•What is Contract?
•What is Construction Contract?
•Purpose of Construction Contract
•Contract for Bid and Procurement
•Contract for Pricing Arrangement
•Construction Contract Component
•Contract Document List
•Standard Form of Contract in Malaysia
This seminar was part of the Bar Council practical construction law series presented by the Construction Law Committee to practitioners. It covers the topic of payments and common issues arising in the construction industry.
Contracts provide a legally-enforceable framework for guiding any and every type of business relationship, from employment agreements to orders for parts and supplies. While these agreements are key to guiding business relationships and ventures across all sectors, getting contracts right is especially important within construction, where the ability to complete a build on time, on budget and to code hinges upon all vendor arrangements going as expected. From the builder’s perspective, contracts are also important for preventing scope creep and to reducing the risk of cost overruns they may unexpectedly have to absorb.
Construction management contracts encompass the work and/or materials required for a building project. Typically, they will address:
1)Project/deliverable specifications
2)Labor and material requirements
3)Timelines for completion/delivery
4)Compensation formula and amounts
While construction management agreements will typically include the above, they can be structured differently, with numerous types of contracts that are designed to best meet the needs of all parties under all sorts of different scenarios. Familiarizing yourself with the types of contracts that are typically in play within building projects is an important first step to optimizing all contract-related processes within construction management.
This seminar was part of the Bar Council practical construction law series presented by the Construction Law Committee to practitioners. It covers the topic of payments and common issues arising in the construction industry.
Contracts provide a legally-enforceable framework for guiding any and every type of business relationship, from employment agreements to orders for parts and supplies. While these agreements are key to guiding business relationships and ventures across all sectors, getting contracts right is especially important within construction, where the ability to complete a build on time, on budget and to code hinges upon all vendor arrangements going as expected. From the builder’s perspective, contracts are also important for preventing scope creep and to reducing the risk of cost overruns they may unexpectedly have to absorb.
Construction management contracts encompass the work and/or materials required for a building project. Typically, they will address:
1)Project/deliverable specifications
2)Labor and material requirements
3)Timelines for completion/delivery
4)Compensation formula and amounts
While construction management agreements will typically include the above, they can be structured differently, with numerous types of contracts that are designed to best meet the needs of all parties under all sorts of different scenarios. Familiarizing yourself with the types of contracts that are typically in play within building projects is an important first step to optimizing all contract-related processes within construction management.
Contracts and Tenders
When two or more persons have common intention communicated to each other to create same obligation between them there is said to be an agreement. An agreement which is enforceable by law is a Contract.
A Tenders is called upon for executing certain specified work, or supplying specified materials; subjected to certain terms and conditions like rates, time limit, etc. It is an offer in written form: Legally speaking, it is an offer to receive an offer for the work, within the specified financial limits.
Check for more presentations at - www.archistudent.net
Contract management is the systematic process of creating, administering, and enforcing contracts between two or more parties. It ensures both parties fulfill their obligations as outlined in the agreement and minimizes potential risks.
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WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
ASHWINI KUMAR UPADHYAY v/s Union of India.pptxshweeta209
transfer of the P.I.L filed by lawyer Ashwini Kumar Upadhyay in Delhi High Court to Supreme Court.
on the issue of UNIFORM MARRIAGE AGE of men and women.
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
DNA Testing in Civil and Criminal Matters.pptxpatrons legal
Get insights into DNA testing and its application in civil and criminal matters. Find out how it contributes to fair and accurate legal proceedings. For more information: https://www.patronslegal.com/criminal-litigation.html
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptxOmGod1
Victims of crime have a range of rights designed to ensure their protection, support, and participation in the justice system. These rights include the right to be treated with dignity and respect, the right to be informed about the progress of their case, and the right to be heard during legal proceedings. Victims are entitled to protection from intimidation and harm, access to support services such as counseling and medical care, and the right to restitution from the offender. Additionally, many jurisdictions provide victims with the right to participate in parole hearings and the right to privacy to protect their personal information from public disclosure. These rights aim to acknowledge the impact of crime on victims and to provide them with the necessary resources and involvement in the judicial process.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
2. • What is Contract?
• What is Construction Contract?
• Purpose of Construction Contract
• Contract for Bid and Procurement
• Contract for Pricing Arrangement
• Construction Contract Component
• Contract Document List
• Standard Form of Contract in Malaysia
Topic of Discussion
3. Proposal Promise Agreement Contract
• A consent agreement made by two or more parties,
with certain conditions and guarantees to do anything in
return for the benefits which good is known as a
consideration.
• The contract is the law that regulates the deal.
