CL 1.0 Contractor's Obligation CL 10.0 Obligations of The Contractor
CL 1.0 Contractor's Obligation CL 10.0 Obligations of The Contractor
CL 1.0 Contractor's Obligation CL 10.0 Obligations of The Contractor
Cl. 1.1 Completion of The contractor shall obey the rules in a) Carry out all the works including There are no big
Works in the contract documents providing the test and commission works differences between the
two contracts about this
accordance with materials, goods, and the quality of according to the specification
clause, only that in PWD
Contract workmanship according to the and details stated in the Contract the Contractor that
Documents Contract Document and/or required by Drawings and Documents. carried out the works
must be benefited to the
the Architect in accordance with the b) Carry out the works with a good
Government. Most of the
clause of the Contract. attitude and good management description will be the
practice to give the best to same as saying all the
works must follow what
benefit the Government.
is stated in the Contract.
c) Taking the correct ways to carry
out the works as Contractor
producing works that are comply
with the requirements of the
Contract
d) Carry out the works and take on
the responsibility that are stated
in the Contract with a
professional angle of viewing
things and doing the works,
essential skills, care and
diligence. The Contractor shall
follow and provide the correct
and proper procedures that are
agreed in the form by the
Government to prevent disputes
in later stages.
e) Make sure all the works that are
carried out during the
construction stage are in a proper
manner and always protect the
Government’s interest, and take
necessary actions to prevent
abuse or uneconomical use of the
facilities, if not, the Government
may take action on the
Contractor.
f) Inform the Government of any
event that would affect the works
and cause delays or loss
immediately in writing. The
written notice by the Contractor
will not lift the responsibility of
the Contractor.
g) Have and maintain the number
of qualified competent personnel
to perform the works during the
whole construction period.
h) Have and maintain the
equipment and materials at its
own cost that are necessary to
carry out the proper and quality
of the works.
i) Give orders and supervise its
staff and subcontractors when
carrying out repairing works and
all other works that are related in
the Contract.
j) Rectify any defects that appear
during the defect liability period
k) Perform any other duties under
this Contract.
Cl 1.2 Temporary work The adequacy, stability and the safety There is no provisions similar to the There is not much
and construction of all temporary works and the method clause in PAM 2018 under PWD 203A difference between the
two (2) clauses from
method statement used to carry out the works PAM 2018 and PWD
are all the Contractor’s responsibility, 203A. The minor
difference is that, in
unless the designs are all from the
private projects, there
Architect or Consultant, not taking in may be temporary works
account of any approval by the carried out by the
Contractor and he may
Architect or Consultant
be borne with the
responsibility, unless
design is form the
consultant. In PWD
203A there is no clause
stating of temporary
works, it may be that the
designs are all from the
consultants, therefore the
responsibilities are on
them rather than the
Contractor.
Cl 1.3 Contractor’s If there are any design details not There is no provisions similar to the There is no provision of
design and being stated in the contract, the clause in PAM 2018 under PWD 203A this clause in PWD that
the designing of the
responsibilities Contractor may propose any
works will be the
alternative designs to the works as responsibility of the
long as it is suitable. The design will government, therefore
the Contractor will not be
be the Contractor’s only design not to
needed to do the
use by others unless permitted. The designing works.
Employer must use the design and the
alternative design for the completion,
maintenance, repair and future
extension of the works. Even Though
the design was accepted by the
Architect and the Consultant, the
Contractor still held the responsibility
of the works under the contract.
Cl 1.4 Discrepancy or The works that are to be executed by 8.2 b) If the Contractor notices of any The only difference
divergence the Contractor shall be using the difference between the two or more between the 2 contracts
about this clause is that,
between Contract Documents issued by the Contract documents and any differences
the written notice is
documents Architect. If during the planning stage of any part of them, he shall given to the Architect in
that the Contractor release the immediately given a written notice to the PAM contract while
the written notice is
documents are having discrepancy or the S.O stating the divergence and the
given to the S.O in the
divergence, he must give a written S.O shall issue instructions to the PWD contract.
notice to the Architect in a sufficient specific issues so that the disputes will
time before the commencement of the not spoil or affect the quality of this
project stating the works that are Contract
affected by discrepancy or divergence
in a period where the issue does not
affect the progress of the affected
works. The discrepancy or divergence
will not spoil the quality of the
Contract.
Cl 2.0 Architect’s
Instruction
Cl 2.1 Contractor to The contractor shall follow all the There is no provisions similar to the The reason that there are
comply with AI instructions that are issued by the clause in PAM 2018 under PWD 203A three (3) similar clauses
of PWD to PAM is
architect which comply with clause 2.2
clause 3.0 The S.O and
and 2.3, as the Architect is liable to S.O’s representative 4.0
issue the instructions. S.o’s right to take action
and 5.0 S.O’s
instructions. This is
because in a government
project, the role of the
Architect in Contract
Administration is borne
by the Superintendent
Officer (S.O). In a
government project,
anyone with much
experience can be
appointed as the S.O,
even a Contractor.
Cl 2.2 AI No matter what the instructions are, as There is no provisions similar to the The instruction is to be
long as it is in a written form, it should clause in PAM 2018 under PWD 203A given by the S.O in
PWD, this is because that
be stated as the Architect's instruction.
the S.O are taking the
Drawing and all forms of written role of the Architect by
documents by the architect is the giving instructions to the
Contractor.
Architect’s Instruction (‘AI’). AI is:
Cl 2.4 Failure of If the Contractor does not comply with There is no provisions similar to the It is compulsory that the
Contractor to the Architect’s Instruction following clause in PAM 2018 under PWD 203A Contractor must follow
the instructions of the
comply with AI the time of compliance of not less than
S.O as the S.O will be
7 days, the Employer may hire another talking for the
contractor to carry out the works. The government, therefore
PWD does not have this
cost of hiring the other Contractor with
clause because that the
any additional cost will be borne by contractor following the
the old Contractor and be set-off by instructions of the S.O is
a must.
the Employer under Clause 30.4.
Cl 3.1 Contract All the Contract Documents are There is no provisions similar to the
Documents interrelated. If there is any dispute, clause in PAM 2018 under PWD 203A
conflict or any inconsistencies
between any of the Contract
Documents, the way of going through
the documents are like the following:
3.1(a) the Letter of Award;
3.1(b) the Articles of Agreement;
3.1(c) the Conditions of the Contract;
3.1(d) the Contract Drawings;
3.1(e) the Contract Bills; and
3.1(f) other documents that are
legalised in the Contract Documents,
unless stated clearly to be excluded in
any of the Contract Documents.
Cl 3.2 Custody of tender The original documents should be kept 8.1 Custody of the Contract The difference of the
documents and protected by the Architect or Documents clause is that, the
contract administrator is
Quantity Surveyor so that checking of a) There should be two (2) original
not the Architect in the
the documents by the Employer and copies of the Contract and shall government projects.
the Contractor can be carried out when be kept by the S.O and the The custody of the
Contract documents are
it is needed. Contractor.
not the same as in PAM
2018, it is by the
Architect or the Quantity
Surveyor, and in PWD
203A, it is by the S.O
and the Contractor.
Cl 3.3 Copies of After the letter of award is being 8.1 b) Straight after the start of the The difference of these 2
Documents awarded to the contractor, within Contract, the S.O shall provide to the clause is only the
duration stated and in
fourteen (14) days or any date that is Contractor without any cost, unless
PWD, it will provide 2
discussed or agreed between the previously provided, with: copies of further
Architect and the Contractor, the i) two (2) copies of the Contract drawings and 1 copy of
the priced Bills of
Architect and the Quantity Surveyor Drawings; and
Quantity.
shall provide the Contractor with the ii) two (2) copies of the unpriced Bills
documents without additional cost: of Quantities and one (1) copy of the
priced Bills of Quantities if the
3.3(a) two (2) copies of the Contract Contractor requests.
Drawings; and a) The S.O shall provide the
3.3(b) two (2) copies of the unpriced Contractor two (2) copies of
Contract Bills. further working drawings or
detailed drawings without any
Within fourteen (14) days after cost if necessary to specify and
enforcing the Contract, The Architect explain the Contract Drawings
or Quantity Surveyor shall also enabling the Contractor to carry
provide the Contractor one (1) signed out works and complete it
copy of the Contract Documents according to the Contract. The
without extra charges. works that are provided in the
working drawings are not to be
out of the responsibilities of the
Contractor said in the Contract
Documents.
Cl 3.4 Further drawings of If required, the Architect should There is no provisions similar to the In government projects,
there may be only few
details provide the Contractor two (2) copies clause in PAM 2018 under PWD 203A
further drawings needed
of the further drawings, details, levels during the construction
as Government projects
and any other information without any
will be planned
cost. The provided drawings are according to their needs,
therefore variations will
mandatory to explain and show the
be lesser or even none.
details of the contract drawing to let
the Contractor complete the works
following the rules. If the Contractor
request for any further drawings,
details and levels and any other
information , he must state clearly
write to the Architect for the things
that he need in a reasonable time
before the construction starts and the
works that are stated will affect the
works, that to provide time for the
Architect to issue (‘AI’) within a time
frame and so that it would not delay
the construction that will more likely
to affect the Completion Date.
Cl 3.5 Works Programme Within twenty-one (21) days of Letter 12.1 Within the fourteen (14) days from The number of days of
of Award or any date agreed by the the receipt of the letter of Acceptance by submission of the Works
the Government, the Contractor shall Programme is different
Architect by writing, the Contractor
submit the following documents to the as in PAM 2018, it is
must provide his information to the S.O for approval - within twenty-one (21)
Architect, 6 (six) copies of the master days or any other agreed
a) A work programme for carrying date, as for PWD 203A,
work programme, if not, follow the
out the works with details which it is within fourteen (14)
numbers that are stated in the contract. will be checked by the S.O days or any agreed date.
The work programme should follow showing the detailed activities of
the Works, so that the The number of copies of
all the rules and instructions that are
Government will be able to the master work
stated in the Contract Documents. If monitor the work progress by programme in PAM is 6
the Architect sees that there are works referring to it. copies, while in PWD
that are delayed, he may order the b) A simple description in writing there is no specified
of what are the method amount.
Contractor to revise the Work statements used in the
Programme. The Contractor is construction to carry out the The amount stated 6
Works. copies is for all the
responsible to provide the Architect consultants to review to
the same amount of the revised copies check whether it is
suitable for the works to
of the work programmes and no extra continue and no other
charges to the employer. disputes in the later time.
