Agreement And Conditions Of PAM Contract 2018 (With Quantities) Al par“This page i deliberately left blank.‘Table of Contents Articles OF Agreement Preliminary Recitals + Date oF agreement + Panis to agrooment and their addresses + The nature ofthe works and the location +The drawings and bills of quantities Actcles Article| Conteactor's Obligations Article 2 Content Sum Article 3 Architect, Aniole 4 Engincer Anicle S Quantity Surveyor Anite 6 Specialist Consultant Asticle7 Definitions Article 8 Meanings Attestatfon/Signatories Of The Parties ‘The Conditions Of Contract Clause 10 Contractor's Obligations 1 Completion of Works in accordance with Contruet Documents 12 Temporary work and construction method. 13 Contractor's design and responsibilities 1a Discrepancy or divergence between documents 20 Architects Instruetions AP) 2 Contractor to comply with Al 22 Al 23 Provisions empowering instructions 2a Failure of Contractor to comply with AT 30 Contract Documents, Programme And As-built Drawings a Contract Documents 32 Custody of tender documents 33 Copies of documents 34 Further drawings or details 35 ‘Works Programme 36 Progratnme not part of Contract 37 Architect's acceptance of programme 38 ‘Availability of documents 39 Limitation of use of documents 3.10 ‘As-built Drawings and operation and maintenance manuals 40 Statutory Obligations, Notices, Fees And Charges 41 Statutory requirements 42 Inconsistencies with statutory requirements PAM Contsact 2018 (With Quantities) Page @‘Table of Contents (Cont'd) The Conditions Of Contract (Cont'd) Clause 43 44 50 Su 60 6 62 63 64 65 66 67 68 100 lo 102 110 Wd 2 u3 a ls U6 ua us. 9 120 a 2 130 iB 140 lat 142 143 laa 180 15 152 153 134 Conforming o statutory obligations Fees, levies and charges Levels And Setting Out Of The Works Setting out Materials, Goods And Workmanship To Conform To Deseription, Testing And Inspection Standards of works, materials, goods and workmanship Provision of vouchers Inspection and testing Contractor's obligation not relieved ‘Work not in accordance with the Contract No compensation for time and cost Failore of Conteactor to comply Warranties in respect of materials and goods Royalties And Intellectual Property Rights Indemnity to Employer Contractor’ liability to pay Government royalties Site Agent Site Ageat Instructions to Site Agent Exclusion of Person employed on the Works Access To The Works ‘Access tothe Works Site Statt Duty of Site Stat Directions given by Site StatT Definition of Variation No Variations required by Architect shall vitate Contract Issue of Variations ater Practical Completion Alon P.C. Sums and Provisional Sums ‘Valuation of Variations and Provisional Sums Valuation rules Additional expense caused by Variation ‘Access to Contractor's books and documents Variations and additional expenses added to Cont Contract Bills “Measurement of building works Correction af errors or omissions Contract Sum Contract Sum not co be adjusted or altered Materials And Goods “Materials and goods not vo be removed “Materials and goods included in certificates Responsibility for materials and goods Warranty of title of goods and materials Practical Completion Aud Defects Liability Practical Completion Cerificate of Practical Completion Contractor’ failure to eownply with undertaking Schedule of Detects PAM Contract 2018 (With Quantities) Page w‘Table of Contents (Cont'd) ‘The Conditions Of Contract (Cont'd) Clause Iss 156 160 16 162 163 110 mw 172 3 180 181 182 183 188 190 191 192 193 194 195 20. 20.1 20.42 20.43 20.44 20.8 208.1 doB2 2083 20.34 20.85 20.C 20.0.1 20.62 203 20c4 2005 210 211 212 213 21a 20 2241 222 23 23.0 23.1 232 Instruction to make good Defeets Cerificate of Making Good Defects Partial Possession By Employer Possession of Occupied Part with consent Possession of Occupied Part without consent Contactor to remove equipment Assignment And Sub-Contracting ‘Assignment by Employer Assignment by Contractor No sub-contracting Injury To Person Or Loss And/Or Damage Of Property And Indemnity To Employer ‘Contractors indemnity agains! injury or death Contractors indemnity against loss and/or damage CContactor’s indemnity agnins claims by workmen Indemnities not to be defeated Insurance Against Injury To Person And Loss And/Or Damage Of Property Contractor to insure agains injury to Person and loss and/or damage of property Employee's social security scheme for local workmen Insurance for local workmen not subject to SOCSO Workmen's compensation insurance for foreign workers Placing of insurance with licensed insurance companies Insurance Of New Buildings/Works ~ By The Contractor Contractor's risks - new buildings! works Additional risks to be covered under the insurance Placing of insurance wih licensed insurance companies Application of insurance claim proceeds Insurance Of New Buildings/Works ~ By The Employer Insurance by Employer ‘Additional risks required by the Contractor Maintenance of policy Failure of Employer to insure Application of insurance claim proceeds Insurance Of Existing Building Or Extension ~ By The Employer Employers risks - existing building or extension Additional risks required by the Contractor ‘Maintenance of insurance by Employer Failuee of Employer to insure Application of insurance claim proceeds ymmencement, Postponement And Date For Completion ment and Completion Sectional Commencement Dates Sestional Completion Dates Postponement or suspension ofthe Works Damages For Non-Completio Liquidated Damages and Certifeate of Non-Completion ‘Agreed Liquidated Damages amount Centifcate of Non-Completion revoked by subsequent Certificate of Extension of Time Extension OF Time Submission of notice and particulars for extension of ime Delay by Nominated Sub-Contractor PAM Contact 2018 (With Quantities) Page «iy‘Table of Contents (Cont'd) Page Clause 23 Insuficieat information 28 ana Certificate of Extension of Time 24 nas Other consideration for giving extension of time 24 236 Contactor to prevent delay 24 Ba "Notifeation to Nominated Sub-Contractons 4 238 Relevant Events 24-26 23.9 Extension of time after the issuance of Cetificate of Non-Completion 26 23.10 Architects review of extension of time after Practical Completion 26 240 Loss AndiOr Expense Caused By Matters Affecting The Regular Progress OF The Works 26 24.1 {Loss and/or expense causod by mtters affecting the regular progress ofthe Works 26 242 ‘Access to Contractor's books and documents 26 283, Matters materially affecting the regular progress of the Works 2 244 Loss and/or expense to be included in certificate 28 250 Determination OF Contractor's Employment By Employer 28 25.1 Defaults by Contractor 28 232 Procodate for determination 2s 253 Contractor's insolvency 28 254 Rights and duties of Employer and Contractor 28.29 255 Records of Works 29 256 Final Account upon determination 29 28.7 Remedy limited to damages only 29 258 Employer's rights and remedies not prejudiced 30 260 Determination Of Own Employment By Contractor 30 26.1 Defaults by Employer 30 262 Procedure for determination 30 263 Employer's insolvency 31 264 Rights and duties of Contractor and Employer 31 265 Records of Works 31 26.6 Settlement of accounts 31 26.7 Contractor's rights and remedies not prejudiced 31 210 ‘Nominated Sub-Contractors 32 214 .C. Suns and Provisional Sums ~ Nomsinated Sub-Conteactors 32 212 Nomination of sub-contractor 32.33 213 Objection to nomination of sub-contractor 3 214 Action following objection of Nominated Sub-Contractor u 215 Payment by Contractor to Nominated Sub-Conteactors 33 216 Failure of Contractor to pay Nominated Sub-Contractors 3 217 Final payment to Nominated Sub-Contractors 3 28 Determination ofthe Nominated Sub-Conteactor's employment 3 29 CContrator's responsibilty for Nominated Sub-Contraetors 3 21.10 ployer no privity of Canteact with Nominated Sub-Contractors 4 27 Re-nomination of sub-contractor due to determination by the Contractor ey m2 Re-nomination of sub-contractor due to determination by the Nominated Sub-Contractor 4 2013 Contractor to recover additional expenses from Nominated Sub-Contractor Mu zn Contractor permitted to tender for P.C. Sums 34 280 ‘Nominated Suppliers 28.1 P.C, Sums and Provisional Sums ~ Nominated Supplies 282 Nominated Suppliers and their obligations 283 ‘Objection to nomination of suppliers 2B Action following objection of suppliers 285, Value of materials and goods supplied by Nominated Suppliers 35 286 Payment to Nominated Suppliers 35 287 ‘Contractor's Fablity for Nominated Suppliers 35 288 [Employer no privity of Contract with Nominated Suppliers a5 PAM Contac 2018 (With Quantities) w‘The Conditions Of Conteaet (Cont'd) Clause 290 20.1 300 30.1 302 303 304 305 306 307 308 309 30.10 301 30.12 30.13, 30.14 30.15 30.16 3017 31.0 31 312 313 314 20 321 322 330 331 340 34d a2 35.0 351 352, 353 360 36.1 362 363 364 310 32 372 313 ya 315 316 307 38.0 381 382, Works By Craftsmen, Tradesmen Or Other Contractors Employed Or Engaged By Employer ‘Works by Employer's craftsmen Certificates And Payment Payment application and issue of Architect's eertifcate Amount due in Architect's Errors in payment certifeate Set-off by Employer Retention Fund Rules rogarding Retention Fund Suspension of Works for non-payment Compulsory suspension of Works Cessation insurance resulting from suspension ofthe Works Final Account ems in Final Account Conelusiveness of the Final Account Issuance of Penultimate Certifieate Issue of Final Certificate Final Centificate al Cetificate not conclusive Interest ‘Outbreak OF Hostiities Hostilities - determination by Employer or Contractor Notices of determination Al rogarding protective work Payment resulting from determination War Damage Procedures following war damage Definition of war damege Antiquities [Antiquities property of Employer Mediation Mediation under PAM rules Mediation shall not prejudice the parties" rights to adjudication or arbitration Expert Determination Disputes on all matters Expert determination under PAM Rules [Expett determination shall not prejudice the parties” rights to adjudication or arbitration Adjudicati Set-off disputes referred to adjudication Notice to refer to adjudication ‘Adjudication Rules Decision ofthe adjudicator Arbitration Disputes referred to arbitration Procedures for appointnent of atbteator Arbitration Act and Rules Powers of arbitrator Consolidation of arbitration proceedings ‘Commencement of arbitration proceeding Arbtratar's ayvard tobe final and binding on parties Notice Notice Notice deem served PAM Conteact 2018 (With Quantities) Page »Tab ‘The Conditions Of Contract (Cont'd) Clause 383 Proof of Notice 384 ‘Weitten communication 39.0 Performance Bond 301 Submission of Performance Bond 392, Form ofthe Performance Bond 393 Validity ofthe Performance Bond 304 Failute to extend the validity 39.5 Payments ftom the Performance Bond 396 Retin of Performance Bond 40.0 Governing Law 40.1 Governing Law Appendix PAM Controct 2018 (With Quanitis) Contents (Cont'd) Page wiArticles Of Agreement This Agreement ismade.on te between of (or whose registered offce or business addres is situated at) and of (or whose registered office or business address i situated a) Whereas The Employers desirous of (hereinafter called ‘the Works’) at PAM CONTRACT 2018 (WITH QUANTITIES) day of os 20 (hereinafter called “the Employer’) (Gercinfter called “the Contacto’). and has caused drawings and Contract Bills showing and describing the work to be done to be prepated by his Architect and Consultant. ‘And Whereas the Contractor has supplied the Employer witha flly priced copy ofthe said Contract Bills, ‘And Whereas the said drawings numbered inclusive (hereinafter refered to as “the Contract Drawings") and the Contract Bills have been signed by or on behalf of the partes hereto. (9 Brief cdesrition ofthe Works PAM Contract 2018 (With Quantities)[Now its hereby agreed as follow Article 1 For the consideration hereinafter mentioned the Contractor will upon anc subject to the ‘Contract carry out and complete the Works shown upon and described by of tefered t0 in the Contract. Article2 ‘The Employer will pay the Contractor the sum of Ringgit Malaysia aM ) (hereinafter referred to as “the Contract Sum’) or such other sum as shall become payable herounder atthe times and in the manner specified inthe Contact. Article 3 ‘The tem the Architet” in the Contract shall mean of ‘rin the event of such Person ceasing to be the Architeot forthe purpose of the Contact, such other Person as the Employer shall ppoint within twenty eight (28) Days thereon. No Architect so appointed shall be entived to disregard or overrule sny certificate or ‘pinion or decision or approval or instruction given by the prveding Architect. Articles “The term ‘the Engineor in the Contact shall mean (6) Structural & Civil Engineer of (©) Mechanical & Electrical Engineer: of, PAM Contin 2018 (With Quanttis) Contractor's Obtigations Contract Sum Architect