• Only an agreement that has the characteristics of a contract
only has legal implications.
• An agreement enforceable by law is a Contract.
>2
What is CONTRACT ?
4. The standard defines construction contract as
•
a contract specifically negotiated for the construction of an asset
or a combination of assets that are closely interrelated or
interdependent in terms of their design, technology and function
or their ultimate purpose or use.’
What is CONSTRUCTION CONTRACT ?
In other words,
A construction contract provides a legal binding agreement, for
both the owner and the builder, that the executed job will
receive the specific amount of compensation or how the
compensation will be distributed.
5. • To allocate duties between parties. (Supervisory Power &
Obligation)
• To reduce the uncertainty surrounding the project and allow the
parties to plan for the project and future. (Extent of Obligation)
• To make provision on the time for completion and interim control
of the progress of the works. (TIME)
• To ensure that work in is valued prudently with correct
matching of revenue and costs by defining what amount to be
paid, how any additional or reduced payments are to be
computed and when payments are to be made. (Payment)
• To recognize & allocate risk or remedies available to the different
parties. (Remedies)
• To make provisions on insurance against a range of risks.
(Insurance)
PURPOSE of Construction Contract
6. Contract for Bid and
Procurement
• Traditional General Contracts
• „Design and Build Contracts
• Management Contracts
• Construction Management
Contracts
• „Hybrid‟ Contracts
• Term Contracts
• Miscellaneous Contracts
• Government Construction
Contract
Contract for
Pricing Arrangement
• Lump Sum or Fixed Price
Contract
• Time and Material
Contracts (when Scope is
not Clear)
• Cost Plus Contracts
• Unit Pricing Contract
Hold harmless
Agreement
(Insurance)
• Broad Form
• Intermediate Form
• Limited Form
8. TRADITIONAL General Contracting
• General Contracting / Employer-Design Contracting / Design-Bid-Build Contracting
• Contract & Financial
Relationship
• Supervision &
Instruction
• Coordination
• Product and Services
delivery
Characteristic:
• The separation of the design
from the production or
manufacture.
• Single main contractor
undertakes total responsibility
to the employer for all the
work under the contract.
• Sub-Con do not enter into
direct Contractual relation
with the employer.
(* Limited Form of Contract enter
between the employer and
chosen sub-con)
Architect
Client
Contractor
Sub-Cons
LimitedForm
9. DESIGN & BUILD Contracts
• Contract & Financial
Relationship
• Supervision &
Instruction
• Coordination
• Product and Services
delivery
Client
Contractor
Characteristic:
• the contractor undertakes both
designing and constructing the
contract works.
• combination of most (if not all)
of the essential tasks of a
project e.g. design
procurement, manufacture,
fabrication, production,
construction and management
into a single package.
• the supervisory powers of the
employer’s representative are
more limited than those of a
contract administrator under a
traditional general contract.
(Source: http://www.bem.org.my/publication/march-
may2005/CF(CONTRACTS).pdf)
Sub-Cons Sub-Cons
Architect
10. MANAGEMENT Contracts
• Contract & Financial
Relationship
• Supervision &
Instruction
• Coordination
• Product and Services
delivery
Client
Sub-Cons/
Coordinator
Sub-Cons Contractor Architect
Characteristic:
• Role is to manage, co-
ordinate and supervise the
work of numerous
specialists by whom the
whole of the construction
work is carried out.
• Main Contractor and
Design team are relieved
of any responsibility to the
employer.
11. CONSTRUCTION MANAGEMENT Contracts
• Contract & Financial
Relationship
• Supervision &
Instruction
• Coordination
• Product and
Services
delivery
Client
Sub-Cons/
Coordinator
Sub-Cons Contractor Architect
Characteristic:
• Share common
characteristics with
management contracts.
• Employer enters into a
direct contractual
relationship with each of
the specialist contractors
(SUB-CONS).
12. HYBRID Contracts
‘Develop & Construct’
Contract
• similar to a design and
build contract, but a
concept design is
prepared by
independent
professionals engaged
by the employer before
the design and build
contractor is selected
‘Design & Manage’
Contract
• similar to a
management contract,
but the contractor is
also responsible for
detailed design or for
managing the design
process
‘Design & Construction
Management’ Contract
• similar to construction
management but the
construction manager is
also responsible for
detailed design or for
managing the design
process.
Designer
Designer
Designer
=
13. TERMS Contracts
• Employer seeks to make provision for the
carrying out of certain categories of work
(usually minor works of alteration or repair
and/or maintenance) during a specified
period of time.
