoration of the damaged work and replacement or repair of any unfixed materials and
goods and the removal and disposal of debris other than the monies received under the
aforesaid insurance.
**20.B Insurance Of New Buildings/Works - By The Employer
Insurance by 20.B.l Without prejudice to the Contractor's liability to indemnify the Employer under Clause
Employer 18.0, the Employer 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-
contractors and all interested parties a CAR Insurance policy for a value not less than the
Contract Sum, plus the sum to cover professional fees for reinstatement 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 have endorsements to cover against loss and/or
damage by fire, lightning, explosion, earthquake, volcanism, tsunami, storm, cyclone,
flood, inundation, landslide, ground subsidence, existing underground cables and/or pipes
or other underground facilities, bursting or overflowing of water tanks, apparatus or pipes,
aircraft and other aerial devices or articles dropped therefrom, strike, riot and civil
commotion, malicious damage, trespass, cessation of work whether total or partial,
vibration and weakening of support. Unless separately required by the Contractor at his
own cost, the CAR Insurance policy will exclude cover for construction plant, tools and
equipment owned or hired by the Contractor or any sub-contractor. The Employer shall
keep such Works so insured notwithstanding any arrangement for Sectional Completion
under Clause 21.0 or Partial Possession under Clause 16.0. The insurance policy shall be
valid up to the Completion Date and the extended maintenance cover shall be for the
Defects Liability Period plus a further three (3) Months. If the Contractor is unable to
complete by the Completion Date or complete making good the Defects within the insured
period, the Employer shall ensure that the insurance is accordingly extended for the same
period of delay. The Employer shall effect the said extension of the insurance cover not less
than one (I) Month before the expiry of the insurance currently in force . Where deductibles
are specified in the Appendix 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. l(a) to (d).
Additional risks 20.B.2 Any additional risks or endorsements which vary from those stated in Clause 20.B. l shall
required by the be specified in the Contract Bills, and the Employer shall ensure that the risks specified in
Contractor the Contract Bills are covered by the CAR Insurance policy. lfthe Contractor having regard
to his indemnity to the Employer under Clause 18.0, desires to have further additional
endorsements to the insurance in addition to the risks specified, he shall do so at his own
cost.
Maintenance of 20.B.3 The Employer shall maintain a proper insurance policy against the aforesaid risks and such
policy policy and receipt for the last premium paid for its renewal shall, upon the request of the
Contractor, be produced for his inspection.
Failure of 20.B.4 If the Employer at any time upon the request of the Contractor fails to produce any receipt
Employer to showing such a policy as aforesaid to be effective, then the Contractor may take out and
insure maintain in the joint names of the Employer, Contractor, sub-contractors and all interested
parties, the CAR Insurance policy as required under Clauses 20.B. l and 20.8.2 . The
Contractor upon production of the receipt of any premium paid by him shall be entitled to
have the amount added to the Contract Sum.
**Strike out Clause 20.A. 20.B or 20.C as appropriate
PAM Contract 2006 (Without Quantiti es) 21

Application of 20.B.5 Upon the occurrence of any loss and/or damage to the Works or unfixed materials and
insurance claim goods prior to Practical Completion of the Works from any cause whatsoever
Contractor shall with due diligence restore, replace or repair the same, remove and dispose
of any debris and proceed with the carrying out and completion of the Works. All money if
and when received from the insurance under this clause shall be paid in the first place to the
Employer. The Employer shall retain the amount paid by the insurance companies in
respect of professional fees for reinstatement and pay the balance to the Contractor and/or
Nominated Sub-Contractors by installments under separate certificates issued by the
Architect. The Contractor shall not be entitled to any additional payments in respect of the
restoration of the damaged work and replacement or repair of any unfixed rpaterials and
goods and the removal and disposal of debris other than the monies received under the
aforesaid insurance.
**20.C Insurance Of Existing Building Or Extension - By The Employer .

Employer's risks 20.C.1 Without prejudice to the Contractor's liability to indemnify the Employer under Clause
- existing 18.0, the Employer shall, as a condition precedent to the commencement of any work under
building or the Contract, take out and maintain in the joint names of the Employer, Contractor, sub-
extension contractors and all interested parties a CAR Insurance policy for a value not less than the
Contract Sum, plus the value of the existing structure together with all the contents owned
by the Employer or for which he is responsible, the sum to cover professional fees for
reinstatement 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 have
endorsements to cover against loss and/or damage by fire, lightning, explosion, earthquake,
volcanism, tsunami, storm, cyclone, flood, inundation, landslide, ground subsidence,
existing underground cables and/or pipes or other underground facilities, bursting or
overflowing of water tanks, apparatus or pipes, aircraft and other aerial devices or articles
dropped therefrom, strike, riot and civil commotion, malicious damage, trespass, cessation
of work whether total or partial, vibration and weakening of support. Unless separately
required by the Contractor at his own cost, the CAR Insurance policy will exclude cover for
construction plant, tools and equipment owned or hired by the Contractor or any sub-
contractor. The Employer shall keep such Works so insured notwithstanding any
arrangement for Sectional Completion under Clause 21.0 or Partial Possession under
Clause l 6.0. The insurance policy shall be valid up to the Completion Date and the
extended maintenance cover shall be for the Defects Liability Period plus a further three (3)
Months. If the Contractor is unable to complete by the Completion Date or complete
making good the Defects within the insured period, the Employer shall ensure that the
insurance is accordingly extended for the same period of delay. The Employer shall effect
the said extension of the insurance cover not less than one (I) Month before the expiry of
the insurance currently in force. Where deductibles are specified in the Appendix or in the
insurance policy, the Contractor shall bear the amount of all deductibles. The insurance
pol icy shall also include the endorsement under Clauses 19 .1 (a) to (d).
Additional risks 20.C.2 Any additional risks or endorsements which vary from those stated in Clause 20.C.1 shall
required by be specified in the Contract Bills, and the Employer shall ensure that the risks specified in
Contractor the Contract Bills are covered by the CAR Insurance policy. If the Contractor having regard
to his indemnity to the Employer under Clause 18.0, desires to have further additional
endorsements to the insurance in addition to the risk specified, he shall do so at his own
cost.
Maintenance of 20.C.3 The Employer shall maintain a proper insurance policy against the aforesaid risks and such
insurance by policy and receipt for the last premium paid for its renewal shall, upon the request of the
Employer Contractor, be produced for his inspection.
Failure of 20.C.4 Ifthe Employer at any time upon the request of the Contractor fails to produce any receipt
Employer to showing as aforesaid to be effective, then the Contractor may take out and maintain in the
insure joint names of the Employer, Contractor, sub-contractors and all interested parties, the
CAR Insurance policy as required under Clauses 20.C.l and 20.C.2. The Contractor upon
production of the receipt of any premium paid by him shall be entitled to have the amount
added to the Contract Sum.
**Strike out Clause 20.A, 20.B or 20. C as appropriale

Application of 20.C.5 Upon the occurrence of any loss and/or damage to the Works or unfixed materials and
insurance claim goods prior to Practical Completion of the Works from any cause whatsoever
Contractor shall with due diligence restore, replace or repa ir the same, remove and dispose
of any debri s and proceed with the carrying out and completion of the Works including the
reinstatement of the existing structure. All money if and when received from the insurance
under this clause shall be paid in the first place to the Employer. The Employer shall retain
the amount paid by the insurance companies in respect of professional fees for
reinstatement and pay the balance to the Contractor and/or Nominated Sub-Contractors by
installments under separate certificates issued by the Architect. The Contractor shall not be
entitled to any additional payments in respect of the restoration of the daniaged work and
replacement or repair of any unfixed materials and goods and the removal and disposal of
debris other than the monies received under the aforesaid insurance.
21.0 Date Of Commencement, Postponement And Completion Date
Commencement 21.1 On the Date of Commencement, possession of the Site shall be given to the Contractor who
and Completion shall commence the execution of the Works and regularly and diligently proceed with and
complete the same on or before the Completion Date. In the event there is a delay by the
Employer in giving possession of the Site to the Contractor, the Architect shall grant an
extension of time under Clause 23 .8(t). Provided always that the delay in giving possession
of the Site does not exceed the Period of Delay stated in the Appendix, the Contractor shall
not be entitled to dete1mine his own employment under the Contract.
Sectional 21.2 Where there are different Dates of Commencement for sections of the Works, these shall be
Commencement stated in the Appendix.
Dates
Sectional 21.3 Where there are different Completion Dates for sections of the Works stated in the Contract
Completion Documents, the Architect shall issue a Certificate of Sectional Completion when the
Dates sections of the Works are Practically Completed. The provisions in the Contract in regard
to Practical Completion and the Defects Liability Period under Clause 15.0, extension of
time under Clause 23.0, Liquidated Damages under Clause 22.0 and release of Retention
Fund under Clause 30.6 shall apply with necessary changes as if each such section was a
separate and distinct contract.
Postponement or 21.4 The Architect may issue an Al in regard to the postponement or suspension of all or any
suspension of the part of the Works to be executed under the Contract for a continuous period not exceeding
Works the Period of Delay stated in the Appendix. If the insurance is covered by the Contractor
under Clauses 19.0 and 20.A, the Contractor shall ensure full insurance coverage for the
whole period of postponement or suspension or if the insurance is covered by the Employer
under Clause 20.B or 20.C, the Employer shall ensure similar insurance coverage.
22.0 Damages For Non-Completion
Liquidated 22.1 If the Contractor fails to complete the Works by the Completion Date, and the Architect is
Damages and of the opinion that the same ought reasonably so to have been completed, the Architect
Certificate of shall issue a Certificate of Non-Completion. Upon the issuance of the Certificate of Non-
Non-Completion Completion, the Contractor shall pay or allow to the Employer a sum calculated at the rate
stated in the Appendix as Liquidated Damages for the period from the Completion Date to
the date of Practical Completion. The Employer may recover such sum as a debt or may
deduct such sum from any monies due or to become due to the Contractor under the
Contract or the Employer may recover such sum from the Performance Bond. The
Employer shall inform the Contractor in writing of such deduction or such debt due from
the Contractor. The imposition of Liquidated Damages by the Employer shall not be taken
into account by the Architect in the issuance of payment certificates and Final Certificate,
and is not subject to the set-off procedures under Clause 30.4 and adjudication.
Agreed 22 .2 The Liquidated Damages stated in the Appendix is a genuine pre-estimate of the loss and/or
Liquidated damage which the Employer will suffer in the event that the Contractor is in breach of
Damages amount Clauses 21 .0 and 22.0. The pa1iies agree that by entering into the Contract, the Contractor
shall pay to the Employer the said amount, if the same becomes due without the need for
the Employer to prove his loss and/or damage unless the contrary is proven by the
Contractor.
PAM Contrac t 2006 (Withou t Quantities) 23

