SlideShare a Scribd company logo
MOHD NOOR HIDAYAT BIN MOHAMAD
• 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
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 ?
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.
• 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
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
Contract for Bid and Procurement
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
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
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.
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).
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
=
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
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.
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.
Contract for Pricing Arrangement
‘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
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.)
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.
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
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.
Construction Contract Component
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
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
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.
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
STANDARD FORM OF CONTRACT IN MALAYSIA
• 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.
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.
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.
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.
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.
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
MALAYSIA STANDARD FORM OF CONTRACT
STANDARD FORMS OF CONTRACT
INTERNATIONAL CONTRACTS
FIDIC
IEC
IEEE
IMechE
JCT
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
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
• 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
• 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
• 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
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
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)
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
(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
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.
MALAYSIA STANDARD FORM OF CONTRACT
(Government -Miscellaneous)
Standard Form Guide
Buildings
Work
NSC
 CIDB
Construction Industry
Development Board
STANDARD FORM
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
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
 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)
Thanks for Patience !
Appendix
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
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
• 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
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
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

More Related Content

What's hot

Professional practice 2
Professional practice 2Professional practice 2
Professional practice 2
ahmong4
 
PP2 - Assignment
PP2 - Assignment PP2 - Assignment
PP2 - Assignment
lucaschinsheng
 
50451783 taking-off-quantity
50451783 taking-off-quantity50451783 taking-off-quantity
50451783 taking-off-quantity
hlksd
 
The architect as contract administrator a legal perspective - presentation ...
The architect as contract administrator   a legal perspective - presentation ...The architect as contract administrator   a legal perspective - presentation ...
The architect as contract administrator a legal perspective - presentation ...Zainab Zainordin
 
Sectional completion and partial possession by employer PP2 Coursework 1
Sectional completion and partial possession by employer PP2 Coursework 1Sectional completion and partial possession by employer PP2 Coursework 1
Sectional completion and partial possession by employer PP2 Coursework 1
Arissa Loh
 
Construction Law Assignment BQS Taylor's University
Construction Law Assignment BQS Taylor's UniversityConstruction Law Assignment BQS Taylor's University
Construction Law Assignment BQS Taylor's University
Pang Khai Shuen
 
Professional Practice 1 Group Assignment
Professional Practice 1 Group AssignmentProfessional Practice 1 Group Assignment
Professional Practice 1 Group Assignment
Haziq1511
 
Tender
TenderTender
Professional Practice II (Group Assignment)
Professional Practice II (Group Assignment)Professional Practice II (Group Assignment)
Professional Practice II (Group Assignment)
Yee Len Wan
 
Assignment - Management Contracting
Assignment - Management ContractingAssignment - Management Contracting
Assignment - Management Contracting
Kai Yun Pang
 
Estimating calculation
Estimating calculationEstimating calculation
Estimating calculation
ZIyeeTan
 
Payments in the construction industry
Payments in the construction industryPayments in the construction industry
Payments in the construction industry
Kheng Hoe Advocates
 
Professional practice 1 report
Professional practice 1 reportProfessional practice 1 report
Professional practice 1 report
Ngo Jia Haur
 
BS Role
BS RoleBS Role
Project management project 1 report (pr architects)
Project management project 1 report (pr architects)Project management project 1 report (pr architects)
Project management project 1 report (pr architects)
Jannah Jailani
 
Pp1 seminar
Pp1 seminarPp1 seminar
Pp1 seminar
wendyteosy
 
ECA Workshop - Brief
ECA Workshop - BriefECA Workshop - Brief
ECA Workshop - Brief
Kai Yun Pang
 
Professional Practice 2: Group Assignment
Professional Practice 2: Group AssignmentProfessional Practice 2: Group Assignment
Professional Practice 2: Group Assignment
마 이환
 
Eca presentation-compile
Eca presentation-compileEca presentation-compile
Eca presentation-compile
Timun Loh
 

What's hot (20)

Professional practice 2
Professional practice 2Professional practice 2
Professional practice 2
 
PP2 - Assignment
PP2 - Assignment PP2 - Assignment
PP2 - Assignment
 
50451783 taking-off-quantity
50451783 taking-off-quantity50451783 taking-off-quantity
50451783 taking-off-quantity
 
The architect as contract administrator a legal perspective - presentation ...
The architect as contract administrator   a legal perspective - presentation ...The architect as contract administrator   a legal perspective - presentation ...
The architect as contract administrator a legal perspective - presentation ...
 