• Depending upon the terms on which
tenders are invited and accepted, the
resulting legal relationship may be a
contract which binds the contractor to
carry out whatever work of the specified
description the employer chooses to order
during the PERIOD stated.
• Alternatively, the acceptance of a tender
may result in a ‘standing offer’ by the
contractor, which ripens into a contract on
each occasion that an order is placed but
which may be revoked at any time.
• Contract & Financial
Relationship
• Supervision &
Instruction
Client
Contractor
• Product and
Services
delivery
14. This is a type of a privately
financed contract whereby
the contractor finances the
project, designs it, undertakes
the construction, owns and
operates it.
MISCELLANEOUS Contracts
‘Build, Operate & Transfer’
Contract
= =
Continuation Contract
This is an ‘ad hoc’
arrangement to extend the
scope of the initial or original
contract beyond its original
ambit.
Partnering Contract
This contract is in
essence an extension to
the normal serial
contract whereby over a
predetermined period of
time, the contractor
automatically receives
all new contracts from
the employer.
Serial Contract
This is a contract resulting
from a procedure called
‘serial tendering’. It offer to
carry out work for more than
one project in accordance
with the tender submitted for
the initial project.
This is similar to a term
contract, but the execution of
work or supply of goods is
required at intervals, regularly
or on demand.
Periodic Contract Independent
Contract
This is essentially a
‘contract for services’
whereby the party
undertaking a stipulated
task for an agreed
consideration is free to
select his own mode of
doing it.
15. Contract with The
Government Department
• The extent to which contracts
can be made on behalf of the
Federal Government, and the
Governments of the states is
governed by the Government
Contracts Act 1949.
• Accordingly, the Government
is bound by a contract made
by a proper agent acting
within the scope of his
authority but not otherwise.
• A Government Officer who
enters into a contract within
the scope of his authority not
liable to be sued personally
upon any contract made in
that capacity.
• Actions by or against the
Government are instituted or
defended by the Attorney
General.
SPECIAL PARTIES Contracts
Contract with The Local
Authority
• A local authority must make
standing orders with regard to
contracts for the execution of
works or the supply of goods or
materials.
• However, a contractor is not
bound to inquire whether the
relevant standing orders have
been complied with, and non
compliance by itself does not
invalidate any contract.
• Protection is afforded to local
authorities or persons acting in the
execution of statutory or other
public duties in respect of any
act, neglect or default done or
committed by the Public
Authorities Protection Act 1948.
Contract with
Companies,
Corporations and
Partnerships
• the formalities required for
the execution of contracts
are effectively identical to
those for individuals, save
for particular requirements
as stipulated in the
respective statutory
enactments.
17. ‘There are several types of contracting approaches between
owner and contractor and each supports different project
environments and project approaches.’
Lump Sum Contract
Time & Material Contract
Cost Plus Contract
Unit Pricing Contract
Contract for Pricing Arrangement
18. LUMP SUM or FIXED PRICE Contracts
• This type of contract involves a TOTAL FIXED
PRICED for all construction-related activities.
• If actual cost of the works exceeds the agreed
price, the contractor must bear the additional
expense. While if the cost of the works is less than
the agreed price, the contractor will benefit from
the savings.
• Lump sum contracts can include incentives or
benefits for early termination, or can also have
penalties, called liquidated damages, for a late
termination.
• Lump Sum contracts are preferred when a CLEAR
SCOPE and a DEFINED SCHEDULE has been
reviewed and agreed upon.
(* Price allow to change under circumstances :
Variations, Relevant Events, Provision Sums,
Fluctuations, Payment to NSC, Statutory fees or
payments relating to opening up and testing the
works.)
19. TIME & MATERIAL Contracts
When using time and materials contracts,
the following items could be negotiated:
Labor Rate : Specifying Fixed rate for all
labor.
Material Mark-Up : Add between 15-35%
onto material prices
Not-to-Exceed: Maximum Amount being
charged by Contractors
Maximum Labor Hours : When contractors
exceed a specified amount, additional
hours shall not be billed to other party.
Time and material contracts are usually
preferred if the PROJECT SCOPE IS NOT
CLEAR, or has not been defined.
The owner and the contractor must
establish an agreed HOURLY OR DAILY
RATE, including additional expenses that
could arise in the construction process.
20. COST PLUS Contracts
• This type of contract involves payment of the actual
costs, purchases or other expenses generated directly
from the construction activity. Cost plus contracts must
contain specific information about a certain pre-
negotiated amount (some percentage of the material
and labor cost) covering contractor’s overhead and
profit.
