Contract Administration - JPS

GOVERNMENT OF MALAYSIA
DEPARTMENT OF IRRIGATION
AND DRAINAGE
Volume 10 – Contract
Administration
Jabatan Pengairan dan Saliran Malaysia

Jalan Sultan Salahuddin
50626 KUALA LUMPUR
DID MANUAL Volume 10
Disclaimer
Every effort and care has been taken in selecting methods and recommendations that are
appropriate to Malaysian conditions. Notwithstanding these efforts, no warranty or guarantee,
express, implied or statutory is made as to the accuracy, reliability, suitability or results of the
methods or recommendations.
The use of this Manual requires professional interpretation and judgment. Appropriate design
procedures and assessment must be applied, to suit the particular circumstances under
consideration.
The government shall have no liability or responsibility to the user or any other person or entity
with respect to any liability, loss or damage caused or alleged to be caused, directly or indirectly,
by the adoption and use of the methods and recommendations of this Manual, including but not
limited to, any interruption of service, loss of business or anticipatory profits, or consequential
damages resulting from the use of this Manual.
Revision 0 : March 2009 i

Volume 10 DID MANUAL
Foreword
The first edition of the Manual was published in 1960 and was actually based on the
experiences and knowledge of DID engineers in planning, design, construction, operations and
maintenance of large volume water management systems for irrigation, drainage, floods and river
conservancy. The manual became invaluable references for both practising as well as officers newly
posted to an unfamiliar engineering environment.
Over these years the role and experience of the DID has expanded beyond an agriculture-
based environment to cover urbanisation needs but the principle role of being the country’s leading
expert in large volume water management remains. The challenges are also wider covering issues
of environment and its sustainability. Recognising this, the Department decided that it is timely for
the DID Manual be reviewed and updated. Continuing the spirit of our predecessors, this Manual is
not only about the fundamentals of related engineering knowledge but also based on the concept
of sharing experience and knowledge of practising engineers. This new version now includes the
latest standards and practices, technologies, best engineering practices that are applicable and
useful for the country.
This Manual consists of eleven separate volumes covering Flood Management; River
Management; Coastal Management; Hydrology and Water Resources; Irrigation and Agricultural
Drainage; Geotechnical, Site Investigation and Engineering Survey; Engineering Modelling;
Mechanical and Electrical Services; Dam Safety, Inspections and Monitoring; Contract
Administration; and Construction Management. Within each Volume is a wide range of related
topics including topics on future concerns that should put on record our care for the future
generations.
This DID Manual is developed through contributions from nearly 200 professionals from the
Government as well as private sectors who are very experienced and experts in their respective
fields. It has not been an easy exercise and the success in publishing this is the results of hard
work and tenacity of all those involved. The Manual has been written to serve as a source of
information and to provide guidance and reference pertaining to the latest information, knowledge
and best practices for DID engineers and personnel. The Manual would enable new DID engineers
and personnel to have a jump-start in carrying out their duties. This is one of the many initiatives
undertaken by DID to improve its delivery system and to achieve the mission of the Department in
providing an efficient and effective service. This Manual will also be useful reference for non-DID
Engineers, other non-engineering professionals, Contractors, Consultants, the Academia,
Developers and students involved and interested in water-related development and management.
Just as it was before, this DID Manual is, in a way, a record of the history of engineering
knowledge and development in the water and water resources engineering applications in Malaysia.
There are just too many to name and congratulate individually, all those involved in preparing this
Manual. Most of them are my fellow professionals and well-respected within the profession. I wish
to record my sincere thanks and appreciation to all of them and I am confident that their
contributions will be truly appreciated by the readers for many years to come.
Dato’ Ir. Hj. Ahmad Husaini bin Sulaiman,

Director General,
Department of Irrigation and Drainage Malaysia.
ii Revision 0 : March 2009

Acknowledgement
Steering Committee:
Dato’ Ir. Hj. Ahmad Husaini bin Sulaiman, Dato’ Nordin bin Hamdan, Dato’ Ir. K. J. Abraham, Dato’
Ong Siew Heng, Dato’ Ir. Lim Chow Hock, Ir. Lee Loke Chong, Tuan Hj. Abu Bakar bin Mohd Yusof,
Ir. Zainor Rahim bin Ibrahim, En. Leong Tak Meng, En. Ziauddin bin Abdul Latiff, Pn. Hjh. Wardiah
bte Abd. Muttalib, En. Wahid Anuar bin Ahmad, Tn. Hj. Zulkefli bin Hassan, Ir. Dr. Hj. Mohd. Nor
bin Hj. Mohd. Desa, En. Low Koon Seng, En. Wan Marhafidz Shah bin Wan Mohd. Omar, Sr Md
Fauzi bin Md Rejab, En. Khairuddin bin Mat Yunus, & Cik Khairiah bt Ahmad.
Coordination Committee:
Dato’ Nordin bin Hamdan, Dato’ Ir. Hj. Ahmad Fuad bin Embi, Dato’ Ong Siew Heng, Ir. Lee Loke
Chong, Tuan Hj. Abu Bakar bin Mohd Yusof, Ir. Zainor Rahim bin Ibrahim, Ir. Cho Weng Keong, En.
Leong Tak Meng, Dr. Mohamed Roseli Zainal Abidin, En. Zainal Akamar bin Harun, Pn. Norazia
Ibrahim, Ir. Mohd. Zaki, En. Sazali Osman, Pn. Rosnelawati Hj. Ismail, En. Ng Kim Hoy, Ir. Lim See
Tian, Sr Mohd. Fauzi bin Rejab, Ir. Hj. Daud Mohd Lep, Tn. Hj. Muhamad Khosim Ikhsan, En.
Roslan Ahmad, En. Tan Teow Soon, Tn. Hj. Ahmad Darus, En. Adnan Othman, Ir. Hapida Ghazali,
En. Sukemi Hj. Sidek, Pn. Hjh. Fadzilah Abdul Samad, Pn. Hjh. Salmah Mohd. Som, Ir. Sahak Che
Abdullah, Pn. Sofiah Mat, En. Mohd. Shafawi Alwi, En. Ooi Soon Lee, En. Muhammad Khairudin
Khalil, , Tn. Hj. Azmi Md Jafri, Ir. Nor Hisham Ghazali, En. Gunasegaran M., En. Rajaselvam G., Cik
Nur Hareza Redzuan, Ir. Chia Chong Wing, Pn. Norlida Mohd. Dom, Ir. Lee Bea Leang, Dr. Hj. Md.
Nasir Md. Noh, Pn. Paridah Anum Tahir, Pn. Nurazlina Mohd Zaid, PWM Associates Sdn. Bhd.,
Institut Penyelidikan Hidraulik Kebangsaan Malaysia (NAHRIM), RPM Engineers Sdn. Bhd., &
J.U.B.M. Sdn. Bhd.
Working Group :
Sr Md Fauzi bin Md Rejab (Pengerusi), Pn. Norazia binti Ibrahim, Pn. Hashimah binti Said, Pn.
Fazidah binti Zainal Abidin, Pn. Zalina binti Mat Zain, Pn. Rohimah binti Yusof, Pn. Nor Hasni Muhd
Supian, En. Roslan bin Ahmad, Tn. Hj. Hussin bin Haron, Ir. Nasser bin Salim, Ir. Nor Hisham bin
Mohd. Ghazali, Kapt. Ir. Anuar bin Yahya, En. Roslan bin Hussin, Tn. Hj. Muhd Khosim bin Hj.
Ikhsan, En. Sulaimi bin Nordin, En. Ratna Rajah, En. Alexander Anak Ngindang, En. Teo Siaw
Chung, En. Mohd Adnan bin Ahmad Fauzi, Ir. Hj. Mohd Razali bin Husain, En. Wan Mohd Azam bin
Wan Long, Tn. Hj. Rashiddi bin Hj Hussein, En. S. Valiappan, En. Adnan bin Ab Latif, Pn. Belinda
binti Adzmi, Cik Intan Suraya binti Ayob, Pn. Zaliza binti Mohamad Ibrahim, Sr Ong See Lian, Sr
Nur Aziz Abu Bakar, Lt Kol (B) Ir. Shahar Abdullah, Cik Ho Sook Chin, Pn. Zilawati Hj. Yaakub & Pn.
Idura binti Hj. Ariffin.
Revision 0 : March 2009 iii

Registration Of Amendments
Amend No. Page No. Date of Amend No. Page No. Date of
Amendment Amendment
iv Revision 0 : March 2009

Table of Contents
Disclaimer ............................................................................................................................ i
Foreword ............................................................................................................................. ii
Acknowledgement ................................................................................................................. iii
Registration of Amendments .................................................................................................. iv
Table of Contents .................................................................................................................. v
List of Volumes ...................................................................................................................... vii
List of Abbreviations (English) ................................................................................................ ix
List of Abbreviations (Bahasa Malaysia) ................................................................................... xi
Glossary ................................................................................................................................ xiii
PART I - INTRODUCTION
Chapter 1 Introduction to Volume 10
Chapter 2 DID Organisation Structure
Chapter 3 Procurement - Overview
Chapter 4 Project Implementation - Overview
PART II – PRE-CONTRACT
Chapter 5 Authority
Chapter 6 Preparation of Tender Documents
Chapter 7 Invitation and Receipt of Tender
Chapter 8 Tender Evaluation and Acceptance
PART III – POST-CONTRACT
Chapter 9 Contract Documentation
Chapter 10 Payments
Chapter 11 Variations
Chapter 12 Adjustment of Contract Sum
Chapter 13 Delays and Extension of Time
Chapter 14 Non-Completion
Chapter 15 Loss and Expense
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Table of Contents
PART III – POST-CONTRACT (Cont’d)
Chapter 16 Determination
Chapter 17 Completion
Chapter 18 Defects Management
Chapter 19 Final Accounts and Final Certificate
Chapter 20 Prime Cost & Provisional Sums
Chapter 21 Dispute Management and Resolution
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List Of Volumes
Volume 1 FLOOD MANAGEMENT
Volume 2 RIVER MANAGEMENT
Volume 3 COASTAL MANAGEMENT
Volume 4 HYDROLOGY AND WATER RESOURCES
Volume 5 IRRIGATION AND AGRICULTURAL DRAINAGE
Volume 6 GEOTECHNICAL MANUAL, SITE INVESTIGATION AND ENGINEERING SURVEY
Volume 7 ENGINEERING MODELLING
Volume 8 MECHANICAL AND ELECTRICAL SERVICES
Volume 9 DAM SAFETY, INSPECTIONS AND MONITORING
Volume 10 CONTRACT ADMINISTRATION
Volume 11 CONSTRUCTION MANAGEMENT
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(This page is deliberately left blank)
viii Revision 0 : March 2009

List of Abbreviations
(English)
AtP Authorised Party
CAO Contract Administration Officer;

the term CAO includes Contracts Officer and/or Quantity Surveyor
CPC Certificate of Practical Completion
CMGD Certificate of Completion of Making Good Defects
CNC Certificate of Non-Completion
DB/T Design and Build / Turnkey
DID Department of Irrigation and Drainage.
DT Design Team, or Designer
FD Finance Division
IO Implementation Officer
Engr Engineer
PD Project Director
PDR Project Director’s Representative
PH Project Head
PS Project Supervisor
PM Project Manager
PO Procurement Officer
PST Project Supervision Team
PT Project Team
PWD Public Works Department
QA Quality Audit / Quality Auditor
QSCD Quantity Surveying and Contracts Division
SO Superintending Officer;
in DID Manual Volume 10, the term SO may include Project Director (PD) of a
design and build contract unless the context requires otherwise.
SOR S.O. Representative;

in DID Manual Volume 10, the term SOR may include Project Director’s
Representative (PDR) of a design and build contract unless the context requires
otherwise
Revision 0 : March 2009 ix

(English)
QS Quantity Surveyor
TI Treasury Instruction
TS Tender Secretariat
VO Variation Order
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(Bahasa Malaysia)
AK Audit Kualiti
(Quality Audit)
AP Arahan Perbendaharaan
(Treasury Instruction)
APK Arahan Perubahan Kerja

(Variation Order)
BUBK Bahagian Ukur Bahan dan Kontrak

(Quantity Surveying and Contracts Division)
JKR Jabatan Kerja Raya.

(Public Works Department)
JPS Jabatan Pengairan dan Saliran.

(Department of Irrigation and Drainage)
KPK Kelulusan Perubahan Kerja

(Variation Approval)
PHK Pelarasan Harga Kontrak

(Adjustment of Contract Sum)
PK Perubahan Kerja
(Variation)
PMK Pegawai Mentadbir Kontrak

(Contract Administration Officer)
SPJPS Surat Pekeliling JPS

(DID Circular)
SPP Surat Pekeliling Perbendaharaan.

(Treasury Circular)
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xii Revision 0 : March 2009

Glossary
Term Definitioni
Addendum Written information adding to, clarifying or modifying the tender documents.
(Addenda) An addendum is generally issued by the Government to the contractor during
the tender process and as such, addenda are intended to become part of the
contract documents when the construction contract is executed.
Advance Prepayment, payment made on account, in advance of the commencement of

payment works, supply or services.
Advance Guarantee submitted by a party receiving an advance payment to the

payment Government, for advancing the payment. It provides that the advanced sum
guarantee will be returned if the agreement under which the advance was made cannot
be fulfilled.
Alternative An alternative tender is a tender that offers an alternative proposal that still
tender satisfies the Government's requirements. Alternative tenders will not be
considered unless they are allowed in the conditions of tendering.
As-Built Drawings (plans) that show the work, as actually installed.

Drawings
Audit An independent examination of a work product or set of work products to

assess compliance with procedures, specifications, standards, contractual
agreements, or other criteria.
Award Acceptance of a tender or proposal for a contract.
Best practice The most effective and desirable method of carrying out a function or process
derived from experience rather than theory.
Best value Continuous improvement in the exercise of all functions undertaken by the
Government, whether statutory or not, having a regard to economy, efficiency
and effectiveness.
Bid See ‘Tender’.
Bidder See ‘Tenderer’.
Bill of Quantities A document usually prepared by a quantity surveyor which (ideally) details the
terms and conditions under which a contract is to be let, and itemises all works
to enable a contractor to price the work for which he is tendering. The first
main step in preparing a bill is the "taking off" or recording of dimensions from
drawings or schedules of work. Similar types of work are then brought together
under one item, a process known as "abstracting", all of this information is
then "worked up" into the bill of quantities.
Build-own- A mode of business in which a project company builds and operates a property
operate (BOO) project pursuant to the concession rights granted by the government
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Glossary
Term Definitioni
Build-operate- A mode in which Government or local authorities grant the rights to an

transfer (BOT) enterprise by concession agreement to undertake the financing, construction,
operation and maintenance of a construction project. Upon expiry of the
concession period, the relevant facilities will be transferred back to the
contracted government authority
at (usually) nil consideration.
Build-transfer A variant of build-operate-transfer (BOT) in which the contractor undertakes

the
financing of construction expenditures and transfers the project back to the
proprietor upon completion and inspection for acceptance. The proprietor will
compensate the contractor for such construction expenditure and Financing
costs in installments pursuant to agreement.
Bond See ‘Guarantee’.
Certificate of See ‘Payment certificate’.

payment
Certificate of Document that confirms the stage reached in the contract where the
practical Government can take beneficial occupation and/or utilise the works for its
completion intended use, without undue interference.
Claim A written demand or assertion by a contractor seeking adjustment or

interpretation of the terms of the contract documents, payment of money,
extension of time, or other relief with respect to the contract documents, or
determination of other disputes or matters in question between the
Government and contractor regarding the contract documents or the
performance of the work.
Claims The group of officers who are authorised under the Government procurement
committee procedures to approve claims submitted by a contractor.
Closed tender Competitive tendering in which the tender-opening is conducted at a private

venue, and in the presence only of the authorised personnel of the party
requesting the tenders, ie officers of the Government.
Close out The completion of project work once the project has been implemented. The
phase at the end of the project lifecycle just before the operations begin.
Competitive See ‘Open tender’.

tender
Completion See ‘Practical completion’.
Compliance Certification or confirmation that the doer of an action (such as the writer of a
report), or the manufacturer or supplier of a product, meets the terms of a
contract; or the requirements of accepted practices, legislation, prescribed
rules and regulations, specified standards. See also conformance.
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Glossary
Term Definitioni
Conceptual The first of three sub-phases of the design phase. The design professional
design ascertains the requirements of the project and prepares design studies
consisting of drawings and other documents illustrating the scale and
relationships of the project.
Conditions of Terms and conditions that set the rights and obligations of the contracting
contract parties, when a contract is awarded or entered into. These include 'general
conditions' which are common to all types of contracts, as well as 'special
conditions' (or special provisions) which are peculiar to a specific contract (such
as variation of price clauses).
Conditions of The rules governing what the tender submission should contain, how it should
tendering be submitted, and how it will be evaluated. There are general conditions of
tender for building and construction that apply to all tenders, such as treatment
of late tenders. Pro-forma conditions of tender for the purchase of goods and
services are provided under Resources / Publications. Pro-forma conditions of
tender for the procurement of works, supplies and services are provided by the
Government.
Conformance Certification or confirmation that a good, service, or conduct meets the terms
of a contract; or the requirements of legislation, accepted practices, prescribed
rules and regulations, specified standards. See also compliance.
Consultant A particular type of contractor who is engaged to provide recommendations or

specialist or professional advice (or more generally non-manual services) to
assist or influence Government’s decision making.
Contingency An amount of money reserved by the Government (project manager) for

unforeseen changes in the work
Contract A mutually binding, legal relationship obligating the seller to furnish supplies or
services, and the buyer to pay for them.
Contract Administrative activities usually associated with handling of contracts, such as

administration (1) invitation to tender, (2) tender evaluation, (3) award of contract, (4)
contract implementation, (5) measurement of work completed, and (6)
computation of payments. It also includes monitoring contract relationship,
addressing related problems, incorporating necessary changes or modifications
in the contract, ensuring both parties meet or exceed each other's
expectations, and actively interacting with the contractor to achieve the
contract's objective(s). Also called contract management.
Contract Executed (signed) agreements, supplementary conditions, drawings,

documents specifications, and other documents specific to a contract.
Contract period Number of working days or calendar days, calculated from a specified
commencement date to a specified date for completion, as provided for in a
contract. For works contract, also called construction period.
Contract See ‘Contract administration’.

management
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Glossary
Term Definitioni
Contract price See ‘Contract sum’.
Contract price See ‘Contract sum analysis’.

analysis
Contract sum Examination of a cost proposal in view of the supporting data, and by applying
analysis appropriates rates and factors.
Contractor Independent entity that agrees to furnish certain number or quantity of goods,
material, equipment, personnel, and/or services that meet or exceed stated
requirements or specifications, at a mutually agreed upon price and within a
specified timeframe to the Government.
Contract sum Mutually agreed upon total amount that a principal (Government) pays to a
contractor on completion of the contract, in accordance with contract terms
and conditions and their subsequent modifications (if any).
Contractual Obligation assumed by any contracting party under the terms of a contract.
liability
Cost estimate Approximation of the probable total cost of a product, program, or project,
computed on the basis of available information. Four common types of cost
estimates are: (1) Planning estimate: rough approximation of cost within a
reasonable range of values, prepared for information purposes only. Also called
ball park estimate. (2) Budget estimate: approximation based on well defined
(but preliminary) cost data and established ground rules. (3) Firm estimate:
based on cost data sound enough for entering into a binding contract. (4) Not-
to-exceed /Not-less-than estimate: maximum or minimum amount required to
accomplish a given task, based on firm cost estimate.
Date for Fixed date specified in a contract to complete a job or project. If permitted
completion under the terms of the contract, the date for completion may be modified or
revised.
Date of The date established in a written notice to proceed with the works, from the
commencement Government to the contractor.
Deliverable Report, document or item that must be completed and delivered under the
terms of an agreement or contract.
Design Application of engineering or architectural theories and techno-economic

approaches, based on the prevailing technical standards, for conducting all-
round design (including non-standardized equipment design) and
technoeconomic analysis on newly constructed, expansion and reconstruction
projects in respect of their technical process, land construction, civil works and
environmental works; provision of design papers and blueprints as the basis for
construction work.
Design and Construction contract where both the design and the construction of a
build (DB) structure are the responsibilities of the same contractor.
contract
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Glossary
Term Definitioni
Design-build- Construction contract where a single contractor has the responsibility for
operate (DBO) designing and constructing a facility, as well of operating and maintaining it for
contract a specified period prior to handing it over to the client or principal.
Design A project design phase in which all design decisions need to be completed. The
development design professional (designers) further develops the preliminary (schematic)
design and detailing and ensures that basic technical issues are resolved and
are capable of technical description. Plan arrangements, specific space
accommodations, plant equipment and furnishings, building design, materials
and colors, and complete definitions of systems serving the project are
developed.
Designer The professional individual or organisation that performs the design and
prepares plans and specifications for the work to be performed. The
professional can be an architect, an engineer, or an organisation which
combines professional services.
Design-tender- Traditional contracting method in which design is carried out by the

build Government (or tendered and performed by design consultant), and the
construction phase are tender and performed by contractor.
Detailed design The phase of the design process on a project when drawings and specifications
are completed for construction tender purposes. The phase is preceded by the
preliminary design phase, and followed by the tender and award phase.
Direct costs The field costs directly attributed to the construction of a project, including
labor, material, equipment, subcontracts and their associated costs.
Drawings  A term used to represent that portion of the contract documents that
graphically illustrates the design, location and dimensions of the
components and elements contained in a specific project.
 A line drawing.
Engineering, Commissioned by the Government to contract the whole process or certain

procurement stages of a project based on the contract including exploration, design,
and procurement, construction and trial operations (inspection upon completion)
construction
(EPC)
Escalation See ‘Variation of price clause’.

clause
Estimate  To calculate approximately the amount, extent or value of something

 To form an opinion of estimated costs
Evaluation Evaluation criteria are used to assess the merit of offers/tenders received. The
Criteria evaluation criteria are specified in the quotation or tender documentation.
Extension of An extension of time to a contract period authorised by the Government for

time reasons of adverse weather conditions, an unusual number of variations etc.
The reasons for which an extension of time may be granted are usually given in
the conditions of contract.
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Glossary
Term Definitioni
Fair and A price that is fair to both parties considering quality, performance, supply
reasonable price situation, delivery time, and payment options.
Fast track The process of dividing the design of a project into phases in such a manner as
to permit construction to start before the entire design phase is complete. The
overlapping of the construction phase with the design phase.
Final certificate A certificate stating that the works are now complete and the Government is
due a full and final settlement to the contractor.
Final payment The last payment from the Government to the contractor of the entire unpaid
balance of the contract sum as adjusted by any approved variation orders or
other contractual adjustment to the contract sum.
Firm price See ‘Fixed price’
Firm price See ‘Fixed price contract’

contract
Fixed price A price which is not subject to variation.
Fixed price Contract that provides for a price which normally is not subject to any
contract adjustment unless certain provisions (such as variation of price clause) are
included in the agreement.
Fluctuations Increases or decreases in costs of labour and materials.
Force majeure Standard clause found in construction and supply contracts, it exempts the
contracting parties from fulfilling their contractual obligations for causes that
could not be anticipated and/or are beyond their control. These causes usually
include act of God, act of man, act of parliament, and other impersonal events
or occurrences. (French for, superior force.)
Form of tender Standard printed form given or sold to tenderers so that they may submit the
information required for evaluation of the tender, in correct format and
sequence.
General Contractor that performs a contract all by itself, or through the use of
contractor subcontractors whose activities it supervises and coordinates.
Guarantee Three-party contingent liability agreement under which a third-party (the

guarantor; usually bank or insurance company) agrees to be directly or
collaterally responsible for the obligation (contract fulfillment) of a first-party
(the principal; usually the contractor) to a second-party (beneficiary; ie the
Government) in case the first-party defaults or fails to fulfill its part of a deal.
Unlike a warranty, a guarantee may refer to things as well as persons and, to
be legally enforceable, must be in writing.
xviii Revision 0 : March 2009

Glossary
Term Definitioni
Invitation to Initiating step of a competitive tendering process in which qualified (or pre-
tender (ITT) qualified) contractors or suppliers are invited to submit sealed tenders for
construction works or for supply of specific and clearly defined goods or
services during a specified timeframe.
Lead time The period of time between when the contractor receives the order and the
Government receives the goods/services.
Letter of A letter that creates an immediate binding contractual relationship between the
acceptance Government and the successful tenderer prior to entering into a formal
contract.
Letter of intent A letter informing a successful tenderer that it is the Government’s intention to
enter into a contract with them in the future but creates no liability in regard to
that future contract
Liquidated and A fixed sum that is specified in the contract and which the contractor is
ascertained assessed as a measure of damages that the Government will suffer for each
damages (LAD) day the work remains incomplete beyond the expiration of the contract time.
The sum usually stated a daily rate is recovered from the contractor. The rate
of LAD should be reasonable, and justifiable under the circumstances.
Liquidated See ‘Liquidated and ascertained damages’.

damages
Lump sum A fixed price for contract work, not intended to be adjusted in any way either
by variation or remeasurement. A lump sum contract therefore is a contract for
an agreed amount of work for a lump sum of money.
Lump sum Written agreement under which the Government agrees to pay a contractor a
contract specified amount, for completing an agreed scope of work (e.g. involving a
variety of items of work which are based on drawings and specifications set out
in the contract) without requiring a measurement of quantities involved.
Main contractor Chief contractor who has a contract with the Government, and has the full
responsibility for its completion. A main contractor undertakes to perform a
complete contract, and may employ (and manage) one or more subcontractors
to carry out specific parts of the contract.
Method of Procedure used in converting requirements or requisitions into purchase orders

procurement or contracts. Methods of procurement include (1) open competitive tender, (2)
selective competitive tender, (3) direct negotiations, and (4) direct purchase
from internal pool of contractors/suppliers.
Needs See ‘Specifications’.

statement
Negotiated Contract awarded on the basis of a direct agreement with a contractor, without
contract going through the competitive tendering process.
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Glossary
Term Definitioni
Nominated sub- A contractor whom the main contractor usually employs under instruction from
contractor the Government pursuant to terms of the contract. Usually contractors for
specialist works, such as mechanical and/or electrical works.
Nominated A supplier whom the main contractor usually employs under instruction from
suppliers the Government pursuant to terms of the contract. Usually suppliers of goods
not widely available such as some plant/equipment or a particular brand of
plant/equipment which the designer considers is the most suitable for the
particular job.
Non-completion Not practical completion. See ‘Practical completion’
Non-compliance Not compliance. See ‘Compliance’.
Non- Not conformance. See ‘Conformance’.

conformance
Notice of tender Document used in sealed-tender procurement procedures through which the
Government advises the potential suppliers of (1) statement and scope of
work, (2) specifications, (3) schedules or timelines, (4) contract type, (5) data
requirements, (6) terms and conditions, (7) description of goods and/or
services to be procured, (8) general criteria used in evaluation procedure, (9)
special contractual requirements, (10) technical goals, (11) instructions for
preparation of technical, management, and/or cost proposals. Notices of tender
are publicly advertised and contractors/suppliers respond with a detailed
tender, not with only a price quotation. They provide for negotiations after
sealed tenders are opened, and the award of contract may not necessarily go
to the lowest tenderer.
Open tender  Tender process that is open to all qualified tenderers and where the sealed
tenders may be opened in public for scrutiny and are chosen on the basis of
price and quality. Also called ‘competitive tender’ or ‘public tender’.
 Tender submitted in response to open competitive tender request/invitation.
Payment Document verified by an officer of the Government (usually the ‘Superintending

certificate Officer’ named in the contract) that the noted work has been completed and is
approved for payment by the Government to the contractor.
Performance Written guarantee from a third party guarantor (usually a bank or an insurance
bond company) submitted to a principal (i.e. the Government) by a contractor on
winning the tender. Performance bond ensures payment of a sum (not
exceeding a stated maximum) of money in case the contractor fails in the full
performance of the contract. These bonds usually cover 100 percent of the
contract price and replace the tender bonds on award of the contract.
Post tender Discussions between the Government with the prospective contractors
clarification (suppliers), after the receipt of tenders but before the award of contract. These
negotiations are supposed to be confined to clarification of any points; price
changes are normally ruled out.
Post tender See ‘Post tender clarification’

negotiation
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Glossary
Term Definitioni
Practical Stage or designated portion of a construction project that is sufficiently

completion complete in accordance with a contract for the Government to occupy and/or
utilise it for its intended use, without undue interference.
Preliminaries Matters which feature at the beginning of a bill of quantities or summary of

tender, which are relevant to the contractor in terms of his obligations and
responsibilities and which will therefore influence his costings. These would
include such items as names of clients and consultants, insurance
requirements, length of contract, descriptions of the site in terms of its access,
working areas and adjacent buildings etc, a detailed description of the work to
be undertaken and the order in which it should be tackled.
Preliminary The second phase of a project's design process. During this phase ancillary
design space is developed and dimensions are finalized. Outline specifications are
developed into technical specifications; sections are delineated and elevations
are defined.
Pre-qualification Preliminary stage in a tender process where it is determined if an applicant has

the requisite resources and experience to complete the job as required.
Pre-qualification Screening of potential contractors, suppliers, or vendors (on the basis of factors
of tenderers such as experience, financial ability, managerial ability, reputation, work
history, etc.) to develop a list of qualified tenderers who will receive the letter
of invitation to tender.
Prime cost sum An amount included in a bill of quantities or summary of tender to cover a
particular bit of work or supply of materials to be carried out by a nominated
sub-contractor or a supplier.
Project The erection, construction, alteration, repair, or improvement of any plant,

structure, building, road, or other improvement.
Project The use of integrated systems and procedures by a team of professionals

management during project design and construction. As applied to a construction project,
project management can be used synonymously with construction
management.
Provisional sum A sum included in a bill of quantities or summary of tender for work that is
required but cannot be sufficiently designed or specified at the outset of the
contract.
Private finance A form of partnership between the private and public sector which is normally
initiative (PFI) used for high risk/high value contracts, principally to raise money for higher
value projects
Procurement The process of obtaining work, supplies and services - covering acquisition
from third parties and from in-house providers - from preparation and
processing of a requisition through to approval of the invoice/claim for
payment. The process spans the whole life cycle from identification of needs,
through to the end of a services contract or the end of the useful life of an
asset.
Revision 0 : March 2009 xxi

Glossary
Term Definitioni
Procurement The group of officers who are authorised under the Government’s procurement
board procedures to approve the award of a particular tender to a
contractor/supplier.
Professional Consultants arrange insurance to cover their liability for damages and costs due
indemnity to breaches of their professional duty caused by neglect, error or omission. It
insurance also covers costs of liability and their defence arising out of dishonest or
fraudulent acts. Insurers usually reserve their right to take all reasonable steps
of recovery against any party. Contractors with a design responsibility will also
be required to obtain such insurance.
Public liability The insurance taken out by the contractor for third party claims. Under the
insurance contract the contractor is usually required to indemnify the Government for any
expense, loss, liability, claim or proceedings under statute or common law in
respect of which personal injury or death is caused by the carrying out of the
works other than that caused by the act or neglect of the employer.
Additionally, the contractor is usually required to insure his obligation to
indemnify the Government for any damage to property to the extent that it is
due to negligence of the contractor.
Public private Very similar to a PFI arrangement, but the aim is centered more on service
partnership delivery than finance.
(PPP)
Public tender See ‘Open tender’.
Purchasing Also known as procurement, purchasing is the acquisition of goods or services.
Qualified Potential tenderer who meets the minimum standards of experience, financial
tenderer ability, managerial ability, reputation, and work history for a specified class of
supplies, services, or projects (works).
Quotation Formal statement of promise (submitted usually in response to a request for

quotation) by potential supplier to supply the goods; or services required by a
buyer; or works required by a contractor; at specified prices, and within a
specified period. It may also contain terms of sale and payment, and
warranties. Acceptance of quotation by the Government constitutes an
agreement binding on both parties.
Reasonable Price that provides the best total value—comprising of availability, delivery
price time, fitness for purpose, payment terms, quality, quantity, and service. A
reasonable price is not necessarily the lowest price.
Rejected tender Response to an invitation to tender that is unacceptable, because (1) another
tender has been chosen, (2) tender fails to fall within the established
competitive range, (3) absence of competitive tenders invalidates the tendering
exercise, (4) invitation to tender is readvertised, (5) tender is void due to
irresponsibility of the tenderer, or rigging or other fraud is discovered.
xxii Revision 0 : March 2009

Glossary
Term Definitioni
Request for Request made typically during the project planning phase where a Government
information cannot clearly identify product requirements, specifications, and purchase
options. Such requests clearly indicate that award of a contract will not
automatically follow.
Request for Document used in soliciting price and delivery quotations that meet minimum
quotation (RFQ) quality specifications for a specific quantity of specific goods and/or services.
RFQ are usually not advertised publicly, and are used commonly for (1)
standard, off-the-shelf items, (2) items built to known specifications, (3) items
required in small quantities, or (4) items whose purchase price falls below
sealed-tender threshold. Suppliers respond to a RFQ with firm quotations, and
generally the lowest-priced quotation is awarded the contract.
Retentions An amount, usually 5-10% held back from the sum due to a contractor, for
payment at a later date. The amount will be specified in the conditions of
contract. Retentions are usually released on the basis of half at the issue of the
certificate of practical completion, the remainder at the issue of the final
certificate. Note: the Government of Malaysia’s forms of contract do not
require retentions.
Retention fund See ‘Retentions’.
Retention sum See ‘Retentions’.
Risk Factors that may adversely affect the successful completion of a project.
Schedule of A list of works activities or items usually priced at a rate per unit.
rates
Schematic See ‘Preliminary design’.

design
Scope of work Description (usually in chronological division) of work to be performed under a

contract or subcontract in the completion of a project.
Sealed tender Document enclosed in a glued (sealed) envelope and submitted in response to
invitation to tender (ITT). Sealed tenders received up to the deadline date are
generally opened at a stated time and place, and evaluated for award of a
contract.
Selective tender Invitation to tender sent only to selected contractors, sellers, or vendors who
have been pre-qualified through a screening process.
Special Conditions of a contract that are peculiar to the project under consideration
provisions to and do not fall under the general conditions.
conditions of
contract
Revision 0 : March 2009 xxiii