Cl 3.6 Programme not part The Work Programme is not part of There is no provisions similar to the It does not have the
clause in PWD that the
of Contract the contract even though it is included clause in PAM 2018 under PWD 203A
government will already
in the Contract Documents. acknowledge that the
master works programme
will not be a part of the
contract.
Cl 3.7 Architect’s After the Architect has accepted the 12.5 The Work Programme submitted The only difference
between the clause is
acceptance of Works Programme, the responsibility , and approved by the S.O or S.O’s
that the acceptance of
programme duty of the Contractor is not being representative or the documents given to the programme in PAM
is the Architect while in
transferred to the Architect. The the Contractor will not lift or remove the
PWD is the S.O.
Works Programme is for the Architect Contractor’s duties and responsibilities
to monitor the progress of the under this Contract.
construction. The Architect will
depend on the master programme on
whether to issue extension of time due
to the delay or the disturbance that
causes delay to the Works.
Cl 3.8 Availability of The Contractor must keep a copy of 8.1 d) The Contractor shall keep one (1) The difference of this
clause is that the
documents the Contract Drawings and the copy of the Contract Documents, the
contractor can keep 1
unpriced Contract bills on the site in Specification (if any), unpriced Bills of copy of the priced bill of
quantities.
case the Architect, Consultant and the Quantities, priced Bills of Quantities (if
authorised person needs it. any) and other documents stated in the
sub clause (c) in the site, and the S.O
have the power to access the documents
when necessary.
Cl 3.9 Limitation of use of All the Contract Documents that are 8.1 f) None of the documents that are There is no difference in
this clause as the
documents stated in Clause 3.1 cannot be used by stated be used by the Contractor for any
documents of the
the Contractor for any other purposes other purposes other than this Contract. contract are confidential
to outside parties.
other than the Contract. Unless it is the
purpose of the Contract, the involved
parties cannot expose any of the rates
and the prices in the Contract Bills to
any other party.
Cl 3.10 As-built Drawings The Contractor must supply and also There is no provisions similar to the The as-built drawings
will be done by the
and operation and order the Nominated Sub-Contractor clause in PAM 2018 under PWD 203A
quantity surveyor of the
maintenance t6o give As-built Drawings and/or government to get proper
information, because the
manuals operation and maintenance method
quantity surveyor is hired
specified in the Contract Documents by the government.
and/or the Nominated Sub-Contract
Documents within a specified
timeframe. Where there is no stated
number of copies needed, The
Contractor must give and order the
Nominated Sub-Contractor to give
four (4) copies of the items stated
before the Completion Date.
Clause 11.0 Variations, Provisional and Prime cost sums
Cl 11.2 No Variations An AI can be issued by the There is no provisions similar to In PWD203a, it does not
required by Architect either to order a the clause in PAM 2018 under have this clause as the
contractor has to follow
Architect shall Variation or to approve a PWD 203A
the instructions of the S.O.
vitiate Contract Variation made by the Contractor.
In no event shall any
Architect-ordered or
Architect-approved Variation
render the Contract null and void.
All Directed Variations should
Be undertaken by the main
contractor with due diligence and
expedience pending assessment.
Cl 11.3 Issue of The Architect reserves the right to There is no provisions similar to
Variations after offer written instructions seeking the clause in PAM 2018 under
Practical a Variation prior to the issue of a PWD 203A
Completion Certificate of Practical
Completion.After that point, any
AI that needs a Variation must do
so in order to fulfil its
commitments to, or meet the
requirements of, any applicable
Appropriate Authority and
Service Provider.
CL 11.4 AI on P.C. Sums When P.C. Sums and Provisional 34.2 The S.O. may direct the use of
Architect is the party who
and Provisional Sums are included in Contract the Provisional Amount at any time issued the AI for the use of
Sums Bills, the Architect is obligated to and in any amount. If all or part of P.C. and Provisional Funds
offer advance Instructions. as well that amount is not used, it will be in the PAM.
as P.C. Sums resulting from subtracted from whatever you
On the other hand, S.O. is
instructions issued for the agreed upon as the Contract
in charge of allocating P.C.
expenditure of Provisional Sums. Amount.
Sum and Provisional Sums
Provisional Sums shall be
for the PWD form.
calculated based on the value of
the Contractor's work as
determined in line with clause 25
hereof. All such Provisional Sums
shall be reduced or increased by
the value of the work performed by
the Contractor, as the case may be,
with any remaining amount being
applied to or subtracted from the
Contract Sum.
CL 11.5 Valuation of The Quantity Surveyor is 27.1 When the S.O. needs any part
The difference between
Variations and responsible for measuring and or parts of the Works to be
this two clause is The
Provisional valuing all Variations. In order for measured or remeasured for
Sums the Architect and Quantity clauses of Variation under clause quantity surveyor will
Surveyor to determine the cost of 24 and provisional quantities under measure and evaluate all
the Variations, the Contractor clause 26.5, he must give changes. After the
must provide them with as many reasonable notice to the Contractor. completion of the change,
specifics as they request. The The Contractor must then attend or the contractor must
Contractor shall provide the send a qualified agent to help the provide the architect and
Quantity Surveyor with such S.O. or S.O.'s Representative make quantity surveyor with all
assistance as may be necessary to such measurements and must give the necessary information
carry out the works, and the the S.O. all the information he to evaluate the change in
Contractor shall be given the needs. If the Contractor doesn't PAM 2018. In PWD, S.O.
opportunity to be present to take show up or doesn't send an agent, requires that any portion or
such notes and measurements as the measurement made by the S.O. portions of the Works be
he may require, whenever any or approved by him will be taken measured or remeasured
recording of site information as the right measurement of the for the purposes of clauses
and/or site measurements is work. of Variation in accordance
carried out at the Site. Quantity with clause 24.If the
Surveyor shall notify Contractor Contractor doesn't show up
of any deficiency in his or doesn't send out the
submission and may require agent, then the
Contractor to provide such further measurements made by the
details and particulars within S.O. or with his approval
twenty eight (28) Days from
receipt of Contractor's submission will be considered right.
if Quantity Surveyor determines
that Contractor's submission is
insufficient to enable him to carry
out the measurement and
valuation. Quantity Surveyor shall
measure and value the Variations
within 30 days or any other longer
term as agreed between the
Architect and Contractor once
Contractor has supplied adequate
data and particulars.
CL11.6 Valuation rules The valuation of Variations and 25.1 All changes directed by the Clause 11.6b of the PAM
work performed by the Contractor S.O. in writing. Pursuant to Article says that if the work is
for which a Provisional Quantity 24 of this agreement, the measured similar to the work
is included in the Contract, as and valued by S.O. changes in described in the contract
well as the expenditure of valuation, unless prior or otherwise document, but isn't done in
Provisional Sums (other than for agree, the following rules shall the same way or under the
work for which a bid was apply: same conditions, or if it is
accepted pursuant to Clause done in the same way, but
27.14), shall be made in (a) Rates in the adjusted Bill of the amount of work done,
accordance with the following Quantities stipulated in terms, if the rate, and the price in
rules: necessary 26.6 and 26.7 shall the contract have changed
11.6(a): Where work is of a determine the valuation and in a big way, the document
similar nature, is performed The performed in conditions similar to will be used as Determine
rates and prices in the Contract the work priced therein; the basis for the valuation,
Documents shall be used to assess which should include an
the value of any additional work, (b)If the nature of the work is arm's length adjustment for
is completed under similar different or there is no similar interest rates to take into
conditions to, and does not work under the above conditions, account these differences.
significantly alter the quantity of the said rate shall serve as the basis
Moreover, , the contractor
work as set through in the for the same rate,to the extent that
can add 15% to the actual
Contract Documents; they are reasonable, failing which
cost of his material,
the so. a fair valuation must be
made; additional construction
11.6(b): Where work is of a (c) this valuation of the missing plant and scaffolding,
similar character to work as items is determined by the rates in labour and transport. This
described in the Contract The the Bill of Quantities, unless the 15% shall covering for the
rates and prices in the Contract omissions substantially alter the use of all tools, standing
Documents shall be the basis for conditions for performing any scaffolding, standing
determining the valuation, which remaining work, in which case the plants, supervision,
shall include a fair adjustment in rates of these remaining items are overhead. There are
the rates to account for the evaluated in accordance with rule difference on the duration
difference; (b). Contractor shall produce
vouchers, receipts and
11.6(c), Valuation shall be at fair 25.2 When the work cannot be wage books specifying the
market rates and prices assessed properly measured or priced, the time for labour and plant
by the Quantity Surveyor where S.O. may use the daily work rates employed and materials
the work is not of similar nature in the appendix. Unless otherwise used no later than fourteen
to work as set stated in the stated in the Bill of Quantities, the (14) days not exceeding
Contract Documents; daily work price for this contract is seven (7) days after the
the actual net cost of materials, work shall have been
11.6 (d), the Contractor shall be equipment and labor paid by the done.stated at pam 2018
permitted: Contractor for the performance of ,clause 11.6(d)(ii) and pwd
the relevant work. The contractor 203A , clause 25.2.
11.6 (d) i. the dayrates specified will be paid the day rate + 15%
in the cotract agreement; or which includes the cost of all
normal equipment, tools,
11.6 (d) ii. in the absence of the scaffolding, supervision and
rates specified for such daywork profits. It has always been stated
through the contracted that, in order to be paid, the
documents, plus fifteen percent contractor must produce vouchers,
(15%), and this percentage shall records and paybooks showing
cover for the use of all time spent on labor and equipment
equipment,scaffolding , plant, and materials used for S.0 within
profit , overhead and supervision. seven (7) days of completion of the
work.
In any event, the daily use time of
on-site staff should be specified.
The on-site agent or staff need to
sign and verify the staff’s name,
extra construction plant
,scffoldding materials, and
transportation tools . it must be
handed over to the quantity
surveyor and architect at weekly
intervals, with the final
documents delivered within
fourteen (14) days of the
completion of the work.
CL11.7 Additional A claim can be made by the There is no provisions similar to There is no clause
expense caused Contractor if a Change has caused the clause in PAM 2018 under regarding additional cost
by Variation or is expected to cause them to PWD 203A caused by the variation in
incur additional costs for which PWD 203a.
he would not be reimbursed under
Clause 11.6. for those extra costs,
as long as:
CL 11.8 Access to The Contractor must provide the There is no provisions similar to In PWD 203a, there is no
Contractor’s Architect and Quantity Surveyor the clause in PAM 2018 under mention of any claim for
books and with contemporaneous records to PWD 203A additional costs charged by
documents support Clause 11.7 claims for the contractor under the
additional charges. When variation.
requested, the Contractor shall
provide a complimentary copy of
all books, documents, reports,
papers, and records relevant to the
claim to the Architect and
Quantity Surveyor. This clause
requires these documents to be
available until all claims are
settled.
