Dr Khairuddin Abdul Rashid

Session 5
PWD Form DB/T (2002)
Conditions of Contract
Clause 46 – 62

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 46 Procedure for Claims

Cl. 46.1 if the contractor

intends to claim … he must
submit written notice together
with an estimate of the
amount within 60 days of the
occurrence of an event…

Cl. 46.2 in relation to Cl. 46.1,
the contractor must submit
details within 90 days of CPC.
Amount to be added to the
contract sum

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 47 Testing and
Commissioning of M/E and
other Services

The contractor shall arrange

for all necessary tests to be
carried out on the equipment
and installation, on
completion of the installation
work… the costs should have
been included in the contract

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 48 Defects After
Completion

DLP = 24 months

Contractor to repair at his own
cost upon instructed by the PD

Schedules of Defects: 1st
within 14 days; and the final
schedule not later than 28
days after the DLP

Contractor has up to 3 months
after receiving the final
schedule to make good any
defects, etc

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 48 Defects After
Completion

Cl. 48.5 PD to issue the

Certificate of Completion of
Making Good Defects if the
contractor has fulfilled his
obligations under Cl. 48.1 and
48.2

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 49 Unfulfilled Obligations

Notwithstanding the issue of

CCMGD as per Cl. 48.5, both
parties remain liable for the
fulfillment of any obligations
incurred under the contract

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Salient points (amendments) on
payments

Schedule payment

Payment based on valuation of
works

Deferred payment

To be determined by the PD
before tender is called

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 50 Interim Payments

Cl. 50 1(a) Payment Schedule

as Appendix 2. Prepared and
agreed mutually based upon
the approved programme of
works

PD may pay according to

work done…

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 50 Interim Payments

Cl. 50 1(b) Where there is no

Payment Schedule, interim
payment shall be made based
on PD’s monthly valuation of
work done

Cl. 50.2 The contractor shall

submit to the PD written
application for interim
payments

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 50 Interim Payments

The contractor’s application

shall show separately:

 based on schedule – amount

of variations (Cl. 28) and
amount of Provisional Sums
executed (Cl. 29)
 Not based on schedule – value
of goods or unfixed materials

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 50.3 (a) Schedule
Contractor’s application
14 days

OK?
Yes NO

PD issue PD issue notice

interim certificate and Govt. pays
pays within within 30 days
30 days (Cl. 50.3(c) (Cl. 50.3(c)

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 50.3 (b) No schedule
Contractor’s application
28 days

Valuation (work done + 90%

matls. on site) sum not less
than the sum stated in
Appendix 1

PD issue
interim certificate
pays within
30 days (Cl. 50.3(c)

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 50.3 (c) Honoring of
interim certificates = 30 days
from issue of the same

Performance Bond – full value

as in the certificate

Performance guarantee sum –

90% of the amount certified…
10% retained as the guarantee
sum until the total amount
retained is equivalent to 5% of
the contract sum

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 51 Final Account and Final
Certificate

Cl. 51.1 The contractor to

submit a statement of the final
account with supporting
documents not later than 3
months from CCMGD or
CCM

CL. 51.2 PD to issue the Final
Certificate within 3 months
after receiving the contractor’s
document as stated in Cl. 51.1

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 51 Final Account and Final
Certificate
CCMGD or CCM
3 months

Contractor’s documents (if none

3 months PD sends notice)
2 months
Final Certificate

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 51.6 Condition precedent
to Final Payment is deleted
(see Amendments note 7)

 A Statutory Declaration, or
 A Certificate signed by/or on
behalf of the DG of Labor
That all payments to workmen
have been paid

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 52 Effects of PD’s
Certificate

PD’s certificate, any approval,

or payment… not considered
as conclusive evidence

PD’s certificate shall be final
and binding if there is a
dispute brought before an
arbitrator or in the courts

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 53 Deduction from Money
Due to Contractor