Glossary
Term Definitioni
Specification A description of requirements and standards to which the goods, works or

services should conform. Also known as a statement of needs (needs
statement), a statement of requirement, an operational requirement, or a brief.
Its purpose is to present prospective contractors/suppliers with a clear,
accurate and full description of the Government’s needs, to enable them to
propose a solution to meet them
Stakeholder An individual or organisation that has an active interest or a stake in a

particular organisation or issue. For example, funders, members, contractors,
purchasers, trustees, beneficiaries, volunteers and paid staff are all
stakeholders in a voluntary organisation
Sub-contract Agreement, purchase order, or any such legal instrument issued under a main
contract (by the main contractor to a third party—the subcontractor), calling
for the performance of a defined piece of work or production and/or delivery of
specified goods or services. Subcontracts contain special terms and conditions
that are unique to the main contract, and flow-down provisions that proceed
from it.
Sub-contractor Junior or secondary contractor who contracts with a main contractor (and not
the Government) to perform some or all of the main contractor's contractual-
obligations under the main contract.
Summary of Lists of jobs, like those in bills of quantities except that they contain no
tender quantities. Rates may be inserted by tenderers
Supplementary Document that describes additions, alterations, or removal, of the scope (or the
agreement terms) of a contract, mutually agreed upon by the parties to the contract.
Supplementary See ‘supplementary agreement’.

contract
Supplier  An individual or firm who supplies and/or fabricates goods, materials or

equipment for a specific portion of a construction project but does not
perform any labor on the project.
 One that sells goods, materials or equipment not fabricated to a special
design.
Survey Survey, explore, test, and undertake overall assessment on landscape, geology
and water for planning, design, implementation, operations and integrated
management of the project; provide feasibility assessment and required
information on the exploration results for construction; carry out rock
exploration, design, management and monitoring activities.
Tender Complete proposal (submitted in competition with other tenderers) to execute

specified work(s) within prescribed time, and not exceeding a proposed amount
(that usually includes labor, equipment, and materials). The tender-receiving
party may reject the tender, make a counter offer, or turn it into a binding
contract by accepting it. See also offer and proposal.
xxiv Revision 0 : March 2009

Glossary
Term Definitioni
Tender bond Written guarantee from a third party guarantor (usually a bank or an insurance
company) submitted to a principal (eg Government) by a contractor (tender)
with a tender. Tender bond ensures that on acceptance of tender by the
Government the contractor will proceed with the contract and will replace the
tender bond with a performance-bond. Otherwise, the guarantor will pay the
Government the difference between the contractor's tender and the next
highest tenderer. This difference is called liquidated damages which cannot
exceed the amount of the tender bond. Also called tender guarantee or tender
surety.
Tender box Box where tender documents (or proposal) must be lodged by the tender date
to be eligible for consideration.
Tender date Prescribed date and time by which a tender must be submitted (or lodged in
the tender depository) to be considered. Also called tender time.
Tender Documents required to be submitted in response to an invitation to tender.

documents These include the prescribed tender form, drawings, specifications, time lines,
charts, price breakdowns, etc. Tenders not accompanied by all the required
documents are considered incomplete or non-compliant tenders, and are
usually automatically rejected.
Tenderer Contractor, supplier, or vendor (services provider) who responds to an

invitation to tender. Also called offeror or quoter.
Tender The formal process of examining contractor’s (or supplier’s) tenders to identify
evaluation which provides best “value for money”.
Tender The group of officers who are authorised under the Government procurement
evaluation procedures to analyse received tenders. They also make recommendations on
committee who is awarded the contract.
Tender form See ‘Form of Tender’
Tender Alternative term for tender bond.

guarantee
Tender opening Stage in a tender process where the received tender-envelopes are opened and
examined by the advertiser (ie the Government ) of an invitation to tender
(ITT). In an open or public tender opening, the tenderers (and other parties)
are allowed to witness the process and inspect the tenders, in a closed opening
only the officers of the Government are present.
Tender opening The group of officers who are authorised under the Government’s procurement
committee procedures to witness, administer and record the tender opening process.
Tender price Price offered by tender (contractor, supplier, vendor) for a specific work, supply
or service, and valid only for the specified period.
Turnkey A contractor who is responsible for the whole process of design, procurement,
contractor construction and installation work in a project. When transferred to the
Government, a turnkey project is fully ready for use.
Revision 0 : March 2009 xxv

Glossary
Term Definitioni
Value A process of reviewing all aspects of a design to re-examine all assumptions

engineering and minimize the life-cycle costs of the project.
Value for money Utility derived from every purchase or every sum of money spent. ‘Value for
money’ is based not only on the minimum purchase price (economy) but also
on the maximum efficiency and effectiveness of the purchase.
Variation Changes in work permitted under the contract. See also ‘Variation order’.
Variation of Provision in a contract for increasing or decreasing the contracted price for
price clause labor, material, etc., in step with an agreed upon benchmark such as the cost
index issued by the Department of Statistics.
Variation order Document issued by the Government, directing variations (changes) in a

(VO) contract as authorised under the contract's variation clause.
Variation order The group of officers who are authorised under the Government’s procurement
committee procedures to approve variation of works under a contract.
Work Construction and services required by the contract documents, as amended by

contract modifications, whether completed or partially completed, including all
labor, materials, equipment, tools, and services provided or to be provided by
the contractor to fulfill the contractor's obligations. The work may constitute
the whole or part of the project.
_______________________
i
Part of the items in the Glossary was extracted / modified from: www.businessdictionary.com.
xxvi Revision 0 : March 2009

DID MANUAL
VOLUME 10
CONTRACT ADMINISTRATION
PART I : INTRODUCTION
CHAPTER 1
INTRODUCTION
Chapter 1 – INTRODUCTION
Table of Contents
Table of Contents ..................................................................................................................... 1-i

1.1 INTRODUCTION .......................................................................................................... 1-1
1.2 SCOPE OF VOLUME 10................................................................................................. 1-1
1.3 CONTENTS OF VOLUME 10 .......................................................................................... 1-1
1.3.1 Part I : Introduction ........................................................................................1-1
1.3.2 Part II : Pre-contract .......................................................................................1-1
1.3.3 Part III : Post-contract ....................................................................................1-1
1.4 DOCUMENT BINDING, AND UPDATES............................................................................1-2
1.5 FLOWCHARTS, PROCEDURES, GUIDELINES, AND APPENDICES ......................................1-2
1.5.1 Flowcharts......................................................................................................1-2
1.5.2 Procedures .....................................................................................................1-2
1.5.3 Guidelines / Guidance Notes ............................................................................1-2
1.5.4 Reference Documents .....................................................................................1-2
1.5.5 Appendices .....................................................................................................1-3
1.5.6 References .....................................................................................................1-3
1.5.7 Volume 10A – Reference Documents................................................................1-3
1.6 DOCUMENT CHANGE CONTROL AND APPROVAL ............................................................1-3
APPENDIX 1A Pro-Forma : Document Change Control / Approval ..........................................1A-1
APPENDIX 1B Pro-Forma : Amendment Record Sheet for Revision ........................................1A-2
Revision 0 : March 2009 1-i

1-ii Revision 0 : March 2009

1 INTRODUCTION
1.1 INTRODUCTION
This chapter provides:
 An overview of the scope, contents and document structure of Volume 10.

 Procedures on updating the document.
1.2 SCOPE OF VOLUME 10
Volume 10 covers all general procedures and practices pertaining to contract administration,
commencing from tender stage until the completion of defects liability stage.
It is aimed to be the first point of reference for all matters pertaining to DID contract procedures,
e.g.
 the tender processes,

 the compilation of contract documents,
 contract administration, and
 close-out for the contracts.
1.3 CONTENTS OF VOLUME 10
The chapters within the Volume 10 are grouped to 3 parts, and covering subjects, as follows:
1.3.1 Part I : Introduction
Part I gives a whistle-stop tour of the whole DID organization structure and procurement processes,
including an outline on project implementation.
It serves as background information only.
1.3.2 Part II : Pre-contract
Although pre-contract works are usually not considered as ‘contract administration’, it is part of the
procurement process and included in Volume 10 for ease of reference.
Part II covers the DID general procurement processes, and the procedures for preparation of tender
documents (for works) up to the acceptance of tender (or award of contract).
1.3.3 Part III : Post-contract
Post-Contract administration can be defined as the coordination of the actions required for the
performance of the contract, including guidance and monitoring necessary to assure that all
contractual obligations are fulfilled by the parties to the contract, i.e. the Department of Irrigation
and Drainage (representing the Government) and the Contractor.
Part III covers the contract administration procedures and best practices.
It also includes explanatory notes on contractual issues such as delays and extension of time,
practical completion and disputes resolution.
Revision 0 : March 2009 1-1

1.4 DOCUMENT BINDING, AND UPDATES
Volume 10 is a “live document” and shall be updated from time to time.
For this purpose, the document is ring bound.
Upon receipt of a document change notification, the superseded page/document shall be removed
and replaced by the new page/document.
Changes must be recorded in the ‘Registration of Amendments’ sheet at the front of the Volume.
1.5 FLOWCHARTS, PROCEDURES, GUIDELINES, AND APPENDICES
Where applicable, the information are presented in the following manner and order:
1.5.1 Flowcharts
The flowchart provides an overview of the processes set out within the chapter, and the sequence
and interrelationship between the processes.
1.5.2 Procedures
The procedures section describes work processes outlined in the flowchart.
1.5.3 Guidelines / Guidance Notes
The guidelines or guidance notes on contract administration practices are set out after the
procedures. These shall be presented in bullet-point format, as far as possible.
The guidelines or guidance notes are summaries only. For further details, reference must be made
to the relevant and current DID Circulars, Treasury Circulars and Treasury Instructions. See
‘References’.
1.5.4 Reference Documents
A list of Reference Documents is included in each chapter. Reference documents are
- sample documents
- and other documents Comment [scho1]: “”list of sample documents
(which are compiled under Volume 10A’ deleted.
as may be relevant to the chapter.
The Reference Documents are compiled under Volume 10A – Reference Documents.
1-2 Revision 0 : March 2009

1.5.5 Appendices
The Appendix or Appendices are appended at the end of each chapter, and generally include
checklist(s) of work processes relating to that chapter.
1.5.6 References
A list of the relevant DID Circulars, Treasury Circulars and Treasury Instructions are included at the
end of each chapter.
1.5.7 Volume 10A – Reference Documents
Sample documents or pro forma documents are set out in Volume 10A of the DID Manual.
1.6 DOCUMENT CHANGE CONTROL AND APPROVAL
An officer may propose changes to the contents or procedures set out in Volume 10, by using the
Document Change Control Form.
The officer should state the proposed amendments together with reasons for the amendments in the
Amendment Record Sheet.
Upon approval, the new document shall be inserted, and the Registration of Amendments sheet at
the front of the Volume 10 must be updated.


DID MANUAL
Volume 10
Contract Administration
Chapter 1
– Introduction to Volume 10
APPENDIX 1A
Pro-Forma
- Document Change Control / Approval
Revision Number : Revision 0

Revision Date : March 2009
APPENDIX 1A PRO-FORMA : DOCUMENT CHANGE CONTROL/APPROVAL
TO :…………………………………………….
CHANGE REQUEST
DOCUMENT REFERENCE PROPOSED AMENDMENT
DID MANUAL VOLUME 10
................................................................... ........................................
[OFFICER] Date
Name :
Designation:
Contact No :
APPROVAL RECORD
 Approved for Implementation  Not Approved
Remarks :
................................................................. ..............................….......
[APPROVING OFFICER] Date
Name :
Designation:
Contact No :
Revision 0 : March 2009 1A-1

DID MANUAL
Volume 10
Chapter 1
– Introduction to Volume 10
APPENDIX 1B
Pro-Forma
- Amendment Record Sheet for Revision

APPENDIX 1B AMENDMENTS RECORD SHEET FOR REVISION
AMENDMENT RECORD SHEET FOR REVISION : _______
TO:……………………………………….
The amendment enclosed herewith is the revision to your DID Manual.
DOCUMENTS ISSUED
REMOVE INSERT AMENDMENT/ REASON FOR
DOCUMENTED AMENDMENT/
PROCEDURE DOCUMENTED
PROCEDURE
Volume 10, Chapter ……….
Page ____ to Page ___ to

Page ___, Rev. Page ___, Rev. ___
___
Attachment ___, Attachment ___,

Page ___ to Page Page ___ to Page
___ , Rev. ___ ___ , Rev. ___
Volume 10, Chapter ……….
Page ____ to Page ____ to

Page ___, Rev. Page ___, Rev. ___
___
Attachment ___, Attachment ___,

Page ___ to Page Page ___ to Page
___ , Rev. ___ ___ , Rev. ___
After Revision : ____ has been inserted, please complete the Registration of Amendments Sheet on
Page ___ of your Manual.

DID MANUAL
VOLUME 10
CHAPTER 2
DID ORGANISATION STRUCTURE

Chapter 2 – DID ORGANISATION STRUCTURE
Table of Contents
Table of Contents .......................................................................................................................2-i

List of Figures ...........................................................................................................................2-ii
2.1 INTRODUCTION ............................................................................................................. 2-1
2.2 BACKGROUND ................................................................................................................ 2-1
2.3 CORPORATE INFORMATION............................................................................................ 2-2
2.4 ORGANISATION STRUCTURE .......................................................................................... 2-3

List of Figures
Figure Description Page
Figure 2.1 Organisation Chart 2-4

2 DID ORGANISATION STRUCTURE
2.1 INTRODUCTION
 Brief history and background information of the DID.

 An overview of the organisation structure of the DID.
2.2 BACKGROUND
"It was the vital need for irrigation facilities - to open new areas for a fledging paddy growing
industry - that provided the impetus for the establishment of the Department of Irrigation and
Drainage or the DID as it is popularly known."
Prior to the formation of DID in 1932, all works in connection with drainage and irrigation was
related to by the Public Works Department. Following the slump in the tin and rubber industries in
the late twenties and the worsening rice situation in the country, the then British High Commissioner
appointed in 1930 a Rice Cultivation Committee to determine "the best steps to be taken in order to
encourage rice cultivation in Malaya".
The Committee made a comprehensive survey and published its report in 1931. One of its main
recommendations was "that an Irrigation and Drainage Department should be established which will
execute in the Straits Settlement and Federated Malay States and advisory in the Unfederated Malay
States, which will absorb the Hydraulics Branch of the Public Works Department, Federated Malay
States". This recommendation was accepted as a separate department on the 1st. of January 1932.
During the first 10 years of the Department's existence up to the Japanese occupation, 20,000
hectares of new padi land were developed and improved, irrigation and drainage facilities were
provided to some 50,000 hectares of existing padi lands. The Department took over the maintenance
of drainage works on 40,000 hectares of estate and smallholder lands in Selangor and Perak.
Reconstruction of these works and their extension raised the total area to about 80,000 hectares in
1942. During the Japanese Occupation, little or no new development took place apart from the
completion of some structures that were partly finished when the war broke out. In the drainage
areas, neglect resulted in drains being silted up and overgrown with plants, and in some instances
almost entirely filled up.
On the re-occupation of Malaya in 1945, emphasis was given to the rehabilitation of irrigation works.
The established policy of the Government was to reduce the country's dependence on imported food
supplies, with emphasis towards self-sufficiency in rice, and every effort was made to increase the
local production of rice. Following the Independence of Malaya in 1957, greater emphasis was placed
on increasing the income and employment opportunities of the rural poor.
With this objective, the irrigation and drainage programmes were formulated to provide adequate
irrigation facilities to enable double cropping of padi lands, and drainage facilities for improved
production of tree crops especially in small holdings.

Subsequent to the formation of Malaysia in 1963, additional State Drainage and Irrigation
Departments were established in Sabah and Sarawak and this increased the number of State
Departments to thirteen with the Federal Headquarters being responsible for the overall drainage
and irrigation matters in the country. The significant increase in development since 1957 is reflected
in the areas provided with irrigation facilities increasing from 205,000 hectares (3,000 hectares with
double cropping facilities) to 332,000 hectares (249,000 hectares with double cropping facilities) by
the end of 1981. The areas provided with drainage facilities, too, has increased from 142,000
hectares to 476,000 hectares in the same period.
In 1970/71, severe floods occurred in many parts of West Malaysia and the situation was so serious
that a national disaster had to be declared on January 5th. 1971. Subsequent to this occurrence,
flood mitigation and hydrology was made an additional responsibility of the Department from 1972
onwards.
From 1986, coastal engineering has become an added function of the DID. The River Management
Conference was held on 1988, and a subsequently lead to the establishment of the River Engineering
Division in 1990.
The Department has moved from the Ministry of Agriculture (MOA) to the Ministry of Natural
Resources & Environment (NRE) on March 27th, 2004 and taken on new and expanded
responsibilities. Today, the DID's duties encompass :
 Hydrology and Water Resources
 River Management
 Flood Mitigation
 Coastal Management
 Stormwater Management
The DID can look back on its history of successfully executed programmes with pride. The
experience and knowledge that it has gained, together with its current dynamism have placed the
Department in the forefront as the custodian of the nation's water resources.
2.3 CORPORATE INFORMATION
Vision
To be a world class organization by the year 2010.
Mission
To manage water resources, river basins, flood risks and coastal zones to achieve environmental
sustainability and enhanced quality of life.
Objective
To provide engineering services which are beyond the capability of the target group itself and
subsequently to ensure optimum land utilization and more efficient management of the nation's
water resources.

Core Values
Doing The Right Things, and Doing Things Right
with
 Quality
 Integrity
 Caring
Q Policy
DID Malaysia is committed to an excellence work culture focused on continuous improvement

towards customer and employee satisfaction.
2.4 ORGANISATION STRUCTURE
The organisation structure of the DID is set out in Figure 2.1.
The Department consists of
 15 divisions
 15 state departments
 special project teams.
The DID is headed by the Director-General and assisted by Deputy Director-General (Development)
and Deputy Director-General (Operation).
Each division and state department is headed by a Director, and assisted by Deputy Directors and
officers.
The special projects are under the purview of the Project Management Division, and each project is
headed by its Project Engineer.
Please refer to the DID official website for the current name and contact of the Director General,
Deputy Director General, and Division and State Directors : http://www.water.gov.my/.
The organisation structure and corporate information of each division and state can be obtained
through the links to the website.

DIRECTOR GENERAL
DEPUTY CORPORATE DEPUTY DIRECTOR

DIRECTOR GENERAL DEVELOPMENT DIRECTOR GENERAL PROJECT
(DEVELOPMENT) (OPERATIONS) MANAGEMENT
LEGAL ADVISOR
FLOOD MANAGEMENT RTB
MITIGATION SERCVICES MSC
STATE
HYDROLOGY & RTB
RIVER
WATER SUNGAI MUDA
RESOURCES
JOHOR KEDAH
MECHANICAL &
COASTAL RTB
ELECTRICAL
MELAKA PERLIS KUALA LUMPUR
SERVICES
URBAN TRAINING &

N. SEMBILAN KELANTAN RTB
DRAINAGE CAREER
SUNGAI PERAI
DEVELOPMENT
STRUCTURAL SELANGOR TERENGGANU

GEOTECHNICAL HUMID TROPIC RPSA BERIS
AND DAM CENTRE
W.P.PUTRAJAYA PAHANG
QUANTITY
INFORMATION UPPP
SURVEYING &
TECHNOLOGY KELANTAN
CONTRACT
PERAK SABAH
QUALITY &
RTB
PERFORMANCE
SUNGAI KLANG
AUDIT
PULAU PINANG SARAWAK
SMARTCONTROL RANCANGAN
LABUAN CENTRE PENGAIRANMUDA
Figure 2.1 Organisation Chart
 Organisation chart of DID, Malaysia effective from 1st June 2008. Please refer to the official
website, http://www.water.gov.my, for the current chart and other corporate information.

DID MANUAL
VOLUME 10
CHAPTER 3
PROCUREMENT
– OVERVIEW
Chapter 3 – PROCUREMENT- OVERVIEW
Table of Contents

List of Tables.............................................................................................................................3-ii
3.1 INTRODUCTION ............................................................................................................. 3-1
3.2 GENERAL PROCUREMENT STRATEGY .............................................................................. 3-1
3.3 METHODS OF PROCUREMENT......................................................................................... 3-3
3.3.1 Quotation Exercise ............................................................................................. 3-3
3.3.2 Tender Exercise ................................................................................................. 3-3
3.3.3 Direct Negotiation .............................................................................................. 3-3
3.4 METHODS OF PROCUREMENT FOR GOODS AND SERVICES .............................................. 3-4
3.4.1 Procurement for Goods ...................................................................................... 3-4
3.4.2 Procurement for Services.................................................................................... 3-5
3.5 PROCUREMENT OPTIONS FOR WORKS............................................................................ 3-5
3.5.1 General Principles .............................................................................................. 3-5
3.5.2 Conventional Or Traditional ................................................................................ 3-6
3.5.2.1 Advantages under the traditional lump sum contract ............................. 3-7
3.5.2.2 Disadvantages under the traditional lump sum contract......................... 3-7
3.5.3 Design And Build................................................................................................ 3-7
3.5.3.1 Advantages associated with Design and Build ....................................... 3-8
3.5.3.2 Disadvantages associated with Design and Build ................................... 3-8
3.5.4 Private Finance Initiative (PFI) ............................................................................ 3-8
3.5.4.1 The Advantages of PFI ........................................................................ 3-9
3.5.4.2 The Disadvantages of PFI .................................................................... 3-9
3.5.5 Forms Of Contract.............................................................................................. 3-9
3.6 REFERENCE DOCUMENTS ..............................................................................................3-10
3.7 REFERENCES.................................................................................................................3-10
APPENDIX 3A Procurement of Goods.................................................................................... 3A-1
APPENDIX 3B Procurement of Works.................................................................................... 3A-9
APPENDIX 3C Procurement of Services ............................................................................... 3A-15

List of Figures
Figure 3.1 Government Procurement 3-2
List of Tables
Table Description Page
Table 3.1 Procurement of Goods 3-4

3 PROCUREMENT
3.1 INTRODUCTION
 An overview of the procurement strategy

 An outline of DID’s procurement strategy for supplies, works and services.
 The standard forms of contract used for DID projects
3.2 GENERAL PROCUREMENT STRATEGY
“Procurement” is about making choices and can be defined as the process of acquiring goods (or
supplies), works and services from suppliers, contractors and consultants, as the case may be as
shown in Figure 3.1.
The procurement process covers the whole life cycle from identification of needs, through to the
satisfactorily delivery of goods or service or handing over of completed works.
Procurement, therefore, has a broader meaning than that of simply purchasing. It is concerned with
securing services and products that best meet the needs of users and stakeholders. The key
objectives of the procurement should be met.
The Treasury1 requires good governance practices when procuring for the Government through
tenders. The Project Team should be mindful of these principles when acquiring goods, works or
services:
 Public accountability.
 Transparency.
 Value for Money.
 Open and fair competition.
 Fair dealings.
The determination the most acceptable price for the procurement of works, goods or services
generally shall be carried out through:
 quotation exercise, or
 tender exercise, or
 negotiation.
1
Surat Pekeliling Perbendaharaan Bil. 5 Tahun 2007 - Tatacara Pengurusan Perolehan Kerajaan
Secara Tender

Government
Procurement
Supplies
A brief outline on
procurement process
for supply of goods is
set out in Appendix 3A
of Chapter 3 Works
An overview on
procurement and
procurement strategy
for Works are covered
in Chapter 3. Services
The guidelines and

procedures for A brief outline on
Construction procurement process
Management are set for services is set out
out in DID Manual in Appendix 3C of
Volume 11. Chapter 3
The guidelines and

procedures for
Contract
Administration are set
out in DID Manual
Volume 10.
Figure 3.1 Government Procurement

3.3 METHODS OF PROCUREMENT
3.3.1 Quotation Exercise
The quotation exercise is used where the estimated value of works, goods or service does not
exceed RM500,000.00 per year. (Please refer to Treasury Circulars for current thresholds).
The quotation exercise is a simplified version of the tender exercise.
3.3.2 Tender Exercise
The tender processes involve a combination of ‘Open’ and ‘Selective’ tendering methods. The
following are some of the often used processes.
 Open tender - Suppliers, contractors or consultants are invited through advertisement. All
respondents to the advertisement who request tender documentation will be invited to submit a
tender. There is no pre-qualification questionnaire or short-listing stage prior to invitation to
tender. Minimum standards of suitability may be lay down for respondent, failing which no tender
document will be issued.
 Selective tender - Only suppliers, contractors or consultants who are short-listed will be invited to
submit a tender. Care must be taken to ensure that the number invited is adequate to provide
competition. The tender list may be drawn from DID’s existing database, or through a pre-
qualification exercise.
 Pre-Qualification Exercise - Tenderers shall be invited through advertisements. All respondents to

the advertisement will be given a set of questionnaires to complete. The responses are assessed
based on agreed criteria. The tender list is prepared, based on the respondents who qualified
under the assessment, and shall be invited to tender.
 ‘Two Envelope’ Tenders – This method is often used in private sector only and not applicable on
Government Projects. The purpose of the "two-envelope" tender method is to eliminate any
perceived or actual pre-judgment that may develop for, or against, lower or higher priced tenders
before non-price criteria are evaluated. The ‘technical bid’ and the ‘financial bid’ are evaluated
separately, by separate evaluation committees.
Refer to Chapter 7 for more details on the process and procedures.
For Government projects all procurement whether works, supply of goods or service exceeding
RM500,000.00 per year shall be invited through tender.
3.3.3 Direct Negotiation
Goods, services or works may be directly sourced through direct negotiations, where usually there is
no competitive process.
Direct negotiation is permitted where a directive is given by the Ministry of Finance to procure
particular goods, services or works from an identified party.
Detailed written records of negotiations must be maintained to avoid disputes, and provide
transparency.
The process and procedures shall be as described in Appendix 3B (Procurement of Works).

3.4 METHODS OF PROCUREMENT FOR GOODS AND SERVICES
The general procurement strategy of goods and services are outlined in Section 3.4.
Reference must be made to the current Government Circulars on the purchasing of goods and
services, in respect of:
 The financial thresholds for purchasing goods and services and by what method
 The standard terms and conditions of contract
 The procedure for opening tenders, evaluating them and awarding contracts
 The non-commercial considerations that need to take place in advertising tenders and tender
evaluation.
3.4.1 Procurement for Goods
The general procurement route for supply of goods for Government projects is as follows:
Table 3.1 Procurement of Goods
Value of each item per annum Procurement Option
Exceeding RM500,000 Tender

Exceeding RM100,000 but not exceeding Quotation from at least 5 registered suppliers
RM500,000
Exceeding RM50,000 but not exceeding Quotation from at least 5 registered Bumiputera
RM100,000 suppliers
Not exceeding RM50,000 Direct purchase or negotiations from registered
or non registered suppliers (both Bumiputera and
non Bumiputera).
Reference : AP170 and 171
Procurement for Emergency Cases
Exemptions to the Treasury Instructions are permitted for emergency cases only subject to the
conditions stated in Treasury Instruction 173.2.
A brief outline on procurement process for supply of goods is set out in Appendix 3A (Procurement of
Goods) of this Chapter.

3.4.2 Procurement for Services
The scope of services is divided into two categories, namely:
a) Consultancy Services
b) Non Consultancy services
The consultancy services encompasses consultancy services for both physical and non physical
development and other category required by the Ministry/ Department and decided by Treasury from
time to time.
The non consultancy services covers services such as provision of training and courses, maintenance
and repairs, cleaning, rental and building management, security and others.
A brief outline on procurement process for services is set out in Appendix 3C (Procurement of
Services) of this Chapter.
3.5 PROCUREMENT OPTIONS FOR WORKS
3.5.1 General Principles
For Government projects the following procurement routes are commonly adopted:
a) Work order or indent - value of works not exceeding RM100,000 and shall be based on
approved Schedule of Rates for Civil Engineering and Building Works. For Electrical Work the
value shall not exceed RM50,000 and shall be based on approved Schedule of Rates for
Electrical Works.
b) Requisition works - minor and repair works (which do not alter the original structure) which
value do not exceed RM100,000 and shall be based on approved Schedule of Rates.
c) Non requisition works – works which are not based on approved Schedule of Rates and the
value of works does not exceed RM500,000.
d) Works which estimated value exceeds RM500,000 must be procured through tender, either
through conventional or design and build contract.
The procurement strategy should be consistent with the objectives of the project and should enable
the risks (i.e. uncertainties of time, cost and performance) to be controlled to achieve a successful
outcome. It is the outcome of a series of decisions which are made during the early stages of a
project and the chosen strategy influences the allocation of risk, the design strategy and the
employment of consultants and contractors. It has a major impact on the time scale and ultimately
the cost of the project.
The main types of procurement option commonly adopted by the Government are as follows:
a) Conventional or traditional : design by consultants (or in house) is completed before

contractors tender for, then carry out the construction works
b) Design and build : design and construction are both undertaken by a single contractor in
return for a lump sum price.

The chosen option should also reflect the Government’s technical ability and resources and the
amount of control over the process which the Government wishes to exert directly or indirectly.
Therefore, Project Head and/or Project Team must have a clear understanding of where the ultimate
authority and responsibility for controlling and managing the important risks lie.
There are a number of key factors to be considered when selecting a procurement option. These
include:
 the availability of in-house resources and experience;

 the project size and complexity;
 the importance of timescales and possible phased completion requirements;
 the importance of quality and issues surrounding whole-life use of the facility; and
 the availability of funding (in addition to setting and agreeing the budget for the project).
Whatever procurement route is chosen, sufficient time must be built into the overall programme to
allow for all planning stages to be fully completed (both before construction starts and during the
progress of the project). Good planning will include getting the construction sequence right,
assessing and managing project risks, and using value management to assess the contribution of
each part of the construction process. These steps will minimise the likelihood of delays, extra costs,
and waste/inefficiency.
The procurement routes briefly described in Sections 3.6 to 3.7 may be adopted for a DID project.
3.5.2 Conventional Or Traditional
Under the ‘conventional’ or ‘traditional’ contract, the contractor builds to a defined scope of work for
a fixed lump sum price. It is sometimes referred to as lump sum contract. The fixed lump sum price
contract may be based on drawings, specifications and quantities or based on drawings and
specifications only.
With this type of contract, the Design Team (whether in-house designers, or Consultants appointed
by the Government) are to fully develop the design prior to going out to tender.
The contract is with the main contractor who has responsibility only for the construction works.
If the design has been fully thought out, developed and frozen, then in theory, this type of contract
should provide a reasonable degree of cost certainty at tender stage.
However, the need to work to tight timescales may mean that a fully developed design cannot be
prepared in advance of tendering, in which case, subsequent design changes will invariably lead to
cost escalation

3.5.2.1 Advantages under the traditional lump sum contract
 Competitive fairness.
 Design-led, facilitating a high level of quality in design and construction is achievable as the
scope of the work is prescribed on an input basis.
 The Government retains direct contractual relationships with the design team, cost consultant
and main contractor.
 Price certainty and transfer of risk to the main contractor is achieved at contract award provided
no subsequent changes are instructed to the design.
 The procedure is well known, and changes to the works can be easily arranged and valued based
on known prices obtained in competition without necessarily excessive cost or time implications.
 Satisfactorily public accountability.
3.5.2.2 Disadvantages under the traditional lump sum contract
 The overall programme may be longer due to the need to produce a fully detailed design before
the project goes out to competitive tender and work starts on site i.e. no parallel working.
 No buildability input by contractor.
 The Government must have the resources and access to the expertise necessary to administer
the contracts of consultants and the main contractor since the traditional method often results in
adversarial relationship developing.
 Claims for delay and disruption can arise if the design is not fully detailed prior to agreeing the
contract sum or if the Government varies the design afterwards. Thus it could be open to abuse,
resulting in less certainty.
3.5.3 Design And Build
Under a design and build contract, a single contractor assumes the risk and responsibility for
designing and building the project in return for a fixed lump sum price.
Since it is a fast track procurement strategy, construction normally commences before the
completion of all detailed design but at the contractor’s risk.
The range of design and build options available ranges from “turnkey” where the Government has
little involvement in the design development or construction procurement process, to “develop and
construct” where the Government appoints the designers to develop the brief to a level of
sophistication which will leave the design and build contractor to develop the detail or specifications
elements.
Under design and build the risk is transfer to the contractor and the Government loses some control
over the project. Any requirement which is not directly specified in the Needs Statement or tender
documents will invariably constitute variation to the contract which are usually more expensive to
introduce after the contract is awarded compared with other types of procurement strategy.
Therefore the Needs Statement must be fully and unambiguously defined in the tender documents
(i.e. clear, accurate and delivered on time) and if the requirements are not specific, then the
performance specifications should be provided at the tender stage. Under this procurement option
the contractor is likely to deliver the greatest performance benefits to the Government through
innovation and standardisation, where appropriate output specifications are used.

Where in some circumstances where the design and build procurement contract is extended to cover
the maintenance and/or the operation of the facility for a substantial period, the contractor has
increased opportunity for adopting innovative solutions that provide greater value for money when
considering the whole life costs.
Design and Build contract may be procured through negotiation or tender process. See Appendix 3 –
Flow Chart on Procurement of a Design and Build Contract through Direct Negotiation.
3.5.3.1 Advantages associated with Design and Build
 Single point responsibility for design and cost risks (i.e. the Government has only to deal with
one firm).
 Price certainty is obtained before construction starts provided the Government’s requirements
are adequately specified and changes are not introduced.
 Potential for more economical construction due to early consideration of building methods
('buildability').
 Reduced total project time due to the possibility of early completion i because of overlapping
activities.
3.5.3.2 Disadvantages associated with Design and Build
 Difficulties in preparing adequate Government’s Requirements / Needs Statement. The

Government’s design needs must be properly specified as variations to the scope of the project,
once awarded, can be expensive.
 The Government has little control over design and quality standards once the contract is
awarded, as the building is specified on a performance basis. There is no design overview unless
separate check consultants are appointed by the Government for this purpose.
 Government has to commit itself before the detailed designs are completed.
 Relatively fewer capable local construction firms undertaking the design and build projects so
there is less real competition.
 Design liability offered by design and build contractors is limited.
3.5.4 Private Finance Initiative (PFI)
The Private Finance Initiative or PFI is a form of public-private partnership (PPP) that combines two
(2) procurement options, i.e.
 where the Government purchases capital items from the private sector, and
 where the Government the contracts-out the provision of public services from the private sector.
PFI differs from privatisation in that the public sector retains a substantial role in PFI projects, either
as the main purchaser of services or as an essential enabler of the project.
PFI differs from contracting-out in that the private sector provides the capital asset as well as the
services. The PFI also differs from other PPPs in that the private sector contractor also arranges
finance for the project.
Under the most common form of PFI, the private sector designs, builds, finances and operates
(DBFO) facilities based on ‘output’ specifications decided by public sector managers and their
departments.

