The document discusses the essential requirements for formation of a contract based on a question regarding whether Jolly and Can-do concluded a binding contract. It provides details on tenders as offers, qualifications in tenders, acceptance of tenders, letters of intent, essential terms, and letters of award. It also discusses a relevant case law supporting the position that a contract can be formed when a contractor begins work even if no formal contract is signed.

1. FIDIC WORKSHOP
2016
GROUP 6

2. QUESTION 1
WHAT ARE THE ESSENTIAL REQUIREMENTS FOR
FORMATION OF CONTRACT? DISCUSS WHETHER
A BINDING AND ENFORCEABLE CONTRACT HAS
BEEN CONCLUDED BETWEEN JOLLY AND CAN-
DO.

3. • 1. TENDERS AS OFFERS.
• The building owner who invites tenders is only indicating an intention to
receive (invitation to treat) tenders for a particular project. When a
contractor submits his tender, his tender is an offer made to the owner.
Until the offer is duly accepted, no contractual obligations arise. In a
contract, each party must have given consideration for the promise.
• 2. QUALIFICATIONS IN A TENDER SUBMITTED.
• Quite often, tenderers may consider certain aspect of the design to be
unnecessarily costly or decide that certain contract conditions to be
commercially inefficient or impose undue risks. In this case, the tenderer
may seek to qualify the tender by excluding or amending certain
conditions which he considers may increase the attractiveness of his
tender. Where a contractor submits his tender with qualifications and the
tender is successful, the question which often arises is whether the

4. • 3. ACCEPTANCE OF TENDER
• A tender (offer) may be accepted any time after it is made. Generally, the tender is open
for a period of time which is called the tender validity period. Upon the expiry of the
stipulated period, the offer lapses and can no longer be effectively accepted. The general
principle of common law is that an offer can be withdrawn any time before acceptance
unless there is a separate undertaking to keep the offer open. It is common for tenderers
to pay a tender deposit which can be forfeited in the event that the tenderer withdraws
his tender before the expiry of the offer period. The acceptance of an offer must be
unambiguous and must be communicated to the tenderer before a contract can be made.
Acceptance may be implied by conduct. This principle is codified in section 8 of the
contracts act 1950.
• 4. LETTER OF INTENT
• Once the owner has selected the contractor, he may communicate his decision by issuing
a letter of intent which is understood that the owner intends to award the contract to the
contractor. Although a letter of intent is usually stated to be nonbinding, the purpose
here is to provide the contractor with some degree of assurance to persuade him to
commence the mobilization of resources for the project. Contractor may also deem it a

5. • 5. ESSENTIAL TERMS OF AGREEMENT.
• Lord Blackburn in Rossiter v Miller (1878) held that if some particulars
essential to the agreement still remain to be settled afterwards, then there
is no contract. Normally, an agreement requires the parties, price, time and
description of works(scope of works) as the minimum necessary for a
contract to be workable.
• 6. LETTER OF AWARD.
• The formal letter of award can be issued by the owner once both parties
have agreed on the principal terms of the contract. The letter is usually
incorporated as part of the contract document. Quite often, the letter of
award may be issued even though not all terms have been agreed between
the parties, e.G. The definitions of milestones within a programme,
insurance and performance bonds to be subject of negotiations until after
the works have commenced. The typical contents in the letter of award are

6. Answer :
• There is an enforceable contract between Jolly and Can-do. In the event of Can-
do(contractor) was given possession of the site by Jolly(client) and instructed to
commence the work. Although, there was no letter of acceptance was signed but
Can-do(contractor) had begun the work while the contract documents were being
prepared and finalized for signing. Under red book of FIDIC in section 1.1.1.3,
“letter of acceptance” means the letter of formal acceptance, signed by the
employer, of the letter of tender, including any annexed memoranda comprising
agreements between and signed by both parties. If there is no such letter of
acceptance, the expression “ letter of acceptance” means the contract agreement
and the date of issuing or receiving the letter of acceptance means the date of
signing the contract agreement. In such case, Bang-Bang(project manager)
requested Can-do to expedite the preparation of the contract documents for
signing. The bound contract documents incorporated all the correspondence and
documents listed in the letter of acceptance. In Event that MrJoll (client) would be

7. CASE LAW
• The classic case of Trollope & Colls Ltd V Atomic Power Construction Ltd (1963)
support this situation where the subcontractors were notified of changes to the
works after their submission of tender. They were instructed to commence work
on the following terms: ‘as soon as matters outstanding between us are settled
we will enter into a contract agreement with you, and in the meantime please
accept this letter as an instruction to proceed …’ although no contract was
actually signed, the english court held that a contract came into existence when
the contractor commenced work.

8. QUESTION 2
ADVISE JAZZY ON THE VALIDITY OF CAN-DO’S
CLAIM FOR EXTENSION OF TIME AND ADDITIONAL
PAYMENT ARISING FROM THE COLLAPSED
TEMPORARY WORKS.

9. • Based on the red book FIDIC in section 20.1_contractor’s claim; if
the contractor considers himself to be entitled to any extension of
the time of completion and or any additional payment, under any
clause of these conditions or otherwise in connection with the
contract, the contractor shall give notice to the engineer, describing
the event or circumstances giving rise to the claim. The notice shall
be given as soon as practicable, and not later than 28 days after the
contractor become aware, or should have become aware, of the
event or circumstance. If the contractor fails to give notice of a
claim within such period of 28days, the time for completion shall
not be extended, the contractor shall not be entitled to additional
payment and the employer shall be discharged from all liability in
connection with the claim.

10. Answer :
• Base on the situation, the contractor considers himself to be entitled to
claim for extension for time and additional payment. The reasons
behind his claim as described states that the collapse temporary works
was due to the changes in design and method statement made by the
engineer instruction where as their initial temporary works design would
have been able to sustain during the national phenomenon, under 23.1
and 23.8(a) relevant events_force majeure of the PAM contract form
2006. Thus, they considers themselves entitled to claim for the delay 7
days given the reason that the collapsed temporary works was due to
the engineer change in design and method statement towards their
initial temporary work design.
• However, the contractor is not entitled to claim for EOT or additional
payment because he failed to notify the engineer about the collapsed
temporary works within 28 days of the incident that the contractor has
become aware of consider as stated in section 20.1; even if the mistake

11. QUESTION 3
HOW SHOULD JAZZ RESPOND TO CAN-DO
WITH REGARD TO THE LATTER’S CLAIM FOR
EXTENSION OF TIME FOR THE DELAY CAUSED
BY THE RAIN?