Sectional completion and partial possession by employer PP2 Coursework 1
Sectional completion and partial possession by employer PP2 Coursework 1Sectional completion and partial possession by employer PP2 Coursework 1
Sectional completion and partial possession by employer PP2 Coursework 1
 
Construction Law Assignment BQS Taylor's University
Construction Law Assignment BQS Taylor's UniversityConstruction Law Assignment BQS Taylor's University
Construction Law Assignment BQS Taylor's University
 
Professional Practice 1 Group Assignment
Professional Practice 1 Group AssignmentProfessional Practice 1 Group Assignment
Professional Practice 1 Group Assignment
 
Tender
TenderTender
Tender
 
Professional Practice II (Group Assignment)
Professional Practice II (Group Assignment)Professional Practice II (Group Assignment)
Professional Practice II (Group Assignment)
 
Assignment - Management Contracting
Assignment - Management ContractingAssignment - Management Contracting
Assignment - Management Contracting
 
Estimating calculation
Estimating calculationEstimating calculation
Estimating calculation
 
Payments in the construction industry
Payments in the construction industryPayments in the construction industry
Payments in the construction industry
 
Professional practice 1 report
Professional practice 1 reportProfessional practice 1 report
Professional practice 1 report
 
BS Role
BS RoleBS Role
BS Role
 
bs:copbs101
bs:copbs101bs:copbs101
bs:copbs101
 
Project management project 1 report (pr architects)
Project management project 1 report (pr architects)Project management project 1 report (pr architects)
Project management project 1 report (pr architects)
 
Pp1 seminar
Pp1 seminarPp1 seminar
Pp1 seminar
 
ECA Workshop - Brief
ECA Workshop - BriefECA Workshop - Brief
ECA Workshop - Brief
 
Professional Practice 2: Group Assignment
Professional Practice 2: Group AssignmentProfessional Practice 2: Group Assignment
Professional Practice 2: Group Assignment
 
Eca presentation-compile
Eca presentation-compileEca presentation-compile
Eca presentation-compile
 

Similar to Construction Contract in Malaysia

Construction contract
Construction contract Construction contract
Construction contract
Rakshith Reddy
 
Types of contract
Types of contractTypes of contract
Types of contract
HarshalNarkhede7
 
Types and forms of contracts
Types and forms of contracts Types and forms of contracts
Types and forms of contracts
fritzlejarso
 
William Kosar What Every Budget Officer Should Know_Rwanda
William Kosar What Every Budget Officer Should Know_RwandaWilliam Kosar What Every Budget Officer Should Know_Rwanda
William Kosar What Every Budget Officer Should Know_Rwanda
William Kosar
 
Contract
Contract Contract
Contract
Simran Aggarwal
 
Contract and Types of Contract
Contract and Types of ContractContract and Types of Contract
Contract and Types of Contract
Anupama Krishnan
 
Chapter 1 [compatibility mode]
Chapter 1 [compatibility mode]Chapter 1 [compatibility mode]
Chapter 1 [compatibility mode]
Delhi Technological University
 
Chapter 1 [compatibility mode]
Chapter 1 [compatibility mode]Chapter 1 [compatibility mode]
Chapter 1 [compatibility mode]
Delhi Technological University
 
Chapter 5.1 Contracts Management - Contract Administration-owners perspective...
Chapter 5.1 Contracts Management - Contract Administration-owners perspective...Chapter 5.1 Contracts Management - Contract Administration-owners perspective...
Chapter 5.1 Contracts Management - Contract Administration-owners perspective...
ChandanLawrence
 
Contracts and-tenders
Contracts and-tendersContracts and-tenders
Contracts and-tenders
Archistudent Portal
 
