CLAUSE 23-24

PAM CONTRACT 2006 WITH QUANTITIES

PREPARED BY : AR. NIK IRNANI DAMIAN

16 MAC 13
CLAUSE 1: CONTRACTORS OBLIGATION CLAUSE 20: INSURANCE OF BUILDING

CLAUSE 2 : ARCH INSTRUCTION CLAUSE 21:DATE COMMENCE, POSTPONE, COMPLETE

CLAUSE 3: CONTRACT DOC, PROGRAM, AS-BUILT CLAUSE 22: DAMAGE FOR NON COMPLETION

CLAUSE 4: STATUTORY OBLIGATION CLAUSE 23: EXTENSION OF TIME

CLAUSE 5: LEVEL & SETTING OUT CLAUSE 24: LOSS AND EXPENSES

CLAUSE 6: MATERIAL WORKMANSHIP CLAUSE 25: DETERMINATION BY EMPLOYER

CLAUSE 7: ROYALTIES & INTELECTUAL PROP RIGHT CLAUSE 26: DETERMINATION BY CONTRACTOR

CLAUSE 8: SITE AGENT CLAUSE 27: NOMINATED SUB CONTRACTOR

CLAUSE 9: ACCESS TO WORK CLAUSE 28: NOMINATED SUPPLIER

CLAUSE 10: SITE STAFF CLAUSE 29: WORKS BY OTHERS

CLAUSE 11: VARIATION, PROVISIONAL & PC SUM CLAUSE 30 : CERTIFICATE AND PAYMENT

CLAUSE 12: QUALITY & QUANTITY OF WORKS CLAUSE 31 : OUT BREAK OF HOSTILITIES

CLAUSE 13: CONTRACT SUM CLAUSE 32: WAR DAMAGES

CLAUSE 14: MATERIAL AND GOODS CLAUSE 33 : ANTIQUITIES

CLAUSE 15: PRACTICAL COMPLETION & DLP CLAUSE 34 : ADJUDICICATION & ARBITRATION

CLAUSE 16: PARTIAL POSSESION CLAUSE 35 : MEDIATION

CLAUSE 17: ASSIGNMENT / SUBCONTRACTING CLAUSE 36 : NOTICE

CLAUSE 18: INJURY AND INDEMNITY TO EMPLOYER CLAUSE 37 : PERFORMANCE BOND

CLAUSE 19: INSURANCE (PERSON & PROPERTY) CLAUSE 38 : GOVERNING LAW

 23. 0 Extension of Time

DEFINITION

a) Extension of time is a provision made in building

contracts for architects to grant extension of time
to the completion date

b) The extension of time given is subject to delay that

occur due to certain specified causes.

WHY EOT CLAUSE IS INCLUDED IN

CONTRACT?

E.O.T. clause is put into the Contract to cater for the

delay caused by:-
1) Employer or the Architect
2) Neither Party (neutral event)
23. 0 DELAY BY EMPLOYER OR ARCHITECT

The EOT clause cover delays which is a result from the

employer and architect.

• Example: Delay giving possession of site, delay appointed

NSC, Delay giving AI, Delay supply material from own
source, breach of contract, late appointment of replacement
consultant, late giving entry to site.

• Without E.O.T. Clause, the completion of works delayed by

the Employer/Architect will also relieve the Contractor
from his liability to pay liquidated damages and the time
for completion may become at large.
SCENARIO 1 Completion Date EOT 1

31/08/12
Works
complete
accordance
to contract
and AR to
Completion Date EOT 1 Ar to issue issue CPC
SCENARIO 2 1/1/2012 1/6/2012 CNC

LD starts to calc since

2/6/12 – 31/08/12

TIME AT LARGE
23. 0 SITUATION OF TIME AT LARGE

1. When no time for completion is specified in contract

provision

2. When the conditions of contract make no proper provision for

extending the completion date & Contractor is delayed by the
Employer

3. When Architect fail to certify CNC after passing the completion

Date

Thus, when time is at large the Contractor/ subcontractor’s

obligation is to finish within a reasonable time and LD cannot be
imposed.
23. 0 DELAY BY NEITHER PARTY (NEUTRAL EVENT)

i) To cover fair sharing of the risk between the parties.