12. • Under Red Book FIDIC in section 8.4 (b) extension of time for completion stated that
the contractor shall be entitled subject to extension of the time for completion if the
completion will be delayed by the exceptionally adverse climatic conditions. In this
case, the works have been suffer exceptionally heavy rain and con-do (contractor)
has submitted the claim for extension of the time completion 40 days after the
event. Under Red Book FIDIC in section 20.1 contractor’s claims stated that
extension of time for completion and additional payment, the contractor shall give
notice to the engineer. The notice shall be given not later than 28 days from the
event or circumstances. If the contractors fails to give notice of the claim within
such period of 28 days, the extension for completion shall not be extended. In this
case, the engineer still granted 7 days extension of time to the contractors although
the contractors submit the notice of claim for extension of time 40 days after the
event or circumstances. Therefore, the contractor shall not be entitled for any
extension of time. Moreover, in the contract, the jolly has instructed gulp to delete
the sub-clauses on exceptionally adverse climatic condition. As a conclusion,
contractor shall not entitled for any extension of time.

13. • Under PAM form clauses 23.0 submission of notice and particulars
for extension of time, if the contractors think that the works will be
delayed beyond the completion date by any of the relevant events
stated in clauses 23.8, he may apply for an extension of time. The
contractors shall give written notice within 28 days. In this case,
there is exceptionally heavy rain in the site, which referred in
relevant events in clause 23.8 (b) exceptionally inclement weather.
The contractor submitted the notice 40 days after the event. Which
mean it exceed the time period to submit the notice of extension
of time.

14. QUESTION 4
IF THE STANDARD FORM OF CONTRACT IS THE
AGREEMENT AND CONDITIONS OF PAM CONTRACT
2006 (WITHOUT QUANTITIES), ADVICE PICASSO, IN
THEIR CAPACITY AS AN ARCHITECT, ON THE
PROCEDURE FOR DEALING WITH THE EXTENSION
OF TIME ARISING FROM THE INSTRUCTION FOR
FURTHER CHANGES TO THE APARTMENT TYPE MIX
AND HOW THEY SHOULD RESPOND TO THE
REQUEST FROM CAN-DO SINCE THE COMPLETION
DATE HAS PASSED AND A CERTIFICATE OF NON-
COMPLETION HAD ALREADY BEEN ISSUED

15. • Under standard form of contract PAM 2006 (without quantities) clause 23.9
(extension of time after the issuance of certificate of non-completion) stated that
where a relevant event occurs after the issuance of the certificate of non-
completion, the architect shall grant an extension of time. The extension of time
granted shall be added to the completion date of the works or any section of the
works. Whereas the contractor, can-do, struggled to complete the works and the
time for completion already expired, as a result of CNP, he also suffered for
liquidated damages. Plus, the relevant event supported by clause 23.8(e) which
mentioned the contractor not having received in due time the necessary AI for which
he had specifically applied in writing to the architect. The contractor’s application
must be submitted to the architect in sufficient time before commencement of
construction of the affected works, to enable the architect to issue the necessary AI
within a period which would not materially affect the progress of the affected
works, having regard to the completion date. Jolly requested jazz to instruct can-
do to make further changes to the apartment. In order to follow the instruction,
can-do requested for extension of time as they were not prepared to carry out the
additional changes and time of completion had expired. In this case, Picasso, the
architect, shall grant extension of time to can-do as the additional changes will
affect the works as it is one of the relevant event stated in clause 23.8(e).

16. QUESTION 5
ADVISE JOLLY ON THE CONTRACTUAL
IMPLICATIONS OF REPLACING ER JAZZY AND
APPOINTING THEIR OWN EMPLOYEE, ER JO-JO,
AS THE NAMED ENGINEER

17. • Under red book FIDIC in section 3.4 replacement of the engineer, if the employer
intends to replace the engineer, the employer shall, not less than 21 days before
the intended date of replacement, give notice to the contractor of the name,
address and relevant experience of the intended replacement engineer. In this
case, assuming jolly(client) wrote an email to can-do(contractor) stated that
jolly(client) want to ceased Er Jazzy(engineering) work under the contract with
immediate effect. Furthermore, jolly(client) want to replace Er Jazzy to Er Jo-Jo and
acted as the engineer for the purpose of the contract. Thus, jolly(client) cannot
replace Er Jo-Jo with immediate effect unless given notice not less than 21days
and if the con-do(contractor) considers the intended replacement engineer to be
unsuitable, the Can-do(contractor) may raise reasonable objection with supporting
reasons to the Jolly(client). The Engineer acts as an agent of the employer and an
individual certifier who is able to acts on his own opinion. In the case where Jolly
appoint Er Jo-Jo who is one of his employee, the question would arise whereby
whether Er. Jo-Jo can acts on his own opinion as a certifier without being
interfered by his employer (Jolly) and might act unfairly towards the contractor.

18. 6. PROCEDURE AND CONSEQUENCES FOR SUSPENSION OF
WORKS.
FIDIC
-CLAUSE 8.8 STATES THAT ENGINEER MAY AT ANY TIME INSTRUCT TO SUSPEND PROGRESS OF
PART OR ALL OF WORK AND MAY NOTIFY THE CAUSE OF SUSPENSION.
-CONTRACTOR SHALL PROTECT, STORE, SECURE WORKS AGAINST DETERIORATION, LOSS,
DAMAGE.
-CLAUSE 8.9 CONSEQUENCES OF SUSPENSION BASED ON THIS CLAUSE WHERE CONTRACTOR
SUFFERS DELAY OR INCURS COST FROM COMPLYING WITH ENGINEER INSTRUCTION UNDER
CLAUSE 8.8 AND OR FROM RESUMING WORK.
-CLAUSE 20.1 AN EXTENSION OF TIME FOR SUCH DELAY OR PAYMENT OF ANY COST WHICH
SHALL BE INCLUDED IN CONTRACT PRICE.
-CLAUSE 3.5 AFTER RECEIVING THE NOTICE, THE ENGINEER SHALL PROCEED IN ACCORDANCE
WITH THIS CLAUSE TO AGREE OR DETERMINE THESE MATTERS .
-CLAUSE 8.11 IF THE SUSPENSION UNDER CLAUSE 8.8 CONTINUED FOR MORE THAN 84 DAYS,
CONTRACTOR MAY REQUEST THE ENGINEER'S TO PROCEED AND IF THE ENGINEER DOES NOT
GIVE PERMISSION WITHIN 28 DAYS AFTER BEING REQUESTED. CONTRACTOR MAY TREAT THE
SUSPENSION AS AN OMISSION UNDER CLAUSE 13 OF THE AFFECTED PARTS OF WORKS AND IF IT
AFFECT THE WHOLE WORK, THE CONTRACTOR MAY GIVE NOTICE OF TERMINATION UNDER
CLAUSE 16.2 (TERMINATION BY CONTRACTOR).

