Time Related Professional Practice

Azizan Supardi, 2017 ….. page 1
UNIVERSITI TEKNOLOGI MARA QSM 609
‘Azizan Bin Supardi
Lecturer
Dip. QS (ITM), Adv. Dip. QS (ITM)
MSc. Const. Contract Mgt. (UTM)
Centre of Studies for Quantity Surveying
Faculty of Architecture, Planning & Surveying
Universiti Teknologi MARA (UiTM)
40450 Shah Alam, Selangor Darul Ehsan, Malaysia
Tel: (+603) 5544 4347
Fax: (+603) 5544 4353
Mobile: (+6017) 254 4558
Email: aziza012@salam.uitm.edu.my

1 Introduction
2 Time: Site Possession
3 Time: Practical Completion
4 Time: Sectional Completion & Partial Occupation
5 Time: Defects
6 Time: Extension of Time
7 Time: Non-Completion
8 Financial Remedies for Breach of Contract: Damages
9 Determination of Contract: By Employer
10 Determination of Contract: By Contractor
11 Insurances
12 Bonds and Guarantees
13 Approval and Certificates
14 Revision
WEEK DESCRIPTION

1. Lim C.F., (2004). The Malaysian PWD standard form of construction contact. Malaysia:
Sweet & Maxwell..
2. Sundra Rajoo, (1999). The Malaysian standard form of building contract (The PAM 1998
Form). Kuala Lumpur: Malayan Law Journal Sdn. Bhd..
3. Abdullah, Nor Ainah (2001). Pengenalan kepada kontrak binaan. UiTM Shaha Alam :
UPENA..
4. Agreement and Conditions of Building Contract (1998). Pertubuhan Akitek Malaysia: Kuala
Lumpur..
5. Chappel, D., (2002). Paris’s standard form of building contract. London: Blackwell Science..
6. Fellows, R.F., (1998). JCT standard forms of building contract – 1998 edition. London:
MacMillan..
7. Harbans Singh, K.S. (2002). Engineering and construction contracts management – law and
principles. Kuala Lumpur: Malayan Law Journal..
8. Hughes, W & Murdoch, J., (2000). Construction contracts: law and management. London:
Spons Press..

PWD203A(rev.1/2010)
THE SITE ‘means the land and other places on, above, under, in or
through which the Works are to be executed and any other lands or
places provided or approved by Government for working space or
any other purposes.....’(Clause 1.1(m))
‘The Contractor shall be deemed to have inspected and examined the
Site and its surroundings and to have satisfied himself before
submitting his tender as to the following:.....’(Clause 11.1)
a) The nature of the ground
b) The form and nature of the Site
c) The extent and nature of the works
d) The means of communication with the access to the site
e) The accommodation he may require
f) All necessary information as to risk, etc.

PWD203A(rev.1/2010)
‘Any information or document forwarded by the Government to the
Contractor shall not relieve the Contractor of his obligation under the
provision of this Clause.’(Clause 11.2)
‘Unless the Contract Document shall otherwise provide, possession of
the Site ....., shall be given on or before the “Date for Possession”
stated in the Letter of Acceptance .....’(Clause 38.2)

PWD203A(rev.1/2010)
‘..... possession of the site as complete as may be reasonably possible
but not so as to constitute a tenancy .....’(Clause 38.2)
‘..... the possession of Site may be given in section or in parts and any
other restrictions upon possession of Site shall be stated in the
Appendix to these conditions or in the Contract Documents.’ (Clause
38.3)
‘..... any delay in giving possession of the Site ..... or ..... any section
..... the S.O. may issue instructions in regard to the revision of the
“Date for Possession” and the “Date for Completion” shall be
appropriately revised ....., the Contractor shall not be entitled to claim
for any loss or damage ..... nor ..... to terminate this Contract ......’
(Clause 38.4)

PWD203A(rev.1/2010)
‘..... possession of the whole Site is delayed beyond ninety (90) days
..... the S.O. shall give written notice to the contractor of the causes of
such delay. ..... the contractor may, inform the S.O. in writing of its
decision within 14 days of receipt of the said notice either to:
(a) agree to proceed with the works ..... not be entitled to claim for
loss or damage .....
(b) terminate this Contract, ..... without prejudice to any other
rights or remedies ..... ’(Clause 38.5)

PWD203A(rev.1/2010)
‘..... possession of any section ..... is delayed beyond 90 days ..... then the
S.O. shall give written notice to the contractor of the causes of such
delay. ....., the Contractor may inform the S.O. ..... within fourteen (14)
days of receipt of the said notice of its decision either to:
(a) agree to proceed with the works ..... not be entitled to claim for
loss or damage .....
(b) request for S.O.’s instruction to omit the relevant section ..... if the
S.O. agrees ..... part of the works shall be duly omitted and
deemed to be a variation to the contract ..... If the S.O. does not
agree ..... Then the contractor shall be entitled to claim for any
loss and/or expenses ..... ’(Clause 38.6)
‘..... the Contractor shall thereupon and forthwith commence the Works
..... and regularly and diligently proceed with and complete the Works on
or before the Date for Completion .....’(Clause 38.2)

PWD203A(rev.1/2010)
(a) Events of Default
(i) Fails to commence works at the Site within two (2) weeks after the Date of
Possession .....
Then the Officer named in the Appendix shall give written notice to the
Contractor specifying such default, and requiring the Contractor to
remedy such default within fourteen (14) days of the receipt of the default
notice or any period determined by the officer named in Appendix.
(b) Termination
If the Contractor fails to remedy the breach within such period, the Officer
shall have the right to forthwith terminate this Contract by giving a
written notice to that effect. ’(Clause 51.1)

• On the Date of Commencement, possession of the
Site shall be given to the Contractor who shall
commence the execution of the Works .....
• ….. In the event there is a delay by the Employer in
giving possession of the Site to the Contractor, the
Architect shall grant an extension of time …..
• ….. delay in giving possession of the Site does not
exceed the Period of Delay stated in the Appendix,
the Contractor shall not be entitled to determine his
own employment under the Contract.
Clause 21.1
PAM2006

• In the Letter of Acceptance to the Contractor, the
Employer undertook to give possession of the
site to the Contractor on 1st March 2009. The
Contractor was not given site possession on that
date as certain squatters had yet to be cleared.
• What are the right and liabilities of the
Employer and Contractor under PAM Contract
2006 and PWD 203A Standard Form of
Contract?
Question One
COURSEWORK

PWD203A(rev.1/2010)
‘Subject to clauses 38.3 and 41, the Contractor shall complete the whole
of the Works on or before the “Date of Completion” as stated in the
Appendix .....’(Clause 39(1))
‘’The works shall not be regarded as practically complete unless it has
fulfilled the following: .....’(Clause 39.5)
a) The Works have been completed in accordance with the terms and
conditions of this Contract;
b) The Government can have full, proper and beneficial use of the
Works .....
c) The Works have passed any commissioning tests .....
d) The Works shall be made available to the Government in a
condition fit for occupation; and
e) All essential services, including access roads, landscape, car
parks, .....’