• Costs must be detailed and should be classified as direct
or indirect costs. There are multiple variations for Cost
plus contracts and the most common are:
• Cost Plus Fixed Percentage
• Cost Plus Fixed Fee
• Cost Plus with Guaranteed Maximum Price Contract
• Cost Plus with Guaranteed Maximum Price and Bonus
Contract
• Cost plus contracts are used when the SCOPE HAS NOT
BEEN CLEARLY DEFINED and it is the owner responsibility
to establish some limits on how much the contractor will
be billing. When some of the aforementioned options are
used, those incentives will serve to protect the owner's
interest and avoid being charged for unnecessary
changes. Be aware that cost-plus contracts are difficult
or harder to track and more supervision will be needed,
normally do not put a lot of risk in the contractor.
Under Cost plus Contract, Contractor get paid for almost every expense related to the construction job
21. UNIT PRICING Contracts
• This kind of contract is based on estimated
quantities of items included in the project and
their unit prices. The final price of the project is
dependent on the quantities needed to carry
out the work.
• In general this contract is only suitable for
construction and supplier projects where the
different types of items, but not their numbers,
can be accurately identified in the contract
documents.
• Unit pricing contracts is probably another type
of contract commonly used by builders and in
federal agencies.
• Unit prices can also be set during the bidding
process as the owner REQUESTS SPECIFIC
QUANTITIES and pricing for a pre-determined
amount of unitized items.
• Unit price can easily be adjusted up and/or
down during scope changes, making it easier
for the owner and the builder to reach into
agreements during change orders.
23. CONSTRUCTION CONTRACT COMPONENT
A Construction contract agreement
should have the following sections:
• Project Description
• Contract Price
• Payment Basis
• Construction Schedule/Calendar
• CONTRACT DOCUMENT LIST
• Construction Scope
• Construction Conditions &
Responsibilities
• Contract Laws
• Contract Document List
1. Agreement or article of
agreement
2. Conditions of contract
3. Appendix to the
conditions
4. Drawings & Plans
5. Specification
6. Bill of Quantities
7. Schedules of Rates
8. Programme or method
statement
9. Miscellaneous
Document
10. Design and Build
Document
24. MANDOTORY list :
CONSTRUCTION CONTRACT DOCUMENT LIST
1. FORM OF TENDER
(AGREEMENT OR ARTICLES OF
AGREEMENT)
This document describes in
general terms the parties, the
contract works and the price,
and evidences the intention of
the parties to be bound.
1A. SUMMARY OF TENDER
Usually drafted by
contractor.
To refer to Form of Tender if
any deviation occurs
2. CONDITIONS OF
CONTRACT
Detailed conditions,
often in standard form
(with or without
amendments), amplify
and explain the basic
obligations of the
parties and lay down
administrative
procedures to be
followed during the
progress of the works;
3. APPENDIX TO THE
CONDITIONS:
Certain information specific to
a particular contract, such as
dates of commencement or
completion and amounts of
liquidated damages, is
commonly required to be
inserted by the parties in an
Appendix to the conditions
before the contract is
executed.
4. DRAWINGS & PLANS
Drawings are prepared by
whoever is responsible to the
employer for the design of all
or part of the proposed works,
and are the major vehicle for
conveying the intentions of
the designer to the contractor.
5. SPECIFICATIONS
This document amplifies
the contract drawings by
providing a verbal
description of such
methods as the scope of
work, methods of
construction, quality of
finishes and standards of
workmanship
25. MANDOTORY list (BASED ON RELEVENCY) :
CONSTRUCTION CONTRACT DOCUMENT LIST
6. BILL OF QUANTITIES:
This document itemizes in great detail the contract work as described in the drawings
and the specifications.
It may, but need not constitute an exhaustive statement of the work which the
contractor undertakes to perform in return for the agreed price.
Where, as is common, the bill of quantities is required by the contract to be drawn up
in accordance with a particular standard method of measurement, any deviation
from the prescribed method may entitle the contractor to claim payment for
additional work.
OR
7. SCHEDULE OF RATES
Where there are no priced bill of quantities, a document setting out rates applicable to
various categories of contract work may be required for the assessment of interim
payments.
26. CONSTRUCTION CONTRACT DOCUMENT LIST
8. PROGRAMME OR METHOD
STATEMENT
Contractor are frequently
defined by the contract in
such a way that there is no
obligation on either party to
comply with the dates or
methods contained in them.