19. -CLAUSE 16.1- IF ENGINEER FAILS TO CERTIFY IN ACCORDANCE TO
CLAUSE 14.6 (ISSUE OF INTERIM PAYMENT CERTIFICATE)OR EMPLOYER
FAILS TO COMPLY WITH CLAUSE 2.4 EMPLOYER'S FINANCIAL
ARRANGEMENT) OR CLAUSE 14.7 (PAYMENT), THE CONTRACTOR
MAY, AFTER GIVING NOT LESS THAN 21 DAYS NOTICE TO THE
EMPLOYER, SUSPEND WORK UNTIL THE CONTRACTOR RECEIVE THE
PAYMENT.
-BASED ON THE INCIDENT GIVEN, CAN-DO CAN SUBJECT TO CLAIMS
TO AN EXTENSION OF TIME FOR ANY SUCH DELAY OR PAYMENT OF
ANY SUCH COST WHICH SHALL BE INCLUDED IN CONTRACT PRICE IF
THE SUSPENSION OF WORK IS ORDERED BY THE ENGINEER. THEY
COULD ALSO TERMINATE THEMSELVES IF THE SUSPENSIONS IS
PROLONGED.

20. PAM 2006 (WITH QUANTITIES)
-THERE'S NO CLAUSES WHICH SUPPORTS AN ENGINEER TO SUSPEND
ANY WORK.
-HOWEVER, CLAUSE 30.7 WHICH STATES THAT THE CONTRACTOR
CAN SUSPEND WORK WHEN THE EMPLOYER FAILS OR NEGLECTS TO
PAY THE CONTRACTOR THE AMOUNT DUE AS SHOWN IN PAYMENT
CERTIFICATE.
-CLAUSE 30.8 -STATES THAT IF THE ARCHITECT OR CONSULTANT
INFORM THE CONTRACTOR IN WRITING OF THEIR WITHDRAWER FROM
THE SUPERVISION OF THE EXECUTION OF THE WORKS REQUIRED
UNDER THE LOCAL BUILDING BY-LAWS FOR WHATEVER REASON THE
CONTRACTOR SHALL FORFEIT SUSPEND THE EXECUTION OF WORKS
AND CONTINUE SUCH SUSPENSIONS UNTIL THE PRESUMPTION OF THE
SAID SUPERVISION.
-THE CONTRACTOR MAY SUSPEND ALL THE WORKS TILL THE HE
RECEIVE THE PAYMENT OR ELSE HE CAN TERMINATE HIS OWN
EMPLOYMENT.

21. 7. ADVICE ON RESPONSE ON SUB-
CLAUSES TO BE DELETED IN CONTRACT
FORM.
- GULP SHOULD ADVICE JOLLY ON THE IMPLICATION ON REMOVING THE CLAUSE WHICH
WERE RELEVANT TO THE EXTENSION OF TIME.
- THIS ACTION IS NOT ADVISABLE AS IF THERE'S NO EOT, THE EMPLOYER CANNOT SET A
NEW COMPLETION DATE, THE CONTRACTOR OBLIGATION THEN IS TO COMPLETE IN A
'REASONABLE TIME' WHERE IT MAY TAKE A LONGER TIME TO COMPLETE BECAUSE
THERE'S NO DEFINITE COMPLETION DATE TO WORK TOWARDS.
- THE PROJECT MAY COST MORE THAN THE ORIGINAL PRICE SET, AND LASTLY THE TIME
OF COMPLETION IS NOW 'AT LARGE' AND EMPLOYER LOSES HIS RIGHT TO IMPOSE LD.
- THE PROJECT MAY COST MORE THAN THE ORIGINAL PRICE SET, AND LASTLY THE TIME
OF COMPLETION IS NOW 'AT LARGE' AND EMPLOYER LOSES HIS RIGHT TO IMPOSE LD.
- THE CONTRACTOR SHALL TAKE NOTE THAT HIS RISK IS NOW HIGHER AS HE BEARS THE
RISK OF DELAY CAUSE BY THE NEUTRAL EVENT AND TO INCREASE HIS CONTRACT
SUM.

22. - IF THERE'S EOT, THE COMPLETION DATE CAN BE EXTENDED WHEN THERE'S A
DELAY WHICH WILL SET A NEW COMPLETION DATE TO WORK TOWARDS TOO.
- IT ALSO PRESERVES THE EMPLOYER'S CONTRACTUAL RIGHTS SHOULD HE CAUSE
WORKS TO BE DELAYED BY DEFAULT AND MOST IMPORTANTLY IT PREVENTS THE
TIME FOR COMPLETION BEING AT LARGE.
- IF THE DELAY IS CAUSE BY THE EMPLOYER, TIME WILL NOT BE ENLARGED.

23. 8. IN EVENT CAN-DO BECOMES INSOLVENT
FIDIC
-CLAUSE 15.2(E) - THE EMPLOYER SHALL BE ENTITLED TO TERMINATE THE
CONTRACT IF THE CONTRACTOR BECOMES INSOLVENT. IN THIS CASE, THE
EMPLOYER MAY BY NOTICE TERMINATE THE CONTRACT IMMEDIATELY
WITHOUT GIVING 14 DAYS NOTICE TO THE CONTRACTOR , TERMINATE THE
CONTRACT AND EXPEL THE CONTRACTOR FROM THE SITE. THE EMPLOYERS
ELECTION TO TERMINATE THE CONTRACT SHALL NOT PREJUDICE ANY
OTHER RIGHTS OF THE EMPLOYER, UNDER THE CONTRACT OR OTHERWISE.
-THE CONTRACTOR SHALL THEN LEAVE SITE AND DELIVER ANY REQUIRED
GOODS, ALL CONTRACTOR’S DOCUMENTS AND OTHER DESIGN
DOCUMENTS MADE BY OR FOR HIM TO THE ENGINEER. HOWEVER,
CONTRACTOR SHALL USE HIS BEST EFFORTS TO COMPLY IMMEDIATELY
WITH ANY REASONABLE INSTRUCTIONS INCLUDED IN THE NOTICE
• FOR THE ASSIGNMENT OF ANY SUBCONTRACT
• FOR PROTECTION OF LIFE OR PROPERTY OR FOR THE SAFETY OF THE
WORK

