FACULTY OF BUILT ENVIRONMENT (FOBE)

BTQS3024 CONTRACT MANAGEMENT TUTORIAL 4

WEEK 4 (2020)

Please answer the following question based on the information from the lecture notes, reference
books or journals.

1. Explain the different between the termination for breach and termination of employment.

Answer:
Termination for breach
Under common law, no intention to performing further, bring contract to an end.
Termination of employment
The Contractor’s employment is terminated, contract still exist, follow procedure
laid down in conditions, appointment new contractor to continue with the works.

2. By Clause 3.5 of PAM Contract 2018 requires the Contractor to prepare and submit a
Work Programme prior to commencement of the Works.
Based on the above, briefly analysis the conditions of the Work Programme.

Answer:
• The Contractor shall provide the works programme within 21 days of the Letter of
Acceptance , in 6 copes to the Architect.
• Not forming part of contract documents.
• Revised the works programme as and when commented by the Architect.
• Basis for the assessment of extension of time, delay and disturbance of works.

3. Cekap Construction Sdn Bhd has substantially suspends the carrying out the Works with
the reason due his poor financial situation. Most the workers remove from site with the
consent of the Architect. Based on the above scenario, briefly discuss the implication
by refer to PAM Contract 2018.

Answer:
By clause 25.1 (b), if without reasonable cause, the Contractor wholly or substantially
suspends the carrying of the Works, the Employer can serve notice to determinate
Cekap Construction’s employment.
The Notice of Determination can issue after the Architect / the Employer has issued the
notice of default.
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 FACULTY OF BUILT ENVIRONMENT (FOBE)

BTQS3024 CONTRACT MANAGEMENT

TUTORIAL 4
WEEK 4 (2020)

4. Infras Sdn Bhd was the main contractor for laying water pipe from Kuantan to Temerloh.
In the latest site inspection carried by the S.O., found out some defective works in the
inspection chamber. Infras Sdn Bhd refused and neglected to remove the defective
work even though with the issuance of the S.O. instruction, Explain the above situation
based on PWD 203A 2010.

Answer :

Infras Sdn Bhd is in breach of the Contractor’s obligation under Clause 5.1 on comply
with instructions. His neglect has materially affected the work. His employment can be
determinate by revoke clause 511(a)(vi). The Government can employ 3 rd party to carry
out the instruction under clause 5.3.

5. Poly Development and ABC Construction enter into a construction contract based on
CIDB Form of Contract 2000. Due the poor sale response of the property, Poly
Development has not paid ABC Construction for 6 months. Poly also interfere in the
issuance of interim certificate.
Briefly explain the Contractor’s right under this situation.

Answer:

By clause 45.1, Poly Development is in breach of the Employer’s obligation. ABC

Construction can serve a notice specifying Poly Development’s default. If Poly
Development continues with the default within 10 days upon the expiry of 14 days of the
notice of determination, ABC Construction can determinate his own employment.

6. Under IEM CE 2011 Form of Contract, Option module C stated “termination without
default” by the Employer without give any reason.
Express your point of view on the above provision.

Answer:

From my point of view, this is not a fair provision to the Contractor. The Employer can
take advantage of this provision to terminate the Contractor’s employment at his
discretion.
If this provision is not strike off, the Contractor will price higher in order to cover his risks
for termination without default. The unreasonable termination might lead to dispute
between the parties.
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