PWD203A(rev.1/2010)
‘If the Contractor considers that the works have achieved practical
completion, the Contractor shall notify the S.O. in writing to that effect.’
(Clause 39.2)
(a) Issue the Certificate of Practical Completion ..... if in his opinion
the whole Works have reached Practical Completion and have
satisfactorily passed any inspection/test carried out by the S.O. .....
such date shall be the date of commencement of the Defects
Liability Period ..... or’
(b) give instruction to the Contractor specifying all defective works
which are required to be completed by the Contractor before the
issuance of the Certificate of Practical Completion’(Clause 39(3))
‘Within 14 days of receipt of such notice, the S.O. shall carry out
testing/inspection of the Works ..... The S.O. shall –

PWD203A(rev.1/2010)
‘..... no CPC shall be issued to the Contractor until the Contractor has
effectively carried out the remedial work within reasonable period
.....’(Clause 39(4))
‘When the whole of the works have reached practical completion to
the satisfaction of the S.O. ..... such date shall be the date of the
commencement of the Defects Liability Period .....’(Clause 39.6)

• In the opinion of the Architect, the Employer can have
full use of the Works for their intended purposes,
notwithstanding that there may be works and defects of
a 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 within a reasonable time specified by the
Architect; or
Clause 15.1(a)
• Other requirements expressly stated in the contract
document ….. have been complied with.
Clause 15.1(b)
PAM2006
Theworksarepracticallycompletedwhen:

• The date of receipt of the contractor’s written
undertaking to make good and to complete the
works and defects of a minor nature, where there
are such works and defects; or
Clause 15.2(b)(i)
• The date of receipt of the contractor’s written
notice, where there are no works or defects of a
minor nature.
Clause 15.2(b)(ii)
PAM2006
…..ThedateofPracticalcompletionshallbe:

• Grant the contractor additional ex-gratia time
to be specified by the Architect …..;
Clause 15.3(a)
• Employ and pay other person to execute any
work ….. All costs incurred ….. shall be set
off by the employer …..;
Clause 15.3(b)
• Accept to leave all or any such works …..
subject to an appropriate set-off …..
Clause 15.3(c)
PAM2006
…..thecontractorshallcomplywithhis
undertaking…..withinthespecifiedtime.In
theeventthecontractorfailstocomplywith
hisundertaking,theEmployermay…..doany
oneofthefollowing:

• The term ‘completion’ is sometime a subject of dispute. This
matter is always taken as very subjective and often left to the
contract administrator to decide professionally.
• (a) Explain the provision provided in the contract concerning
practical completion.
• (b) Not withstanding the fact that the clauses in the contract
provided a definition to practical completion, it is still
disputable. Thus, some form of ‘test’ or criteria may be used to
determine practical completion. Discuss.
• (c) Why practical completion is important to the contractor?
Question Two
COURSEWORK

PWD203A(rev.1/2010)
‘Subject to clauses 38.3 and 41, the Contractor
shall complete the whole of the Works on or before
the “Date of Completion” as stated in the Appendix
or such extended time .....’(Clause 39(1))
‘Where different completion dates for different
sections ..... Are stated and identified in the
Appendix ..... And different and separate Liquidated
and Ascertained Damages are provided for such
section .....’(Clause 41.1)

PWD203A(rev.1/2010)
‘..... The Performance Bond or Performance Guarantee Sum shall be
released or be refunded only upon the issue of Certificate of Making
Good Defects of the whole of the Works .....’(Clause 41.2)
‘..... the provisions of this contract in regard to:
a)Certificate of Practical Completion;
b)Delay and Extension of Time;
c)Liquidated and Ascertained Damages; and
d)Defects Liability Period,
but not insurance of the Works ....., Performance Bond ..... And Final
Certificate ..... shall ..... Apply as if each such section or part was the
subject of a separate and distinct contract between the Government and
the Contrcator.’ (Clause 41.1)

PWD203A(rev.1/2010)
‘..... any time before the whole of the works have reached practical
completion, the Government with the consent of the contractor (which
consent shall not be unreasonably withheld) shall take possession of
and occupy any part ......’(Clause 41.1)
‘..... within seven (7) days from the date ..... taken possession of the
relevant part, the S.O. shall issue a Certificate of Partial Occupation
..... stating the estimated value of the said relevant part, .....’ (Clause
42.1(a))
‘..... the relevant parts shall be deemed to have reached practical
completion and the Defects Liability Period ..... to have commenced
on the date on which the Government shall have taken possession .....’
(Clause 42.1(b))

PWD203A(rev.1/2010)
‘at the end of the Defects Liability Period of the relevant part and if in the
opinion of the S.O. any defect ..... have been made good by the contractor, the
S.O. shall issue a certificate to that effect;.’(Clause 42.1(c))
‘if, ..... a Certificate of Practical Completion has been issued for any part of
the Works ..... the rate of the liquidated and ascertained damages ..... shall be
reduced in the proportion which the total value of the relevant part ..... to the
value of the whole of Works .....’(Clause 42.1(d))
‘..... the Contractor shall insure and keep insured the Works ..... and the
Contractor shall give notice to the insurer of such partial occupation .....’
(Clause 42.1(e))
‘..... Performance Bond ..... released or refunded ..... upon the giving of the
Certificate of Completion of Making Good Defects for the whole of the
Works.....’(Clause 42.1(e))

• upon the issuance of the Certificate of Partial Completion,
the Architect shall within fourteen (14) Days issue a
certificate to release half the amount of the Retention
Fund in the ratio of the estimated value of the Occupied
Part ….. The amount of the Limit of Retention Fund shall
then be reduced by the same amount;
Clause 16.1(d)
• upon the issuance of the Certificate of Making Good
Defects of the Occupied Part, the Architect shall within
fourteen (14) Days issue a certificate for the release of the
remaining amount of the Retention Fund …..
Clause 16.1(f)
PAM2006:

• The employer may ….. enter and occupy such part of the Works
prior to the completion of the whole without the consent of the
Contractor ….. provided always that:
• (a) The completion of the works has been delayed and a
Certificate of Non-Completion has been issued by the Architect
….. and
• (b) Such entry and occupation ….. without any unreasonable
disturbance to the progress of the Contractor’s remaining works
…..
Clause 16.2
• ….. The Contractor shall upon the written instruction of the
Architect remove his site facilities, construction plant or
equipment, materials and goods from the Occupied Part.
Clause 16.3
PAM2006:

• Define sectional completion and partial occupation and
state their differences.
• Explain with illustrations/calculations how partial
occupation would affect the following contract thereon:
• Contract value: RM8,500,000.00
• Date of possession of site: 1.3.2007
• Date of completion: 30.6.2008
• Liquidated and Ascertained Damages: RM2,500.00 per day
• Defects Liability Period: 16 months
• Approximate value of relevant parts: RM3,500,000.00
• Date of Certificate of Partial Occupation: 31st January 2008
Question Three
COURSEWORK

PWD203A(rev.1/2010)
‘At any time during the Defects Liability Period as stated in the
Appendix (or if none stated the period is twelve (12) months from
the date of practical completion of the works .....’(Clause 48.1(a))
Defects mean ‘..... any defect, imperfection, shrinkage, or any
other fault whatsoever which may appear and which are due to
materials or goods or workmanship not in accordance with this
contract .....’(Clause 48.1(a))
‘At any time during the Defects Liability Period ..... Any defect .....
The S.O. shall issue written instruction to the Contractor to make
good such defects ..... At the Contractor’s own cost .....’ (Clause
48.1(a))

PWD203A(rev.1/2010)
‘..... any defect ..... which may appear during the Defects Liability
Period ..... shall be specified by the S.O. in the Schedule of defects
which he shall deliver to the Contractor not later than 14 days after
the expiration of the Defects Liability Period ......’(Clause 48.1(b))
‘..... the S.O. shall not be allowed to issue any further instruction .....
after the issuance of the said Schedule of Defects or after 14 days from
the expiration of the said Defects Liability Period, whichever is the
later’(Clause 48.1(b))

PWD203A(rev.1/2010)
‘..... The defects, ..... shall be made good by the Contractor .....
and to be completed within a reasonable time but in any case
not later than 3 months after the receipt of the said Schedule
.....’(Clause 48.1(b))
‘..... any defect ..... which may appear during the Defects
Liability Period ..... shall be made good at his own costs .....’
(Clause 45(b))

PWD203A(rev.1/2010)
‘If the Contractor shall fail to comply ..... within the time so specified,
..... be made good in such manner as the S.O. may think fit, ..... the
costs thereby incurred including On-Cost Charges ..... shall be
deducted from any money due ..... and ..... recovered from the
Performance bond or as a debt .......’(Clause 48.2)
‘..... any defect, imperfection, shrinkage, or any other fault whatsoever
which may appear and which are due to materials or goods or
workmanship not in accordance with this contract .....’(Clause 48.1(a))
‘The Government hereby covenants to pay the Contractor in consideration
of the construction and completion of the works and making good of any
defects whatsoever to the Works .....’(Clause 7.0)
Thus, the contractor is only responsible for defects arising due to his
faults .....

PWD203A(rev.1/2010)
‘..... in the opinion of the S.O., ..... impracticable or
inconvenient to ..... remedy the same, the S.O. shall
ascertain the diminution in the value of the Works ..... The
amount of such diminution shall be recoverable ..... as a debt
under the Contract or ..... from the Performance Bond.’
(Clause 48.3)
‘When in the opinion of the S.O. the Contractor has made
good defects, ..... the S.O. shall issue a certificate ..... the
date on which the contractor has completed making good
such defects, ..... The said certificate ..... the “Certificate of
Completion of Making Good Defects”.’(Clause 48.4)

• Any Defects ….. specified by the Architect in a schedule of
defects ….. not later than fourteen (14) Days after the
expiration of the Defects Liability Period. The Contractor
shall make good the Defects specified within twenty eight
(28) Days after receipt of the schedule of defects (or within
such longer period as may be agreed in writing by the
Architect) at the Contractor's cost. …..
Clause 15.4
• ….. the Architect may at any time during the Defects Liability
Period issue an AI requiring any critical Defects which need
urgent rectification to be made good within a reasonable time
specified by the Architect at the Contractor’s cost …..
Clause 15.5
PAM2006

• a) Explain the procedure in the PWD 203A and PAM Contract
2006 Standard Form of Contracts regarding the issuance of
instructions and Schedule of defects during and after the Defects
liability period.
• b) During the second month of twelve months Defects liability
period, a bad leak was discovered in the flat roof. The Architect
issued an instruction and the Contractor remedied the leak.
Further leak appeared in seventh month, which the Architect
issued similar instruction to the Contractor. The Contractor
replied that he planned to repair it at the end of the Defects
liability period. In the tenth month the leak became worst, but on
notification the Contractor gave the same reply.
• The Architect has written to your office for your advice.
Question Four
COURSEWORK

• After a joint inspection carried out, the Architect noted down the following
outstanding works to be completed by the Contractor:
• a) Drain cover to the perimeter drain is about 75% completed.
• b) Some of the palm trees has yet to be planted whilst the Contractor has
manage to complete other trees planting as well as turfing work.
• c) Toilet mirrors are about 50% installed. Due to inability of supply, it will only
be installed in two weeks time.
• The following defects have been noticed for the Contractor to remedy:
• a) Traces of leakage from the soil pipe in one of the toilet.
• b) Hairline crack at rear elevation of the plastered wall.
• c) The bollard light in the garden area is not functioning.
• The Contractor has written to the Architect for the Certificate of Practical
Completion to be issued as outstanding and defect works are minor. Discuss:
• i) Whether the Certificate of Practical Completion can be issued, and
• ii) Why the certificate is important to the contractor.
Question Five
COURSEWORK

PWD203A(rev.1/2010)
‘..... the contractor ..... complete the Works on or before the
“Date for Completion” as stated in the Appendix or such
extended time as may be allowed under clause 43 .....’ (Clause
39.1)
‘..... the officer named in Appendix ..... estimate the length of
the delay beyond the date of time aforesaid ..... giving a fair
reasonable extension of time for completion of the Works .....’
(Clause 43)

PWD203A(rev.1/2010)