The Contractor shall make all
similar documents in the
possession, custody, or control of
subcontractors and suppliers that
are relevant to the claim available.
CL11.9 Variations and Onces the Architect and Quantity 25.3 The amount of changes must Under Clause 11.9 of
additional Surveyor have determined the be certified by the S.O. and added PAM 2018 and clause 25.3
expenses added amount of Variations and/or to or removed from the Contract of PWD 203a noticed that
to Contract Sum additional expenses claimed by Sum as appropriate, and the The amount of the changes
the Contractor pursuant to Clause amount must be adjusted will added to the contract
11.7, that amount shall be added accordingly. sum.
to the Contract Sum. When an
Interim Certificate is issued after
the date of determination, this
amount must be reflected on the
certificate.
Clause 15.0 Practical completion and defects liability
CL 15.1 Prctical The works are nearly done when: 39.5 The Works will not be
Clause of the 15.1(a), The
Completion 15.1(a) in the Architect's thoughts, considered practically
Employer may utilise the
the Employer can use the Works for complete until the following
Works for their intended
their intended purposes, even though conditions have been met:
purposes despite minor
there may be minor works and defects (a) the Work has been
works and defects that
to be executed and the Contractor has completed in accordance with
remain to be performed.
given the Architect a written the terms and conditions of
undertaking to make good and this Agreement; In clause 39.5 in pwd203a ,
complete such works and defects Governments have the
within a reasonable time specified by (b) Governments are permitted ability to use works
the Architect; and to use works fully, correctly, accomplish their intended
and advantageously to achieve purpose, despite the fact
15.1(b) additionalcontractual their intended purpose, despite that the provision of
requirements for the Certificate of the fact that the provision of somewhat deficient works
Practical Completion have been met. works that are somewhat does not prevent or limit
deficient will not prevent or their use in the manner
limit their use as described described above.
above.
The differentiation of
clause 15.1 (b) and clause
39.5 (a) is that PAM form
requies a extra cotructual
requriement, but in pwd
203a all work is simply
done according to the terms
and conditions of the
contract.
CL 15.2 Cetificate of Upon Practical Completion of the 39.2 The Contractor must
In pam 2018 noted that the
Prctical Entire Work, the Contractor shall inform the s.o. in writing if it
the Contractor is required
Completion immediately notify the Architect in determines that practical
to provide a written notice
writing. Within fourteen (14) days, completion has been reached.
to the Architect if the work
the Architect shall do one of the
can be used for a beneficial
following: 39.3 The S.O. shall conduct
purpose. On the opposing
15.2 (a) If the Architect determines testing/inspection of the
side, in the PWD form, the
that the Works have not been Works within 14 days of
Contractor is required to
Practically Completed in accordance receipt of such notice. Based
provide the submission to
with Clause 15.1, he must notify the on the results of these checks,
the S.O.
Contractor in writing (with a copy to the S.O. will do the following:
the Nominated Subcontractors) of his a) award the Certificate of Contractor must notify
determination, outlining the basis for Practical Completion to the architect in PAM and PWD
his determination and identifying the Contractor if he believes the forms within 14 days of
specific portions of the project that Works have reached Practical work completion per clause
are unfinished and/or conditions that Completion and passed any 15.2 and 39.3. The
have not been met. S.O. inspection/test. The S.O. Architect's or S.O.'s
will certify the date of approval depends on
In accordance with 15.2(b), the completion, which will start whether or not the job has
Architect shall issue the Certificate of the Defects Liability Period been completed in whole,
Practical Completion if the Architect under Article 48. on time, and in line with
is of the opinion that the Works are the contract instrument, so
Practically Completed under Clause (b) inform the Contractor of the two provisions are very
15.1. Practical Completion shall all defective works that must similar.
occur on: be completed before the
A CPC will subsequently
15.2(b)(i) Date of receipt of Certificate of Practical
be issued by the Architect
contractor's written commitment Completion is issued.
or S.O. to the Contractor.
remedy and complete deficiencies in
the Work and of a minor nature, If the S.O. has issued
where such works and defects exist; instructions under section
or 39.3(b), no CPC will be
15.2(b)(ii) where there are no works awarded to the Contractor
and minor nature . until the S.O. is satisfied that
The Contractor will get the Certificate the Contractor has completed
of Practical Completion, with copies the necessary corrective work
for the Employer and Nominated within an acceptable time
Subcontractors. After the Architect frame.
issues a Certificate of Practical
Completion, the Contractor must turn
over Site possession to the Employer.
CL15.4 Schedule of Any defects in the Works that show 48.1(b) Without affecting (a),
As stated in clauses 15.4
defect up during the Defects Liability Period any defect, imperfection,
and 48.1, the Architect has
will be listed on a schedule of defects shrinkage, or other problem
decided to give the
that the Architect will give to the that shows up during the
Contractor a list of defects
Contractor no later than fourteen (14) Defects Liability Period and
no later than 14 days after
days after the Defects Liability Period needs to be fixed by the
the defect first shows up in
ends. The Contractor is responsible Contractor must be listed in
the DLP.
for fixing the problems listed on the the Schedule of Defects,
schedule of flaws within twenty-eight which the S.O. must give to On the PAM form, the
(28) days of receiving it, or within a the Contractor no later than contractor has 28 days to
longer time period agreed to in fourteen (14) days after the finish the fixes after getting
writing by the Architect. If the Defects Liability Period ends. the architect's list of
Contractor does not fix the Defects, The defects, flaws, shrinkage, problems. The Contractor
the Employer may, in addition to any or other problems listed in the has three months to fix the
other rights and remedies he may Schedule of Defects must be problem on the PWD form
have under the Contract, hire and pay fixed by the Contractor at his
someone else to fix the Defects. own expense and must be
Under Clause 30.4, the Employer will done within an acceptable
deduct all costs from the Contractor's time, but no later than three
payment. If the Architect, with the (3) months after receiving the
Employer's permission, tells the Schedule.S.O. shall not be
Contractor to leave the Defects in the able to give any more
Works, the Employer can take a instructions telling the
discount for the Defects that were not Contractor to fix any defect,
fixed by the Contractor. This is what imperfection, shrinkage, or
Clause 30.4 says. other problem after the
Schedule of Defects is issued
or fourteen (14) days after the
Defects Liability Period ends,
whichever comes first.
CL15.5 Instruction to Even though Clause 15.4 says 48.1(a) Any defect,
There are difference is
make good otherwise, the Architect can send an imperfection, shrinkage, or
when a defect occurs
Defects AI at any time during the Defects other fault of any kind
during the DLP, the
Liability Period to require that any appearing during the Defects
architect the may provide
major defects that need to be fixed Liability Period stated in
an AI or written instruction
right away be fixed within a Appendix hereto (or if none
to the contractor, who is
reasonable amount of time and at the stated, the period is twelve
then obligated to fix the
Contractor's cost. If the Contractor (12) months from the date of
defects within a in PAM
doesn't fix the defects in the time practical completion of the
2018 , while the SO will
given by the architect, the Employer Works), if it results from
provide the with detailed
can hire and pay someone else to fix materials, goods, or
instructions regarding on
the defects, and all of the costs will be workmanship not in
solve the defect in
deducted from the Contractor's accordance with this Contract,
PWD203a.
payment. This is in fact what Clause the S.O. shall issue written
30.4 claims. instructions to the Contractor It will allow reasonable
to make good such defects, time to fix any minor
imperfection, or shrinkage, defects but any additional
regardless of other fault the defect failure costs will be
cost shall be borne by the borne by the contractor in
contractor. The Contractor PAM 2018 and PWD203a.
shall complete each of these
tasks expeditiously or within
the timeframe mentioned by Clause 30.4 of the PAM
the S.O. form says that whenever
the contractor fails to fulfill
the requested, the employer
can find and hire someone
else to finish the work and
make a claim for the
recovery of the contractor's
costs in the event of
noncompliance by the
contractor,but this isn't
written in the PWD form.
CL.23.1 Submission of notice If the contractor thinks that any 43.0 delay & extension of
The submission of notice
and particulars for of the things listed in clause 23.8 time
of EOT is a condition for
extension of time. are or will cause the Works to
the contractor to get the
take longer to finish than the 43.1 If the work is slow, the
EOT from the employer so
Completion Date, he can ask for contractor must notify the S.O
it is a must to have under
more time, as long as: in writing and provide any
clause 23.1.
a) The contractor must records that can help the
write to the architect officer determine the cause But under clause 43 of the
requesting extra time, and duration. if, in the S.O.'s PWD contract, there is no
estimating how much he view, the works are likely to pre-delay notice deadline.
will need, and explaining be delayed or have been No evidence suggests that
the delay. This notice delayed past the date for the application would be
must be sent within 28 completion indicated in fatal without such a
days of the AI, CAI, or Appendix 1 or any extended warning. Hence, Article 43
event start. This formal date determined under this of the PWD Contract's
notice is needed to Subsection due to one or more notice requirement is
extend time. of the following: advisory.
b) The contractor must a) force majeure as
provide the Architect his described in section
final claim for an 58, including war (acts
extension of time within of foreign foes, nuclear
28 days of the end of the explosions, radioactive
delay. If the contractor materials, and others).
fails to submit such b) Exceedingly
particulars within the unfavourable
given time (or within any conditions;
additional term c) The contractor must
authorised in writing by cover, store and
the Architect). The safeguard the work
contractor has evaluated under section 50 even
In PAM contract, the main
that such a relevant if work is suspended.
contractor has to give a
incident will not delay Contractors should
copy of written notice and
the works beyond the retain insurance and
all related info to the
completion date. performance bonds
nominated sub-con. But in
during suspension.