Certificate of 22.3 In the event the Architect issues a Certificate of Extension of Time under Clauses 23.4,
Non-Completion 23 .9 and 23.10 which has the effect of fixing a Completion Date which is later than the date
revoked by stated in a Certificate of Non-Completion previously issued, such certificate shall have the
subsequent effect of revoking the Certificate of Non-Completion earlier issued. The Employer shall
Certificate of then revise the amount of Liquidated Damages he is entitled to retain. In the event the
Extension of amount of Liquidated Damages retained exceeds the amount the Employer is entitled to
Time retain, he shall repay the surplus amount to the Contractor within the Period of Honouring
Ce11ificates from the date of the latest Ce11ificate of Extension of Time. If the Works is not
completed by the Completion Date stated in such Certificate of Extension of Time, the
Architect shall issue a further Ce11ificate ofNon-Completion.
23.0 Extension Of Time
Submission of 23.1 If the Contractor is of the opinion that the completion of the Works is or will be delayed
notice and beyond the Completion Date by any of the Relevant Events stated in Clause 23.8, he may
particulars for apply for an extension of time provided always that:
extension of time
23 .1(a) the Contractor shall give written notice to the Architect his intention to claim
for such extension of time together with an initial estimate of the extension of
time he may require supported with all particulars ofthe cause of delay. Such
notice must be given within twenty eight (28) Days from the date of the AI,
CAI or the commencement of the Relevant Event, whichever is earlier. The
giving of such written notice shall be a condition precedent to an entitlement
of extension of time; and
23 . l(b) within twenty eight (28) Days of the end of the cause of delay, the Contractor
shall send to the Architect his final claim for extension of time duly supported
with all particulars to enable the Architect to assess any extension of time to be
granted. If the Contractor fails to submit such particulars within the stated time
(or within such longer period as may be agreed in writing by the Architect), it
shall be deemed that the Contractor has assessed that such Relevant Event will
not delay the completion of the Works beyond the Completion Date.
Delay by 23 .2 Where the particulars of the written notice given under Clause 23 .1 include references to
Nominated Sub- Nominated Sub-Contractors, the Contractor shall forthwith send a copy of such written
contractor notice and particulars to the Nominated Sub-Contractor concerned.
Insufficient 23 .3 If the Architect is of the opinion that the pai1iculars submitted by the Contractor are
information insufficient to enable him to decide on the application for extension of time, the Architect
shall within twenty eight (28) Days from receipt of the Contractor's particulars under
Clause 23. I (b), inform him of any deficiency in his submission and may require the
Contractor to provide such fm1her pa11iculars within a further twenty eight (28) Days or
within such period of time as may be stated by the Architect in writing.
Certificate of 23.4 When the Contractor has submitted sufficient particulars for the Architect's consideration,
Extension of the Architect shall subject to Clauses 23.5, 23.6 and 23.8, consider the Contractor's
Time submission and shall either reject the Contractor's application or issue a Certificate of
Extension of Time within six (6) Weeks from the receipt of sufficient particulars. The
Architect may issue the written notice of rejection or the Certificate of Extension of Time
before or after the Completion Date.
Other 23 .5 In assessing the extension of time, the Architect may take into account the following:
consideration for
extension of time 23 .S(a) the effect or extent of any work omitted under the Contract, provided always
that the Architect shall not fix a Completion Date earlier than the Completion
Date stated in the Appendix; and
23.S(b) any other Relevant Events which in the Architect's opinion will have an effect
on the Contractor's entitlement to an extension of time.
Contractor to 23.6 The Contractor shall constantly use his best endeavour to prevent or reduce delay in the
prevent delay progress of the Works, and to do all that may reasonably be required to the satisfaction of
the Architect to prevent and reduce delay or further delay in the completion of the Works
beyond the Completion Date.
Notification to 23.7 The Architect shall notify every Nominated Sub-Contractor in writing of each decision of
Nominated Sub- the Architect when fixing a later Completion Date.
contractors

Relevant Events 23.8 The following are the Relevant Events referred to in Clause 23.0:
23.8(a) Force Majeure;
23.8(b) exceptionally inclement weather;
23.8(c) loss and/or damage occasioned by one or more of the contingencies referred to
in Clause 20.A, 20.B or 20.C as the case may be, provided always that the
same is not due to any negligence, omission, default and/or breach of contract
by the Contractor and/or Nominated Sub-Contractors;
23.8(d) civil commotion, strike or lockout affecting any of the trades employed upon
the Works or any of the trades engaged in the preparation, manufacture or
transpotiation of any materials and goods required for the Works;
23.8(e) the Contractor not having received in due time the necessary Al (including
those for or in regard to the expenditure of P.C. Sums and Provisional Sums,
further drawings, details, levels and any other information) for which he had
specifically applied in writing to the Architect. The Contractor's application
must be submitted to the Architect in sufficient time before the
commencement of construction of the affected works, to enable the Architect
to issue the necessary AI within a period which would not materially affect the
progress of the affected works, having regard to the Completion Date.
Provided always that the AI was not required as a result of any negligence,
omission, default and/or breach of contract by the Contractor and/or
Nominated Sub-Contractors;
23.8(f) delay by the Employer in giving possession of the Site or any section of the
Site in accordance with Clauses 2 l. l and 21.2;
23.8(g) compliance with AI issued by the Architect under Clauses 1.4, 11.2 and 21 .4;
23.8(h) delay on the part of Nominated Sub-Contractors for the reasons set out in
Clauses 21.4(a) to 21.4(w) of the PAM Sub-Contract 2006;
23.8(i) re-nomination of Nominated Sub-Contractors as set out in Clause 27. l l;
23.80) delay on the part of craftsmen, tradesmen or other contractors employed or

engaged by the Employer in executing work not forming part of the Contract
or the failure to execute such work;
23.8(k) delay or failure in the supply of materials and goods which the Employer had
agreed to supply for the Works;
23.8(1) the opening up for inspection of any work covered up, testing any materials,
goods or executed work in accordance with Clause 6.3, unless the inspection
or test:
23.8(l)(i) is provided for in the Contract Bills;
23.8(1)(ii) shows that the works, materials and goods were not in
accordance with the Contract; or
23.8(1)(iii) is required by the Architect in consequence of some prior

negligence, omission, default and/or breach of contract by the
Contractor;
23.8(m) any act of prevention or breach of contract by the Employer;
23.8(n) war damage under Clause 32.1;
23.8(0) compliance with AI issued in connection with the discovery of antiquities

under Clause 33. l;
23.8(p) compliance with any changes to any law, regulations, by-law or terms and
conditions ofany Appropriate Authority and Service Provider;

23 .8(q) delay caused by any Appropriate Authority and Service Provider in carrying
out, or failure to cany out their work which affects the Contractor' s work
progress, provided always that such delay is not due to any negligence,
23.8(r) appointment ofa replacement Person under Articles 3, 4, 5 and 6;
23.8(s) compliance with Al issued in connection with disputes with neighbouring

property owners provided always that such dispute is not caused by
negligence, omission, default and/or breach of contract by the Contractor
and/or Nominated Sub-Contractors; •
23.8(t) delay as a result of the execution of work for which a Provisional Quantity is
included in the Contract Bills which in the opinion of the Architect is not a
reasonably accurate forecast of the quantity of work required;
23.8(u) failure of the Employer to give in due time entry to or exit from the Site or any
part through or over any land, by way of passage adjoining or connected to the
Site and in possession or control of the Employer;
23.8(v) suspension by the Contractor of his obligations under Clauses 30.7 and 30.8;
23 .8(w) suspension of the whole or part of the Works by order of an Appropriate

Authority provided the same is not due to any negligence, omission, default
and/or breach of contract by the Contractor and/or Nominated Sub-
Contractors; and
23.8(x) any other ground for extension of time expressly stated in the Contract.
Extension of time 23.9 Where a Relevant Event occurs after the issuance of the Certificate of Non-Completion, the
after the issuance Architect shall grant an extension of time. The extension of time granted shall be added to
of Certificate of the Completion Date of the Works or any section of the Works.
Non-Completion
Architect's 23.10 The Architect may (but not obliged to) within twelve (12) Weeks after the date of Practical
review of Completion review and fix a Completion Date later than that previously fixed, if in his
extension of time opinion the fixing of such later Completion Date is fair and reasonable having regard to any
after Practical of the Relevant Events, whether upon reviewing a previous decision or otherwise and
Completion whether or not a Relevant Event has been specifically notified by the Contractor under
Clause 23.1. No such final review of extension of time shall result in a decrease in any
extension of time already granted by the Architect. In the event the fixing of such later
Completion Date affects the amount of Liquidated Damages the Employer is entitled to
retain, he shall repay any surplus amount to the Contractor within the Period of Honouring
Certificates.
24.0 Loss And/Or Expense Caused By Matters Affecting The Regular Progress Of The
Works
Loss and/or 24.1 Where the regular progress of the Works or any section of the Works has been or is likely
expense caused to be materially affected by any of the matters expressly referred to in Clause 24.3, and the
by matters Contractor has incurred or is likely to incur loss and/or expense which could not be
affecting the reimbursed by a payment made under any other provision in the Contract, the Contractor
regular progress may make a claim for such loss and/or expense provided always that:
of the Works
24.l(a) the Contractor shall give written notice to the Architect of his intention to
claim for such loss and/or expense together with an initial estimate of his clai.m
duly supported with all necessary calculations. Such notice must be given
within twenty eight (28) Days from the date of the Al, CAI or the sta11 of the
occurrence of the matters referred to in Clause 24.3, whichever is the earlier.
The giving of such written notice shall be a condition precedent to any
entitlement to loss and/or expense that the Contractor may have under the
Contract and/or Common Law; and