The private sector already builds most public facilities but the PFI also enables the design, financing
and operation of public services to be carried out by the private sector. Under the PFI, the public
sector does not own an asset, such as a hospital or school but pays the PFI contractor a stream of
committed revenue payments for the use of the facilities over the contract period. Once the contract
has expired, ownership of the asset either remains with the private sector contractor, or is returned
to the public sector, depending on the terms of the original contract.
PFIs are usually initiated at the Treasury or Ministry levels. There are no ‘standard’ terms and
conditions, as each PFI largely depends on the assets and services requirements and the financing
package.
3.5.4.1 The Advantages of PFI
Benefits include:
 The process is service rather than project focused and concentrates on the whole life of the
service and associated assets.
 There is a single point of responsibility for service delivery.
 There is an opportunity to draw on a wider range of management and innovation skills.
Construction projects of high capital value are more likely to achieve value for money under the PFI
route.
All PFI projects should be assessed on a case-by-case basis.
3.5.4.2 The Disadvantages of PFI
Risks include:
 The process will be at risk without a long-term commitment from both the Government and
"service providers".
 The process leading up to the completion of a new building can take a long time and needs an
extensive and fully refined brief at the outset.
 There is a significant cost to the industry in tendering which has to be recovered by each bidder.
 Change is difficult to achieve and potentially expensive to incorporate once the contract is let.
3.5.5 Forms Of Contract
Forms of contract that are used by the DID include
 For works
o PWD203 – Standard Form of Contract To Be Used Where Drawings and Specifications

form Part of the Contract
o PWD 203A – Standard Form of Contract To Be Used Where Bills of Quantities Form Part
of The Contract
o PWD 203N – Standard Form of Contract for Nominated Sub-Contractor Where the Main
Contract is based Upon PWD Form 203 or 203A
o PWD DB/T – Standard Form of Design and Build Contract

 For Goods
o PWD 203P – Standard Form of Contract for Nominated Supplier Where the Main Contract
is based Upon PWD Form 203 or 203A
o PWD 203E – Standard Form of Contract for Supply and Delivery of Engineering
Equipment and Plant
 For consultants (where the professional fees are based on Scale of Fees prescribed by the
respective professional boards)
o BEM/JKR FORM A – For Engineers
o BAM/JKR FORM B – For Architects
o BQSM/JKR FORM C – For Quantity Surveyors
3.6 REFERENCE DOCUMENTS
Royal Institution of Chartered of Surveyors – The Procurement Guide
3.7 REFERENCES
Treasury Circular
(Surat Pekeliling Perbendaharaan)
[1] Bil 2 Tahun 1999: Had Nilai Perolehan dan Kuasa, Tanggungjawab Lembaga Perolehan dan
Jawatankuasa Sebutharga
[2] Bil 8 Tahun 2006: Peraturan Perolehan Perkhidmatan Perunding
[3] Bil 5 Tahun 2007: Tatacara Pengurusan Perolehan Kerajaan Secara Tender
[4] Bil 12 Tahun 2007: Had Nilai Dan Syarat-syarat Pembelian Terus Bagi Bekalan Dan
Perkhidmatan
[5] Bil 5 Tahun 2009: Pembahan Had Nilai dan Tatacara Pengurusan Perolehan Secara
Sebutharga
Treasury Instruction
(Arahan Perbendaharaan)
[1] Arahan Perbendaharaan 31 Julai 2008
DID Circulars
(Surat Pekeliling / Edaran JPS)
[1] SP JPS Bil. 3/2004: Garis Panduan Perolehan Kerja Secara Sebutharga
[2] SP JPS Bil 3/2008: Tatacara Baru Permohonan dan Perlantikan Perunding di JPS Malaysia

DID MANUAL
Volume 10
Chapter 3
– Procurement - Overview
APPENDIX 3A
Procurement of Goods

APPENDIX 3A PROCUREMENT OF GOODS
Estimated Value of
Goods / Supplies
Any type or class of Exceeding Exceeding More than

Goods, up to the value RM 50,000 RM 100,000 RM 500,000
of RM 50,000 per year Up to Up to
RM 100,000 RM 500,000
Direct purchase from Quotation from Quotation from

any suppliers minimum 5 minimum 5
Bumiputera registered
registered suppliers
suppliers
Open Tender Selective Tender
 Ref: Arahan Perbendaharaan 170

 SPP Bil 5/2009
Flowchart 3A.1 – Procurement Options (Based on value of supplies)

Flowchart Description Action By
1 1. Establish Government’s needs. Head of Department
2 2. Ascertain the budget allocation Controlling Officer

including approval.
3 3. Ascertain the procurement route to be Procurement Officer

used (Direct purchase, quotation or
tender?)
4 4. Procurement Process. Procurement Officer
5. Issue Purchase Order (AM 75), and of Procurement Officer

5
Letter of Acceptance (for purchases
through either Quotation or Tender).
6. Receive Goods and Purchase Order Receiving Officer

6
signed by the supplier. Check that the
Goods are in good order.
7 7. Payment Finance Division
Flowchart 3A.2 – Process for Procurement of Goods
3A-2 Revision 0 : March 2009

Flowchart Description
1 1. Establish Government’s needs.
2 2. Ascertain the budget allocation including

approval.
3 3. Preparation of quotation document.
4 4. Invite and Display of Quotation Notice.
5 5. Issuance, receiving at closing date and time

and opening of Quotation Submission.
6 6. Evaluation Report and Recommendation.
7 7. Decision and Approval.
8 8. Issue Local Order, with cover letter.
9 9. Receive goods and signed Local Order.
10 10. Payment
Flowchart 3A.3 – Quotation Process

Flowchart Description
1 1. Establish Government’s needs.
2 2. Ascertain the budget allocation including approval.
3 3. Planning.
4 4. Preparation of Tender Documents and comply with

Government’s needs.
5 5. Tender Advertisements.
6 6. Issuance, receiving at closing date and time and

opening of tender submission.
7 7. Tender Evaluation Report and Recommendation.
8 8. Decision and Approval.
9 9. Prepare and signing Letter of Acceptance.
10 10. Issue Letter of Acceptance and Letter informing

Acceptance of Tender.
11 11. Preparation & signing of Contract Documents.
12 12. Receipt of Goods.
13 13. Payment.
Flowchart 3A.4 – Tender Process

3A.1 PROCEDURES
Please refer to Flowchart 3A.2 – Process for Procurement of Goods.
Step Procedures / Tasks Action By

General For information
For the purposes of these procedures, the “Procurement

Officer” may be one of more persons who is/are given the
duties of carrying out tasks of procuring Goods for or on behalf
of the Department or section.
1&2 Establish Needs and Ascertain Budget Action By:
Head of
Establish the Department’s (or section) needs for the particular Department/
Goods, including Procurement Officer
o Quantity
o Quality
o When the Goods is required.
Ascertain that budget is allocated for the Goods.

3&4 Ascertain the procurement route to be used & The Procurement Action By:
Process Procurement Officer
Generally, the procurement route is pre-determined by the

value of the Goods (or supplies) to be purchased and shall
Comply with the current Government’s guidelines on direct
purchase
 Direct purchase/ Quotations
Value of each item per Procurement Option

annum
Exceeding RM500,000 Tender
Exceeding RM100,000 up to Quotation from at least 5
RM500,000 registered suppliers
Exceeding RM50,000 up to Quotation from at least 5
RM100,000 registered Bumiputera
suppliers
Not exceeding RM50,000 Direct purchase from
registered or non registered
suppliers (both Bumiputera
and non Bumiputera).


 Tender exercise.
o Open tender or selective tender.
o If procurement through selective tender:
- For the value of the Goods up to RM50 million, then

the tender list and the acceptance of tender must be
approved by the Procurement Board convened
under the Department / Ministry.
- For the value of the Goods exceeding RM50 million,

then the tender list and the acceptance of tender
must be approved by the Procurement Board
convened under the Ministry of Finance level.
5 Issue Purchase Order (AM 75), and Letter of Acceptance (for Action By:
purchases through either Quotation or Tender) Procurement Officer
All purchases of goods by direct order
The current Form AM75 shall be used.
All purchases of goods by quotation or tender
The Letter of Acceptance of Quotation / Letter of Acceptance of

Tender shall be used
6 Receive Goods and Purchase Order signed by the supplier. Action By:
Check that the Goods are in good order. Receiving Officer
The officer who receives the Goods (Receiving Officer) shall

ensure that the Goods are in good order, including
 that the Goods are in accordance with the quantity and

description stated on the Purchase Order
 free from damage or visual defects
 is received on time
 a copy of the Purchase Order is duly signed and
accompanies the Goods.
Refuse or reject all damaged Goods, or Goods not in

accordance with the description stated in the Purchase Order.


7 Payment Action By:
Receiving Officer
Forward the claims and supporting documents for payment to
the relevant Finance Division.
The Finance Division shall check and submit the supporting

documents together with payment voucher to the Accountant
General, Ministry’s Accountant or State Treasury (as the case
may be) to honour payment.
Please also refer to DID Manual Volume 10, Chapter 10 –

Payments.


DID MANUAL
Volume 10
Chapter 3
APPENDIX 3B
Procurement of Works

APPENDIX 3B PROCUREMENT OF WORKS
(Estimated Value of Works not exceeding RM500,000)
Project Brief
Select
procurement
route
Requisition for minor

and repair works which Non Requisition Works
do not alter original
structure
Value?
> RM 200,000 RM 20,000

Value? < RM20,000
up to up to
RM500,000 RM200,000
RM 20,000 > RM > RM 200,000

< RM20,000
up to 100,000 up to up to
RM100,000 RM200,000 RM 500,000
Direct Appointment Quotations Quotations Quotations Direct

appointment of registered from from from appointment
of registered Class F registered registered registered of registered
Class F Contractor to Class F Class E Class F Class F
Contractor be based on Contractor Contractors Contractors Contractors
approved
Schedule of
Rates
Construction by contractor
 Ref: Arahan Perbendaharaan 180

 SPP Bil 5/2009 Completion and Hand-over to DID
Flowchart 3B.1 – Direct Appointment/ Quotation Procurement Options

(Estimated Value of Works exceeding RM500,000)
Project Brief
Select
procurement
route
Design and Build Conventional Contract

Contract (Design-tender-
(Tender-design- construct)
construct)
By
In-House Design in- consultants
house or by
consultants?
Prepare Needs
Statement (By DID) Appointment of
consultants
Design stage
Tender / Direct Design stage

Negotiation Process
Tender / Direct
Negotiation
Process
Design and
construction by
contractor Construction by
contractor
Completion and
Hand-over to DID
Flowchart 3B.2– Tender/ Direct Negotiation Procurement Options

Flowchart Description Action by
1 1. Establish Government’s needs. -
2. Ascertain the budget allocation

2
including approval.
3 3. Preparation of quotation document.
4 4. Invite and Display of Quotation Notice.
5 5. Issue, receive at closing date and time

and opening of Quotation Submission.
6 6. Evaluation Report and

Recommendation.
7
7. Decision and Approval.
8
8. Issue Works Indent.
9
9. Contractor completes the Work and
returns Works Indent duly signed.
10
10.Payment.
Flowchart 3B.3 – Quotation Process

2 2. Ascertain budget allocation including Implementation

approval. Department/PH
3 3. Preparation of tender documents and PO/ Engr

preliminary estimates.
4 4. Check tender documents and Bills of PO /QS or Engr

Quantities.
No
5 5. Tender documents in order? -
Yes
6 6. Tender notice and advertisement. PO
7. Issue tender documents to Contractors BUBK

7 for pricing, and received priced tender
documents.
8. Tender Evaluation Report, and Evaluation Officer/
8
Recommendation. Evaluation
Committee / BUBK
9 9. Decision and approval Tender Procurement

Board
10 10. Prepare Letter of Acceptance PO
11 11. Sign Letter of Acceptance AtP
12 12. Issue Letter of Acceptance, and Letter PO/SO

informing the acceptance of Tender
13 13. Preparation of contract documents CAO
14 14. Signing of contract documents; and AtP; CAO

distribution of copies of contract
documents
15 15. Post-contract Administration SO
16 16. Payment SO
Flowchart 3B.4 – Tender

PROCUREMENT OF Process
WORKS

2 2. Ascertain budget. Implementation

Department/PH
3 3. Received Instruction / Approval from Ministry of -

Finance.
4 4. Issue Letter of Intent to Contractor. AtP
5 5. Preparation of tender documents and PO/ Engr

preliminary estimates.
6
6. Check tender documents and Bills of Quantities. PO /QS or Engr
No
7 7. Tender documents in order? -
Yes
8. Issue tender documents to Contractor for BUBK
8 pricing, and received priced tender documents.
9. Analyse contractor’s price. Evaluation Officer/

9 Evaluation Committee /
BUBK
10 10. Price Negotiation Committee Meeting. Price Negotiation

Committee
11 11. Report Price Negotiation result to Ministry for BUBK

endorsement. Forward endorsed report to
Ministry of Finance for approval.
12
12. Approval from Ministry of Finance. -
13 13. Prepare Letter of Acceptance PO
14 14. Sign Letter of Acceptance. AtP
15. Issue Letter of Acceptance of Tender and Letter PO/SO

15 informing the acceptance of Tender
17. Signing of contract documents and distribution AtP; CAO

17 of copies of contract documents
18 18. Post-contract Administration SO
19 19. Payment SO
Flowchart 3B.5 – Direct Negotiation for Conventional Contract

2 2. Ascertain budget. Implementation

Department/PH
3 3. Received Instruction / Approval from Ministry -

of Finance
4 4. Issue Letter of Intent and pre-bid documents Implementation

to Contractor Department/PD
5 5. Received Contractor’s Proposal -
6 6. Evaluate the proposal Departmental Design

Team
No 7. Complying with Needs Statement? -

7
Yes
8. Analyse contractor’s price Evaluation Officer/
8 Evaluation Committee /
BUBK
9 9. Price Negotiation Committee Meeting. Price Negotiation

Committee
10. Report Price Negotiation result to Ministry for BUBK

10 endorsement. Forward endorsed report to
Ministry of Finance for approval.
11 11. Approval from Ministry of Finance.

-
12. Prepare Letter of Acceptance PO

12
13. Sign Letter of Acceptance. AtP

13
14 14. Issue Letter of Acceptance of Tender and PO/SO

Letter informing the acceptance of Tender
16. Signing of contract documents and AtP; CAO

16
distribution of copies of contract documents
17 17. Post-contract Administration

SO
18 18. Payment SO
Flowchart 3B.6 – Direct Negotiation for Design and Build

DID MANUAL
Volume 10
Chapter 3
APPENDIX 3C
Procurement of Services

APPENDIX 3C PROCUREMENT OF SERVICES
Type of Services
Non Consultancy
(Conducting courses and Consultancy
training, maintenance
and repairs, cleaning
and clearing, rental and
building management,
security and etc.
Physical Physical / Non

Value per Procurement Option Development Physical Studies
annum Consultancy Consultancy
Exceeding - Tender
RM500,000
Exceeding - Quotation from at

RM100,000 least 5 registered
up to suppliers
RM500,000
Exceeding - Quotation from at

RM50,000 least 5 registered
up to Bumiputera suppliers Direct Appointment Appointment
RM100,000 (physical through
development scope Technical and
Not -Direct purchase from of works, land and Financial
exceeding registered or non environmental Proposal
RM50,000 registered suppliers survey and where (physical and
(both Bumiputera and the required non physical
non Bumiputera). expertise is limited) development
and/or when
the
implementing
agency does
not have the
expertise
 Reference: AP 185 – 190; 31 July 2008

 SPP Bil 5/2009
Flowchart 3C.1 – Procurement of Services


1. Propose 5 names of Consultant, prepare PH
1
evaluation, scoring marks and
recommendation paper.
2
2. Receive the recommendation paper for the
BUBK
appointment of Consultant.
3
3. Check. BUBK
No
4 4. Agree with recommendation paper? [8] BUBK
5
5. Propose different consultants BUBK
Yes
6 6. Approval of new selection. [1] Deputy Director General

(Development)
7. Submit the recommendation paper to the
7 Authorised Party and inform PH. BUBK
8 Approval from Authorised Party -

8
9. Issue Letter of Intent to Consultant. PH

9
10. Consultant submits Technical and Financial -

10 Proposal.
11. Evaluation of Technical Proposal and PH

11
Financial Proposal.
12. Negotiation. Technical and Financial

12
Negotiation Committee
Disagree
13 13. Evaluation and recommendation. PH
14 14. Check and submit recommendation to BUBK

Authorised Party for approval.
15 15. Decision from Authorised Party. [11] -
Approve
16 16. Issue Letter of Acceptance to Consultant. PH
17 17. Sign the Consultancy Agreement AtP
18. Consultant performs the Work. -

18
19. Payment. -
19
Flowchart 3C.2 – Direct Appointment of Consultants

(Ref : SPP 8/2006 and SP JPS 3/2008)

1 1. Propose minimum 5 names of Consultants, PH

prepare evaluation, scoring marks and
recommendation paper.
2
2. Receives the recommendation paper for the
BUBK
appointment of Consultants.
3
3. Check. BUBK
No Yes
4
4. Agree with recommendation paper? BUBK
5
5. Secretariat proposes different name(s). BUBK
6
6. Approval of new selection). Deputy DG
(Development)
7
7. Submit the recommendation paper to the
Authorised Party.
8
8 Approval from Authorised Party
9 9. Invitation to shortlisted consultants to submit

Technical and Financial Proposals.
10
10 Shortlisted consultants submit Technical and
Financial Proposals
11
11. Evaluation of Technical Proposals and Financial
Proposals.
12
12. Forward recommendation (report) to BUBK. PH/PO
13 Approve
Disagree 13. Check and submit recommendation on cost to BUBK
without Authorised Party for decision.
negotiation
14
14. Authorised Party approves recommendation?
Approve 15
requiring 15. Issue Letter of Intent to Consultant.
negotiation
16
16. Technical and Financial negotiation with
Consultant
17
Disagree 17. Secretariat prepares and submits recommendation

paper to Approving Authority for decision
18
Agree
18. Decision by Approving Authority
19
19. Issue Letter of Acceptance to Consultant.
20
20. Sign the Consultancy Agreement.
21
21. Consultant performs the services.
22
22. Payment.
Flowchart 3C.3 – Appointment of Consultants through Technical and Financial Proposal

(Ref : SPP 8/ 2006 and SP JPS 3/2008)

3C.1 LIMIT OF AUTHORITHY FOR THE APPOINTMENT AND APPROVAL OF COST OF

CONSULTANCY SERVICES
The Authorised Party and limit of authority for the appointment and approval the cost of consultancy
services are as follows:
a) Physical Development Projects
Authority Limit
Authorised Party
Project Cost Consultancy Cost
a. Treasury Exceeding RM50 million Exceeding RM5 million
b. Procurement Board “A” Ministry of
Up to RM50 million Up to RM5 million
Natural Resources and Environment
b) Physical/ Non Physical Studies
Authority Limit for approving the appointment

Authorised Party
and consultancy cost
a. Treasury Exceeding RM1 million
b. Procurement Board “A” Ministry of Natural
Up to RM1 million
Resources and Environment
c) Land Survey and Environmental Works
Authority Limit for approving the appointment

Authorised Party
and consultancy cost
a. Treasury Exceeding RM300,000

Up to RM300,000
d) Additional Consultancy Cost
Authority Limit for approving the additional

Authorised Party
consultancy cost
a. Treasury Exceeding 30% of original cost

Up to 30% of original cost
(Ref : Treasury Circulars No. 8/ 2007 and DID Circular JPS No 3/2008).

DID MANUAL
VOLUME 10
CHAPTER 4
PROJECT IMPLEMENTATION
– OVERVIEW
Chapter 4 – PROJECT IMPLEMENTATION – OVERVIEW
Table of Contents

4.1 INTRODUCTION ............................................................................................................. 4-1
4.2 FUNCTION OF PROJECT MANAGEMENT ........................................................................... 4-1
4.3 PROJECT LIFE CYCLE...................................................................................................... 4-3
4.3.1 Project Initiation ................................................................................................ 4-4
4.3.2 Project Planning Stage ....................................................................................... 4-6
Design and Build .............................................................................................. 4-6
4.3.3 Conceptual Design Stage .................................................................................... 4-6
Design and Build .............................................................................................. 4-6
4.3.4 Preliminary Design Stage (Schematic Design Stage) ............................................. 4-7
Design and Build .............................................................................................. 4-7
4.3.5 Detailed Design Stage ........................................................................................ 4-7
Design and Build .............................................................................................. 4-7
4.3.6 Tender Stage ..................................................................................................... 4-7
4.3.7 Construction Stage............................................................................................. 4-8
4.3.8 Completion and Hand-Over................................................................................. 4-8
4.3.9 Defects Liability Stage & Close Out...................................................................... 4-9
4.4 SPECIAL PROJECTS ........................................................................................................ 4-9
4.5 IMPLEMENTATION OF PROJECT: PROJECT TEAM, AND RESPONSIBILITES .......................4-10
4.5.1 Project Team (PT).............................................................................................4-10
4.5.2 Project Head (PH) .............................................................................................4-12
4.5.3 Superintending Officer’s Representative (SOR)....................................................4-12
4.5.4 Procurement Officer (PO) ..................................................................................4-13
4.5.6 Contract Administration Officer (CAO) ................................................................4-13
4.5.7 Project Supervisor (PS)......................................................................................4-13
4.5.8 Design Team or Designer (DT) ..........................................................................4-13
4.5.9 Consultant ........................................................................................................4-14
4.6 PARTIES NAMED IN THE CONTRACT ..............................................................................4-14
4.6.1 Superintending Officer (SO) or Project Director (PD) ...........................................4-14
4.6.2 SO’s Representatives (SOR) and PD’S Representatives (PDR)...............................4-14
4.6.3 Contractor ........................................................................................................4-15
4.7 AUTHORISED PARTY .....................................................................................................4-15

List of Figures
Figure 4.1 Functional Project Organisation 4-2
Figure 4.2 Project Life Cycle Flow Chart (Outline) 4-3
Figure 4.3 Project Initiation Chart (Other than Special Projects) 4-5
Figure 4.4 Project Team Organisation 4-11

4 PROJECT IMPLEMENTATION - OVERVIEW
4.1 INTRODUCTION
 An overview of the process of implementing and managing the projects undertaken by the DID.
 A brief outline of the roles and responsibilities of the various member of the project team.
4.2 FUNCTION OF PROJECT MANAGEMENT
Project management may be defined as the overall planning, co-ordination and

control of a project from inception to completion aimed at meeting the Government’s
and stakeholders’ requirements in order to produce a functionally and financially
viable project that will be completed on time within authorized cost and to the
required quality standards.
From inception to completion, a project involves many parties, e.g.
 the stakeholders, who have vested interest in the success or outcome of the project.
Internal stakeholders include the Government department who is the originator of the project, or
the end-user of the works. External stakeholders include such parties who may be affected by
project, including neighbouring landowners and those who may benefit from the completion of
the project (say, residents at a flood prone area, under a flood mitigation project).
 the various professionals and specialists forming the project team.
These professionals and specialists contribute knowledge and experience to the decision matrix
at each stage of the project implementation.
 the contractors(s) and nominated subcontractors / suppliers who shall deliver the completed
project.
The functional relationship of the various parties in the project is as shown in Figure 4.1.
The task of project management is to bring all the parties together and co-ordinate the actions to
enable them to make their best possible contribution in the most efficient manner.
In larger scale projects, the management function of a project is often separated from the design
and execution functions, whilst in smaller projects both the management and design functions may
be carried out by the leader of the design team.
The roles of the Project Team and the parties in connection with the implementation or project and
administration of contract are further discussed in section 4.5, below.

Internal
Stakeholders External
Stakeholders
PROJECT TEAM
Contractor
Nominated Sub-
Contractors /
Suppliers
Legend:
Direct Relationship
Indirect Relationship
Figure 4.1 Functional Project Organisation

4.3 PROJECT LIFE CYCLE
The project is implemented in a number of steps or stages.
For the purpose of this Chapter, the stages in the project life cycle are summarised into the nine (9)
main stages, as outlined below and represented in Figure 4.2.
The main activities and responsibilities of the Project Team at each state are set out below.
Volume 10 shall only cover Tender, Construction, Completion and Hand-over and Defects Liability
and Close out Stage.
START Volume 10:

PROJECT TENDER STAGE

INITIATION STAGE
PROJECT CONSTRUCTION STAGE

PLANNING STAGE
CONCEPTUAL COMPLETION AND

DESIGN STAGE HAND-OVER
PRELIMINARY DEFECTS LIABILITY

DESIGN STAGE & CLOSE OUT STAGE
DETAILED
END
DESIGN STAGE
Figure 4.2 Project Life Cycle Flow Chart (Outline)

4.3.1 Project Initiation
Government projects implemented by DID may be initiated by
 The Treasury or
 The Ministry’s Development Division or
 A DID Division or State
The project initiation and implementation chart is set out in Figure 4.3.
At this stage, the general objectives of the project are established and a budget may be allocated for
its implementation.
Once the project is approved, and the budget is allocated, the Controlling Officer or Director-General
(as the case may be) shall delegate the implementation of the project to the respective Division or
State Director.
The Division or State Director shall then appoint the Project Head for the implementation of the
project.
At the pre-implementation or pre-tender stages of each project and/or contract, the Project Head
and Project Team must check that sufficient budget is available for the project and/or contract.
(The remainder of this page is deliberately left blank)

1. Ministry / 1. The Ministry approves the budgetary allocation and

Controlling list of projects to be implemented by DID. The
Officer Controlling Officer shall notify the Director-General
the approved allocations and project list.
2. DG of DID 2. The Director-General shall assign the project to the

relevant implementing Division or State Director,
and sets the project’s ceiling budget, for the
execution and completion of the project.
3. Implementing 3. The implementing Division / State Director shall

Division / manage and be responsible for the execution and
State completion of the project. The Division or State
Director shall appoint an officer as the Project
Head. The implementing Division / State and the
Project Head shall be assisted by officers from the
implementing Division / State, and officers from the
supporting Divisions, e.g. Contracts and Quantity
Surveying Division, Mechanical and Electrical
Services Division, Hydrology and Water Resources
Division, etc.
4. Project 4. The Project Head shall identify the resources and

Head personnel requirements for the project. The
Project Head shall recommend and appoint the
members of the Project Team and Design Team
from within DID, or where necessary, Consultants
shall be appointed.
5. Project Team 5. The PH / Project Team shall determine the

planning data and design criteria. Further studies
such as geotechnical studies, environmental impact
studies, etc. shall be carried out as necessary.
6. Design & 6. The Project Head / Project Team shall determine

Procurement the design brief and criteria. Once the scope of
works is determined, the PH/Project Team shall
consider the procurement option best suited for the
implementation of the project, including whether to
design in-house or to appoint Consultants. Please
refer to Chapter 3 [Procurement] for procurement
processes and procedures.
Figure 4.3 Project Initiation Chart (Other than Special Projects)

4.3.2 Project Planning Stage
At the project planning stage, the Project Head and his team shall develop the package strategy for
the overall implementation of the project, including:
 The project brief and project cost plan (preliminary estimate)

 Project master programme, outlining the procurement of Consultants (if required), design stages,
tendering, construction and handover.
The programme should include key stages, including the review, verification and validation of various
design output produced by the Design Team / Consultant.
Considerations should be given, and decision made, whether to procure under a traditional contract
(i.e. design-tender-construct), or under a design a build contract.
Further studies may be required before the Conceptual Design Stage may commence, or to be
carried out concurrently with the Conceptual Design Stage, including:
 Feasibility study
 Site investigation
 Hydrological and Hydraulic investigation
 Geotechnical investigation
 Environmental impact assessment.
Other issues to be considered and included in the project planning stage are:
 Land acquisition.
 Co-ordination and liaison with other Government departments and agencies
Design and Build
For design and build contracts, the Needs Statement shall be prepared by DID to be included in the
pre-bid document to be issued to the Tenderers for the submission of the technical and commercial
proposal.
4.3.3 Conceptual Design Stage
The Design Team / Consultants shall develop the conceptual design based on the Needs Statement.
The conceptual design process should provide the outline design to a level such that the scope of
works can be fully confirmed and agreed.
The endorsement of the Division / State Director is required before proceeding to Preliminary Design
Stage.
Design and Build
For design and build contracts, the Tenderer’s proposal shall include the conceptual design. This
shall be one of the basis for consideration for the award of contract.

4.3.4 Preliminary Design Stage
At the preliminary design stage, the Project Team shall appraise the soundness of various design
proposal and assess the buildability, as more information is gathered following the approval of the
conceptual design.
Value management should be carried out during the process so as to have optimal performance at
the advantageous economic value. The Project Head / Project Team shall appraise the various
options, and propose to the relevant Division / State Director or Funding Body for implementation.
The output from the preliminary design process should secure a preliminary endorsement from the
Division / State Director or Funding Body, and enable the Design Team to proceed to the Detailed
Design Stage.
Design and Build
This process is also applicable for Design and Build Contracts, where the approval of the Preliminary
Designs shall enable the Contract Sum to be finalized.
The PH ensures that the decisions and matters agreed in the earlier stages are effectively and
efficiently implemented.
4.3.5 Detailed Design Stage
During the detailed design stage, the Design Team shall carry out technical design and production of
drawings concurrently. The Designer shall ensure that the design coordination is carried out closely.
Interaction between the End-User is also required, especially in the selection of materials, goods and
plants.
The Design Team should advise on the suitability and reliability of the selected items. The Design
Team must allow sufficient time for the End-User to consider and approve the submitted designs
and drawings.
Design and Build
This process is also applicable for Design and Build Contracts, where the detailed design stage is
carried out by the Contractor.
4.3.6 Tender Stage
At this stage, the Project Team has sufficient information to identify the various scope of works, e.g.
the various construction packages ranging from main contractor, nominated sub-contractors and
nominated suppliers.
The Project Team should formulate the procurement strategy, including:
 Pre-qualification of tenderers
 Type of Tender (Open, selective or direct negotiation)
 Preparing list of tenders for approval by Tender Procurement Board
 Packaging the works into multiple contracts
 Types of contract, e.g. with quantities (JKR203A) or without quantities (JKR203). The decision to
use design and build contract (JKR DB/T) is usually made at the Project Planning Stage.
 Activity schedule for the tendering process, until construction completion.
Please refer to Part II – Pre-Contract for the tendering and award process and procedures.

4.3.7 Construction Stage
In this stage, the Project Team is principally involved in monitoring the performance of the
Contractor, and the progress of the works.
The principle activities include:
 Ensuring contract documents are prepared and issued to the Contractor

 Ensuring the contracts are signed
 Arranging the handover of the Site to the Contractor
 Reviewing contractor’s construction programme and method statements
 Ensuring that procedures are in place and being followed
 Ensuring that site meetings are held and documented
 Confirming the insurance cover, performance bond and other deliverables from the Contractor
are in accordance with the Contract
 Reviewing progress for the Contractor
 Monitoring the Contractor’s performance
 Ensuring that the design information required by the Contractor is supplied by the Design Team
(where the works are not contracted under a ‘design and build’ contract)
 Monitoring financial status
 Preparing payments and arranging payment authorisation
 Managing variations
 Managing adjustments to the Contract Sum(s)
 Anticipate and resolve potential problems before they develop or escalate.
 Assisting the Superintending Officer (or Project Director) in the assessment of contractor’s claims
for extension of time and for loss and/or expense
 Reporting to the Superintending Officer (or Project Director), the Director-General or Controlling
Officer, or Funding Body, as the case may be.
Please refer to Volume 10, Part III – Post-Contract for the contract administration process and
procedures for the construction stage.
Please refer to Volume 11 for the construction management process and procedures for the
construction stage.
4.3.8 Completion and Hand-Over
The Project Team shall ensure that all prerequisites as per the contract has been completed and
delivered (except the obligations to be carried out in Defects Liability Stage, or deferred/exempted
under the terms of the Contract) before the Certificate of Practical Completion is issued, including:
 All testing, commissioning and/or endurance tests must be successfully completed.

 The relevant records, documents and drawings are handed over.
 Design Guarantee (if applicable) is submitted.
The Consultants / Superintending officer’s Representative shall prepare and submit the
recommendation report, together with the Schedule of Defects and list of acceptable outstanding
works, if any, to the Project Team.
Refer to Volume 11, for the process and procedures relating to project completion and hand-over.