ii) Example : force majeure, inclement of weather, civil

commotion, war damage, Discovery of antiquities, New
legal requirements, Delay by service provider, suspension
work directed by authority.

iii) No monetary compensation will be paid to the Contractor

if given EOT unless allowed for claim under L&E.

iv) Other neutral

23. 0 Extension of Time : Relevant Events

Description
Neutral Event Force majeure 23.8(a)
Inclement Weather 23.8 (b)
War damage 23.8 (n)
Architect’s Delay re RFI 23.8(e)
Instruction
Inspection of works (6.3) 23.8 (l)
Comply with AI issued in connection with discovery 23.8 (o)
antiquities
Dispute with neighboring property owners 23.8 (s)
Comply with AI re 1.4, 11.2 & 21.4 23.8 (g)
NSC Re-nominated of NSC 23.8(i)
-Apply only 27.11
-- NOT APPLY to 27.12
Delay on the part of NSC 23.8 (h)
(related to 21.4(a)-21.4(w) PAM Sub Contract 2006)
23. 0 Extension of Time : Relevant Events

Description Clause

Employer Delay in giving site possession 23.8(f)

(21.1 and 21.2)
Delay in supply of materials/goods 23.8 (k)
War damage (32.1) 23.8 (n)
Delay on craftsmen/ tradesmen /Other contractor which 23.8 (j)
employed by MC
Any act of prevention or breach BY EMPLOYER 23.8 (m)
Suspension of MC coz of non payment 23.8 (v)
OTHERS Comply with other Law/ regulations/Service 23.8 (p)
Provider
Appointment of replacement other person under Article 3,4,5 & 23.8 ( r)
6
Delay as a result of the execution of work for which Prov 23.8 (t)
Quantity is included in the Contract Bills
23. 0 Extension of Time

23.1 Submission of notice and

particulars for EOT

23.2 Delay by NSC PROCESS

23.3 Insufficient Information

23.4 Certificate of EOT

OF EOT
Procedure for Applying EOT
23. 0 Extension of Time

23.7 Notification to Nominated Sub- The Architect shall notify every

Contractors Nominated Sub-Contractor in
writing of each decision of the
Architect when fixing a later
Completion Date

Short notes
•This clause require architect to notify every NSC when he makes
decision of on an EOT
•This is to enable NSC, whose work programme may be affected by
the EOT, to agree the necessary adjustment to the program with
the contractor.
23. 0 Extension of Time

23.9 Extension of time after the issuance
of Certificate of Non~Completion
Where a Relevant Event occurs
after the issuance of the
Certificate of Non-Completion,
the Architect shall grant an
extension of time.
The extension of time granted
shall be added to the
Completion Date of the Works or
any section of the Works

Short notes

•This clause is expressly drafted to allow Arch to issue EOT after

issuance of CNC.

•Example : VO after CNC.

•Absence of this clause will render contract to be at large as arch

not empowered to give EOT.

•It is a mechanism for topping up of EOT for relevant events occur

after CNC.
 23. 0 Extension of Time
The Architect may (but not obliged to) within twelve
(12)
23.10 Architect's review of extension of
Weeks after the date of Practical Completion review
time after Practical Completion and fix
a Completion Date later than that previously fixed,

• if in his opinion the fixing of such later Completion Date is

fair and reasonable having regard to any of the Relevant
Events, whether upon reviewing a previous decision or
otherwise and whether or not a Relevant Event has been
specifically notified by the Contractor Wider Clause 23.1.

• No such final review of extension of time shall result in a

decrease in any extension of time already granted by the
Architect.

• In the event the fixing of such later Completion Date

affects
the amount of Liquidated Damages the Employer is entitled
to retain, he shall repay any surplus amount to the
Contractor within the Period of Honouring Certificates
23. 0 WHAT HAPPENS IF EOT IS NOT INCLUDED IN THE
CONTRACT?