24. l(b) within twenty eight (28) Days after the matters referred to in Clause 24.3 have
ended, the Contractor shall send to the Architect, complete particulars of his
claim for loss and/or expense together with all necessary calculations to
substantiate his claims. If the Contractor fails to submit the required particulars
within the stated time (or within such longer period as may be agreed ·in
writing by the Architect), it shall be deemed that the Contractor has waived his
rights for loss and/or expense.
Access to 24.2 The Contractor shall keep contemporaneous records of all his claims for loss and/or
Contractor's expense and shall submit all particulars to the Architect. The Architect and Consultant shall
books and have access to all books, documents, reports, papers or records in the possession, custody or
documents control of the Contractor that are material to the claim and the Contractor shall provide free
of charge, a copy each to the Architect and Consultant when requested. All such documents
shall remain available in accordance with this clause until all claims have been resolved.
The Contractor shall use his best endeavour to ensure that all such documents in the
possession, custody or control of sub-contractors and/or suppliers that are material to the
claim are similarly available.
Matters 24.3 The following are the matters referred to in Clause 24.1:
materially
affecting the 24.3(a) the Contractor not having received in due time the necessary AI (including
regular progress those for or in regard to the expenditure of P.C. Sums and Provisional Sums,
of the Works further drawings, details, levels and any other infonnation) for which he had
specifically applied in writing to the Architect. The Contractor's application
must be submitted to the Architect in sufficient time before the
commencement of construction of the affected works, to enable the Architect
to issue the necessary Al within a period which would not materially affect the
progress of the affected works, having regard to the Completion Date.
Provided always that the AI was not required as a result of any negligence,
24.3(b) delay by the Employer in giving possession of the Site or any section of the
Site in accordance with Clauses 21.1 and 21.2;
24.3(c) compliance with a written instruction issued by the Architect in regard to the
postponement or suspension of all or any part of the Works to be executed
under Clause 21.4;
24.3(d) delay on the part of craftsmen, tradesmen or other contractors employed or

engaged by the Employer in executing work not forming part of the Contract
or the failure to execute such work;
24.3(e) delay or failure in the supply of materials and goods which the Employer had
agreed to supply for the Works;
24.3(f) the opening up for inspection of any work covered up, testing any materials
and goods or executed work in accordance with Clause 6.3, unless the
inspection or test showed that the works, materials and goods were not in
accordance with the Contract or was in the opinion of the Architect required in
consequence of some prior negligence, omission, default and/or breach of
contract by the Contractor;
24.3(g) any act of prevention or breach of contract by the Employer;
24.3(h) delay as a result of a compliance with AI issued in connection with the

discovery of antiquities under Clause 33. l;
24.3(i) appointment of a replacement Person under Articles 3, 4, 5 and 6;
24.3G) compliance with a written instruction issued by the Architect in connection

with disputes with neighbouring property owners provided always that the
same is not caused by negligence, omission, default and/or breach of contract
by the Contractor and/or Nominated Sub-Contractors;
24.3(k) by reason of the execution of work for which a Provisional Quantity is

included in the Contract Bills which in the opinion of the Architect is not a
reasonably accurate forecast of the quantity of work required;

24.3(1) failure of the Employer to give in due time entry to or exit from the Site or any
part through or over any land, by way of passage adjoining or connected to the
Site and in the possession or control of the Employer;
24.3(m) suspension by the Contractor of his obligations under Clauses 30.7 and 30.8;
and
24.3(n) suspension of the whole or part of the Works by order of an Appropriate

Authority provided always that the same is due to negligence or omission on
the part of the Employer, Architect or Consultant.
T
Loss and/or 24.4 Subject to the Contractor complying with Clause 24.1, the Architect shall ascertain the
expense to be amount of such loss and/or expense. Any amount so ascertained from time to time for such
included in loss and/or expense shall be added to the Contract Sum, and if an Interim Certificate is
certificate issued after the date of ascertainment, such amount shaJJ be included in the certificate.
25.0 Determination Of Contractor's Employment By Employer
Defaults by 25.1 The Employer may determine the employment of the Contractor if the Contractor defaults
Contractor in any of the following:
25. l(a) if without reasonable cause, he fails to commence the Works in accordance
with the Contract;
25. l(b) if without reasonable cause, he wholly or substantially suspends the carrying
out of the Works before completion;
25 . I (c) if he fails to proceed regularly and/or diligently with the Works;
25. l(d) ifhe persistently refuses or neglects to comply with an Al;
25. l(e) ifhe fails to comply with the provisions in Clause 17.0; or
25 .1(f) ifhe has abandoned the Works.
Procedure for 25.2 Upon the occurrence of any default under Clause 25 .1, and if the Employer decides to
determination determine the Contractor's employment, the Employer or Architect on his behalf shall give
to the Contractor a written notice delivered by hand or by registered post specifying the
default. If the Contractor shall continue with such default for fourteen (14) Days from the
receipt of such written notice, then the Employer may, within ten (I 0) Days from the expiry
of the said fourteen (14) Days, by a further written notice delivered by hand or by registered
post, forthwith determine the employment of the Contractor under the Contract. Provided
always that such notice shall not be given unreasonably or vexatiously.
Contractor's 25.3 In the event of the Contractor becoming insolvent or making a composition or arrangement
insolvency with his creditors, or have a winding up order made, or (except for purposes of
reconstruction or amalgamation) a resolution for voluntary winding up, or having a
liquidator or receiver or manager of his business or undertaking duly appointed, or having
possession taken by or on behalf of the holders of any debentures secured by a floating
charge, or of any property comprised in or subject to the floating charge, the employment
of the Contractor shall be forthwith automatically determined.
Rights and duties 25.4 In the event that the employment of the Contractor is determined under Clause 25.1 or 25.3,
of Employer and the following shall be the respective rights and duties of the Employer and Contractor:
Contractor
25.4(a) the Contractor shall vacate the Site and return possession of the Site to the
Employer who may employ and pay other Person to carry out and complete
the Works and to make good any defects. Such Person may enter upon the
Works and use all temporary buildings, construction plant, tools, materials and
goods intended for, delivered to and placed on or adjacent to the Site (except
those construction plant that is on hire by the Contractor) and may purchase all
materials and goods necessary for the carrying out and the completion of the
Works. The Contractor if so required by the Employer or by the Architect on
behalf of the Employer shall within twenty one (21) Days of the date of
determinati9n, assign to the Employer the benefit of any agreement for the
continuation of the hire of construction plant and equipment already on the
Site;

25.4(b) the Contractor if so required by the Employer or Architect, shall within twenty
one (21) Days of the date of detennination, assign to the Employer without
payment the benefit of any agreement for tbe supply of materials, goods and/or
for the execution of any work for the purposes of the Contract to the extent
that the same is assignable;
25.4(c) the Contractor when instmcted in writing by the Architect shall remove from
the Works any temporary buildings, construction plant, tools, equipment,
materials and goods belonging to or hired by him. If within a reasonable time
after any such instruction has been issued to the Contractor, and he has not
complied therewith, then the Employer may without liability remove and sell
any such property belonging to the Contractor except those that are on hire and
hold the proceeds less all costs incurred to the credit of the Contractor; and
25.4(d) the Contractor shall allow or pay to the Employer all cost incurred to complete
the Works including all loss and/or expense suffered by the Employer. Until
after the completion of the Works under Clause 25.4(a), the Employer shall
not be bound by any provision in the Contract to make any further payment to
the Contractor, including payments which have been certified but not yet paid
when the employment of the Contractor was determined. Upon completion of
the Works, an account taking into consideration the value of works carried out
by the Contractor and all cost incurred by the Employer to complete the Works
including loss and/or expense suffered by the Employer shall be incorporated
in a final account prepared in accordance with Clause 25.6.
Records of 25.5 The Architect shall within twenty eight (28) Days of the detennination of the Contractor's
Works employment, give a written notice to the Contractor of the date of inspection on Site to
jointly record the extent of the Works executed and the materials and goods delivered to the
Site. The Contractor shall provide all necessary assistance to the Architect and Consultant
to perfo1m their task. Upon completion of the record by the Architect and Consultant, a
copy shall be sent to the Contractor and such records shall form the basis for the evaluation
of the value of the works executed and materials and goods delivered to the Site by the
Contractor up to the date of determination.
Final Account 25.6 The Architect shall within six (6) Months on completion of the Works, submit to the
upon Employer and Contractor for their agreement, a final account for all cost incrnTed to
determination complete the Works including the sums previously certified to the Contractor before the
date of determination, Liquidated Damages, set-off and all other loss and/or expense
suffered.
25.6(a) lf nothing in the said final account is disputed by the Employer or Contractor
within three (3) Months from the date of receipt of the final account from the
Architect, the final account shall be conclusive and deemed agreed by the
parties. If the amount in the final account exceeds the total amount which
would have been payable on completion in accordance with the Contract, the
difference shall be a debt payable to the Employer by the Contractor or where
applicable, the Employer may recover such sum from the Perfonnance Bond.
If the said amount is less than the said total amount, the difference shall be a
debt payable to the Contractor by the Employer.
25.6(b) lf either party has any dispute on the final account, the pai1y disputing the final
account shall by written notice to the other party (with copy to the Architect)
set out any disagreement complete with pm1iculars within three (3) Months of
the date of receipt of the final account from the Architect. The Architect within
three (3) Months from the date of receipt of the grounds of dispute shall either
amend or not amend the final account. Any party disagreeing with the
amended final account or decision not to amend the final account shall refer
the dispute to arbitration under Clause 34.0 within three (3) Months from the
date of receipt of the amended final account or decision not to amend the final
account. Failure to refer the dispute to arbitration within the stipulated time,
the final account or amended final account shall deem to be conclusive and
agreed by the parties.
25.6(c) Any dispute on Liquidated Damages, set-off and interest which the Employer
is entitled to make under the Contract shall be refen-ed to arbitration.