The documents are regarded
merely as aids in project
planning and coordination
ADDITIONAL list (BASED ON RELEVENCY) :
9.MISCELLANEOUS
DOCUMENTS
Various other documents
may be required for
sufficiency, clarity and
completeness purposes. These
include, inter alia, documents
such as the contractor’s
tender submissions, any
addenda and/or
clarifications, post tender
submission negotiations,
documents amending the
offer
10. DESIGN & BUILD
DOCUMENT
Certain design and build
contracts replace the
documents listed above
with three alternative
documents comprising
the ‘Employer’s
Requirements’ issued by
the employer and the
‘Contractor’s Proposals’
and the ‘Contract Sum
Analysis’ submitted by
the contractor
28. • The standard form of construction contract are issued by
the following bodies and institutes:
a) Jabatan Kerja Raya (“JKR”).
b) Pertubuhan Arkitek Malaysia (“PAM”).
c) Construction Industry Development Board (“CIDB”).
d) The Institution of Engineers, Malaysia.
PAM
Pertubuhan
Arkitek Malaysia
JKR
Jabatan Kerja
Raya
IEM
Institution of
Engineers
Malaysia
CIDB
Construction
Industry
Development
Board
Type of Contract in Malaysia
• These standard forms of construction contract contain clauses which allow for the
determination of the employment of the contractor in the event of specified
defaults.
29. Jabatan Kerja Raya (“JKR”).
• JKR has produced a number of standard forms for use in
public sector works, both for building works and civil
engineering works. However, it is observed that the forms
are also commonly used in private sector contracts.
However, it is not the case that all public sector works follow
the PWD 203 variants of contract forms especially those
funded by World Bank or Asian Development Bank (for
example)where preference seems to be for the adoption of
FIDIC Forms.
30. Pertubuhan Arkitek Malaysia
(“PAM”).
• The Malaysian Institute of Architects (Pertubuhan Arkitek Malaysia
– PAM) form of contract for building works are by far the most
often adopted standard forms of contract used for building works
in the Malaysian private sector. PAM 2006 is the third generation
of the PAM standard form has been adapted greatly from the first
generation version known as PAM 1969.
• The first edition was for practical purposes a lightly amended
version of the JCT 1963 standard form of building contract. PAM
2006 comes in two versions, with quantities and without
quantities and it was launched on April 2007. The latest edition
has received mixed reviews from the industry. Many consider it
still to remain cluttered with deficiencies and glaring omissions
which many construction and legal practitioners still consider
difficult to comprehend and appear to have been carried through
from earlier editions.
31. Construction Industry
Development Board (“CIDB”).
• CIDB has to date produced two standard forms; one is CIDB
Standard Form of Contract for Building Works (2000 Edition)
and the other is CIDB Standard Form of Sub-Contract for
Nominated Sub-Contractor.10 It is planned by CIDB that a
standard form of Design and Build Contract and another for
Civil Engineering Contract will also be published. It may be
of interest to note that CIDB has also produced a booklet on
“Standard Proforma for Contract (sic) Administration” which
is expressly stated to be used in conjunction with CIDB
Standard Form of Contract for Building Works.
32. The Institution of Engineers,
Malaysia.
• IEM standard forms essentially are hybrid forms except for
the IEM Conditions of Contract for Mechanical and Electrical
Works which essentially follows the corresponding FIDIC
standard form. The various forms published by IEM, it needs
to be appreciated, are the only ones currently for use in
private sector civil engineering works and mechanical and
electrical works in Malaysia.
33. STANDARD FORMS OF CONTRACT
GOVERNMENT
JKR/PWD
203 (2010) –
WITHOUT QUANTITIES
203A (2010) –
WITH QUANTITIES
203N (2010) –
FOR NOMINATED
SUPPLIERS
JKR FORM FOR DB
(2010 EDN.) FOR
DESIGN & BUILD
CONTRACTS
MISCELLANEOUS
CIDB FORM FOR
BUILDING
CONTRACTS 2000
MODIFIED JKR/PWD
FORMS E.G. LPK,
MHA, ETC.
