The post-contract report summarizes adjustments that need to be made for the final account of an apartment project. It discusses how omitted items like an apartment entrance arch can be treated as a variation and valued. It also addresses how to assess a contractor's final account submission and price unpriced variations, like relocating an installed door based on day rates or adjusting excavation rates based on a significant change in quantity. The report provides an overview of elements to include in the project's final account, such as variations, remeasuring provisional quantities, and claims for additional expenses or losses.

1. GROUP MEMBERS:
Chong Kai Xiang 0322935 Wendy Teo Siew Yen 0328242
Pang Khai Shuen 0318423 Hiew Li Ming 0319941
Welson Lum Wei Jiunn 0319514 Yap Jia En 0319550
POST-CONTRACT REPORT
FOR APARTMENT PROJECT (2017)

2. 1
POST-CONTRACT
REPORT
FOR APARTMENT PROJECT (2017)
QUESTION 1
The tender drawings show the apartment entrance arch with
guardhouse but no details were provided. The Architect had suggested
that these items be listed as Provisional Sum. However, you have
forgot about this item and did not include it in your tender document.
The contract was awarded without it. The director would also like to
know the significance and implications of this omission by their office.
In addition, you are required to prepare a report to your director,
explaining briefly the adjustments of the essential elements in your
preparation of this project’s final account.
QUESTION 2
In accordance with clause 30.10 of the contract, the contractor duly
submitted his Final Accounts within 6 months after the issuance of the
Certificate of Practical Completion. You are then required to assess this
application and prepare the Final Account for the apartment project
based of the following valuations and adjustments made to the
Contract Sum.
QUESTION 3
Explain the basis on how the following variations may be finalised and
priced during the Final Account stage.
QSB 60904
This report is done in
accordance to the
Professional Practice
2 Module.
Bachelor of Quantity
Surveying (Hons)
School of Architecture,
Building & Design
Taylor’s University

3. 2
QUESTION 1:
Before making any variation order on the work left out from the Provisional Sum, the Architect
and Engineer will have to issue detailed drawings for the apartment entrance arch with guardhouse. This
is to allow the Quantity Surveyor to be able to measure and calculate the total additional quantity for the
work. Any deviation from the agreed scope of work can be identified as variation. Based on Clause 11.1
in PAM Form 2006, the term variation means the alteration or modification of the design, quality or
quantity of the works including the omission of any work in accordance to Clause 11.1(a). Since the
apartment entrance arch with guardhouse were suggested to be included in the Provisional Sum but it was
forgotten to be taken account into the contract document and the contract was already awarded without
them, these items shall be considered as variation.
According to Clause 11.2, it is stated that the Architect may issue an Architect’s Instruction (AI)
ordering or sanctioning any variation and no variation instructed by the Architect shall vitiate the contract.
This clause allows the Architect to make any variations and as stated in Clause 2.1, the Contractor will
have to follow all instructions. Contractor cannot refuse to carry out any Architect’s Instruction issued
even if the quotations of the work have not been approved yet. It is the Contractor’s duty to perform all
the variations with due diligence.
As these items are to be regarded as variation under the original contract where it is now quantified
item in Bills of Quantities itself, the total contract sum of the project will be affected. The rules of valuation
of variation have to fall under the provision of Clause 11.6. Clause 11.6(c) clearly expresses that the
valuation of variation is to follow the fair market rates and prices to be determined by the Quantity
Surveyor. The pre-condition for the mentioned clause is the work must not be of similar character. This
means the items are not listed in the Bills of Quantities. There are two methods to price for the items which
can either be on cost plus basis or basing it on the fair market price. For the former method, basically it
means that the Contractor can submit the cost of the entrance arch with guardhouse properly executed and
the Quantity Surveyor shall add profit for the Contractor based on the percentage. While for the latter
method, it is based on fair market price which is dependent on the current economy. In practice, the