Remedy limited 25.7 Upon receipt of a written notice by the Contractor from the Employer to determine the
to damages only employment of the Contractor, the Contractor shall yield possession of the Site within
fourteen (14} Days from the receipt of the said written notice and shall remove his
personnel and labour force (but not construction plant, tools and equipment unless so
instructed by the Architect) from the Site. Irrespective of the validity of the said written
notice the Contractor's remedy shall be limited to compensation for damages only.
Employer's 25.8 The provisions of Clause 25.0 are without prejudice to any other rights and/or remedies
rights and which the Employer may possess.
remedies not
prejudiced
26.0 Determination Of Own Employment By Contractor
Defaults by 26.1 The Contractor may determine his own employment if the Employer defaults in any of the
Employer following:
26.1 (a) if the Employer fails or neglects to pay the Contractor the amount due on any
certificate (less any Liquidated Damages and set-off which the Employer is
expressly entitled to make under the Contract) within the Period for Honouring
Cert iti cates;
26.l(b) if the Employer inte1feres with or obstructs the issue of any certificate by the
Architeot;
26.1 (c) if the Employer fails to nominate a succeeding Architect or Consultant in

accordance with Articles 3, 4, 5 and 6; or
26.l(d) if before the date of Practical Completion, the carrying out of the whole or
substantially the whole of the uncompleted Works is suspended for a
continuous period of time exceeding that stated in the Period of Delay stated in
the Appendix by reason of:
26. l(d)(i) Al issued by the Architect under Clause 1.4, 21.l or 21.4 unless
the instruction is issued to rectify any negligence, omission,
default and/or breach of contract by the Contractor or
26.l(d)(ii) the Contractor not having received in due time the necessary Al
(including those for or in regard to the expenditure of P.C. Sums
and Provisional Sums, further drawings, details, levels and any
other information) for which he had specifically applied in
writing to the Architect. The Contractor's application must be
submitted to the Architect in sufficient time before the
commencement of construction of the affected works, to enable
the Architect to issue the necessary Al within a period which
would not materially affect the progress of the affected works,
having regard to the Completion Date. Provided always that the
Al was not required as a result of any negligence, omission,
default and/or breach of contract by the Contractor and/or
26. I (d)(iii) delay on the part of craftsmen, tradesmen or other contractors

employed or engaged by the Employer in executing work not
forming pm1 of the Contract or the failure to execute such work;
or
26.l(d)(iv) the opening up for inspection of any work covered up or to

arrange for or carry out any testing of any work, materials and
goods in accordance with Clause 6.3 unless the inspection or test
showed that the work, materials and goods were not in
accordance with the Contract, or the inspection and/or test was
in the opinion of the Architect required in consequence of some
prior negligence, omission, default and/or breach of contract by
the Contractor.
PAM Contract 2006 (Without Quantities) JO

Procedure for 26.2 Upon the occurrence of any default under Clause 26. l, and if the Contractor decides to
determination determine his own employment then, the Contractor shall give to the Employer a written
notice delivered by hand or by registered post specifying the default. If the Employer shall
continue with such default for fourteen (14) Days from the receipt of such written notice
then, the Contractor may within ten (10) Days from the expiry of the said fourteen (14)
Days, by a further written notice delivered by hand or by registered post forthwith
determine his own employment under the Contract. Provided always that such notice shall
not be given unreasonably or vexatiously.
Employer's 26.3 In the event of the Employer becoming insolvent or making a composition or arrangement
insolvency with his creditors, or have a winding up order made, or (except for the purposes of
reconstruction or amalgamation) a resolution for voluntary winding up, or having a
liquidator or receiver or manager of his business or undertaking duly appointed, or having
possession taken by or on behalf of the holders of any debentures secured by a floating
charge, or of any property comprised in or subject to the floating charge, the employment
of the Contractor shall be forthwith automatically determined.
Rights and duties 26.4 In the event that the employment of the Contractor is determined under Clause 26. I or 26.3,
of Contractor the following shall be the respective rights and duties of the Contractor and Employer:
and Employer
26.4(a) the Contractor shall within fourteen (14) Days or within such longer period as
may be agreed in writing by the Architect, remove from the Site all his
temporary buildings, construction plant, tools, materials and goods and shall
give facilities for his Nominated Sub-Contractors to do the same; and
26.4(b) the Employer shall allow or pay to the Contractor the total value of work
properly executed and the value of materials and goods supplied including any
loss and/or expense suffered by the Contractor caused by such determination.
Records of 26.5 The Contractor shall within twenty eight (28) Days of the determination of his own
Works employment, give a written notice to the Architect of the date of inspection on Site to
jointly record the extent of the Works executed and the materials and goods delivered to the
Site. Upon completion of the record by the Contractor, a copy shall be sent to the Employer
and Architect and such records shall form the basis for the evaluation of the value of the
works executed and materials and goods delivered to the Site by the Contractor up to the
date of determination.
Settlement of 26.6 The Contractor shall within six (6) Months after determination of his own employment,
accounts submit to the Employer and Architect for the Employer's agreement, a final account for the
total value of work properly executed, the value of materials and goods supplied and loss
and/or expense suffered by the Contractor caused by such determination.
26.6(a) If nothing in the said final account is disputed by the Employer within tlu·ee
(3) Months from the date of receipt of the final account from the Contractor,
the final account shall be conclusive and deemed agreed by the parties. If the
amount in the final account exceeds the sums previously paid to the Contractor
under the Contract (less any Liquidated Damages and set-off which the
Employer is expressly entitled under the Contract), the balance shall be a debt
payable to the Contractor by the Employer within the Period of Honouring
Certificates. If the said amount is less than the said sum, the difference shall be
a debt payable to the Employer by the Contractor or where applicable, the
Employer may recover such difference from the Performance Bond.
26.6(b) If the Employer disputes the final account, the Employer shall give written
notice to the Contractor setting out any disagreement complete with particulars
within three (3) Months of the date of receipt of the final account from the
Contractor. The Contractor shall within three (3) Months from the date of
receipt of the grounds of dispute, either make such amendment to the final
account as in his opinion may be appropriate, or decide not to amend the final
account. In the event the Employer disagrees with the amended final account
or the decision not to amend the final account, the Employer shall refer the
dispute to arbitration under Clause 34.0 within three (3) Months from the date
of receipt of the amended final account or decision not to amend the final
account. Failure to refer the dispute to arbitration within the stipulated time,
the final account or amended final account shall deem to be conclusive and
agreed by the parties.

Contractor's 26.7 The provisions of Clause 26.0 are without prejudice to any other rights and/or remedies
rights and which the Contractor may possess.
remedies not
prejudiced
27.0 Nominated Sub-Contractors
P.C. Sums and 27.1 The following provisions shall apply where P.C. Sums are included in the Contract Bills or
Provisional Sums arise as a result of an Al given in regard to the expenditure of Provisional Sums in respect
- Nominated Sub- of a Person to be nominated by the Architect to supply and fix materials and goods or to
contractors execute works. Such sums shall be expended in favour of such Person as the .Architect shall
instruct, and such Person who is nominated by the Architect is hereby referred to as
"Nominated Sub-Contractor" employed by the Contractor. If the Nominated Sub-
Contractor proposes any alternative design to the sub-contract drawings or if the sub-
contract leaves any matter of design, specification or choice of materials, goods and
workmanship to the Nominated Sub-Contractor, the Nominated Sub-Contractor and not the
Contractor shall be responsible to ensure that such sub-contract works are fit for its
purpose.
Nomination of 27.2 The Architect shall not nominate any Person as Nominated Sub-Contrnctor against whom
sub-contractor the Contractor makes reasonable objection in accordance with Clause 27.3 . The Contractor
shall make such reasonable objection in writing not later than fourteen (14) Days from
receipt of the nomination instruction from the Architect. The Architect shall not nominate
(except where the Architect and Contractor otherwise agree) any Person who will not enter
into a contract with the Contractor based upon the tenns and conditions of the PAM Sub-
contract 2006 which provides inter alia:
27.2(a) that the Nominated Sub-Contractor carry out and complete the sub-contract
works in every respect to the reasonable satisfaction of the Contractor and
Architect and in conformity with all reasonable directions and requirements of
the Contractor;
27.2(b) that the Nominated Sub-Contractor observe, perform and comply with all the
provisions of the Contract which the Contractor is obliged to perform and
comply with so far as they relate and apply to the sub-contract works;
27.2(c) that the Nominated Sub-Contractor indemnify the Contractor against the same
liabilities in respect of the sub-contract works as those for which the
Contractor is liable to indemnify the Employer under the Contract;
27.2(d) that the Nominated Sub-Contractor indemnify the Contractor against claims in
respect of any negligence, omission or default of his sub-contractors, his
servants or agents or any misuse by him or them of any construction plant,
access, scaffolding, temporary works, appliances or other property belonging
to or provided by the Contractor;
27.2(e) that the sub-contract works be completed within the period or periods
specified and the Contractor shall not without the written recommendation of
the Architect grant any extension of time for the completion of the sub-
contract works caused by any of the Relevant Event stated in Clause 21.4 of
the PAM Sub-Contract 2006. Where the delays are caused by any negligence,
omission, default and/or breach of the sub-contract by the Contractor, the
Contractor is solely responsible under Clause 21.6 of the PAM Sub-Contract
2006 to assess and grant an extension of time to the Nominated Sub-
contractor;
27.2(f) that when the Contractor and Nominated Sub-Contractor consider that the sub-
contract works have been practically completed, they shall request the
Architect to issue a certificate to the effect, and if the Architect is of the
opinion that the sub-contract works have been completed in accordance with
the provisions of Clause 17.1 of the PAM Sub-Contract 2006, the Architect
shall forthwith issue a certificate to the effect;

27.2(g) that ifthe Nominated Sub-Contractor fails to complete the sub-contract works
within the sub-contract completion date or within any extended time granted
by the Contractor, and the Contractor after having given a written notification
to the Nominated Sub-Contractor that the sub-contract works ought reasonably
so to have been completed, the Nominated Sub-Contractor shall pay or allow
to the Contractor loss and/or expense suffered by the Contractor or an agreed
Liquidated Damages;
27.2(h) that payment to Nominated Sub-Contractor shall be made within seven (7)
Days after the Period of Honouring Certificates and shall be subject to the
retention and deductions expressly provided under the PAM Sub-Contract
2006;and
27.2(i) that the Architect, Consultants and their authorised representatives shall have
the right of access to the workshops and other places of the Nominated Sub-
Contractor in accordance with the provisions of Clause I l.2 of the PAM Sub-
contract 2006.
Objection to 27.3 Subject to Clause 27.4, the Contractor shall not be required to enter into a sub-contract with
nomination of any Nominated Sub-Contractor against whom the Contractor has made a reasonable
sub-contractor objection based on available known facts and documented evidence that the financial
standing or solvency or technical competence of the Nominated Sub-Contractor is such that
a prudent contractor, having regard to the scope of sub-contract works would be justified in
rejecting the nomination.
Action following 27.4 Where the Architect is of the opinion that the Contractor has made a reasonable objection,
objection of the Architect may either issue further written instructions to remove the objection so that
Nominated Sub- the Contractor can enter into the sub-contract, or cancel such nomination instruction and
contractor issue an instruction omitting the work which was the subject of the nomination instruction
or re-nominate another sub-contractor for the sub-contract works.
Payment by 27.5 The Architect shall direct the Contractor as to the total value of work properly executed and
Contractor to include the percentage of the value of the materials and goods stated in the Appendix in the
Nominated Sub- calculation of the amount stated to be due in any certificate issued under Clause 30.0, and
contractors shall at the same time when the certificate is issued, inform the Nominated Sub-Contractor
in writing of the amount of the said total value. The sum representing such total value (less
any retention and deductions expressly provided under PAM Sub-Contract 2006) shall be
paid by the Contractor to the Nominated Sub-Contractor within seven (7) Days after the
Period ofHonouring Certificates.
Failure of 27.6 The Architect may at any time before the issuance of any Interim and Penultimate
Contractor to Certificate, request the Contractor to furnish to him reasonable proof that all amounts stated
pay Nominated as due and included in the previous certificates have been discharged. The Contractor shall
Sub-Contractors provide such proof within fomteen (14) Days of the Architect's request. If the Contractor
has any reasons for withholding any Nominated Sub-Contractor's payments under Clauses
16. l and 26.13 of the PAM Sub-Contract 2006, he shall provide the Architect written
details of his compliance. If the Contractor fails to comply with the Architect's request
within fourteen (14) Days, the Architect may (but not obliged to) issue a certificate stating
the amount in respect of which the Contractor has failed to provide such proof. Where the
Architect has so certified, the Employer may (but not obliged to) pay such amounts directly
to the Nominated Sub-Contractor and deduct the same from any sums due or to become
due to the Contractor. The Architect may issue the aforesaid certificate in-espective of
whether or not an Interim Certificate under Clause 30.0 is due for issuance.
Final payment to 27.7 If the Architect wishes to make final payment to any Nominated Sub-Contractor before
Nominated Sub- final payment is due to the Contractor, and if the Nominated Sub-Contractor has
contractors indemnified the Contractor against all of his liabilities under the Nominated Sub-Contract,
the Architect shall issue a certificate to the Contractor and the Contractor shall pay to such
Nominated Sub-Contractor the amount so certified less any retention and deductions
expressly provided under PAM Sub-Contract 2006. Upon such final payment, the amount
stated in the Appendix as Limit of Retention Fund shall be reduced by the sum of the
retention released to the Nominated Sub-Contractor.