05 Contract Management.pptx . DEFINITION
05 Contract Management.pptx . DEFINITION05 Contract Management.pptx . DEFINITION
05 Contract Management.pptx . DEFINITION
ByishimoBTCChef
 
Project procuremenet contract in ethiopia
Project procuremenet contract in ethiopiaProject procuremenet contract in ethiopia
Project procuremenet contract in ethiopia
Guta Mengesha
 
Types of contracts
Types of contractsTypes of contracts
Types of contracts
Tulsi Pokhrel
 
Contracts and their types
Contracts and their typesContracts and their types
Contracts and their types
Touqeer1
 
Contract- Vijay Suryawanshi
Contract- Vijay SuryawanshiContract- Vijay Suryawanshi
Contract- Vijay Suryawanshi
Vijay Suryawanshi
 
Building contracts and the JCT
Building contracts and the JCTBuilding contracts and the JCT
Building contracts and the JCTJulian Swindell
 
Cfr ias 11 construction contract presentation by MOHSIN MUMTAZ
Cfr  ias 11 construction contract presentation by MOHSIN MUMTAZCfr  ias 11 construction contract presentation by MOHSIN MUMTAZ
Cfr ias 11 construction contract presentation by MOHSIN MUMTAZ
mianmohsinmumtazshb
 
Building Contracts and CDM regulations
Building Contracts and CDM regulationsBuilding Contracts and CDM regulations
Building Contracts and CDM regulationsJulian Swindell
 
LEC - 1.ppt most important lecture note and best
LEC - 1.ppt most important lecture note and bestLEC - 1.ppt most important lecture note and best
LEC - 1.ppt most important lecture note and best
2cd
 
Construction Law Presentation
Construction Law PresentationConstruction Law Presentation
Construction Law Presentation
elliotfus
 

Similar to Construction Contract in Malaysia (20)

Construction contract
Construction contract Construction contract
Construction contract
 
Types of contract
Types of contractTypes of contract
Types of contract
 
Types and forms of contracts
Types and forms of contracts Types and forms of contracts
Types and forms of contracts
 
William Kosar What Every Budget Officer Should Know_Rwanda
William Kosar What Every Budget Officer Should Know_RwandaWilliam Kosar What Every Budget Officer Should Know_Rwanda
William Kosar What Every Budget Officer Should Know_Rwanda
 
Contract
Contract Contract
Contract
 
Contract and Types of Contract
Contract and Types of ContractContract and Types of Contract
Contract and Types of Contract
 
Chapter 1 [compatibility mode]
Chapter 1 [compatibility mode]Chapter 1 [compatibility mode]
Chapter 1 [compatibility mode]
 
Chapter 1 [compatibility mode]
Chapter 1 [compatibility mode]Chapter 1 [compatibility mode]
Chapter 1 [compatibility mode]
 
Chapter 5.1 Contracts Management - Contract Administration-owners perspective...
Chapter 5.1 Contracts Management - Contract Administration-owners perspective...Chapter 5.1 Contracts Management - Contract Administration-owners perspective...
Chapter 5.1 Contracts Management - Contract Administration-owners perspective...
 
Contracts and-tenders
Contracts and-tendersContracts and-tenders
Contracts and-tenders
 
05 Contract Management.pptx . DEFINITION
05 Contract Management.pptx . DEFINITION05 Contract Management.pptx . DEFINITION
05 Contract Management.pptx . DEFINITION
 
Project procuremenet contract in ethiopia
Project procuremenet contract in ethiopiaProject procuremenet contract in ethiopia
Project procuremenet contract in ethiopia
 
Types of contracts
Types of contractsTypes of contracts
Types of contracts
 
Contracts and their types
Contracts and their typesContracts and their types
Contracts and their types
 
Contract- Vijay Suryawanshi
Contract- Vijay SuryawanshiContract- Vijay Suryawanshi
Contract- Vijay Suryawanshi
 
Building contracts and the JCT
Building contracts and the JCTBuilding contracts and the JCT
Building contracts and the JCT
 