PWD there are no such
CL.23.2 Delay by Nominated The contractor shall immediately d) orders granted by the
requirements so there is
Sub-contractor submit a copy of the written S.O. owing to
nothing to compare.
notification and particulars to problems with adjacent
any Nominated Sub-contractor owners, provided that
mentioned in section 23.1. the Contractor or any The Architect method to
CL.23.3 Insufficient If the Architect is of the opinion nominated issues an EOT to the
information that the contractor's particulars subcontractor did not Contractor are in PAM
are insufficient to enable him to act, fail, or default; contract but not in
decide on the application for e) Under clause 5 of this PWD.No PAM-related
extension of time, the Architect agreement, the provision exists.
shall notify the contractor of any Contractor or any
deficiency in his submission subcontractor, whether
within twenty-eight (28) days of appointed or not, may
receipt under Clause 23.1 (b) and give S.O. instructions,
may require the contractor to provided that they are
provide such further particular not given as a result of
within a further twenty-eight any act, negligence,
days or within such period of default, or violation of
time. this Contract by the
Contractor or any
subcontractor, whether
appointed or not; this
includes discrepancies,
inconsistencies in the
contract document, and
other things.
CL.23.4 Certificate of After receiving adequate f) Owing to the S.O.'s
Extension of Contractor have the duty
particulars, the Architect will failure or default, the
Time and responsibility to
either reject the contractor's Contractor was not
complete the project in
application with reasons or give given the necessary
time without delay. Within
a certificate of extension of time instructions, drawings,
six weeks of sending the
with details within six weeks. or levels for the
written notice, any relevant
The Architect may provide a execution of the Works
activities were claimed in
formal refusal or Certificate of in a timely manner.
the relevant events under
Extend of Time before or after This also applied to the
Cl 23.8.based on the
the Completion Date. S.O.'s nomination of
Clauses 23.5, 23.6, and
subcontractors and/or
Other consideration 23.8 say that architects can
CL.23.5 The following factors may be suppliers as specified
for extension of time refuse to give written
considered by the architect when in this contract. In
notice if they want a time
determining whether to extend consideration of the
extension.
the deadline: Date for Completion
a) the effect or size of any specified in the
work that wasn't done Appendix or any
under the contract, as subsequent extension The Architect must
long as the architect of time fixed under this consider extending time
doesn't set a completion clause, the Contractor from the contractor's
date before the one in the shall, however, have written notification if any
appendix. clearly submitted in activity impacts the amount
b) any other important writing on a date that of work omitted under the
events that, in the opinion was neither contract and does not fix
of the Architect, will unreasonable distant the completion date sooner
change the Contractor's from nor unreasonable than the contract's
right to a time extension. close to the date on completion date under CL
which it was 23.5. (a). The Architect
appropriate for him to believes that relevant
obtain the same; circumstances that may
g) Other than claims in influence the contractor's
CL.23.6 Contractor to The contractor shall use his best effecting insurance and EOT award must be
prevent delay efforts to prevent or reduce delay Performance Bond, the considered.
in the Works and to do contractor shall not be
Some similar clause
everything that may reasonably entitled to claim for
between PAM and PWD
be required to prevent and any loss or damage
reduce delay or further delay in caused by the delay in PWD C43.1 & PAM
the completion of the Works giving possession of C23.8(a):Force majeure
beyond the completion date. the site as given under refers to divine acts like
CL.23.7 Notification to When extending the Completion clause 38.4 hereof, earthquakes, landslides,
Nominated Date, the Architect must notify even if the S.O revised waves, typhoons, etc.
Sub-contractor each Nominated Sub-Contractor the Date for Possession
in writing. and the Date for
Completion.
CL.23.8 Related Events a) Force majeure: event h) delay in
PAM C23.8(g) & PWD
Clause 23.0 specifies becomes impossible, the government-employed
C43.1(g): contractor can
these events. contract becomes void. artists, tradespeople,
submit and request for
b) Exceptionally inclement and others'
EOT if employer fails to
weather: inclement non-contractual labour;
give site possession in time
weather that delays a i) If the Contractor is
to cause delay in work
common carrier's unable to secure the
progress.
scheduled arrival or goods, materials, or
departure, excluding services required for
seasonal/climatic weather the proper completion
fluctuations. of the Works because PAM C23.8(k) & PWD
c) loss and/or damage of events beyond his C43.1(f):If the architect/SO
caused by one or more of control that he could fails to grant AI to the
the contingencies listed not have reasonably contractor after the
receiving required papers If the S.O. considers a delay delayed if there is a social
under articles 3.3 (a) and should be extended beyond the unrest that might impede
3.3 (b): Contractor not date or time specified, he may the completion of the work
receiving AI on time issue a Certificate of Delay at the site because of a
includes PC/Provisional and Extension of Time for the lockout in some areas.
amounts. Works.
f) The contractor not
receiving in time the
essential AI (including PROVIDED THAT none of
those for or in reference these delays are the result of
to the expenditure of P.C any wrongdoing, negligence,
amounts and Provisional default, or violation of
Sums, extra drawings, contract on the part of the
details, levels, and any contractor, the chosen
other information) for supplier, the chosen
which he has specifically subcontractor, or any of their
applied in writing to the employees or agents.
Architect. The
contractor's application PROVIDED ALWAYS that
must be submitted to the the Contractor had taken all
Architect in sufficient appropriate efforts to prevent
time before the start of or minimise delay and would
construction to allow the do all reasonably necessary to
Architect to issue the satisfy the S.O. to continue the
appropriate Approval Works.
within a period that
would not materially
hinder the relevant works'
progress, considering the
Completion Date. Unless
the contractor or Any PROVIDED FURTHER the
subcontractors committed contractor shall not entitled to
negligence, omission, any extension of time when
default, or breach of the S.O. orders or measures
contract, the AI was not are necessary by or intended to
required: The contractor correct any default or violation
did not receive AI that he of contract by the contractor.
had provided to Architect
that contained drawing,
detail, and other
information that could
affect the work and
caused negligence,
omission, default, or
breach of contract by the
contractor or His
subcontractor.
g) Delay by the employer in
handing control of the
site or any part of it
according to sections
21.1 and 21.2: If the
employer delays giving
possession of the site or
portion under clause 21.1
or 21.2, the Appendix
should reflect the
variation in
commencement date.
h) Compliance with
Architect AI clauses 1.4,
11.2, and 21.4: Follow
the Architect's AI under
clauses 1.4, 11.2, and
21.4, including variation
orders and postponing
work suspensions.
i) Nominated
Subcontractors' delay due
to Clause 21.4(a) through
21.4(x) of the PAM
Sub-Contract 2018:
Delay by the Nominated
Subcontractor on Clause
21.4(a) through 21.4(x)
of the PAM Sub-Contract
2018.
j) Clause 27.11
re-nominated Sub-count:
Modify the subcontractor
for clause 27.11 reasons.
k) Delay or failure by the
Employer's craftsmen,
tradesmen, or other
contractors to complete
work beyond the
Contract: Craftsmen,
tradesmen, and other
contractors delay or fail
to fulfil the employer's
contract task.
l) Failure or delay in the
employer's provision of
supplies and goods for
the works: Employer did
not supply material for
works as agreed.
m) Opening up any covered
work for inspection or
testing any materials,
goods, or completed
work according to clause
6.3, unless the inspection
or test:
i) Is written down in the
contract:
ii) shows that the work,
materials, or goods were
not what was agreed
upon or
iii) Is needed by the
architect because the
contractor did something
wrong or broke the
contract.
n) Employer prevention or
contract breach.
o) War damage under clause
32.1.
p) Compliance with clause
33.1 AI related to
antiquities finding: Under
clause 33.1, follow AI
when discovering
antiquities.
q) Compliance with any
modifications to
applicable Authority and
Service Provider laws,
rules, bylaws, and terms
and conditions.
r) Any delay brought on by
a proper authority or
service provider that
prevents the contractor's
work from moving
forward, provided that
the delay is never the
result of any
carelessness, omission,
default, or contract
violation on the part of
the contractor or their
Nominated
Subcontractors.
s) Choosing a substitute
under Articles 3, 4, and
6: selection of substitute
consultants
t) Compliance with AI
issued in disputes with
adjoining property
owners if the
disagreement is not
caused by negligence,
omission, default, or
violation of contract by
the contractor and/or
Nominated
Sub-contractors.
u) Delay due to the
execution of work for
which the Contract Bills
include a Provisional
Quantity that the
Architect believes is not
a reasonable estimate of
the work needed.
v) Inability of the Employer
to grant timely access to
or exit from the site or
any portion thereof over
or over any land, by
means of passage
adjacent to or connected
to the site, and in the
Employer's possession or
control.
w) Contractor's suspension
of his responsibilities
under paragraphs 30.7
and 30.8.
x) Suspension of the whole
or part of the works by an
appropriate authority if
the contractor and/or
Nominated
SubContractor have not
been negligent, omitted,
defaulted, or breached.
y) any other reason for a
time extension that is
clearly indicated in the
contract.
A Certificate of
CL.23.9 Extension of Time After the certificate of Non-Completion tells the
after NonCompletion is issued, the contractor in writing that
issuance of Architect may request an the work has not been
Certificate of Non
extension of time, subject to completed by the last
completion
Clauses 23.1 to 23.7. The agreed-upon completion
extension of time will be added date (which may have
to the Works' Completion Date changed during the works).
or any section's: Architect can However, delays often lead
provide extension of time the completion date to be
following Certificate of missed, meaning the work
Non-completion and pertinent is not finished and a
events that cause EOT. If certificate of practical
Architect cannot determine the completion cannot be
relevant events that trigger EOT issued.
before CNC, the EOT given after
CNC will be added to the
completion date of the works.
CL.23.10 Architect’s review Within twelve (12) weeks of
of practical completion, the
extension of time The PAM form honours
Architect may review and fix a
after Practical certificates 14 days after
later completion date if he
Completion the Interim Certificate's
believes it is fair and reasonable
issuance, but the PWD
in light of any relevant events,
form 203A takes 30 days.
whether upon reviewing a
previous decision or otherwise
and whether or not the
Contractor has specifically
notified a relevant event under
clause 23.1. The Architect's
extension of time will not be
reduced by a final review. If such
later completion date affects the
amount of liquidated damages
the employer is allowed to
retain, he shall repay such
surplus amount to the contractor
within the time of honouring
certificates.