Determination of 27.8 The Contractor shall not determine the employment of any Nominated Sub-Contractor
the Nominated without the written consent of the Architect. If the Contractor intends to determine the
Sub-Contractor's employment of the Nominated Sub-Contractor, the Contractor shall send to the Architect a
employment written report stating the Nominated Sub-Contractor's default with a copy to the
Nominated Sub-Contractor. The Architect may request that the Nominated Sub-Contractor
respond to the Contractor's report before he decides whether or not to give his written
consent.
Contractor's 27.9 The Contractor shall be fully responsible to ensure that all Nominated Sub-Contractors
responsibility for carry out the sub-contract works in accordance with the Nominated Sub-Contract and in
Nominated Sub- compliance therewith provide designs (if any), materials, goods and standards of
contractors workmanship of the quality and standard specified therein to the reasonable satisfaction of
the Architect.
Employer no 27.10 Neither the existence of or the exercise of the foregoing provisions nor anything else
privity of contained in the Contract shall create a privity of contract between the Employer and any of
Contract with the Nominated Sub-Contractors.
Nominated Sub-
contractors
Re-nomination of 27.11 If the employment of a Nominated Sub-Contractor is determined by the Contractor with the
sub-contractor written consent of the Architect, the Architect shall re-nominate another Nominated Sub-
due to contractor. In the event, the Contractor shall be entitled to be paid such difference (if any)
determination by between the sum payable to the Contractor and the new Nominated Sub-Contractor and the
the Contractor sum payable to the previous Nominated Sub-Contractor after taking into consideration of
any sum that will be recoverable from the defaulting Nominated Sub-Contractor under
Clause 27.13. An extension of time under Clause 23 .8(i) may be granted to the Contractor
but the Contractor shall not be entitled to any damages, Joss and/or expense.
Re-nomination of 27.12 If a Nominated Sub-Contractor determines his own employment under the Nominated Sub-
sub-contractor contract due to negligence, omission, default or breach of the Contractor, the Architect
due to shall re-nominate another Nominated Sub-Contractor. In the event, the Contractor shall be
determination by paid the same sum as would have been payable to the previous Nominated Sub-Contractor.
the Nominated The Contractor will be liable to pay the new Nominated Sub-Contractor any additional cost
Sub-Contractor to complete the Sub-Contract Works and to pay the Employer for all additional costs
incurred in re-nomination and Joss and/or expense suffered by the Employer by such
determination. The Contractor shall not be entitled to any extension of time unless and until
the Contractor has established that the determination by the Nominated Sub-Contractor of
his own employment is invalid . In the event the determination by the Nominated Sub-
contractor of his own employment has been established to be invalid by arbitration or
litigation, Clause 27.J l will apply.
Contractor to 27.13 In the event the Architect consents to determine the employment of the Nominated Sub-
recover contractor under Clause 27.11, the Contractor shall recover all additional expenses
additional (including any additional expenses incurred by the Employer) from the Nominated Sub-
expenses from contractor as a debt or from any monies due or to become due to the Nominated Sub-
Nominated Sub- contractor and failing which, the Contractor may recover such sum from the Nominated
contractor Sub-Contractor's Performance Bond.
Contractor 27.14 Where the Contractor carries out works for which P.C. Sums and Provisional Sums are
permitted to included in the Contract Bills, the Contractor shall be permitted to tender for the same. If
tender for P.C. the tender of the Contractor for such work is accepted, it shall be considered as a Variation
Sums and the Contractor shall not be entitled to profit and attendance charges as priced under the
relevant P.C. Sum, notwithstanding the provision of Clause 30.11 (c).
28.0 Nominated Suppliers
P.C. Sums and 28 .1 The following provisions of this clause shall apply where P.C. Sums are included in the
Provisional Sums Contract Bills or arise as a result of an AI given in regard to the expenditure of Provisional
-Nominated Sums in respect of Person to be nominated by the Architect to supply any materials and
Suppliers goods to be fixed by the Contractor. Such Person as the Architect shall instruct is referred
to as "Nominated Supplier".
Nominated 28 .2 The Architect shall not nominate any Person as a Nominated Supplier against whom the
Suppliers and Contractor makes a reasonable objection in accordance with Clause 28.3 . The Contractor
their obligations shall make such reasonable objection in writing not later than fourteen ( 14) Days from
receipt of the nomination instruction from the Architect. The Architect shall not nominate
(except where the Architect and Contractor otherwise agree) any Person who will not enter
into a contract of sale which provides inter alia:
PAM Conu·act 2006 (Without Quantities) 34

28.2(a) that the materials and goods to be supplied shall be of the quality and standard
specified, provided always that where approval of the quality and standard of
material is a matter ofopinion of the Architect, such quality and standard shall
be to the reasonable satisfaction of the Architect;
28 .2(b) that the Nominated Supplier shall make good by replacement or otherwise any
defects in the materials and goods supplied which appear within the Defects
Liability Period and shall bear any expenses reasonably incun-ed by the
Contractor as a direct consequence of such defects provided always that:
28.2(b)(i) where the materials and goods have been used or fixed, such
defects are not such that examination by the Contractor ought to
have revealed them before using or fixing; or
28.2(b)(ii) such defects are due solely to defective workmanship, materials

and goods supplied and not caused by misuse, improper storage
or any act or neglect by the Contractor;
28 .2(c) that the delivery of the materials and goods supplied shall commence and be
completed in accordance with a delivery programme to be agreed between the
Contractor and Nominated Supplier, or at such times as the Contractor may
reasonably direct;
28.2(d) that the ownership of materials and goods shall pass to the Contractor upon
delivery by the Nominated Supplier, whether or not payment has been made in
full; and
28.2(e) that payment to Nominated Supplier shall be made within seven (7) Days after
the Period of Honouring Certificates and shall be subject to the retention by
the Contractor under Clause 28.5.
Objection to 28.3 Subject to Clause 28.4, the Contractor shall not be required to enter into a supply contract
nomination of with any Nominated Supplier against whom the Contractor has made a reasonable
suppliers objection based on the available known facts and documented evidence that the financial
standing or solvency or technical competence of the Nominated Supplier is such that a
prudent contractor, having regard to the scope of the supply contract would be justified in
rejecting the nomination.
Action following 28.4 Where such reasonable objection is made, the Architect may either issue fu1ther
objection of instructions to remove the objection so that the Contractor can enter into the supply contract
suppliers or cancel such nomination or instniction and issue an instruction omitting the materials and
goods which was the subject of the nomination instruction or re-nominate another
Nominated Supplier.
Value of 28.5 The Architect shall direct the Contractor as to the total value of materials and goods
materials and supplied by a Nominated Supplier which has been included in any certificate issued under
goods supplied Clause 30.0, and shall at the same time when the certificates are issued, info1m the
by Nominated Nominated Supplier in writing of the amount of the said total. The Contractor shall retain
Suppliers from the sums included for the value of materials and goods the percentage of such value
stated in the Appendix as Percentage of Ce1tified Value Retained up to an amount not
exceeding five (5) percent of the Nominated Supplier's sum. The Contractor's interest in
any sums so retained shall be fiduciary as tnistee for the Nominated Supplier (but without
obligation to invest); and the Contractor's beneficial interest in such sums shall be subject
only to the right of the Contractor to have recourse from time to time for payment of any
amount which he is entitled under the nominated supply contract to deduct from any sum
due or to become due to the Nominated Supplier. Upon the Architect having certified the
release of the Retention Fund under Clause 30.6, such sums shall be released to the
Nominated Supplier within seven (7) Days after the Period of Honouring Certificate and
that if and when such sums are released to the Nominated Supplier, they shall be paid in
full.
Payment to 28.6 All payments in respect of the value of materials and goods supplied by a Nominated
Nominated Supplier shall be made within seven (7) Days after the Period of Honouring Certificates and
Suppliers shall be subject to the retention by the Contractor under Clause 28.5.