The Government or the PD is

entitled to deduct any money
owing from the contractor to
the Government under the
contract which may become
due or payable to the
contractor under the
contract…

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 54.1 Determination of
Contractor’s Employment
Determination if the contractor
shall make default in any one
or more:
 Suspends the design or
construction
 Fails to proceed regularly and
diligently
 Failed to follow contract
 Refuses to comply with PD’s
instruction
 Fails to comply with Cl. 31

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 54.2 Determination of
Contractor’s Employment
Determination if the contractor:

 Is bankrupt
 Becomes insolvent
 Company winding up
 Having a provisional
liquidator

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract

Clause 54.3 Post determination

Procedures as per Cl. 54.3(a)

– (f)

Clause 55 War or Earthquake

To continue? To suspend? To
terminate?... Settled by mutual
agreement or Arbitration

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract

Clause 56 Arbitration

Any dispute… refer to the

person named in Appendix 1

The officer decides (within 45
days, in writing) and is
binding to the parties until
after the completion of the
works

If the above fails… refer to
Arbitration … see Cl. 56.3
and Cl. 56.4-56.9

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract

Clause 57 Law Governing the

Contract

Malaysian Law and Malaysian

Courts

Clause 58 Stamp Duty

To be borne by the Contractor

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Special Conditions
Clause 59 Maintenance

Cl. 59.1 The contractor shall

maintain the whole works and
services for 24 months from
CPC (for scope refer to the
Government’s Requirements)

Cl. 59.4 PD to issue

Certificate of Completion of
maintenance upon completion
of all maintenance

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Special Conditions
Clause 60 Direct Payments and
Consultancy Agreement with
Contractor’s Consultants

Cl. 60.1 -60.2 agreement with
consultants must follow the
JKR Standard Form of
Agreement For Consultancy
Services

The contractor recommends to
the PD for payments… the
Government pays direct to the
respective consultants

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Special Conditions
Clause 61 Bills of Quantities

Only provisional quantities.

Firm quantities shall not form
part of the contract.

Rates in the BQs shall be used

as basis from valuation of
variations (Cl. 28)

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Special Conditions
Clause 62 Advance Payment

Cl. 62.1 The contractor is

entitled – 15% of the Builder’s
Work or maximum of RM5.0
million. Condition precedent:

 LA duly signed, with

Performance Bond, Insurances
and SOCSO, with all receipts
 Advance payment guarantee

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Special Conditions
Clause 62 Advance Payment

Treasury Letter 10/02:

25% of builder’s work,

maximum RM10.0 million

20% of NSC’s work,
maximum RM5.0 million

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Special Conditions
Clause 62 Advance Payment

For recoupment see Cl. 62.2

Liability under advance

payment is terminated once
the Government realized the
full sum of advance paid

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Deferred payment [Amendments]
Cl. 50 Interim Valuations and
Interim Payments
Cl. 63 Loan Disbursement by the
Lender
Cl. 64 Direct Payment to the
Contractor’s Bumiputera
Organizations and or
Professionals
Cl. 65 Financing Cost
Delete Cl. 62 Advance Payment

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Deferred payment [Amendments]

Monthly interim payments are
deferred until CPC

Contract Sum = Construction
cost + Financing cost

Lender – BPIMB (Bank
Pembangunan)

Deed of Assignment between
the contractor and the Bank

Financing cost = actual cost of
fund + 1%

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract

Deferred payment

There will be monthly interim
valuation & payments

Direct payments to Bumi
organizations

Direct payments to
consultants

Contractor to submit claims
for payments

PD issue interim valuation
certificate within 28 days

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract

Deferred payment

Lender (the bank) will
disburse payment based on
PD’s certificate

Govt. pays interim payment
no 1 on CPC = 50% work
done + 50% financing cost

Govt. pays interim payment
no 2 one year after CPC for
the balance.

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Dr Khairuddin Abdul Rashid

End of Session 5

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