Clause 24.0 Loss and Expenses
CL.24.1 Loss & or expense Where the regular progress of the CL.44 claims for loss and
The Contractor can submit
caused by matters Works or any part of the Works has expense
a claim for such loss and
affecting the been or is likely to be materially
expense as long as both of
regular progress affected by any of the things listed 44.1 If delays as outlined in
the following are true: I the
of the works in Clause 24.3, and the Contractor clause 43.1(c), (d), (e), (f), or
Contractor has incurred or
has incurred or is likely to incur (g) at any point during the
is likely to incur loss
loss and/or expense that could not regular progress of the Works
and/or expense that could
be paid for under any other part of or any portion thereof have
not be covered by a
the Contract, the Contractor can significantly impacted (h), and
payment made under any
make a claim for that loss and/or the Contractor has incurred
other part of the Contract;
expense, as long as: direct loss and/or expense
and (ii) the regular progress
beyond what was reasonably
of the Works or any part of
anticipated and for which the
the Works has been or is
Contractor would not be
likely to be materially
reimbursed by a payment
affected by any of the
made under any other
a) The Contractor shall notify provision of this Contract, the things listed in Clause 24.3.
the Architect in writing of Contractor shall give written
his intention to claim for notice to the S.O. within thirty
such damage and/or expense (30) days.
and provide an initial
estimate of his claim with 44.2 As soon as is practically
all appropriate calculations. possible, but no later than
The notice must be given ninety (90) days after the
within 28 days of the AI, practical completion of the
CAI, or the start of Section Works, the Contractor shall
24.3 issues, whichever is submit full particulars of all
earlier.The Contractor must claims for direct loss or
give written notification expense under clause 44.1.
before claiming damage or This information must be
expense under the Contract provided along with all
or Common Law. necessary supporting
documentation, vouchers,
explanations, and calculations
that may be needed to allow
the S.O. to determine the
direct loss or expense and add
it to the Contract Sum.
b) The contractor must give the 44.3 Contractors are not
architect and quantity permitted to make claims
surveyor comprehensive under clauses 44.1 and 44.2,
details of his loss and and the government is
expense claim and all absolved of all responsibility
necessary calculations in relation to such claims.
within 28 days of the clause
24.3 proceedings ending. If
the contractor fails to submit
the required particulars
within the indicated time (or
within such extended period
as may be approved in
writing by the architect), he
waives his claims for loss
and expenditure.
CL.24.2 Access to The Contractor must keep
contractor’s up-to-date records of all his claims
The books and documents
books and for loss and/or expense and give the
of the contractor are quite
documents Architect all the details. The
significant. This is critical
architect and quantity surveyor
documentation for claiming
should be able to look at any
damages to ensure that no
important books, documents,
work position is lost.
reports, papers, or records that are
in the possession, custody, or
control of the contractor. When
asked, the contractor should give
the architect and quantity surveyor
a free copy of each item. This
clause says that all of these
documents must be available until
all of the claims have been settled.
The Contractor must do his best to
make sure that all relevant
documents that are in the
possession, custody, or control of
subcontractors and/or suppliers are
also available.
CL.24.3 Matters Below are matters referred to
materially CL.24.1:
The contractor is
affecting the
responsible for adhering to
regular progress a) Clauses 3.3(a) and (b) not
all of the regulations,
of the works being met because the
including 44.1 and 44.2;
Contractor didn't get the
failing to do so may result
necessary documents on
in the contractor being held
time;
liable for significant
b) the Contractor not receiving
damages.
in time the essential
Documentation (including
those for or regarding the
expenditure of P.C. Sums
and Provisional Sums, extra
drawings, details, levels,
and any other information)
for which he has specifically
applied in writing to the
Architect. The Contractor's
application must be
submitted to the Architect in
sufficient time before the
affected works begin to
allow the Architect to issue
the appropriate AI within a
period that would not
materially impact the
affected works' progress,
considering the Completion
Date. Unless the Contractor
and/or Nominated
Sub-Contractors were
negligent, omission, default,
or in breach of contract, the
AI was not necessary.
c) delay by the Employer in
giving site possession of the
Site or any section thereof
in accordance with Clauses
21.1 and 21.2;
d) comply with a written
directive from the Architect
to postpone or suspend all
or part of the Works under
Article 21.4;
e) delay by craftsmen,
tradesmen, or other
contractors employed or
retained by the Employer in
executing work not part of
the Contract or failure to
execute such work;
f) delay or failure in the
Employer's provision of
supplies and goods for the
Works;
g) the opening for inspection
of any work that has been
covered up, testing of any
materials and goods, or
work that has been done in
accordance with Clause 6.3,
unless the inspection or test
shows that the works,
materials, and goods are not
in line with the contract or is
needed because of the
contractor's negligence,
omission, default, or breach
of contract.
h) if the Employer does
something to stop the work
or breaks the contract,
i) delay because of a notice to
comply with AI about
finding antiquities under
Clause 33.1; 24.3(ji)
appointment of a
replacement Person under
Articles 3, 4, 5, and 6;
j) appointment of a stand-in
for Articles 3,4,5 and 6
k) compliance with a written
instruction from the
Architect about a dispute
with a neighbouring
property owner, as long as
the dispute wasn't caused by
negligence, omission,
default, or breach of
contract by the Contractor
and/or Nominated
Sub-Contractors;
l) due to the fact that work
was done for which a
"Provisional Quantity" was
written on the Contract
Bills, but the architect didn't
think it was a good estimate
of how much work would
be needed.
m) failure of the Employer to
allow timely admission to or
exit from the Site or any
part through or over any
land neighbouring or linked
to the Site and in its custody
or control;
n) suspension of Clauses 30.7
and 30.8 by the Contractor;
and
o) a proper authority can stop
all or part of the work if the
employer, architect, or
consultant did something
wrong or didn't do what
they were supposed to.
CL.24.4 Loss and expense The Architect or Quantity Surveyor
to be included in will calculate the loss and expense
certificate if the Contractor follows Article
24.1. Any amount ascertained from
time to time for such loss and/or
expense shall be added to the
Contract Sum and included in the
Interim Certificate if issued after
ascertainment.
Clause 26.0 Determination of Own Employment by Contractor
Cl. 26.2 Procedure for If theLLcontractor chooses to 55.0 Events and In terms of procedure,
Determination determineLLhis own employment, Consequences of Default by PAM contract requires that
uponLthe occurance of anyLdefault the Government the parties comply to a set
according to Clause 26.1, the of actions that involves the
contractor shall submit a written Default of Obligations issuing of a show-cause
notice to the employer byLhand notice and a chance for the
(b) Termination
delivery or registered post employer to make good
identifying the default. TheLcontractor shouldLhave before the contract is
TheLContractor may determine his the right toLLterminate this terminated. As for PWD
own employment at once according contract at onceLby issuing a 203a, if the government
to the contract by giving another written notice toLthat effect if fails to rectify the default
written noticeLdelivered byLhand the government fails to rectify in a specific period, the
or registered mail within theL10 the defaultLperiod mentioned contractor will have the
days ofLLthe expiration of the in the suchLnotice imposed rights to terminate the
original 14-day period following underLClause 55(a) within the contract by issuing a
the receipt of such written notice if specificLperiod. written notice to the
theLLemployer continue in such government.
default. As long as the notice isn’t
issued in an unreasonable and
frustrating manner.
Cl. 26.4 Rights and Duties TheLfollowing areLtheLrespective No Provision In Clause 55.0 of PWD
of Contractor and rights and dutiesLof the contractor 208a, it does not state the
Employer and employerLin the circumstance rights and dusties of the
thatLLthe employmentLLof the contractor and employer
contractor isLdetermined according since the employer in PWD
to Clause 26.1 and 26.3: 203a is the government.
26.4(a) Thelcontractor shalllremove Therefore, there is no
fromLLthe site any temporary relevant clause that is
structures, construction equipments, similar to Clause 26.4 in
tools, materials and goods within 14 PAM contract.
days or withinLspecificLperiod as
mayLbe approved inLwriting by the
architect, andLLLshall provide
facilitiesLLfor his nominated
sub-contractorsLLto carry out the
same.
26.4(b) Theltotallvaluelof the works
properlyLcompleted, theLvalueLof
materialsLand equipments supplied,
as well as anyLloss and/or expenses
incurred byLtheLcontractor as a
result of such determination, must
all beLallowedLby the employer or
paid to theIcontractor.
Cl. 26.5 Records of Works The contractor must notify the No Provision In PWD 203a, it does not
architectLandLquantity surveyor in state that the contractor is
writing ofItheIdate of the inspection required to record the
on site toIjointlyIrecord the amount amount of works done and
ofIworks done and theLmaterials the materials and goods
and goods supplied toLtheLsite supplied to the site.
within 28 days ofIthe determination
of his own employment. The
records will serve as the foundation
for the evaluation of the values of
the works completed andLmaterials
and goods to the site by the
contractor up to the date of
determination. A copy of the
records will be sent byLLthe
contractor upon completion toLthe
employer, architectLandLquantity
surveyor.
Cl. 26.6 Settlement of The Contractor must submit aLfinal 55.0 Events and There are quite alot of
Accounts account for the total valueIofIwork Consequences of Default by similarities between Clause
properly completed, theLvalueLof the Government 26.6 of PAM contract and
materials and goods provided, and Clause 55(c)(i) of PWD
Default of Obligations
loss and/or expense incurred byLthe 203a of requiring the
contractor as a results of such (c) Consequences of employer or the
determination toLItheLIemployer, Termination government respectively to
architect, and quantity surveyor for pay up the cost of
IfItheIcontract is terminated in
theLemployer’s approval within 6 completed works and the
accordance with Clause 55(b)
months of theLdetermination of his cost of materials and
own employment. (i) TheIgovernment shall pay goods. Nevertheless, in
26.6(a) TheIfinalIaccount should be to theIcontactor: PWD 203a, it does not
conclusiveLand presumedLagreed mention how disputes
(a) TheLLIcost ofLLIthe
upon byItheIparties if nothing inlthe between the contractor and
completedLworks as of
specific finalIaccount is disputed by government would be
the date of termination.
theLemployer withinl3lmonths after resolved.
(b) The sums due for any
theLdate of receipt of the final
preliminary iterms as
account from theLcontractor. The
long as the works or
balance of theLLfinalLLaccount
service included
becomes a debt owned byLthe
therein has been
employer to theLcontractor during
completed, as well as
the Period of Honouring
an appropriate
Certificates ifLLit exceeds the
percentage of of any
amounts already paid to the
such works that have
contractor under the contract. If the
been partially
amount is lessLthanLthe amount
completed.
specified, theLdifference will beLa
(c) TheLcost of materials
debt owned to theLemployer byIthe
andLgoodsLthat were
contractor, or theLemployer may be
legitimately ordered
entitled to collect the difference
for theIworks and have
from the Performance Bond if
been delivered toLthe
necessary.
contractor, or whose
26.6(b) Within 3Imonths of theIdate
it received the final account from delivery theLcontractor
theLcontractor, theLemployer must isLlegally required to
notify theLcontractor in writing of accept.
any disagreements it has with the (d) A sum that cover the
final account, along with any cost of any reasonable
particulars. After receiving the expenditures made by
grounds for the disagreement, the the contractor that have
contractor has three months to not yet been recovered
determine whether to make byLLIany of other
amendments to the final account, payments stated inIthis
depending on his assessment of sub-clause.
what is suitable. If the employer
does not agree with the changed
final account or theLdecision not to
amend the final account, the
employerLshall submit theLdispute
to arbitration in accordance to
Clause 37.0 by 3Imonths oflthe date
on which it received the amended
final account or the date on which it
received the decision not to amend
theIfinal account. TheIfinal account
should be deemed to be conclusive
andLagreed upon by theLparties if
theLdispute is not submitted to
arbitration within the time
specified.