4. 3
QUESTION 1 (CONT’D):
Quantity Surveyor will take up the lower price generated between the cost plus basis and the market price
basis. Hence, the total value of the entrance arch with guardhouse properly done shall be added into the
total contract sum.
The additional clause that the Contractor could claim from is Clause 11.7 where it is a clause on
the additional expense caused by variation. When the Contractor has or is to be incurred on any additional
expenses which cannot be covered under any provisions in Clause 11.6, the Contractor may make a claim
under the conditions that he shall give a written notice within twenty eight (28) days from the date of the
Architect’s Instruction or Confirmation of Architect’s Instruction to the Architect of his intention to claim
for such additional expenses along with the initial estimate coupled with necessary supporting documents
as accordance to Clause 11.7(a). The other condition to be complied is under the Clause 11.7(b) in which
the Contractor is to submit his complete particulars to the Architect and Quantity Surveyor within twenty
eight (28) days of completing such variation. In the event that the Contractor fails to comply and submit
the required particulars within the given period, it is deemed that he has waived his rights to claim for any
additional expenses.
However, by selecting to have these items to be regarded as variation of work, non-value adding
activities and costs are anticipated to increase due to unplanned site meetings and time taken for detailed
drawings to be finalised. Contractor is entitled to claim for extension of time (EOT) if the events causing
any delay to work is relevant under the Clause 23.8. Variation delays the project processes, which
consequently causes delay in achieving the targeted milestones during construction. Compliance of
Architect’s Instruction is one of the relevant events as accordance to Clause 23.8(g). Time is usually
associated with cost. Therefore, with the time of the entire processes to be extended, this results in the
project cost to be increased as well.
Other than regarding these items as variation, the other option that the Client can choose from is
to consider entering in a separate contract which means that both works are the only items in the contract
and this new contract has no effect on the initial contract. Therefore, it will not be held to the rates and

5. 4
QUESTION 1 (CONT’D):
prices in the original contract. By having a new and separate contract for entrance arch and guardhouse,
it will have a different completion date from the initial contract which means the work will not affect the
work progress of the rest of the project. Hence, there will be no basis for the employer to deduct liquidated
damages unless there happens to be any delay to the work in the new contract or any defiance to the pre-
conditions for liquidated damages claim.
Based on clause 30.11, the final account of the works shall show the adjustment made to the
contract sum. The final account shall be conclusive and deemed agreed by the parties unless any
outstanding items to be resolved separately between the Employer and the Contractor. For this project's
final account, the following elements will be including:
i. Variation works
Works executed under clause 11.1 will defined as variation works. If it is an additional work, the
rules of valuation will be based on clause 11.6(a) to 11.6(d). If it is an omission work, the rules of
valuation will be based on clause 11.6(e), stating that contract rates and price will be used for
omissions.
ii. Remeasurement of Provisional Quantities
Provisional quantities need to be re-measured as clause 30.10 stated that documents shall contain
details of quantities. Items in the contracts bills which are provisional quantities shall be re-
measured by Architect based on the actual quantities executed. The rates and prices in the Schedule
of Rates shall determine their valuations based on clause 11.6(f).

6. 5
QUESTION 1 (CONT’D):
iii. Omission of P.C. and Provisional Sum
Clause 30.11(c) says that final account shall show the omission of all P.C. Sums and the related
profits provided by the Contractor in the Contract Documents. In addition, some items that are
allowed in provisional sum will not be added back into the final account, such as contingency sum.
So omission of prime cost and provisional sum is for the amount will be re-measured based on the
tendered price.
iv. Adding-back of NSC's and NS's final accounts
Clause 30.11(c) also says that the final account of the NSC for prime cost sum and provisional
sum should be added back to Final Account as the figure in the contract sum may not be the actual
sum incurred.
v. Adjustment of profit and attendance
Profit and attendance will be given to contractor with the basis of NSC's and NS's final account
based on clause 30.11(c). Profit and attendance will not be given if the provisional sums item is
executed by the contractor.
vi. Adjustment of provisional sum base on actual expended and omitted if not expended
Clause 30.11(d) states that the provisional will be adjusted based on actual expended and will be
omitted if not expended. And for some provisional sum that is executed by an NSC, profit and
attendance will be giving to contractor.
vii. Additional expenses claims
From clause 11.7, any additional expenses caused by the variations that contractor will not be paid
under any provisions in clause 11.6 can be claimed.