Contractor's 28.7 The Contractor shall be fully responsible for any negligence, omission, default and/or
liability for breach of contract by the Nominated Supplier and the Employer shall in no circumstances
Nominated be liable to the Contractor.
Suppliers
Employer no 28.8 Neither the existence of or the exercise of the foregoing provisions nor anything else
privity of contained in the Contract shall create a privily of contract between the Employer and any of
Contract with the Nominated Suppliers.
Nominated
Suppliers
29.0 Works By Craftsmen, Tradesmen Or Other Contractors Employed Or Engaged By

Employer
Works by 29.l The Contractor shall permit the execution of work not forming part of the Contract on the
Employer's Works by craftsmen, tradesmen or other contractors engaged by the Employer. Such
craftsmen craftsmen, tradesmen or other contractors engaged by the Employer shall be deemed to be a
Person for whom the Employer is responsible and not to be a sub-contractor of the
Contractor.
30.0 Certificates And Payment
Payment 30.l The Contractor shall submit a payment application at the Interim Claim Interval stated in
application and the Appendix with complete details and particulars as required by the Architect, to enable
issuance of him to consider and ascertain the amount to be included in an Interim Certificate. Upon
Architect's receipt of the Contractor's details and pai1iculars, the Architect shall, within twenty one (21)
certificate Days from the date of receipt of the Contractor's application, issue an Interim Certificate to
the Employer with a copy to the Contractor, and the Employer shall thereafter pay the
amount certified to the Contractor within the Period of Honouring Certificates. Any failure
by the Contractor to submit a payment application shall be deemed to be a waiver of his
contractual entitlement for that Interim Certificate, and the Architect may or may not issue
an Interim Certificate under the circumstances. After the issuance of the Certificate of
Practical Completion, Interim Certificates shall be issued as and when further amounts are
asce11ained by the Architect as payable to the Contractor by the Employer.
Amount due in 30.2 The amount stated as due in an Interim Certificate shall, subject to any agreement between
Architect's the parties as to stage payments, be the total value of the work properly executed and
certificate include the percentage of the value of materials and goods stated in the Appendix up to the
date of the Contractor's payment application less any amount which may be retained by the
Employer under Clauses 30.5 and 30.6 and, less the amounts previously certified under
Clause 30.1. The materials and goods must be for incorporation into the permanent works
and have been delivered to and properly stored at the Site and be protected against loss,
damage or deterioration, and be in accordance with the Contract. The certificate shall only
include the value of materials and goods which are reasonably, properly and not
prematurely brought to the Site.
Errors in 30.3 Save for clerical, computational or typographical error or errors of a similar nature, the
payment Architect shall not be entitled to revise or c01Tect any payment certificate issued by him
certificate under the Contract. Provided always that the Architect may, by a later certificate, make
correction or modification in respect of any valuation errors in any earlier certificate.
Set-off by 30.4 The Employer shall be entitled to set-off all cost incurred and loss and expense where it is
Employer expressly provided under Clauses 2.4, 4.4, 5.1, 6.S(e), 6.7, 14.4, 15.3(b) 15.3(c), 15.4, 15.5,
19.5 and 20.A.3. No set-off under this clause may be made unless:
30.4(a) the Architect (on behalf of the Employer) has submitted to the Contractor
complete details of their assessment of such set-off; and
30.4(b) the Employer or the Architect on his behalf has given the Contractor a written
notice delivered by hand or by registered post, specifying his intention to set-
off the amount and the grounds on which such set-off is made. Unless
expressly stated elsewhere, such written notice shall be given not later than
twenty eight (28) Days before any set-off is deducted from any payment by the
Employer.
Any set-off by the Employer shall be recoverable from the Contractor as a debt or from any
monies due or to become due to the Contractor under the Contract and/or from the
Performance Bond.

If the Contractor after receipt of the written notice from the Employer or the Architect on
his behalf, disputes the amount of set-off, the Contractor shall within twenty one (21) Days
of receipt of such written notice, send to the Employer delivered by hand or by registered
post a statement setting out the reasons and particulars for such disagreement. If the parties
are unable to agree on the amount of set-off within a fmther twenty one (21) Days after the
receipt of the Contractor's response, either paity may refer the dispute to adjudication under
Clause 34. l. The Employer shall not be entitled to exercise any set-off unless the. amount
has been agreed by the Contractor or the adjudicator has issued his decision.
Retention Fund 30.5 The Employer may retain the percentage of the total value of the work, materials and goods
referred to in Clause 30.2, which is stated in the Appendix as Percentage of Certified Value
Retained. When the sum of the amounts so retained equals the amount stated in the
Appendix as Limit of Retention Fund or that amount as reduced under Clauses 16.1 (d) and
16.l(f) and/or Clause 27.7, as the case may be, then no further amounts shall be retained by
virtue of this clause.
Rules regarding 30.6 The amount retained under Clause 30.5 shall be subjected to the following rules:
Retention Fund
30.6(a) the Employer's interest in any amount so retained shall be fiduciary as trustee
for the Contractor, Nominated Sub-Contractors and Nominated Suppliers (but
without obligation to invest) and the Contractor's, Nominated Sub-
contractors' and Nominated Suppliers' beneficial interest shall be subject only
to the right of the Employer to have recourse from time to time for payment of
any amount as the Architect may certify that he is entitled under the Contract
to deduct from such sum due or to become due to the Contractor, Nominated
Sub-Contractors and Nominated Suppliers. ln the event any of the party elects
to demand in writing from the Employer (with a copy to the Architect) for
such Retention Fund to be paid into a trust account, such fund shall be paid by
the Employer within fourteen (14) Days into an escrow account to be held by a
stakeholder appointed by the party making the application. All incidental costs
of setting up such a trust account shall be borne by the Contractor or
Nominated Sub-Contractors or Nominated Suppliers as the case may be;
30.6(b) when the Employer exercises any right under the Contract to deduct from any
monies due to or become due to the Contractor or where applicable, the
Nominated Sub-Contractors or Nominated Suppliers, he shall inform the
relevant party in writing of the reason for that deduction;
30.6(c) upon the issuance of the Certificate of Practical Completion, the Architect
shall within fourteen (14) Days issue a certificate for the release of one half of
the Retention Fund and the Contractor shall be entitled to payment thereafter
within the Period of Honouring Certificates; and
30.6(d) upon the issuance of the Certificate of Making Good Defects, the Architect
shall within fourteen (14) Days issue a certificate for the residue of the amount
then so retained and the Contractor shall be entitled to payment within the
Period of Honouring Certificates.
Suspension of 30.7 Without prejudice to the Contractor's right to determine his own employment under Clause
Works for non- 26.0, ifthe Employer fails or neglects to pay the Contractor the amount due as shown in the
payment payment certificate (less any Liquidated Damages and set-off which the Employer is
expressly entitled to make under the Contract) and continue such default for fourteen (14)
Days from the receipt of a written notice delivered by hand or by registered post from the
Contractor stating that if payment is not made within the fourteen ( 14) Days, the Contractor
may by a further written notice delivered by hand or by registered post, forthwith suspend
the execution of the Works until such time payment is made. Provided always that such
notice shall not be given unreasonably or vexatiously.
Compulsory 30.8 If the Architect and/or Consultant inform the Contractor in writing of their withdrawal from
suspension of the supervision of the execution of the Works required under the local building by-laws for
Works whatever reasons, the Contractor shall forthwith suspend the execution of the Works and
continue such suspension until the resumption of the said supervision.
Cessation 30.9 If the Contractor suspends the Works in accordance with the provisions of Clauses 30.7 and
insurance 30.8, he shall secure and protect the Works during the period of suspension and ensure that
resulting from there is separate cessation insurance cover for all the risks specified in Clauses 19.0 and
suspension of'the 20.A or 20.B or 20.C for the whole period of suspension. The cost incurred for such
Works protection and cessation insurance cover shall be added to the Contract Sum.

Final Account 30.10 Within six (6) Months after Practical Completion of the Works, the Contractor shall send to
the Architect and Consultant, all documents necessary for preparing the Final Account,
including all documents relating to the accounts of Nominated Sub-Contractors (if these
had not been submitted earlier under the Nominated Sub-Contract) and Nominated
Suppliers. Such documents shall contain all the latest construction drawings and details
(bound together), details of all quantities, rates and prices and any adjustment of the
Contract Sum and additional payment or compensation claimed by the Contractor under the
Contract together with any explanation and supporting vouchers, documents and
calculations, which may be necessary to enable the Final Account to be prepared by the
Architect. The Final Account shall be completed within six (6) Months from receipt of all
the documents from the Contractor. The period for completion of the Final Account shall
be adjusted if there is any delay by the Contractor in sending the necessary Clocuments. In
the event the Contractor fails to submit all documents necessa1y for preparing the Final
Account, the Architect shall nevertheless complete and issue the same based on the
information available within the Period to complete the Final Account stated in the
Appendix. On completion of the Final Account, the Architect shall then send a copy of the
document to the Employer and Contractor.
30. lO(a) If nothing in the said Final Account is disputed by the Employer or Contractor
within three (3) Months from the date ofreceipt of the Final Account from the
Architect, the Final Account shall be conclusive and deemed agreed by the
parties.
30.JO(b) If either party disputes the Final Account, the party disputing the Final
Account shall by written notice to the other party (with copy to the Architect)
set out any disagreement complete with particulars within three (3) Months of
the date of receipt of the Final Account from the Architect. The Architect
within three (3) Months from the date of receipt of the grounds of dispute shall
either amend or not amend the Final Account. Any party disagreeing with the
amended Final Account or decision not to amend the Final Account shall refer
the dispute to arbitration under Clause 34.0 within three (3) Months from the
date of receipt of the amended Final Account or decision not to amend the
Final Account. Failure to refer the dispute to arbitration within the stipulated
time, the Final Account or amended Final Account shaJI deem to be conclusive
and agreed by the parties.
30. IO(c) Any dispute on Liquidated Damages, set-off and interest which the Employer
is entitled to make under the Contract shall be referred to arbitration.
Items in Fina] 30. ll The Final Account of the Works shall show:
Account
30.1 l(a) the adjustment made to the Contract Sum;
30.l l(b) the amounts to which the Architect considers that the Contractor is entitled
under the express provisions of the Contract;
30.l l(c) the omission of all P.C. Sums and the related profit provided by the Contractor
in the Contract Documents and the substitution of the amounts payable by the
Employer to the Nominated Sub-Contractors and Nominated Suppliers
together with the pro-rata amount for profit; and
30.1 l(d) the adjustment of Provisional Sums and omission of any Provisional Sums if
not expended.
The following shall not be included in the Final Account and are matters to be resolved
separately between the Employer and Contractor:
30.ll(e) any Liquidated Damages imposed by the Employer under Clau~e 22. l;
30.11 (f) set-off by the Employer where it is expressly provided in the Contract under
Clause 30.4; and
30.ll(g) interest payable by either of the parties to the other party under Clause 30.17.
PAM Contract 2006 (Without Quantities) jg