In the absence of express Contractual power to give EOT for

completion,

a) Architect could not give EOT.

b) When this occur, it will relieve the Contractor from his liability
• to pay liquidated damages (LD)

c) Thus the time for completion become ‘at large’.

CLAUSE 1: CONTRACTORS OBLIGATION CLAUSE 20: INSURANCE OF BUILDING

CLAUSE 2 : ARCH INSTRUCTION CLAUSE 21:DATE COMMENCE, POSTPONE, COMPLETE

CLAUSE 3: CONTRACT DOC, PROGRAM, AS-BUILT CLAUSE 22: DAMAGE FOR NON COMPLETION

CLAUSE 4: STATUTORY OBLIGATION CLAUSE 23: EXTENSION OF TIME

CLAUSE 5: LEVEL & SETTING OUT CLAUSE 24: LOSS AND EXPENSES

CLAUSE 6: MATERIAL WORKMANSHIP CLAUSE 25: DETERMINATION BY EMPLOYER

CLAUSE 7: ROYALTIES & INTELECTUAL PROP RIGHT CLAUSE 26: DETERMINATION BY CONTRACTOR

CLAUSE 8: SITE AGENT CLAUSE 27: NOMINATED SUB CONTRACTOR

CLAUSE 9: ACCESS TO WORK CLAUSE 28: NOMINATED SUPPLIER

CLAUSE 10: SITE STAFF CLAUSE 29: WORKS BY OTHERS

CLAUSE 11: VARIATION, PROVISIONAL & PC SUM CLAUSE 30 : CERTIFICATE AND PAYMENT

CLAUSE 12: QUALITY & QUANTITY OF WORKS CLAUSE 31 : OUT BREAK OF HOSTILITIES

CLAUSE 13: CONTRACT SUM CLAUSE 32: WAR DAMAGES

CLAUSE 14: MATERIAL AND GOODS CLAUSE 33 : ANTIQUITIES

CLAUSE 15: PRACTICAL COMPLETION & DLP CLAUSE 34 : ADJUDICICATION & ARBITRATION

CLAUSE 16: PARTIAL POSSESION CLAUSE 35 : MEDIATION

CLAUSE 17: ASSIGNMENT / SUBCONTRACTING CLAUSE 36 : NOTICE

CLAUSE 18: INJURY AND INDEMNITY TO EMPLOYER CLAUSE 37 : PERFORMANCE BOND

CLAUSE 19: INSURANCE (PERSON & PROPERTY) CLAUSE 38 : GOVERNING LAW

 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works

PAM 2006 contains detailed Contractor can claim

against the Employer /for loss and expense suffered ,
if the regular progress of the work is disrupted due to the
specified clause – clause 24.3(a) – 24.3(n).

Although such provision bear some resemblance to the

grounds under which the Contractor can claim for an
extension of time, there are however 2 distinctions.
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works

1) The Architect can grant an extension of time if the Architect is

of the opinion that regular progress has been affected, whereas
compensation for loss and/or expense does not depend on such
extension of time.

2) The Contractor is only entitled to compensation for delays

which are the Employer’s responsibility and not those caused by
Neutral Events.
Eg. Delay on commencement
Delay on nomination of tradesmen
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works

A claim for loss and/or expense made under Clause 24 of the

Contract is a Contractual Claim.