4.3.9 Defects Liability & Close Out Stage
The Project Team shall demobilise upon the issuance of the Certificate of Practical Completion, save
for such remaining members who are given the responsibilities of monitoring and managing the
Defects Liability Stage, and the preparation of the Final Accounts and Final Certificate (Close Out
Team).
The Close Out Team is to ensure that
 all defective works which had been identified during the defects liability period have been
rectified, and properly closed out.
 Upon the expiry of the Defects Liability Period, a Schedule of Defects (if necessary) is prepared
and the defects therein rectified by the Contractor.
 The Final Accounts are prepared and signed off by the Contractor.
 the final inspection shall be arranged, and jointly carried out by the relevant parties, and the
Certificate of Making Good Defects is issued as per the Contract.
 The final deliverables, such as statutory declaration (or letter from the Labour Department) are
submitted prior to issuance of the Final Certificate.
Refer to Volume 11, for the process and procedures relating to the on-site management of Defects
Liability Stage.
Refer to Volume 10, chapters 18 and 19 for contract administration for defects management, and
Final Account and Final Certificate.
4.4 SPECIAL PROJECTS
Special Projects are one-off projects, initiated by the Government or by a third party, to meet a
particular need. The source of funding may be an external Funding Body, or funded through
alternative procurement strategies such as Private Finance Initiative (PFI), Build-Operate-Transfer
and other methods of procurement.
Examples of such special projects include: the Sg. Muda Flood Mitigation Project, SMART Tunnel,
Bertam - Kepala Batas Flood Mitigation Project, etc.
The project initiation, planning and implementation procedures (including terms of the contract and
contract administration) are dependant on the particular circumstances, and are excluded from this
Manual.
Nevertheless, the procedures and description set out in this manual may be used as general
guidelines, subject to the needs and circumstances of the project, and terms and conditions of the
contract.

4.5 IMPLEMENTATION OF PROJECT: PROJECT TEAM, AND RESPONSIBILITES
4.5.1 Project Team (PT)
The DID practices the project team concept to perform the activities required to complete a project.
The Project Team Organisation is set out in Figure 4.4.
The DID Project Head (PH) is the leader of this project team, and is ultimately responsible for the
execution and delivery of a project.
During the implementation a project, the PH will rely on
 the Procurement Officer (PO) to perform tender administration duties;
 the Contract Administration Officer (CAO) to perform contract administration duties, and
 the Superintending Officer’s Representative (SOR) and Project Supervisor (PS) to perform
construction management duties.
 Where third party consultants (Consultant) are appointed, these duties are performed by the
Consultant and audited by the CAO or SOR, as the case may be.

Tender
Secretariat
Procurement Design Team /

Officer Designer
Project Head
Contract
Administration
Officer
Implementation
Officer / SOR
Consultant(s)
Project
Supervisor
Figure 4.4 Project Team Organisation

Typical duties for the PH, SOR, PO, CAO, PS and other project team members are detailed below:
4.5.2 Project Head (PH)
The PH has overall responsibility and authority for entire execution of the project.
The PH is the single point of contact for all project activities from planning through project close out.
The PH may delegate responsibilities to members of his project team, including on-site construction
management duties to the Superintending Officer’s Representative, but the PH remains fully
accountable for the execution of the project within the scope, schedule, and budget parameters
established for the project.
The duties and responsibilities of the PH includes but not limited to:
 Responsibility for the project’s technical and financial directions and for ensuring external and
internal stakeholder satisfaction with project results.
 Administer professional service, design and construction contracts, including involvement in
design contract negotiations.
 Establish initial project budgets, cost estimates, cash flow projections and master schedules.
 Develop and provide periodic updates (monthly or such period set by the Stakeholders) of project
schedules and budgets.
 Monitor project schedules and budgets to ensure financial and schedule milestones are met.
 Resolve public questions and concerns about the project.
 Co-ordinate with other Government departments and agencies and/or private utilities and
companies involved in the project.
 Oversee easement acquisition/utility relocation and permitting activities.
 Prevent or resolve problems occurring during project development and execution.
 Participate in the development of bidding documents and the construction contract award process
(as applicable).
 Analyse problems occurring during the project and take actions to ensure project goals are met.
 Provide regular progress reports and monthly briefings.
 Ensure project records and documentation are properly maintained.
 Select and assign projects to staff, SOR and consultants.
 Set schedules for interim project reviews.
 Supervise the quality assurance manager and safety and health officer for the project.
4.5.3 Superintending Officer’s Representative (SOR)
The PH may delegate duties or responsibilities to the SOR, or PDR for design and contracts.
The SOR will ensure that the Contractor’s work is supervised and routinely inspected. The SOR must
confirm that the Contractor complies with all required contractual, cost, schedule, safety and quality
obligations, including environmental requirements.

4.5.4 Procurement Officer (PO)
For the purpose of this Manual, the Procurement Officer (PO) is responsible for the pre-contract
administration functions including coordination with the PH to choose a project-delivery method,
selecting and appointing Consultants and carrying out exercises for selection of contractors.
The PO shall facilitate the necessary approvals from the appropriate Authorised Party.
4.5.5 Tender Secretariat (TS)
The Tender Secretariat is responsible for the preparation of the tender evaluation paper for the
Tender Procurement Board meeting.
4.5.6 Contract Administration Officer (CAO)
The Contract Administration Officer is responsible for all post-contract functions, including facilitating
payment applications, tracking changes and costs, assisting the SO/PD or their Representative in the
assessment of contractor’s claims for additional time and payments, and project close out with the
project team.
The CAO shall facilitate the necessary approvals from the appropriate Authorised Party.
4.5.7 Project Supervisor (PS)
The Project Supervisor (PS) will perform day-to-day construction management activities in support of
the SOR.
The PS’s responsibilities include daily supervision of the Contractor’s work, daily preparation of
written reports, and facilitating communications between the Contractor and SOR.
The PS reports to the SOR.
4.5.8 Design Team or Designer (DT)
The Designer is responsible for designing the project and preparing plans, specifications and
estimates and design manuals.
DID’s own engineering staff, especially on smaller design projects where a quick turn around is
required, may perform Designer services inhouse.
Large projects requiring a full range of professional services (soils, investigation, survey, public
involvement, hydraulic analysis, etc.) are typically performed by the Consultant who has been
awarded a qualification-based professional services contract with the DID.

4.5.9 Consultant
Where Consultant is appointed to carry out design works or to provide specialist services, the PH
may also appoint the Consultant as his representative on contract-related and construction-related
matters.
Within the limits of the delegation, the Consultant will inspect the Contractor’s work and ensure that
the Contractor meets the required contractual, cost, schedule, safety and quality obligations.
The Consultant may be assisted by his own site staff.
4.6 PARTIES NAMED IN THE CONTRACT
Notwithstanding the roles and responsibilities of the parties implementing the project under the
contract, the execution and supervision are ultimately the responsibilities of the SO/PD and the
Contractor.
4.6.1 Superintending Officer (SO) / Project Director (PD)
The administration of the construction contract is the responsibility of the SO/PD duly named in the
contract.
Who may be appointed or named as the SO/PD depends on a number of factors, including:
 Value of the works (please refer to section 5.3)

 Whether the project is undertaken at HQ or State level
 The location of the works.
The PH and the SO/PD need not be the same officer.
4.6.2 SO’s Representatives (SOR) / PD’S Representatives (PDR)
The supervision of the construction work is generally carried out by the SOR/PDR.
The SO/PD may delegate powers to more than one officer to perform different duties on his behalf,
as follows:
 Principal SO’s Representative / PD’s Representative
Overall supervision and direction of the execution of the works.
 Specialist SO’s Representative / PD’s Representative
E.g. an electrical or mechanical construction manager to supervise the execution of electrical or

mechanical works.
The format of letters delegations are appended under Volume 10A, Chapter 9 – Contract
Documentation.

4.6.3 Contractor
For the purposes of this Volume 10, the Contractor refers to the general contractor on a DID
construction project.
The Contractor is the prime contract holder with ultimate responsibility for completion of the
construction work.
The PH, SOR/PDR and other DID officers typically should only have direct communications with the
Contractor (i.e. the PH should not correspond directly with subcontractors).
For the purposes of this Volume 10, the PH’s primary point of contact with the Contractor is the
Contractor’s representative, as designated by the Contractor.
The PS’s primary point of contact with the Contractor is the Contractor’s site agent (or foreman).
4.7 AUTHORISED PARTY
The DID is required to comply with the procurement and payment procedures set by the Treasury.
Only such person who is duly authorised (Authorised Party) may accept, approve, certify or
otherwise act on behalf of the Government, in matters of procurement or administration of contract,
irregardless who the Project Head or Superintending Officer / Project Director may be.
Such Authorised Party may be:
 An officer, by virtue of his office, or

 A board or committee duly convened and comprising the relevant officers.
Further details of the Authorised Party and the limit of authority are set out in Chapter 5 – Authority.


DID MANUAL
VOLUME 10
PART II : PRE-CONTRACT
CHAPTER 5
AUTHORITY
Chapter 5 – AUTHORITY
Table of Contents
Table of Contents ....................................................................................................................... 5-i

List of Tables……………………………………………………………………………………………………………………….. 5-ii
5.1 INTRODUCTION ............................................................................................................. 5-1
5.2 AUTHORISED PARTY....................................................................................................... 5-1
5.3 LIMITS OF AUTHORITY ................................................................................................... 5-1
5.3.1 Selection of Tenderers ....................................................................................... 5-2
5.3.2 Limit and Authority of Procurement Board for Acceptance of Tenders ................... 5-3
5.3.3 Execution of Contracts ....................................................................................... 5-4
5.3.4 Superintending Officer / Project Director and Contract Administration................... 5-5
5.3.5 Certification under the Terms of Contract............................................................ 5-6
5.3.6 Approval of Variation Order ................................................................................ 5-7
5.3.7 Instruction for Variation for Special Cases ........................................................... 5-8
5.3.7 Expenditure of Provisional Sums ......................................................................... 5-9
5.3.8 Approval of Contractor’s Claims for Loss and Expense, Permitted under the
Contract………………………. .............................................................................……5-9
5.4 CIRCULATION OF DOCUMENTS ....................................................................................... 5-9
5.5 REFERENCES ................................................................................................................ 5-10
APPENDIX 5A Distribution of Documents for Works Funded by Federal Government

[Pengedaran Dokumen-Dokumen (Kontrak Kerja) Biayaan Persekutuan] .......... 5A-1

List of Tables
Table Description Page
Table 5.1 Selection of Tenderers 5-2

Table 5.2 Acceptance of Tenders 5-3
Table 5.3 Execution of Contracts 5-4
Table 5.4 Contract Administration 5-5
Table 5.5 Terms of Contract 5-6
Table 5.6 Approval of Variation Order 5-7
Table 5.7 Special Cases 5-8
Table 5.8 Provisional Sums 5-9
Table 5.9 Loss and Expense 5-9

5 AUTHORITY
5.1 INTRODUCTION
 A brief explanation on the demarcation between administration of contract, and the authority to
accept, approve or certify on behalf of the Government.
 The types and limits of authority applicable to contracts let by the DID.
 Circulation of documents to the relevant parties.
5.2 AUTHORISED PARTY
The DID complies with the procurement guidelines set under the current relevant Treasury
Instructions.
The person who is duly authorized (‘Authorised Party’) may accept, approve, certify or otherwise act
on behalf of the Government, in matters of procurement or administration of contract, irregardless
who the Project Head or Superintending Officer / Project Director may be.
Such Authorised Party may be:
 An officer, by virtue of his office, or

 A board or committee duly convened and comprising the relevant officers.
The limit of authority is usually dependent on the value or estimated value of the contract.
5.3 LIMITS OF AUTHORITY
For pre-contract and post-contract procedures, all actions requiring acceptance, approval or
certification and the Party who is authorised to act on behalf of the Government / DID are set out in
the following sub-sections.
Notwithstanding these summaries, reference should be made to the latest

DID circulars, Treasury Circulars and Treasury Instructions for the current
limits of authority, or for further details.

5.3.1 Selection of Tenderers
In general any works estimated exceeding RM200,000 or supplies which value exceeding RM200,000
per annum for each item must be procured through open tenders with the exception for supplies
where the qualified suppliers under each trade is known to be less than five (5) suppliers then
approval from the Chief Secretary of Treasury or State Financial Officer (where applicable) must be
obtained before tender notice can be sent through registered letter or express delivery.
The Authorised Party for approval of list of tenderers for selective tenders or direct negotiation
purposes is as follows:
Table 5.1 Selection of Tenderers
Authorised Party Limit of Authority
Works Supplies/ Services
Ministry of Finance Exceeding RM5 million Exceeding RM 5 million
Ministry / Department Procurement Board Up to RM 5 million Up to RM 5 million
Ref : Ministry of Finance Guidelines for Tender Evaluation (January 2008 Edition).

5.3.2 Limit and Authority of Procurement Board for Acceptance of Tenders
The limit of value and authority of the procurement board for acceptance of tenders is as follows:
Table 5.2 Acceptance of Tenders
Limit of Authority
Authorised Party
Works Supplies / Services
Ministry of Finance a) Open tender - a) Open tender -

exceeding RM 100 exceeding RM 50
million million
b) Selective tender – b) Selective tender –

exceeding RM5 exceeding RM5
million million
Ministry / Department Procurement Board a) Open tender - Up to a) Open tender - Up to

RM 100 million RM 50 million
b) Selective tender – Up b) Selective tender – Up

to RM5 million to RM5 million
Federal Procurement Board (State level) a) Open tender - Up to Not permitted to

RM 20 million consider and accept
tender for supplies and
b) Selective tender – Up services at state level
to RM1 million
Where the procurement process requires the approval from the Ministry of Finance, the Tender
Committee shall submit the Procurement Board’s recommendation to the Ministry of Finance for
further decision. In addition if the decision is not unanimous then it must be referred to the Ministry
of Finance.
Ref : Ministry of Finance Guidelines for Tender Evaluation (January 2008 Edition) and AP198.1

5.3.3 Execution of Contracts
Section 2 of Government Contracts Act 1949 (Revision 1973) states that all contracts made in
Malaysia on behalf of the Government shall, if reduced to writing, be made in the name of the
Government of Malaysia and may be signed by a Minister or by any public officer duly authorised in
writing by a Minister, either specially in any particular case, or general for all contracts below a
certain value in his department or otherwise as may be specified in the authorisation.
For the execution (signing) of any contracts, the officer authorised to sign on behalf of the DID is as
follows:
Table 5.3 Execution of Contracts
Authorised Party Limit of Authority

Works, Suppliers & Services
Minister of Ministry of Natural Resources and Exceeding RM100 million

Environment
Chief Secretary Ministry of Natural Resources and Not exceeding RM100 million
Environment
Deputy Chief Secretary I Ministry of Natural Resources Not exceeding RM30 million
and Environment
Deputy Chief Secretary II Ministry of Natural Resources Not exceeding RM 10 million

and Environment
Head of Department at Head Quarters
Deputy Head of Department at Head Quarters Not exceeding RM 5 million
Divisional Secretary of Administration and Finance,

Ministry of Natural Resources and Environment
Departmental Divisional Directors at Head Quarters Not exceeding RM 1 million
Departmental Directors at State Level
Departmental Deputy Directors at State Level Not exceeding RM 500,000
Chief Assistant Secretary (Finance) of Administration

and Finance Division, Ministry of Natural Resources and
Environment
Chief Assistant Secretary (Administration) of

Administration and Finance Division, Ministry of Natural
Assistant Secretary (Finance) of Not exceeding RM 100,000

Administration and Finance Division, Ministry of Natural
Ref : Minister of NRE Delegation of Power under Section 2, Government Contracts Act 1949 dated 18
February 2009 and AP198.1

5.3.4 Superintending Officer / Project Director and Contract Administration
For contract administration, the appropriate DID officers to be named as Superintending Officer (JKR
Form 203 or 203A) or Project Director (JKR Form DB/T) or to exercise the relevant powers under the
conditions of contract, are as follows:
Table 5.4 Contract Administration
Officer(s) empowered to take

SO Representative / PD
action on behalf of the Government
Representative
/ DID in respect of**:
 Liquidated  Determination
Superintending Damages for of the
Contract Officer / Project non- employment of
Sum Director Supervision Supervision completion Contractor
by DID by  Delay and  Effects of War
officer Consultant Extension of or Earthquake
time  Arbitration
 Mutual
Termination
Director General Officer
More than
or Officer named by
RM 100.0
named by the the Director
million
Director General General
Director General Director General
Not more
than RM Federal
100.0 Director /
million State
Not more Federal Director Director /
Project Appointed
than RM / State Director Deputy Director Deputy Director
Engineer Consultant
25.0 / Project General General
million Engineer
Not more Project
than RM Engineer / The The
10.0 District Superintending Superintending
million Engineer Officer /Project Officer /Project
Not more Director named Director named
than RM District Engineer Engineer in the Contract in the Contract
500,000.00
**Subject Matter Form JKR 203 / 203A Form DB/T

Liquidated Damages for non- Clause 40 Not applicable
completion
Delay and Extension of time Clause 43 Clause 45
Determination of the Clause 51 Clause 54
employment of Contractor
Effects of War or Earthquake Clause 52 Clause 55
Arbitration Clause 54 Clause 56
Mutual Termination Not applicable Clause 40
Ref: SP JPS Bil 1/2003

5.3.5 Certification under the Terms of Contract
The DID officer who is empowered to certify (sign) or give recommendation under the terms of the
contract are set out below:
Table 5.5 Terms of Contract
Authorised Party Certificate or Recommendation
Superintending Officer / Project Director Variation Order*
Superintending Officer / Project Director Adjustment of Contract Sum
Superintending Officer / Project Director, or Certificate of Practical Completion

Principal SO’s Representative / Principal PD’s
Representative
Superintending Officer / Project Director Certificate of Non-completion
Superintending Officer / Project Director, or Certificate of Sectional Completion

Representative
Superintending Officer / Project Director, or Certificate of Partial Possession

Representative
Superintending Officer / Project Director Certificate of Delay and Extension of Time
Superintending Officer / Project Director, or Certificate of Completion of Making Good Defects

Representative
Superintending Officer / Project Director Interim Certificate
Superintending Officer / Project Director Final Certificate
* Subject to the approval of the Variation Order Committee. Please refer to Section 5.3.7.
Ref: SP JPS Bil 1/2003

5.3.6 Approval of Variation Order
Table 5.6 Approval of Variation Order
Limit of Authority
Authorised Party
(Value of Variation)
Where the original Contract Sum is less than

Variation Order Committee RM10 million, and the aggregate value of
chaired by the SO or PD named in the Contract variation works is not more than 10% of the
Contract Sum,
(If the Deputy Director General is the S.O. or Or

P.D., then the Authorised Party shall be the
Variation Order Committee chaired by the Where the original Contract Sum is more than
Deputy Director General). RM10 million, and the aggregate value of
variation works is not more than RM 1 million.

chaired by the Deputy Director General of DID variation works is not more than 20% of the
Contract Sum,
Or
Where the original Contract Sum is more than

RM10 million, and the aggregate value of
variation works is not more than RM 2 million.

chaired by the Director General of DID variation works is not more than 30% of the
Contract Sum,
Or
Where the original Contract Sum is more than

RM20 million, and the aggregate value of
variation is not more than RM 6 million.
Chief Secretary to the Treasury All other cases
Ref : AP202.2
Note: the officer who applies for or presents the request for Variation Order approval may not be
the chairman of the Variation Order Committee, or be a member of the Committee.
For the composition of the committee please refer to SP JPS Bil 2/2008.

5.3.7 Instruction for Variation for Special Cases
Table 5.7 Special Cases
Authorised Party Variation Category
Superintending Officer / Project Director Instructions for Variations / Re-measurement of

provisional quantities not involving addition or
variation to the original scope of works, and
which result in reduction in contract sum
Superintending Officer / Project Director Price adjustments as approved by the Treasury
Superintending Officer / Project Director Adjustment of Prime Cost Sum, Provisional Sum
and re-measurement of provisional quantities in
accordance with provisions of contract.
Re-measurement of provisional quantities

without addition or variation to original scope of
works
Variation Order Committee a) value of price increase for the re-

chaired by the SO or PD named in the Contract measurement of quantities allowed upto
30% of original contract sum but not
exceeding RM3 million which ever is the
lowest
Variation Order Committee chaired by Deputy b) value of price increase for the re-
Director General measurement of quantities allowed upto
exceeding RM4.5 million which ever is
the lowest
Variation Order Committee chaired by Director c) value of price increase for the re-
General measurement of quantities allowed upto
exceeding RM6 million which ever is the
lowest
Chief Secretary of Treasury or State Finance
officer where relevant d) In all other case
Ref : SPP 7/2007 and AP 202 (31 July 2008); SP JPS Bil. 5/2008
For the composition of committee for re-measurement of provisional quantities, please refer to SP
JPS Bil 5/2008.

5.3.8 Expenditure of Provisional Sums
The Authorised Party, for approval of expenditure of Provisional Sums under any contract, is as
follows:
Table 5.8 Provisional Sums
Authorised Party Value
VO Committee at level of SO Not exceeding 1 million
VO Committee at level of Deputy Director Exceeding RM1 million – RM 3 million

General
VO Committee at level of Director General Exceeding RM 3 million
5.3.9 Approval of Contractor’s Claims for Loss and Expense, Permitted under the
Contract
Table 5.9 Loss and Expense
Authorised Party Types of Claim
A committee Loss and expense due to delay on the part of

chaired by Head of Department, and the Government, and/or due to compliance with
includes the Legal Advisor statutory requirements.
A committee Discrepancies in or between the contract

chaired by Head of Department, and documents.
includes the Legal Advisor
A committee Other claims permitted under the conditions of

chaired by Head of Department contract.
A committee Any other costs in connection with fees and

chaired by Head of Department charges for relocation of sewerage, water
supply, electric supply, etc.
Ref : SPP 7/2007 and AP 202 (31 July 2008)
5.4 CIRCULATION OF DOCUMENTS
In the administration of the contract, pertinent documents or information such as:
 Letter of Acceptance (Chapter 8)

 Contract documents (Chapter 9)
 Certificate of Adjustment of Contract Sum (Chapter 12)
 Extension of time (Chapter 13)
 Etc.
must be conveyed to various pertinent parties, who may not be directly connected to the contract.
Refer to Appendix 5A : Distribution of Documents for Works Funded by Federal Government

(Pengedaran Dokumen-dokumen (Kontrak Kerja) Biayaan Persekutuan), and ensure that copies of
such documents or information are forwarded to the relevant parties.

5.5 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars for the limits of authority.
Treasury Circular
[1] SPP Bil. 2/1999: Had Nilai Perolehan, Kuasa, Tanggungjawab Lembaga Perolehan Dan
Jawatankuasa Sebutharga.
[2] SPP Bil. 2/2001 (Tambahan Pertama Kepada SPP Bil. 2/1999): Had Nilai Perolehan, Kuasa,
Tanggungjawab Lembaga Perolehan Dan Jawatankuasa Sebutharga.
[3] SPP Bil. 11/2001 (Tambahan Kedua Kepada SPP Bil. 2/1999): Perubahan Had Nilai Dan Kuasa
Lembaga Perolehan Agensi
[4] Bil 7 Tahun 2007: Peraturan Arahan Perubahan Kerja (Variation Order)
[5] Bahagian Perolehan Kerajaaan Ministry of Finance: Garis Panduan Penilaian Tender (Edisi Januari
2008)
[1] AP 198: Setuju Terima Tender

[2] AP 202: Arahan Perubahan Kerja
[3] AP 203: Pengiraan Nilai Arahan Perubahan Kerja
DID Circulars
[1] SPJPS.UB 1/1997: Peraturan dan pihak-pihak Berkuasa Meluluskan Pengukuran Semula Kuantiti
Sementara
[2] (36)dlm. PPS.10/4/2 CUB Jld.3 (27/7/98): Pengedaran Dokumen-dokumen (Kontrak Kerja)
Biayaan Persekutuan
[3] (37) dlm. PPS. 10/4/2 CUB Jld.3 (21/9/98): Urusan Dengan Lembaga Perolehan Kementerian
Sumber Asli dan Alam Sekitar & Perbendaharaan Malaysia
[4] SP JPS Bil. 2/2001: Peraturan dan Pihak-Pihak Berkuasa Meluluskan Pengukuran Semula Kuantiti
Sementara (Tambahan Pertama Kepada Surat Pekeliling JPS.UB.1/1997)
[5] SP JPS Bil. 1/2003: Perlantikan Pegawai Penguasa (P.P), Perwakilan Kuasa Pegawai Penguasa
(Wakil P.P) Dan Pegawai-Pegawai Yang Diberi Kuasa (PYDK) Dalam Urusan
Pentadbiran Kontrak.
[6] SP JPS Bil. 2/2008: Peraturan Mengenai Arahan Perubahan Kerja Dan Pelarasan Harga Bagi
Kontrak Kerja
[7] Minister of Natural Resources and Environment: Pemberian Kuasa Di Bawah Seksyen 2 Akta
Kontrak 1949 tarikh 18 Februari 2009

DID MANUAL
Volume 10
Chapter 5
– Authority
APPENDIX 5A
Distribution of Documents
for Works Funded by
Federal Government
[Pengedaran Dokumen-Dokumen
(Kontrak Kerja)
Biayaan Persekutuan]

APPENDIX 5A DISTRIBUTION OF DOCUMENTS FOR WORKS FUNDED BY

FEDERAL GOVERNMENT [PENGEDARAN DOKUMEN-DOKUMEN
(KONTRAK KERJA) BIAYAAN PERSEKUTUAN]
Certificate of
Certificate
Completion/
Adjustment of Delay Certificate
Letter of Contract Certificate of
Item Office of Contract and of Non-
Acceptance Document Completion of
Sum Extension completion
Making Good
of Time
Defects
1. Chief Secretary,
Ministry of Natural
Resources and √ √ √ √ √ √
Environment
2. Auditor General √ √ √ √ √ √
3. Internal Audit Unit,
Ministry of Natural
√
Resources and
Environment
4. Director General,
Board of Income √
Tax
5. Banks/ Insurance
√ √ √(AR) √(AR) √
Companies
6. Pusat Khidmat
√ √ √ √
Kontraktor
7. CIDB √
8. State Labour Office
√
9. State PERKESO √ √
10. Contractor √√(AR) √√(AR) √ √ √ √
11. Divisional Director,
√ √√ √ √ √ √
DID HQ
12. Director QSCD #√√
√ √ √ √ √
(original)
13. * Director
Administration √ √ √ √ √ √
Service , DID HQ
14. ** Senior
Accountant √ √ √ √ √ √
Treasury (State)
15. State Director/
√ √√ √ √ √ √
Project Engineer
16. Consultants (if any) √ √√ √ √ √ √
17. Ministry of Finance,
Government
Procurement
Administration √ √
Division (For direct
negotiated contracts
only)
Notes:
√√ - Contract Documents and Plans
AR - Registered Post
* - if payment made at HQ only
** - if payment made at State only
# - Contract exceeding RM 1 million only

DID MANUAL
VOLUME 10
CHAPTER 6
PREPARATION OF
TENDER DOCUMENTS
Chapter 6 – PREPARATION OF TENDER DOCUMENTS
Table of Contents

List of Flowcharts ......................................................................................................................6-ii
6.1 INTRODUCTION ............................................................................................................. 6-2
6.2 PROCEDURES................................................................................................................. 6-2
6.3 GUIDANCE NOTES.......................................................................................................... 6-6
6.3.1 Prime Cost (P.C.) And Provisional Sums............................................................... 6-6
6.3.2 Tender Documents And Tender Table Documents ................................................ 6-6
6.3.3 Pre-bid Documents for Design-and-Build ............................................................. 6-7
6.4 REFERENCE DOCUMENTS ............................................................................................... 6-7
6.5 REFERENCES.................................................................................................................. 6-8
APPENDIX 6A Tender Document Checklist ............................................................................ 6A-1

List of Flowcharts
Flowchart Description Page
Flowchart 6.1 Preparation of Tender Documents 6-1

Flowchart Description Action By Reference
1 1. Estimated cost of works PT Chapter 3 –

qualifies it for tender process, Procurement -
and instruction from PjH to Overview
proceed is received.
2. Prepare front-end sections. PO Tender

2
Document
Checklist
3. Prepare Summary of Tender / PO

3
Bills of Quantities
4. Forward queries (if any) to PO

4 Design Team for comments
5. Edit Summary of Tender / Bills PO

5
of Quantities
6. Check that document is PO

6
complete and in proper order
7 7. Convene Design Team / QS PO

coordination meeting, if
necessary
8. Incorporate comments or PO
8
changes, and prepare final
Tender Document
9 9. Quality Audit BUBK
10. Tender Document ready for PO

10 printing and issue
Flowchart 6.1 – Preparation of Tender Documents

6 PREPARATION OF TENDER DOCUMENTS
6.1 INTRODUCTION
 The guidelines on the preparation of tender documents.
6.2 PROCEDURES
Please refer to Flowchart 6.1 – Preparation of Tender Documents.
Action By
Step Procedures / Tasks
/ Reference
1 Generally
The tender documents should contain accurate information For information

and definitive scope of works.
This minimises ambiguity, and reduces the need for variations

during construction stage. This may also reduce the risks of
disputes arising from discrepancies in or between the
documents.
(a) Ascertain that the estimated cost of works qualifies it for tender Action By:
process PT
 For tender, the estimated cost of works is more

than RM200,000.
 If less than RM200,000 – refer Guidelines on AP 171 &

Preparation for Quotation Document AP 181
(b) Ascertain the procurement route agreed See Chapter 3 –

Procurement -
 Conventional (with quantities) Overview
 Conventional (without quantities)
 Design and Build
 Special project.
(c) Commence preparation of tender documents upon receipt

of instruction to proceed from the Project Head

Action By
/ Reference
2 Prepare Front End Sections Action By:

Ir/Sr
(a) Collate and prepare the documents required for the Tender
Document in accordance with the DID requirements and
standardized format. Ensure that the documents:
 Clearly and concisely defined the works to be

executed.
 Are consistent with one another and free of ambiguity.
 Have included and highlighted all the bye-laws and
Authorities requirements.
 Comply with the latest policies and circulars.
(b) Draft the tender documents from the standard DID Refer Sections
documents. 6.5 & 6.6
(c) Prepare/compile specifications for the Tender Document.
(d) Prepare Notice of Tender and/or Letter of Invitation to

Tenderers, for insertion into the tender document: Please
refer Chapter 7 [Invitation and Receipt of Tender].
(e) Use the Tender Document Checklist as guidance.
(f) Agree with the Design Team
 Programme for receipt of information, request for

progressive release of drawings
 System of numbering drawings
 Numbers of sets required
 Revision notation
 Items to be covered by Prime Cost or Provisional
Sums.
(g) Obtain/register the tender/contract number, and insert on

the cover page. Ensure that the correct format/code is
used, with reference to:
 Federal/State funded project

 The state in which the project is carried out
 Code for types of works / Division
 Running Number
 Year
e.g. “JPS/P/J/S/1/99” for Federal funded project,

administered in Johor for drainage works/Division, being
the first tender for year 1999. Re-tendered works uses the
old tender number, with the words “Tawaran Semula”
appended at the end. Note that sub-contracts shall follow
the main contract number.

Action By
/ Reference
2a Design and Built Pre-bid Documents

For information
(a) For design-and-build projects, the Pre-bid documents are
documents prepared in anticipation of contractor’s
proposal (or ‘bid’).
It includes the Government’s needs statement (or

requirements). The Contractor’s proposal must comply
with the requirements set out in the Pre-bid Document.
(b) Collate and prepare the Pre-bid Documents in accordance Action By:
with the DID requirements and standardized format. PO
Ensure that:
 The Government’s Needs Statement clearly identifies

the design criteria including performance criteria (and
specifications, if applicable) for the works, and the
purposes of the works.
 The Pre-bid Documents are consistent with one another

and free of ambiguity.
 Comply with the latest policies and circulars.
(c) Draft the tender documents from the standard DID

documents.
(d) Prepare Notice of Tender and/or Letter of Invitation to

Tenderers, for insertion into the tender document: Please
refer Chapter 7 [Invitation and Receipt of Tender].
3, 4 & 5 Design Team Coordination Meeting Action By:

PO
Prepare the Bills of Quantities / Summary of Tender – refer
Tender Document Checklist.
Forward queries, if any, to the Design Team for comments or

clarification.
Incorporate all comments and/or clarification, as appropriate.
The completed Bills / Summary should be edited and checked

by a senior QS/Engr.
6 Check that Document is Complete and In Proper Order Action By:

PO
Check through the documents, and ensure that it is complete
and in proper order.
Cross references, if any, should be correctly referred.

Action By
/ Reference
7 Convene Design Team And Ir/Sr Coordination Meeting, If Action By:

Necessary PO
If necessary, arrange coordination meeting between Design

Team and PO, to answer queries on the drawings and/or
specifications, or give comments and clarifications on the
tender document.
8 Incorporate comments or changes and prepares final Tender Action By:

Document PO
Incorporate all comments or changes to the tender document.
9 Quality Audit Action By:

PO /BUBK
Forward a full set of the finalised Tender Document, together
with the Tender Document Checklist to the BUBK for quality
audit.
10 Tender Document Ready For Printing And Issue To Tenderers Action By:
PO
Arrange for the printing the required number of sets of the
Tender document.
Arrange for the display of the Tender Table Document.
Issue invitation to tenderers : Please refer to Chapter 7

[Invitation and Receipt of Tender].