Cfr ias 11 construction contract presentation by MOHSIN MUMTAZ
Cfr  ias 11 construction contract presentation by MOHSIN MUMTAZCfr  ias 11 construction contract presentation by MOHSIN MUMTAZ
Cfr ias 11 construction contract presentation by MOHSIN MUMTAZ
 
Building Contracts and CDM regulations
Building Contracts and CDM regulationsBuilding Contracts and CDM regulations
Building Contracts and CDM regulations
 
LEC - 1.ppt most important lecture note and best
LEC - 1.ppt most important lecture note and bestLEC - 1.ppt most important lecture note and best
LEC - 1.ppt most important lecture note and best
 
Construction Law Presentation
Construction Law PresentationConstruction Law Presentation
Construction Law Presentation
 

Recently uploaded

Car Accident Injury Do I Have a Case....
Car Accident Injury Do I Have a Case....Car Accident Injury Do I Have a Case....
Car Accident Injury Do I Have a Case....
Knowyourright
 
Cold War - 1, talks about cold water bro
Cold War - 1, talks about cold water broCold War - 1, talks about cold water bro
Cold War - 1, talks about cold water bro
SidharthKashyap5
 
办理(waikato毕业证书)新西兰怀卡托大学毕业证双学位证书原版一模一样
办理(waikato毕业证书)新西兰怀卡托大学毕业证双学位证书原版一模一样办理(waikato毕业证书)新西兰怀卡托大学毕业证双学位证书原版一模一样
办理(waikato毕业证书)新西兰怀卡托大学毕业证双学位证书原版一模一样
9ib5wiwt
 
VIETNAM - DIRECT POWER PURCHASE AGREEMENTS (DPPA) - Latest development - What...
VIETNAM - DIRECT POWER PURCHASE AGREEMENTS (DPPA) - Latest development - What...VIETNAM - DIRECT POWER PURCHASE AGREEMENTS (DPPA) - Latest development - What...
VIETNAM - DIRECT POWER PURCHASE AGREEMENTS (DPPA) - Latest development - What...
Dr. Oliver Massmann
 
原版仿制(aut毕业证书)新西兰奥克兰理工大学毕业证文凭毕业证雅思成绩单原版一模一样
原版仿制(aut毕业证书)新西兰奥克兰理工大学毕业证文凭毕业证雅思成绩单原版一模一样原版仿制(aut毕业证书)新西兰奥克兰理工大学毕业证文凭毕业证雅思成绩单原版一模一样
原版仿制(aut毕业证书)新西兰奥克兰理工大学毕业证文凭毕业证雅思成绩单原版一模一样
9ib5wiwt
 
WINDING UP of COMPANY, Modes of Dissolution
WINDING UP of COMPANY, Modes of DissolutionWINDING UP of COMPANY, Modes of Dissolution
WINDING UP of COMPANY, Modes of Dissolution
KHURRAMWALI
 
Law Commission Report. Commercial Court Act.
Law Commission Report. Commercial Court Act.Law Commission Report. Commercial Court Act.
Law Commission Report. Commercial Court Act.
Purushottam Jha
 
Abdul Hakim Shabazz Deposition Hearing in Federal Court
Abdul Hakim Shabazz Deposition Hearing in Federal CourtAbdul Hakim Shabazz Deposition Hearing in Federal Court
Abdul Hakim Shabazz Deposition Hearing in Federal Court
Gabe Whitley
 
EMPLOYMENT LAW AN OVERVIEW in Malawi.pptx
EMPLOYMENT LAW  AN OVERVIEW in Malawi.pptxEMPLOYMENT LAW  AN OVERVIEW in Malawi.pptx
EMPLOYMENT LAW AN OVERVIEW in Malawi.pptx
MwaiMapemba
 
Military Commissions details LtCol Thomas Jasper as Detailed Defense Counsel
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselMilitary Commissions details LtCol Thomas Jasper as Detailed Defense Counsel
Military Commissions details LtCol Thomas Jasper as Detailed Defense Counsel
Thomas (Tom) Jasper
 