Conclusiveness of 30.12 Unless a written notice for arbitration shall have been given under Clause 34.0 by either
the Final party within the stipulated time stated in Clause 30.10, the Final Account or the last
Account amended Final Account shall be conclusive and deemed agreed by the parties other than
any outstanding items to be resolved separately between the Employer and Contractor
under Clauses 30.11 (e) to 30.1 J(g), except where the Final Account is erroneous by reason
of:
30.l 2(a) fraud, dishonesty or fraudulent concealment relating to the Works; or
30.12(b) any arithmetical errors in any computation.
Issuance of 30.13 The Architect may issue a Penultimate Certificate for the release of the retention sums and
Penultimate any other outstanding sums for all Nominated Sub-Contractors and/or Nominated Suppliers
Certificate not later than fourteen (14) Days after the Certificate of Making Good Defects has been
issued.
Issuance of Final 30.14 The Final Certificate shall be issued:

Certificate
30.14(a) within twenty one (21) Days after the Period of Honouring Certificates for the
payment of the Penultimate Certificate; or
30.l4(b) within twenty eight (28) Days after the Certificate of Making Good Defects
has been issued, in the event no Penultimate Certificate has been issued.
Final Certificate 30.15 The Final Certificate shall state:
30.15(a) the Final Account; less
30. l5(b) the total sums certified in previous payment certificates (whether paid or not
paid) to the Contractor;
and the difference, if any, between the sums shall be the balance due to the Contractor by
the Employer or conversely as the case may be. The balance shall be payable by the
Employer to the Contractor within the Period of Honow·ing Certificates or if it is a debt
payable by the Contractor to the Employer, shall be payable by the Contractor within the
Period of Honouring Certificates. The Architect shall not be obliged to issue the Final
Certificate before the issuance ofa Certificate of Making Good Defects.
Final Certificate 30.16 The Final Certificate shall be conclusive on the final value of the Works with the exception
not conclusive of any outstanding claims between the Employer and Contractor under Clause 30. JI. The
Final Certificate shall not be conclusive evidence that any work, materials and goods to
which it relates and designs (if any) executed by the Contractor and/or Nominated Sub-
contractors are in accordance with the Contract.
Interest 30.17 If the Employer fails to pay the Contractor the amount due on any certificate (less any
Liquidated Damages and set-off which the Employer is expressly entitled to make under
the Contract) after the Period of Honouring Certificates, or the Contractor owes a debt or
fails to pay any sum due and owing to the Employer within twenty-one (21) Days after
receipt of written notification by the Employer of such debt or amount owing, a simple
interest based on the Maybank Base Lending Rate plus one ( 1) percent shall be payable by
the defaulting party on such outstanding amount until the date payment is made.
31.0 Outbreak Of Hostilities
Hostilities - 31.1 If during the currency of the Contract there is an outbreak of hostilities (whether war is
determination by declared or not) in which Malaysia is involved on a scale involving the general mobilisation
Employer or of the Malaysian Armed Forces in which the Works are to be carried out, then either the
Contract~r Employer or Contractor may at any time by written notice delivered by hand or by
registered post to 'the other, forthwith determine the employment of the Contractor under
the Contract.
Notices of 31.2 Provided always that such written notice shall not be given:
determination
3 l.2(a) before the expiration of twenty eight (28) Days from the date on which the
order is given for general mobilisation as aforesaid; or
31.2(b) after Practical Completion of the Works unless the Works have sustained war
damage as defined in Clause 32.2.

AI regarding 31.3 After a written notice under Clause 31.1 has been given by either the Contractor or the
protective work Employer, the Architect may within fourteen (14) Days issue AI to the Contractor requiring
the execution of protective work and the Contractor shall comply with such AI, as if written
notice of determination had not been given.
If the Contractor for reasons beyond his control is prevented from completing the work to
which the said AI relate within three (3) Months from the date on which the Al was issued,
he may abandon such work.
Payment 31.4 Upon the expiration of fourteen (14) Days from the date on which written notice of
resulting from determination has been given by either party under Clause 31. I, or where on completion of
determination the works required by the Architect under Clause 31.3, or abandonment as th~ case may be
of any such work, the provisions of Clause 26.4 shall apply.
32.0 War Damage
Procedures 32.1 In the event of the Works or any unfixed materials and goods intended for, delivered to and
following war placed on or adjacent to the Works sustain war damage then notwithstanding anything
damage expressed or implied elsewhere in the Contract:
32.1(a) the occurrence of such war damage shall be disregarded in computing any
amounts payable to the Contractor under or by virtue of the Contract;
32.I(b) the Architect may issue AI requiring the Contractor to remove and/or dispose
of any debris and/or damaged work and/or to execute such protective work as
specified;
32.l(c) the Contractor shall reinstate or make good such war damage and shall
proceed with the carrying out and completion of the Works, and the Architect
shall grant to the Contractor a fair and reasonable extension of time for the
completion of the Works; and
32. l(d) the removal and disposal of debris or damaged work, the execution of
protective works and the reinstatement and making good of such war damage
shall be deemed to be a Variation required by the Architect.
Definition of war 32.2 The expression "war damage" means:

damage
32.2(a) damage occurring (whether accidentally or not) as the direct result of action
taken by the enemy or action taken in combating the enemy or in repelling an
attack by the enemy;
32.2(b) damage occurring (whether accidentally or not) as a direct result of measures

taken under proper authority to avoid the spreading of or otherwise to mitigate,
the consequence of such damage as aforesaid;
32.2(c) accidental damage occurring as the direct result of any precautionary or

preparatory measures taken under proper authority with a view to preventing
or hindering the carrying out of any attack by the enemy or of precautionary or
preparatory measures involving the doing of work in anticipation of enemy
action involving a substantial degree ofrisk to property.
33.0 Antiquities
Antiquities 33.1 All fossils, antiquities and other objects of interest or value which may be found on the Site
property of or in excavating the same during the progress of the Works shall become the property of the
Employer Employer. Upon discovery of such objects the Contractor shall forthwith cease work and
shall not disturb the object and take all necessary precautions to preserve the object in the
exact position and condition as it was discovered. He shall immediately notify the Architect
or the Site Staff of the discovery and the Architect shall issue written instruction in this
regard to what has to be done.
34.0 Adjudication And Arbitration
Set-off disputes 34.1 Reference to adjudication is a condition precedent to arbitration for disputes under Clause
referred to 30.4. The parties by written agreement are free to refer any other disputes to adjudication.
adjudication Any dispute under Clause 30.4 after the date of Practical Completion shall be referred to
arbitration under Clause 34.5.

Notice to refer to 34.2 Where a party requires a dispute or difference under Clause 34. l to be refe1red to
adjudication adjudication, such disputes or differences shall be referred to an adjudicator to be agreed
between the parties. If after the expiration of twenty one (21) Days from the date of the
written notice to concur on the appointment of the adjudicator, there is a failure to agree on
the appointment, the party initiating the adjudication shall apply to the President of
Pertubuhan Akitek Malaysia to appoint an adjudicator, and such adjudicator so appointed
shall be deemed to be appointed with the agreement and consent of the parties to the
Contract.
Adjudication 34.3 Upon appointment, the adjudicator shall initiate the adjudication in accordance with the
Rules current edition of the PAM Adjudication Rules or any modification or revision to such
rules.
Decision of the 34.4 If a party disputes the adjudicator's decision, he shall nevertheless be bound by the
adjudicator adjudicator's decision until Practical Completion but shall give a written notice to the other
party to refer the dispute which was the subject of the adjudication to arbitration within six
(6) Weeks from the date of the adjudicator's decision. The adjudicator's decision shall be
final and binding on the parties if the dispute on the adjudicator's decision is not referred to
arbitration within the stipulated time. The parties may settle any dispute with the
adjudicator's decision by written agreement between the parties or by arbitration under
Clause 34.S.
Disputes referred 34.S In the event that any dispute or difference arises between the Employer and Contractor,
to arbitration either during the progress or after completion or abandonment of the Works regarding:
34.S(a) any matter of whatsoever nature arising under or in connection with the
Contract;
34.S(b) any matter left by the Contract to the discretion of the Architect;
34.S(c) the withholding by the Architect of any certificate to which the Contractor
may claim to be entitled to;
34.S(d) the rights and liabilities of the parties under Clause 25.0, 26.0, 31.0 or 32.0; or
34.S(e) the unreasonable withholding of consent or agreement by the Employer or

Contractor,
then such disputes or differences shall be referred to arbitration.
Procedures for 34.6 Upon the disputes or differences having arisen then:
appointment of
arbitrator 34.6(a) any party may serve written notice on the other party that such disputes or
differences shall be referred to an arbitrator to be agreed between the parties;
and
34.6(b) if after the expiration of twenty one (21) Days from the date of the written ·,
notice to concur on the appointment of the arbitrator, there is a failure to agree
on the appointment, the party initiating the arbitration shall apply to the
President of Pertubuhan Akitek Malaysia to appoint an arbitrator, and such
arbitrator so appointed shall be deemed to be appointed with the agreement
and consent of the parties to the Contract.
Arbitration Act 34.7 Upon appointment, the arbitrator shall initiate the arbitration proceedings in accordance
and Rules with the provisions of the Arbitration Act 2005 or any statutory modification or re-
enactment to the Act and the PAM Arbitration Rules or any modification or revision to
such rules.
Powers of 34.8 The arbitrator shall without prejudice to the generality of his powers, have power:
arbitrator
34.S(a) to rectify the Contract so that it accurately reflects the true agreement made by
the Employer and Contractor;
34.S(b) to direct such measurements and/or valuations as may in his opinion be

desirable in order to determine the rights of the parties;
34.S(c) to ascertain and award any sum which ought to have been the subject of or
included in any certificate;