24. • AFTER TERMINATION, EMPLOYER MAY COMPLETE WORKS AND/OR
ARRANGE FOR ANY OTHER ENTITLES TO DO SO. THE EMPLOYER
AND THESE ENTITLES MAY THEN USE ANY GOODS, CONTRACTOR’S
DOCUMENTS AND OTHER DESIGN DOCUMENTS MADE BY OR ON
BEHALF OF THE CONTRACTOR.
• THE EMPLOYER SHALL THEN GIVE NOTICE THAT THE
CONTRACTOR’S EQUIPMENT AND TEMPORARY WORKS WILL BE
RELEASED TO THE CONTRACTOR AT OR NEAR THE SITE. THE
CONTRACTOR SHALL PROMPTLY ARRANGE THEIR REMOVAL, AT THE
RISK AND COST OF CONTRACTOR. IF CONTRACTOR FAILS TO MAKE
PAYMENT BY THIS TIME TO THE EMPLOYER, THESE ITEMS MAY BE
SOLD BY THE EMPLOYER TO RECOVER THIS PAYMENT. ANY BALANCE
OF THE PROCEEDS SHALL THEN BE PAID TO THE CONTRACTOR .

25. PAM 2006 (WITH QUANTITIES)
-CLAUSE 25.4-IN THE EVENT THE CONTRACTOR BECOMING INSOLVENT, THE
EMPLOYMENT OF THE CONTRACTOR SHALL BE FORTHWITH AUTOMATICALLY
DETERMINED.
-CLAUSE 25.4 (A) - THE CONTRACTOR SHALL VACATE THE SITE AND
RETURN POSSESSION OF THE SITE TO THE EMPLOYER WHO MAY EMPLOY
AND PAY OTHER PERSON TO CARRY OUT AND COMPLETE THE WORKS AND
TO MAKE GOOD ANY DEFECTS. SUCH PERSON MAY ENTER UPON THE
WORKS AND USE ALL TEMPORARY BUILDINGS, CONSTRUCTION PLANT,
TOOLS, MATERIALS AND GOODS INTENDED FOR, DELIVERED TO AND
PLACED ON OR ADJACENT TO THE SITE (EXCEPT CONSTRUCTION PLANTS
HIRED BY CONTRACTOR) AND MAY PURCHASE ALL MATERIALS AND GOODS
NECESSARY FOR CARRYING OUT AND THE COMPLETION OF THE WORKS.
THE CONTRACTOR IF SO REQUIRED BY THE EMPLOYER OR BY THE
ARCHITECT ON BEHALF OF THE EMPLOYER SHALL WITHIN 21 DAYS OF THE
DATE OF DETERMINATION, ASSIGN TO THE EMPLOYER THE BENEFIT OF ANY
AGREEMENT FOR THE CONTINUATION OF THE HIRE OF CONSTRUCTION
PLANT AND EQUIPMENT ALREADY ON THE SITE.

26. • CLAUSE 25.4 (B) - THE CONTRACTOR IS SO REQUIRED BY THE EMPLOYER
OR ARCHITECT, SHALL WITHIN 21 DAYS OF DETERMINATION, ASSIGN THE
EMPLOYER WITHOUT PAYMENT THE BENEFIT OF ANY AGREEMENT FOR THE
SUPPLY OF MATERIALS, GOODS AND/OR FOR THE EXECUTION OF ANY
WORK FOR THE PURPOSES OF THE CONTRACT TO THE EXTENT THAT THE
SAME IS ASSIGNABLE.
• CLAUSE 25.4 ( C ) - THE CONTRACTOR WHEN INSTRUCTED IN WRITING BY
ARCHITECT SHALL REMOVE THE WORKS ANY TEMPORARY BUILDINGS,
CONSTRUCTION PLANT, TOOLS, EQUIPMENT, MATERIALS AND GOODS
BELONGING TO OR HIRED BY HIM. IF WITHIN A REASONABLE TIME AFTER
ANY SUCH INSTRUCTION HAS BEEN ISSUED TO CONTRACTOR, HE HAS
NOT COMPLIED WITH, THE EMPLOYER MAY WITHOUT LIABILITY REMOVE
AND SELL ANY SUCH PROPERTY BELONGING TO THE CONTRACTOR
EXCEPT THOSE THAT ARE ON HIRE AND HOLD THE PROCEEDS LESS ALL
COSTS INCURRED TO THE CREDIT OF THE CONTRACTOR.

27. • CLAUSE 25.4 (D) - THE CONTRACTOR SHALL ALLOW OR PAY TO
THE EMPLOYER ALL COST INCURRED TO COMPLETE THE WORKS
INCLUDING ALL LOSS AND/OR EXPENSE SUFFERED BY THE
EMPLOYER. UNTIL AFTER THE COMPLETION OF THE WORKS
UNDER CLAUSE 25.4(A), THE EMPLOYER SHALL NOT BE BOUND BY
ANY PROVISION IN THE CONTRACT TO MAKE ANY FURTHER
PAYMENT TO THE CONTRACTOR, INCLUDING PAYMENTS WHICH
HAVE BEEN CERTIFIED BUT YET PAID WHEN THE EMPLOYMENT OF
THE CONTRACTOR WAS DETERMINED. UPON COMPLETION OF
THE WORKS, AND ACCOUNT TAKING INTO CONSIDERATION THE
VALUE OF WORKS CARRIED OUT BY THE CONTRACTOR AND ALL
COST INCURRED BY EMPLOYER TO COMPLETE THE WORKS
INCLUDING LOSS AND/OR EXPENSES SUFFERED BY THE EMPLOYER
SHALL BE INCORPORATED IN A FINAL ACCOUNT PREPARED IN
ACCORDANCE WITH CLAUSE 25.6

28. QUESTION 9
ADVISE JAZZ ON THE MANNER IN
WHICH THE EXTENSION OF TIME WAS
PURPORTEDLY GIVEN FOR THE
RECONFIGURATION OF THE
BEDROOMS.

