Presentation 7-pp-final

PROFESSIONAL PRACTICE 1
QSB 60604
GROUP MEMBERS :
• TAN KAI XUAN (0325066)
• TAN SHEN SIN
(0324602)
• TEE WAN NEE (0325074)
• TEO CHIANG LOONG (0323762)
TUTORIAL QUESTION 7
PAM FORM OF CONTRACT 2006 (WITH QUANTITIES)

a) A Contractor is currently undertaking works on two construction projects adjoining to each other but under two separate contracts. Project “A” started a year
earlier than project “B”. The work on reinforced concrete framed building in Project “A” is 75% completed with only internal works remaining. Project “B”
consists of mainly infrastructure works such as earthworks, main drain and roadworks. The progress is about 30%. After heavy rain of five hours, both sites
were flooded for three days.
TAN KAI XUAN(0325066)|TAN SHEN SIN(0324602)|TEE WAN NEE (0325074)|TEO CHIANG LOONG (0323762)
Delays due to reasons outside the control of both parties
exceptionally inclement
weather
CLAUSE 23.1
May apply for an
extension of time
CLAUSE
23.1(a)
CLAUSE
23.1(b)
If contractor failed to submit his final claims within the stated
time (28 days of the end of cause of delay), it shall be deemed
that such event will not delay the completion of work.
The contractor shall give written notice to the Architect his
intention to claim for such extension of time

The Contractor is claiming for extension of time citing similar reasons, i.e. exceptionally inclement weather for both projects. Discuss and advise on the
contractor’s entitlement.
CLAUSE 23.8 (a) CLAUSE 23.8 (b)
Heavy rains for 5 hours are under Force Majeure
and it basically limits the contractors risk in
contract by removing his liability to pay
damages for late completion when Force
Majeure has occurred or frustration of contract
would occur.
As the contractor is claiming for EOT for the
similar reasons which are exceptionally
inclement of the weather, it would be referred to
the Clause 23.8 b which is the EOT for relevant
of time referred to exceptionally inclement
weather
.
CHECKING THE
WEATHER FORECAST
REPORT FROM THE
METHODOLOGY

CLAUSE 23.2
The contractor shall send a copy of such written
notice & particulars to the Nominated Sub-
Contractor concerned.
CLAUSE 23.3
The architect shall inform the Contractor to
resubmit the particulars if it is insufficient for the
architect to decide on the application for extension
of time.

CLAUSE 23.4
The Architect shall consider the Contractor's
submission and shall either reject the Contractor's
application or issue a Certification of Extension of
time within six (6) weeks from the receipt of
sufficient particulars.
CLAUSE 23.5
In assessing the extension of time, may take into
account the following
CLAUSE 23.5
(a)
CLAUSE 23.5
(b)
The Architect shall not fix a
Completion Date earlier than the
Completion stated in the appendix
Relevant Events which in the
Architect's opinion will have an effect
on Contractor's to an extension of
time

CLAUSE 23.6 CLAUSE 23.7
The Contractor shall prevent or reduce delay in
the progress of Works, and satisfy Architect's
requirements to prevent or reduce delay or further
delay in the completion of Works.
The Architect shall notify every Nominated Sub-
Contractor when fixing a later completion date

CONCLUSION
NIL because there are only internal works left and
the flood doesn’t goes into the internal work
PROJECT A WITH INTERNAL
WORKS LEFT
PROJECT B WITH
EARTHWORKS, MAIN DRAIN
AND ROADWORKS
Can be claimed because the flood does affect the
project works currently

b) In the PAM Form of Contract 2006 (With Quantities), advise the Employer the procedures involved in the
issuance of the Certificate of Practical Completion, assuming even if there are minor outstanding and
defective works.
Certificate of
Practical
Completion
Contractor is no longer be
charged with liquidated
damages
IS ISSUED
Employer takes
over
responsibility
HANDS OVER
RESPONSIBLITY
THEN…
THE START OF THE
PERIOD OF:
I.) Final measurement
for the final account
(6months)
II.) First moiety of
retention fund is
released to contractor.
III.) Start of Defect
Liability period

defective works.
When is Certificate of Practical Completion is issued ?
 Where architect considers the works are
complete, sufficient for the client to take
possession and use the building.
 Defects and minor works has still
needed to be executed by Contractor
and a notice has been given to the
Architect with reasonable time
specified.
CLAUSE 15.1(a)

defective works.
PAM CONTRACT 2006 (WITH QUANTITIES) The issuance of the Certificate of Practical Completion
Practical
Completion
Clause15.1
Clause15.1(b)
Clause15.1 (a)
Works are practically
completed when: Clause15.2
When the whole of the
works are practically
completed, Contractor
shall forthwith give
written notice that effect
to Architects within 14
days
In architect’s opinion, employer can have full use of the works for their intended purpose, not withstanding that there may be works and
defects or minor nature still to be executed and the contractor has given to the Architect a written undertaking to make good and to
complete such works and defects with a reasonable time specified by architect; and
Others requirements expressly stated in Contract Documents as a pre-
requisite for the issuance of certificate of practical completion have been
complied with.
YES

defective works.
PAM CONTRACT 2006 (WITH QUANTITIES) The issuance of the Certificate of Practical Completion
Clause15.2
Clause15.2(b)
Clause15.2 (a)
If the Architect is of the
opinion that the
Clause15.2(b)(i)
The date of receipt of the
Contractor’s written
undertaking to make
good and to complete
works and defects of a
minor nature; where
there are such works or
defects; or
Works are not practically completed under clause 15.1, the Architect shall
give written notice to the Contractor with copy extended to the
Nominated Sub-Contractor stating the reasons for his opinion; or
Works are practically completed under clause
15.1, the Architect shall issue the Certificated of
Practical Completion. The date of Practical
Completion shall be:
Clause15.2(b)(ii)
The date of receipt of the
Contractor’s written notice, where
there are no works and defects of
a minor nature.

defective works.
PAM CONTRACT 2006 (WITH QUANTITIES) Contractor’s failure to comply with undertaking
Clause 15.3
Clause15.3 (a)
The contractor shall comply with his
undertaking to finish up the defects of
minor nature under clause 15.1a within
the time specified. If it is not being
done, the Employer may without
prejudice to any other rights and
remedies which he posses under the
Contract.
Clause15.3 (b)
Clause15.3 (c)
Grant the Contractor additional ex-gratia time to be
specified by the Architect to enable the Contractor to
comply with his said undertaking
Employ and pay the other person to execute
any work which may be necessary to give effect
to the Contractor’s said undertaking. All cost
incurred including any loss/expense shall be
set-off by the Employer under Clause 30.4, or
Accept to leave all or any such works and
defects of a minor nature in the Works subject
to an appropriate set-off under Clause 30.4

THE END

Presentation 7-pp-final

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