Engineercr in the event of such Person ceasing 1 be the Engineer forthe purpose of the Contrat, ‘such other Person asthe Employer shall appoint within twenty eight (28) Days therefor. “The Engineer shall perform the duties expected of his profession, and the Architect may from time to time delegate such duties and authority ofthe Architect to the Engineer as the Architect deems fit Articles “The term ‘the Quantity Surveyor" in the Contract shall mean Quantity Surveyor of. ‘or inthe event of such Person ceasing to be the Quantity Surveyor forthe purpose of the ‘Contract, such other Person us the Employer shall appoint within twenty eight (28) Days thereffom, The Quantity Surveyor shall perform the duties expected of his profesion, and the Architect may from time to time defegate such duties and authority of the Architet to the Quantity Surveyor as the Architect deems fit Article 6 ‘The term “the Specialist Consultant” in the Contract shall mes: Specialist Consultant @ or. 0). of © of. or in the event of such Person ceasing to be the Specialist Consultant forthe purpose of the Contract, such other Person as the Employer shall appoint within twenty eight (28) Days thereffom. The Specialist Consultant shall perform the duties expected of his profession, and the Arehiteet may from time fo time delegate such duties and authority ofthe Architect to the Specialist Consultant asthe Architect deems ft ‘PAM Contract 2018 (With Quantities)Article? ln the Contract Documents as hereafter define, the following words and expressions shal have the meanings hereby assigned to them, except where the context otherwise requires: (@) Appendix means the Appendix to the Conditions ofthe Contact; (b) Appropriate Authority means any statntory authority having jurisdiction over the Works: (©) Architect means the Person named in Article 3 and shall be a Professional Architect or any other form of practice registered under the Architects Act 1967 snd approved by the Board of Arebitects, Malaysia; (@)__Architec’s Instruction or AI ~as described in Clase 2.2; (©) As-built Drawings means as-built drawings for works designed (including altemative design) by the Contractor and/or Nominated Sub-Contractor and any other as-built drawings required to be provided as specified in the Contract Documents; Certificate of Extension of Time means the cextifeate issued under Clause 23.4; (©) Centiticate of Making Good Defects means the certificate issued under Clause 3.6; ©) Certificate of Non-Completion means the eetifiate issued under Clause 22.1; (Certificate of Partial Completion means the certificate issued under Clause 16.15 @ Certificate of Practical Completion means the cetificate issued under Clause 152; (©) Certificate of Sectional Completion means the cetifieate issued under Clause 213; (Clause means the clauses in the Conditions ofthe Contaet; (=) Completion Date means the datos) for completion of the Works stated in the Appendix under Classes 21.1 and 21.3 or the last extended date granted under Clause 23.4, oo) ms means the Conditions of the Contret; (©) Confirmation of Architect’ tustruetion or CAI ~ as described in Clause 2.2; () Consultant means the Engineer, Quantity Surveyor and/or Spevalit Consultant as appropriate; (@) Contract or Contract Docu (the Leter of Awards (il) the Aticles of Agreement; Gi) the Conditions of Contract; Gv) the Contract Drawings; (¥) the Contract Bills; and (i) other documents incorporated in the Contract Documents, unless expressly stated to be excluced therefrom ns comprise the following documents: (9 Contract Btls comprise the following docurnens (as may be applicable) Instructions to Tenderers; i) Conditions of Tendering; i) Form of Tender, Gv). Preliminaries; (0) Preambles and Specification; (2). Bills of Quantities; and (i) any other documents specifically mentioned in any of the above documents PAM Contact 2018 (With Quantities) Definitions0 © » oy Co) ” @ (ea) @) () (ea) (ae) a9 (og) (ah) (ai) a) Contract Sum means the sum stated in Atile 2; ‘Contractor means the party named inthe Articles of Agreement and includes the Contractors legal successors or personal representatives or any Person to whom the rights and obligations of the Contractor have been transferred with the agreement ofthe Employer: Contractor's All Risks Insurance (‘CAR Insurance”) means an insurance policy| ‘which provides cover against any physical loss or damage to work executed and materials and goods under a standard CAR Insurance policy. The minimum insurance risks are spocified| under Clauses 19.0, 20.A or 20.B or 20.C, aud the insorance shall have the appropriate endorsements. Any addtional insurance risks fn addition to those stated in these Conditions that are requited tobe covered under the CAR Insurance shall be sated in the Contract Bills; Date of Commencement means the date(s) fixed and stated in the Appendix under Clauses 21.1 and 21.25 ay means calendar day including the weekly day of rest but excluding gazetted ‘holidays in the locaton where the Works i eartied out, Defeets means defects, shrinkages or other fanlts due to materials or workmanship not in accordance with the Contract and Nominated Sub-Contract and/or due to ay faulty design Gf any) undertaken by the Contractor and Nominated Sub- Contractor; Defects 154; ibility Period moans the period stated in the Appendix under Clause Employer means the party named in the Articles of Agreement and includes the Employer's legal successors or personal representatives or any Person to whom the rights and obligations of the Employer have been transfered with the agreement ofthe Contractor; Engineer means the Person named in Article 4 and shall be a Professional Engineer or any other form of practice registered under the Registration of Engineers Act 1967 and approved by the Board of Fngincers, Malaysia; Final Account means the documents showing the adjustment ofthe Contract Sum ‘sued under Clause 30.105, Final Certificate means the final certificate issued by the Architect under Clauses 30.14 and 30.15; Force Majeure means any circumstances beyond the control of the Contractor caused by terrorist acis, governmental or regulatory action, epidemies and natura dlisasters; Interim Certificates means the progress payment certfiete issued by the Achitsct under Clause 30.1; Letter of Award means the letter of acceptance ofthe Contractor's tender issued by oron behalf ofthe Employer; Lamp Sum Contract means a fixed price Contract and is not subject to re rmeasureinent of recalculation except for Provisional Quantities and Variations ‘which shal be valued under Clause 11.0; Month means calendar mont Nominated Sub-Contract means the contract entered into between the Main Contrator and the Nominated SubContractor pursuant to nomination by the Architect under Clause 27.2; Nominated Sub-Contraetor means a sub-contractor nominated by the Architect under Clause 27.1; PAM Contract 2018 (With Quanies)Gk) (ab (om) () (0) () () @ (as) (a) ax) @) (ow) 9) oy) @ (ba) (ob) (be) (a) Nominated Supplier means a supplier nominated by the Architect under Clause 28. tract 2018 means the form oF contract as publishes! by Pertubuhan Akitek Malaysia where the sub-contractor is nominated under the PAM Contact 2018; Penultimate Certificate means the payment centfcate issued by the Architect for the release of monies to Nominated Sub-Contractors andior Nominated Suppliers under Clause 30.13; Performance Bond means the bond required to be provided by the Contractor as a secuity forthe due performance of the contrat under Clause 39.1; Period of Honouring Certificates means the period for honouring certiticates stated in the Appendix under Clause 30.15, Person means an individual, sole proprietorship, firm (partnership) or body corporate; Practical Completion or Practically Completed means the state of completion described in Clause 15.1 Prime Cost Sums (*P.C, Sums") means the sums provided in the conteet for ‘works of services to be executed by Nominated Sub-Contractor of for materials ‘and goods to be supplied by Nominated Supplier Provistonal or Provisional Quantity means the estimated quantities of work provided in the Contract Bills for work to be executed or for the supply of any ‘materials und goods which cannot be determined or detailed tthe times, Provisional Sums means the sums provided in the contract andor the Nominated Sub-Contseet for work tobe executed or forthe supply of any materials and goods hich eannot be foreseen, determined or detiled atthe tines Quantity Surveyor means the Person named in Antcle 5 and shall be a Registered Quantity Surveyor or any other form of practice registered under the Quanity Surveyors Act 1967 and approved by the Board of Quantity Surveyors, Malaysia; Relevant Event means any one of the events for extension of time set out Clause 23.8; Retention Fund mcans the sum retained in accordance with Clause 30.5; Service Provider means any company o¢ body authorised to provide water, clectrcity, telecommunication, sewerage and other related services, Site means the land andl other places on, in, under, over oF through which the ‘Works are to be executed and is provide! by the Employer for the purposes of the Contract including other land and places obtained by the Contractor and accepted by the Employer as forming part ofthe Site; Site Agent means the person appointed under Clause 8.1 Site Staff means the person sppointed under Clause 10, ‘Specialist Consultant means the Person named in Article 6 and such Person shall be a Specialist Consultant appointed by the Employer for « designated scope of professional works ‘Variation means changes made to the Works as defined under Clause 11.15 ‘Week means period of seven (7) consecutive days PAM Contact 2018 (With Quaites(be) Works means the works described inthe Articles of Agreement and refered to in the Contract Documents and includes any changes made 0 these works in ‘ceordance with the Contract and (Works Programme means the works programme described in the Contract Daeuinents and in Clause 3.5. Article 8 In the interpretation of the Contact, unless the context requires otherwise, the following shall apply: (2) Gender - words oF one gender inchide the other gender, and words denoting natural persons include corporations and firms and all such’ wonds are to be construed iterchangeably in that manner; (&) Headings and Marginal Notes - the headings nd mayginal notes inthe Conditions are not to be taken into consideration in the interpretation or construction of the Conditions or ofthe Contact, (©) Reference to legislation - a reference to any Acts is deemed to include references foamy subsequent amendments, consolidation or replacement ofthe Acts; (@) Singular and Plural - words importing the singular also include the plural and vice versa where the context requires; and (©) Where any word or phrase is given a defined meaning, any other grammatical form ‘ofthat word or pase has a coresponding meaning PAM Contact 2018 (With Quanties) MeaningsIN WITNESS WHEREOF * The hand of the Employer has been hereunto set the cay and year )Signature of Employes. st above written i the presence of ) Name ) JNRIC No. Signatur of Witness Name: NRIC No, * The Common Seal of. ‘was hereunto axed inthe presence of Signature of Director. Signature of Ditector Seen Name os Name NRICNo, os NRIC No, IN WITNESS WHEREOR “The hand ofthe Contractor has been hereunto set the day and year Signature of Contractor fist above writen inthe presence of ) ) Name d JNRIC No. Signature of Witness. Name. NRICNo, * The Common Seal of. vas hereunto affixed inthe presence of ‘Signature of Diretor: ‘Signature of Ditectr/Secretary®, Name: Name NRIC No, NRICNo. Delete as appropriae Phe aing of he Cnn Sea tobe wiesessdezcordance withthe Memorandum & 4 tikes of Assan of the Company PAM Contact 2018 (With Quanties) 8Completion of Works in accordance with Contract Documents Temporary work ‘and construetio method Contractor's design and responsibilities Discrepaney or divergence between ‘documents Contractor to comply with AL Al Instructions lure of Contractor to comply with AL Contract Documents PAM Contact 2018 (With Quantities) 20 2a 22 23 24 30 a The Conditions Of Contract Contractor's Obligation ‘The Contractor shall upon and subject to these Conditions extry out snd complete the ‘Works in accordance with the Contrict Documents and in compliance therewith provide ‘materials, goods and standards of workmanship ofthe quality and standard described in the Contract Documents and/or requted by the Arehitect in accordance with the provisions of the Contact, Unless designed by the Architect or Consultant, the Contractor shal be fully responsible for the adequacy, stability an safety oF ll temporary works und of all methods of construetion ‘ofthe Works, itespectve of any approval by the Architect or Consultant I the Contractor proposes any altemative design to that specified in the Wotks or if the Contract leaves any matter of