29. ACCORDING TO PAM FORM 2006,
• JAZZ IS THE CIVIL AND STRUCTURAL ENGINEER APPOINTED FOR THIS PROJECT.
• CLAUSE 2.1 STATES THAT THE ARCHITECT IS EMPOWERED BY THE CONDITIONS
TO ISSUE INSTRUCTIONS
• THUS, THE ARCHITECT IS THE CONTRACT ADMINISTRATOR
• JAZZ DOES NOT HAVE ANY CONTRACTUAL RIGHTS TO ADMINISTRATE THE
CONTRACT, THUS CANNOT GRANT EXTENSION OF TIME

30. ACCORDING TO PAM FORM 2006,
• ASSUME PICASSO WHICH IS THE CONTRACT
ADMINISTRATOR IS THE ONE WE ARE ADVISING.
• SCENARIO: “CAN-DO (CONTRACTOR) GAVE NOTICE OF
DELAY AND REQUESTED FOR AN EOT FOR
RECONFIGURATION OF THE BEDROOM 6 MONTHS AFTER
THE VARIATION WORKS WERE ORDERED.”
• CLAUSE 23.1 (A) STATES THAT “THE CONTRACTOR SHALL
GIVE WRITTEN NOTICE TO THE ARCHITECT HIS INTENTION
TO CLAIM FOR SUCH EOT… WITHIN 28 DAYS FROM THE
DATE OF THE AI”
• CLAUSE 23.1 (B) STATES THAT “…IF THE CONTRACTOR
FAILS TO SUBMIT SUCH PARTICULARS WITHIN THE STATED
TIME,… IT SHALL BE DEEMED THAT THE CONTRACTOR HAS
ASSESSED THAT SUCH RELEVANT EVENT WILL NOT DELAY
THE COMPLETION OF THE WORKS…”

31. ACCORDING TO FIDIC FORM,
• SCENARIO: “CAN-DO (CONTRACTOR) GAVE
NOTICE OF DELAY AND REQUESTED FOR AN
EOT FOR RECONFIGURATION OF THE
BEDROOM 6 MONTHS AFTER THE VARIATION
WORKS WERE ORDERED.”
• SUB-CLAUSE 20.1 STATES THAT “IF THE
CONTRACTOR FAILS TO GIVE NOTICE OF A
CLAIM WITHIN SUCH PERIOD OF 28 DAYS,
THE TIME FOR COMPLETION SHALL NOT BE
EXTENDED…”

32. ACCORDING TO PAM FORM 2006 & FIDIC
FORM,
• CAN-DO (CONTRACTOR) IS NOT ENTITLED FOR EOT, AS
• THE CONTRACTOR GAVE LATE NOTICE OF DELAY (6 MONTHS INSTEAD OF 28 DAYS FROM THE DATE OF
THE EVENT)
• NOTICE OF DELAY IS A CONDITION PRECEDENT OF ANY EOT ENTITLEMENT
• JAZZ SHOULD NOT HAVE GRANTED THE EOT REQUESTED.
• HOWEVER, AS THE CLAUSES FOR EOT IN THE FIDIC HAS NOW BEEN DELETED ON JOLLY’S
INSTRUCTION AND VARIATION FALLS UNDER THE CATEGORY OF DELAY BY EMPLOYER, THE TIME
WOULD BE AT LARGE
• WHEN TIME IS AT LARGE, JAZZ SHOULD ASSESS THE REASONABLE TO COMPLETE SUCH WORKS
AND IF SUCH WORK IS NOT COMPLETED IN TIME, JOLLY CAN SUE THE CONTRACT UNDER
COMMON LAW AS THE DELAY DAMAGES NO LONGER APPLIES.
• IN THIS CASE, JAZZ SHOULD ACT ON HIS OWN OPINION AS AN INDEPENDENT CERTIFIER AND
NOT SUBJECT TO APPROVAL OF JOLLY (THE EMPLOYER).

33. QUESTION 10
a) ADVISE JAZZ ON WHAT THEY HAVE TO DO AND ON THE CONSEQUENTIAL
EFFECTS IF JOLLY WISHES TO TAKE OVER PART OF THE WORKS BEFORE
COMPLETION OF THE WHOLE WORKS.
b) IF THE CONTRACT FORM IS THE AGREEMENT AND CONDITIONS OF PAM
CONTRACT 2006 (WITH QUANTITIES), HOW WILL YOU ADVISE PICASSO?
ANSWER THE QUESTION ON THE ASSUMPTION THAT NO CERTIFICATION OF
NON-COMPLETION HAS BEEN ISSUED BY PICASSO.

34. QUESTION 10 (A)
• THIS QUESTION IS RELEVANT TO SUB-CLAUSE 10.2 OF FIDIC CONDITIONS OF
CONTRACT FOR CONSTRUCTION.
• JAZZ SHALL ISSUE A TAKING-OVER CERTIFICATE FOR THE PART OF WORK THAT
JOLLY WISHES TO TAKE OVER BEFORE THE COMPLETION OF WHOLE WORK
• UPON ISSUANCE, CAN-DO SHALL BE GIVEN EARLIEST OPPORTUNITY AND SHALL
CARRY OUT TESTS ON COMPLETION AS SOON AS PRACTICABLE BEFORE THE END
OF DEFECTS NOTIFICATION PERIOD.
• JOLLY SHALL NOT USE PART OF THE WORK BEFORE THE ISSUANCE OF TAKING-
OVER CERTIFICATE

35. QUESTION 10 (A)
WHAT IF JOLLY USED THE PART OF WORK BEFORE THE ISSUANCE?
• THE PART WHICH IS USED WILL BE DEEMED TO HAVE BEEN TAKEN OVER
• THE RESPONSIBILITY NOW LIES ON JOLLY, NOT CAN-DO
• CAN-DO CAN REQUEST JAZZ TO ISSUE THE TAKING-OVER CERTIFICATE

36. QUESTION 10 (A)
CONSEQUENTIAL EFFECT:
• DAILY RATE OF DELAY DAMAGES PROPORTIONATELY REDUCED
• DEFECTS NOTIFICATION PERIOD STARTS [SUB-CLAUSE 11.1]
• CARE OF PARTS ENDS EXCEPT IN RESPECT OF ANY OUTSTANDING WORK
• SITE POSSESSION RETURNS TO EMPLOYER EXCEPT ACCESS TO COMPLETE
OUTSTANDING WORK
• OBLIGATION TO INSURE AND MAINTAIN INSURANCE COVER ENDS

37. QUESTION 10 (A)
CONSEQUENTIAL EFFECT (CONT’D)
• FIRST HALF OF THE RETENTION MONEY CERTIFIED AND PAID FOR THE PART [SUB-
CLAUSE 14.9]
• 84-PERIOD FOR SUBMISSION OF STATEMENT AT COMPLETION STARTS [SUB-
CLAUSE 14.10]
• NO FURTHER VARIATION CAN BE ISSUED [SUB-CLAUSE 13.1]