PWD203A(rev.1/2010)
..... If in the opinion of the said Officer ..... the completion of the Works is likely to be
delayed or has been delayed beyond the Date for Completion ..... due to any or more of
the following events: .....’ (Clause 43.1)
(a)force majeure .....
(b)exceptionally inclement weather
(b)suspension of Works .....
(c)directions given by the S.O., consequential upon disputes with neighbouring owners
.....
(d)S.O.’s instructions .....
(e)the Contractor not having received in due time instructions in regard to the
nomination of sub-contractors ....., necessary instruction .....
(f)delay in giving possession of the Site .....
(g)delay on the part of artists, ..... execution work not forming part of this Contract’.
(h)the Contractor’s inability for reasons beyond his control ..... to secure such goods,
materials .....
(i)Delay on the part of the Nominated Sub-Contractors ..... due to reasons as stated
above in sub-clauses (a) to (i),’

PWD203A(rev.1/2010)
‘..... such delays are not due to any act, ..... by the
Nominated Sub-Contractor, ..... (nor) the Contractor .....’
(Clause 43.1)
‘..... the Contractor shall not be entitled to any extension
of time where the instructions or acts of the S.O. ..... to
remedy any default of ..... the Contractor.’(Clause 43.1)
‘..... the contractor has taken all reasonable steps to avoid
or reduce such delay and shall do all that may be required
to the satisfaction of the S.O. to proceed with the Works’
(Clause 43.1)

PWD203A(rev.1/2010)
‘Upon it becoming reasonably apparent that the progress of the
works is delayed, the Contractor shall forthwith give written
notice to the officer named in Appendix as to the causes of
delay ..... due to any or more of the following events: ..... the
officer named in Appendix ..... giving a fair reasonable
extension of time for the completion of the Works .....’ (Clause
43.1)
‘..... the Contractor shall forthwith give written notice to the
officer named in Appendix as to the causes of delay and
relevant information with the supporting documents enabling
the said officer to form an option as to the cause and
calculation of the length of delay.’(Clause 43.1)

PWD203A(rev.1/2010)
‘Upon it becoming reasonably apparent that the progress
of the works is delayed .....’(Clause 43.1)
‘..... the officer named in Appendix may ..... issue a
Certificate of Delay and Extension of Time giving a fair
reasonable extension of time for completion of the Works.’
(Clause 43.1)
‘..... the officer named in Appendix may if he is of the
opinion that the extension of time should be granted, .....
estimate the length of the delay beyond the date or time
aforesaid .....’(Clause 43.1)

• Additional provisions:
• (i) – re-nomination of NSC.
• (k) – delay or failure in the supply of materials and goods which
the employer had agreed to supply.
• (m) – Any act of prevention or breach of contract by the
employer.
• (n) – war damage.
• 9q) – delay caused by any appropriate authority etc.
• (t) – delay as a result of execution of work for which a
Provisional Quantity is included in the BQ etc.
• (u) – failure of the employer to give in due time entry to or exit
from site etc.
• (x) – Any other ground for extension of time expressly stated in
the contract.
Clause 23.8
PAM2006

• the Contractor shall give written notice to the Architect his intention to
claim for such extension of time together with an initial estimate of the
extension of time he may require supported with all particulars of the
cause of delay …..
• ….. Such notice must be given within twenty eight (28) Days from the
date of the AI, CAI or the commencement of the Relevant Event,
whichever is earlier. ….. a condition precedent to an entitlement of
extension of time …..
Clause 23.1(a)
• within twenty eight (28) Days of the end of the cause of delay, the
Contractor shall send to the Architect his final claim for extension of time
duly supported with all particulars …..
• ….. If the Contractor fails to submit such particulars within the stated
time (or within such longer period as may be agreed in writing by the
Architect), it shall be deemed ….. such Relevant Event will not delay
the completion of the Works …..
Clause 23.1(b)
PAM2006

• ….. particulars submitted by Contractor are insufficient
….. the Architect shall within twenty-eight (28) Days …..
inform him of any deficiency in his submission and …..
the Contractor to provide such further particulars within a
further twenty eight (28) Days or within such period of
time …..
Clause 23.3
• ….. either reject the Contractor’s application or issue a
Certificate Extension of Time within six (6) Weeks from
the receipt of the sufficient particulars. The Architect may
issue the written notice of rejection or the Certificate of
Extension of Time before or after the completion date.
Clause 23.4
PAM2006

• Where the relevant event occurs after the issuance of
the Certificate of Non-Completion, the Architect
shall grant an extension of time …..
Clause 23.9
• ….. Certificate of Extension of Time ….. fixing a
Completion Date which is later than the date stated
in a Certificate of Non-Completion previously
issued, such certificate ….. revoking the Certificate
of Non-Completion ….. the Architect shall issue a
further Certificate of Non-Completion.
Clause 22.3
PAM2006

• a) A Contractor is currently undertaking works on two construction projects adjoining
to each other but under two separate contracts. Project ‘A’ commenced one 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 roadwork. The progress is
about 30%. After heavy rains of five hours, both sides were flooded for three days.
• 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.
• b) A contract for the construction and completion of an office block let under PAM
Contract 2006 Form of Contract had a completion period of 80 weeks. As required the
contractor submitted his work programme showing a completion period of 75 weeks.
With a covering letter stating that he requires further details/drawings were as shown
in the programme. The programme was discussed and agreed in the site meeting.
• According to the programme, he requires detail of the aluminium ceiling at week 50
but receives it from the Architect at week 55. The contractor immediately applied for
extension of time. Discuss.
Question Six
COURSEWORK

• The contract period for the construction and completion of an 8-storey office
building based on PAM Standard Conditions of Contract is from 2nd February 2007
to 30th November 2008. Delay occurs and the Contractor is claiming for extension of
time due to the following causes:
• a. Delay in nomination process – 19 days
• b. Changes to the piling design to suite soil conditions – 27 days
• c. Exceptionally inclement weather – 12 days
• d. Additional work at level 4 to accommodate new Executive Director’s room – 20
days
• e. Changes to windows at front elevation from bronze anodised to powder coated –
10 days
• f. Re-execution of completed works – 30 days
• g. Postponement of work to enable design review – 14 days
• Total – 132 days
• State:
• i. The procedure the Contractor must follow in applying this claim, and
• ii. For each case, the clause(s) in the contract which allow such addition.
Question Seven
COURSEWORK

PWD203A(rev.1/2010)
‘..... the contractor shall complete the whole of the Works on or before
the “Date for Competion” as stated in the Appendix or such extended
time .....’(Clause 39.1)
‘If the contractor fails to complete the Works by the Date for
Completion or within any extended time granted ......’(Clause 40.0)