PRIVATE
SECTOR
BUILDING WORKS
PAM 2006 – WITH
QUANTITIES
PAM 2006 – WITHOUT
QUANTITIES
PAM NSC 2006
CIVIL ENGINEERING
WORKS
IEM CONDITIONS –
IEM. CE 1/89
IEM CONDITIONS –
IEM. CES 1/90
M&E WORKS
IEM CONDITIONS –
IEM. ME 1/94
TNB CONDITIONS. ETC
MALAYSIA STANDARD FORM OF CONTRACT
34. MALAYSIA STANDARD FORM OF CONTRACT
STANDARD FORMS OF CONTRACT
INTERNATIONAL CONTRACTS
FIDIC
IEC
IEEE
IMechE
JCT
35. MALAYSIA STANDARD FORM OF CONTRACT
(Private Sector)
PAM
Persatuan Arkitek
Malaysia
PAM/
ISM
1969
PAM
1998
(Pertubuhan Arkitek Malaysia Standard Form)
PAM
2006
Revision
3 ARTICLES
34 CLAUSES
Widely use in the private sectors especially projects headed by architects
3 ARTICLES
35 CLAUSES
7 ARTICLES
38 CLAUSES
36. MALAYSIA STANDARD FORM OF CONTRACT
(Private Sector-Building Works)
PAM
1998
PAM
2006
Comparison between PAM 2006 and 1998
3 ARTICLES
35 CLAUSES
7 ARTICLES
38 CLAUSES
4 new articles added
• to define the roles of supporting
consultants (Article 4, 5 & 6)
• to provide clearer definitions (Article
7)
• 3 new clauses added
• Clause 36.0 – Notice
• Clause 37.0 – Performance Bond
• Clause 38.0 – Governing Law
37. • Clause 1.0 – Contractor’s Obligation
• Clause 2.0 – Architect’s Instruction (AI)
• Clause 3.0 – Contract Documents, Programme And As-built Drawing
• Clause 4.0 – Statutory Obligations, Notices, Fees And Charges
• Clause 5.0 – Levels And Setting Out Of The Works
• Clause 6.0 – Materials, Goods and Workmanship To Conform To
Description , Testing and Inspection
• Clause 7.0 – Royalties And Intellectual Property Rights
• Clause 8.0 – Site Agent
• Clause 9.0 – Access To The Works
• Clause 10.0 – Site Staff
• Clause 11.0 – Variations, Provisional and Prime Cost Sums
• Clause 12.0 – Contract Bills
• Clause 13.0 – Contract Sum
• Clause 14.0 – Materials and Goods
• Clause 15.0 – Practical Completion And Defects Liability
MALAYSIA STANDARD FORM OF CONTRACT
(Private Sector-Building Works)
Comparison between PAM 2006 and 1998
38. • Clause 16.0 – Partial Possession By Employer
• Clause 17.0 – Assignment And Sub-Contracting
• Clause 18.0 – Injury To Person Or Loss And/Or Damage Of Property and
Indemnity To Employer
• Clause 19.0 – Insurance Against Injury To Person And Loss And/Or Damage Of
Property
• Clause 20.A – Insurance Of New Buildings/Works – By The Contractor
• Clause 20.B – Insurance Of New Buildings/Works – By The Employer
• Clause 20.C – Insurance Of Existing Buildings Or Extension – By The Employer
• Clause 21.0 – Date of Commencement, Postponement And Completion Date
• Clause 22.0 – Damages For Non-Completion
• Clause 23.0 – Extension Of Time
• Clause 24.0 – Loss And/Or Expenses Caused By Matters Affecting the Regular
Progress Of the Works
• Clause 25.0 – Determination Of Contractor’s Employment By Employer
• Clause 26.0 – Determination Of Own Employment By Contractor
• Clause 27.0 – Nominated Sub-Contractors
MALAYSIA STANDARD FORM OF CONTRACT
(Private Sector-Building Works)
Comparison between PAM 2006 and 1998
39. • Clause 28.0 – Nominated Suppliers
• Clause 29.0 – Works By Craftsmen, Tradesmen Or Other Contractors
Employed Or Engaged By Employer
• Clause 30.0 – Certificates And Payment
• Clause 31.0 – Outbreak Of Hostilities
• Clause 32.0 – War Damage
• Clause 33.0 – Antiquities
• Clause 34.0 – Adjudication And Arbitration
• Clause 35.0 – Mediation
• Clause 36.0 – Notice
• Clause 37.0 – Performance Bond
• Clause 38.0 – Governing Law
MALAYSIA STANDARD FORM OF CONTRACT
(Private Sector-Building Works)
Comparison between PAM 2006 and 1998
40. MALAYSIA STANDARD FORM OF CONTRACT
(Private Sector-Building Works)
PAM
2006
PAM 2006
With
Quantities
PAM 2006
Without
Quantities
PAM 2006
NSC
Nominated Sub-
Contractor
Clause 11 - Variation
With Quantities empowers the
Architect and/or the Quantity
surveyor to evaluate claims.
The QS is absent in Without Quantities
although in practice a QS may be
commissioned to assist the architect
in the contract administration.
Clause 12 - Quality and Quantity of
works
With Quantities - Contract Bills form
the basis for quantity of the works.