7. 6
QUESTION 1 (CONT’D):
viii. Loss and expense claims
Based on clause 24.1, contractor may make a claim for matters referred in clause 24.3. However,
the contractor must have actually incurred loss and expense. Any amount of loss and expense shall
be added to Contract Sum based on clause 24.4. Final account has to include the loss and expenses
incurred by the contractor.

8. 7
QUESTION 2:
PLEASE REFER ATTACHMENT

9. 8
QUESTION 3:
A:
RELOCATION OF AN ALREADY INSTALLED TIMBER DOOR INCLUDING SEALING UP THE WALL
OPENING. AGREED AT THE SITE MEETING FOR CONTRACTOR TO CLAIM BASED ON
DAYWORKS FOR LABOUR, MATERIAL AND PLANT.
In this case, there will have a few new items since the installed door need to be removed such as
hacking, sealing up the opening and hacking of a new opening at the new location of the door. The quantity
of those items may not be properly measured, so, they agree to claim base on the Dayworks for labour,
materials and plants.
Based on the Clause 11.6(d) from PAM Form which is about the rules of valuation which is
including Clauses 11.6(d)(i) and ii.6(d)(ii). It states where work cannot be properly measured and valued
in accordance with Clause 11.6(a), (b) or (c), the contractor shall be allowed the daywork rates in the
schedule of rates (Clause 11.6(d)(i)). PAM Form Clause 11.6(d)(ii) states that where there are no daywork
rates in the schedule of rates, at the actual cost to the contractor of his materials, additional construction
plant and scaffolding, transport and labour for the work concerned, plus fifteen percent, which percentage
shall include for the use of all tools, standing plant, standing scaffolding, supervision, overheads ad profit.
Besides, the time spent daily upon the work, the workers’ names, materials, additional construction plant,
scaffolding ad transport used shall be signed by the Site Agent and verified by the SO’s representative and
shall be delivered to the Architect at weekly intervals with the final records delivered not later than
fourteen Days after work has been completed.

10. 9
QUESTION 3 (CONT’D):
B:
CONTRACTOR NEED TO PROVIDE COMPUTER EQUIPMENT IN THE PRELIMINARIES SECTION
BUT ITEM WAS LEFT UNPRICED, I.E. BQ ITEM WAS LEFT BLANK IN THE RATE/AMOUNT
COLUMN IN THE CONTRACT DOCUMENTS. SUBSEQUENTLY, THIS ITEM WAS OMITTED BY
ARCHITECT.
There are no rules stated that every element in the preliminaries must be priced and standard
methods to price the preliminaries. Even in SMM2 Section B says only a general description of the
works shall be given in preliminaries. If the contractor did not price the computer equipment in the
preliminaries, it shall be deemed that the contractor already included the price of computer equipment
somewhere in the Bill of Quantities.
Therefore, based on PAM Contract 2006 (With Quantities) Clause 11.6 (e), it is stated that the
price and rates of computer equipment priced in somewhere else should be determined and be omitted.
In this situation, Clause 11.6 (e) can be further explained and supported by Clause 11.6 (c).
PAM Contract 2006 (With Quantities) Clause 11.6 (c) says that where the work is not of a similar
character to work as set out in the Contract Document, the valuation shall be at fair market rates and
prices determined by the Quantity Surveyor. This mean the Quantity Surveyor need to omit the price of
computer equipment based on the fair market price. Quantity Surveyor can obtain the price of computer
equipment from the previous similar Contract Documents and quotation from supplier to do cost
analysis.

