This document discusses two clauses from a construction contract: Clause 51.0 on events and consequences of default by the contractor, and Clause 53.0 on termination due to corruption, unlawful or illegal activities. Clause 51.0 states that if a contractor fails to follow the contract, the government can terminate the contract by written notice, the contractor must clear the site, and the government will find a new contractor while the original contractor pays damages. Clause 53.0 allows termination for corruption and requires the same obligations, with the government also entitled to losses from termination. The purpose is to understand contractor and government obligations and prevent disputes under these clauses.

1. GROUP MEMBERS
 PAVITRAH A/P SEGARAN 01DKA14F2025
 PRASANNA SRI A/P RAVI 01DKA14F2002
 JEYASARANIYA A/P PARSURAMAN 01DKA14F2007
 UMESWARAN A/L LETCHUMANAN 01DKA142008

2.  CLAUSE 51.0 : EVENTS AND CONSEQUENCES OF DEFAULT BY THE
CONTRACTOR
 CLAUSE 53.0 : TERMINATION ON CORRUPTION,UNLAWFUL OR ILLEGAL
ACTIVITIES

3. OBJECTIVE
• TO UNDERSTAND ABOUT THE SPECIFIC CLAUSES IN DETAIL.
• TO DETERMINE THE LEGAL SIGNIFICANCE OR THE EXTERNAL ACTS OF THE
PARTY.
• TO GET TO KNOW THE RESPONSIBILITY OF EACH PARTIES ACCORDING TO
THE CLAUSES.
• TO KNOW THE FLOW OF WORK ACCORDING TO THE CLAUSES.

4. PURPOSE OF CLAUSE 51.0
Events and the consequences of default by the contractor.
 1. So that the contractor involved can performed according to the procedures in the clause
specified in the contract.
 2. To avoid any incidents or disputes or disagreements in the contract.
 3. If there is any disagreements or disputes in the contract can be settled fairly and impartially.
 4. To make sure the contractor to understand the impact if the contractor fails to follow the
written procedures in clause.
 5. To make sure the contractor to understand the consequences if the project is terminated.
 6. To let know the contractor on his obligations if the contract is terminated.

5. PURPOSE OF CLAUSE 53.0
TERMINATION ON CORRUPTION,UNLAWFUL OR ILLEGAL ACTIVITIES
 Termination on corruption , unlawful or illegal activities.
 To let the contractor know the procedure and consequences of termination and
corruption, unlawful and illegal activities.

6. Contractor fails
to follow the
written contract.
Government
terminates the
contract by giving
written notice.
The contractor
clears the site
within given
time.
The government
finds a new
contractor to
finish the work.
The contract pays
for the any losses
and damages
during work.
CLAUSE 51.0 : EVENTS AND CONSEQUENCES OF DEFAULT
BY THE CONTRACTOR

7. Corruption
happens
between
contractor and
governments
employees.
Government
terminates the
contract by
giving written
notice.
The contractor
clears the site
within given
time.
The
government
finds a new
contractor to
finish the work.
The contract pays
for the any losses
and damages
during work.
CLAUSE 53.0 : TERMINATION ON CORRUPTION,UNLAWFUL
OR ILLEGAL ACTIVITIES

8. OBLIGATIONS OF PARTIES
CLAUSE 51.0 EVENTS AND CONSEQUENCES OF DEFAULT BY THE CONTRACTOR.
Once the contract is terminated,
CONTRACTOR
 Stop all construction works.
 Must make sure the safety of the site and equipment on site and cleanliness of site.
 Remove all his men from site.
 Vacate the site.
 Must hand over the Government all plans, designs and any other documents related to the work.
 Pay for any losses or damages.
GOVERNMENT
 Call upon the Performance Bond or forfeit the Performance Guarantee Sum.
 Visit the site.
 Take responsibility on his project to continue and complete the work.
 Claim any losses, costs, and damages from contractor.

9. CLAUSE 53.0 TERMINATION ON CORRUPTION, UNLAWFUL OR ILLEGAL ACTIVITIES.
GOVERNMENT
 Entitled to terminate the contract if the company, personal, servants, or employees is convicted by a court of law for corruption.
 Entitled to all losses, costs, damages and expenses arising from such termination.
 Call upon the Performance Bond or forfeit the Performance Guarantee Sum.
 Visit the site.
 Take responsibility on his project to continue and complete the work.
 Claim any losses, costs, and damages from contractor.
CONTRACTOR
 Stop all construction works.
 Must make sure the safety of the site and equipment on site and cleanliness of site.
 Remove all his men from site.
 Vacate the site.
 Must hand over the Government all plans, designs and any other documents related to the work.
 Pay for any losses or damages.

10. IMPACTS FROM CLAUSES
CLAUSE 51.0 EVENTS AND CONSEQUENCES OF DEFAULT BY THE CONTRACTOR.
 It gives clear view for contractor on his obligations towards the contract.
 The contractor understand the consequences that he will face if he failed to follow the
contract.
 The contractor understands the requirements of the government.
 There is mutual understanding between contractor and the government so that the flow of
work is efficient and relevant.

11. CLAUSE 53.0 TERMINATION ON CORRUPTION, UNLAWFUL OR ILLEGAL ACTIVITIES.
 It prevent corruption during tender and construction period.
 It make sure all the works are done according to law.
 New contractors stand chance to win contract.
 There is mutual understanding between contractor and the government so that the flow of
work is efficient and relevant.

12. GLOSSARY
1. Prejudice – Preconceived judgement or opinion about the client
2. Termination – The actions of bringing the contract or the construction to an end.
3. Obligations – A duty / commitment given to the contractor according to the
clauses.
4. Provisions – Amount of statements provided in the clause.
5. Comply – To act according to the clauses.
6. Breach – A failure to do what is required by a clause.
7. Personnel – Employee or workmen of the contractor.
8. Render – To provide.

13. THANK YOU