The BQ carry the risk of error in
quantities. Since the risk of error of
quantity is born by the employer, any
correction to the quantity would
entitle the contractor for a VO (12.2)
Without Quantities - The Contract Sum
is derived from the contractor's own
estimate of the quantity based on
Drawings and Specifications. Here,
the risk of error in quantity is borne by
the contractor.
Differences
41. MALAYSIA STANDARD FORM OF CONTRACT
(Government Sector-JKR/PWD)
(JKR Standard Form)
JKR
Jabatan Kerja Raya
YEAR
1983
YEAR
2007
YEAR
2010
Revision
• Mainly for government projects or use by government linked agencies
(building and engineering work)
42. MALAYSIA STANDARD FORM OF CONTRACT
(Government Sector-JKR/PWD)
JKR
Jabatan Kerja
Raya
JKR
203A
JKR
203
JKR
203N
JKR
203P
JKR
203 DB
With
Quantities
Without
Quantities
Nominated
Sub-
Contractor
Nominated
Supplier
Design &
Build
Contract
43. (CIDB Standard Form and Term of Contract)
MALAYSIA STANDARD FORM OF CONTRACT
(Government -Miscellaneous)
CIDB
Construction
Industry
Development
Board
Year
2000
Available since
2000 but less
popular
44. MALAYSIA STANDARD FORM OF CONTRACT
(Government -Miscellaneous)
(CIDB Standard Form and Term of Contract)
The initiatives undertaken to continuously enhance the professionalism and current
practices of the construction industry players covering from the procurement stage to
the completion of a construction projects including payment through :
• Continuous enhancement of the tender procedure in both public and private sectors
by incorporating best practices.
• Facilitate the use of standard forms and terms of contracts and standard codes of
practices that distribute the risks equally and appropriately to all parties according to
the circumstances of projects.
• Introduce a ‘Construction Industry Payment and Adjudication Act’ to resolve non-
payment issues.
45. MALAYSIA STANDARD FORM OF CONTRACT
(Government -Miscellaneous)
Standard Form Guide
Buildings
Work
NSC
CIDB
Construction Industry
Development Board
STANDARD FORM
46. MALAYSIA STANDARD FORM OF CONTRACT
(Government -Miscellaneous)
CIDB
Construction Industry
Development Board
STANDARD TERMS
OF CONTRACT
Standard Term of
Construction
Contract for
Renovation and
Small Projects
Standard Term of
Contract for Sub
Contract Work 2007
47. MALAYSIA STANDARD FORM OF CONTRACT
(Private Sector-Eng. Works)
(Institution of Engineers Malaysia Standard
Form)
IEM
Institution of
Engineers
Malaysia
the only domestic standard form of contract which
are published for the use in private sector civil
engineering and Mechanical & Electrical
Engineering contracts in Malaysia.
Used mostly for engineering works or projects headed by engineers
48. IEM
Institution of
Engineers
Malaysia
IEM Forms of Contract is produced
in three standard forms:
CIVIL
IEM Conditions of Contract for Works
mainly of Civil Engineering Construction
(1989)
IEM Standard Conditions of Sub-Contract
for use in conjunction with IEM Condition
of Contract for Works of mainly Civil
Engineering Construction (1990)
M&E
IEM Conditions of Contract for
Mechanical and Electrical Works (1994)
MALAYSIA STANDARD FORM OF CONTRACT
(Private Sector-Eng. Works)
52. JKR Contract
JENIS-JENIS KONTRAK DI JKR
• Konvensional ( siri JKR 203 )
• Design and Build / Turnkey
• Kontrak Antarabangsa
• B.O.T
• Deferred Payment scheme
PELAKSANAAN KONTRAK KONVENSIONAL
Perancangan
Rekabentuk
Perolehan
Pembinaan
Operasi &
Selenggara
Oleh kontraktor
Oleh Kerajaan
Oleh Kerajaan
PELAKSANAAN KONTRAK TURNKEY / D & B
Perancangan