34.8(d) to open up, review and revise any ce1tificate, opinion, decision, requirement,
or notice;
34.8(e) to determine all matters in dispute submitted to him in the same manner as if
no such certificate, opinion, decision, requirement or notice had been given;
34.8(f) to award interest from such dates at such rates and with such rests as he thinks
fit:
34.8(t)(i) on the whole or part of any amount awarded by him in respect of

any period up to the date of the award;
34.8(f)(ii) on the whole or part of any amount claimed in the arbitration

and outstanding at the commencement of the arbitral
proceedings but paid before the award was made, in respect of
any period up to the date of payment; and
34.8(g) to award interest from the date of the award (or any later date) until payment,
at such rates and with such rests as he thinks fit on the outstanding amount of
any award.
Consolidation of 34.9 Where any dispute arises between the Employer and Contractor and the dispute relates to
arbitration the works of a Nominated Sub-Contractor and arises out of or is connected with the same
proceedings dispute between the Contractor and such Nominated Sub-Contractor, the Employer and
Contractor shall use their best endeavour to appoint the same arbitrator to hear the dispute
under Clause 29.3 of the PAM Sub-Contract 2006.
Commencement 34.10 Unless with the written agreement of the Employer and Contractor, such arbitration
of arbitration proceedings shall not commence until after Practical Completion or alleged Practical
proceeding Completion of the Works or determination or alleged determination of the Contractor's
employment under the Contract or abandonment of the Works except on:
34.IO(a) the question of whether or not the issuance of an instruction is empowered by

these Conditions;
34.IO(b) any dispute or difference under Clauses 31.0 and 32.0;
34.lO(c) whether or not a certificate has been improperly withheld or not in accordance
with these Conditions; or
34.J O(d) whether or not a payment to which the Contractor may claim to be entitled has
been properly withheld in accordance with these Conditions.
Arbitrator's 34.1 I The award of such arbitrator shall be final and binding on the parties.
award to be final
and binding on
parties
35.0 Mediation
Mediation under 35.l Notwithstanding Clause 34.0 of these Conditions, upon the written agreement of both the
PAM rules Employer and Contractor, the parties may refer any dispute for mediation. If the parties fail
to agree on a mediator after twenty one (21) Days from the date of the written agreement to
refer the dispute to mediation, any party can apply to the President of Pe1tubuhan Akitek
Malaysia to appoint a mediator. Upon appointment, the mediator shall initiate the mediation
in accordance with the PAM Mediation Rules or any modification or revision to such rules.
Mediation does 35.2 Prior reference of the dispute to mediation under Clause 35.1 shall not be a condition
not prejudice the precedent for its reference to adjudication or arbitration by either the Contractor or the
parties' rights to Employer, nor shall any of their rights to refer the dispute to adjudication or arbitration
arbitration under Clause 34.0 of these Conditions be in any way prejudiced or affected by this clause.
36.0 Notice
Notice 36.1 Any written notice or other document to be given under the Contract shall be given or sent
by:
36.l(a) hand;

36.l(b) ordinary mail or registered post; or
36.l(c) facsimile transmission.
Notice deem 36.2 Any written notice or other document shall be deemed to have been duly served upon and
served received by the addressee:
36.2(a) if delivered by hand, at the time of delivery;
36.2(b) if sent by ordinary mail or registered post, after three (3) Days of posting; or
36.2(c) if transmitted by way offacsimile transmission, at time of transmission.
Proof of Notice 36.3 In proving the giving of a written notice or any other document under or in respect of the
Contract, it shall be sufficient to show:
36.3(a) in the case of hand delivery, a signed acknowledgement ofreceipt;
36.3(b) in the case of registered post, a receipt of posting from the Post Office; or
36.3(c) in the case of facsimile transmission, that the facsimile transmission was duly
transmitted from the dispatching terminal, as evidenced by a transmission
report generated by the transmitting equipment.
Written 36.4 All written communication shall be sent to the address stated in the Articles of Agreement
communication unless otherwise notified in writing.
37.0 Performance Bond
Submission of 37.1 The Contractor shall before the Date of Commencement of the Works, submit to the
Performance Employer a Performance Bond for a sum equivalent to the percentage stated in the
Bond Appendix as a security for the due performance and observance by the Contractor of his
obligations under the Contract up to Practical Completion of the Works.
Fonn of the 37.2 The Performance Bond shall be in the form issued in the terms and conditions specified in
Performance the Contract or otherwise approved by the Employer.
Bond
Validity of the 37.3 The Performance Bond submitted by the Contractor shall remain valid until three (3)
Performance Months after the Completion Date. Where the Works would not be completed by the
Bond Completion Date, the Contractor shall before the expiry of the Performance Bond, extend
the duration of the Performance Bond to expire three (3) Months after the projected
Practical Completion of the Works.
Failure to extend 37.4 If the Contractor fails to provide or maintain the validity of the Performance Bond in
the validity accordance with this clause, then without prejudice to any other rights and remedies which
the Employer may possess, the Employer shall be entitled to withhold or deduct an amount
equal to the Perfonnance Bond from any payment due or to become due to the Contractor.
Payments from 37.5 In the event the Employer determines the employment of the Contractor in accordance with
the Perfonnance Clause 25.0, or if there is any breach of the Contract, the Employer may call on the
Bond Performance Bond and utilise and make payments out of or deduction from the
Performance Bond for the completion of and/or rectification of the Works and
reimbursement of loss, and/or expense suffered by the Employer. On completion of the
Works, any balance of monies remaining from the Performance Bond shall be refunded to
the Contractor without interest.
Return of. 37.6 In the event the Contractor determines his own employment in accordance with Clause
Performance 26.0, the Employer shall within twenty eight (28) Days return the Performance Bond to the
Bond Contractor for cancellation.
38.0 Governing Law
Governing Law 38.1 The law governing the Contract shall be the Laws of Malaysia.

Appendix
Clause
Defects Liability Period [if none other stated is twelve 15.4

(12) Months from the day stated in the Certificate of
Practical Completion of the Works]
Insurance cover for accidental bodily injury to or illness 19.1 and 20.A or RM ............................................. .
of third parties (whether fatal or not), accidental loss of 20.Bor20.C
or damage to property belonging to third parties (the
aggregate liability of the insurers shall be limited by
twice the limit of indemnity caused by any one
occurrence) [ifnone stated the insured liability shall be
not less than RMt million]
Insurance deductible amount [if none stated shall be not 19.1 and 20.A or RM ...................... .. ........... ......... ..
more than RM50,000 an occurrence] 20.BorZO.C
Percentage to cover Professional fees for reinstatement 20.A or 20.B or RM ............................................. .
[ifnone stated is a sum equivalent to 10% of the 20.C
Contract Sum]
Amount for removal of Debris [if none stated is a sum 20.A or 20.B or RM ............................................. .
not less than the equivalent of l % of the Contract Sum] 20.C
Value of existing structure together with all the contents 20.C RM ............................................ ..
owned by the Employer or for which he is responsible
Date of Commencement -21.0
Completion Date 21.0
Liquidated Damages 22.0 at the rate of RM .................... per Day ·
. Sectional Completion("') 21;0
Brief description of section of the Work Date of Completion Date (21.0) Liquidated Damages at
Commencement (21.0) the rate of (22.0)
RM ................ perDay
2 RM ................ perDay
3 RM ................ perDay
Period of Delay [ifnone stated is a continuous period of 21.0 and 26.0

three (3) Months]
Interim Claim Interval [ifnone stated is one (1) Month] 30.1 and 30.13
Period of Honouring Certificates [if none stated is 30.1
twenty one (21) Days from the date of the Certificate]
Percentage of the value of materials and goods included 30.2
in the Certificate [ifnone stated is 100%]
Percentage of Certified Value Retained [if none stated 30.5
is 10% of the value of work executed and materials on
site included in the certificate subject to the Limit of
Retention Fund]
Limit of Retention Fund [if none stated is 5% of the 30.5 RM ............................................ ..
Contract Sum]
Period to complete the Final Account [if none stated 30.10
shall be fifteen ( 15) Months from the date of Practical
Completion]
Amount of Performance Bond [if none stated is 5% of 37.1 RM...............................................
the Contract Sum]
(*)Footnote - This is to be used when there are different completion dates/or identified sections or parts ofwor/cy

Agreement And Conditions
Of
PAM Contract 2006 (Without Quantities)
Between
.............................................................................................
.............................................................................................
And
Dated the .·............. day of .......................... 20 .......... .
This Form is issued under the sanction and approval of

Pertubuhan Akitek Malaysia
© Copyright of Pertubuhan Akitek Malaysia

4 & 6 Jalan Tangsi
50480 Kuala Lumpur, Malaysia

PAM Contract 2006 (Without Quantities)

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Agreement And Conditions

·PAM Contract 2006

Parties to agreement and their addresses

The nature of the works and the location

Article l Contractor's Obligations 2

Article 2 Contract Sum 2

Article 4 Engineer 2-3

Article 5 Quantity Surveyor 3

A1ticle 6 Specialist Consultant 3

Article 7 Definitions 4-7

Attestation/Signatories Of The Parties 8

The Conditions Of Contract

1.0 Contractor's Obligations 9

2.0 Architect's Instructions ('Al') 9

3.0 Contract Documents, Programme And As-built Drawings 9

4.0 Statutory Obligations, Notices, Fees And Charges 11

PAM Contract 2006 (Without Quantities) (i)

4.3 Conforming to statutory obligations 11

5.0 Levels And Setting Out Of The Works 11

7.0 Royalties And Intellectual Property Rights 12

8.0 Site Agent 12

9.0 Access To The Works 13

10.0 Site Staff 13

11.0 Variations, Provisional And Prime Cost Sums 13

12.0 Quality And Quantity Of The Works 15

13.0 Contract Sum 15

14.0 Materials And Goods 15

15.0 Practical Completion And Defects Liability 16

PAM Contract 2006 (Without Quantities ) (ii)

15.5 Instruction to make good Defects 17

16.0 Partial Possession By Employer 17

17.0 Assignment And Sub-Contracting 18

20.A Insurance Of New Buildings/Works - By The Contractor 20

20.B Insurance Of New Buildings/Works - By The Employer 21

20.C Insurance Of Existing Building Or Extension - By The Employer 22

21.0 Date Of Commencement, Postponement And Date For Completion 23

22.0 Damages For Non-Completion 23

23.0 Extension Of Time 24

PAM Contract 2006 (Without Quantities) (ii i)

23.3 Insufficient information 24

25.0 Determination Of Contractor's Employment By Employer 28

26.0 Determination Of Own Employment By Contractor 30

27.0 Nominated Sub-Contractors 32

28.0 Nominated Suppliers 34

PAM Contract 2006 (Without Qu antities) (iv)

29.0 Works By Craftsmen, Tradesmen Or Other Contractors Employed Or Engaged By Employer 36

30.0 Certificates And Payment 36

31.0 Outbreak Of Hostilities 39

32.0 War Damage 40

34.0 Adjudication And Arbitration 40

PAM Contract 2006 (Without Quantities) (v)

37.0 Performance Bond 43

38.0 Governing Law 43

PAM Contract 2006 (Without Quantities) (vi)

This Agreement is made on the ............................................ day of .............................................. 20 ................ ...... .

. . .. . . . . .. . .. . . . . . . .... . . . . .. . . . . .. . . . . . . . .. . . . . .... . . . . . . . . . .. . . .................................................................... (hereinafter called 'the Contractor').

(hereinafter called 'the Works') at ...................................... .. ...................................................................................................... .

And Whereas the said drawings numbered ....................................................................................................................... ..

(*)Brief description ofthe Wol'l<s.

PAM Contract 2006 (Without Quantities)