Cl. 26.7 Contractor’s The provisions of Clause 26.0 are 55.0 Events and In Clause 26.7 of PAM
Right and without prejudice to any other Consequences of Default by contract, it only stated that
Remedies not rights and/or remedies which the the Government the provision of Clause
prejudiced Contractor may possess. 26.0 are without prejudice
Default of Obligations
ot the rights and/or
(c) Consequences of remedies of the contractor.
Termination While in Clause 55(c)(ii) of
PWD 203a, it is stated that
(ii) For theLavoidance of
upon termination, the
doubt, the parties herby agree
contractor shall not be
that upon terminationLof this
entitled to any losses.
contract, theLcontractor shall
not be entitled to any other
kind ofLlosses, such as lossIof
profit, claims,LIdamages,Lor
anything else.
Clause 27.0 Nominated Sub-contractors
Cl. 27.1 P.C. Sums and If P.C. sums are incorporated in the 60.1 On theIwritten instruction
The P.C. sums and
Provisional contractLbills or come about asLa of theLSuperintendent Officer
Provisional sums in PAM
consequence of an AI provided (S.O.), theIcontractor gets into
contract and PWD 203a is
about theLLLexpenditure of suchLIsub-contracts with the
able to be utlised to
Provisional Sums regarding of a nominatedLIsub-contractor or
allocate an allowance for
person toLbe nominated byLthe nominatedLLLsupplier, as
the costs associated with
architect to supply and repair applicable, and such
the work of the nominated
materialsLandLgoods or to perform sub-contracts should be in the
sub-contractor. However,
works,Lthe following rules should format as referred to. The S.O.
there are slight differences
apply. Such sums must be expended should acquire tenders for the
between both of the
in the direction of the person nominatedLsub-contractor's or
standard forms of
designated by theLarchitect, who is nominatedLsupplier's workLor
contracts.
known as the "Nominated servicesLor for the supply of
Sub-Contractor" hired byLLthe materialsIorIgoods with regard In PAM contract, P.C. sums
contractor inLtheLfollowing. The of which PrimeLCost (P.C) and provsional sums are
NominatedISub-Contractor, and not Sums or ProvisionalLSums normally defined as a sum
theLLLcontractor, should be have been included in. of money included in the
accountable for ensuring thatLsuch contract to cover the cost
subcontractLworks are suitable for of materials or goods that
its purpose if they propose any are to be supplied by a
alternative design tolthe subcontract nominated sub-contractor.
drawingsLIor if theLIsubcontract
While in PWD 203a, P.C.
leaves anyLmatter of specification,
sums and provsional sums
design, or choice of workmanship,
are defined as a provisional
materials and goods to them.
allowance included in the
contract to cover the cost
of materials or goods that
are not yet completely
defined or specified.
Cl. 27.2 Nomination of TheLarchitect should not designate 60.2 In relation to theLworks, The nomination process of
Sub-Contractor as aLnominated sub-contractor any theLS.O. should not designate nominated sub-contractor
party to which theIcontractor would any of the following as a in both of the contracts are
have a valid objection pursuant to sub-contractorIorIsupplier: quite similar. However, the
Clause 27.3. Within 14 days only difference is that, in
(a) aLLLperson against
following receipt of theLarchitect's whomever the PAM contract, it only
nominationLLLIinstruction, the ContractorLLLLLmust allows for nominated
contractorLmust submit any valid submit a written sub-contractor to be
objections in writing. Except in the objection within 21 nominated but with the
event theLarchitect andLcontractor days of theLLS.O.'s approval of the Architect.
mutually agree, theIarchitect should instruction under
While in PWD 203a, it
not designate any party who will clause 60.1 of this
requires the employer’s
not get into a contract with the agreement.
written consent for any
contractorLin accordance with the (b) an individual who
appoinment of nominated
termsLandLconditions of the PAM disagrees to sign a
sub-contractor by the
contract 2018, which, among other sub-contract with the
contractor and also the
things, provides: termsLIandLconditions
approval of the S.O.
outlined in the
27.2(a) that theLLInominated
government's standard
sub-contractor execute and finish
form of sub-contract
the sub-contractLworks in every
forLLLLLLInominated
respect to the appropriate approval
sub-contractor or
of theLarchitect and theLcontractor
nominatedIsupplier.
and in compliance with All
(c) a person who refuses
appropriate instructions and
in providing the
conditions of theIcontractor.
government with the
27.2(b) that, to the extent that they indemnification with
relate to and are applicable to the theLLLItermsLLLIand
sub-contractLworks, theInominated conditions outlined in
sub-contractorLIobserve, executes, the Letter of
and complies with all terms of the indemnification for
contract that theLIcontractor is nominatedIsuppliers or
required to do so. nominatedLLLLLLLL
sub-contractors, as the
27.2(c) that theLLInominated
situation might be,
sub-contractor holds theLcontractor
which can be found in
safe from the same liabilities
the Government's
related to theLsub-contract works
standard form.
that the contractor is obligated to
hold theLIemployer safe from
according to theIcontract.
27.2(g) theLLLLLnominated
sub-contractor should pay or enable
theLcontractor lossLand/or expense
incurred by theLcontractor or a
stipulated liquidated damages if the
nominatedLLLsub-contractor is
unsuccessful in completing the
sub-contractLLIworks by the
sub-contractLIcompletion date or
within any extended time granted
by thelcontractor, and the contractor
after providing a written notice to
theLnominated sub-contractor that
theLLsub-contract works ought
reasonably to have been completed.
Cl. 27.3 Objection to Subject to Clause 27.4, the 60.3 The S.O. must perform In PAM contract, the
Nomination of contractorLIis not obligated from one or more of the following employer is required to
Nominated entering into a sub-contract with actions if, in accordance with provide a notice of
Sub-contractor anyLLInominated sub-contractor Clause 60.2, the contractor is objection to the contractor
against whom the contractor has not obliged to get into a within 14 days of receiving
raised an appropriate objection sub-contract with a nominated the detales of the
based on known information and sub-contractor or nominated nominated sub-contractor.
documented proof that the supplier, as the case may be: While in PWD 203a, the
nominatedLLLLLLsub-contractor's employer is required to
financial condition, reliability, or provide the notice of
technical proficiency are such that a objection within 21 days of
prudentLLcontractor, taking into receiving the notice of
account the nature of the intention to nominate a
sub-contract works, would be sub-contractor.
justifiable in refusing the
In addition, in PAM
nomination.
contract, the nominated
sub-contractor can be
objected if the
sub-contractor is not
financially sound, has poor
reputation or is unable to
fufill work requirements.
As in PWD 203a, the
nominated sub-contractor
can be objected if the
sub-contractor is unable to
execute the work to the in a
satisfactory manner.
Cl. 27.4 Action Following If theLarchitect determines that the (a) designate a different Both the consequences
Objection of contractorLLIhas an applicable supplier or following the objection of
Nominated objection, he or she may either sub-contractor, if nominated sub-contractor
Sub-contractor provide further written instructions appropriate, in which is almost the same is PAM
to overturn the objection so that the scenario 60.2 will take contract and PWD 203a.
contractorLLIcan get into the effect.
sub-contract, revoke the nomination (b) by order pursuant to
instructionLLand provide a new Clause 24, alter the
nominationLinstruction eliminating works,LLLLLservices,
the work that was the primary materials, orlgoods that
purpose of the originalLnomination are included as part of
instruction, or nominate a different the P.C. sums or
subcontractor to complete the provisional sum as
sub-contract works. previously stated,
including by removing
any suchLLLwork,
services,Lmaterials,Ior
goods so that they can
be delivered by
workers,LLcontractors,
orLIsuppliers, as such
might be, who are
hired by the
government either in
conjunction with the
works or at a
subsequent date, in
which scenarioLLthe
Contractor is not
allowed to claim.
(c) Arrangement forLIthe
contractor to carry out
such work or services,
or to provide such
materialsLorLgoods, in
compliance with
Clause 34.4.
Cl. 27.5 Payment by While issuing a certificate 61.0 Payment to Nominated In PAM Contract, the
Contractor to according to Clause 30.0,LLthe Sub-contractor or Supplier nominated sub-contractor
Nominated architect must inform theIcontractor 61.1 TheLS.O. must indicate is paid directly by the main
sub-contracs as to the overall value of work that the sum of interim or final contractor, based on the
was executed properly, take into payment due to each amounts certified by the
account the percentage of the price nominatedLlsub-contractor or architect. This means that
of the materialsIandIgoods listed in supplierLindependently when the main contractor is
the appendix in the computation of granting interim payment responsible for ensuring
the amount that is stated to be due, certificates according to that the nominated
and notify theLLLnominated Clause 28 or final payment sub-contractor is paid in a
sub-contractor in writing of the certificates under Clause 31 timely manner, and the
overall value concurrently. aforesaid. According to Clause sub-contractor has the right
Throughout the 7 days following 61.2 herein, this sum shall be to seek payment directly
the period for honouring paid by theLLgovernment from the main contractor.
certificates, theIcontractor must pay promptly to eachLnominated
While in PWD 203a,
theLnominated sub-contractor the sub-contractor orIsupplier. The
payment to the nominated
amount designating this total government is considered to
sub-contractor is made
amount. have issued a payment to the
through the main contract.
ContractorLLunder and in The sub-contractor submits
compliance with this contract its payment claim to the
in the sum of money paid main contractor, who then
promptly by theLgovernment includes the
to theLLLLLnominated sub-contractor's claim in
sub-contractors orIsuppliers. their own payment claim to
the government. The
government will then make
payment to the main
contractor, who is
responsible for paying the
sub-contractor.