desiga, specifieation or choice of materials, goods and ‘workmanship to the Contractor, the Contractor shall ensure that such works ate fit for its purpose. The copyright of the Contractor's design and alternative design belongs © the Contractor, but the Employer shall be entitled to use the design and altemative design for the completion, maintenance, repair and future extension of the Werks. The acceptance by the Architeet or Consultant of the Contractor’s design and altemative design shall not relieve the Contractor of his responsibilities der the Contract, ‘The Contactor shall use the Contract Documents and any other subsequent documents issued by the Architect to plan the Works prior execution, If duting the said planning and subsequent execution of the Works, he Contractor finds any discrepancy in or divergence hetween any of the Contraet Documents and any subsequent documents ised by the Architect, he shall give to the Architect a writen notice in sufficient time before the fommencement of construction of the affected works, specifying the discrepancy or divergence to enable the Architect to issue written instructions within a period which would not materially delay the progress of the affected works, having regard to the Completion Date. Such diserepaney of divergence shall not vtiate the Contact. ‘Architect's Instructions CAP) “The Contractor shall subjet to Clauses 2.2 and 2.3 forthwith comply with all instructions issued to him by the Architect in topard to any matter in respect of which the Architect is ‘expressly empowered by these Conditions f issue instructions. All instractions issued by the Architect shall be in writing expressly entitled “Architect's Instration” CAP), All other forms of written instructions ineluding drawings issued by the Architect shall be an AL 22(a) upon writen confirmation from the Contractor entitled “Confirmation of Architet's Instruction” (CAP); or 2.2(b) upon subsequent confirmation of the writen instructions by the Atehiect with anAl Upon receipt of a writen insrction from the Architect, the Contractor may request the [Architect specify in writing which provision ofthese Conditions empowers the issuance ‘of the said instruction and the Architect shall forthwith comply with such a request Ifthe Contractor thereafter complies with the stid instvction without invoking any dispute resolution procedure under the Contract to establish the Architect's power in that regard, the instruction shall be deemed to have been duly given under the specified provision If the time of compliance [which shall not be less than seven (7) Days from reocipt of the Al is stated by the Architect in the AL and the Contactor does not comply therewith then the Employer may, without prejudice 10 any other rights and remedies which he may possess under the Contact, employ and pay other Person to execute any work which may be necessary to give effect to such instruction. The cost of employing other Person and any ditional cost in this connection shall be sot-ofTby the Exmployer under Clause 30.4 Contract Documents, Programme And As-built Drawings “The Contract Documents are tobe read as mutually explanatory of one anothe, Inthe event of any conflict or inconsistencies between any ofthe Contract Document, the priority in the interpretation af such documents shall be in the following descending order:Custody of tender documents Copies of documents Burther drawings oF details Works Programme Programme not part of Contraet Architect's ‘acceptance of programme Availability of ‘documents Limitation of use of documents 32 33 34 35 36 37 38 PAM Conte 2018 (With Quantities) 3Af@) the Letter of Aware; 3.1(6) the Amicles of Agreement; 3.1) the Consitions of Contract; 3.1(@) the Contaet Drawings: 3(6) the Contract Bills and 3.1(9 other documents incorporated in the Contract Documents, unless expressly stated to be excluded in any ofthe Contract Document ‘The original tender documents shall remain in the eustody of the Architect or Quantity Surveyor 80 28 £0 be available at all reasonable times for inspection by the Employer and! Contractor, Within fourteen (14) Days after the award of the Conteaet or on any date after the award as agreed between the Architect and the Contactor, the Architect or Quantity without charge to the Contractor provide hitn with 3.32) wo (2) copies of the Contract Drawings; and 3.306) v0 (2) copies ofthe unpriced Contact Bills, Within fourteen (14) Days after the execution of the Contact, the Architect or Quantity Surveyor shal also without charge to the Contractor provide himn with ane (1) signed copy ‘of the Contract Doeusents, When necessary, the Architect shall without charge tothe Contractor furnish him with two 2) copies of father drawings, detail, levels and any other information as are reasonably necessary either to explain and amplify the Contract Drawings or to enable the Contractor ‘o complete the Works in sccondance with these Conditions, Ifthe Contizetor requires any further drawings, details, levels and any other information, he shall specifically apply in \srting to the Architect for these items in sufficient time before the commencement of construction of the alfected works to enable the Architect to issue instrictions within a period which would not materially delay the progress ofthe affected works having, regard to the Completion Date Within twenty one (21) Days from receipt of the Letter of Awa (or within such longer Period as may be agrocd in writing by the Archivee), the Contractor shall provide to the Architet for his information, six (6) copies of the Works Programme (unless higher umber is state in the Contract Documents) showing the onder in which he proposes fo carry out the Works. The Works Programune shall comply with any requirements specified in the Contract Documents. Ifthe Works or any patt ofthe Works is delayed for whatever reason, the Architect may instruct the Contractor to revise the Works Programme. The Contractor without charge to the Empfoyer shall provide the Architect from time to time ‘with similar number of copies of any revised Waris Programme, ‘The Works Programme shall not constitute part of the Contract, whether physically Incorporated or not ito the Contract Docutents The seceptance by the Architect of the Works Programme shall not relieve the Contractor ‘of is obligations, duties or responsibilities under the Contact, The Works Programme may be used by the Architect to monitor progress and the Architect is entitled to rely on the Works Programme as a basis for the assessinent of extension of time and the effect of the delay andor disturbances tothe progress ofthe Works, The Contractor shall keep a copy ofthe Contract Drawings and the unpriced Contract Bills fon the Site t be available to the Architect and Consultant and tir authorised representatives a all reasonable times None of the Contract Documents in Clause 3.1 shall be used by the Contractor for any ‘purpose other dhan the Contact. Except for the purpase of the Contract he pats shall not disclose any ofthe rates and prices inthe Contact Bills to any ther party woAs-built 3.10 Drawings and ‘operation and maintenance ‘manuals 40 Statutory 4a requirements Inconsistencies 42 with statutory requirements Conforming 43 statutory ‘obligations Fees, levies and 44 charges 50 Setting out 51 60 Standards of 6 works, mater goods and Workmanship Provision of 62 vouchers nspeetion and 63 testing PAM Contnet 2018 With Quanties) ‘he Contractor shall sapply and shall cquse any Nominated Sub-Contractor to supply As ‘built Drawings and/or operation and maintenance manuals specified in the Contract Documents and/or Notninated Sub-Contract documents i he manner and within the time specified therein, Where these are not specified, the Contractor shall supply and shall fensuce that the Nominated Sub-Contractor supplies four (4) copies of the above items before the Completion Dat. Statutory Obligations, Notiees, Fees And! Charges “The Contractor shall comply with and submit all notices required by any laws, regulations, bycaws, tems and conditions of any Appropriate Authority and Service Provider in respoct ‘of the execution ofthe Works and all temporary works. Ifthe Contractor finds any inconsistencies between the Contract Documents (including any subsequent documents issued by the Architect) and any laws, regulations, by-laws, tems {and conditions of any Appropriate Authority and Service Provider, he shall immediately Specify the inconsistencies and give to the Architect a writen notice before commencement ‘of construction of the affected works. within seven (7) Days of having given written notice tothe Architect, the Contractor does hot receive any Al in regard tothe matters spocified in Clause 42, he shall proceed with the Wwork to conform to such laws, regulations, by-laws, terms and conditions of any Appropriate Authority and Service Provider. Any changes so necessitated shall be deemed tobe a Variation required by the Architect, “The Contractor shall pay and indemnify the Employer agains any lability in respect of any fees, levies and charges including any penalties which may atise rom the Contractor's non~ compliance with any laws, regulations, by-laws, tems and conditions of any Appropriate ‘Authority and Service Provider in respect of the execution of the Works and all temporary ‘works. Ine Contactor fails t pay, the Employer may pay such amount and such amount together with any additional cost in this connection shall be set-off by the Employer under Clause 3044 Levels And Setting Out OF The Works ‘The Architect shall determine all levels which may be required for the execution of the Works and shall provide the Contractor with drawings and information to enable the Contractor to set out the Works, The Contactor shall at his own cost rectify any errors atising from any inaccurate setting out. With the consent of the Employer, the Arehitect ‘may instruct that such errors need not be rectified subject fo an appropriate deduction tobe setofTby the Employer under Clause 30.4 Materials, Goods And Workmanship To Conform To Description, Testing And Inspection All works, materials, goods and workmanship shall be of the respective quality and Standards described inthe Contract Documents and required by the Arebitect in accordance \with the provisions of the Contact. “The Contractor shall upon the request ofthe Architect, provide him with vouchers o such ‘other evidence to prove thatthe materials and goods comply with Clause 6.1 ‘The Contractor shall provide samples of materials and goods for testing before incomoration into the Works, The Architect may issue an AL requiring the Contractor to ‘open up for inspection any work covered up, oF fo arrange for or carry out any tes on any ‘materials and goods already incorporated in the Works or of any executed work. The cost ff such opening up or testing together with the cost of making good shall be added to the Contre Sum unless: 63(@) the costs proved for inthe Contract Bills; 6.Xb) the inspection or test shows thatthe works, materials and goods were not in ageordance wit the Contract; or 63(@) the inspection or test was in the opinion of the Architect required in ‘consequence of some prior negligence, omission, default andor breach of contract by the Contractor.Contractor's 64 obligation not relieved Work notin 65 accordance with the Contract No compensation 66 for time and eos Failure of 67 Contractor to ‘comply Warranties in 68 eospeet of materials and ‘goods 10 Indemnity to mM Employer Contractor's 72. liability to pay Government 13 royalties 80 Site Agent BL PAM Conenet 2018 (With Quanties) The provisions of Clauses 6.2 andl 6.3 shall not lieve the Contractor of his obligations to ‘exeoute the work an supply materials and goods in accordance with the Contract. If the Architect finds any work, materials, goods or workmanship which is aot in accontance-with the Contac, dhe Architect shall instruct the Contractor in writing 6.5(a) to remove from and not to bring to the Site such materials and goods; 6.5(b) tn demolish and reconstruct such work to comply with the Contact 6.5(6) 10 rely such work as instructed by the Architect with no adjustment to the Contact Sums 6.5(@) to submit a method statement within soven (7) Days from receipt of the writen instruction (or within such period as may be specified by the Architect in the instruction) proposing how such works, materials, goods or workinanship can be rectified. IF the Architect accepts the Contrator’s propos, the Contactor shall earty out the rectification wark with no adjustment to the Contract Sut or altematvely, the Architect may reject the proposal and! issue any other ‘written instruction under this clause; or 6.5(¢) with the consent of the Employer, to leave all or any such works, materials, goods or workmanship in the Works subject to an appropriate set-off by the Employer under Clause 30.4 and the Contractor shall remain liable for the Compliance by