The Architect is empowered under Clause 24.4 to assess the loss

and/or expenses.
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works
24.1 Loss and/or expense caused by
matters affecting the regular progress of
the Works

24.2 Access to Contractor's books and

documents

24.3 Matters materially affecting the

regular progress ofthe Works

24.4 Loss and/or expense to be included

in certificate
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works
24.1 Loss and/or expense caused by
Where the regular progress of the Works or any section of
matters affecting the regular progress of
the Works the Works has been or is likely to be materially affected by
any of the matters expressly referred to in Clause 24.3, and
24.2 Access to Contractor's books and the Contractor has incurred or is likely to incur loss and/or
documents expense which could not be reimbursed by a payment made
under any other provision in the Contract, the Contractor
24.3 Matters materially affecting the may make a claim for such loss and/or expense provided
regular progress ofthe Works always that:

24.6 Loss and/or expense to be included

in certificate
24.1 (a) Contractor shall give written notice to the Architect
of his intention to claim for such loss and/or expense
together with an initial estimate of his claim duly supported
with all necessary calculations. Such notice must be given
within twenty eight (28) Days from the date of the AI, CAI
or the start of the occurrence of the matters referred to in
Clause 24.3, whichever is the earlier. The giving of such
written notice shall be 'a condition precedent to any
entitlement to loss and/or expense that the Contractor
may have under the Contract and/or Common Law
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works

Where the regular progress of the Works or any section of the Works has
been or is likely to be materially affected by any of the matters expressly
referred to in Clause 24.3

It is vital that the Contractor makes the application as soon as

he is aware that the regular progress of the works has been
affected by any of the matters expressly referred to
Clause 24.3 (a) to Clause 24.3 (n).

Note that not all the reasons which entitle the Contractor to an
extension of time under Clause 23.8 will give rise to a claim for
loss and/or expense.
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works

the Contractor has incurred or is likely to incur loss and/or expense

The Claims resulting from the breach will include amongst others:
• Increased Preliminaries
• Overheads
• Loss of profit
• Loss of productivity or uneconomic working
• Fluctuations
• Financing Charges
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works
24.1 Loss and/or expense caused by
Where the regular progress of the Works or any section of
matters affecting the regular progress of
the Works the Works has been or is likely to be materially affected by
any of the matters expressly referred to in Clause 24.3, and
24.2 Access to Contractor's books and the Contractor has incurred or is likely to incur loss and/or
documents expense which could not be reimbursed by a payment made
under any other provision in the Contract, the Contractor
24.3 Matters materially affecting the may make a claim for such loss and/or expense provided
regular progress ofthe Works always that:

24.6 Loss and/or expense to be included

24.1
in (a)
certificate
24.1 (b) within twenty eight (28) Days after the matters
Instruction
or Within 28 days to submit notice referred to in Clause 24.3 have ended, the Contractor shall
occurrence of send to the Architect and Quantity Surveyor, complete
the matter
particulars of his claim for loss and or expense together with
all necessary calculations to substantiate his claims. If the
Contractor fails to submit the required particulars within
24.1 (b) the stated time (or within such longer period as may be
End of agreed in writing by the Architect), it shall be deemed
The Within 28 days to submit that the Contractor has waived his rights for loss
matter
and/or expense
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works
24.1 Loss and/or expense caused by
The Contractor shall keep contemporaneous records of
matters affecting the regular progress of
the Works all his claims for loss and/or expense and shall submit
all particulars to the Architect. The Architect and Quantity
24.2 Access to Contractor's books and Surveyor shall have access to all books, documents,
documents reports, papers or records in the possession, custody or
control of the Contractor that are material to the claim and
24.3 Matters materially affecting the the Contractor shall provide free of charge, a copy each
regular progress ofthe Works to the Architect and Quantity Surveyor when requested.
All such documents shall remain available in accordance
24.6 Loss and/or expense to be included
in certificate with this clause until all claims have been resolved.
The Contractor shall use his best endeavor to ensure that
all such documents in the possession, custody or control of
sub-contractors and/or suppliers that are material to the
claim are similarly available
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works
24.1 Loss and/or expense caused by The following are the matters referred to in Clause 24.1:
matters affecting the regular progress of
the Works 24.3(a) the Contractor not having received in due time the
AI necessary AI (including those for or in regard to the expenditure
24.2 Access to Contractor's books and of P.C Sums & Provisional Sums, further drawings, detail, levels
documents and any other information) for which he had specifically applied
in writing to the Architect.
24.3 Matters materially affecting the
regular progress ofthe Works The Contractor’s application must be submitted to the
Architect in sufficient time before the commencement of
construction of the affected works, to enable the Architect to
24.6 Loss and/or expense to be included issue the necessary AI within a period which would not
in certificate materially affect the progress of the affected works, having
regard to the Completion Date.