38. QUESTION 10 (B)
• THIS QUESTION IS RELEVANT TO CLAUSE 16 OF PAM CONTRACT 2006.
• PICASSO SHALL GIVE WRITTEN NOTICE OF INTENTION TO TAKE PARTIAL
POSSESSION TO CAN-DO
• PICASSO SHALL IDENTIFY PART TO BE TAKEN OVER
• HE SHALL MAKE SURE THAT THE CONTRACTOR HAS GIVEN HIS CONSENT
• HE SHALL ALSO ISSUE THE CERTIFICATE OF PARTIAL COMPLETION WITHIN 14
DAYS OF TAKING PARTIAL POSSESSION AS STATED IN CLAUSE 16.1(A)

39. QUESTION 10 (B)
CERTIFICATE OF PARTIAL COMPLETION SHALL INCLUDE
• DATE OF PARTIAL POSSESSION
• LAYOUT PLAN TO IDENTIFY THE OCCUPIED PART
• ESTIMATED VALUE OF OCCUPIED PART

40. QUESTION 10 (B)
CONSEQUENTIAL EFFECTS:
• EFFECT OF PRACTICAL COMPLETION IS APPLIED ON THE TAKEN PART [CLAUSE
16.1(B)]
• DEFECT LIABILITY PERIOD COMMENCED FOR THE OCCUPIED PART
• LIQUIDATED DAMAGES REDUCED BY RATIO OF ESTIMATED VALUE OF OCCUPIED
PART TO CONTRACT SUM [CLAUSE 16.1(C)]
• ISSUE PAYMENT CERTIFICATE TO RELEASE HALF OF RETENTION SUM WITHIN 14
DAYS BY RATIO OF ESTIMATED VALUE OF OCCUPIED PART TO CONTRACT SUM
[CLAUSE 16.1(D)]

41. QUESTION 10 (B)
CONSEQUENTIAL EFFECTS:
• DLP ENDS EARLIER, ISSUANCE OF CERTIFICATE OF MAKING GOOD DEFECTS UPON
ENDING OF DLP FOR OCCUPIED PART
• ISSUE PAYMENT CERTIFICATE OF 2ND HALF OF RETENTION SUM WITHIN 14 DAYS
AFTER CMGD

42. CALCULATION ON RETENTION SUM/MONEY
• ASSUMING THE PART TAKEN OVER
HAS AN ESTIMATED VALUE OF RM
20,200,200.00
• MAXIMUM RETENTION ASSUMED TO
BE 5 %, CALCULATION FOR FIDIC WILL
BE AS FOLLOWED:
• RM20,200,200.00/RM80,800,800.00
X RM4,040,040.00 X 40%
• = RM404,004.00
• AS FOR PAM, THE CALCULATION WILL
BE
• RM20,200,200.00/RM80,800,800.00
X RM4,040,040.00 X ½
• =RM505,005.00

43. CALCULATION FOR DELAY/LIQUIDATED
DAMAGE
• FOR FIDIC AND PAM
• RM20,200,200.00/RM80,800,800.00 X RM1,000,000.00
• = RM250,000.00
• THE DELAY DAMAGE TO BE IMPOSED
= RM1,000,000.00-RM250,000.00
= RM750,000.00

44. QUESTION 11
DISCUSS JAZZ’S ACTION TO ISSUE AN
INSTRUCTION TO OMIT PORTIONS OF THE
WORKS FROM CAN-DO’S CONTRACTED SCOPE
SO THAT ANOTHER CONTRACTOR CAN BE
ENGAGED TO CARRY OUT THE OMITTED
PORTIONS.

45.  PAM Form 2006 (With Quantities) assume Engineer is Architect
A certain portion of works have been omitted from the Engineer’s Instructions assigned to Can-Do and have
been arranged for another contractor to carry out the omitted works.
From the point of view of the Contractor:
As stated in Clause 6.1, all works, materials, goods and workmanship shall be of the respective quality and
standards described in the Contract Document. According to Clause 6.5, In the case where it is not up to
quality, the consultant admin may
a) Remove the materials from site
b) To demolish and reconstruct
c) To rectify such work as AI
d) To submit a method statement within 7 days of receipt of the written instructions
e) To leave all works with the consent of the employer together with the appropriate set-off
As stated in Clause 15.3(b), 15.4, 15.5, 29.1, 30.4 if the Contractor, Can-Do fails to attend to the defects, the
employer may employ and pay other Person to rectify the defects. All defects not made good by the Contractor
shall be set-off.

46.  FIDIC Contract Form
Based on Clause 4.9, the contractor shall institute a quality assurance system to demonstrate compliance with the
requirements of the Contract. Compliance with the quality assurance system shall not relieve the Contractor of any
of his duties, obligations or responsibilities under the Contract, which in this case Can-Do did not comply with the
quality assurance system.
Based on Clause 7.6, if the Contractor fails to comply with the instructions, the Employer, Jolly is entitled to employ
and pay other Person to carry out the work. Except to the extent that the Contractor would have been entitled to
payment for the work, the Contractor shall subject to Sub-Clause 2.5 pay to the Employer all costs arising from this
failure.
11. Discuss Jazz’s action to issue an instruction to omit portions of the works from Can-Do’s contracted scope so
that another contractor can be engaged to carry out the omitted portions.

47. QUESTION 12
ADVISE JOLLY (EMPLOYER) ON THEIR RIGHTS IN
RESPECT OF THE FAILURE OF THE MEMBRANE
ROOFING WORKS.

48. 12. Advise Jolly (Employer) on their rights in respect of the failure of the membrane roofing works.
 PAM Form 2006 (With Quantities)
Due to the failure of the membrane roofing works, Jolly has the rights to set-off all cost incurred for loss and
expense which such as stated Clause 30.4 where the contractor is in breach of the followings:
a) Under clause 15.3(b) where failure to comply with his undertaking to rectify minor defects, Jolly is able to
engage other Person to execute the works to give effect to the contractor’s said undertaking. All cost
including loss and expense shall be set-off by the employer.
b) Besides, under clause 15.3(c), Jolly can accept the defects as it is, but subject to an appropriate set-off
against the contractor, Can-Do.

49.  FIDIC Contract Form
Under Clause 11.3, Jolly shall be entitled subject to Sub-Clause 2.5 to an extension of the Defects Notification
Period for the Works or a Section if and to the extent that the Works, Section or a major item of Plant cannot be
used for the purposes for which they are intended by reason of a defect or damage. However, a Defects
Notification Period shall not be extended by more than two years.
Since the Defects Notification Period had expired, under Clause 11.10 also stated that each Party shall remain
liable for the fulfilment of any obligation which remains unperformed at that time; and as for the purposes of
determining the nature and extent of unperformed obligations, the Contract shall be deemed to remain in force.
12. Advise Jolly (Employer) on their rights in respect of the failure of the membrane roofing works.

