Dr Khairuddin Abdul Rashid

Session 2 PWD Form DB/T (2002) Articles of Agreement Conditions of Contract Clause 1 – 15

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Prepared by a Technical Committee set up in 1996 Chair – JKR Members – representatives from JKR, JPS, DBKL, JPN, KKR, Treasury and MAMPU 1st – 2000 2nd Edition – 2002

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Contents Articles of Agreement First to Fourth Recital Article 1 to 4 Conditions of Contract Clause 1 to 58 Special Conditions Clause 59 to 62 Appendices

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Subsidiary forms Form of Tender PWD Form DB/T-A2002 Addendum No 1 (Amendments no. 1 to 10) Addendum No 2 (Amendments no. 1 to 25) for Deferred Payment only Also a guide on the use of the form

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Salient points Old concepts Turnkey – contractor design & supervise D & B – contractor design, JKR supervise New concepts Turnkey – contractor design, supervise & equipt D & B – contractor design & supervise

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Salient points Design bond no longer required DLP 24 months 30% Bumi participation Bumi consultants only if project value <RM50 m Bumi + Non-Bumi JV of local consultants if project value >RM50 m Direct payment to contractor’s consultants Used when: No expertise in JKR Specialist design Emergency Requires Treasury’s approval if to be called on direct negotiation or selective tender

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Articles of Agreement Contract No / Expenditure Date of signing Parties – Government & the contractor 1st Recital – project title 2nd Recital – Contractor’s Proposal 3rd Recital – Contract Sum Analysis 4th Recital – meeting the Government’s requirements

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Articles of Agreement Article 1 – Contractor agrees to design and construct Article 2 – Government agrees to pay … Contract Sum Article 3 – Government’s requirements, the Contractor’s Proposal, the Contract Sum Analysis, the Contract Schedule of Rates… signed and appended

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Articles of Agreement Article 4 – Contract documents Articles of Agreement ii. Conditions of Contract and Appendices iii. Government’s Requirements iv. Contractor’s Proposal v. Contract Sum Analysis vi. Schedule of Rates vii. Form of Tender viii. Letter of Acceptance
i.

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Articles of Agreement Signature of parties
i. ii.

Contractor and witness Government and witness

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 1 Interpretation, definitions Reference to clauses of the conditions Documents read as a whole Definitions – see Cl. 1.3 (a) to (r), p1-3 New sub-clauses (s) to (x) on ‘deferred payment’

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 2 Contractor’s Obligations Key obligations Cl. 2.1(a) Design, construct and complete the works Cl. 2.2 Fully responsible for the design, execution and maintenance and guarantee the Government Cl. 2.3.2 Novation Cl. 2.4.1 QA System

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 2 Contractor’s Obligations Key obligations Cl. 2.7.1 Care of the works up to Practical Completion or Partial Occupation subject to Cl. 2.7.2 (a) to (f) ‘excepted risks’ Cl. 2.9 Employ local, regd consultants (PD’s consent) Cl. 2.10 Engage Bumiputera as sub-contractors (30% [40%] of CS) Cl. 2.11 Submit programme

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 3 PD’s Rights to Take Action Cl. 3 (i) any matter related to: Cl. 40 (mutual termination) Cl. 45 (Delay and EoT) Cl. 54 (Determination) Cl. 55 (War or Earthquake) or Cl. 56 (Arbitration) is reserved for the Officer named in Appendix 1

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 3 (ii) PD’s rights to issue instructions requiring a variation under Cl. 27.2 is subject to the financial limits as set out in Appendix 1 (Treasury Instructions 202)

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 4 PD’s Instructions Cl 4.3 must be in writing Cl. 4.1 Contractor shall comply in 7 days… see Cl 4.2 (noncompliance), Cl. 27.1 (contractor object with reasons) Cl. 4.2 If within 7 days, the contractor fails to comply, PD may employ and pay others (deduct monies due to the contractor)

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 5 Notices Cl. 5 Written notices to be left at the contractor’s office on site, to be confirmed by his PM or send to contractor’s place of business

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 6 Contract Documents Cl. 6.1 PD keeps the original copy, contractor keeps the duplicate copy Cl. 6.2 Contractor submit 8 certified copies, Cl 6.3 2 copies of drawings, etc, Cl. 6.4 one copy of contract documents keep at the site Cl. 6.5 On completion contractor to submit as built drawings

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 7 Sufficiency of Contract Documents Cl. 7.1 Contractor to provide everything necessary… Cl. 7.2 the Articles of Agreement, the Conditions and the Appendices shall prevail over other documents… any ambiguity/discrepancy to refer to PD, contractor to rectify at his own cost

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 7 Sufficiency of Contract Documents Cl. 7.3.1 (a) and (b) Documents are mutually explanatory… between the Government’s Requirements and the Contractor’s Proposal, the former prevails

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 8 Materials, Goods and Workmanship Cl. 8.1 the works shall be in accordance to the contract Cl. 8.4 contractor to carry out checks and tests Cl 8.5 PD may issue instructions to remove from the site or rectify any work, materials… not in accordance to the contract

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 9 Restriction and Procedure on Use of Imported Materials and Goods Cl. 9.1 Malaysian materials and goods only Cl. 9.2 Imported materials, etc can only be used if approved by the Government

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 10 Construction Plan, Equipment, Vehicles and Machineries The contractor is responsible and shall pay all port dues, prepare and submit all documents and abide by the requirements of the relevant authorities, pay all charges and expenses and supply a list to the PD

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 11 Non-removal of Materials and Equipment on Site Equipment, temporary works, materials… intended for the works can only be removed from the site with the written consent of the PD

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 12 Statutory obligations, notices, fees and charges Cl. 12.1.1 The contractor shall comply with statutory requirements Cl. 12.2 The Contractor shall pay/indemnify the Government against liability of any fees, charges…

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 12 Statutory obligations, notices, fees and charges Cl. 12.1.2 Divergence to be brought to attention; the contractor shall propose amendments (in case of emergency see Cl. 12.1.3) and with the PD’s consent carry out the works at his own cost (subject to Cl. 12.3)

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 12 Statutory obligations, notices, fees and charges Cl. 12.3.1 and 12.3.2 Variation in the statutory requirements / conformity with terms of an authority’s approval after date of tender leading to amendment to contractor’s proposal is treated as an instruction of the PD affecting a Variation under Cl. 27.2

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 13 Custom Dues and Taxation Cl. 13.1 – 13.3 The contractor to pay all duties and taxes and make arrangement for their employees to pay income tax

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 14 Antiquities Cl. 14.1 found on the site becomes the property of the Government. The contractor shall not disturb, preserve the findings, and inform the PD Cl. 14.2 PD shall issue instruction Cl. 14.3 Compliance with 14.2 may lead to reimbursement for loss and or/expense

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002
Conditions of Contract Clause 15 Copyright, royalties and patent rights Cl. 15.1 The contractor is responsible for payment of all royalties or other sums … of any patented articles, etc in respect of the works other than those provided by the PD Cl 15.2 Issue on patent that arises due to PD’s instruction, the sum added to the contract

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Dr Khairuddin Abdul Rashid

End of Session 2

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