Name: Ong Win Hern

Matrik: 142962

As a strategy to stop the chain of COVID-19, our government has implemented

lockdown, or better known as Movement Control Order which restrict all activities.
Construction projects are forced to stop immediately, except for critical work which if
discontinued, could pose a danger to workers, the public or the environment (The Star Online,
2020). Therefore, this led to several issues related to time and cost. And luckily, contractors
are entitled to claim for 43.0 Delay and Extension of Time (EOT) and 44.0 Claims for Loss
and Expenses (L&E) which will entitle them extra time to complete the project and also to
cover the contractor’s monetary loss when work is not executed.
MCO has caused delay to the progress of works apparently, and the contractor is
entitled for EOT and he can claim under Clause 57.0 force majeure and Clause 43.1 (c)
suspension of works under clause 50. Thereafter, the Malaysian Ministry of Finance
expressed that the COVID-19 outbreak falls within the force majeure clause under the PWD
contract since COVID-19 pandemic is not listed as one of the ‘event of force majeure’ in PWD
contract Clause 57.2. Therefore, the contractor will need to follow the contractual procedure to
claim for EOT in order to be entitled, because force majeure is just a creature of contract, it is
not implemented by the law. Contractor is entitled to claim for EOT under Clause 50.0
Suspension of Works, because all the non-critical construction works are stopped by the
government during the MCO period.
Besides, Clause 43.1 (c) suspension of works also entitles contractors to claim for
L&E. As stated in Clause 44.1, contractor is entitled to claim for L&E if the work progress is
materially affected by reason stated under Clause 43.1 (c) suspension of works. In fact, during
MCO period, the government has suspended all the construction works except the critical work.

The contractor can claim for… Based on…

43.0 Delay and Extension of Time • Clause 57.0 force majeure
(EOT) • Clause 43.1 (c) suspension of works

44.0 Claims for Loss and Expenses • Clause 43.1 (c) suspension of works
(L&E)
Reference
The Star Online. (2020, April 5). Critical works in the construction sector. The Star Online.
https://www.thestar.com.my/news/nation/2020/04/06/critical-works-in-the-construction-
sector