Rekabentuk
Perolehan
Pembinaan
Operasi &
Selenggara
Oleh kontraktor
Oleh Kerajaan
Oleh kontraktor
PELAKSANAAN KONTRAK B.O.T
Perancangan
Rekabentuk
Perolehan
Pembinaan
Operasi &
Selenggara
Oleh kontraktor
Oleh kontraktor
Oleh kontraktor
BORANG KONTRAK PIAWAI YANG DIGUNAKAN DI JKR
JKR 203 – kontrak kerja ( Lump Sum )
JKR 203 A – kontrak kerja ( BQ )
JKR 203 N – sub kontrak kerja
JKR 203 P – sub kontrak bekalan
JKR 203 H ( 12/83 ) – bekalan barang-barang stor
JKR 203 E ( 10/89 ) – bekalan jentera & peralatan
kejuruteraan
JKR 203 Q – bekalan batu kuari
JKR 203 R – mengangkut bahan dalam satu daerah
53. PENYEDIAAN DOKUMEN KONTRAK
-hendaklah disediakan bagi semua perolehan melebihi RM 200,000.00
-hendaklah ditandatangani oleh oleh pegawai yang diberi kuasa oleh Menteri mengikut Akta Kontrak
1949
-perlu disiapkan dan ditandatangani dalam
tempoh 4 bulan dari tarikh LOA
JENIS-JENIS BORANG KONTRAK SIRI JKR 203 UNTUK KERJA
-JKR berdasarkan lukisan & spesifikasi
-JKR 203 A - berdasarkan bills of quantities
-JKR 203 N - nominated sub contract
PENYEDIAAN DOKUMEN KONTRAK
Fasal 1 (a) (I) – Dokumen yang menjadi sebahagian daripada kontrak
Perkara-Perkara Perjanjian
Borang Tender
Surat Setuju Terima Tender
Syarat-Syarat Kontrak ( serta lampiran )
Pelan-Pelan
Spesifikasi Dan Addenda
Senarai kuantiti / Ringkasan Tender
Jadual Kadar Harga
Peruntukkan Khas kpd Syarat-Syarat Kontrak (senaraikan )
Arahan Perbendaharaan (spt lampiran Syarat-Syarat Kontrak )
Arahan Pentender
54. • PENYEDIAAN DOKUMEN KONTRAK
• Lump-Sum JKR 203
• Perkara Perjanjian
• Borang Kontrak JKR 203
• Borang Tender
• Peruntukan Khas
• Surat Setuju Terima Tender
• Pelan-Pelan Kontrak
• Spesifikasi dan Addenda
• Ringkasan Tender
• Jadual Kadar Harga
• Arahan Kepada Pentender
• BQ JKR 203 A
• Perkara Perjanjian
• Borang Kontrak JKR 203 A
• Borang Tender
• Peruntukkan Khas
• Surat Setuju Terima Tender
• Pelan-Pelan Kontrak
• Spesifikasi dan Addenda
• BQ
• Arahan Kepada pentender
PENYEDIAAN DOKUMEN KONTRAK
• Fasal 26 (d) - Pelarasan Kadar harga
• kesilapan perkiraan
• pengagihan harga yang munasabah
untuk mengelak front loading
• memastikan keseragaman harga
• pelarasan peratusan dalam jadual
kadar harga pindaan terhadap
pelarasan ini tidak mengubah harga
tender
PENYEDIAAN DOKUMEN KONTRAK
-Polisi Insurans dan Kod perkeso
-Fasal Insurans Tanggungan Awam
-Fasal Insurans Kerja
-Fasal Kod Majikan dengan Perkeso
-Isikan maklumat dalam lampiran
kepada Syarat-Syarat Kontrak
55. PENYEDIAAN DOKUMEN
SUBKONTRAK PAKAR – 203 N
• Fasal 1 (a) (v) – Dokumen yang
menjadi sebahagian daripada
• Sub-kontrak pakar
• Perkara-Perkara Perjanjian
• Borang Tender
• Syarat-Syarat Membuat Tender
Dan Maklumat Am
• Surat Setuju Terima Tender
• Syarat-Syarat Sub-Kontrak ( serta
lampiran )
• Peruntukan Khas Kpd Syarat-
Syarat Kontrak
• Pelan-Pelan
• Spesifikasi Dan Addenda
• Senarai kuantiti / Ringkasan
Tender & JKH
• Dokumen Wajib Lain
PENYEDIAAN DOKUMEN SUB-
KONTRAK
Fasal 24 – Bon Pelaksanaan
Pilihan samada
jaminan bank
jaminan insurans
jaminan syarikat kewangan
Bon Pelaksanaan disimpan oleh
Kontraktor utama
PENYEDIAAN DOKUMEN SUB-
KONTRAK
Fasal 24 – Bon Pelaksanaan
Pilihan samada
jaminan bank
jaminan insurans
jaminan syarikat kewangan
Bon Pelaksanaan disimpan oleh
Kontraktor utama
56. Perbezaan kontrak konvensional dan reka bina
• Perbezaan kontrak konvensional dan reka bina
• Semakan/kandungan senarai semak
• Kenapa kadar harga perlu diselaraskan
• Kaedah penilaian tender
• Kandungan penilaian tender
• Tugas JK penilaian tender
• Tugas LP tender