the Contractor with a writen instruction issued under Clause 6 5 shall not entitle the Contractor to an extension of time nor compensation for any loss andlor expense that may be incurte. the Contractor fils or refuses to comply witha writen instuction of the Architect issued under Clause 6.5, the Employer may without prejudice to any other rights or remedies whieh he may possess under the Contract, employ and pay other Petson to carry out the subject matte ofthe writen instruction. Al coss incurred including any loss und expense shall be set-off by the Employer under Clause 304, I the Contract requites any manufacturer, sub-contractor or supplier to give a warranty or guarantee in respeet of any proprietary systems, materials ancl goods supplied, the Contractor shall procure such warranties or guarantees and subsnit to the Employer. ‘The provision of such warranties ot guarantees shall in no way relieve or release the Contractor from any liabilities under the Contact. Royalties And Intellectual Property Rights Suijoct to Clause 7.2, all royalties or other sums payable in respect ofthe supply and use in carrying out the Works of any articles, processes, inventions or dtawings shall be deemed to have been included in the Contract Sunn. The Contractor shall indemnify the Employer aginst al claims, proceedings, damages, cots and expenses which may be brought against ‘the Employer orto hich he may be subjected to by reason ofthe Contractor inftingine or being hel to have initinged aay suel intellectual property rights ‘Whee in compliance with a written instruction, the Contractor has informed the Architect in writing that there may be an infringement of intellectual property tights but the Architect. still nsiruts the Contactor in iting to comply, the Contactor shall not be liable for any such inffingement. All royalties, damages or other monies which the Conttacter may be liable to pay for suc inttingemont shall be added tothe Contact Sum Except where otherwise provided for in the Contmet, the Contractor shall pay all Government royalties, levies, rent and al other payments in connection withthe Works, Site Agent The Contractor shall appoint a competent person to be the Site Agent, The Site Agent for the purposes of the Contract shall be deemed tw be the Contactor’s authorised site representative. The Site Agent shall be assisted by such assistants and supervisory staf as necessary to execute the Works efficiently and satistictoily. The Site Agent shall be ‘employed fll time on Site and inthe event chat he has to be temporarily absent feom the Sit, the Contactor shall designate a deputy in his place.Instructions to Site Agent Exclusion of Person employed fam the Works Access to the ‘Works Duty of Site Staff Directions given by Site Staff Variation [No Variations required by ‘Architect shall vitiate Contract 82 83 90 ou 109 101 102 110 2 PAM Contact 2018 (With Qua tie) ‘The Contractor shall ensure thet the Site Agent and such assistants and supervisory sta ate capable of receiving directions or instuctions in English or Bahasa Malaysia. The Site ‘Agent shall be deemed tobe authorised by the Contractor to receive any directions given by the Site Staff or instructions piven by the Architect and any such directions and insirections given shal be deemed to have been given to the Contractor, “The Architect may instruct the Contractor to remove the Site Agent or any Person unde the ‘employment or contol of the Contactor from the Site. The Ateitet shall not exercise this tiseretion unreasonably or vexatiously, On receipt of a writen instruction, the Contractor shall immediately remove and replace such staf or any Person within a reasonable time and Such staff or Person s0 removed, shall not again be employed on the Site, The Contractor Shall not be entitled to any extension of time and additional cost in respect of any instruction given by the Architeot under this clause Access To The Works ‘he Architect, Consultant and their authorised representatives shall at all times bave reasonable access to the Works and tothe factories, workshops or other places where ny ‘construction plant, materials, goods and work are being fabricated, prepared or stored for the Contract. The Contractor shall ensure that all sub-contracts contain provisions entting the Architect Consultant and their authorised representatives to have such access Site Staft The Employer may from time to time appoint such number of Site Staff as the Employer shall deem necessary. The Site Staff shall act as inspectors under the direction of the ‘Architect and the Contractor shall provide reasonable ficlities forthe performance of such ties, ‘Any rections given to the Contractor or his Site Agent by the Site Staff shall be of no tet, unless given in writing in regard to a matter in respect of which the Site Stat have been expressly authorised in waiting by the Architect. Ail such directions involving 2 ‘Variation shall be of no effect, unless confirmed by an Al Variations, Provisional And Prime Cost Sums “The term “Variation” means the alteration or modifiation of the design, quality or quantity of the Works including: L1.1G@) the addition, omission or substitution of any work: 11.10) the alteration ofthe kind of standard of any materials and goods tobe used in the Works; 11.1(6) the removal from the Site of sny work executed or materials and goods brought thereon by the Contractor for the purposes of the Works other than ‘work, materials and goods which are not in accordance withthe Contract; and 11.4@) any changes to the provision inthe Contract with regards to: 11A@G) any limitation of working hours; L1G) working space; 11.1G@if) access to oF usilisation of any specific pat ofthe Site; .1(@\iv) the exccution and completion of the work in any specific order; and H1.1G@(9) the execution of temporary works, but shall exclude any changes intended to rectify any negligence, omission, default and/or breach of contract by the Contractor and such ehanges shall be executed by the Contractor cetirey at his own cost, “The Architect may issue an A ordering @ Variation or sanctioning any Variation made by the Contractor, No Variation ordered by the Architect or subsequently sanctioned by him shall vitate the Contract Pending the valuation of the Variations, the Contractor shall cary fut with due diligence and expedition all Variations so instructed,Issue of ‘Variations after Practical Completion ALonP.C. Sums and Provisional Sums Valuation of Variations and Provisional Sums Valuation rules PAM Contaet 2048 (With Quantities) ua 116 The Architect may issue instructions in writing roquting a Variation at any time before the issuance of the Centfiate of Practical Completion, Thereafter, any AL requiring.a Variation Must be necessitated by obligations or compliance with the requirements of any Appropriate Authority and Service Provider ‘The Architect shall issue AI in regard to the expenditure of P.C, Sums and Provisional Suns inched in the Contract Bills and of P.C, Sums which arse as a result of instructions issued in regard tothe expenditure of Provisional Sums. All Variations shall be measured and valued by the Quantity Surveyor. Upon completion of the Variations, the Contractor shail submit complete details and particulars as required by the Architect and Quantity Surveyor for valuation of Variations. Where any reconing of site information andor site measurements are carried out atthe Site, the Contractor shall provide the Quantity Surveyor with such assistance as may be necessary to earty out the ‘works and the Contractor shall be given the opportunity to be present to take such notes and ‘measurements as he may requite. Ifthe Quantity Surveyor is Of the opinion thet the details ‘and paticulars submitted by the Contractor are insufficient to enable him to catry aut the ‘measurement and valuation, the Quantity Surveyor shall within twenty eight (28) Days fiom receipt of the Contractor's submission, inform him of any deficiency in his submission and may require the Contractor to provide such further details snd paticulars within @ farther twenty eight (28) Days. When the Contractor hes submitted sullcient tals and particulars, the Quantity Surveyor shall measure an value the Vatiatons within thirty days (30) Days or any other extended date as agreed between the Architect and Contacto ‘The valuation of Variations and work executed by the Contractor for which a Provisional (Quantity fs included inthe Contract and the expenditure of Provisional Sims (other than for work for which a tender had been accepted under Clause 27-14) shall be made ia cordance with the fallowing rules 11.6(@) where work's of a similar character to, is executed under similar conditions as, and does not significantly change the quantity of work as set out in the Contract Documents, the rates and prices in the Conttaet Documents shall setermine the valuation; 11.60) where work is of a similar charaeter to work as set out ia the Contract Documents but is not executed under similar eonltions or is exceuted under similar conditions but there is significant change in the quantity of wotk cated out, the rates and prices in the Contract Documents shall be the basis for determining the valuation which shall include a far adjustment in the rates to take into account such difference; 11.60) where work is not of a similar character to work as set out in the Contract Documents, the valuation shall beat fair market rates and prices determined by the Quantity Surveyor, 11.664) where work cannot be properly measured and valued in acconiance with Clause 11.6(0), (6) or (e, the Contactor shall be allowed 11.6603) the daywork rates inthe Contract Documents; or H.6(@i where there are no such daywork rates. in the Contact Documents, atthe actual cost to the Contactor of his material, ditional construction plant and scaffolding, transport and labour for the work concered, plus fflen (15) percent, which percentage shall inelude forthe use of all tools, standing plant, sanding seaffolding, supervision, overheads and profit In either case, vouchers specifying the time spent daily upon the work, the workers’ names, materials, additional constriction plant, scaffolding and transport used shall be signed by the Site Agent and verified by the Site Stal? and shall be delivered io the Architect and! Quantity Surveyor at_weekly intervals withthe fina records detivered not late than fourteen (14) Days after the work has boen completed; 11.646) the rates sand prices inthe Contret Documents shall cletrmine the valuation of items omitted. I omissions substantially vary the conditions under which any remaining items of work are earied out, the prices of such remainiag items shall be valued under Clause L.6(a), (b) or (@); andAdditional a expense caused by Variation Access to us. Contractor's books and documents ‘Variations and ng additional ‘expenses added to Contract Sum 120 Measurement of 12.1 boilding works Correction of 22 omissions 130 Contraet Sum Ba not to be adjusted or altered 40 Materials and 141 ‘goods not o be removed PAM Contact 2008 (With Quanttes) 11.6(2) in respect of Provisional Quantities, the quantities stated in the Contract Documents shall be r-measured by the Quantity Surveyor based on the actual ‘quantities executed within sixty (60) Days after the said works are completed. ‘The rales and prices in the Contract Documents shall determine their valuations, Where « Vatiation has caused or is likely to cause the Contractor to incur additional ‘expenses for which he would not be paid under any provisions in Clause 11.6, the Contractor may make a claim for such néditional expenses provided always that: 11.7(@) the Contractor shall give written notice to the Architect of his intention to claim for such additional expenses together with an initial estimate of his Claim duly supported with all necessary calculations. Such notice must be ‘iven within twenty eight 28) Days ftom the dae ofthe Al or CAI giving rise to his lain. The giving of such written notice shall bea condition precedent 10 any entitlement to additional expenses thatthe Contractor may have under the Contract and 11.700} within twenty eight (28) Days of completing such Variation, the Contractor shall send to the Architeet and Quantity Surveyor complete particlars of his Claim for addtional expenses together with all necessary calculations to substantiate his claims, Ifthe Contractor fils to submit the required particulars ‘within the stated time (or within such longer petiod as may be agreed in ‘writing by dhe Atchitect), it shall be deemed that the Contractor kas waived his Tights to any such ational expenses. “The Contractor shall keep contemporaneous reconds to substantiate all his claims for ‘alitional expenses under Clause 11.7, ond shall submit ll particulars to the Architect and Quintty Surveyor. The Architect and Quantity Surveyor shall have access to all books, documents, reports, papers of records