PWD203A(rev.1/2010)
‘..... the S.O. shall issue a Certificate of Non-Completion to the
Contractor. Prior to the issuance ..... the S.O. shall issue a notice to
the Contractor informing ..... the intention ..... to impose Liquidated
and Ascertained Damages ..... if the Contractor fails to complete the
Works by the Date for Completion .....’(Clause 40.1)
‘..... Upon the issuance of the Certificate of Non-Completion, the
Government shall be entitled to recover ..... Liquidated and
Ascertained Damages ..... from the period of the issuance of the
Certificate of Non-Completion to the date of issuance of Certificate of
Practical Completion ......’(Clause 40.2)
‘..... Liquidated and Ascertained Damages calculated at the rate
stated in the Appendix .....’(Clause 40.2)

• When a contract has been broken, if a sum is
named in the contract as the amount to be paid
in case of such breach, or if the contract contains
any other stipulation by way of penalty, the party
complaining of the breach is entitled, whether or
not actual damage or loss is proved to have been
caused thereby, to receive from the party who
has broken the contract reasonable
compensation not exceeding the amount so
named or, as the case may be, the penalty
stipulated for.
Section 75
ContractAct1950

PWD203A(rev.1/2010)
‘Where different completion dates for different sections ..... are stated
and identified in the Appendix or elsewhere in the Contract
Documents and different and separate L.A.D. are provided for each
section or part of the works .....’(Clause 41.1)
‘..... the rate of the Liquidated and Ascertained Damages ..... be
reduced in the proportion which the value of the part so certified
bears to the value of the whole of the Works or section .......’ (Clause
42.1(d))
‘..... The S.O. may deduct such damages from any money due or to
become due to the Contractor failing which ..... recovered from the
Performance Bond or as a debt due from the Contractor. The S.O.
shall inform the Contractor in writing of such deduction.’ (Clause
40.2)

• The Liquidated Damages ….. is a genuine pre-estimate
of the loss and/or damage which the Employer will
suffer in the event that the Contractor is in breach …..
without the need for the Employer to prove his loss and/or
damage unless the contrary is proven by the Contractor.
Clause 22.2
• In the event the Architect issues a Certificate of
Extension of Time ….. fixing a Completion Date which is
later than the date stated in a Certificate of Non-
Completion ….. revoking the Certificate of Non-
Completion earlier issued ….. If the Works is not
completed ….. the Architect shall issue a further
Certificate of Non-Completion.
Clause 22.3
PAM2006

• The Architect via letter dated 3rd April 2009, notified the Contractor that the completion date
cannot be extended and Liquidated and Ascertained Damages (LAD) would be imposed
immediately. Particulars of the contract before and after the issuance of Certificate of Non-
completion are as follows:
• i) Project Title: The Construction and Completion of 50 Units of Double Storey Detached houses
• ii) Contract Sum: RM40,000,000.00
• iii) Original Completion date: 20th February 2009
• iv) 1st Extension of Time: 20th March 2009
• v) 2nd Extension of Time: 5th April 2009
• vi) Period of Non-completion: 60 days
• vii) LAD: to be calculated
• (a) Describe with examples the method/s of calculating LAD. Make all necessary assumptions
where appropriate.
• (b) Explain the procedure to be followed before LAD can be imposed.
• (c) How LAD is collected from defaulting contractor.
• (d) How much is the LAD for the above project.
Question Eight

PWD203A(rev.1/2010)
‘In the event the Contractor .....
i. fails to commence works at the Site within two (2) weeks ......
ii.suspends or abandons the carrying out the Works .....
iii.fails to proceed regularly and diligently with the performance of his
obligations .....
iv.fails to execute the works in accordance with the Contract
v.persistently neglects to carry out his obligations under the Contract
vi.refuses or persistently neglects to comply with the written notice from the
S.O. in relation to any defective work .....
vii.fails to comply with the provisions of clause 47 ..... (sub-contracting)
viii.fails to comply with any terms and conditions in the contract,
then the office ..... give written notice to the Contractor specifying the default
.....’(Clauae 51.1(a))

PWD203A(rev.1/2010)
‘If at any time during the contract period -
i. the Contractor becomes bankrupt
ii.the Contractor becomes insolvent .....
iii.an order is made ..... for the winding-up order of the Contractor
iv.a provisional liquidater, receiver ..... duly appointed .....
v.execution is levied against a substantial portion of the Contractor’s assets
then the Government shall have the rights to terminate this Contract .....’
(Clauae 51.2(a))
‘..... the Government may terminate this Contract ..... such termination is
necessary for national interest, national policy or national security.’ (Clause
52.1(a))

PWD203A(rev.1/2010)
‘..... what constitues ‘national interest’, ‘national policy’ and ‘national
security’, shall be solely made ..... by the Government ..... final and conclusive
.....’(Clause 52.1(b))
‘The officer named in Appendix may at any time instruct the Contractor to
suspend part or all of the Works.’(Clause 50.1(a)) (mutual)
‘If the Contractor, its personnel ..... gives or offers to give to any person any
bribe, gift, gratuity or commission as an inducement or reward.’ (Clause
53.1(a)) (corruption)

PWD203A(rev.1/2010)
‘..... the officer named in Appendix shall give written notice .....
specifying the defaults, and requiring the Contractor to remedy such
default within 14 days of the receipt of the default notice or any period
determined by the officer .....’(Clause 51.1(a))
‘If the Contractor fails to remedy the breach within such period, the
Officer shall have the right to forthwith terminate this Contract by
giving a written notice ..... (Clause 51.1(b))

PWD203A(rev.1/2010)
‘If at any time during the Contract Period ..... the Government shall have the right to
terminate this Contract forthwith by giving notice to that effect.’ (Clause 51(2))

PWD203A(rev.1/2010)
‘..... The Government may terminate this Contract by giving not
less than 30 days written notice to that effect to the Contractor
.....’(Clause 52.1(a)) (national interest)
‘If the Contractor ..... give to any person any bribe, gift .....
Then the officer named in the Appendix shall be entitled to
forthwith terminate this Contract at any time by giving written
notice .....’(Clause 53.1) (corruption)
‘In the event such suspension shall continue for a period
exceeding 12 months, the Parties shall then discuss whether to
mutually terminate the Contract .....’(Clause 50.2)