6.3 GUIDANCE NOTES
6.3.1 Prime Cost (P.C.) And Provisional Sums
“Prime Costs Sum” or “P.C. Sum”, and "Provisional Sum" may be included in the Bills of Quantities, or
Summary of Tender.
“Prime Costs Sum” or “P.C. Sum” is an amount included in a bill of quantities to cover a particular bit
of work or supply of materials to be carried out by a nominated sub-contractor or a supplier.
o These are usually specialist works or supplies.
o The Bills of Quantities or Summary of Tender should allow the Contractor to price for the
‘profit and attendance’ associated with the works or supplies.
o Where the Contractor is capable of carrying out such specialist works or supplies, the SO is
empowered to accept the Contractor’s tender for such works or supplies. The Contractor’s
tender is deemed to include the profit and attendance, and no further profit and attendance
will be paid.
"Provisional Sum" means a sum included and so designated in the Contract as a specific allocation
for the execution of work or the supply of goods materials or services which may be used in whole or
in part or not at all at the direction and discretion of the SO.
o Allow for the Contractor’s profit margin in the Provisional Sum.
o At the SO’s discretion, works or supplies to be executed or supplied under Provisional Sums
may be treated as allowed under P.C. Sums.
As far as possible, provide a reasonably accurate amount for the P.C. Sum or Provisional Sum.
Please also refer to Chapter 20 [Prime Cost and Provisional Sums].
6.3.2 Tender Documents And Tender Table Documents for Conventional Contracts
The Tender Documents and Tender Table Document comprise the documents in the following order:
 Notice of Tender / Letter of invitation to tenderers / Letter of Intent (whichever is applicable)

 Check List of submission of tenders
 Instructions to Tenderers & Conditions of Tendering
 Form of Contract
o Based on Quantities – use Form JKR 203A
o Based on Drawings and Specifications – use Form JKR 203
 Special Provisions to Conditions of Contract
 Form of Tender
o Based on Quantities – use Form JKR 203B
o Based on Drawings and Specifications – use Form JKR 203C
 Letter of Acceptance (JKR 203D)
 Specifications
 Preambles
 Bills of Quantities, OR Summary of Tender and Schedule of Rates.
 Drawings
 Form of Guarantees for Performance Bond/Advance Payment
 Informative Document

6.3.3 Pre-bid Documents for Design-and-Build Contract
The Pre-Bid Documents comprise the documents in the following order:
 Notice of Tender / Letter of invitation to tenderers / Letter of Intent (whichever is applicable)

 Instructions to Tenderers & Conditions of Tendering
 Form of Contract – PWD Form DB/T
 Form of Tender
 Letter of Acceptance
 The Government’s Requirements (Needs Statement)
 Form of Guarantees for Performance Bond/Advance Payment
 Informative Document
Please refer to Volume 10A for the standard reference (or sample) documents for the procedures or
processes outlined in this Chapter.
 Tender Document Covers
 Table of Contents
 Notice of Tender
 Letter of Invitation to Tenderers
 Checklist for Submission of Tender for Use by Tenderers (Senarai Semakan Mengemukakan
Tender Untuk Kegunaan Pentender)
 Instructions to Tenders
 Amendments to Form PWD 203
 Amendments to Form PWD 203A
 Special Provisions to Conditions of Contract
 Form of Tender & Conditions of Tendering JKR 203B (for JKR 203A)
 Form of Tender & Conditions of Tendering JKR 203C (for JKR 203)
 Letter of Acceptance JKR 203D
 Sample Format for Bills of Quantities
 Form of Guarantee for Performance Bond
 Form of Guarantee for Advance Payment Bond
 Sample Drawings List
 Informative Documents

6.5 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars on preparation of tender documents.
Treasury Circular
[1] Bil 13 Tahun 1999: Garis Panduan Penggunaan Khidmat Pengangkutan dan Kemudahan
Peralatan Untuk Menguruskan Projek Melalui Kontrak Kerja
[2] Bil 7 Tahun 2002: Penggunaan Bahan/Barangan/Perkhidmatan Tempatan Dalam Perolehan

Kerajaan
DID Circulars
[1] SPJPT 3/1987: Peruntukan "Contingency Sum" Dalam Dokumen Tender
[2] SPJPS.CUB 1/1992: Pindaan kepada Borang Kontrak PWD 203 (revised 10/83), PWD 203A
(revised 10/83), JKR 203B-Pin. 1/82, JKR 203C- Pin. 1/82 dan JKR 203D- Pin. 1/82.
[3] SPJPS.UB 2/94: Format Muka Hadapan dan Pemberian Nombor Kepada Dokumen Tender/
Kontrak.
[4] Tambahan Pertama SPJPS.UB 2/94: Tambahan Pertama Kepada Surat Pekeliling JPS.UB 2/94.
[5] SPJPS.UB 4/1994: Garispanduan Menetapkan Amaun Denda Gantirugi Tertentu dan Ditetapkan.
[6] SPJPS 3/1995: Peraturan Penyedian Dokumen Tender dan Kontrak
[7] SPJPS.Bil. 4/1999: Format Muka Hadapan dan Pemberian Nombor Kepada Dokumen
Tender/Kontrak
[8] SPJPS Bil. 5/2000: Peruntukan Baru Dalam Dokumen/Tender Dan Pindaan-Pindaan Kepada
Borang Kontrak JKR 203/203A, Borang Tender Dan Surat Setujuterima Tender.
[9] SPJPS 1/2001: Garispanduan Penggunaan Khidmat Pegangkutan Dan Kemudahan Peralatan
Untuk Pengurusan Projek Melalui Kontrak Kerja.
[10] SPJPS Bil. 1/2002: Penerimaan Jaminan Syarikat Kewangan Berlesen Dan Insurans Bagi Bon
Pelaksanaan Serta Bayaran Wang Pendahuluan. (Perlaksanaan Surat Edaran Perbendaharaan
Bertarikh 4 Februari 2001)

DID MANUAL
Volume 10
Chapter 6
– Preparation of Tender Documents
APPENDIX 6A
Tender Document Checklist

APPENDIX 6A TENDER DOCUMENT CHECKLIST
PROJECT File Ref.:

TITLE
Estimate Contract Sum:
Allocation/ Funder:
Tender Type:
Receipt Completion
Action by Name of Officer Send Date
Date Date
PO 1
PO 2
QA2
Item No. Description1 PO1 PO2 QA2 Comments

Tick () after checking
1.0 Cover Page Format and
registration of Tender Nos.
The correct procedure is
adopted.
2.0 Notice of Tender

2.1 Correct Head and Subhead Ref.: SPP 16/1993
2.2 Correct class of Contractor.
2.3 State the type of companies which 1. Ref.: SPP 5/2007 –

are eligible to participate, base on Eligibility of
the estimated value of the tender Contractors.3
2.4 To state if tender is only for

Bumiputera Contractors.
2.5 Correct place of buying tender.
2.6 Amount of documentation fee4 and

in whose name to be made, is
stated.
2.7 Site visit – date, time & place

stated.
To state if compulsory
2.8 Date, time and place for closing of

tender is stated.

3.0 Instructions to Tenderers
3.1 Where and when tender closes.
3.2 Amount and other articulars of

Tender Deposit (for International
Contracts only)
Ref.: SP JPS. UB.
3.3 Include clause on information
3/1994
regarding tenderer’s Financial and
Technical Capacity if tender is
>RM1.0m.
3.4 If funded by international body,

ensure that their guidelines for
procurement are complied with.
3.5 Include clause regarding

correction of errors for
internationally funded tenders.
4.0 Form of Contract
4.1 Use correct form.
4.2 Articles of Agreement
The following to be filled in:
4.2.1 Paragraph 1
(i) Name of Government. For Federal Projects -

Government of
Malaysia.
For State Projects

- Name of relevant
State.
(ii) Description of intended
Works.
(iii) Drawing nos/as stated in

list of drawings.


4.2 4.2.2 Clause 2(e)
(Cont’d)
Special Provisions to
Conditions of Contract.
(i) Advance Payment clause
(ii) Variation of Price clause
(iii) Performance Bond in the
Form of Performance
Guarantee Sum
(iv) Performance Bond in the
Form of Performance
Guarantee Sum
Choose relevant one only
4.2.3 Clause 2(I) – New Clause
Amendments to PWD Forms.

4.3 Conditions of Contract
4.3.1 Clause 1(a)(i)
Same as item 4.2.2 and 4.2.3
4.3.2 Clause 1(a)(iv)
Check designation of S.O. is Ref.: SP JPS Bil.

correct. 1/2003
4.3.3 Clause 26(d) (203A only)
Delete this clause if funded by

International body.
4.4 Appendix to Conditions of Contract
4.4.1 Clause 3(a)(i)

Clauses 40 and 43 and
Clauses 51, 52 and 54 are Ref.: SP JPS Bil.
designated to the correct 1/2003
Officers.

4.4 4.4.2 Clause 3(a)(ii)

(Cont’d)
Powers to approve Variations
in accordance with latest Ref.: AP202.2
Treasury and JPS circulars
4.4.3 Clause 33
Minimum insurance coverage

is sufficient5
4.4.4 Clause 33(a) and 36(b)
Amount of excess – Nil
4.4.5 Clause 34
Not used.
4.4.6 Clause 36
Insert the following

‘Total Amount Insured’
... ... ... RM ...............
4.4.7 Clause 38(b)
Date for Possession – ‘To be

Determined’.
4.4.8 Clause 40
Check if the rate of

Liquidated and Ascertained
Damages is reasonable6.
4.4.9 Clause 41
Sectional Completion
- To be filled if required.
4.4.10 Clause 45
Defects Liability Period in

accordance with Arahan
Perbendaharaan 200.5(a).7


4.4 4.4.11 Clause 47(a)
(Cont’d)
(i) Value of work done
before First Interim
Certificate will be issued
5% of Builder’s work or
RM100,000 whichever is
lesser.
(ii) Value of work done

before each subsequent
interim certificate will be
issued – 15% of average
monthly value of
Builder’s Work or ½ of
the first interim
payment, whichever is
lesser.
4.4.12 Period for honouring Sufficient period to be

payment stated but not less
than 30 days.
5.0 Special Provisions to Conditions
of Contract
5.1 Advance Payment
5.1.1 Use correct Special

Provision.
5.2 Variation Of Price Ref.: SPP 3/2008
5.2.1 Use correct Special Provision

/ forms.
5.2.2 Quantity of steel bars and

cement are stated in
Lampiran……..... if required
for the works.
5.2.3 Forms for estimation of

diesel consumption &
bitumen are included.
5.2.4 Complete the forms, and

enter the relevant information


5.3 Performance Bond in the Form of
Performance Guarantee Sum

Provision.
5.4 Restriction and Procedure on Use

of Imported Good/Materials

Provision.
5.5 Amendments to Standard PWD

forms
Use correct amendments.
6.0 Form of Tender
6.1 Use the correct form.
6.2 The following are filled in:-
6.2.1 Title of tender
6.2.2 List of drawings including

checking the number of
drawings against the List of
Drawings.
6.2.3 Completion period (fixed by

Department).
Ensure period of completion

fixed by the Department is
reasonable, taking into
account factors like urgency,
complexity and rainy
periods.
6.2.4 Prime Cost or Provisional
Sums if applicable.
6.3 Tender validity period is amended. 90 days for

conventional contracts.
180 days for DB
contracts.


6.4 Include as clause 7(e) the
following phrase:-
‘Polisi Insurans Kerja atau Nota

Liputan berserta dengan resit bagi
premium yang telah dibayar’.
6.5 Conditions of Tendering
(i) Clause 1 (c)

- Second line to be deleted if
funded by International body.
(ii) Clause 8
- Amend Tender Validity
period.
(iii) Clause 10(e)

- Insert as per item 6.4
above.
7.0 Letter of Acceptance
7.2 List of addresses where copies to

be sent is correct.
8.0 Specifications
8.1 Scope of Works.
To correspond to works indicated

on site plan and measured in
B.Q./Summary of Tender.
8.2 Technical specifications are

provided for all items of work and
are comprehensive, clear,
appropriate and relevant to the
works.
8.3 Cross References and Page Nos.

are correct.
8.4 Addendum Specification prepared

for specific works (for Lump Sum
contract only)


9.0 Preamble
9.1 To check the unit of measurement

as stated in the preamble is
consistent with the measurement
in the Bills for the various items.
9.2 The method of measurement is

stated.
9.3 The method of measurement does

not give rise to unnecessary or
impractical maintenance of site
records.
9.4 The general composition of the

unit rate is stated.
9.5 No duplication in the measurement

of items.
10.0 Bill of Quantities
10.1 A general look at the quantities to

ensure no obvious mistakes.
10.2 All necessary dimensions are given
10.3 All necessary items are measured. No ‘Rate Only’ items.

(Items without
quantities).
No ‘Contingency Sum’
10.4 P.C. Sum – to include item for items.
Profit (%) and attendance (Lump
Sum).
10.5 Amounts for P.C and Provisional

Sums stated in ‘Amount’ column.
10.6 Item descriptions are concise,

consistent and accurate.
10.7 Item description to correspond to

drawings and/or specification.
10.8 Cross References and Specification

clause Nos. correct.


10.9 All sections of the Bill of Quantities
are carried to the Summary.
10.10 Summary page provided.
11.0 Summary of Tender (For Contract

Based on Form JKR203)
11.1 For Lump Sum items, statement
on quantities should be avoided,
otherwise ensure consistency with
those stated in specifications and
drawings.
12.0 Drawings
12.1 Drawings must be clear and up to

date
12.2 Drawing Nos. tally with list of

drawings.
12.3 Drawings for works based on

Lump Sum tender must be
complete and scope/extent of
works are coloured if necessary
13.0 Form of Guarantees for Ref.: SPP 5/2007

Performance
Bond/Advance Payment
13.2 Latest list of Approved Banks &

Insurance Companies attached
14.0 Informative Documents Ref.: SP JPS 3/1994
14.1 All standard forms are

incorporated
14.2 Form BA (Bank/Financial

Institution Report) attached, not
bound.


15.0 General
15.1 All tender documents must be

carefully prepared and complete
so as to give effect to the
expressed requirements of the
Department.
15.2 The work to be executed must be

clearly and concisely defined and
specified, consistent with one
another and free of ambiguity.
15.3 Documents must be free of

inconsistencies and discrepancies
between the various sections and
the drawings.
15.4 Ensure that all bye-laws and

Authorities requirements are
included and highlighted in the
tender documents:
15.5 Complies with the latest policies

and circulars
Signature of Checking Officer Signature of Verifying Officer Signature of Quality Auditor

Date of Completion of Task: Date of Completion of Task: Date of Completion of Task:

1
ENDNOTE:
1
This Checklist may be adapted for the Design and Build / Turnkey Contract, with relevant
changes to the Clause reference.
2
Quality Audit; If Relevant.
3
Estimated Tender Value, and Eligibility of Contractor to Register: SPP 5/2007
Estimated Tender Value Eligibility

< RM 30 million (a)
RM30 – RM50 million (a) dan (b)
> RM50 million (a), (b) or (c)
Classification / Eligibility to register
(a) Local company wholly (100%) owned by Malaysian citizens.
(b) Local company listed on the Bursa Malaysia, that is, a company incorporated in Malaysia
by Malaysian citizens with condition that no foreign shareholder may hold more than
30% of the shares, and the board of directors, management and staff are wholly
(100%) Malaysian citizens.
(c) Joint venture company incorporated in Malaysia (whether or not listed on the KLSE),
with the condition that foreign equities do not exceed forty nine percent (49%), and
majority members of the Board of Directors, management and staff and Malaysian
citizens.
4
Documentation fee & Drawings
Documents Drawings
A4 @ RM 0.35 = A3 @ RM0.70 =
A3 @ RM 0.70 = A2 @ RM3.50 =
A1 @ RM6.50 =
A @ RM8.00 =
Total = Total =

ENDNOTE: (Cont’d)
5
Minimum insurance coverage for third party (public liability) insurance. The following
amounts may be used as a guide:
limits of liability a.o.a. for Unlimited

Contract Sum
Number of Accidents
Not exceeding RM 50,000 RM10,000
RM 50,001 to RM 100,000 RM25,000
RM 100,001 to RM 200,000 RM50,000
RM 200,001 to RM 500,000 RM100,000
RM 500,001 to RM 5.0 million RM200,000
RM 5.0 million to RM 20.0 million RM500,000
RM 20.0 million to RM 50.0 million RM1.0 million
Exceeding RM 50.0 million RM2.0 million
6
Liquidated and Ascertained Damages at the rate of : [(BLR*/365)% x Contract Sum] per
day. *BLR = Base Lending Rate
7
Guideline for Defects Liability Period:
Contract Sum Defects Liability Period

RM20,000 – RM200,000 6 months
> RM200,000 12 months
Design and Build/ Turnkey 24 months

DID MANUAL
VOLUME 10
CHAPTER 7
INVITATION AND
RECEIPT OF TENDER
Chapter 7 – INVITATION AND RECEIPT OF TENDER
Table of Contents

List of Flowcharts ..................................................................................................................... 7-ii
7.1 INTRODUCTION.......................................................................................................... 7-3
7.2 PROCEDURES ............................................................................................................. 7-3
7.3 REFERENCE DOCUMENTS .......................................................................................... 7-10
7.4 REFERENCES ............................................................................................................ 7-10
APPENDIX 7A Checklist for Tender Opening Committee (Senarai Semakan Oleh

Jawatankuasa Pembuka Tender)…………………..……………………………………………. 7A-1

List of Flowcharts
Flowchart 7.1 Flowchart – Invitation and Receipt of Tender (Open / Selective) 7-1
Flowchart 7.2 Flowchart – Pre-Qualification of Contractors 7-2

1 1. Applicable for Open & - See Chapter 3

Selective tendering.
Open Selective 2. Is it open tender?

tender -
2
Yes No
3. Selection of Tenderers by PO
Authorised Party?
3
Yes
No
4. Select Tenderers PO
4 5
5. Undertake Pre- Various parties Refer to

Qualification of Tenders Flowchart 7.2
No
6
6. Is the List of Tenderers Procurement See Chapter 5
Yes approved? Board / MoF - Authority
7
7. Either
 Re-select tenderers, or
 Proceed with open tender
8A 8B process
8A. Prepare and issue Notice PO

of Tender (Open)
9
8B Prepare and issue Letter PO
of Invitation (Selective)
10 9. Sale of / Issue Tender PO

Document
11 10. Issue Addendum (if any) PO
11. Prepare Tender estimates PO

12
12. Convening of Tender BUBK

Opening Committee
13
13. Closing / Receipt of tender BUBK/ Tender
Opening
Committee
14
14. Tender evaluation See Chapter 8
Flowchart 7.1 – Invitation and Receipt of Tender (Open / Selective)

5a 5a. Ascertain the criteria for PT / PO From Flowchart

selection of contractors 7.1, step 3
5b 5b. Prepare and issue Notice PO

of Tender for Pre-
qualification
5c 5c. Receive submissions from PO

contractors.
5d 5d. Evaluate the submission Evaluation

from contractors. Officer
5e 5e. Prepare Pre-Q evaluation PO

report (Kertas laporan
penilaian)
5f 5f. Endorsement of Pre-Q Evaluation

Evaluation Report Committee
5g 5g. Approval of Pre-Q DG

Evaluation Report
5h 5h. Submit Pre-Q evaluation BUBK

report to Procurement
Board for approval
5i 5i. Decision and approval Procurement

Board
5j 5j. Notify the unsuccessful PO Return to

contractors Flowchart 7.1,
step 6
Flowchart 7.2 – Pre-Qualification of Contractors

7 INVITATION AND RECEIPT OF TENDER
7.1 INTRODUCTION
 The guidelines on the invitation, receipt and opening of tenders.
7.2 PROCEDURES
Please refer to Flowchart 7.1 – Invitation and Receipt of Tender (Open/Selective).
Action By
/ Reference
1&2 Determine procurement procedure adopted For information
Determine procurement procedure to be adopted :
 Open tender
 Selective tender
 Negotiation
 Quotation
The procedures in Chapter 7 to Open and Selective Tendering

only.
Refer Chapter 3 on the description of the procurement

procedures.
3 Selective Tender Action By : PO
Owing to the specialist nature and complexity of requirements

of certain projects, it may be desirable to invite a tender from
selected tenderers.
Such special requirement may include:
 Complexity of nature of works

 Urgency
 Limited pool of specialist contractors
 Special safety and/or environmental requirements
 National security.

Action By
/ Reference
4 List of Tenderers selected by Authorised Party Action By : PO
This method usually applied where there is insufficient time to

undertake a pre-qualification exercise.
The tenderers are selected from PKK’s (Pusat Khidmat

Kontraktor) database of contractors with good track records.
The selection of tenderers is based on:
 Requirement of specialist skills or knowledge,

 Safety, and
 Urgency.
The List of Tenderers shall be proposed by the Project Head /

Project Team.
The list shall be submitted, through BUBK, to DG for approval

prior to submission to the Tender Procurement Board at
Ministry/MoF.
5 Pre-Qualification - Generally Refer to Flowchart
7.2 – Pre-
The purpose of the pre-qualification exercise is to ensure Qualification of
contractors who are suitably qualified are invited to tender. Contractors
Generally, the tenders are assessed on:
 General reputation of the tenderer.

 Capability, based on management, personnel, number
of technical staff
 Track records (and recent work experience)
 Available capacity in relation to the current workload.
 Financial stability and record.
 Other relevant criteria.
5a Ascertain the Criteria for Selection of Contractors Action By : PT/PO
Ascertain and agree with the Project Team the criteria for
selection of contractors.
For selection under Procurement Board, at least 10 Bumiputra

contractors must be included.
Refer to current DID/Treasury Circulars on selection of

contractors. Refer SPP 5/2007

Action By
/ Reference
5b Prepare and issue Notice of Tender for Pre-Qualification Action By : PO
Ensure that the details are correctly filled in the Notice.
The Notice must be:
 State the qualifications and other special requirements,

required of the tenderers.
 Be published in at least 1 national daily newspapers (in

Bahasa Malaysia).
 Published at relevant websites, e.g. DID website, MyGov

Portal (www.gov.my) and CIDB website.
5c Receive Pre-Qualification (Pre-Q) Submissions Action By : PO
The closing date, time and office where the Pre-Q submissions
is received, is stated in the Notice of Tender for Pre-Q.
Submissions shall be opened by an Opening Committee (see

Tender Opening Committee, Chapter 7).
Late submissions must be rejected without opening.
Forward the submissions received to the Evaluation Officer. Action By : BUBK

5d Evaluate Pre-Qualification (Pre-Q) Submissions Action By :
Evaluation Officer
The Evaluation Officer will evaluate the submissions received,
based on the pre-agreed criteria (see Step 5a, above).
5e Pre-Qualification (Pre-Q) Evaluation Report Action By :
Evaluation Officer
Prepare the Pre-Q Evaluation Report (Kertas Laporan Penilaian)
in the approved format, with list of qualifying contractors, for
submission to the Tender Procurement Board.
5f & 5g Endorsement & Approval of Pre-Q Evaluation Report Action By :
Evaluation Officer
The Pre-Q Evaluation Report shall be submitted to the
Evaluation Committee for review and endorsement.
Submit recommendations to the Director General, through Action By : BUBK

BUBK, for the DG’s approval prior to submission to the Tender
Procurement Board at Ministry.

Action By
/ Reference
5h & 5i Submission to the Procurement Board for Decision Action By : PO /
Procurement Board
Present the Pre-Q Evaluation Report to the Procurement Board
for decision.
Prepare the list of approved or short-listed contractors. Action By : PO
5j Notify Unsuccessful Contractors Action By : PO
Notify the contractors who were not approved or short-listed.
6&7 List of Approved Contractors For information
Only the approved contractors will be invited to tender.
If the short-listed contractors is not approved, then the Tender

Procurement Board may either decide to:
• Re-select tenderers, or
• Proceed with open tender process
8A Notice of Tender (Open Tender) Action by: PO
For open tenders, prepare Notice of Tender. Ensure that the

details are correctly filled in.
The Tender Notice must be:
 Be published in at least 1 national daily newspapers (in Refer also

Bahasa Malaysia). SPP 5/2007
 Published at relevant websites, e.g. DID website, MyGov

Portal (www.gov.my) and CIDB website.
8B Letter of Invitation (Selective Tender) Action by: PO
For selective tendering, issue Letter of Invitation to the listed

tenderers. Ensure that the details are correctly filled in.
Refer also
SPP 5/2007

Action By
/ Reference
9 Sale of / Issue Tender Document Action by: PO
Sale of document shall be made during office hours through out

the tender period
Check that
 The person collecting the tender documents is

authorized to do so.
 The contractor’s registration(s) are still valid.
 The Contractor’s details are correctly and completely

entered onto the Form of Tender, and in the
information box stamped onto the front cover of the
Tender Documents.
Where the contractor’s registration(s) had expired, the sale may

be carried out if the contractor signed and returned the
conditional letter for sale of the tender document, stating that
the tender will not be accepted if the contractor fails to renew
his registration(s) prior to the tender closing date.
The proceeds from the sale of tender documents shall be Refer: SPP 5/2007,
credited to the revenue. pages 17 & 18
Tender deposits (where applicable) shall be credited to “security

deposit” account, for eventual refund to the tenderers.
Minimum Tender Period
The tender period shall be as follows:
 Conventional tenders: at least 21 days from

o the 1st day of sale of tender documents is
available, as notified in the Tender Notice, or
o 21 days from the site visit
whichever is the later.
 Design and build tender: at least 45 days from the 1st

day of sale of tender documents [This is pending
approval from top management] is available, as notified
in the Tender Notice.

Action By
/ Reference
10 Issue Addendum (if any) Action by:
Engr/QS
Addendum, if necessary, is prepared by the Engr/QS.
Addendum must be issued to all tenders at least 1 week before

the closing of tender.
The Tender Addendum together with the instructions, listing the

page numbers issued and substitution to be made.
11 Prepare Tender estimates
Prepare the tender estimates. Action by: Engr/QS
The tender estimate shall be deposited into the tender box prior Action by: BUBK
to the tender opening date and time, in accordance with the Action by: Engr/QS
Tender Notice.
12 Appointment of Tender Opening Committee
The Director General shall appoint the Tender Opening Action by: DG
Committee.
The Tender Secretariat shall facilitate the calling of the Tender Action by: TS
Opening Committee, informing them of the closing date, time
and office where tender is received and to be opened.
13 Closing / Receipt of tender Action by: TS/
Tender Opening
The closing date, time and office where tender is received is Committee
stated in the Tender Notice and/or Letter of Invitation.
Late tenders must be rejected without opening.

Action By
/ Reference
13 Closing / Receipt of tender
(Cont’d)
Opening of tenders & Tender Opening Report Action by: TS/
Tender Opening
Prepare the Tender Schedule. committee
The tenders must be collected from the tender box, and all
tenders (including the departmental tender estimates) be
opened in the presence of the Tender Opening Committee.
Number each tender and enter the details for each tender onto
the Tender Schedule, in the order which the tender is opened.
For public tender opening, read aloud and check that the details
are entered correctly. Ensure that the Tender Schedule is
complete and is signed by all relevant officers.
A copy of the completed Tender Schedule must be displayed at

the office where the tender was closed.
Forward the tender documents received and the completed

Tender Schedule to the office where the tender was called for
evaluation.
14 Tender evaluation
See Chapter 8 – Tender Evaluation and Acceptance

 Notice of Tender
 Letter of Invitation to Tenderers
 Sample stamp (chop) for ‘Maklumat Pendaftaran Kontraktor’
 Conditional Letter for sale of tender document
 Jadual Tender
7.4 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars on the calling and receipt of tenders.
Treasury Circular
[1] Bil 5 Tahun 2007: Tatacara Penguruasan Perolehan Kerajaan Secara Tender
DID Circulars
[1] SP JPT.CUB 1/1989: Penyediaan Anggaran Jabatan Mengenai Sesuatu Tender
[2] SP JPS. UB 1/1993: Garispanduan Mengenai Pengurusan Tender
[3] SP JPS.UB 3/1993 : Surat Pemberitahuan Penerimaan Tender

DID MANUAL
Volume 10
Chapter 7
– Invitation and Receipt of Tender
APPENDIX 7A
Checklist for
Tender Opening Committee
(Senarai Semakan Oleh

Jawatankuasa Pembuka Tender)

APPENDIX 7A CHECKLIST FOR TENDER OPENING COMMITTEE (SENARAI

SEMAKAN OLEH JAWATANKUASA PEMBUKA TENDER)
No.
Tender
TAJUK
PROJEK
Tarikh Tender Ditutup: Jenis Tender: Kelas/Kepala/Sub-Kepala
yang ditetapkan:
Haribulan:
Jam:
BIL. KETERANGAN JKPT* ULASAN

Tandakan ()
selepas semakan
1.0 Peti tawaran dibuka secepat mungkin selepas

tender ditutup.
2.0 Semak keseluruhan dokumen yang dikemukakan Catatkan sebarang

(submission) dan pastikan ianya mengikut peraturan pemerhatian di
yang sepatutnya. Jadual Tender.
3.0 Beri nombor bersiri kepada setiap tawaran yang Catatkan sebarang
diterima. Catatkan di kulit muka hadapan dokumen, pemerhatian di
nombor siri pentender serta turunkan tandatangan Jadual Tender.
dan tarikh pembukaan.
3.1 Setiap dokumen terasing yang dikemukakan oleh

seseorang pentender hendaklah seboleh-bolehnya
dikepilkan menjadi satu atau paling kurang yang
mungkin. Catatkan nombor siri pentender bagi
setiap dokumen yang terasing dan turunkan
tandatangan ringkas (initial).
3.2 Pastikan juga pentender tidak membuka penjilidan

asal dokumen tender. Sebarang dokumen/maklumat
tambahan hendaklah dikemukakan berasingan dari
dokumen tender asal.
4.0 Semak Borang Tender: Catatkan sebarang

pemerhatian di
Jadual Tender.

4.2 Pastikan syarikat yang mengemukakan tender

adalah sama dengan syarikat yang membeli
dokumen tender.
4.3 Pastikan pentender melengkapkan keseluruhan

Borang Tender.
4.4 Pastikan harga tawaran di Borang Tender sama

dengan di `Grand Summary'.
4.5 Pastikan harga tawaran yang di catatkan di dalam

angka sama dengan yang dicatatkan di dalam
perkataan.
Pemerhatian:
(i) Sekiranya pentender tidak menandatangani

Borang Tender, jangan catatkan harganya di
ruangan harga kerana tendernya tidak akan
dipertimbangkan. Walau bagimanapun, catatan
boleh dibuat di akhir Jadual.
(ii) Sekiranya terdapat perbezaan harga tawaran

di dalam bentuk angka dan perkataan, pada
umumnya harga tender yang diambil adalah
yang di dalam perkataan, kecuali jika terdapat
kesilapan yang ketara pada harga di dalam
perkataan, yang mana harga dalam angka
bolehlah diambil (setelah dibandingkan dengan
harga di `Grand Summary').
5.0 Semak samada terdapat surat-surat pengesahan Catatkan di Jadual

bank di dalam sampul surat yang berlakri tender yang
disertakan bersama. Jika ada, buka sampul- pentender ada
sampul surat berkenaan dan catatkan nombor mengemukakan
siri pentender serta turunkan tandatangan. surat pengesahan
Stapelkan pada dokumen tender berkenaan. bank di dalam
sampul surat
berlakri dan telah
di buka oleh
Jawatankuasa.
Nyatakan juga
bilangan surat bank
yang diterima.

6.0 Turunkan tandatangan ringkas di:
(i) semua muka surat di Borang Tender
(ii) `Grand Summary' di Senarai Kuantiti dan
(iii) setiap kesilapan atau pertindihan tulisan di

Borang Tender dan Senarai Kuantiti.
7.0 Buka Anggaran Jabatan dan turunkan tandatangan

serta catatkan tarikh.
8.0 Semua semakan dan tindakan di atas hendaklah

saling disemak oleh Ahli Jawatankuasa untuk
mempastikan tiada kesilapan berlaku.
9.0 Peraturan Tambahan Untuk Tender Catatkan semua

Bekalan/Perkhidmatan dan `Design and Build' pemerhatian di
atas di Jadual
Tender.
9.1 Pastikan dokumen tawaran harga dan tawaran
teknikal dikemukakan dalam dua (2)
sampul surat yang berasingan.
9.2 Pastikan nama pentender tidak tercatat di dalam

dokumen penentuan teknikal.
Sekiranya terdapat nama/tanda syarikat dalam
dokumen teknikal, pastikan identiti
tersebut dipadamkan.
9.3 Catatkan nombor siri pentender di dokumen

tawaran harga dan tawaran teknikal.
Tandatangan Jawatankuasa Membuka Tender Tandatangan Jawatankuasa Membuka Tender
*Jawatankuasa Pembuka Tender

DID MANUAL
VOLUME 10
CHAPTER 8
TENDER EVALUATION AND

ACCEPTANCE
Chapter 8 – TENDER EVALUATION AND ACCEPTANCE
Table of Contents

8.1 INTRODUCTION ............................................................................................................. 8-2
8.2 PROCEDURES................................................................................................................. 8-2
8.4 REFERENCES.................................................................................................................. 8-5

List of Flowcharts
Flowchart 8.1 Tender Evaluation and Acceptance 8-1

1 1. Selection and appointment PH

of Evaluation Officer(s)
2 2. Tender Evaluation Evaluation

Officer(s)
3 3. Tender Clarification, if Evaluation SPP 5/2007

required Officer(s)
4. Prepare Tender Evaluation PO /

4 Report (Kertas Taklimat Evaluation
Tender) officer(s)
5 5. Endorsement by Tender
Evaluation Committee
6. Presentation of Tender TS
6 Evaluation Report / Tender
Recommendation to
Procurement Board /
MoF
No
7 7. Unconditional approval? Procurement
Board / MoF
8
Yes 8. Issue Letter of Intent PO
9 9. Comply with conditions PH/PO
10
10. Issue Letter of Acceptance PO
Flowchart 8.1 – Tender Evaluation and Acceptance

8 TENDER EVALUATION AND ACCEPTANCE
8.1 INTRODUCTION
 The guidelines on the evaluation and acceptance of tender.
8.2 PROCEDURES
Please refer to Flowchart 8.1 – Tender Evaluation and Acceptance.
Action By
Item Procedures / Tasks
/ Reference
1 Selection And Appointment of Evaluation Officer(s) Action by: PH
The Project Head shall assign the Evaluation Officer(s).
The Evaluation Officer(s) cannot be a member of the Tender

Opening Committee.
2 Tender Evaluation Action by: Evaluation

Officer
Refer to the latest Treasury / DID guidelines on Tender
Evaluation process.
Tender evaluation report should be completed within 30 days

from the receipt of the tender documents.
All information pertaining to tender evaluation to be treated as

confidential.
3 Tender Clarification Action by: Tender

Secretariat
If tender clarification (of the tender(s) received) is required by
the Evaluation Officer:
 Prior written permission of the chairman of the Tender

Procurement Board must be obtained.
 The clarification process is conducted by the Tender

Secretariat
 No communication is allowed between any Evaluation

Officer and any tenderer unless written permission is
given by the chairman of the Tender Procurement
Board.