in the possession, custody or control of the ‘Contractor that are material tothe claim and the Contractor shall provide free of charge a copy each 10 the Architect and Quantly Surveyor wien requested. All such documents ‘hall remain available in accordance with this clause until all claims have been resolved ‘The Contactor shall use bis best endeavour to ensure that all such similar documents in the possession, custody or control of sub-contractors andr supplies that are material 10 the claim ave similarly available. [As soon as the Architect ane! Quantity Surveyor have asoertained the stnount of Variations andor ditional expenses claimed by the Contractor under Clause 11.7, the amount 90 fascertined shall be added 4 the Contract Sum. When an Interim Centficate is issued afer the date of ascertainment, such amount shall be included inthe cetificate Contract Bills “The quality and quantity of the work ineluded in the Contract Sum shall be deemed to be those which are set ont in the Contract Bills and unless otherwise expressly stated, shall be prepared in accordance with the principles of the Standard Method of Measurement of Building Works sanctioned by the Royal Institution of Surveyors Malaysia and curently in force, Unless otherwise expressly provided, the contact is a Lump Sum Contract. Any error in description, quantity or omission of items inthe Contract Bills shall not vitiate the Contract ‘and shall be corected by the Architect or Consultant Contract Sum “The Contract Sum shall not be adjusted or altered in any way whatsoever, other than in accordance with the express provisions of the Contract, Any arithmetical emors or any trors in the prices and rates shall be corrected andior rationalised by the Architect or Consultant without any change tothe Contract Sum before the signing ofthe Contact, ‘Materials And Goods ‘Materials and goods delivered tothe Site for incorporation into the permanent works shall not be removed until completion of the Works unless prior consent in writing from the “Architect has been obtained, which consent shall not be unreasonably withheld or delayed,Materials and 42 Where the value of such materials and yoods has in accordance with Clause 30.2 been ‘goods included included in any Inteim Certificate under which the Employer has effected payment, such certificates ‘materials and goods shall become the property ofthe Employer: Responsibility for 143 ‘The Contractor shall be responsible for any loss andlor damage to such materials and goods materials and including materials and goods supplied by Nominated Sub-Contractors and Nominated oods Suppliers Warranty oftite 144 ‘The Contmetor shall be deemed fo have warranted tht fe has tle fee from encumbrances of goods for such materials and goods upon inclusion ofthe value of such materials and goods in any materials applications for payments under Clause 30.1. In the event that the Contractor is found 10 have made a false warranty, any loss suffered by dhe Employer shall be made good by the Conitsctor or shal be set-off under Clase 304 150 Practical Completion And Defects Liability Practical Ist ‘The Works are Practically Completed when: Completion 15.1(@) inthe opinion of the Architect, the Employer ean have fill use of the Works for their intended purposes, notwithstanding that there may be works and defects of a minor nature sil 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 ime specifiod by the Architect; anc 15.106) other requirements expressly stated in the Contract Documents as a pre= requisite for the issuance of the Certfieate of Practical Completion have been complied with Certificate of 152 When the whole of the Works are Practically Completed, the Contractor shall forthsvith Practieat sve written notice to that effect to the Atchitet who shall within fourteen (14) Days do Completion cither one f the following: 152{@) ifthe Architect is ofthe opinion thatthe Works ate not Practically Completed under Clause 15.1, the Architect shall give writen notice to the Contractor ‘with copy extended to the Nominated Sub-Contractors stating the reasons for his opinion ar specifying the works that are incomplete and/or the conditions ‘that have not been complied with; of 15:2(0) if the Atchitect is of the opinion that the Works are Practically Completed under Clause 15.1, the Architect shall issue the Cettiicate of Practical ‘Completion, The date of Practical Completion shal be: 15.20b))__ the date of receipt of the Contractor's written undertaking to ‘make good and to complete works and defers of @ minor nature, ‘where there are such works and defects; or 1S2{by(i) the date of receipt of the Contactors writen notice, where there reo works and defects of minot nt, ‘Te Cerificate of Practical Completion shall be issued to the Contractor with copies extended fo the Employer and Nominated Sub-Contractrs. Upon the issuanee of Cestficate of Practical Completion by the Architect, the Contractor shall forthwith retur Site possession tothe Employer. rctor's 153 ‘Where applicable, the Contactor shall comply with his undertaking 10 attend to the works: failure to comply and defects of » minor nature under Clause 15.1(a) within the specified time. Inthe event with undertaking the Contractor fails to comply with his undertaking, the Einployer may without prejudice to ‘any other rights and remedies which he may possess under the Contract do any one ofthe following: 153(a) grant the Conteactor additional ex-gratia time to be specified by the Architect toenable the Contractor to comply with his sid undertakings 15.3(0) _emplay and pay other Person to excoute any work which may be necessary to give effect to the Contractor's said undertaking, All costs incurred including !any loss anor expense shall be se-a by the Employer under Clause 30-4; or 153{6) accept to leave all or any such works and defects of a minor ature in the ‘Works subject to an appropriate seo under Clause 30.4 PAM Court 2018 (With Quantities) 6Schedule of 154 Defects Instruction to Iss make good Defects Certifieate of 156 Making Good Defects 160 Possession of| 16 ‘Occupied Part with consent PAM Contact 2018 (With Quantes) ‘Any Defects in the Works which appear within the Defects Liability Period shall be Specified by the Architect in a schedule of defeats which be shall deliver to the Contractor hot later than fourteen (14) Days after the expiration of the Defeets 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) atthe Contractor's cost. Ifthe Contractor fails to attend tothe Dofets, the [Employer may, without prejudice to any other tights and remedies which he may possess under the Contract, employ and pay olher Person to rectify the Defects and all costs incurred shall be set-off by the Employer under Clause 30.4. If the Architect with the ‘consent of the Employer, instructs the Cantractor to leave the Defeets inthe Works, then an “appropriate deduction or such Defects not made good by the Contractor shal be set-off by the Employer under Clause 30.4 Notwithstanding Clause 154, the Architect may at any time during the Defeets Liability Period issue an Al requiring any critical Defects which need urgent rectification to be made ‘good within a reasonable time specified by the Architect at the Contrator’s cost. Ifthe ‘Contractor fails to attend to such Defects within the time specified by the Architect, the Employer may employ and pay other Person to retiy such Defects and all costs incurred shal be set-ofTby the Employer under Clause 30.4 ‘Upon completion of micking good all Defects which may have been required t0 be made ‘good under Clause 15.4, the Contractor shall forthwith give written notice to the Architect to that effect. The Architect shall within fourteen (14) Days do either one ofthe following: 15.6(a) ifthe Architect is of the opinion that there is no Defects or the Contractor has ‘made good all Defeets, the Architect shall sue a Certificate of Making Good Defects and the date of making good Defects shal be the date ofreeept of the ‘Conttator’s writien notice, The Certificate of Making Good Defers shall be ‘asued to the Contractor and copies shall be extended to the Employer and Nominated Sub-Contractor; ot 15.6(b) ifthe Architect is ofthe opinion thatthe Defects have not been made good, the “Architect shall give written notice tothe Conttactor with copies to Nominated Sub-Contactors stating the reasons for the non-issuance of the Certificate of ‘Making Good Defects. Partial Possessi By Employer fat any time before Practical Completion of the Works, the Employer wishes to tke possession and occupy any part ofthe Works ("the Occupied Part") and the consent ofthe Contractor (whose consent shall not be unreasonably delayed or withibeld) has been ‘obtained, hen notwithstanding anything expressed or implied elsewhere in the Contact, the Employer may take possession of the Occupied Part and the following shall apply: 16.1(a) within fourteen (14) Days from the date on which the Employer has taken possession of the Occupied Part, the Architect shall issue a Certificate of Partial Completion, The Certificate of Partial Completion shall state the ‘Architect's estimate of the approximate fotal value of the Occupied Part and for all purposes of Clause 16.0, the value so stated shall be deemed to be the total value ofthe Occupied Part 16.1(6) forthe purposes of Clauses 15.4, 15.5 and 16.1(), Practical Completion ofthe ‘Ocoupied Part shall be deemed to have occured and the Defects Liability Period in respoct ofthe Occupied Put shall be decred to ave commenced on the date which the Employer has taken possession; 16.(@) the Liguidated Damages under Clause 22.1 shall be reduce by the ratio ofthe ‘estimated value ofthe Occupied Part to dhe Contract Sum; 16.1(€) upon the issuance of the Certificate of Patial Completion, the Architect shall ‘within fourteen (14) Days issue a certificate to release haf the amount of the Retention Fund in the rato ofthe estimated value ofthe Occupied Part to the Contract Sur. The Contractor shall be entitled to payment within the Period of Honouring Certificates: 16.1(@) whew inthe opinion ofthe Architect all Defects in the Qocupied Part which be ‘may have required to be made good under Clause 154 ot 15.5 have heen made ‘2004, he shall issue a Certificate of Making Good Defects under Clause 15.6 in respect ofthe Occupied Part andPossession of 162 Gceupied Part without consent Contractor to 163 equipment 0 Assign in Employer Assigm Contractor Why 112 No sub 173 ‘contracting Contractor's 18 indemai Contractor's 182 indemnity against loss andor damage Contractor's 183 indemnity against claims by workmen Indemnites not Isa tobe defeated PAM Cont 2018 (With Quanites) '6.1(9 upon the issuance ofthe Centfieate of Making Good Defects ofthe Ovcupied Part, the Architoct shall within fourteen (14) Days issue a certificate for the release of the remaining amount of the Retention Fun in respect of the Occupied Part. The Contractor shall be entitled to payment within the Period of Honouring Ceritiente ‘The Employer may, without prejudice to any other rights and remedics which he may Dossess under the Contract, enter ancl occupy such pat of the Works prior tothe completion of the whole of the Works without the consent of the Contractor under Clause 16,1 provides always that 16.2(2) the completion of the Works has been dolayed and a Certificate of None Completion has been issued by the Architeet under Clause 22.1; and 16.2(b) such entty and occupation of the Occupied Part can be effected without any ‘unreasonable disturbance tothe progress ofthe Contractor's remaining works In that even, the provisions of Clauses 16.1(a) 0 16.1( shall apply If the Employer takes possession of the Occupied Part under Clase 16.1 oF 162, the Contractor shall upon the writen instruction of the Architect remove his site filtes, tuction plant or equipment, materials andl goods from the Occupied Pat, Assignment And Sub-Contraeting Other than assigning his rights, interests or benefits under the Contract to his financial institution, the Employer shall not without the writen consent of the Contractor (euch ‘consent shall not be unreasonably delayed or withheld) assign the same to other parties, Other than assigning any payment duc oto become due under the Contact to is financial institution, the Contactor shall not without the written consent of the Employer (sich consent shall be at the sole discretion of the Employer) assign his rights, interests o benefits under the Contact to othe parties. cept where otherwise provided by the Contact, the Contractor shall not wholly or substantially sub-contract the Works. Where the Contractor sub-contract labour only of craftsmen, skilled or semi-skilled workmen to carryout any portion ofthe Works, this shall not constitute sub-contaeting within the meaning of this clause. Injury To Person Or Loss And/Or Damage Of Property And Indemaity To loyer ‘The Contactor shall be fable for and shall indemnify