11. 10
QUESTION 3 (CONT’D):
C:
A WASH TROUGH AS REQUIRED AND PRICED IN THE PRELIMINARIES SECTION WAS NOT
CONSTRUCTED DUE TO SITE CONSTRAINTS IMPOSED LATER BY THE EMPLOYER. HOWEVER,
THE VEHICLES LEAVING THE SITE DURING CONSTRUCTION WERE ALWAYS KEPT CLEAN
INCLUDING THE PUBLIC ROADS USING WATER JET WASHING AND FULL-TIMED WORKERS.
Based on PAM Contract 2006 (With Quantities), Clause 11.1 (d) (iii) states that a variation can be
any changes to the provisions in the Contract with regards to access or utilization of any specific part of
the site. In this case, it is a change to provision in the contract because the wash trough which has been
priced in preliminaries should be constructed at site but was not constructed due to the site constraints and
was replaced with a water jet washing.
Therefore, the price of water through shall be determined and to be omitted as mentioned in PAM
Contract 2006 (With Quantities) Clause 11.6 (e), using Clause 11.6(a) for items with similar conditions,
and the price of water jet washing shall be added into the Contract Documents.
Based on PAM Contract 2006 (With Quantities) Clause 11.6(d) is a valuation rule for work that
cannot be properly measured. According to Clause 11.6(d) (i) says that labor cost can be determined under
the day works rates in the Contract Documents. After that, Clause 11.6 (d) (ii) allows the water jet washing
as machinery can be determined by the receipts or tax invoice by the supplier plus 15% which the
percentage shall include overheads and profits.
Lastly, Clause 11.6(d) also further states that contractors shall records the labor’s name and
machinery used and both of it shall be signed by the Site Agent and verified by the SO’s representative
and shall be delivered to the Architect and Quantity Surveyor at weekly intervals with the final records
delivered not later than fourteen (14) Days after the works has been completed.

12. 11
QUESTION 3 (CONT’D):
D:
MISTAKES WAS MADE IN THE PRICE FOR EXCAVATION THROUGH ROCKS AT RM15 PER M3.
ITEM WAS NOT RATIONALIZED DURING CONTRACT DOCUMENTATION. HOWEVER, ORIGINAL
QUANTITY IN BQ IS 100 M3 BUT RE-MEASURED QUANTITY IS 2000 M3. THE CONTRACTOR
SUBMITTED A CLAIM FOR REVISED RATES OF RM150 PER M3 FOR THE TOTAL QUANTITY OF
2000 M3.
In this case, for the first 100m3 which is the original quantity recorded in the Bill of Quantity the
contract rates and price should be used for the variation. This is because based on the Clause 11.6(a), the
works have the similar character, executed under similar conditions and there is no significantly change
of quantity of works. This is due to the rates and quantity being agreed in the Bill of Quantity and cannot
be changed and amended.
Then, the remaining quantity can be claimed based on the contract rates and prices but with a fair
adjustment to the rates for the difference. Based on the clause 11.6(b), it uses the contract rates and price
but with fair adjustment to the rates for the differences, where the work has the similar character but is not
executed under similar conditions or there is significant change in the quantity of work.
For example, the first 100m3 must be follow the price that has been priced in the contract which
is RM15 per m3 since it is agreed by both parties. However, for the remaining quantity which is 1900m3
can be paid by using the new reasonable rate that is submitted by the contractor. Then, it is the job for
Quantity Surveyor to determine whether the new rate submitted by the contractor is reasonable.

13. 12
QUESTION 3 (CONT’D):
D (CONT’D):
The recommended revised amount of the claim for the contractor is RM286,500 based on the calculation
below:
First 100m3,
100m3 x RM15 = RM1,500
After 100m3,
1,900m3 x RM150 = RM285,000
Total to pay to the contractor = RM1,500 + RM285,000 = RM286,500