Action By
/ Reference
4 & 4A Tender Evaluation Report Action by:
Evaluation Officer(s)
The Evaluation Officer(s) shall prepare the Tender Evaluation
Report (Kertas Taklimat Tender) in the approved format.
The Tender
The Tender Evaluation Report shall be submitted to the Tender Evaluation Committee
Evaluation Committee for review and endorsement. is appointed by the
DG, in accordance
Design and Build with the Treasury
Instruction (AP 191 &
For Design and Build contracts, the tender evaluation shall be 192).
divided into 2 stages; technical evaluation and financial
evaluation.
5 Tender Recommendation
Tender Evaluation Committee shall make necessary Action by: Tender

recommendations to the Director General, through BUBK, for Evaluation Committee
the DG’s approval prior to submission to the Tender
Procurement Board at Ministry.
BUBK shall submit the approved report to the Tender Action by:
Secretariat at Ministry for tabling at the Tender Procurement BUBK
Board.
The Tender Secretariat shall be responsible for convening the

Tender Procurement Board.
The Evaluation Officer shall present the Tender Evaluation

Report to the Tender Procurement Board for decision.
The composition of the Tender Procurement Board shall be in Action by:

accordance with the value of the tender/contract and the limit Tender Secretariat /
of authority (see Chapter 5 - Authority). Tender Procurement
Board
6 Approval
The Tender Procurement Board may approve the tender, with

or without condition.
7 Letter of Intent Action by: PO
Where the approval of the Tender Procurement Board is

conditional, then a Letter of Intent must be issued pending
negotiation with the approved tenderer.
The Letter of Intent shall be in the approved format.
Complete and check that the information on the Letter of

Intent is correct.
The Letter of Intent ought to be signed by an authorized

officer.

Action By
/ Reference
8 Negotiations Action by: PH / PO
The Project Head shall conduct the negotiations with the

approved tenderer, with the assistance of the Procurement
Officer.
Inform the Tender Procurement Board or Treasury (as the case

may be) of the results of the negotiations, and for final
approval, if required.
9 Letter of Acceptance Action by: PO
Check that approval of the Tender Procurement Board is given.
Confirm that the funds / budget is available.
Prepare the Letter of Acceptance, using the current

form/format.
Complete and check that the information on the Letter of

Acceptance, and Notification of Acceptance of Tender, are
correct, i.e.
 The name and address are correct

 Project title
 The accepted Contract Sum See also chapter 5
 Amount for Performance Bond Appendix–
 Amount for Advance Payment Distribution List
 Amount of coverage for insurances
 Period of insurance coverage
 Date of Possession of Site
 Completion Period and Date for Completion
 Defects Liability Period
 Name of SO/PD
 Name of officer-in-charge / contact person
The Letter of Acceptance must be signed by an authorized

officer (see Chapter 5 - Authority).
Send the Notification of Acceptance of Tender, and Letter of

Acceptance by registered post to Contractor, and copies to the
relevant parties.

 Format Laporan Pernilaian Tender Kerja
 Contoh Kertas Talimat Tender Kerja
 Contoh Kertas Keputusan Tender Kerja
 Contoh Surat Niat / Letter of Intent
 Letter of Notification of Tender (Pemberitahuan Penerimaan Tender)
 Letter of Acceptance – JKR 203D
 Contoh Surat Pengesahan Budget
 Garispanduan - Tugas Jawatan Kuasa Pernilaian
 Garispanduan Pernilaian Tender Kerja
8.4 REFERENCES
Treasury Circular
[1] Bil 5 Tahun 2007: Tatacara Penguruasan Perolehan Kerajaan Secara Tender
[2] S/K.KEW/PK/PP/1100/00000010/31 Jld.23 SK.7(20), dated 21 March 2008: Garis Panduan

Penilaian Tender
DID Circulars
[1] SP JPS.UB 3/1994: Peraturan Penilaian Tender Kerja
[2] SP JPS.UB 2/1995: Penyediaan Laporan Penilaian Tender


DID MANUAL
VOLUME 10
PART III : POST-CONTRACT
CHAPTER 9
CONTRACT DOCUMENTATION
Chapter 9 – CONTRACT DOCUMENTATION
Table of Contents

9.1 INTRODUCTION ............................................................................................................. 9-2
9.2 PROCEDURES................................................................................................................. 9-2
9.4 REFERENCES.................................................................................................................. 9-8
APPENDIX 9A Checklist for Preparation of Contract Documents (Senarai Semakan Penyediaan

Dokumen Kontrak)………………………………..………………………………………………….. 9A-1

List of Flowcharts
Flowchart 9.1 Contract Documentation 9-1

1 1. Letter of Acceptance is -
issued
2 2. Compile the Contract CAO

Documents.
3 3. Check that each document CAO Refer:

is complete, correct and Contract
compliant. Document-
ation
Checklist
4 4. Quality Audit CAO/BUBK*
5 5. Correctly mark the ‘Original’ CAO

and ‘Duplicate’ documents
6. Signing of Contract CAO

6 Document
7 7. Stamping of documents CAO
8 8. Distribute the Contract CAO

Documents
*Where the Contract is signed at the DID Headquarters or Ministry, the documents shall be audited
by BUBK
Flowchart 9.1 – Contract Documentation

9 CONTRACT DOCUMENTATION
9.1 INTRODUCTION
 The guidelines on the compilation and preparation of the Contract Documents for signing and
distribution to the relevant parties.
9.2 PROCEDURES
Please refer to Flowchart 9.1 – Contract Documentation.
Action By
/ Reference
1 Letter of Acceptance is issued
Upon issuance of the Letter of Acceptance, the contractor must For information
submit the required documents and information stated in the
Letter of Acceptance for verification by CAO.
Letter of Delegation of Power

Action by : SO
Upon the issuance of the Letter of Acceptance, issue the
necessary letters of delegation of power.
Ensure that the following documents, as may be required by Action by : CAO

the Letter of Acceptance of Tender, are submitted by the
Contractor:
 Performance Bond (where ‘Performance Guarantee

Sum’ is not used)
 Insurance policies together with original receipts
 Details of SOCSO
 Advance payment bond (if Advance Payment is applied
by the Contractor and permitted under the Contract).

Action By
/ Reference
Check that the information on the Performance Bond (where
‘Performance Guarantee Sum’ is not used) is in order:
Action by : CAO
 Parties
 Contract number and references
 Validity period (dates)
 All other information are correctly inserted
 Issued by a bank or insurance company approved by
Bank Negara
 Verification from the bank is attached.*
*Write to issuing bank and request for verification.
Check that the information on the relevant insurance policies

are in order :
 Parties
 Validity period (dates)
 Contract references and amounts insured
 Excess clauses, if any
 Relevant endorsements
2 Compile the Contract Documents Action by : CAO
The Contract Documents are compiled and bound as soon as is Refer: Contract
practicable after the issuance of the Letter of Acceptance, but Documentation
no later than 4 months after the issuance of the Letter of Checklist
Acceptance.
Refer to the Contract Documentation Checklist (Senarai

Semakan Penyediaan Dokumen Kontrak)
Using the accepted Tenderer’s tender document, compile the

documents for contract binding in the format and order set out
in the Tender Table Document (refer Chapter 6).
Design and Build Contract Documents
For design and build contracts, Step 2 and Step 8 shall be

carried out by the Contractor.
 The design and build contract documents shall be compiled

by the Contractor.
 The certified true copy of the Performance Bond and

Insurance Policies shall be inserted into the Contract
Documents.

Action By
/ Reference
2a Contract Front Cover Action by : CAO
Ensure that the
 cover is in accordance with DID’s approved format;
 title (of project, etc), Contract Number and names are

in accordance with the Letter of Acceptance.
2b Contents Action by : CAO
Generally,
 the contents and order of the Contract Documents is

based on the Tender Table Document, and
 the Contract Documents contains the accepted

Tenderer’s tender documents.
Ensure that:
 Variation of Price schedules are completed, and the

quantities inserted.
 Check for irregularities. Make correction if necessary
and as agreed by contractor.
 All information are correctly entered in the Appendix to
the Conditions of Contract.
Ensure that all other pertinent information is correctly entered

or inserted in the contract forms and other documents.
Ensure that all superseded information are marked as such.

2c Numerical checks, Corrections and Rationalisation of Rates Action by : CAO
 Check for arithmetical errors. Arithmetical errors in the Bills

of Quantities or the Summary of Tender must be corrected.
 Check the rates and prices for reasonableness and

consistencies. Check the distribution of prices to prevent
“front loading”. Carry out “rationalisation” of the rates and
prices as necessary.
 Where rationalization of rates had been carried out, these

changes must be agreed by the Contractor.

Action By
/ Reference
 Both the Authorised Party and the Contractor must initial
next to all corrections, or changes due to rationalisation, of Action by : CAO
rates and prices.
 The letters to and from the Contractor, amending or

confirming the original tender or affecting the Contract in
any way, shall be included in the Contract Document
(arranged in date order with the latest letter first, and
inserted these after Letter of Acceptance)
2d Contract Documentation Checklist Action by : CAO
The Checklist must be ticked (checked) and initialed by the

compiler, and together with the compiled documents shall be
forwarded to the checker for checking and verification.
3 Check the compiled Contract Document Action by : CAO
Refer to the Contract Documentation Checklist Refer: Contract

Documentation
Check every document and ensure they are complete, correct Checklist
and compliant.
The checker initial against each checked item.

4 Quality Audit Action by : CAO /
BUBK
The Quality Auditor shall check that the documents are in
order and free from errors.
Where the Contract is signed at the DID Headquarters, the

documents shall be audited by BUBK.
5 Correctly mark the ‘Original’ and ‘Duplicate’ documents. Action by : CAO
Identify the original Contract Document and correctly print or

chop/stamp the words “Original” or “Duplicate” on the cover of
the Contract Documents.
Copy documents must be certified as true copy by the

Authorised Party (Kumpulan Pengurusan Profesional).

Action By
/ Reference
6 Signing of Contract Document Action by : CAO
The Contract shall be signed by the officer duly authorised to

sign the contract (‘Authorised Party’) , based on the value of
the contract (refer Chapter 5 - Authority).
Arrange for the Original Contract Document to be signed by

the Authorised Party and the Contractor
The Contractor’s representative for signing of contract must

furnish a certified copy of the company resolution (or other
documentary evidence) to prove that he is authorized to sign
the Contract Document on behalf of the Contractor.
The following documents must be signed by both Parties:
 Articles of Agreement
 Form of Tender
 Letter of Acceptance
 List Contract Drawings
Where corrections were made due to arithmetical errors, or

rationalisation of rates had been carried out, the changes must
be initialed by both the Authorised Party and the Contractor.
The following documents must also be signed by Contractor:
 Schedules of Rates
Stamp all drawings as “Contract Drawings”.
Drawings
Drawings prepared in-house shall be signed by relevant officer.

If drawings by Consultant, to be signed by Registered
Engineer, Registered Architect and accepted by Director of
Division/State [To be confirmed by BUBK]
Design and Build Contract - Drawings
All contract drawings must be signed and endorsed by a

Registered Engineer, Registered Architect etc, who prepared
the design.

Action By
/ Reference
7 Stamping of Contract Documents Action by :
CAO
Arrange for the stamping of the Contract Documents (original
and duplicate only).
The stamp must be affixed to the first page of the Articles of

Agreement.
The costs for stamping shall be borne by the Contractor.
Exemption of Stamp Duty – Forms JKR 203/203A
In the alternative to stamping of Contract Documents, the CAO Refer JPS letter ref:
may apply for exemption of stamp duty under Section 35 of (60)dlm.PPS.10/4/2
the Stamp Act 1949 (Act 378). BUB Jld. 4 bth.
2.10.2007
The exemption endorsement must be affixed to the first page
of the Articles of Agreement (original and duplicate only).
Design and Build Contracts
The Contractor shall be responsible for both the costs of and

arranging for the stamping of the Design and Build Contract
Document.
8 Distribute Contract Documents Action by : CAO
Issue and distribute the Contract Document to the relevant Refer: Chapter 5,
parties. Distribute the copies in accordance with the Appendix 5A –
Distribution List set out in Appendix 5A. Distribution List
The original Contract Document for project of value more than

RM3 million shall be kept at BUBK. For other projects, the
original Contract Document is retained and kept by the Division
/ State which implements the project.
The Performance Bond shall be retained and keep safe at the

division/state office which issued the Letter of Acceptance.
Unless there is any unresolved dispute between the

Government and the Contractor, the Contract Document must For information
be retained for 7 years after the issuance of the Final
Certificate.
If the is any unresolved dispute between the Government and

the Contractor, then the Contract Documents (and all
documents in connection with the project) must be retained
until the dispute is resolved, or otherwise as instructed by the
Attorney General Office.

 Sample Contract Document Cover
 Sample Contents Page
 Surat Perwakilan Kuasa (Kepada wakil P.P. Kerja Utama Untuk Penyeliaan dan Arahan
Keseluruhan Kerja)
 Pemberitahu Perwakilan Kuasa (bagi Wakil P.P. Kerja Utama)
 Surat Perwakilan Kuasa (Kepada Wakil P.P. Pakar untuk Penyeliaan Kerja Tertentu)
 Pemberitahu Perwakilan Kuasa (bagi Wakil P.P. Pakar)
9.4 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars on the contract documentation.
Treasury Circular
 Nil
DID Circulars
[1] SPJPS.UB 1/1995: Perlantikan Pegawai Penguasa, Perwakilan Kuasa Pegawai Penguasa dan
Pegawai-Pegawai Yang diberi Kuasa Dalam Urusan Pentadbiran Kontrak.
[2] SPJPS.UB 3/1995: Peraturan Penyediaan Dokumen Tender dan Kontrak
[3] (36)dlm. PPS.10/4/2 CUB Jld.3 (27/7/98): Pengedaran Dokumen-dokumen (Kontrak Kerja)
Biayaan Persekutuan
(Wakil P.P) Dan Pegawai-Pegawai Yang Diberi Kuasa (PYDK) Dalam Urusan Pentadbiran Kontrak.
(Tambahan kepada Surat pekeliling SPJPS.UB 1/1995)
[5] ( 60 )dlm. PPS 10/4/2 BUB Jld 4 2 Oktober 2007: Duti Setem Bagi Dokumen Kontrak

DID MANUAL
Volume 10
Chapter 9
– Contract Documentation
APPENDIX 9A
Checklist for
Preparation of
Contract Documents
(Senarai Semakan Penyediaan

Dokumen Kontrak)

APPENDIX 9A CHECKLIST FOR PREPARATION OF CONTRACT DOCUMENTS

(SENARAI SEMAKAN PENYEDIAAN DOKUMEN KONTRAK)
TAJUK
PROJEK
Tarikh Tarikh
Untuk Tarikh Siap
Nama Pegawai Diberi Diterima
Tindakan Semakan
Kepada Oleh
PMK 1
PMK 2
AK*
BIL. KETERANGAN PMK1 PMK2 AK* ULASAN
Tandakan
() selepas
1.0 PENGENALAN semakan
Secara amnya setiap Dokumen Kontrak

mestilah lengkap dan teratur serta
mengandungi semua Dokumen
sebagaimana yang terkandung di dalam
Dokumen Meja Tender. Secara khusus
Dokumen Kontrak mestilah
mengandungi Dokumen Tender
Pentender yang disetujuterima oleh
Lembaga Perolehan.
Dokumen Kontrak hendaklah disediakan

dengan kadar segera selepas Surat
Setujuterima Tender yang Asal
ditandatangani oleh Kontraktor dan
saksi beliau. Insuran-insuran beserta
resit-resit resmi pembayaran Premium
insuran-insuran tersebut. No.Kod
PERKESO, Gerenti
Bank/Insuran/Syarikat Kewangan untuk
Bon perlaksanaan, Gerenti
Bank/Insuran/Syarikat Kewangan untuk
Bayaran Pendahuluan (Jika Kontraktor
memohon untuk mendapatkan Wang
Pendahuluan) yang Asal dikembalikan.

2.0 MUKA HADAPAN (KULIT)
2.1 Warna hendaklah warna kuning cair
2.2 Isikan maklumat-maklumat berikut

pada muka hadapan Dokumen Kontrak
ASAL atau SALINAN, Cop Perkataan

ASAL pada muka hadapan Dokumen
yang asal dan Cop perkataan SALINAN
pada tiap-tiap muka hadapan salinan-
salinan Dokumen Kontrak. Salinan
mestilah diakui sah dan ditandatangani
oleh pegawai dari Kumpulan
Pengurusan dan Profesional.
(a) Logo Kerajaan Malaysia.
(b) Nama Kerajaan Malaysia.
(c) Nama Jabatan Pengairan dan Saliran

Malaysia.
(d) Perkataan Dokumen Kontrak.
(e) Tajuk projek mestilah sama seperti

dengan tajuk kerja yang terkandung di
dalam Surat Setujuterima Tender.
(f) Nombor Kontrak.
(g) Jilid dan Seksyen Dokumen Kontrak.
(h) Logo JPS
- Di sebelah bawah ‘Logo JPS’

catitkan Bulan dan Tahun Dokumen
Kontrak disediakan.
- Di sebelah kanan bertentangan

dengan ‘Logo JPS’ catitkan :-
KETUA PENGARAH
JABATAN PENGAIRAN DAN
SALIRAN MALAYSIA
JALAN SULTAN SALAHUDDIN,
50626 KUALA LUMPUR

3.0 ISI KANDUNGAN DOKUMEN KONTRAK
3.1 ARAHAN KEPADA PENTENDER.
Sebagaimana terkandung di dalam

Dokumen Meja Tender.
3.2 BORANG TENDER :
3.2.1 Pastikan Borang Tender Asal

digunakan.
3.2.2 Maklumat-maklumat yang perlu

disemak dan yang perlu diisi.
Muka Surat 1
(a) Isikan Nombor Kontrak.
(b) Isikan tarikh Kontrak ditandatangani

oleh Pegawai yang diberi kuasa
menandatangani kontrak.
(c) Pastikan Cop Syarikat, Tandatangan

Kontraktor dan Saksi, beserta nama dan
alamat dicop dan diisi oleh Kontraktor
pada ruang yang disediakan.
(d) Pastikan Cop Pegawai yang diberi kuasa

menandatangani Kontrak dan saksi
beserta nama dan alamat dicop dan
diisi pada ruang yang disediakan.


(Samb.)
3.3 SURAT SETUJUTERIMA TENDER –

Borang JKR 203D
3.3.1 Pastikan Borang Surat Setujuterima

Asal digunakan.
3.3.2 Maklumat-maklumat yang perlu diisi.
Muka Surat 1.
(a) Isikan Nombor Kontrak.
(b) Isikan tarikh Kontrak ditandatangani

oleh Pegawai
yang diberikuasa menandatangani
kontrak.
(c) Pastikan Cop Syarikat, Tandatangan

pada ruang yang disediakan.
(d) Pastikan Cop Pegawai yang diberi kuasa

3.4 SYARAT-SYARAT KONTRAK :
Maklumat-maklumat yang perlu diisi


(Samb.)
3.4 SYARAT-SYARAT KONTRAK : (Samb.)
Muka Surat 1
(a) Nombor Kontrak, Kepala dan Pecahan

Kepala peruntukan.
(b) Nama Kerajaan Malaysia.
(c) Nama Kontraktor dan alamat, sama

seperti yang terkandung di dalam Surat
Setujuterima Tender.
(d) Nama projek, sama seperti yang

terkandung di dalam Surat Setujuterima
Tender.
(e) Senarai Lukisan, sama seperti yang

terkandung di dalam Dokumen Meja
Tender.
Muka Surat 2.
(a) Para 2(d)
Tambahkan perkataan Addenda No. 1

selepas Syarat-syarat Kontrak sama
seperti yang terkandung di dalam


(Samb.)
Muka Surat 2. (Samb.)
(b) Para 2(e)
Peruntukan Khas Syarat-syarat Kontrak
(i) Perubahan Harga Bahan-Bahan

Binaan.
(ii) Bayaran Pendahuluan
(iii) Restriction and Procedure on use
of Imported Goods.
(iv) Bon Perlaksanaan dalam bentuk
Wang Jaminan Perlaksanaan.
(c) Para 4
Harga Kontrak diisi dalam perkataan

dan nilai mestilah sama seperti yang
terkandung di dalam Surat Setujuterima
Tender.
Muka Surat 3.
(a) Pastikan Cop Syarikat, Tandatangan

pada ruang yang disediakan dan
pastikan pegawai yang tandatangan
bagi pihak kontraktor hendaklah yang
diberi kuasa menandatangani Kontrak.
(b) Pastikan Cop Pegawai yang diberi kuasa



(Samb.)
Muka Surat 4.
(a) Fasal 1(a)( i )
Sama seperti di para 2(d), 2(e) dan

2(h) di Muka Surat 2 Syarat-syarat
Kontrak.
(b) Fasal 1(a)(iv)
Nama Jawatan Pegawai Penguasa yang

diberi kuasa mengikut had kewangan
yang ditetapkan di bawah SP JPS Bil.
1/2003 – Perlantikan Pegawai Penguasa
(P.P.), Perwakilan Kuasa Pegawai
Penguasa (Wakil P.P.) Dan Pegawai-
Pegawai Yang Diberi Kuasa (PYDK)
Dalam Urusan Pentadbiran Kontrak.
LAMPIRAN KEPADA SYARAT-SYARAT

KONTRAK.
Muka Surat 30.
(a) Fasal 3(a)(i)
Nama Pegawai yang diberi kuasa untuk

bertindak bagi pihak kerajaan mengenai
Fasal 40, Fasal 43, Fasal 51, fasal 52
dan Fasal 54 sama seperti yang telah
ditentukan mengikut had kewangan
yang ditetapkan di bawah SP JPS
1/2003.
(b) Fasal 3(a)(ii)
Nama pegawai yang berkuasa untuk

meluluskan perubahan mengikut had-
had seperti yang telah ditentukan di
dalam Dokumen Meja Tender. Untuk
mendapatkan maklumat yang lebih
jelas lagi sila Rujuk kepada S.P
Perbendaharaan Bil. 7/2007, ‘Peraturan
Arahan Perubahan Kerja
(Variation Order)


(Samb.)
Muka Surat 31.
Fasal 11(d)
Isikan tarikh tender ditutup.
(b) Fasal 33
(i) Jumlah minimum Liabiliti Awam ia
bergantung kepada jumlah harga
Kontrak dan diisi dalam bentuk
nilai seperti yang telah ditentukan
di dalam Dokumen Meja Tender.
(ii) No. Polisi dan nama Syarikat

Insuran.
(iii) Tempoh Insuran termasuk tempoh

kontrak dicampur tempoh
tanggungan kecacatan dicampur 3
Bulan 14 Hari.
(c) Fasal 33(a)
Amaun Fasal lebihan hendaklah diisi

jika ada.
(d) Fasal 35
Isikan No. Pendaftaran Skim PERKESO.
(e) Fasal 36
(i) Jumlah harga kontrak, isikan

dengan perkataan ‘tiada’ jika
Projek baru.
(ii) No. Polisi dan Nama Syarikat

Insuran.
(iii) Tempoh Insuran, isikan tempoh

kontrak sahaja.


(Samb.)
3.4 SYARAT-SYARAT KONTRAK (Samb.)

(Samb.)

KONTRAK (Samb.)
(f) Fasal 36(b)
Amaun Fasal lebihan hendaklah diisi

jika ada.
(g) Fasal 37
(i) Jumlah amaun untuk Bon

Perlaksanaan iaitu 5% dari harga
kontrak seperti yang telah
ditentukan di dalam Dokumen Meja
tender dan diisi dalam bentuk nilai.
(ii) No. Gerenti

Bank/Insuran/Syarikat
Kewangan, jika Kontraktor
memilih Bon Perlaksanaan
dalam bentuk gerenti
Bank/Insuran/Syarikat
Kewangan.
(h) Fasal 38(b)
Isikan tarikh milik tapak.
(i) Fasal 39
Isikan tarikh siap bagi kesemua kerja.


(Samb.)

(Samb.)

KONTRAK (Samb.)
(j) Fasal 40
Isikan Ganti rugi tertentu dan ganti rugi

ditetapkan berasaskan Dokumen Meja
Tender, dalam bentuk nilai RM,
memundarkan kepada puluh yang
terdekat.
Muka Surat Terakhir
(a) Fasal 41
Isikan maklumat-maklumat berikut di

dalam jadual jika terdapat penyiapan
bangunan yang hendak diserahkan
kepada pemilik mengikut bahagian-
bahagian seperti yang telah ditentukan
(i) Nama seksyen atau bahagian.
(ii) Tarikh Milik (Fasal 38(c))
(iii) Tarikh Siap
(iv) Ganti rugi tertentu dan ganti rugi

ditetapkan.
(b) Fasal 45
Isikan tempoh tangungan kecacatan

sama seperti terkandung di dalam


(Samb.)
(Samb.)
KONTRAK (Samb.)
Muka Surat Terakhir (Samb.)
(c) Fasal 47(a)
(i) Nilai kerja yang perlu

dilaksanakan termasuk bahan-
bahan dan barang-barang yang
perlu diserah- hantar sebelum
perakuan Interim Pertama
dikeluarkan iaitu tidak kurang
dari 5% Harga Kontrak Asal atau
RM100,000, yang mana lebih
kurang (Rujuk dokumen tender).
(d) Fasal 47(a)
(ii) Nilai kerja yang perlu

dilaksanakan termasuk bahan-
bahan dan barang-barang yang
perlu diserah-hantar sebelum
tiap-tiap Perakuan Interim
kemudiannya dikeluarkan iaitu
tidak kurang dari RM1,000.00.
(follow checklist payment)
(c) Fasal 47(d)
Tempoh menunaikan perakuan bayaran

interim isikan 30 Hari (Rujuk dokumen
tender).


(Samb.)
3.5 ADDENDA KEPADA SYARAT-SYARAT
KONTRAK
(i) Masukkan Addenda No. 1
Pada Borang Pengesahan Addenda.

Maklumat-maklumat yang perlu diisi:-
(a) Nombor-nombor dan jumlah mukasurat

Adenda-addenda tersebut.
(b) Pastikan Cop Syarikat, Tandatangan

pada ruang yang disediakan pada muka
hadapan Addenda tersebut.
(c) Pastikan Cop Pegawai yang diberi kuasa

diisi pada ruang yang disediakan pada
muka hadapan Addenda tersebut.
3.6 PERUNTKAN KHAS KEPADA SYARAT-

SYARAT KONTRAK
(i) Syarat-syarat Kontrak – Perubahan

Harga ke atas Bahan-bahan
Binaan.
(ii) Sertakan Senarai Bangunan,

Kategori yang berkaitan, Faktor
Pulangan dan Index Asas untuk
tujuan Pelarasan Perubahan Harga
menurut Peruntukan Khas Syarat-
syarat Kontrak.


(Samb.)
3.6 PERUNTKAN KHAS KEPADA SYARAT-
SYARAT KONTRAK (Samb.)
Isikan Index Asas mengikut Jenis dan

Kategori- Kategori Bangunan untuk
kawasan yang telah ditetapkan.
Index Asas diambil berdasarkan Bulan

Tender ditutup, Index Kos Bangunan
diperolehi dari Jabatan Perangkaan
Malaysia yang dikeluarkan dari bulan ke
bulan.
(iii) Syarat-syarat Kontrak – Bayaran

Wang Pendahuluan.
(iv) ‘Restriction procedure on use of

imported goods and List of
government multimodal transport
operator’
(v) Bon Perlaksanaan dalam bentuk

Wang Jaminan Perlaksanaan.
3.7 SPESIFIKASI PIAWAI
(a) Masukkan Spesifikasi Piawai Kerja-

kerja Bangunan sama seperti yang
terkandung di dalam Dokumen Meja
Tender.
(b) Masukkan Spesifikasi Piawai Kerja-kerja

Mekanikal dan Elektrikal sekiranya
projek dipanggil secara Pakej sama
(c) Masukan Spesifikasi bagi Kawalan

Kualiti Alam Persekitaran dan Kawalan
Hakisan dan Mendapan.
3.8 SPESIFIKASI ADDENDA
(a) Masukkan Spesifikasi Addenda sama



(Samb.)
3.8 SPESIFIKASI ADDENDA (Samb.)
Pada Borang Pengesahan Spesifikasi

Addenda
(i) Nama projek, sama seperti yang

terkandung di dalam Surat
(ii) Nombor Kontrak.
(iii) Tarikh Kontrak iaitu Tarikh semasa

Kontrak ditandatangani oleh
Pegawai yang diberikuasa
menandatangani Kontrak.
(iv) Jumlah Mukasurat Spesifikasi

Addenda.
(v) Pastikan Cop Syarikat,

Tandatangan Kontraktor dan Saksi,
beserta nama dan alamat dicop
dan diisi oleh Kontraktor pada
ruang yang disediakan.
(iv) Pastikan Cop Pegawai yang diberi

kuasa menandatangani Kontrak
dan saksi beserta nama dan alamat
dicop dan diisi pada ruang yang
disediakan.


(Samb.)
3.9 PENGUKURAN DAN FAKTOR
MENGHARGAKAN SENARAI KUANTITI
(PREAMBLE) – Bagi Kontrak Berasaskan
Senarai Kuantiti
(a) Masukkan Pengukuran dan Faktor

Menghargakan Senarai Kuantiti sama
seperti yang terkandung di
dalam Dokumen Meja Tender.
3.10 SENARAI KUANTITI – Kontrak

Berasaskan Senarai Kuantiti
(a) Ringkasan Tender.
(i) Setiap nilai Kerja-kerja yang diisi

harga di dalam ringkasan Tender
oleh Kontraktor perlu diselaraskan
dan mestilah sama nilainya dengan
nilai terkumpul Kerja-kerja Awalan,
nilai-nilai terkumpul Kerja-kerja
yang Berkenaan, Kerja-Kerja
Cerucuk (jika ada), Wang Kos
Prima dan Wang Peruntukan
Sementara yang telahpun disemak,
diselaras dan diseragam kadar-
kadar harganya terlebih dahulu.
(ii) Jika perbezaan kesilapan

keseluruhan perkiraan itu Besar
Jumlahnya, Pelarasan peratusan
perlu dibuat iaitu dengan
menjumlahkan nilai terkumpul
kerja- kerja di ringkasan Tender,
sekiranya jumlah yang disemak
melebihi dari Harga Tender,
Pelarasan peratusannya adalah
Kurangan, sekiranya jumlah yang
disemak kurang dari Harga Tender,
Pelarasan Peratusannya adalah
Tambahan, di mana pelarasan
dibuat dengan tidak menjejaskan
Harga Tender.


(Samb.)
3.10 SENARAI KUANTITI (Samb.)
(a) Ringkasan Tender (Samb.)
(iii) Jika perbezaan kesilapan

keseluruhan perkiraan itu kecil
jumlahnya memadailah nilai Kerja-
kerja tersebut diselaraskan dengan
diagih-agihkan di mana perlu pada
item-item Kerja Awalan atau
diselaraskan dengan diagih-
agihkan atau diseragamkan ke
item-item Kerja-kerja Berkenaan
lain dengan tidak menjejaskan
Harga Tender.
(iv) Jumlah terkumpul nilai kerja

keseluruhan yang diisi oleh
Pentender untuk dibawa ke Borang
Tender mestilah sama jumlah
harga Tender yang dipersetujui
oleh Lembaga Perolehan.
(v) Setiap kesilapan pengiraan

mestilah diperbetulkan terlebih
dahulu dan hendaklah dipersetujui
oleh Kontraktor. Kontraktor
mestilah menurunkan tandatangan
ringkas pada tempat-tempat
pengiraan yang telah diperbetulkan
bersama-sama dengan pegawai
yang diberi kuasa bagi pihak
kerajaan.
(b) Kerja Awalan.

(i) Setiap item-item Kerja Awalan
yang diisi harga oleh Kontraktor
pastikan ia adalah perlu. Semak
harga-harga tersebut untuk
memastikan kemunasabahan
harganya. Sekiranya terdapat
kadar-kadar harga yang tidak
munasabah ia hendaklah
diselaraskan dengan
mengagihkannya pada Item-item
lain pada kerja-kerja Awalan atau
diselaraskan dengan
engagihkannya ke bahagian
kerja-kerja lain.


(Samb.)
(b) Kerja Awalan (Samb.)
(ii) Setelah Item-item kerja-Kerja

Awalan diselaraskan atau
diperbetulkan hendaklah
dipersetujui oleh Kontraktor.
Kontraktor mestilah menurunkan
tandatangan ringkas pada tempat-
tempat pengiraan yang telah
diperbetulkan bersama-sama
dengan pegawai yang diberi kuasa
bagi pihak kerajaan.
(iii) Jumlah terkumpul nilai keseluruhan

Kerja-Kerja Awalan yang telah
diselaraskan hendaklah dibawa ke
Ringkasan Tender.
Lampiran Kepada Kerja-kerja Awalan
Kadar kerja harian dan Jumlah Kadar

Harga Harian untuk Loji dan Buruh.
Pastikan Kadar Harga Upah Loji
sehari dan Kadar Harga Upah Buruh
sehari diisidengan Kadar Harga yang
munasabah oleh Kontraktor. Jika
terdapat Kadar-kadar harga yang
didapati tidak munasabah ia mestilah
diselaraskan terlebih dahulu dan
tandatangan ringkas pada kadar-
kadar Harga yang diselaraskan.
Kadar Harga tersebut kemudiannya
mestilah ditandatangani oleh
Pegawai Penguasa atau Wakil atau
PMK sebagai tanda kadar-
kadarHarga diterima.


(Samb.)
(c) Kerja-kerja yang Berkenaan, dan Kerja-
kerja Cerucuk (jika ada)
(i) Kadar-kadar Harga setiap unit

Item-item Kerja-kerja Berkenaan
dan Kerja-kerja Cerucuk (jika ada)
dan jumlah yang diisi harga oleh
Kontraktor perlu disemak untuk
memastikan kemunasabahan
harganya. Ia disemak berpandukan
harga pasaran semasa. Sekiranya
terdapat kadar-kadar harga yang
tidak munasabah, tidak seragam,
kesilapan pengiraan, kadar-kadar
harga tersebut perlu diselaraskan
dan diseragamkan pada itemitem
kerja lain yang sama cara kerjanya
termasuk memperbetulkan jumlah
pengiraannya.
(ii) Setelah Item-item Kerja-Kerja

tersebut diselaraskan atau

Kerja-Kerja tersebut yang telah
Ringkasan Tender.