50. QUESTION 13
WHAT ARE THE DUTIES AND
OBLIGATIONS OF JAZZ AND CAN
DO FOLLOWING RECEIPT OF THE
NOTICES FROM THE LATTER ON
THEIR CLAIM FOR EXTENSION OF
TIME AND ADDITIONAL PAYMENT.

51. FIDIC
IN ACCORDANCE TO CLAUSE 20.1

52. • JAZZ HAS 42 DAYS FROM RECEIPT OF FULLY DETAILED CLAIM TO
RESPOND WITH HIS APPROVAL, DISAPPROVAL OR DETAILED
COMMENTS, AND MAY ALSO REQUEST FURTHER PARTICULARS.
• CAN DO (CONTRACTOR) IS OBLIGED TO KEEP CONTEMPORARY
RECORDS TO SUBSTANTIATE THE CLAIM. JAZZ (ENGINEER) MAY
MONITOR RECORD KEEPING AND INSTRUCT IF NECESSARY,
FURTHER RECORDS FROM CAN DO.
• CAN DO SHOULD ALLOW INSPECTION OF RECORDS AND IF
REQUESTED, SUBMIT COPIES TO JAZZ.
• IF DELAYING EVENT HAS NO CONTINUING EFFECTS, CAN DO
SUBMITS FINAL ACCOUNT OF CLAIM WITHIN 28 DAYS OF
CESSATION OF EFFECTS ( OR SUCH PERIOD APPROVED BY JAZZ)

53. • IF EVENT IS CONTINUING, CONTRACTOR SUBMITS INTERIM
ACCOUNT AT INTERVALS AS REQUIRED BY JAZZ.
• IN THE ABSENCE OF ANY AGREEMENT BETWEEN JOLL
(EMPLOYER) AND CAN DO, JAZZ DETERMINES FAIR EXTENSION
AND NOTIFIES CONTRACTOR.
• JAZZ HAS TO TAKE INTO ACCOUNT DELAY CAUSES AND EFFECT
OF A REVIEW OF ANY PREVIOUS DETERMINATIONS OF TIME
EXTENSIONS WHICH MAY RESULT IN AN INCREASE, BUT NOT A
DECREASE, IN THE TOTAL TIME EXTENSION.
• AGREE OR MAKE FAIR DETERMINATION OF EOT
• NO TIME LIMIT FOR MAKING DETERMINATION BUT MUST NOT
UNREASONABLY BE WITHHELD OR DELAYED BY JAZZ.

54. PAM
(2006)

55. EOT AND LOSS AND/OR EXPENSE IS IN TWO
DIFFERENT CLAUSES 23.0 AND 24.0
RESPECTIVELY IN THE PAM FORM
UNLIKE
IN FIDIC WHICH IS BOTH UNDER ONE CLAUSE.

56. ASSUMING PICASSO IS THE CONTRACT ADMINISTRATOR
EXTENTION OF TIME – CLAUSE 23.0
BEFORE GRANTING EOT THE JAZZ SHALL CONSIDER THE FOLLOWING
:
• THE APPLICATION MUST BE IN WRITING
• THE CAUSE OF DELAY MUST BE WITHIN THE PROVISIONS OF THE
CONTRACT (I.E. RELEVANT EVENTS STATED IN CLAUSE 23.8)
• CAN DO MUST HAVE TAKEN ALL PRACTICAL STEPS TO MITIGATE
(PREVENT OR REDUCE) DELAY
• THE DELAYS MUST HAVE ‘MATERIALLY’ DISRUPTED THE REGULAR
PROGRESS OF THE WORKS, RESULTING IN THE COMPLETION DATE
BEING BREACHED
• THE ‘NETT EFFECTIVE’ DELAY MUST BE ASSESSED BASED ON
APPROVED WORK PROGRAMME IN RELATION TO THE WHOLE OF

57. AFTER PICASSO HAS COMPLETED HIS ASSESSMENT, HE HAS TO
MAKE EITHER OF 2 DECISIONS:
1) REJECT THE CONTRACTOR’S APPLICATION, STATING THE
REASONS; OR
2) GRANT AN APPROPRIATE EXTENSION OF TIME AND ISSUE THE
CERTIFICATE OF EOT, STATING THE FOLLOWING:
• AN ANALYSIS OF EACH EVENT CAUSING THE DELAY
• THE NO. OF DAYS GRANTED FOR EACH EVENT
• THE TOTAL NO. OF EOT AND THE NEW COMPLETION DATE
• A BREAK-DOWN OF THE ‘EVENT-BY EVENT’ WITH THE RELEVANT
REASONS.

58. TIMING OF ISSUE :
• WITHIN 6 WEEKS FROM THE DATE OF RECEIPT OF SUFFICIENT
PARTICULARS; OR
• IF PICASSO CANNOT ISSUE EOT WITHIN 6 WEEKS, HE SHALL
INFORM CAN DO FOR AN EXTENSION AND GET HIS CONSENT; OR
• IF PICASSO CANNOT DETERMINE THE EOT REQUIRED, HE MAY
ISSUE A ‘PROVISIONAL’ EOT AND LEAVE IT FOR REVIEW AFTER
PRACTICAL COMPLETION (CLAUSE 23.10)

59. LOSS AND/OR EXPENSE - CLAUSE 24.0
• BY RELEVANT EVENTS LISTED IN CLAUSE 24.3
• PICASSO SHALL ASCERTAIN THE AMOUNT OF LOSS AND/OR
EXPENSE.
• THE AMOUNT ASCERTAINED FROM TIME TO TIME SHALL BE
ADDED TO THE CONTRACT SUM
• IF INTERIM CERTIFICATE IS ISSUED AFTER THE DATE OF
ASCERTAINMENT, IT SHALL BE INCLUDED IN THE CERTIFICATE.

60. CONTRACTOR’S COMMON LAW RIGHTS UPON REJECTION
OF HIS CLAIMS:
• CAN DO MAY BE ABLE TO PURSUE HIS CLAIM UNDER COMMON
LAW FOR DAMAGES.
• HE CAN ONLY DO THIS, PROVIDED HE HAS SATISFIED THE
CONDITION PRECEDENT UNDER CLAUSE 24.1(A) REGARDING
WRITTEN NOTICE

61. QUESTION 14
IF THE STANDARD FORM OF CONTRACT IS THE
AGREEMENT AND CONDITIONS OF PAM 2006 (WITH
QUANTITY), DISCUSS THE RULES TO BE
CONSIDERED BY GULP (IN THEIR CAPACITY AS THE
NAMED QUANTITY SURVEYOR) WHEN VALUING THE
VARIATIONS RELATING TO THE RECONFIGURATION
OF THE BEDROOMS.