PWD203A(rev.1/2010)
‘The contractor shall .....’(Clause 51.1(c)(i)
A. forthwith cease all operations of the Works
B.carry out any protection works so as to secure the Site, ..... against any
deterioration .....
C.Remove its personnel and workmen from the Site
D.Vacate the Site ..... remove all temporary buildings, plant ..... materials as
specified by the S.O. .....
E.either:- (i) terminate all third party contracts ..... (ii) assign to the Government
..... the benefit of any agreement for the supply of materials ..... (iii) allow such
third party to enter into a contract with the Government .....
F.at no cost to the Government, hand over ..... All plans, designs, specification
G.pay to the Government for any losses and damages as a result of termination .....
H.not be released from any of its obligations under the Contract,

PWD203A(rev.1/2010)
‘..... the Government shall not obliged to pay any third party for
any materials and goods ..... which has paid but the Contractor
has failed to make payment to the third party’(Clause 51.1(c))
‘The Government shall ......’(Clause 51.1(c)(ii))
A.call upon the Performance Bond .....
B.enter and repossess the Site;.
C.be entitled to carry out and complete the Works on its own .....
D.be entitled to claim against the Contractor for any losses, costs,
expenses and damages .....
‘Nothing in clause 51.1 ..... Shall render the Government in any
way liable for payments upon termination.’(Clause 51.1(c)(iii))

PWD203A(rev.1/2010)
‘If this Contract is terminated under clause 50 (mutual termination
due to suspension of work) or clause 52 (termination on national
interest), the amount to be paid .....’(Clause 54.1)
a) Value of work completed up to the date of termination.
b) Value of preliminary items that have been carried out.
c) Costs of materials that have been delivered to site or which
have been ordered by the contractor.
d) Contractor’s expenditures upon completing the works, where
no payment has been made to him.
e) Reasonable costs of any protection works and removal of
equipment and site facilities after termination.
‘Upon termination ..... a final account of this Contract shall be
prepared and issued by the S.O.’(Clause 54.2)

PWD203A(rev.1/2010)
‘As soon as the arrangements for the completion of the works made by
the Government ..... following the termination of the Contractor’s
employment and the engagement of other contractors or persons ......’
(Clause 55.1)
‘..... If the Final Contract Sum is less than the Completion Cost, the
difference shall be debt payable by the Contractor to the Government and
if greater ..... shall be debt payable by the Government to the Contractor.’
(Clause 55.4)
‘..... the S.O. to make a reasonable accurate assessment of the ultimate
cost to the Government of completing the Works ..... the S.O. may issue a
certificate (hereinafter referred to as the “Certificate of Termination
Costs”) stating the Completion Cost ..... and the Final Contract Sum .....’
(Clause 55.1)

• Upon the occurrence of any default ….. the
Employer ….. shall give to the Contractor a written
notice ….. specifying the default. If the Contractor
shall continue with such default for fourteen (14)
Days ….. then the Employer may within ten (10)
Days from the expiry of the said fourteen (14)
Days, by a further written notice ….. Forthwith
determine the employment of the Contractor
under the Contract …..
•….. such notice shall not be given unreasonably
and vexatiously …..
Clause 25.2
PAM2006

• The Architect or Quantity Surveyor shall within 28 Days
of the determination ….. written notice to the Contractor
of the date of inspection on Site to jointly record the
extent of the Works ….. The Contractor shall provide all
necessary assistance ….. Upon completion of the record
….. form the basis for the evaluation of the value of the
Works executed …..
Clause 25.5
• The Architect ….. within six (6) Months on completion of
the Works, submit to the Employer and Contractor for
their agreement, a final account for all cost incurred …..
Clause 25.6
PAM2006

• If nothing in the said Final Account is disputed ….. within three
(3) Months from the date of receipt of the Final Account …..
conclusive and agreed by the parties …..
Clause 25.6 (a)
• ….. The party disputing the Final Account ….. written notice to
the other party ….. within three (3) Months of the date of receipt
of the Final Account ….. The Architect or Quantity Surveyor
within three (3) Months from the date of receipt of the grounds of
dispute shall either amend or not amend the Final Account. Any
party disagreeing ….. shall refer the dispute to arbitration …..
within three (3) Months from the date of receipt of the amended
Final Account ….. Failure to refer the dispute to arbitration …..
Deem to be conclusive and agreed …..
Clause 25.6 (b)
PAM2006

PWD203A(rev.1/2010)
‘..... possession of the whole Site is delayed beyond ninety
(90) days ......’(Clause 38.5(b))
‘..... the S.O. shall give written notice to the contractor of the
causes of such delay. ..... the contractor may, inform the S.O.
in writing of its decision within 14 days of receipt of the said
notice either to:
a)agree to proceed with the works ..... not be entitled to
claim for loss or damage .....
b)terminate this Contract. ..... without prejudice to any other
rights or remedies .....’(Clause 58.5(b))

• The contractor may determine his own employment if the employer
defaults in any of the following:
• (a) If the Employer fails or neglect to pay the Contractor the amount due on
any certificate …..
• (b) If the Employer interferes with or obstructs the issue of any certificate
…..
• (c) If the Employer fails to nominate a succeeding Architect of Consultant
…..
• (d) ….. The carrying out of the whole or substantially the whole of the
uncompleted work is suspended for a continuous period of time exceeding
that stated in the Period of Delay ….. By reason of:
• (i) AI issued by the Architect under clause 1.4, 21.1 or 21.4 …..
• (ii) The Contractor not having received in due time the necessary AI …..
• (iii) Delay on the part of craftmen, tradesmen or other contractors employed
or engaged by the employer …..
• (iv) The opening up for inspection of any work covered up or to arrange for
or carry out any testing of any work …..
Clause 26.1
PAM2006

• In the event the Employer becoming insolvent or making a
composition or arrangement with his creditors, or have a winding
up order made ….. or having a liquidator or receiver or
manager of his business ….. the employment of the Contractor
shall be forthwith determined.
Clause 26.3
• Upon the occurrence of any default ….. the Contractor ….. shall
give to the Employer a written notice ….. specifying the default.
If the Employer shall continue with such default for fourteen (14)
Days ….. then the Contractor may within ten (10) Days from the
expiry of the said fourteen (14) Days, by a further written
notice ….. forthwith determine his own employment under the
Contract …..
Clause 26.2
PAM2006

• ….. such notice shall not be given unreasonably and
vexatiously …..
Clause 26.2
• ….. the employment of the Contractor shall be forthwith
automatically dtermined.
Clause 26.3
• ….. within fourteen (14) Days or within such longer period as
may be agreed in writing by the Architect, remove …..
temporary buildings, construction plant …..
Clause 26.4 (a)
PAM2006