(Samb.)
(d) Wang Kos Prima dan Wang Peruntukan

Sementera.
(i) Setiap Item-item Wang Kos Prima

dan Wang Peruntukan Sementara
yang diisi harga oleh Kontraktor
perlu disemak. Sekiranya terdapat
kesilapan ia perlu diselaraskan dan
diperbetulkan.
(ii) Setelah Item-item Kerja-Kerja

tersebut diselaraskan atau

Kerja- Kerja tersebut yang telah
Ringkasan Tender.
3.11 SENARAI LUKISAN YANG DIGUNAKAN

UNTUK PENYEDIAAN SENARAI
KUANTITI
(a) Masukkan Senarai Lukisan yang

digunakan untuk penyediaan Senarai
Kuantiti sama seperti yang terkandung
(b) Pada Lukisan-Lukisan Kontrak.
(i) Semak catitan pada Senarai-

senarai Lukisan dan lukisan-lukisan
yang akan dijilidkan dalam
Dokumen Kontrak adalah sama
kandungannya seperti di dalam


(Samb.)
3.11 SENARAI LUKISAN YANG DIGUNAKAN
UNTUK PENYEDIAAN SENARAI
KUANTITI (Samb.)
(ii) Pastikan Semua pindaan atau

perubahan pada Lukisan-lukisan
Kontrak mestilah diselaraskan juga
pada Dokumen Meja Tender.
(c) Pada Borang Pengesahan Lukisan

(i) Nama projek, sama seperti yang
terkandung di dalam Surat
(ii) Nombor Kontrak.
(iii) Tarikh Kontrak iaitu Tarikh semasa

Kontrak ditandatangani oleh
Pegawai Yang Diberi Kuasa
Menandatangani Kontrak.
(iv) Jumlah Mukasurat Lukisan-lukisan.
(v) Pastikan Cop Syarikat,

Tandatangan Kontraktor dan Saksi,
beserta nama dan alamat dicop
dan diisi oleh Kontraktor pada
ruang yang disediakan.
(vi) Pastikan Cop Pegawai yang diberi

kuasa menandatangani Kontrak
dan saksi beserta nama dan alamat
dicop dan diisi pada ruang yang
disediakan.
3.12 TARIKH KONTRAK
Pastikan tarikh Kontrak (iaitu Tarikh

semasa Kontrak ditandatangani) telah
diisi.
 Borang tender
 Perkara-perkara Perjanjian
(Articles of agreement)
 Surat Setujuterima Tender
 Senarai lukisan kontrak

4.0 PENGEDARAN DOKUMEN-DOKUMEN

KONTRAK
(i) KSU, Kementerian Sumber Asli

dan Alam Sekitar
- Satu salinan tanpa Lukisan
(ii) Ketua Audit Negara

- Satu salinan tanpa Lukisan.
(iii) Bank atau Syarikat yang

mengeluarkan Bon Perlaksanaan.
(iv) Kontraktor
- Satu salinan dengan Lukisan
- Berdaftar (AR)
(v) Pengarah Bahagian, Ibu Pejabat

JPS.
(vi) Pegarah Bahagian Kontrak dan

Ukur Bahan, Ibu Pejabat JPS
- Kontrak Asal dengan Lukisan.
(vii) Pengarah Bahagian Khidmat

Pengurusan – Jika bayaran dibuat
di Ibu Pejabat Sahaja.
(viii) Akauntan Kanan Perbendaharaan

(Negeri) – Jika bayaran dibuat di
Negeri Sahaja.
(ix) Pengarah Negeri / Jurutera Projek

- Satu salinan dengan Lukisan.
(x) Juruperunding

5.0 PENYIMPANAN DOKUMEN KONTRAK

ASAL DAN BON PERLAKSANAAN
(i) Dokumen Kontrak Asal hendaklah

disimpan dengan selamat di
Pejabat di mana Dokumen Kontrak
disediakan dan disimpan di tempat
yang mudah untuk
mendapatkannya apabila ianya
dikehendaki.
(ii) Bon Perlaksanaan hendaklah

disimpan dengan selamat dalam
Peti Keselamatan atau kabinet kalis
api dan ianya mudah didapatkan
apabila dikehendaki.
Tandatangan Pegawai Semakan Tandatangan Pegawai Pengesahan Tandatangan Kualiti Audit

Tarikh Selesai Tugasan: Tarikh Selesai Tugasan: Tarikh Selesai Tugasan:
*Audit Kualiti; Jika Berkenaan

DID MANUAL
VOLUME 10
CHAPTER 10
PAYMENTS
Chapter 10 – PAYMENTS
Table of Contents
Table of Contents .....................................................................................................................10-i

List of Flowcharts .................................................................................................................... 10-ii
10.1 INTRODUCTION.........................................................................................................10-3
10.2 PROCEDURES ............................................................................................................10-3
10.2.1 Advance Payment ..........................................................................................10-3
10.2.2 Interim Payment ............................................................................................10-6
10.3 PAYMENT TERMS .....................................................................................................10-10
10.4 METHOD OF VALUATION..........................................................................................10-10
10.5 REFERENCE DOCUMENTS .........................................................................................10-10
10.6 REFERENCES ...........................................................................................................10-11
APPENDIX 10A Checklist for Preparation of Advance Payment (Senarai Semakan Penyediaan
Bayaran Pendahuluan)…………………………..…………………………………………….….. 10A-1
APPENDIX 10B Task List for Interim Payment (Borang Tindakan Kerja Bayaran
Interim)…………………………..…………………………………………………………………….. 10A-3
APPENDIX 10C Checklist for Preparation of Interim Payment (Senarai Semakan Penyediaan
Bayaran Interim)……………….………………………………………………………………....... 10A-5

List of Flowcharts
Flowchart 10.1 Advance Payment 10-1

Flowchart 10.2 Interim Payment 10-2

1 1. Application for Advance -

Payment by Contractor
2 2. Check documents for CAO

completeness
3. Prepare Supporting CAO

3 Documents for Advance
Payment.
 Checklist for Advance See
Payment Appendix 10A
No
4 4. Documents are in proper CAO
order?
Yes
5 5. Issue Payment Certificate SO

- Form JKR 66
No
6 6. Quality Audit QS/CAO/BUBK*
Yes
7 7. Record payment details Division / State

and issue to FD.
8 8. Record payment in vote FD

book. Prepare payment
voucher, and sign / issue
payment voucher to AG
9 9. Submit to AG FD
*Quality Audit: Where payment warrant is through the DID HQ – audit by BUBK; Where payment warrant is
channeled through the State – audit by Quantity Surveyor or Contracts Officer at State.
Flowchart 10.1 – Advance Payment

1 1. 1st Valuation, or Interim -

Valuation
2
2. Site valuation PT / PM
3. Check documents for CAO

3 completeness, and
computation
4. Prepare supporting CAO

4 documents for payment
 Checklist for Interim See
Payment Appendix 10C
No
5. Document is in proper CAO
5 order?
Yes
6 6. Issue Payment Certificate SO

- Form JKR 66
7 7. Quality Audit QS/CAO/BUBK*
8 8. Record payment details Division / State

and issue documents to
FD
9 9. Record payment in vote

book. Prepare payment FD
voucher, sign and issue
payment voucher to AG
*Quality Audit: Where payment warrant is through the DID HQ – audit by BUBK; Where payment warrant is
channeled through the State – audit by Quantity Surveyor or Contracts Officer at State.
Flowchart 10.2 – Interim Payment

10 PAYMENT
10.1 INTRODUCTION
 The guidelines on the preparation and checking of the payment documents, and issuance of the
payment certificate for advance payment and interim payment.
10.2 PROCEDURES
10.2.1 Advance Payment
Please refer to Flowchart 10.1 – Advance Payment.

Action By
/ Reference
Generally
The advance payment shall not exceed 25% of the value of SPP 5/2007
builder’s work (the Contract Sum less Prime Cost and
Provisional Sums), subject to a maximum of RM 10 million.
1 Contractor Submits Application for Advance Payment For Information
(a) The Contractor must submit the application for advance

payment in accordance with the Contract, within 3 months
of the possession of site.
(b) The application must be accompanied by the following

documents:
 Letter of Acceptance duly signed and witnessed

 Performance Bond, or Letter of Confirmation on using
 Bank/insurance guarantee for advance payment.
 Insurance Policies and receipt issued by insurance
company
 Proof of registration with Socso
 Contractor’s Letter stating bank details, and signed by
authorized person.

Action By
/ Reference
2 Check documents for completeness Action By:
CAO
Upon receipt of the Contractor’s documents,
 Check that the Contractor’s application is accompanied by

the necessary documents mentioned in Step 1
 Check that each document is complete and/or in order.
 Obtain confirmation from the bank or insurance company

against the bank or insurance guarantee.
3&4 Prepare the Supporting Documents for payment Action By:

CAO
Refer to Checklist for Preparation of Advance Payment (Senarai
Semakan Penyedian Bayaran Pendahuluan) Refer
Appendix 10A
Complete and initials the Checklist for Preparation of Advance
Payment.
Complete the Form JKR66.
Make six (6) copies of the completed JKR66 Form before

signing.
The recommending officer signs the Form JKR66.
Submit Form JKR66, together with attached documents, to the

SO for signature
Attach the following additional documents to the application
 Approval of Tender Board / Treasury (if necessary)
 Form JKR66, duly filled in with the correct information
Ensure the relevant documents are certified by a DID officer.
Fill in and initials the Tasklist (Borang Tindakan) and the

Checklist for Preparation of Advance Payment,, and attach
these to the documents.
5 Issuance of Certificate of Advance Payment Action By:

SO
If the advance payment document is duly completed, and the
documents checked and endorsed by the relevant officers, the
SO shall sign payment certificate.
Forward documents to State or HQ for Quality Audit or Action By:

payment processing, depending on the value of the Contract. CAO

Action By
/ Reference
BUBK
Quality Auditor shall check the documents are in order and are
free of errors.
7 Recording of Payment Details Action By:

Relevant State /
Record payment in the relevant State / HQ section, as relevant. Division
Make duplicates of payment documents (except payment

voucher).
8&9 Recording Payment Details & Prepare payment voucher Action By:
Finance Division
Ensure that the correct amount is entered into the vote book.
Check that the documents are in order, and ensure that the
payment voucher is signed
Submit to the relevant to Accountant General for issuance of

payment:
 Form JKR66,
 payment voucher and
 supporting documents, together with duplicates.
Note: Recoupment of Advance Payment For Information
The recoupment for advance payment only is made through

interim payments, and in accordance with the recoupment
formula set out in the Special Provision to the Conditions of
Contract.

10.2.2 Interim Payment
Please refer to Flowchart 10.2 – Interim Payment.
Action By
/ Reference
1 Generally For Information
For contracts using Standard Form of Contract JKR 203 and SP JPS Bil. 2/2000
203A, interim valuations must be carried out at least once a &
month. SP JPS Bil. 4/2008
For contract using Form JKR DB/T, interim valuations must be

carried out at least once a month, unless a Payment Schedule is
included in the Contract.
Comply with the method of valuation set out in Section 10.4.

2 Interim Valuation at Site Action By: CAO
The SO shall make a first interim valuation based on the works Refer Form JKR
which have been executed by the Contractor including the 203/203A Clause
unfixed materials delivered to or adjacent to the Works. 47(a); and Form
JKR DB/T Clause
Ensure the total value of claim reaches to the sum appeared in 50.3(b)(i)
the Appendix to the Conditions of Contract (for First Interim
Certificate) whilst the subsequent claims must not less than the
amount appeared (subsequent Interim Certificates) in the same
Appendix.
Inform the Contractor the method of valuation adopted by DID,

to avoid disputes.
If the Contractor wishes to submit his interim claims (not a

requirement under the Contract), then explain and agree with
the Contractor the format of claim.
3&4 Check documents, and Prepare the Supporting Documents for Action By:
Payment CAO
Upon completion of the valuation, prepare the payment

documents. See Appendix 10B
& Appendix 10C
Refer: Task List, and Checklist for Interim Payment.

Action By
/ Reference
3&4 Check documents, and Prepare the Supporting Documents for

(Cont’d) Payment (Cont’d)
1st Valuation and Certification

For information
Generally, the SO shall issue the Certificate within fourteen (14)
days from the date of such valuation stating the due amount to
the contractor i.e. estimated total value of works executed and
ninety (90) percent of the value of the unfixed materials and
goods delivered at site. Variation of Price (if any) shall be
included in the valuation. Action By:
CAO
Refer to the Appendix to the Conditions of Contract for the
minimum value of work to be executed including materials and
goods to be delivered before 1st Interim Certificate will be
issued.
The amount due to the Contractor must be thereon and up to

the date of valuation.
The following documents must form part of 1st payment’s

documents (unless already submitted under the application for
Advance Payment):
 Letter of Acceptance duly signed and witnessed
 Performance Bond, or Letter of Confirmation using
 Insurance Policies and receipt for insurance policies issued by
the insurance company
 Proof of registration with Socso
 Contractor’s letter stating bank details, and signed by
authorized person.
 Consultant’s certification of works done (if using Consultant).
 Form JKR66
 Tasklist
The copies of relevant documents shall be certified by SO or

SOR. Refer Appendix
10B & Appendix
Fill-in and initials both the Task List (Borang Tindakan Kerja) for 10C
Interim Payment and Checklist for Preparation of Interim
Payment, and attach these to the documents.
Subsequent Interim Valuation and Certification

Generally, the SO shall issue the subsequent interim certificate
within fourteen (14) days from the date of such valuation
stating the due amount to the contractor i.e. estimated total For information
value of works executed and ninety (90) percent of the value of
the unfixed materials and goods delivered at site. Variation of
Price (if any) shall be included in the valuation.

Action By
/ Reference
3&4 Check documents, and Prepare the Supporting Documents for

(Cont’d) Payment (Cont’d)
Subsequent Interim Valuation and Certification (Cont’d) Action By:

CAO
Refer to the Appendix to the Conditions of Contract for the
minimum value of work to be executed including materials and
goods to be delivered before the Interim Certificate will be
issued.
The following documents must be form part of the payment

documents:
 Form JKR 66
 Consultant’s certification of works done (if using Consultant)
 Task List (Borang Tindakan Kerja) for Interim Payment, duly
filled in and initialed.
Fill in and initials both the Task List for Interim Payment and
Checklist for Preparation of Interim Payment, and attach these
to the documents
Advance Payment Action By:

CAO
Where Advance Payment was made, check and ensure that the
amount to be recouped is stated in the payment certificate as a
contractual deduction.
Refer to the Special Provisions to the Conditions of Contract for

the recoupment formula to be applied.
Generally, the recoupment of Advance Payments shall be made

when the value of works reaches 25% and must fully recouped
at 75% works completed.
5 Checks documents for completeness Action By:

CAO
Check that each document is complete and/or in order. Refer to
the Checklist for Preparation of Interim Payment.
Fill in and initials the Checklist for Preparation of Interim

Payment.
The recommending officer (Pegawai Pengesyor) shall sign the

Form JKR66.
Submit Form JKR66, together with attached documents, to the

Authorised Person for signature.

Action By
/ Reference
6 Issuance of Interim Certificate Action By:

SO
If the Interim Payment document is duly completed, and the
documents checked and endorsed by the relevant officers, the
SO/Officer Empowered (Pegawai yang Memperakukan) shall
sign and issue the Interim Certificate.
Forward documents to State or HQ for Quality Audit or payment

processing, depending on the value of the Contract.

BUBK
Quality Auditor shall check the documents are in order and are
free of errors.
8 Recording of Payment Details Action By:

Relevant State /
Record payment in the relevant State / HQ section, as relevant. Division
Make duplicates of payment documents (except payment

voucher).
9 Recording Payment Details & Prepare Payment Voucher Action By:

Finance Division
Ensure that the correct amount is entered into the vote book.
Check that the documents are in order, and ensure that the
payment voucher is signed
Submit to the relevant to Accountant General of issuance of

payment:
 Form JKR66,
 payment voucher and
 supporting documents

10.3 PAYMENT TERMS
The payment(s) shall be valued, certified and paid in accordance with the payment terms in the
Contract.
10.4 METHOD OF VALUATION
The followings are the items which constitute the complete payments, whichever is applies:
 General Conditions and Preliminaries
 Builder’s Works
 Prime Cost and Provisional Sums
 Variations
 Materials on Site
No valuation/payment for premature delivery of materials on site.
 Variation of Price (VOP)
The VOP may be categorized into two (2) groups; based on quantities (for Civil Works) and
based on index (for Building Works)
 Payment fees for Consultants
 Recoupment or other deductions i.e. Advance Payment, LAD, etc.
Note:
Information for VOP may be found in SPP Bil 3 Tahun 2008.
 Form JKR66

10.6 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars on payments.
Treasury Instructions
[1] AP103: Semua Bil Dan Tuntutan Bayaran Hendaklah Dibayar Dengan Segera
Treasury Circular
[1] Bil 7 Tahun 2006: Pindaan Ke Atas Arahan Perbendaharaan (AP103)
[2] Bil 3 Tahun 2008: Pelaksanaan Syarat Perubahan Harga Di Dalam Kontrak Kerja
DID Circulars
[1] SP JPS Bil. 2/2000: 2. Pindaan ke atas Borang JKR 66, Perakuan Pelarasan Jumlah Harga
Kontrak (PPJHK) dan Perakuan Muktamad
3. Pindaan Kepada Syarat-syarat Kontrak Berkaitan Bayaran
[2] SP JPS Bil 4/2008: Langkah-langkah Untuk Mempercepatkan Bayaran Interim (Pindaan kepada
Perkara 1 dalam SP JPS Bil. 2/2000)


DID MANUAL
Volume 10
Chapter 10
– Payments
APPENDIX 10A
Checklist for Preparation Of

Advance Payment
[Form JKR 66]

Bayaran Pendahuluan)

APPENDIX 10A CHECKLIST FOR PREPARATION OF ADVANCE PAYMENT

(SENARAI SEMAKAN PENYEDIAAN BAYARAN PENDAHULUAN)
TAJUK
PROJEK
Tarikh Tarikh
Untuk Tarikh Siap
Tindakan Semakan
Kepada Oleh
PMK 1
PMK 2
AK*
Tandakan
1. Pastikan penyediaan Bayaran () selepas
Pendahuluan menggunakan Borang semakan
JKR66 (Pin. 3/99).
2. Pastikan permohonan Kontraktor untuk

mendapatkan Bayaran Pendahuluan
hendaklah dalam tempoh 3 bulan dari
Tarikh Milik Tapak.
3. Dokumen-dokumen yang perlu

disertakan bersama-sama Bayaran
Pendahuluan hendaklah seperti berikut :
(a) Keputusan Lembaga Perolehan /

Surat Kelulusan Kementerian
Kewangan / Surat Kelulusan
Pegawai Kewangan Negeri, yang
mana berkenaan.
(b) Surat Setujuterima Tender yang
telah ditandatangani oleh kontraktor
dan saksi.
(c) Gerenti Bank / Syarikat Insuran /
Syarikat Kewangan/Takaful bagi
Bayaran Pendahuluan.
(d) Gerenti Bank / Syarikat Insuran /
Syarikat Kewangan / Takaful bagi
Bon Perlaksanaan, jika Kontraktor
memilih dalam bentuk Gerenti.
(e) Surat pengesahan daripada Bank /
Insuran / Syarikat Kewangan yang
mengeluarkan para ( c ) di atas.
(f) Insuran Polisi Liabiliti Awam & Kerja
(CAR).

BIL. KETERANGAN PMK 1 PMK 2 AK* ULASAN
3. Dokumen-dokumen yang perlu

(samb.) disertakan bersama-sama Bayaran
Pendahuluan hendaklah seperti berikut :
(samb.)
(g) Resit Bayaran Premium untuk Polisi

Insuran CAR.
(h) Surat daripada PERKESO yang
menyatakan khusus untuk projek
berkenaan sahaja
(i) Surat daripada kontraktor
menyatakan No. Akaun Bank :
(i) hendaklah ditandatangani oleh
orang yang diberi kuasa.
(ii) lengkap dengan Nama, alamat
dan No. Akaun Bank
4 Pastikan Gerenti bagi Bayaran

Pendahuluan teratur dari segi
(a) Format piawai,

(b) Butiran Kontrak,
(c) Nilai Gerenti,
(d) Tempoh Gerenti,
(e) Ditandatangani dan dicop oleh
Pegawai Bank / Syarikat Insuran /
Syarikat Kewangan / Takaful,
(f) Duti setem telah dibayar
5 Pastikan semua salinan-salinan dokumen

dipara 3 disahkan oleh pegawai
kumpulanpengurusan pengurusan dan
profesional.
6 Pastikan perakuan dikemukakan kepada

Pegawai Penguasa atau Wakil PP Utama
untuk ditandatangani dan tindakan
seterusnya.


DID MANUAL
Volume 10
Chapter 10
– Payments
APPENDIX 10B
Task List for Interim Payment
[Form JKR 66]
(Borang Tindakan
Kerja Bayaran Interim)

APPENDIX 10B TASK LIST FOR INTERIM PAYMENT

(BORANG TINDAKAN KERJA BAYARAN INTERIM BAGI KONTRAK
YANG WAREN PEERUNTUKANNYA DISALURKAN KE NEGERI)
Pegawai Penguasa :
Tajuk Kerja :
No. Kontrak :
Bayaran Interim No. :
Pegawai
Tanda
Bil Proses Kerja Tarikh bertanggung Catatan
tangan
jawab
1 Penilaian di tapak Penyelia Projek
2 Perakuan Bayaran Interim (JKR 66) siap Penyelia Projek
Pegawai
3 Tandatangan Pegawai Pengesyor
Pengesyor
Hantar kepada Unit Ukur Bahan &
4 Penyelia Projek
Kontrak JPS Negeri
Diterima oleh Unit Ukur Bahan & Pegawai Juru
5
Kontrak JPS Negeri Bahan/Kontrak
Pegawai Juru
6 Semakan Audit Teknik
Bahan/Kontrak
Hantar kepada Unit Berkenaan di JPS Pegawai Juru
7
Negeri Bahan/Kontrak
Diterima oleh Unit Berkenaan di JPS Unit Projek JPS
8
Negeri Negeri
Unit Projek JPS
9 Semak Peruntukan dan Rekod bayaran
Negeri
Pegawai
Tandatangan Pegawai Yang
10 Penguasa/
Memperakukan
Wakil P.P.
Jumlah Tempoh hari
Unit Projek JPS

11 Kemukakan kepada Bahagian Kewangan
Negeri
12 Diterima oleh Bahagian Kewangan
13 Rekod perbelanjaan dan sedia baucer
14 Baucer bayaran ditandatangani
15 Hantar kepada Pihak Pembayar
Jumlah Tempoh * hari
JUMLAH TEMPOH KESELURUHAN * hari
Perhatian
Carta ini hendaklah dikepilkan bersama Perakuan Bayaran Interim (JKR 66) dan disimpan di dalam fail bayaran
Unit Teknikal yang berkenaan.

APPENDIX 10B TASK LIST FOR INTERIM PAYMENT

(BORANG TINDAKAN KERJA BAYARAN INTERIM BAGI KONTRAK
YANG WAREN PEERUNTUKANNYA DI IBU PEJABAT JPS
MALAYSIA)
Pegawai Penguasa :
Tajuk Kerja :
No. Kontrak :
Bayaran Interim No. :
Pegawai
Tanda
Bil Proses Kerja Tarikh bertanggung Catatan
tangan
jawab
1 Penilaian di tapak Penyelia Projek
2 Perakuan Bayaran Interim (JKR 66) siap Penyelia Projek
Pegawai
3 Tandatangan Pegawai Pengesyor
Pengesyor
Pegawai
Tandatangan Pegawai Yang
4 Penguasa/
Memperakukan
Wakil P.P.
Hantar kepada Bahagian Ukur Bahan &
5 Penyelia Projek
Kontrak Ibu Pejabat JPS Malaysia
Diterima oleh Bahagian Ukur Bahan &
6 Jurukur Bahan
Kontrak Ibu Pejabat JPS Malaysia
7 Semakan Audit Teknik Jurukur Bahan
Hantar kepada Bahagian Berkenaan di

8 Jurukur Bahan
JPS M'sia.
Diterima oleh Bahagian Berkenaan di Unit Projek
9
JPS M'sia. Bahagian
Unit Projek
10 Rekod bayaran
Bahagian
Unit Projek
11 Kemukakan kepada Bahagian Kewangan
Bahagian
Jumlah Tempoh hari
12 Diterima oleh Bahagian Kewangan
13 Rekod perbelanjaan dan sedia baucer
14 Baucer bayaran ditandatangani
15 Hantar kepada Pihak Pembayar
Jumlah Tempoh * hari
JUMLAH TEMPOH KESELURUHAN * hari
Perhatian
Carta ini hendaklah dikepilkan bersama Perakuan Bayaran Interim (JKR 66) dan disimpan di dalam fail bayaran
Unit Teknikal yang berkenaan.

DID MANUAL
Volume 10
Chapter 10
– Payments
APPENDIX 10C
Checklist for Preparation Of

Interim Payment
[Form JKR 66]

Bayaran Interim)

APPENDIX 10C CHECKLIST FOR PREPARATION OF INTERIM PAYMENT

(SENARAI SEMAKAN PENYEDIAAN BAYARAN INTERIM)
TAJUK
PROJEK
Tarikh Tarikh
Untuk Tarikh Siap
Tindakan Semakan
Kepada Oleh
PMK 1
PMK 2
AK*
BIL. KETERANGAN PMK1 PMK 2 AK* ULASAN
Tandakan ()
1. Interim No: - sila pastikan nombor selepas
berturutan. semakan
2. Anggaran Pembangunan: Kepala

Perbelanjaan, Pecahan Kepala
hendaklah diisi sama seperti dalam
dokumen kontrak.
3. No. Kontrak - hendaklah diisi sama

seperti dalam dokumen kontrak.
4. Tarikh Penilaian: hendaklah

mengikut tarikh penilaian sebenar.
(Pastikan Perakuan diterima selewat-
lewatnya dua (2) minggu selepas
tarikh penilaian).
5. Pastikan nilai kerja mengikut

'engineer's certification' berdasarkan
CPM atau penilaian tapak (jika tiada
‘engineer’s certification’).
6. Nilai kerja dilaksanakan dan amaun-

amaun lain yang kena dibayar
hendaklah merangkumi :
(a) Nilai kerja Kontraktor Utama
termasuk APK dan PHK,
(b) 90% daripada nilai bahan binaan
di tapak,
(c) Pelarasan turun naik harga
(VOP),
(d) Nilai kerja Sub-Kontraktor
Dinamakan termasuk APK dan
PHK,
(e) Nilai kerja Pembekal Dinamakan
termasuk APK dan PHK,
(f) Bayaran kepada Juruperunding
(Bagi Kontrak Design &
Build/Turnkey).

6. NOTA :
(samb.)
(i) V.O.P. untuk kerja bangunan
"Current Index" yang digunakan
adalah untuk bulan sebelum
bayaran Interim dinilaikan.
(ii) V.O.P. untuk kerja kejuruteraan
Awam - "Current Price" adalah
untuk bulan bayaran Interim
dinilaikan.
7. KURANGAN
(a) Pastikan amaun sebenar yang

telah dibayar untuk bayaran
interim terdahulu berasaskan
baucer bayaran.
(b) Pastikan jumlah nilai terkumpul

bayaran Interim yang terdahulu
ditolak.
8. POTONGAN
a) Pastikan bayaran Wang

Pendahuluan telah dibuat
(samaada di Peringkat Negeri
atau Ibu Pejabat Kuala
Lumpur).
b) Semak pengiraan bayaran balik

Wang Pendahuluan, jika ada.
c) Semak dan pastikan jumlah

amaun potongan terdahulu
untuk Wang Jaminan
Perlaksanaan (WJP) adalah
10% daripada nilai kerja
tertakluk kepada nilai
maksimum 5% daripada harga
kontrak, jika kontraktor memilih
kaedah WJP.
d) Semak kadar LAD/hari dan

tempoh yang dikenakan dan
sebarang Pengecualian (jika
ada) berserta dengan rujukan
surat.
e) Semak potongan lain-lain jika

ada (sertakan lampiran
keterangan).

9. Semak pengiraan bayaran disyorkan.
10. Tandatangan Pegawai Pengesyor

hendaklah pegawai yang diberi
kuasa dan catitkan nama dan
jawatan.
11. Perakuan Bayaran :
(a) Pastikan amaun berasingan di

perakukan untuk berikut :
i) Kontraktor Utama
ii) Bayaran kepada
subkontraktor/ Penerima
Bayaran (pastikan Lampiran
A Borang JKR 66
dilengkapkan)
(b) Pastikan nilai bersih potongan

Wang Jaminan Perlaksanaan
dicatitkan untuk dikreditkan
dalam akaun deposit
(c) Jumlah yang perlu dibayar

hendaklah digenapkan kepada
ratus yang hampir.
(d) Pastikan perakuan dikemukakan

kepada Pegawai Penguasa atau
Wakil PP Utama untuk
ditandatangani dan tindakan
seterusnya.


DID MANUAL
VOLUME 10
CHAPTER 11
VARIATIONS
Chapter 11 – VARIATIONS
Table of Contents

11.1 INTRODUCTION.........................................................................................................11-2
11.2 PROCEDURES ............................................................................................................11-2
11.3 REFERENCE DOCUMENTS ...........................................................................................11-6
11.4 REFERENCES .............................................................................................................11-6
APPENDIX 11A Checklist for Preparation of Variation Works Order (Senarai Semakan Arahan
Perubahan Kerja)…………………………..……………………………………………..………... 11A-1

List of Flowcharts
Flowchart 11.1 Variations 11-1

1 1. SO Instruction is required SOR/PT
2a Is it a VO?
No
2a 2b Any cost implication? SOR/PT
Yes
No 3. Issue SOI using JKR203U SOR/SO
2b
Yes
4. Prepare approximate VO CAO
3 Costs
4
No
5 5. Net addition to Contract -
Sum?
Yes
6. Prepare and submit SOR/CAO
6
Application for VO
Approval (Form JKR-KPK)
No
7 END 7. Approval by VO VO Refer Chapter
Committee? Committee 5 - Authority
Yes
8. Issue Variation Order to SOR/SO

8 Contractor (form JKR-
APK), with copy to all
relevant parties
9 9. Contractor complies with SOR/PjS

instruction / variation
order
Yes
10 10. Actual VO value more than -
the approved amount?
No
11 11. Submit Form JKR-KPK to CAO

VO Committee
12 12. Finalisation of VO Value SOR Refer Chapter

12
Flowchart 11.1 – Variations

11 VARIATIONS
11.1 INTRODUCTION
 The guidelines and general procedures on the process and approval of variations works and
other changes to the Contract.
Notes:
“Variation” of Works may be defined as any alteration or modification of the design, specification
and/ or Bills of Quantities of the Works as shown upon in the Contract Drawings and described or
referred to in the Contract Bills, and includes the addition, omission or substitution of any works.
The Treasury Instruction (Arahan Perbendaharaan) 202 states that each Variation must comply with
the following criteria:
 The contract period has not ended when the Variation Order (APK) is issued;
 The Variation shall not change or alter a major part of the original scope of works;
 For additional works, the Variation works must be carried out on Site; and
 For substitution of works, the Variation works must be within the original scope of contract,
and the original scope of works (or substituted works) must be identifiable in the Variation
works.
11.2 PROCEDURES
Please refer to Flowchart 11.1 – Variations.

Action By
/ Reference
1, 2 and 3 SO Instruction and Variation Order
Action by :
The SO may issue instructions requiring a variation and he SOR/PT/SO
may sanction in writing any variation made by the Contractor.
The SO may issue instruction on any matter, which the SO is

empowered to do so under the Contract, including variation
works as described in the Contract.
SO and his representatives shall ensure and comply the

requirements of Treasury Circulars 202, which stipulates that
prior approval of the relevant authority must be obtained
before instruction requiring work to be varied may be issued.
The instruction may or may not involve cost implications; if

the instruction does not involve cost implications, use Form
JKR- 203U, or otherwise use Form JKR-APK for instruction
which incurs cost implications.

Action By
/ Reference
4&5 Prepare approximate VO Costs Action by:
PM/CAO/SO
Refer Checklist for Variation Works.
Prepare the estimated costs of the Variation Order (VO)

works. The cost estimates should be as accurate as possible
based on information available and be supported by details.
The circumstances upon the preparation of estimated

Variation Order (VO) cost:
 If the estimates show nett additional to the Contract

Sum, then the SOR or CAO shall prepare a Form JKR-
KPK for approval by VO Committee.
 If the estimates show reduction (or no addition) to

the Contract Sum, then the SO shall issue an
instruction using Form JKR-APK (Variation Order to
Contractor)
For very urgent works, indicative estimates or ‘ball park

figures’ may be used, but the estimates must be
substantiated as soon as possible.
No Variation works should be carried out prior to the approval

of Variation Order Committee.
6 Application for VO Approval Action by : PH/CAO
Check that there is sufficient budget or allocation for the

Variation Order.
The application to VO Committee shall comprise:
 Application for Approval of Variation Order (Form

JKR-KPK) – duly certified by the SO (see part D of the
form)
 VO Costs Estimates (with supporting details)
 Justification for the needs of VO
Submit all documents to the VO Secretariat.