the Employer against any damage, expense, lability, los, claim or proceedings whatsoever whether arising at common lanw ot by statute in respect of personal injury 1o or death of any person arising out of ot in the course of or caused by the carrying out ofthe Works and provided always thatthe same i «due to any negligence, omission, default and/or breach of contact by the Contactor or of any Porson for whom the Contractaris responsible Tike Contractor shall be liable for and shall indemnify the Btoployer against any damage, expense, lability, loss, claim or proceedings duc 10 loss andior damage of any. ind ‘whatsoever to any property real or personal, cluding the Works and any other propecty of the Employer, in so far as such foss andor damage avises out of or in the couse of or by reason of the execution of the Works and provided always that the same is due 10 any negligence, omission, default andr breach of contact by the Contractor or of any Person for whiom the Contractor is responsible, The Contractor shall be liable for and shall indemnity the Employer agninst any damage, expense, linblity, los, elsim or proceedings whatsoever arising ot of claims by any and every workman employed in and for the execution of the Works and for payment of compensation under of by virtue of the Workmen's Compensation Act 1952 and the Employees’ Socal Seeusity Act 1969, ‘The indemnitis given by the Contractor under Clauses 18.1 to 18.3 shall not be defeated or reduced by reason of any negligence or omission ofthe Employer, Architect, Consultant ot other authorised representatives in failing supervise ot control the Contmctor's site ‘operation oF methods of working or temporary work of to detect or prevent of remedy defective work or to ensure proper performanes of ay obligation of the Contactor uder the Contract.190 Contractor to a insure against injury to Person and loss and/or damage of property Employees’ social 192 security scheme for local workmen Insurance for 193, local workmen not subject to SOcsO, Workmen's 194 ‘compensation insurance for foreign workers PAM Contact 2018 (With Quantities) Insurance Against Injury To Person And Loss AndiOr Damage Of Property Without prejudice (0 his liability to indemnify the Employer under Clause 18.0, the Contractor shall, as a condition precedent to the commencement of any work under the Contact, take out and maintain in the joint names of the Employer, Contractor, sub- ‘contactor and al intrested partes in respect of persona injuries ot death an injury’ or loss andr damage of property real or personal arising out of or in the course of or by reason of the execution of the Works and whether or not such injury, death, loss and/or damage is teaused by negligence, omission, default andlor breach of contract by the Contractor, Employer, sub-contractor and interested pasties and any of their servants and agents. Such insurance poly shall provide cover in respect of third party lability for personal injury or death and damage to property for the amounts stated in the Appendix. If the Contractor having regard to his indenmity tothe Employer under Clause 18.0 desires to increase any of the insurance coverage, he shall do so and allow for any additional cost. The insuranoe policy shall include the following endorsements: 19.1(a) “eros liability” endorsement to provide insurance cover to the Employer and Contractor and any other parties involved in the Works as though they are separately insured for their respeotive rights and interest; 19.1(0) an endorsement to the effeet that the Architect, Consultant and any other professional consultants (as spplicable) and their employees and representatives, Site Staff, employees and representatives ofthe Employer, are ‘deemed 1o be third parties; 19.1(6) _anendorsement for waiver ofall expressed oF implied rights of subrogation or recoveries against the insured; and 19,104) an endorsement for automatic extension or renewal of the insurance up the issuance of the Certificate of Making Good Defets. Without prejudice to his fnbiliy to indemnify che Employer under Clause 18.0, the Contractor shall register oF cause to register al Ical workmen employed on the Works anc ‘who are sabject to registration under the Employees” Social Security Scheme (hereinafter refered (9 as “SOCSO") in accordance with the Employees" Social Security Act 1969 and ‘hall cause all sub-contractors t0 comply with the same provisions. The Contactor shall make payment ofall contsbutions and cause all sub-contractors to make similar payments fiom sime to time when the same ought fo be pai. Without prejudice to his Tiabilty to indemnify the Employer under Clause 180, the Contactor shall, as a condition precedent to the commencement of any work under the ‘Contract, take out and maintain i the joint names ofthe Employer and Contractor and shall ‘cause all sub-contractors to take out and maintain a similar insurance policy for local ‘workmen ivno are not subject fo registration under SOCSO. Such insurance policy sball be tffeted and maintained as necessary to cover al isilties including common law liability in respect of any claim which may arise in the course of the execution of the Works. The insurance policy shall be valid up to the Completion Date and the extended maintenance cover shall be for the Defects Liability Period plus a farther three (3) Months. If the ‘Contractor is unable to complete by the Completion Date or complete making good the Defects within the insured petiod, ho shall ensure thatthe insurance is accordingly extended far the same period of delay. The Contractor shall effect the sid extension of the insurance cover not less than one (1) Month before the expiry ofthe insurance currently in fore. ‘Without prejudice to his liability to indemnify the Employer under Clause 18.0, the Contractor shall, 8 a condition precedent fo the commencement of any work under the ‘Contet, fake out and maintain in the name of the Contractor and shall cause all sub- contractors to take out and maintain a similar insurance policy for all foreign workers temployed on the Works 1s required by the Workmen's Compensation Act 1952 and ‘Workmen's Compensation (Foreign Worker's Compensation Scheme) (Insurance) Order 1998, Such insurance policy shall be effected and maintained as necessary t0 cover all liabilities including common law liability in respect of any claim which may arise inthe ‘course of the execution of the Works, The insurance policy shall be valid up to the Completion Date and the extended maintenance cover shall be for the Defeets Lisbiity Period phis a further three (3) Months, IF due Contractor is unable to complete by the Completion Date or complete making good the Defects within the insured period, he shall censure that the insurance is accordingly extended for the same petiod of delay. The ‘Contractor shal effect the sad extension ofthe insurance cover not less than one (1) Month before the expiry of the insurance eurenty in force.Ios insurance companies “0A Contractor's 20A.1 risks ~new Additional risks -20.A.2 tobecovered under the Placing of 20.03 companies Application of 20.A4 esurance claim proceeds ‘The insurance referred to in Clauses 19.1, 19.2, 19.3 and 19.4 shall he placed with Fioensed insurance companies approved by the Employer, and the Contractor shall deposit with the Employer the policy and the eceipt of premiums paid with copies extended ta the Architect tnd Consultant. Ifthe Contractor makes default in insuring or continuing to insure 23 ‘aforesaid, the Employer may (but isnot obligated to) insure against any risks in expect af which the defant has occurred and the amount of premiuins aad any other cost inuszed or paid by the Employer shall be set-olT by the Employer under Clause 30.4, Insurance OF New Bulldings/ Works ~ By The Contractor Without prejudice © his liability 10 indemnify the Employer under Clause 18,0, the Contractor shal, as a condition precedent to the commencement of any work under the Contract, take out and maintain in the joint names of the Employer, Coniracor, sub- contractors and all interested partes a CAR Insurance policy fora value not less tha the Contract Sum, plus the sum to cover professional fees for reinstatement and the sum to cover the removal of debris all a stated inthe Appendix. Unless covered by the standart CAR Iosurance policy, the insurance shall have endorsements to cover agains loss andor damage by fire lightning, explosion, earthquake, voleanism, tsunami, storm, eyelone, ‘ood, inundation, landslide, thel, ground subsidence, existing underground cables andlor Pipes or other underground facilites, busting or overflowing of water tanks, appara or Pines aia and other arial devices or articles dropped therefrom, stike, vit and civil commotion, malicious damage, trespass, cessation of work whether total ot patil, vibration and weakening of support. Unless otherwise insured by the Contractor, the CAR Insurance policy will exclude cover for construction plant, tools and equipmest owned ot hired by the Contractor or any sub-contractors. The Contractor shall keep such Works $0 insured notwithstanding any arrangement for Sectional Completion under Clause 21.0 or Partial Possession under Clause 16.0. The insurance policy shall be valid up to the Completion Date and the extended maintenance cover shall be for the Defects Lisbility Period plus a further three (3) Months. If the Contractor is unable to complete by the Completion Date or complete making good the Defects within te insured period, he shall {ensure that the insurance is sevordingly extended for the same pesiod of delay, ‘The Contractor shal effet the ssid extension of the insurance cover not les than one (1) Month before the expiry ofthe insurance currently in force. Where deductibles are specified inthe Appencix or in the insurance poly, the Contractor shall bear the amount ofall deductibles, The insurance policy shall also include the endorsement under Clauses 19-1() to (d), ‘Any additional risks or endorsements in ation to those stated in Clause 20.4.1 which ‘may be required to be covered under the CAR Insuraaee policy shall be specified in the Contract Bills. Ifthe Contractor having regard to his indemmity to the Employer under Clause [8.0 desires to have any addtional endorsements fo the insurance ia addon tothe risks specified, he shall do so at his own cost ‘The insurance refered to in Clause 20.4 shall be placed with license insurance companies ‘approved by the Employer, and the Contractor shall deposit with the Employer the policy and the receipt of preminms paid. [the Contractor makes default in insuring or continuing to insure as aforesaid, the Employer may insure against any tsks in respect of which the lofult has occurred ard the amount of premiums and any other eost incurred o pai by the Employer shal be se-ofT by the Employer under Clause 30.4. Upon the oocurrence of any loss andor damage to the Works ot unfixed matesils and ‘200ds prior to Practical Completion of the Works from any cause whatsoever, and notwithstanding that settiement of any insurance claim has not been completed, the Contractor shall with due diligence restore, replace or repai the same, remove and dispose ‘of any debris and proceed withthe earying out and completion ofthe Works. All money if !nd when receive from the insurance unde this clause shall be paid in te fist place tothe Employer. ‘The Employer shall retain the amount paid by the insurance sompanies in respect of profesional foes for reinstatement and pay the balance to the Contractor andi ‘Nominoted Sub-Contractors by installments under separate certificates to be issued By the Architect. The Contractor shall not be entitled to any additional payments in respect ofthe testoration ofthe damaged work and replacement or repair of any unfixed materials and ods and the removal and disposal of debris other than the monies received under the foresid insuranes, © Soke ou Clone 20.4, 20.8 oF 20. as apprepriae PAM Contract 2018 (With Quantities) 2020.8 Insurance by’ 208.1 Employer Additional risks 20.82 required by the Contractor ‘Maintenance of 20B3 policy Failure of 20B4 Employer to insure Application of 20B5 insurance claim proceeds ngs! Works - By The Employer ‘Without prejudice to the Contractor's liability to indemnify the Employer under Clause 1800, the Employer shall, asa condition precedent to the commencement of any work under the Contract, take out and maintain in the joint names of the Employer, Contractor, sub- ceoniractors and all interested parties a CAR Insurance policy fora value not less than the Contract Sum, phas the sum to cover professional fees for reinstatement and the sum tO cover the removal of debris all as stated in the Appendix. Unless covered by the standard ‘CAR Insurance policy te insurance shall have endorsements to cover agains loss andor damage by fire, lightning, explosion, eardquake, voleanism, tsunami, storm, cyclone, food, inundation, landslide, ground