Provided always that the AI was not required as a result of any

negligence , omission, default and/or breach of contract by the
Contractor and/or Nominated Sub-Contractors.
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works
24.1 Loss and/or expense caused by The following are the matters referred to in Clause 24.1:
matters affecting the regular progress of
the Works C 24.3(b) delay by the Employer in giving possession of the Site
or any section of the Site in accordance with Clause 21.1 and
24.2 Access to Contractor's books and
21.2
documents

24.3 Matters materially affecting the 24.3(c) compliance with a written instruction issued by the
regular progress ofthe Works AI
Architect in regard to the postponement or suspension of all or
any part of the Works to be executed under Clause 21.4
24.6 Loss and/or expense to be included
in certificate 24.3(d) delay on the part of craftsmen, tradesmen or other
C contractors employed or engaged by the Employer in
executing work not forming part of the Contract or the Failure to
execute such work.

24.3(e) delay or failure in the supply of materials and goods

C
which the Employer had agreed to supply for the works
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works
24.1 Loss and/or expense caused by The following are the matters referred to in Clause 24.1:
matters affecting the regular progress of
the Works 24.3(f) the opening up for inspection of any works covered up,
testing any materials and goods or executed work in
24.2 Access to Contractor's books and accordance with Clause 6.3, unless the inspection or test
documents AI showed that the works, materials and goods were not in
accordance with the Contract or was in the opinion of the
24.3 Matters materially affecting the Architect required in consequence of some prior negligence,
regular progress ofthe Works omission, default and/or breach of contract by the Contractor.

24.6 Loss and/or expense to be included 24.3(g) any act of prevention of breach of contract by the
C
in certificate Employer

24.3(h) delay as a result of a compliance with AI issued in

AI connection with the discovery of antiquities under Clause 33.1

24.3(i) appointment of replacement Person under Article 3,4,5

C
and 6
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works
24.1 Loss and/or expense caused by
matters affecting the regular progress of
the Works
24.2 Access to Contractor's books and
documents
24.3 Matters materially affecting the
regular progress ofthe Works
24.6 Loss and/or expense to be included
in certificate
The following are the matters referred to in Clause 24.1:
24.3(j) compliance with a written instruction issued by the
Architect in connection with disputes with neighbouring
AI property owners provided always that the same is not caused
by negligence, omission, default and/or breach of contract by
the Contractor and/or Nominated Sub-Contractors
24.3(k) by reason of the execution of work for which a
Provisional Quantity is included in the Contract Bills which in
the opinion of the Architect is not a reasonably accurate
forecast of the quantity of work required.
24.3(l) failure of the Employer to give in due time entry to or
exist from the site or any part through or over any land, by way
of passage adjoining or connected to the Site and in the
C possession or control of the Employer.
24.3(m) suspension by the Contractor of his obligation under
Clause 30.7 and 30.8
24.3(n) suspension of the whole or part of the Works by order of
an Appropriate Authority provided always that the same is due
to negligence or omission on the part of the Employer, Architect
or Consultants.
 24. 0 Loss And/Or Expense Caused By Matters Affecting
The Regular Progress Of The Works
24.1 Loss and/or expense caused by
matters affecting the regular progress of
the Works

24.2 Access to Contractor's books and

documents

24.3 Matters materially affecting the

regular progress ofthe Works
24.4 Loss and/or expense to be included
in certificate
Subject to the Contractor complying with Clause 24.1, the
Architect or Quantity Surveyor shall ascertain the amount of
such loss and/or expense. Any amount so ascertained from
time to time for such loss and/or expense shall be added to the
Contract Sum, and if an Interim Certificate is issued after the
date of ascertainment, such amount shall be included in the
certificate