The Main Procedures for Obtaining Cypriot Citizenship
The Main Procedures for Obtaining Cypriot CitizenshipThe Main Procedures for Obtaining Cypriot Citizenship
The Main Procedures for Obtaining Cypriot Citizenship
BridgeWest.eu
 
Debt Mapping Camp bebas riba to know how much our debt
Debt Mapping Camp bebas riba to know how much our debtDebt Mapping Camp bebas riba to know how much our debt
Debt Mapping Camp bebas riba to know how much our debt
ssuser0576e4
 
ASHWINI KUMAR UPADHYAY v/s Union of India.pptx
ASHWINI KUMAR UPADHYAY v/s Union of India.pptxASHWINI KUMAR UPADHYAY v/s Union of India.pptx
ASHWINI KUMAR UPADHYAY v/s Union of India.pptx
shweeta209
 
Highlights_of_Bhartiya_Nyaya_Sanhita.pptx
Highlights_of_Bhartiya_Nyaya_Sanhita.pptxHighlights_of_Bhartiya_Nyaya_Sanhita.pptx
Highlights_of_Bhartiya_Nyaya_Sanhita.pptx
anjalidixit21
 
DNA Testing in Civil and Criminal Matters.pptx
DNA Testing in Civil and Criminal Matters.pptxDNA Testing in Civil and Criminal Matters.pptx
DNA Testing in Civil and Criminal Matters.pptx
patrons legal
 
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptx
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptxRIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptx
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptx
OmGod1
 
ADR in criminal proceeding in Bangladesh with global perspective.
ADR in criminal proceeding in Bangladesh with global perspective.ADR in criminal proceeding in Bangladesh with global perspective.
ADR in criminal proceeding in Bangladesh with global perspective.
Daffodil International University
 
Notes-on-Prescription-Obligations-and-Contracts.doc
Notes-on-Prescription-Obligations-and-Contracts.docNotes-on-Prescription-Obligations-and-Contracts.doc
Notes-on-Prescription-Obligations-and-Contracts.doc
BRELGOSIMAT
 
Business and Corporate Case Update (2024)
Business and Corporate Case Update (2024)Business and Corporate Case Update (2024)
Business and Corporate Case Update (2024)
Wendy Couture
 
Secure Your Brand: File a Trademark Today
Secure Your Brand: File a Trademark TodaySecure Your Brand: File a Trademark Today
Secure Your Brand: File a Trademark Today
Trademark Quick
 

Recently uploaded (20)

Car Accident Injury Do I Have a Case....
Car Accident Injury Do I Have a Case....Car Accident Injury Do I Have a Case....
Car Accident Injury Do I Have a Case....
 
Cold War - 1, talks about cold water bro
Cold War - 1, talks about cold water broCold War - 1, talks about cold water bro
Cold War - 1, talks about cold water bro
 
办理(waikato毕业证书)新西兰怀卡托大学毕业证双学位证书原版一模一样
办理(waikato毕业证书)新西兰怀卡托大学毕业证双学位证书原版一模一样办理(waikato毕业证书)新西兰怀卡托大学毕业证双学位证书原版一模一样
办理(waikato毕业证书)新西兰怀卡托大学毕业证双学位证书原版一模一样
 
VIETNAM - DIRECT POWER PURCHASE AGREEMENTS (DPPA) - Latest development - What...
VIETNAM - DIRECT POWER PURCHASE AGREEMENTS (DPPA) - Latest development - What...VIETNAM - DIRECT POWER PURCHASE AGREEMENTS (DPPA) - Latest development - What...
VIETNAM - DIRECT POWER PURCHASE AGREEMENTS (DPPA) - Latest development - What...
 