subsidence, existing underground cables andor pipes or other underground facilites, brsting or overflowing of water tanks, apparatus or pipes, hictatt and other aerial dovioes or articles dropped thetefiom, strike, riot and civil commotion, malicious damage, trespass, cessation of work whether total or partial, Vibration and weakening of support. Unless separately required by the Contractor at his ‘own cont, the CAR Insurance poliey will exclude cover for construction plant, fools and equipment owned oe hited by the Contractor or any sub-contractor. The Employer shall keep such Works so insured notwithstanding ny arrangement for Sectional Completion under Clause 21.0 or Partial Possession under Clause 16.0. The insurance policy shall be valid up to the Completion Date and the extended maintenance cover shall be for the Defects Liability Period plus a further three (3) Months. Ifthe Contractor is unable to complete by the Completion Date or complete making good the Defects within the insured period, the Employer shall ensure that the insurance is accordingly extended forthe same period of delay. The Employer shall effect the std extension ofthe insurance caver not less than one (I) Month before the expiry ofthe insurance currently in force. Where deductibles fare specified in the Appendix or in the insurance policy, the Contractor shall bear the ‘amount ofall deductibles, The insurance policy shall also include the endorsement under ‘Clauses 19.1(0) 0 ‘Any ational risks or endorsements which vary from those stated in Clause 20,B.1 shall ‘be specified inthe Contract Bills, and the Employer shall ensure thatthe risk specified in the Contact Bills ae covered by the CAR Insurance policy. Ifthe Contractor having regard to his indemnity to the Employer under Clause 18.0, desires to have further additional endorsements to the insurance in addition to the sks specified, he shall do so at his own cost The Employer shall maintain a proper insurance policy against the aforesaid risks and such policy and receipt forthe Inst premium paid for its eewal shal, upon the request of the Contactor, be produced for his inspection, If the Employer at any time upon the request of the Contractor fails to produce any receipt showing such a policy as aforesaid to be effective, then the Contractor may take out and ‘maintain inthe joint names of the Employer, Contractor, sub-contractors and al interested partes, the CAR Insurance policy as required under Clauses 20.B.1 and 20.82. The Contactor upon production of the receipt of any premium paid by him shall be entitled t0 hhave the amount added tothe Contract Sum. Upon the occurrence of any loss and/or damage to the Works or unfixed materials and ‘goods prior 10 Practical Completion of the Works fiom any cause whatsoever notwithstanding that settiement of any insurance claim has not been completed, the ‘Contractor shall with due diligence restore, replace or repair the stme, remove and dispose of any debris and proceed with the carrying out and completion ofthe Works. All money if fand when received fom the insurance under this clause shal be paid in the Firs place to the Employer, The Employer shall retain the amount paid by the insurance companies in respect of professional fees for reinstatement and pay the balance to the Contractor and/or ‘Nominated Sub-Conttactors by installments under separate certificates issued by the “Architect. The Contractor shall not be entitled to any additonal payments in vespet of the restoration of the damaged work and replacement or repair of any unfixed materials and foods and the removal and disposal of debris other than the monies received under the sforesaid insurance. 1° Smite ont Clase 20.4, 20.8 or 20 a appropriate PAM Contact 2018 (With Qusntitis) aEmployer wo 27.10 privity of Contract with ‘Nominated Contractors Resnomination of 27.11 sub-contractor duc to ddofermination by the Contractor Re-nomination of 27.12 sub-contractor ddueto ‘determination by the Nominated Sub-Contraetor Contractor to 2113 additional expenses from Nominated Sub- Contractor Contractor 20M permitted to fender for P.C, 280 P.C. Sums and 28.1 Provisional Sims = Nominated Suppliers Nominated 282 Suppliers a ‘their obligations PAM Contact 2018 With Quits) Neither the existence of or the exercise of the foregoing provisions nor anything else contained inthe Contract shall create a privity oF contract between the Employer and any of "he Nominated Sub-Contractors {Fhe employment of a Nominated Sub-Contractoris determined by the Contractor with the ‘written consent of the Architet, the Architect shall re-nominate another Nominated Sub- Contavior. Inthe event, the Contractor shall Be enttiod to be pad such difference Gi any) ‘between the sum payable to the Contractor and the new Nominated Sub-Contracto and the sum payable to the previous Nonninated Sub-Contactor after taking into consideration of ‘any sum that will be recoverable fiom the definlting Nominated Sub-Contractor under Clause 27.13. An extension of time under Clause 23.8()) may be granted to the Contractor but the Contractor shall not be eniied fo any damages, loss and/or expense. If Nominated Sub-Contiactor determines his own employment under the Nominated Sub- Controet de to negligence, omission, default or breach of the Contractor, the Architect, shall re-snominate another Nominated Sub-Contractor, In the event, the Contractor shall be Did the samme sum as would have been payable to the previous Nominated Sub-Contractor ‘The Contractor will be tile to pay the new Nominated Sulb-Contactor any additional cost, to complete the Sub-Contract Works ancl t© pay the Employer for all additional costs incured in renomination and loss and/or expense suffered by the Employer by such determination. The Contractor shall not be entitle to any extension of time unless and until the Contractor has established thatthe determination by the Nominated Sulb-Contaetor of his own employment is invalid, Iu the event the determination by the Nominated Sub- Contractor of his own employment has been established to be invalid by arbitration or Tngation, Clause 27.11 will apply. nthe event the Architect consents to determine the employment of the Nominated Sub- Conractor under Clause 27.11, the Contractor shall recover all additional expenses (including any additional expenses incurred by the Employer) fom the Nominated Sub. Contractor as a debt or from any monies due or to become due to the Nominated Sulb- Contractor and filing which, the Contractor may recover such sum from the Nominated Sub-Contracior’s Performance Bond, Where the Contractor eatries out works for which P.C, Sums and Provisional Sums are included in the Contract Bills, the Contractor shall be permite o tender forthe same. IF the tender ofthe Contactor for such work is accepted it shall be considered as Variation ‘nd the Contractor shall not be entitled to profit and attendance charges as priced under the relevant P.C. Sum, notwithstanding the provision of Clause 30.11 The Architect may omit any P.C. Suns, which are included inthe Contract Bills, provided. prior consent ofthe Contactor has boen obtained, The Employer shall only be permitted 10 ward the works related to such P.C, Sums to any other contaetors with the eotsent ofthe Contractor Nominated Suppliers ‘The following provisions of tis clase shall apply where P.C. Sums are included in the Conte: Bills or arise asa reslt of an AI given in regard to the expenditure of Provisional Sums in respect of Person to be nominated by the Arehitect to supply any materials and goods to be fixed by the Contractor, Such Person as the Atchitet shal ist is referred to as" Nominated Supplier” Te Architect shall not nominate any Person as a Nominated Supplier against whom the Contactor makes a teasonable objection in accardanee with Clause 28,3, The Contractor shall make such reasonable objection in writing not later than fourteen (14) Days from, receipt ofthe nomination instruction from the Afchitect, The Arehitet shall not nominate {except where the Architect and Contractor otherwise agree) any Person who will ot enter into a eoneact of sale which provides inter alia that the materials and goods to be supplied shall be ofthe quality and standare specified, provide always that where approval ofthe quality and standard of ‘material is matter ofepinion ofthe Architect, such quality and standand shall bbe o the reasonable satisfaction ofthe Atcite uObjection to 283 nomination of suppliers Action following 284 objection of suppliers Value of 285 rmaterials and ‘goods supplied by Nominated Suppliers Payment co 286 ‘Nominated Suppliers Contractor's 287 Nominated Suppliers Employer no 288) Contract with Nominated Suppliers PAM Contact 2018 (With Quanites) 28.2(6) that the Nominated Supplier shall make good by replacement or otherwise any defects in the materials and goods supplied which appear within the Defects Lisbility Period and shall bear any expenses reasonably ineurod by the Contractor asa direct consequence of such defects prove always that: 28.2(bx) where the materials and goods have been used or fixed, such defects are not such that examination by the Contractor ought to have revealed them before using of Fxing; oF 282¢byii) such defeeis are due solely to defective workmanship, materials and goods supplied and not caused by misuse, improper storage ‘ot any at or neglect by the Contractor 282(¢) thatthe delivery of the materials and goods supplied shall eommence and be ‘completed in accordance with a delivery programme to be agreed between the Coniraetor and Nominated Supplier, or at such times as the Contractor may reasonably direct; 28.2(4) thatthe ownership of materials and goods shall pass to the Comtractor upon delivery by the Nominated Supplier, whether or not payment has bees made in fallyand 28.2(e) that payment to Nominated Supplie shall be made within seven (7) Days after the Period of Honouring Certificates and shall be subject to the retention by the Contactor under Clause 28.5. Subject to Clause 28.4, the Contractor shall not be required to enter into s supply contract with any Nominated Supplier against whom the Contractor has made a. reasonable ‘objection based on the available known facts and documented evidence thatthe financial Sanding of solvency ot technical competence of the Nominated Supplier is such that a prudent contractor, having regard to the scope ofthe supply contract would be justified in rejecting the nomination, Where such reasonable objection is made, the Architect may either issue further instretions to remove the objcetion so that the Contractor ean enter into the supply eontract fof cancel such nomination or instruction and issue an instruction omitting the materials and fpoods which was the subject of the nomination instruction or re-nominate another "Nominated Supplier ‘The Architect shall direst the Contractor as to the total value of materials and goods supplied by @ Nominated Supplier which has been included in any certificate isued under Clause 30.0, and shall at the same time when the certificates ate issued, inform the ‘Nominated Supplier in writing of the amount of the said total, The Contractor shal retain fiom the sums included forthe value of materials and goods the percentage of such value stated in the Appendix as Percentage of Certified Value Retained up to an amount not texceoding five (5) peoeat of the Nominated Supplier's sum. The Contractor's interest in ‘any sums 80 retained shall be fiduciary as tustee for dhe Nominated Supplier (bat without ‘obligation to invest); and the Contractor's beneficial interest in such sums shall be subject ‘only tothe right of the Contractor to have recourse from time to time for paysnent of any fmmount which he is entitled under the nominated supply contract to dest from any sum flue or to become due to the Nominated Supplier. Upon the Architect having certified the release of the Refention Fund under Clause 30.6, suck sums shall be released to the Nominated Supplier within seven (7) Days after the Period of Honouring Certificate and that if and when such sums are released to the Nominated Supplier, they shall be paid in ful {All payments in respect of the value of materials and goods supplied by a Nominated ‘Supplier shall be made within seven (7) Days after the Period of Honouring Certificates and shall be subject tothe retention by the Contractor under Clause 28.5, “The Contractor shall be fully responsible for any negligence, omission, default andor breach of coniract by the Nominated Supplier and the Employer shall in no circumstances be liable to she Contractor. Neither the existence of oF the exercise of the foregoing provisions nor anything else ‘contained in the Contract shall ereatea privity of eontract between the Employer and any of the Nominated Suppliers. 