Beza PWD Dan Pam
Beza PWD Dan Pam
Beza PWD Dan Pam
Standard form of contract for government & Standard form of contract for private sector &
public sector project traditional general contract
JKR/PWD covered all building & engineering PAM covered building work only
work
This form of contract contains no expressed provision that allows the Contractor to suspend
the works if his payment was unduly delayed or he is not getting his payment at all.
In the PWD203A Form of Contract (2007), it is stipulated that the period for honouring the
certificate is 30 days from the date of the issuance of the certificate. Clause 30.1 of the PAM
Form of Contract (2006) stated that the period of honouring certificate is within 21 days after
the issuance of the certificate. Any payment made later than the stipulated time frame can be
considered as late or delayed payment.
There is no express provision that permits the Contractors to suspend his work when he is not
paid, or his payment was not forthcoming in due time after receiving the Interim Certificate
.Clause 25(1)(ii) and Clause 23.4 state that the Contractor is to proceed regularly and diligently
and he is to use his best endeavours to prevent delay. The clauses clearly demand the Contractor
to show a good performance and continue with the work to prevent disruption to the progress
of the project.
But the new PAM 2006 contains provision that give the Contractor to suspend the progress of
work if the Contractor is faced with problem of delayed or non-payment by the Employer. It is
clearly stated in Clause 30.7. But it requires the Contractor to give a written notice to Employer
with reason to suspend the works until the Employer has paid the amount due to the Contractor.