Cl. 27.6 Failure of Before issuing any interim or final 23.5 Default in Payment of In PAM contract, failure to
Contractor to Pay certificates, theLarchitect could at Wages pay a nominated
Nominated any point ask theLcontractor to sub-contractor by the main
In the event of default in the
Sub-contractor provide him with adequate contractor is treated as a
payment of:
documentation demonstrating that breach of contract, which
all payments due and specified in (a) any payment in entitles the sub-contractor
earlier certifications were indeed relation to wages. to claim for damages and
paid in full. Following the (b) payment in respect of termination of the contract.
architect'sLdemand, theLContractor Employees Provident
must deliver this verification within Fund Contributions. While in PWD 203a,
14 days. In accordance with provides for a slightly
TheLLIS.O. should make
Clauses 16.1 and 26.13 of the PAM different mechanism for
payment to the Director
contract 2018, if theLcontractor has dealing with the failure to
General of Labour and/or
any reasons for delayingLpayments pay a nominated
Employees Provident Fund,
to anyInominated sub-contractor, he sub-contractor. If the main
when the situation may be, out
must notify theIarchitect in writing. contractor fails to pay the
of any money at any moment
TheLLarchitect could issue a sub-contractor, the PWD
owed by theLLcontractor
certificate specifying the sum for 203a contract allows the
according to this contract, and
which theLcontractor was unable to sub-contractor to make a
such payment is considered to
produce such evidence if the direct claim against the
be a payment made to the
contractorLlignores theLlarchitect's employer through the
contractorLby the Department
demand within 14 days. For Employees Provident
of Labour for any workers
instances in which theLarchitect has Fund.
hired by theLcontractor or his
authorised as such, theLemployer
sub-contractorslandlnominated
could pay those payments straight
sub-contractors in and for the
to thelnominated sub-contractor and
execution of this contract, in
deduct them from any amount that
which a claim is being
are already owed to or will soon be
presented with the Department
owed to theIcontractor. Regardless
of Labour.
of whether or not an interim
certificate according to Clause 30.0
is due for issuance, theLarchitect
may nevertheless provide the
previously mentioned certificate.
Cl. 27.7 Final Payment to If theIArchitect wants to make final 31.0 Final Account and In PAM Contract, it
Nominated payment to theLLLnominated Payment Certificate requires the contractor to
Sub-contractor sub-contractor before final payment prepare and submit a final
31.1 TheLLIContractor is
is due to theLContractor and the account to the architect for
required to provide full
nominatedLLLsub-contractor has approval, which includes
information that include
compensated theLLLlcontractor the cost of works carried
invoices, vouchers, and
regarding all of his obligations out by the nominated
documentation which would
under theLnominated sub-contract, sub-contractor. The
back up theLcontractor's claim
theLLArchitect must provide a architect will then issue a
under clause 44 along with
certificate to the contractor, and the final certificate of payment.
any documents, supporting
contractorLmust pay the nominated
vouchers, and any While in PWD 203a, the
sub-contractorIthe sum so approved
clarifications and nominated sub-contractor
less any retention and deductions
computations, including submits a final account to
specifically stated under PAM
documents associated the S.O. for certification
contract 2018. The amount of the
regarding the accounts of and payment. The S.O. will
retention granted for theInominated
nominatedLsub-contractors or then issue the final
sub-contractor will be deducted nominatedLLLsuppliers, as certificate of payment.
from the Retention Fund after such deemed required. The
final payment. submission must be made
promptly as is practically
possible but not later than 3
months following the release
of the Certificate of Practical
Completion.
Cl. 27.8 Determination of Without theLarchitect's approval in 63.0 Responsibilities of In PAM contract, a written
the Nominated writing, theIcontractor isn't allowed Contractor to Nominated notice regarding the
Sub-contractor’s to determine theLemployment of and/or Sub-contractors and nominated sub-contractor’s
Employment anyLnominated sub-contractor. A Suppliers default is required to be
written statement outlining the prepared by the contractor
63.2 In the case that any
nominated sub-contractor's default to the architect if the
nominated sub-contractor or
must be sent to the Architect and contractor decide to
supplier repudiates or
forwarded to the nominated determine the employment
abandons his sub-contract, or
sub-contractor by the contractor if of the nominated
in case the contractor decides
the Contractor plans to determine sub-contractor. While in
to determine the employment
the employment of the nominated PWD 203a, there is not
of the nominated
sub-contractor. Before deciding sub-contractor or supplier for much information
whether to provide his written whatever reason in any way regarding the determination
authorization, the architect might under the sub-contract, the of the nominated
request the nominated contractor shall either: sub-contractor.
sub-contractor to offer a respond to
the Contractor's report.
Cl. 27.9 Contractor’s To meet the reasonable expectations 63.0 Responsibilities of Both the contractor’s
Responsibilities of theIarchitect, theIcontractor shall Contractor to Nominated responsibilities for
for Nominated remain entirely responsible for and/or Sub-contractors and nominated sub-contractors
Sub-contrators ensuring that allLLLnominated Suppliers in PAM contract and PWD
sub-contractors completeLLLthe 203a are quite similar.
63.1 TheLLIcontractor will
sub-contract works in conjunction
endure full responsibility for
to theLnominated sub-contract and
ensuring that theLnominated
in accordance therewith, such as
sub-contractor orLLsuppliers
providing designs,lmaterials,lgoods,
follow the terms and
and requirements ofLworkmanship
conditions of this contract.
of the quality and requirements
TheLcontractor must also bear
stated therein.
full responsibility for every
default,Iomission, orIbreach of
any terms and/or conditions of
this contract on behalf of the
nominatedLLLIsub-contractor
and/orLsuppliers, in a similar
manner as for himself or for
otherLLLIsubcontractors or
suppliersLhe has hired. Under
no scenario shall the
governmentLbe responsible to
the contractor for any
nominatedLLLsub-contractors'
and/orIsuppliers' defaults.
Cl. 27.11 Re-nomination of TheLarchitect has to propose a new 63.0 Responsibilities of Both the re-nomination of
Sub-contractor nominatedLsub-contractor when the Contractor to Nominated nominated sub-contractor
due to employment of theLLnominated and/or Sub-contractors and due to determination by the
Determination by sub-contractor has been determined Suppliers contractor in PAM contract
the Contractor by theLLcontractor with the and PWD 203a are quite
63.2 (a) Hire a different
architect'sLIwritten agreement. In similar.
qualifiedLLsub-contractor or
this case, once taking into account
supplierLLLto fulfil the
any amount that will be recoverable
sub-contractLIsubject to the
from the defaultingLInominated
S.O.'sIauthorization.
sub-contractor according to Clause
27.13, theLcontractor is eligible to 63.2 (b) commit to carrying
receive the surplus between the out theLLLLsub-contract
amount payable to theLcontractor personally.
and the newLLLnominated
Through the caveat that, in
sub-contractor and the amount
payable to the initialLnominated each of these scenarios, the
sub-contractor. TheLLLcontractor contractorLIhas the right to
could be given an extension of time receive payment for the
per Clause 23.8(j), but the materials,lgoods, or services to
contractorLisn't entitled to recover be provided in an amount
any damages, loss and/or expense. equal to the amount which
would be considered due had
the initialLLLLnominated
sub-contractor orLLIsupplier
finished theLLLsub-contract
without failing to perform so.
Cl. 27.12 Re-nomination of The architect must re-nominate a No Provision There is no provision in
Sub-contractor differentlnominated subcontractor if PWD 203a regarding the
due to the initialInominated sub-contractor determination by the
Determination by determines his own employment nominated sub-contractor.
the Nominated pursuant to theLLLnominated However, it is possible for
Sub-Contractor sub-contract because of to the the nominated
Contractor'sLLIdefault,LLomission sub-contractor to negotiate
,negligenceIor breach. If this their terms of employment
happens, theLIContractor will be with the main contractor,
compensated with the same amount provided that the terms do
that would've been paid to the not contradict the contract's
initialLLnominated sub-contractor. provisions. Eventually, the
TheLcontractor will be responsible terms of the contract and
for the payment of the subsequent the agreement between the
nominatedIsub-contractor any extra parties will determine the
costs necessary for the completion extent of the
ofLIsub-contract works and shall sub-contractor's control
repay theLemployer for whatever over their employment.
extra costs associated with the
re-nomination and for any loss or
expenses borne by theLemployer as
a result of this determination.
Unless and until theLIcontractor
shows the fact that theLnominated
sub-contractor's determination of
his particular employment is
incorrect, the contractor isn't going
to be eligible for any extensions of
time. If arbitration or a court rules
that theLnominated sub-contractor's
determination on his own
employment is unenforceable,
clause 27.11 will take effect.
Cl. 27.13 Contractor to TheLcontractor will recover any No Provision There is no similar clause
Recover extra costs incurred byLLthe regarding contractor to
Additional nominated sub-contractor as an recover additional expenses
Expenses from obligation or from any money that from nominated
Nominated is due or to become due to the sub-contractor in PWD
Sub-contractor nominatedLIsub-contractor, and in 203a. Nevertheless, if the
case that theLarchitect agrees to contractor incurs additional
determine the employment of the expenses as a result of a
nominatedlsub-contractor according nominated sub-contractor's
to Clause 27.11, theLcontractor can default or delay, the
retrieve the appropriate amount contractor may be entitled
from the nominated sub-contractor's to recover those expenses
performance bond. from the nominated
sub-contractor.
Cl. 27.14 Contractor Thelcontractor may submit a bid for No Provision There is no similar clause
Permitted to any job that is covered by P.C. sums regarding contractor
Tender for P.C. and provisional sums in the contract permitted to tender for P.C.
Sums bills. Despite the provisions of sums in PWD 203a.
Clause 30.11(c), if theLcontractor's
tender regarding this work is
approved, it will be regarded as a
variation and theLIcontractor is
unlikely to be entitled to profit and
attendance charges as charged
under the applicable P.C. Sum.
Cl. 35.1 Disputes on all matters The parties may at any No Provision There is one similar clause
time, by written as Expert Determination in
agreement, refer any clause 66.0 of PWD Form
disagreements on any 203A and will explain
subject to an expert for further details in the
resolution. Arbitration clause.
In a manner similar to
clause 34.1, this section
also offers a means for the
parties to settle their
differences through
mediation, with experts
making the final decision.