38291 craftsmen 300 Payment 30.1 application and nce of Architeet’s certificate Amount due in 302 Architeet's certifieate Brrors in 303 payment certificate Setoffby 304 Employer PAM Contest 2018 With Quantes) Or Other Contractors Es ployed Or Engaged By ‘The Contractor shall permit the execution of work not forming part of the Conttect on the Works by craftsmen, tradesmen or other contractors engaged by the Employer. Such «raltsmen, tradesmen or other contractors engages! by the Employer shall be deemed to bea Person for whom the Employer is responsible and not t0 be a sub-conimetor of the Contactor, Certificates And Paymen The Contractor shall submit a payment application atthe Interim Claim Interval stated in the Appendix with complete details and particulars as required by the Architect and ‘Quantity Surveyor, to enable them to consider and ascertain the amount tobe included nan Interim Certificate. Upon receipt of the Contractor’ details and particulars, the Architect ator having received the payment valuation from the Quantity Surveyor shatl, within twenty one (21) Days from the date of receipt of the Contractor's application, issue an Interim Cerificate to the Employer with a copy to the Contractor, and the Employer shal thereafter pay the amount eotified to the Contractor within the Petiod of Honeuting Cortificates. Any failure by the Contractor to submit payment application shall be deemed ‘o be a waiver of his contractual entitlement for that Interim Cerificate, and the Architect may oF may not issue an Interim Centificate under the circumstances. After the istuance of ‘he Centticate of Practical Completion, Interim Cortficates shall be issued as and whet further amounts are ascertained by the Architect and Quantity Surveyor as payable to the Conieactor by the Employer, ‘The amount stated as ue in an Interim Cerificate shall, subject to any agreement beeween the parties as to stage payments, be the total value of the work properly executed and inelude the percentage ofthe value of materials and goods stated in the Appendix up to the date of the Contractor's payment application less any ammount wich may be retained by the Employer under Clauses 30.5 and 30.6 and, less the amounts previously certified under ‘Clause 30.4, The materials and goods must be for incorporation into the permanent works and have been delivered to and properly stored atthe Site and be protected against loss, damage or deterioration, and be in accordance with the Contact. The certificate shall only include the value of materials and goods which are reasonably, propecy and not prematurely brought to the Site Save for clerial, computational or typographical error or etors of a similar nature, the Architect shall not be entitled to revise oF comet any payment certificate issued by him under the Contract, Provided always that the Architoct may, by « later certificate, make correction or moslication in respect of any valuation ereors in any eater certificate, ‘The Employer shall be entitled to set-ofFall cost incurred and loss and expense where itis expressly provided under Clauses 24, 4.4, 5.1, 6.5(¢),6.7, 144, 15.30) 15.30), 15.4, 15.5, 19.5 and 20.4.3. No set-off under this elause may be made unless: 30.4(a) the Architect or Quantity Surveyor (on behalf of the Employes) has submitted to the Contactor complete details of their assessment of suc set-off, and 304(b) the Employer or the Architect om his behalf has given the Contractor a writen hotice delivered by hand or by registered post, specifying his intention to sot- off the amount and the grounds on which ‘sueh set-off is made. Unless expressly stated elsewhere, such written notice shall be given not later than ‘eenty eight (28) Days before any set-off s deducted fot any payment by the Employer. Any set-off by the Employer shall be recoverable from the Contractor as debtor from any. monies due or to become due to the Contractor under the Contract andor from the Performance Bond, {the Contractor after receipt of the written notice ftom the Employer or the Architeot on his thal, disputes the amount or part ofthe amount of se-of, the Contactor shall within twenty one (21) Days of receipt of such vritten notice, send to the Employer delivered by hanel or by registered post a statement setting out the reasons and particulars for sueh Aisaureement. Ifthe parties are unable to agree on the amount or part of the amount of Sct off within a farther twenty one (21) Days aftr the recipt of the Contractor's response, cither party may refer the dispute to adjudication under Clause 36. 6Retention Fund 305 Rules regarding 30.6 Retention Fund Suspension of 307 Works for non- payment ulsory 308 suspension of Works Cessation 309 insurance resulting from suspension of the Works PAM Contact 2018 (With Quantities) ‘The Employer shall only be entitled to sot-ofTthe amount or part ofthe amount not disputed by the Contractor. The Employer shall not be entitled to set-off the disputed amount nit the adjudicator has issued his decision. “The Employer may retain the percentage ofthe total value ofthe work, materials and goods referred to in Clause 30.2, which is stated in the Appendix as Percentage of Certified Value Retained, “The amount retained wnder Clause 30.5 shall be subjected tothe following rules: 30.6(@) the Employer's interest in any amount so retained shall be fiduciary as trustee forthe Contractor, Nominated Sulb-Contractors and Nominated Suppliers (but without obligation to. invest) and the Contracto’s, Nominated Sub- Contractors’ and Notninated Suppliers’ beneficial intrest shall be subject only to the right ofthe Employer to have recourse fro time to time for payment of any amount asthe Architect may certify that he is entitled under the Contract te deduct from such sum due oto become due to the Contractor, Nominated ‘Sub-Contractrs and Norsinated Suppliers. Inthe event any of the party elects to demand in writing ftom the Employer (with a copy to the Architect) for such Retention Fund to be paid into a trast account, such fund shall be paid by the Employer within fourteen (14) Days into an eserow account to be held by a stakeholder appointed by the party making the application. Al incidental costs of sesting up such a trust account shall be bome by the Contractor or ‘Nominated Sub-Contractors or Nominated Supplies as the ease may be; 30.6(b) when the Employer exercises any right under the Contiat to deduct from any monies due t0 oF became due to the Contractor or where applicable, the Nominated Sub-Contractors or Nominated Suppliers, he shall inform the relevant party in writing of the reason for that deduction; 30.6(¢) upon the issuance of the Certificate of Practical Completion, the Architect ‘hall within fourteen (14) Days issue a certificate for the release of one half of. the Retention Fund and the Contractor shall be ented to payment thereafter within the Period of Honouring Certificates; and 30.6(d) upon the issuance of the Certificate of Making Good Defeets, the Architect hall within fourteen (14) Days issue a certificate forthe residue of the amount then so retained and the Contractor shall be entitled to payment within the Period of Honouring Certificates. Without prejudice to the Contractor's right to determine his own employment under Clause 26.0, tthe Employer fails or neglects to pay the Contractor the amount de as shown inthe payment cettfeate (less any Liguidated Damages and set-off which the Employer is texpresly entitled to make under the Contract) and continue such default for fourteen (14) ‘Bays fiom the receipt ofa written notice delivered by hand or by restered post fiom the ‘Contactor stating that i payment isnot made within the fourteen (14) Days, the Contractor ‘may by a farther written notice delivered by hand or by registered post, forthwith suspend the execution ofthe Works until such time payment is made. Provided always that such notice shall not be given unreasonably or vexatiously Ifthe Architect and/or Consultant inform the Contractor in writing of their withdrawal from the supcrvision ofthe execution of the Works required under the local building by-laws for whatever reasons, the Contractor shall forthwith suspend the execution of the Works and continue such suspension unt the resumption ofthe said supervision, I the Contractor suspends the Works in accordance with the provisions of Clauses 30.7 and 30.8, he shall secure and protect the Works during the period of suspension and ensure that there is separate cessation insurance cover for al the risks specified in Clauses 19.0 and 20.8 or 20.B ot 20.C for the whole period of suspension. The cost incurred for such protection and cessation insurance cover stall be added to the Contract Sum. ”Form of the Performance Bon Validity ofthe Performanee Bond Failure to extend the validity Payments from the Performance Boud Return of, Perform Bond Governing Law PAM Cortet 2018 (With Quantes) 393 304 305 396 40.0 401 The Performance Bond shal bein the form issued inthe terms and conditions specified in ‘he Contract or otherwise approved by the Employer: ‘The Performance Bond submitted by the Contractor 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 before the expiry ofthe Performance Bond, extend the duration of the Performance Bond 10 expire three (3) Months afler the projected Practical Completion ofthe Works, If the Contnactor fails to provide or maintain the validity of the Performance Bond in accordance with this clause, then without prejudice to any other rights and remedies which the Employer may possess, the Employer shall be entitled to withhold or deduct an amount ‘equal © the Performance Bond from any payment duo otto become due tothe Contractor Inthe even the Employer determines the employment ofthe Contractor in accordance with Cause 25.0, or if there is any breach ofthe Contract, and subject tothe Architect certifying, such breach by the Contractor, the Employer may call onthe Performance Bond and utilise ‘and make payments out of or deduction from the Performance Bond for the completion of andlor rectification of the Works and reimbursement of los, andlor expense suffered by the Employer. On completion of the Works, any balance of moaies remaining from the Performance Bond shall be refunded tothe Contractor without interest, Inthe event the Contractor determines his own employment in accordance with Clause 26.0, the Employer shall within fourtoen (14) Days retnm the Pecformance Bond to the Contractor for cancelation, Governing Law ‘The law governing the Contract shall be the Laws of Malaysia. “sAppendix Defects Linbiity Paria {if none other stated is twelve (12) Monts from the day stated in the Certificate of Practical Completion of the Works} Insurance cover for accidental bodily injury to oF iliness ‘of thi parties (whether fatal or not), acidental loss of ‘or damage to property belonging to third parties (he ‘agaregate liability ofthe insures shall be limited by twice the limit of indemnity caused by any one ‘ecurrence) [ifnone stated the insared liability shall be not less than RMI milton) Insurance deductible amount [ifnone stated shull be not sore than RM50,000 an occurence) Percentage to cover Professional fees fr reinstatement [ifone stated isa sum equivalent to 10% of the ‘Conte Sum] Amount for removal of Debsis [if none stated is a sum ‘not less than the equivalent of 1% ofthe Contract Sum] ‘Value of existing structure together with ll the entents ‘owned by the Employer or for which he is responsible Date of Commencement Completion Date Liquidated Damages Sectional Completion (°) ‘ref description of ection of tie Work Date of ‘Commencesment (21.2) Clause 154 19.4 and20.A0r RM 20.8 0F 20.C 19.1 and 20.4 oF RM. 2058 oF 20.0 20,4 oF 20.B oF RM. we 20.4 oF 20.8 of RM... 20. me RM. 1 au n0 at the rte of RM per Day 12 ‘Completion Date 213) Liquidated Damages at the ate of 22-1) 1 per Day 2 perDay 3 per Day Period of Delay [ifnone stated is continuous pesiod of 21.1 and 26.1(@) tree 3) Months} Interim Claim Interval (iF none stated is one (1) Moth] 30.1 Period of Honouring Certificates fif none stated is 30 twenty one (21) Days from the date ofthe Cerificate) Percentage ofthe value of materials and goods included 30.2 in the Cerificate [if none stated is 100%] Percentage of Certified Value Retained [if none stated 308 ig 3% of the value of work executed and materials on site included in the certificate] Period to complete the Final Account {if none stated 30.10 shall be fifteen (18) Months from the date of Practical Completion} Amount of Performance Bond fifnone stated is S% of 39.1 RM. the Contract Sum] (+) Footote- Tis so be used when there are diferent completion dates friend setions or parts of works ‘PAM Contract 2018 (With Quantities) “6‘his page is deters ft blank,“This pages deliberately et blankAgreement And Conditions of PAM Contract 2018 (With Quantities) Between And Dated the ‘This Form is issued under the sanction and approval of Pertubuhan Akitek Malaysia © Copyright of Pertubuhan Akitek Malaysia 99L, Jalan Tandok, Bangsar 59100 Kuala Lumpur, Malaysia