• ….. pay the Contractor the total value of work
properly executed and the value of materials and
goods supplied including any loss and/or expense
suffered by the Contractor …..
Clause 26.4 (a)
• The Contractor shall within 28 Days of the
determination ….. written notice to the Architect and
Quantity Surveyor of the date of inspection on Site
to jointly record the extent of the Works …..
Clause 26.5
PAM2006

• The Contractor ….. within six (6) Months after
determination ….. submit to the Employer, ….. for the
Employer’s agreement, a final account for the total value
of work properly executed, the value of materials and
goods supplied and loss and/or expense suffered by the
Contractor …..
Clause 26.6
• ….. If the amount in the final account exceeds the sums
previously paid to the Contractor ….. the balance shall be
a debt payable to the Contractor ….. If the said amount
is less than the said sum, the difference shall be a debt
payable to the Employer …..
Clause 26.6 (a)
PAM2006

• If nothing in the said Final Account is disputed by the Employer
….. within three (3) Months from the date of receipt of the Final
Account ….. conclusive and agreed by the parties …..
Clause 26.6 (a)
• If the Employer disputes the Final Account ….. written notice to
the Contractor ….. within three (3) Months of the date of receipt
of the Final Account ….. The Contractor shall within three (3)
Months from the date of receipt of the grounds of dispute, either
make such amendments to the Final Account or decide not to
amend ….. the Employer shall refer the dispute to arbitration
….. within three (3) Months from the date of receipt of the
amended Final Account ….. Failure to refer the dispute to
arbitration ….. deem to be conclusive and agreed …..
Clause 26.6 (b)
PAM2006

• Determination of the contractor’s employment under
a typical construction contract ia not a rare
occurance.
• (a) Discuss the situation that could lead such event.
• (b) On the contrary, the contractor may in certain
situation determine his own employment. Discuss.
• (c) Explain the implications of determination of
contract to a project
Question Nine
COURSEWORK

PWD203A(rev.1/2010)
‘No work under this Contract shall commence unless and until the
Performance Bond stipulated under Clause 13 and such insurance
policy as specified under clauses 15 and 18 shall be deposited with
the Government .....’(Clause 38.1)
‘..... it shall perform all of its obligations under this Contract at its
own risk and releases ..... the Government and their agents and
servants from all claims and demands of every kind resulting from any
accident, damage, injury or death arising from the carrying out of
the works .....’(Clause 14.1(a)) (public liability insurance)
‘..... as a condition precedent to the commencement of any work under
this Contract, effect and maintain such insurances .....’ (Clause
15.1(a))

PWD203A(rev.1/2010)
‘It shall indemnify and keep indemnified the Government from and against all
actions, suits, claims ..... to which the Government shall or may ..... become liable
in respect of .....
(i) negligent use ..... by the Contractor or its personnel .....
(ii) any loss or damage to property or injury ..... by carrying out the Works
by the Contractor to any person ..... and not caused by the negligence ..... of the
Government .....
(iii) any loss, damage or injury ..... to property or person ..... contributed by
the act, omission ..... of the Contractor or personnel, ......’(Clause 14.1(b))
‘..... the contractor shall ..... effect and maintain such insurances whether with or
without an excess amount ..... to cover the liability of the Contractor and all sub-
contractors ......’(Clause 15.1(a))
‘Without prejudice to his liability to indemnify the Government .....’ (Clause
15.1(a))

PWD203A(rev.1/2010)
‘..... for the purpose of personal injuries or death, damage or
loss to property ..... arising out of ..... by reason of the execution
of the Works and caused by any negligence, ..... or default of the
Contractor or any sub-contractor .....’(Clause 15.1(b))
‘Such insurance ..... shall be effected and maintained in the
joint names of the Government and the Contractor and all
sub-contractors ......’(Clause 15.1(c))
‘..... the Contractor shall repair, replace or make good such
damage or loss from the amount of insurance claimed, if
sufficient, or if insufficient, using his own resources.’ (Clause
15.5)

PWD203A(rev.1/2010)
‘..... cover from the period of the date of possession of site until the
date of issuance of Certificate of Making Good Defects ..... for the
purpose of complying with his obligations under Clause 48 .....’
(Clause 15(1))
‘It shall be the duty of the contractor to produce and deposit the
relevant policy ..... together with the receipts in respect of premium
paid to the S.O., whether demanded or not.’(Clause 15.2)

PWD203A(rev.1/2010)
‘If the Contractor fails to effect or renew ..... the Government ..... may
effect or renew such insurance and shall be entitled to deduct a sum
equivalent to the amount in respect of the premiums paid and On-
Cost Charges ..... from any money due ..... to the Contractor ..... or to
recover ..... from the Performance Bond .....’(Clause 15.3)
‘The Contractor shall not at any time permit or cause to be done any
act ..... any insurance ..... being vitiated or rendered void ......’ (Clause
15.4(b))
‘..... any insurance ..... only be cancelled ..... after expiry of 30 days
from the date of receipt by the Government of a written notice ..... the
Contractor has been issued with the Certificate of Making Good
Defects ......’(Clause 15.4(a))

PWD203A(rev.1/2010)
‘The Contractor shall be liable for and indemnify and keep
indemnified the Government and its officers or servants from all
liabilities arising out of claims by any workman employed by the
Contractor in and for the performance of this Contract .....’ (Clause
16.1(a)) (workmen compensation)
‘The Contractor shall ..... insure against loss and damage by fire,
lightning, ..... all work executed and all unfixed materials and goods,
delivered to, placed on or adjacent to the Works ..... to the full value
thereof .....’(Clause 18.1(a)) (insurance of work)
‘..... The Contractor shall effect and maintain throughout the
Contract Period a “Workmen Compensation Insurance” .....’ (Clause
16.1(b))

PWD203A(rev.1/2010)
‘Upon the occurrence of any loss or damage to the Works ..... prior to the date
the Works has been certified as practically completed ..... the Contractor shall
notwithstanding that settlement of any insurance claim has not been
completed, with due diligence restore, replace, ..... and completion of the
Works ......’(Clause 18.3)
‘..... and shall keep such work, materials and goods so insured until the
completion of the whole of the Works, ......’(Clause 18.1(a))
‘The Contractor shall in the joint name of the Government and the Contractor
insure against loss and damage by fire, .....’(Clause 18.1(a))
‘If the Contractor fails to effect or renew ..... the Government ..... may renew
such insurance and pay the premium ..... deduct the amount so expended
including On-Cost Charges ..... from any money due ..... to the Contractor .....
or to recover ..... from the Performance Bond ......’(Clause 18.2)