Cl. 35.2 Expert determination Any party may request that No Provision There is one similar clause
under PAM Rules the President of as Expert Determination in
Pertubuhan Arkitek clause 66.0 of PWD Form
Malaysia appoint an expert 203A and will explain
if the parties are unable to further details in the
reach agreement on one Arbitration clause.
after fourteen (14) days
have passed since the PWD Form 203A shall
signed agreement's date. include the expert
Immediately after being determination PWD rules
hired, the expert must which provide a quick and
begin the expert efficient way to resolve
determination in disputes that arise during a
accordance with the most construction project.
recent version of the PAM
Expert determination is
Expert Determination
especially helpful when
Guidelines, or any
there is a technical dispute,
subsequent modifications
such as when it comes to
or revisions.
design or
construction-related
concerns. Compared to
alternative conflict
resolution options, like
expensive and drawn-out
arbitration or litigation, it
can save time and money.
Cl. 35.3 Expert determination This clause shall not affect No Provision There is one similar clause
shall not prejudice the or prejudice in any way the as Expert Determination in
parties’ rights to right of the Contractor or clause 66.0 of PWD Form
adjudication or Employer to submit the 203A and will explain
arbitration dispute for adjudication further details in the
pursuant to Clause 36.0 or Arbitration clause.
arbitration pursuant to
Clause 37.0 of these This clause shall be added
Conditions, nor shall the on in PWD Form 203A
prior submission of the which provides a rapid and
dispute pursuant to Clause effective means to settle
35.1 be a prerequisite some sorts of conflicts, but
thereto. it might not be appropriate
for all conflicts or produce
a satisfactory outcome for
all participants.
Consequently, if the parties
feel that expert
determination is not
adequate to resolve their
issue, they should be
allowed to continue to
pursue other means of
dispute resolution, such as
adjudication or arbitration.
Cl. 36.1 Set-off disputes Regarding issues governed No Provision There is one similar
referred to by Clause 30.4, reference clause as Adjudication in
adjudication to adjudication is a clause 66.0 of PWD
prerequisite to arbitration. Form 203A and will
After the date of Practical explain further details in
Completion, any the Arbitration clause.
disagreement arising
under Clause 30.4 must be Adjudication is being
arbitrated in accordance used more and more
with Clause 37.0. frequently as a quick and
binding dispute
resolution process for
construction contracts
(Nicholas, G 2012).
It should be added in
PWD Form 203A to
protect the cash flow of a
construction project. If a
set-off disagreement is
not swiftly settled, it can
create a delay or
stoppage of work, which
could lead to extra
expenditures and
potential damage claims.
Cl. 36.2 Notice to refer to If a party requests that a No Provision There is one similar
adjudication disagreement or difference clause as Adjudication in
under Clause 36.1 be clause 66.0 of PWD
submitted for adjudication, Form 203A and will
the parties will agree on an explain further details in
adjudicator before the Arbitration clause.
submitting the dispute or
difference. If after the PWD Form 203A must
passing of 21 days from add the clause to provide
the date of the written a clear and formal
notice to concur on the notification to the other
appointment of the party that a dispute has
adjudicator, there is a arisen and that the
failure to agree on the referring party intends to
appointment, the pursue it.
requesting party shall
Because this clause is
apply to the President of
discussed about giving
Pertubuhan Akitek
the other party notice
Malaysia to appoint an
that a dispute has arisen
adjudicator, and such
and the referring party
adjudicator so appointed
intends to refer the
shall be deemed to have
dispute to adjudication is
been appointed with the
known as a notice to
agreement and consent of
refer to adjudication. The
the parties to the Contract.
notification must contain
detailed information
concerning the dispute,
such as its nature, the
sum being claimed, and
the relief being
requested.
Cl. 36.3 Adjudication Immediately after being No Provision There is one similar
Rules appointed, the adjudicator clause as Adjudication in
must begin the clause 66.0 of PWD
adjudication in line with Form 203A and will
the most recent version of explain further details in
the PAM Adjudication the Arbitration clause.
Rules or any amendments
or revisions to. PWD Form 302A must
include this clause of
adjudication rules to
guarantee that all parties
to a disagreement or
conflict have an
impartial and consistent
decision-making process
as well as a fair and
equal opportunity to
state their case.
Cl. 36.4 Decision of the Even if a party disagrees No Provision There is one similar
adjudicator with the adjudicator's clause as Adjudication in
decision, that party is still clause 66.0 of PWD
bound by it until Practical Form 203A and will
Completion and must explain further details in
notify the other party in the Arbitration clause.
writing within six weeks
of the adjudicator's Adjudication decision
decision that they wish to clauses must be added in
submit the disagreement the PWD Form 203A to
they disagree with to prevent both parties from
arbitration. If the dispute quarrelling with each
over the adjudicator's other, where adjudication
judgement is not brought may make the decision
before arbitration within for them to solve the
the allotted time, the problems. After the
adjudicator's decision shall decision is made the
be final and binding on the employer or contractor
parties. Any disagreement must follow and cannot
between the parties about refuse.
the adjudicator's ruling
may be resolved in writing But within 7 months
or through arbitration in from the adjudicator
accordance with Clause decision, if there is no
37.1. any complaint then it
will close and make a
final decision. (No more
dispute in the eyes of
contract)
Cl. 37.3 Arbitration Act and Once the arbitrator has Clause 66.10 – The Malaysian
Rules been chosen, the Arbitration Act 2005,
arbitration procedures "Reference" in this which is the main piece
shall be governed by the clause must be of legislation governing
Arbitration Act of 2005, interpreted to refer to arbitration in Malaysia,
or any statutory arbitration as defined by often governs the
amendment or the Arbitration Act of arbitration procedures
re-enactment to the Act, 2005. under a PAM contract.
and the current edition To regulate the conduct
Clause 66.11 –
of the PAM Arbitration of the arbitration
Rules, or any The Arbitration Act of procedures, the PAM
modification or revision 2005 and Malaysian law contract may
to such rules. shall control the additionally include
arbitration. additional rules, such as
the PAM Standard Form
of Building Contract
Arbitration Rules or
other agreed-upon
arbitration rules.
Cl. 37.4 Powers of arbitrator Without limiting the Clause 66.2 – There is a special phrase
scope of his authority, in PAM contracts,
the arbitrator should The officer's judgement which are widely used
have the following must be in writing and in Malaysia, that
powers: must bind the Parties up permits disagreements
until the Works are to be arbitrated. The
37.4 (a) to amend the finished, subject to parties agree to accept
Contract to properly section 66.4 of this and abide by the
reflect the genuine agreement. The decision arbitrator's decision
understanding between must be implemented without the need for
the Employer and right away by the additional legal action
Contractor; contractor, who must because, under a PAM
carry out the Works contract, the arbitrator
37.4 (b) to oversee any with proper diligence has the authority to
measures and/or whether or not he gives render a final and
assessments that he notice of his binding ruling.
deems necessary to displeasure.
determine the parties'
rights;
In contrast, the PWD
37.4 (c) determine any Form 203A, a standard
amount that should have
been the subject of or contract form used by
contained in any Clause 66.7 – the Malaysian
certificate, and to award government, provides
The Arbitrator shall
that amount; for the resolution of
have the discretion to
disputes through
37.4 (d) any certificate, determine the amount of arbitration, however the
opinion to open, any incidental costs arbitrator's authority is a
evaluate, and update associated with any little different. In a
any certificate, opinion, such reference and PWD Form 203A
decision, requirement, award, or to direct that contract, the arbitrator
or notification; the amount be taxed as
has the authority to
between solicitor and
provide a decision that
37.4 (e) to decide all client or as between
is final and enforceable,
disputes brought before party and party, and
subject to any rights of
him in the same way shall also specify who
appeal stipulated in the
they would have been if shall bear the costs, to
agreement.
no such certification, whom they shall be
opinion, decision, paid, and how they shall The arbitrator's
requirement, or be paid. authority is significant
notification had been in both contracts since
made; their decisions may be
final and binding.
37.4 (f) to grant interest
However, the precise
beginning on such dates
language of each
at the rates and with the
contract governing the
rests he deems
arbitrator's authority
appropriate:
may differ, therefore it
37.4 (f)(i) on the is crucial for parties to
entirety or a portion of comprehend these
whatever sum he has clauses before signing
been given in anything and to get
consideration of any legal counsel as needed.
time up until the date of
the award;
Cl. 37.6 Commencement of Unless the Employer Clause 66.4 – Unless there is a written
arbitration and Contractor have agreement or consent of
agreed otherwise in Such reference may not both parties, either
writing, such arbitration be made prior to the client with contractor or
proceedings shall not completion or alleged government with
begin until after the completion of the contractor, the statement
Practical Completion or Works, the of commencement of
alleged Practical determination or alleged arbitration proceeding
Completion of the determination of the in PAM form and PWD
Works, the Contractor's form 203A serve to
determination or alleged employment under this permit the construction
determination of the Contract, or the project to continue the
Contractor's abandonment of the works and prevent the
employment under the Works, unless both the stop work from
Contract, or the Government and the happening even though
abandonment of the Contractor have both parties are facing
Works: consented in writing, the dispute.
with the exception of
37.6 (a) the issue of any difference or
whether or not these dispute under clause 51
Conditions grant of this agreement.
authority for the
issuance of an Clause 66.5 –
instruction;
Even if such consent
37.6 (b) any has been obtained in
disagreement or conflict accordance with clause
arising from clauses 66.4, the submission of
31.0 and 32.0; any matter, dispute, or
difference to arbitration
37.6 (c) regardless of pursuant to this clause
whether a certificate has and/or the continuation
been issued under the of any arbitration
Contract or the Works proceedings resulting
have been abandoned, therefrom shall in no
except: way constitute a waiver
by the parties of their
37.6 (d) whether or not
respective obligations
a payment to which the
under this Contract.
Contractor would assert
that they ar Clause 66.6 –
e due has been properly The Parties may raise
or unjustly withheld any counterclaim in any
depends on how these arbitration action held in
Conditions were accordance with clause
followed. 66.3 with regard to any
difference or
disagreement arising
from the Contract.
Clause 66.9 –
Cl. 37.7 Arbitrator’s award to The arbitrator's decision Clause 66.8 – The arbitrator's ruling is
be final and binding is final and enforceable final in the PAM form
The decision of this
on parties against both parties. arbitrator is final and and PWD form 203A.
enforceable against the Binding arbitration
parties. limits the parties' right
to seek judicial
resolution of the issue
by requiring them to
accept the arbitrator's
ruling as final.
Reference
Law Shelf Education Media 2023, ‘Arbitration’, viewed 25 March 2023, <
https://lawshelf.com/shortvideoscontentview/arbitration-as-a-form-of-alternative-dispute-resolution>.