62. PAM 2006 (WITH QUANTITIES)
• Clause 11.5 Valuation Of Variations And Provisional Sums
All variations shall be measured and valued by the Quantity surveyor. Where any recording of the
site information and/or site measurements are carried out at the site, the Contractor shall provide
the Quantity Surveyor with such assistance as may be necessary to carry out the works and the
Contractor shall be given opportunity to be present to take such notes and measurements as he
may require”
• Clause 11.6(a) Valuation Rules
“Where work is of similar character to, is executed under similar conditions as, and does not
significantly change the quantity of work as set out in the contract documents, the rates and the
prices in the contract documents shall determine the valuation”
• Clause 11. 6(b) Valuation Rules
“Where work is of similar character to work as set out in the contract documents but is not executed
under similar conditions or is executed under similar conditions but there is a significant change in
the quantity of work carried out, the rates and prices in the contract documents shall be the basis
for determining the valuation which shall include a fair adjustment to the rates to take into account
such difference”
• Clause 11.6 (C) Valuation Rules
“Where work is not of similar character to work as set out in the contract documents, the valuation
shall be at fair market rates and prices determined by the quantity surveyor”

63. Rules to be considered by gulp in when valuing the variation relating to the reconfiguration
of the bedrooms:
1. Re-measure the site on the variation work
2. Establish nature of work:
i. Works of similar character and executed under similar conditions and does not
significantly change quantity of work
ii. Works of similar character to work set out in contract documents but not executed
under similar conditions OR works of similar character to work set out in the contract
document, executed under same conditions but there is a significant change in the
quantity of work involved
iii. Work is not of similar character to work set out in contract document
3. Value variations according to the valuation rules of the nature of work.
i. Rates and prices in contract documents shall determine valuation
ii. Rates and prices in contract documents shall be the basis for determining the
valuation; including fair adjustment in the rates to take into account such difference
iii. Fair market rates and prices determined by the quantity surveyor

64. QUESTION 15
YOU HAVE BEEN REQUESTED BY JOLLY TO ASSIST IN
DRAFTING THE LETTER OF ACCEPTANCE. ON THE
ASSUMPTION THAT THE CONTRACT FORM IS THE
AGREEMENT AND CONDITIONS OF PAM CONTRACT
2006 9 WITH QUANTITIES), PREPARE A DRAFT
LETTER OF AWARD TO BE ISSUED BY PICASSO AND
PRESENT IT TO THE CLASS

65. *** REFER TO ATTACHMENT***
../DOWNLOADS/QUESTION 15- REVISED LOA.PDF

66. QUESTION 16 (A)
OUTLINE THE PROCEDURE THAT JAZZ AND CAN-
DO MUST COMPLY WITH WHEN DEALING WITH THE
CLAIM FOR ADDITIONAL PAYMENT ARISING FROM
THE COLLAPSED TEMPORARY WORKS

67. CLAUSE 20.1 FIDIC
• Procedure for Can-Do ( contractor)
1. Contractor shall give notice within 28 days after the date on which the contractor
become aware, or should have become aware of the relevant event or
circumstances
2. *After 28 days, the contractor is deemed to have waived his rights to:
i. Claim for extension of time
ii. Additional payment
iii. And employer is discharged from all liability connected with the claim.
3. Supporting particulars should be provided by the contractor and the contractor
should also maintain such contemporary records as may be needed to substantiate
claims.
4. Contractor to allow inspection of records and if requested, submit copies.
5. A claim with continuing effects, contractor should submit an interim claim at
intervals as required by engineer

68. • *Case law
• Supported by case of Bremer Handelgesellschaft Mbh V Vanden Avenne Izegem
Nv,
• House Of Lords held that provisions should be construed as a condition
precedent, and so would be binding if:
• It states the precise time within which the notice is to be served, and
• It makes plain by express language that unless the notice is served within that
time, the party making the claim will lose its rights under the clause.

69. Procedure For Jazz (Engineer/Contract Administrator)
1. Engineer may monitor record-keeping and instruct for further records if necessary
2. Engineer has 42 days from receipt of fully detailed claim to respond his approval,
disapproval or detailed comments.
3. Engineer may also request further particulars.
4. No time limit for making decision, but must not unreasonably withheld or delayed
However, in this case, there was an absence of agreement of extension of time because Employer
has instructed for the sub-clauses to be omitted from the Contract. Hence, the Engineer will
determine a fair extension while considering;
i. Causes of delay,
ii. Effect of a review of any previous determinations of time extension which may result in in an
increase, but not decrease in total time of extension
iii. Notifies contractor

70. 16 (B)
IF THE CONTRACT FORM IS THE AGREEMENT AND
CONDITIONS OF PAM CONTRACT 2006 (WITH
QUANTITIES) HOW WILL YOU ADVICE PICASSO AND
CAN-DO ON THE CLAIM FOR LOSS AND EXPENSE?

71. 1. Clause 24.1 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works
i. 24.1 (A)
ii. 24.1 (B)
2. Clause 24.3 (a-n) Matters Materially Affecting The Regular
Progress Of The Works

72. ADVICE FOR CAN-DO
• If Can-do (contractor) expects that the regular progress of works is likely to be
materially affected by matters expressly referred in clause 24.3, and he is likely to
incur loss and/expense which cannot be reimbursed by payment made under other
provisions in the contract he may make a claim for such loss and/or expense
• The Contractor has to submit written notice to architect (Picasso) on his intention to
claim for loss and/or expense with initial estimate of his claims, duly supported by
documents
• Notice shall be given within 28 (days) from date of AI, CAI or start of occurrence of
matters stated in clause 24.3
• Within 28 (days) after matters referred to in clause 24.3 have ended, Contractor shall
send to the Architect and Quantity Surveyor complete particulars of his claims for loss
and/or expense together with all the necessary calculations to substantiate his claims
• If contractor fails to do (4) within the stated time or within periods as agreed in writing
by Architect, it is deemed that he has waived his rights for loss and/or expense

73. • ADVICE FOR PICASSO
1. Architect must ensure that Contractor submitted his notice of intention to
claim in writing
2. Architect must ensure the notice is submitted within 28 (days) upon the
occurrence of matters in 24.3 and date of the AI and CAI
3. Architect must ensure the Contractor submits the complete particulars of his
claim for loss and/or expense together will all necessary calculations to
substantiate his claims within time stated or agreed period in writing by
architect
4. Architect must assess if the matters claimed by the Contractor is expressed in