PWD203A(rev.1/2010)
‘..... All money if and when received from the insurance ..... shall be
paid in the first place to the Government and then ..... be released to
the Contractor by installments ..... in proportion to the extent of the
work of restoration, replacement ..... The Contractor shall not be
entitled to any payment ..... other than the money received under the
said insurance.’(Clause 18.3)
‘..... The Contractor shall register or cause to register all local
workmen employed in the execution of the Works and who are subject
to registration under the Employee’s Social Security Scheme ..... in
accordance with the Employee’s Social Security Act 1969 ..... the term
local workmen shall include workmen who are Malaysian citizens and
those who have permanent resident status.’ (Clause 17.1) (social
security act 1969)

PWD203A(rev.1/2010)
‘..... The Contractor shall submit the Code Number and Social Security
Numbers ..... The Contractor shall make payment of all contribution from
time to time on the first day on which the same ought to be paid and until
the completion of this Contract ......’(Clause 17.2)
‘If the Contractor fails to comply with the terms of this clause, the
Government or the S.O. may .....
(a) withhold an amount from any money which would otherwise be
due to the Contractor ..... will satisfy any claim forcompensation by
workmen .....
(b) pay such contributions including On-Cost Charges ..... from any
money due ..... and failing which such contributions shall be recovered
from the Performance Bond or as a debt due from the Contractor.’ (Clause
17.3)

PWD203A(rev.1/2010)
‘The Contractor shall, on the date of the Possession of Site, provide a
Performance Bond ..... in the form as in Appendix issued by an
approved licensed bank of financial institution ..... to secure the due
performance of the obligations under this contract by the Contractor
.....’(Clause 13.1(a)) (performance bond)
‘..... the Government shall be entitled at any time to call upon the
Performance Bond, ..... in the event that the Contractor fails to
perform or fulfills its obligations under this contract .....’ (Clause
13.3)
‘The Contractor shall ..... provide a Performance Bond ..... in favour
of the Government for a sum equivalent to five percent (5%) of the
total Contract Sum .....’(Clause 13.1(a))

PWD203A(rev.1/2010)
‘If a payment is made ..... the Contractor shall issue to the
Government further security in the form of additional performance
bond or bonds for an amount not less than the amount so paid to
the Government ..... so that the total sum of the Performance Bond
shall be maintained at all times at the value specified in clause
13.1(a).’(Clause 13.4)
‘..... In the event that this contract is terminated ..... Performance
Bond or any balance thereof shall be forfeited.’(Clause 13.6)
‘The Performance Bond ..... may be released or refunded to the
Contractor ..... upon the giving of the Certificate of the Completion
of Making Good Defects, .....’(Clause 13.5)

PWD203A(rev.1/2010)
‘The Contractor may opt for a Performance Bond in the form of Performance
Guarantee Sum .....’(Clause 13.2) (performance guarantee sum)
‘..... deduction of 10% shall be made from the first interim payments and
subsequent interim payment until the total amount deducted aggregate to a
sum equivalent to 5% of the Contract Sum .....’(Clause 13.2)
‘If the Contractor fails to submit the said Performance Bond ..... On the date
of possession of site, then the Contractor shall be deemed to have opted for
..... Performance Guarantee Sum .....’(Clause 13.1(b))
‘..... The amount deducted shall be retained by the Government up to twelve
(12) months after the expiry of the Defects Liability Period or the issuance of
the Certificate of Completion of Making Good Defects, whichever is later.’
(Clause 13.2)

• The Performance bond ….. shall remain valid until three (3) Months after
the Completion Date. Where the Works would not be completed by the
Completion Date, the Contractor shall ….. extend the duration of the
Performance Bond to expire three Months after the projected Practical
Completion …..
Performance Bond – Clause 37.3
• If the Contractor fails to provide or maintain the validity of the
Performance Bond ….. the Employer shall be entitled to withhold or
deduct an amount equal to the Performance Bond from any payment
due or to become due to the Contractor.
Clause 37.4
• In the event the Contractor determines his own employment ….. the
Employer shall within twenty eight (28) Days return the Performance
Bond to the Contractor for cancellation.
Clause 37.6
PAM2006

• the Employer’s interest in any amount so retained shall be fiduciary
as trustee for the Contractor ….. the party elects to demand in
writing from the Employer ….. for such Retention Fund to be paid
into a trust account, such fund shall be paid by the Employer
within fourteen (14) Days into an escrow account …..
• ….. subject only to the right of the Employer to have recourse from
time to time for payment of any amount as the Architect may
certify that he is entitled under the Contract to deduct from such
sum due or to become due to the Contractor …..
Retention Money – Clause 30.6 (a)
• when the Employer ….. deduct from any monies due to or to
become due to the Contractor ….. He shall inform the relevant
party in writing of the reason for that deduction,
Clause 30.6 (b)
PAM2006

• The Employer may retain the percentage of the total value of the
work, materials and goods ….. stated in the Appendix as
Percentage of the Certified Value Retained. When the sum of the
amounts so retained equals the amount stated in the Appendix as
Limit of Retention Fund ….. no further amount shall be retained
…..
Clause 30.5
• upon the issuance of the Certificate of Practical Completion, the
Architect shall within fourteen (14) Days issue a certificate for the
release of one half of the Retention Fund …..
Clause 30.6 (c)
PAM2006

• upon the issuance of the Certificate of Making Good Defects, the
Architect shall within fourteen (14) Days issue a certificate for the
residue of the amount then so retained …..
Clause 30.6 (d)
• Upon the issuance of the Certificate of Partial Completion, the
Architect shall within fourteen (14) Days issue a certificate to release
half of the amount of the Retention Fund in the ratio of the
estimated value of the Occupied Part ….. The amount of the limit of
Retention Fund shall then be reduced by the same amount;
Clause 16.1 (d)
• Upon the issuance of the Certificate of Making Good Defects of the
Occupied Part, the Architect shall within 14 days issue a certificate
for the release of the remaining amount of the Retention Fund
…...
Clause 16.1 (f)
PAM2006

• The S.O. had written to you enquiring about the
contractual standing of the following:
• (a) The extend of coverage and duration to be covered by
all the insurance policies.
• (b) The validity period of a Performance Bond and the
situation where the client has the right of claims against it.
• (c) In a situation where the defect liability period required
by the Employer is two (2) years. How would the above
two items be affected or adjusted?
Question Ten
COURSEWORK

Time Related Professional Practice

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