原版仿制(aut毕业证书)新西兰奥克兰理工大学毕业证文凭毕业证雅思成绩单原版一模一样
原版仿制(aut毕业证书)新西兰奥克兰理工大学毕业证文凭毕业证雅思成绩单原版一模一样原版仿制(aut毕业证书)新西兰奥克兰理工大学毕业证文凭毕业证雅思成绩单原版一模一样
原版仿制(aut毕业证书)新西兰奥克兰理工大学毕业证文凭毕业证雅思成绩单原版一模一样
 
WINDING UP of COMPANY, Modes of Dissolution
WINDING UP of COMPANY, Modes of DissolutionWINDING UP of COMPANY, Modes of Dissolution
WINDING UP of COMPANY, Modes of Dissolution
 
Law Commission Report. Commercial Court Act.
Law Commission Report. Commercial Court Act.Law Commission Report. Commercial Court Act.
Law Commission Report. Commercial Court Act.
 
Abdul Hakim Shabazz Deposition Hearing in Federal Court
Abdul Hakim Shabazz Deposition Hearing in Federal CourtAbdul Hakim Shabazz Deposition Hearing in Federal Court
Abdul Hakim Shabazz Deposition Hearing in Federal Court
 
EMPLOYMENT LAW AN OVERVIEW in Malawi.pptx
EMPLOYMENT LAW  AN OVERVIEW in Malawi.pptxEMPLOYMENT LAW  AN OVERVIEW in Malawi.pptx
EMPLOYMENT LAW AN OVERVIEW in Malawi.pptx
 
Military Commissions details LtCol Thomas Jasper as Detailed Defense Counsel
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselMilitary Commissions details LtCol Thomas Jasper as Detailed Defense Counsel
Military Commissions details LtCol Thomas Jasper as Detailed Defense Counsel
 
The Main Procedures for Obtaining Cypriot Citizenship
The Main Procedures for Obtaining Cypriot CitizenshipThe Main Procedures for Obtaining Cypriot Citizenship
The Main Procedures for Obtaining Cypriot Citizenship
 
Debt Mapping Camp bebas riba to know how much our debt
Debt Mapping Camp bebas riba to know how much our debtDebt Mapping Camp bebas riba to know how much our debt
Debt Mapping Camp bebas riba to know how much our debt
 
ASHWINI KUMAR UPADHYAY v/s Union of India.pptx
ASHWINI KUMAR UPADHYAY v/s Union of India.pptxASHWINI KUMAR UPADHYAY v/s Union of India.pptx
ASHWINI KUMAR UPADHYAY v/s Union of India.pptx
 
Highlights_of_Bhartiya_Nyaya_Sanhita.pptx
Highlights_of_Bhartiya_Nyaya_Sanhita.pptxHighlights_of_Bhartiya_Nyaya_Sanhita.pptx
Highlights_of_Bhartiya_Nyaya_Sanhita.pptx
 
DNA Testing in Civil and Criminal Matters.pptx
DNA Testing in Civil and Criminal Matters.pptxDNA Testing in Civil and Criminal Matters.pptx
DNA Testing in Civil and Criminal Matters.pptx
 
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptx
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptxRIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptx
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptx
 
ADR in criminal proceeding in Bangladesh with global perspective.
ADR in criminal proceeding in Bangladesh with global perspective.ADR in criminal proceeding in Bangladesh with global perspective.
ADR in criminal proceeding in Bangladesh with global perspective.
 
Notes-on-Prescription-Obligations-and-Contracts.doc
Notes-on-Prescription-Obligations-and-Contracts.docNotes-on-Prescription-Obligations-and-Contracts.doc
Notes-on-Prescription-Obligations-and-Contracts.doc
 
Business and Corporate Case Update (2024)
Business and Corporate Case Update (2024)Business and Corporate Case Update (2024)
Business and Corporate Case Update (2024)
 
Secure Your Brand: File a Trademark Today
Secure Your Brand: File a Trademark TodaySecure Your Brand: File a Trademark Today
Secure Your Brand: File a Trademark Today
 

Construction Contract in Malaysia

  • 1. MOHD NOOR HIDAYAT BIN MOHAMAD
  • 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
  • 7. Contract for Bid and Procurement
  • 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.
  • 16. Contract for Pricing Arrangement
  • 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
  • 27. STANDARD FORM OF CONTRACT IN MALAYSIA
  • 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)
  • 51.
  • 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