Action By
/ Reference
7 Approval by VO Committee Action by :
SOR/CAO
Approval for Variation Order (VO) must be given by
(i) Variation Order Committee, or

(ii) the Ministry of Finance (MoF),
depending on the Contract Sum and aggregate value of

variation works.
For composition and limits of authority of the VO Committee,

please refer Chapter 5.
Note that the officer who applies for the Variation Order
cannot be the chairman or member of the Variation Order
Committee.
Where approval of MoF is required, the application for VO

approval shall be checked by BUBK at the DID headquarters,
and submitted through the Director General of DID.
8 Issue Variation Order to Contractor Action by :
SOR/CAO
Prepare the Variation Order (use the current Form JKR-APK)
and issue to the Contractor.
 All particulars in the Form JKR-APK must be correctly

inserted. All space for information / insertion must be
filled.
 The date of the Variation Order is the date on which it is

signed by the Authorised Party.
 Description of the work to be varied must be clear and

concise.
 All relevant drawings, sketches and other details are

appended.
The Contract Sum shall be adjusted accordingly by the

amount stated in the (Form JKR-APK).
The SO must sign the Form JKR-APK and copied to all

relevant parties. Refer Chapter 5 –
Appendix 5A

Action By
/ Reference
9 Contractor complies with instruction / variation order Action by : SOR/PjS
The Contractor shall acknowledge receipt and compliance

with the VO instruction (Form JKR-APK).
The Contractor is required to comply with the Superintending

Officer’s instruction or the Variation Order within 7 days of
receipt of the same.
10 & 11 Actual VO value more than approved amount Action by :
SOR/CAO
Where the actual costs of VO is more than the approved
amount for the particular VO, the SO is required to submit the
additional costs under new application (JKR-KPK) to the
Variation Committee for approval based on the aggregate
value of VO todate.
For composition and limits of authority of the VO Committee,

please refer Chapter 5.
12 Finalisation of VO Value For information
Every amount stated in the Form JKR-APK is provisional and See also Chapter 12
temporary only, and must be finally adjusted through Form – Adjustment of
JKR-PHK. Contract Sum
For adjustment of Contract Sum based on the final value of

variation works, the amount stated in the JKR-PHK shall be
the difference between the final VO value and the amount
stated in the JKR-APK. If there is no difference, the JKR-PHK
shall state “zero”.

 Form JKR 203U: Arahan Melibatkan Perubahan Kerja
 Form JKR-KPK: Permohonan Untuk Mendapatkan Kelulusan Perubahan Kerja
 Form JKR-APK: Arahan Perubahan Kerja
 Form JKR-PHK: Pelarasan Harga Kontrak
11.4 REFERENCES
Treasury Circular
[1] Bil 7 Tahun 2007: Peraturan Perubahan Kerja (Variation Order)
[1] Arahan Perbendaharaan 202: Arahan Perubahan Kerja
DID Circulars
[1] SPJPS Bil. 2/2008: Peraturan Mengenai Arahan Perubahan Kerja dan Pelarasan Harga Bagi
Kontrak Kerja

DID MANUAL
Volume 10
Chapter 11
– Variations
APPENDIX 11A
Checklist for Preparation of

Variation Works Order
[Form JKR APK]
(Senarai Semakan
Arahan Perubahan Kerja)

APPENDIX 11A CHECKLIST FOR PREPARATION OF VARIATION WORKS ORDER

(SENARAI SEMAKAN ARAHAN PERUBAHAN KERJA)
TAJUK
PROJEK
Tarikh Tarikh
Untuk Tarikh Siap
Tindakan Semakan
Kepada Oleh
PMK 1
PMK 2
AK*
No. Kontrak Harga RM
Kontrak
P.P Dalam Kontrak
Had Kewangan PK P.P RM
Jumlah Nilai APK Tambahan Yg. Telah Lulus RM
Jumlah Nilai APK Kurangan RM
Jumlah Peratusan APK Tambahan Yang Telah Lulus %
Bil. APK Yang Telah Dikeluarkan
Tarikh Terima No. APK
Permohonan Yang
Disemak
Tajuk Kerja
APK
Nilai Anggaran APK RM
(Sertakan butiran anggaran/pengesahan anggaran) KURANGAN/TAMBAHAN
Tandakan ()
A PK KURANGAN - Pastikan : selepas
semakan
1. Ada surat permohonan dari Jabatan/
Kementerian Pelanggan yang
ditandatangani oleh Pegawai Diberi
Kuasa, jika PK diminta oleh Pelanggan.
2. Nilai bersih adalah hasil penilaian PK
untuk bahagian/elemen/komponen kerja
yang sama.
3. Kerja tidak diperlukan dan tidak akan
dilaksanakan.
B PK TAMBAHAN – Pastikan :
1. Ada surat permohonan dari

Jabatan/Kementerian Pelanggan yang
ditandatangani oleh Pegawai Diberi
Kuasa, jika PK diminta oleh Pelanggan.


B PK TAMBAHAN (samb…)
2. Skop kerja dirangkumi oleh Kontrak

(within scope of Contract).
3. Arahan perlaksanaan kerja masih dalam

tempoh Kontrak.
4. Perlaksanaan kerja tidak menyebabkan

gangguan kepada kemajuan kerja/tempoh
penyiapan Kontrak.
5. Peruntukan mencukupi untuk

melaksanakan kerja.
6. Surat kelulusan Kementerian

Kewangan/Perbendaharaan Negeri jika PK
menyebabkan nilai jumlah harga Kontrak
melebihi peruntukan projek.
7. Surat kelulusan Ketua Setiausaha Kem.

Kewangan jika nilai PK Tambahan
melebihi 30% atau RM 6.0 Juta dari
Jumlah Harga Kontrak mengikut yang
mana lebih rendah.
C BORANG APK
1. Format Borang yang digunakan adalah
JKR-APK yang terkini
2. Satu Borang APK bagi satu PK
3. Tandatangan hendaklah P.P. yang

dinamakan dalam Kontrak

* Audit Kualiti; Jika Berkenaan

DID MANUAL
VOLUME 10
CHAPTER 12
ADJUSTMENT OF CONTRACT SUM

Chapter 12 – ADJUSTMENT OF CONTRACT SUM
Table of Contents

12.1 INTRODUCTION.........................................................................................................12-2
12.2 PROCEDURES ............................................................................................................12-2
12.4 REFERENCES .............................................................................................................12-5
APPENDIX 12A Checklist for Adjustment of Contract Sum (Senarai Semakan Penyediaan Pelarasan
Harga Kontrak)…………………………..……………………………………………..……………. 12A-1

List of Flowcharts
Flowchart 12.1 Adjustment of Contract Sum 12-1

1. Adjustment to Contract -
1
Sum is required
2. Determine if and when CAO

such adjustment can be
made. Make the
necessary adjustments
for:
(a) Variation Orders
2 (b) Adjustment for Prime

Cost Sums
(c) Adjustment for

Provisional Sums
(d) Remeasurement of
Provisional Quantities
(e) Variation of Prices
(f) Approved contractual

claims
(g) Errors or omissions in

Bills of Quantities
3 3. Issue the Certificate of SO/CAO

Adjustment of Contract
Sum (Form JKR- PHK)
Flowchart 12.1 – Adjustment of Contract Sum

12 ADJUSTMENT OF CONTRACT SUM
12.1 INTRODUCTION
 The guidelines and general procedures for the adjustment of Contract Sum.
12.2 PROCEDURES
Please refer to Flowchart 12.1 – Adjustment of Contract Sum.
Action By
/ Reference
1 Generally For Information
The Contract Sum shall be adjusted upon the issuance of JKR- See SPP 5/2007 -
APK to indicate the approved temporary value. Peraturan Pelarasan
Harga Kontrak
Every JKR-APK must be adjusted through JKR-PHK based on
the approved amount in JKR-KPK regardless of its value is
changed or not. However the value shows in the Form JKR-
PHK is net difference between temporary value and ultimate
value.
2 Adjustment of Contract Sum Action by: CAO
Refer to Checklist for Adjustment of Contract Sum. Refer: Appendix 12A
Determine the reasons for adjustment of Contract Sum. It is

permitted under the following circumstances only:
a) Variation Orders
Every issuance of JKR-APK must be followed by the issuance

of Form JKR-PHK.
The provisional amount stated in the JKR-APK must be Refer Chapter 11 -

finalized through Form JKR-PHK, even if there is no difference Variations
between the provisional amount and the final value of the
Variation works.
Check that the Variation Order (JKR-APK) is issued.
The adjustment is made as soon as the value of the variation

work is certified.

Action By
/ Reference
b) Adjustment of Prime Cost Sums
Check that the works is awarded to the nominated sub-

contractor/ supplier. Omit the original PC Sum and add the Refer also
awarded NSC’s/ NS’s contract sum and profit and attendance Chapter 20
which is allowed in Contract. – PC and Provisional
Sum.
The final adjustment is made after completion of works and
final cost is ascertained.
c) Adjustment of Provisional Sums
The Provisional Sums may be expended as follows: Refer also

Chapter 20
 Works shall carried out by Main Contractor, – PC and Provisional
 Works shall be omitted from Contract, and tendered Sum
out to third party, or
 Works shall be carried out by Nominated sub-
contractor / nominated supplier.
If the works under a Provisional Sum is carried out by NSC/

NS, and if the Main contractor is entitled to ‘profit and
attendance’ stated under the terms of the Contract and DID
circular, then this must be included in the PHK.
Ensure ‘Borang E’ and ‘Borang F’ (where applicable) is signed

by Authorised Person.
Check that the work or supply under a provisional sum is

approved in accordance with the DID procurement
procedures.
The adjustment is made as soon as the net costs of the works

/ supply is approved.
d) Remeasurement of Provisional Quantities
The final remeasurement to the Provisional Quantities is made Please refer to the
as soon as works is completed and the quantities can be current Treasury
accurately measured. Instruction No. 202,
Schedule 3
If there is a net increase in quantities, approval from the
Committee must be obtained for the additional quantities.
If there is further increased upon the approval of additional Refer to the

works, the approval by the same or higher ranking of Guidelines in SPP
Committee must be obtained using Form JKR-KKS. Refer to 7/2007 - Lampiran V.
the guidelines in SPP7/2007 Lampiran V.
If no nett increased or changed in quantities, no approval is

required but still need to be adjusted.

Action By
/ Reference
e) Variation of Prices
Please refer to SPP
The Variation of Prices exercise must be carried out monthly 3/2008
in Interim Payment, and the final adjustment is made after
the whole of the Works is completed.
For the Civil Works, ensure the adjustments made must not
exceed the quantities allowed in Contract.
The valuation and calculation must be in accordance with the

Special Provisions to the Conditions of Contract.
f) Approved Contractual Claims
The adjustment to the Contract Sum may be made after the

contractual claims had been approved by the Claim
Committee, or Ministry of Finance, as the case may be.
Ensure every claim by Contractor must be checked and

evaluate by SO prior forward to Claim Committee. Five (5)
copies applications must be attached with SO report before
send to Claim Committee Secretariat.
g) Errors in Bills of Quantities
The error of quantities/ or error in description/ or omission of

works in the Bills of Quantities is not considered a variation of
works, but to be adjusted through Form JKR-PHK.
This adjustment is applicable to contracts let under Form JKR,

under Clause 26.
3 Approval of Certificate of Adjustment of Contract Sum
Check that all the details are correct. Action by: CA
The Form JKR- PHK must be signed by the Superintending

Officer (or Project Director, as the case may be) named in the
Contract. Action by: CA

 Permohonan Kelulusan Tambahan Kuantiti Sementara (Borang D)
 Permohonan Kelulusan Wang Peruntukan Sementara (Borang F)
 Perakuan Pelarasan Harga Kontrak (Borang JKR-PHK Pind. 1/2001)
 Borang Kelulusan Kuantiti Sementara (JKR-KKS)
12.4 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars on the adjustment of contract sum.
Treasury Circular
[1] Bil 7 Tahun 2007: Peraturan Arahan Perubahan Kerja (Variation Order)
[2] Bil 3 Tahun 2008: Pelaksanaan Syarat Perubahan Harga Di Dalam Kontrak Kerja
[3] Bil 5 Tahun 2007: Peraturan Pelarasan Harga Kontrak
[1] AP 202: Definisi dan Kriteria Arahan Perubahan Kerja
DID Circulars
[1] SPJPS Bil. 3/2008: Peraturan Mengenai Arahan Perubahan Kerja dan Pelarasan Harga Bagi
Kontrak Kerja
[2] SPJPS1/2007: Peraturan Mengenai Wang Peruntukan Sementara


DID MANUAL
Volume 10
Chapter 12
– Adjustment of Contract Sum
APPENDIX 12A
Checklist for
Adjustment of Contract Sum
[Form JKR PHK]

Pelarasan Harga Kontrak)

APPENDIX 12A CHECKLIST FOR ADJUSTMENT OF CONTRACT SUM (SENARAI

SEMAKAN PENYEDIAAN PELARASAN HARGA KONTRAK)
TAJUK
PROJEK
Tarikh Tarikh
Untuk Tarikh Siap
Tindakan Semakan
Kepada Oleh
PMK 1
PMK 2
AK*
No. Kontrak Harga Kontrak RM
P.P Dalam Kontrak
Had Kewangan RM
PHK P.P
Jumlah Nilai PHK Tambahan Yang Telah Dikeluarkan RM
Jumlah Nilai PHK Kurangan Yang Telah Dikeluarkan RM
Jumlah Bersih PHK Terkumpul RM
Bilangan PHK Yang Telah Dikeluarkan
Tarikh Terima No. PHK Yang
Permohonan Disemak
Tajuk Kerja
PHK
Nilai Anggaran PHK RM
(Sertakan butiran anggaran/pengesahan anggaran) KURANGAN/TAMBAHAN
Tandakan ()
BHG. 1 TUJUAN PHK selepas
(Pilih Yang Berkenaan) semakan
A MEMUKTAMADKAN APK.
1. Kelulusan J/K PHK mengikut AP 202.2
dalam Borang JKR - KPK (Terkini) bagi PHK
Tambahan sahaja.
2. Pengukuran kuantiti yang berkenaan telah

dimuktamadkan
3. Kadar Harga yang berkenaan telah

dimuktamadkan
B PELARASAN WANG KOS PRIMA

1. Kerja telah diawadkan kepada
subkontraktor/pembekal.
2. Jumlah keuntungan dan caj layanan
Kontraktor telah diambilkira.
3. Jumlah Wang Kos Prima termasuk jumlah

keuntungan dan caj layanan di dalam
Kontrak telah diselaraskan.
4. Pastikan pelarasan mengambilkira PK

ke atas kerja Wang Kos Prima.

BHG. 1 TUJUAN PHK (samb.)

(samb.) (Pilih Yang Berkenaan)
C PERBELANJAAN WANG PERUNTUKAN

SEMENTARA
1. Jumlah harga kerja, perkhidmatan atau
bekalan telah ditentukan mengikut tatacara
perbelanjaan Wang Peruntukan Sementara
mengikut panduan proses perolehan kerja.
2. Jumlah yang diperuntukan di dalam Kontrak

sebagai Wang Kos Sementara untuk kerja,
perkhidmatan atau bekalan telah
diselaraskan.
3. Kelulusan Pegawai jika jumlah nilai kerja,

perkhidmatan atau bekalan yang
dijangkakan melebihi 30% daripada jumlah
yang diperuntukan di dalam Kontrak,
kecuali perolehan kerja /perkhidmatan /
bekalan diluluskan oleh Lembaga
Perolehan. Rujuk SP JPS 1/2007.
D PENGUKURAN SEMULA KUANTITI

SEMENTARA
1. Pengukuran kuantiti sementara di dalam
Kontrak telah dimuktamadkan.
2. Kelulusan Jawatankuasa Tambahan Kuantiti

Sementara mengikut A.P. 202 Jadual III
dalam Borang JKR - KKS (jika perlu)
E PERLAKSANAAN SYARAT TURUN NAIK

HARGA
1. Kesemua perkiraan bulanan turun naik
harga hingga tarikh siap Kontrak telah
diselesaikan.
2. Semua Pelarasan Harga Kontrak diluluskan.
3. Pelarasan perkiraan turun naik harga telah

disediakan apabila keseluruhan kerja di
dalam Kontrak telah disiapkan.
F KELULUSAN TUNTUTAN KONTRAKTOR

1. Pastikan kelulusan J/K Tuntutan.
2. Sertakan kelulusan Kementerian Kewangan

/ Perbendaharaan Negeri bagi tuntutan ex-
gratia dan tuntutan di luar terma Kontrak.
3. Butiran Penilaian Jumlah Amaun Tuntutan

yang diluluskan disertakan.

BHG. 1 TUJUAN PHK (samb.)

(samb.) (Pilih Yang Berkenaan)
G KESILAPAN KUANTITI/PENINGGALAN
KERJA DALAM
SENARAI KUANTITI
1. Butiran perkiraan jumlah harga akibat

kesilapan/peninggalan kerja dalam Senarai
Kuantiti disediakan.
2. Surat pengesahan mengenai

kesilapan/peninggalan kuantiti daripada
Pejabat / Perunding yang menyediakan
Senarai Kuantiti berkenaan.
BHG. 2 BORANG PELARASAN HARGA KONTRAK

(JKR-PHK)
1. Format Borang yang digunakan adalah JKR-

PHK yang terkini.
2. Pelarasan harga kontrak dimasukan di

dalam Bayaran Interim.
3. Tandatangan hendaklah Pegawai Penguasa

yang dinamakan dalam Kontrak.


DID MANUAL
VOLUME 10
CHAPTER 13
DELAYS AND
EXTENSION OF TIME
Chapter 13 – DELAYS AND EXTENSION OF TIME
Table of Contents

13.1 INTRODUCTION ............................................................................................................13-3
13.2 PROCEDURES................................................................................................................13-3
13.3 DELAY AND EXTENSION OF TIME ..................................................................................13-5
13.4 PURPOSE OF EXTENSION OF TIME PROVISIONS ............................................................13-5
13.5 GROUNDS FOR EXTENSION OF TIME IN STANDARD FORMS OF CONTRACT.....................13-5
13.6 POINTS TO REVIEW FOR CONSIDERATIONS OF EXTENSION OF TIME .............................13-6
13.7 METHODS FOR ASSESSMENT OF EXTENSION OF TIME ...................................................13-6
13.9 REFERENCES.................................................................................................................13-7
APPENDIX 13A Checklist for the Preparation of Certificate of Delay and Extension
of Time (Senarai Semakan Penyediaan Perakuan Kelewatan dan
Lanjutan Masa) …………………………………………………………………………………..….. 13A-1
Revision 0: March 2009 13-i

List of Flowcharts
Flowchart 13.1 Delay 13-1

Flowchart 13.2 Extension of Time 13-2
13-ii Revision 0: March 2009

Delay become apparent; SOR issues warning

letter to Contractor
Contractor to explain / issue letter explaining on

reasons of delay
YES NO
Acceptance
SOR to issue warning letter to

Contractor informing on his intention
Reasons of delay NO
to issue Certificate of Non-
are acceptable as
Completion and impose Liquidated
per contract?
and Ascertained Damages
YES
Contractor to continue work and at the

Prepare Certificate of Delay and Extension same time SOR to prepare Certificate
of Time for approval and signature of of Non-Completion for the approval
Authorised Party and signature of Authorised Party
REFER TO CHAPTER 14 -
NON-COMPLETION
Flowchart 13.1 – Delay

1. Notice of Delay and -

1 Application for extension
of time.
2 2. Assess the application for SOR

extension of time; reasons
for delay and quantum of
delay.
No
3
Yes 3. Contractor eligible for SOR

extension of time?
4. Prepare report and SOR Refer:

4 Certificate of Delay and Checklist for
Extension of Time. Preparation of
Submit for the approval of
Certificate of
Authorised Party.
Delay and
No Extension of
Time
5 5. Check report of Delay and CAO
Extension of Time
Yes
6. Issue Certificate of Delay SOR

6 and Extension of Time to
the Contractor.
7. Completion of Works is - Refer:

delayed and there is no Chapter 14
7 matter entitling the
Contractor to an extension
of time? Issue warning
letters, and if delayed
beyond Date for
Completion then issue
Certificate of Non-
Completion and impose
Liquidated and
Ascertained Damages.
Flowchart 13.2 – Extension of Time

13 DELAYS AND EXTENSION OF TIME
13.1 INTRODUCTION
 An overview of the delay and extension of time provisions and procedure for works contracts
 The standard forms of contract use for DID projects
13.2 PROCEDURES
Please refer to Flowchart 13.1 – Delay and Flowchart 13.2 – Extension of Time.
Action By
/ Reference
1 Notice of Delay and Application for extension of time For information
Contractor to put in application for extension of time as soon

as it becomes apparent that the progress of the Works is
delayed.
Contractor to extent Performance Bond and all Insurances

until the estimated new completion date.
2 Assess the application for extension of time Action by: SOR
It is the duty of the SOR to review the extension of time Refer : AP201 –
application based on the supporting documents submitted by Perubahan Dan
Contractor. Pelanjutan Tempoh
Kontrak Untuk
SOR to assess reasons and quantum of delay as allowed and Kontrak Bekalan Dan
acceptable grounds in contract. Perkhidmatan
3 Contractor eligible for extension of time? Action by: SOR
If Contractor is eligible, determine new Date of Completion.

If not eligible, go to step 7.
4 Prepare report and Certificate of Delay and Extension of Action by: SOR
Time. Submit for the approval of Authorised Party
After determining new Date for Completion, prepare report Refer to Checklist for
of Delay and Extension of Time complete with grounds, the Preparation of
quantum and calculation. Certificate of Delay
and Extension of
Submit report and Certificate of Delay and Extension of time Time.
for approval from Authorised Party.
Use the latest Form JKR 203T.
5 Check report of Delay and Extension of Time Action by: CAO
Submit the report to the CAO for verification.

Action By
/ Reference
6 Issue Certificate of Delay and Extension of Time to the Action by: SOR
Contractor
As soon as it is approved issue to Contractor the Certificate

of Delay and Extension of Time and inform on new Date for
Completion.
7 Completion of Works is delayed and there is no matter For information

entitling the Contractor to an extension of time?
Refer Chapter 14 – Non-completion Refer: Chapter 14 –

Non-completion

13.3 DELAY AND EXTENSION OF TIME
Most construction contracts will specify a time for completion. The contractor is obliged to complete
the works within the stipulated date subject to any extension of time.
Time is of the essence is a phrase loosely used in construction contracts to underscore the
Government’s insistence on the contractor’s performance obligation by the stipulated date of
completion. It often has to do with extension of time application by contactors and for disruption and
delays with related money application in the form of direct loss and/or expense application and on
the Government’s side, the right to Liquidated And Ascertained Damages for delays on the part of
the Contractor.
Time will be at large where the extensions of time provisions have been improperly applied or
administered, or where the original time for completion has been waived.
13.4 PURPOSE OF EXTENSION OF TIME PROVISIONS
For the Government
 Enables to fix a new completion date

 Keeps alive the Government’s right to Liquidated And Ascertained Damages
For the Contractor
 Reduces the liability to pay Liquidated And Ascertained Damages

 May entitle to claim for prolongation costs incurred
Other consequences
 Avoids time being at large

 Extinguishes the previously issued certificate of non-completion (if any)
13.5 GROUNDS FOR EXTENSION OF TIME IN STANDARD FORMS OF CONTRACT
The grounds of extension of time allowed in JKR 203A form of contract is under Clause 43: Delays
and Extension of Time as follows:-
a) Force majeure
b) Exceptionally inclement weather
c) Instructions consequential upon disputes with neighbouring owners
d) Fire or other insurable damage
e) Compliance with S.O’s / P.D.’s instruction for discrepancies, variations, date of commence
and completion or postponement
f) Late issue of instruction, drawings, levels or instruction in regards to NSC/NS
g) Delay in giving possession of site
h) Civil commotion, strike or lockout
i) Delay by artists, tradesmen and other direct contractors
j) Shortages of labour or materials
k) Delay by NSC/NS
In JKR Design & Build / Turnkey Contract (2002 Edition) the relevant clause for Delay and Extension
of Time is found in Clause 45.

Other requirements related to submission of extension of time application by contractor include:-
 Notice Provisions
a) Provide advance warning of delays so that necessary mitigation measures can be

undertaken before it become too late
b) When it becomes reasonable apparent
13.6 POINTS TO REVIEW FOR CONSIDERATIONS OF EXTENSION OF TIME
It is the duty of the SOR to review the extension of time claim.
a) Records and Contract Provisions

- Actual facts and record are critical
- Programmes and notices should not be ignored or left
b) Sequence of works
- The order in which works logically have to take place
c) Critical paths
- Those items which must be completed in a certain order
d) Use of float time

- Spare time / capacity in the programme between critical events
- Over estimation of activity durations
e) Ownership of float
- As a general rule, the party which needs it uses it
f) Mitigation measures undertaken by contractor

- Limitation of actual delay impact
- Contractor must progress work diligently
g) Contractual duties
- Contractor must limit the impact of any delay
- S.O / P.D. should grant extension of time as the works progress, wherever possible
h) Concurrency
- A number of competing connected events
- A number of unrelated events occurring at the same time
i) Dominant cause
- The event which really causes the delay
- Usually determined by using as-built programmes / critical path analysis
13.7 METHODS FOR ASSESSMENT OF EXTENSION OF TIME
a) Based on programme analysis – Critical Path Method (CPM) / As built
b) Must demonstrate actual cause and subsequent event
c) Net vs. Gross Assessments

- Granted extension of time to be added to previous Completion Date
- Assessment based upon time related to the relevant event
- Not a consideration of when the event actually occurred

d) Nominated Sub-Contractors or Nominated Supplier

- Delays caused by NSC / NS (such delay shall be cause by the same reasons affecting
their work as stated in item 13.5 (a) – (i)) are acceptable grounds provided the
Contractor has done all possible to mitigate loss of time
e) Direct Contractors
- Delays caused by Direct Contractors are not acceptable grounds
Please refer to Volume 10A for the standard reference or sample documents mentioned in the
procedures or processes outlined in this Chapter.
 Form JKR 203T (Pin. 4/83) : Perakuan Kelambatan dan Lanjutan Masa
13.9 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars on the administration of delays and
extension of time.
Treasury Circular
(Surat Pekeliling Perbendaharaan / Surat Arahan Perbendaharaan)
[1] Surat Arahan Perbendaharaan S/K.KEW/PK/PP/1100/000000/10/31 Jld. 22 (7) 16 Mei 2007:

Pelanjutan Masa (Extension of Time) Bagi Kontrak Projek Kerja
[1] AP 201: Perubahan Dan Pelanjutan Tempoh Kontrak Untuk Kontrak Bekalan Dan Perkhidmatan
DID Circulars


DID MANUAL
Volume 10
Chapter 13
– Delays and Extension of Time
APPENDIX 13A
Checklist for the

Preparation of Certificate of
Delay and Extension of Time
[Form JKR 203T]

Perakuan Kelewatan dan Lanjutan Masa)

APPENDIX 13A CHECKLIST FOR THE PREPARATION OF CERTIFICATE OF DELAY

AND EXTENSION OF TIME (SENARAI SEMAKAN PENYEDIAAN
PERAKUAN KELEWATAN DAN LANJUTAN MASA)
TAJUK
PROJEK
Tarikh Tarikh
Untuk Tarikh Siap
Tindakan Semakan
Kepada Oleh
PMK 1
PMK 2
AK*
1. (i) Perakukan Kelambatan dan Tandakan ()

Lanjutan Masa hendaklah selepas semakan
disediakan sebaik sahaja tempoh
kelambatan dapat ditentukan, dan
seboleh- bolehnya tidak lewat
daripada dua bulan sebelum
berakhirnya tempoh siap kontrak.
(ii) Pastikan Kontraktor telah

mengemukakan permohonan untuk
lanjutan masa secara bersurat
dengan menyatakan alasan- alasan
kelewatan, tempoh lanjutan masa
yang diperlukan dan sebagainya.
(iii) Pastikan semua polisi Insuran, Bon

Perlaksanaan (sekiranya
recoupment belum habis dibuat)
telah dilanjutkan oleh kontraktor
untuk tujuan lanjutan masa ini.
Sekiranya kontraktor gagal
melanjutkan polisi insuran, PMK
hendaklah menguruskan pelanjutan
(hendaklah ditolak daripada wang
yang kena bayar kepada
kontraktor).
2. Borang yang digunakan ialah JKR 203T

yang terkini.
Muka surat 1 (Borang 203T)
3. KERAJAAN – bermaksud ‘KERAJAAN

MALAYSIA’ bagi projek Persekutuan
atau ‘KERAJAAN ......’ BAGI PROJEK
Negeri.


4. PKLM No. – sila pastikan nombor
berturutan.
5. Rujukan – sila masukkan nombor fail

projek pejabat Pegawai Penguasa yang
menyediakan.
6. Pejabat – isikan alamat pejabat Pegawai

Penguasa.
7. Tarikh - Tarikh PKLM ditandantangani

oleh Pegawai Penguasa.
8. Kepada ( Nama dan alamat kontraktor),

Kelas Pendaftaran, No. kontrak dan
nama kontrak - hendaklah sama seperti
yang terdapat di dalam
dokumen kontrak.
9. Bahagian - masukkan nama penyiapan

bahagian- bahagian
(jika berkenaan) sepertimana yang
dinyatakan dalam lampiran kepada
Syarat-Syarat Kontrak JKR 203/203A
semakan 10/83 Klausa 41.
10. Para 1 –
(i) Masukkan Tarikh Siap Asal atau
Lanjutan yang telah diluluskan
sebelumnya.
(ii) Nyatakan sebab-sebab iaitu alasan-

alasan yang menyebabkan
berlakunya kelewatan atau
kelambatan kerja sepertimana yang
dibenarkan di bawah klausa 43
Syarat-syarat Kontrak. Lampirkan
sinopsis dan dokumen-dokumen
sokongan yang lengkap dan
munasabah sesuai dengan setiap
alasan/sebab- sebab yang diberi.
iii) Klausa - sila nyatakan sub-klausa

untuk klausa 43 yang bersesuaian
dengan setiap alasan/sebab yang
dikemukakan.


10
(Samb.) (iv) Tempoh Kelambatan dan Lanjutan
Masa – nyatakan tempoh dalam
kiraan hari dan tarikh sebenar
berlakunya kelambatan tersebut (di
dalam kurungan)
Muka surat 2 (Borang 203T)
11 Para 2 - masukkan jumlah bilangan hari

yang diperakukan untuk lanjutan masa.
Jumlah hari bertindih hendaklah ditolak
dari jumlah keseluruhan.
12 Para 3 –
(i) Tarikh siap yang ditetapkan

hendaklah sama seperti mana yang
dinyatakan di dalam Para1(i).
(ii) Tarikh dilanjutkan ialah tarikh baru

setelah tarikh siap ditetapkan
dicampurkan dengan jumlah hari
pada Para 2 iaitu :-
Tarikh lanjutan masa baru = Tarikh

Para 1 + bilangan hari Para 2
Maklumat Tambahan
13 Sebarang maklumat tambahan seperti :-
(i) Peratus Kemajuan Kerja Sebenar

pada tarikh PKLM dikemukakan.
(ii) Nombor dan tempoh lanjutan

Gerenti Bon Perlaksanaan, Gerenti
bayaran pendahuluan, polisi dan
insurans CAR. Endorsement asal
untuk tiap-tiap polisi tersebut
hendaklah disertakan bersama-
sama PKLM ini.
boleh dimasukkan dalam sinopsis
sebab-sebab lanjutan masa yang
dilampirkan bersama PKLM.
14 Tandatangan, Nama dan Jawatan

Pegawai Penguasa

15 Tandatangan, Nama dan Jawatan

Pegawai Yang Diberikuasa
Menandatangani PKLM

* Jika berkenaan

DID MANUAL
VOLUME 10
CHAPTER 14
NON- COMPLETION
Chapter 14 – NON-COMPLETION
Table of Contents

14.1 INTRODUCTION ............................................................................................................14-3
14.2 PROCEDURES................................................................................................................14-3
14.3 NON-COMPLETION ........................................................................................................14-4
14.4 PREPARATION AND SUBMISSION OF CERTIFICATE OF NON-COMPLETION ......................14-5
14.6 REFERENCES.................................................................................................................14-6
APPENDIX 14A Checklist for the Preparation of Certificate of Non-Completion

(Senarai Semakan Penyediaan Perakuan Kerja Tidak Siap…………….……………...14A-1

List of Flowcharts
Flowchart 14.1 Delay 14-1

Flowchart 14.2 Non-Completion Procedure 14-2

Delay become apparent; SOR issues warning

letter to Contractor
Contractor to explain / issue letter explaining on

reasons of delay
YES NO
Acceptance
SOR to issue warning letter to

NO Contractor informing on his intention
Reasons of delay
to issue Certificate of Non-
are acceptable as
Completion and impose Liquidated
per contract?
and Ascertained Damages
YES
Contractor to continue work and at the

Prepare Certificate of Delay and Extension same time SOR to prepare Certificate
of Time for approval and signature of of Non-Completion for the approval
Authorised Party and signature of Authorised Party
REFER TO CHAPTER 13 -
DELAY AND EXTENSION TIME
Flowchart 14.1 – Delay

1 1. Warning letter / notice to SOR

contractor on issuance of
Certificate of Non-
Completion, and intention
to impose Liquidated and
Ascertained Damages.
2 2. Prepare Certificate of Non- SOR

Completion
3. Verify the Certificate of CAO

3 Non-Completion for
completeness and
issuance is valid
4 4. Issue Certificate of Non- SOR Refer : Form

Completion and issue JKR 203X
letter on intention to
impose LAD
5
5. Impose LAD SOR
6. Inform Contractor on SOR

6
amount of deduction of
LAD; if necessary
Flowchart 14.2 – Non-Completion Procedure

14 NON-COMPLETION
14.1 INTRODUCTION
 An overview of the non-completion provisions and procedure for works contracts
14.2 PROCEDURES
Please refer to Flowchart 14.1 – Delay and Flowchart 14.2 – Non-Completion Procedure.
Action By
/ Reference
1 Warning letter / notice to contractor on issuance of Certificate Action by: SOR
of Non-Completion (CNC) and LAD
To issue warning letter to Contractor that Certificate of Non-

Completion will be issue due to the late completion, and that
Liquidated and Ascertained Damages will be imposed.
2 Prepare CNC Action by: SOR
Ensure that the latest Form JKR 203X is used.
Complete the form, and make sure that all the particulars are
correct. Refer Section 14.4
3 Verify the CNC Action by: CAO
Before issuance of the CNC, CAO to check on the

completeness and that the reasons for the issuance is valid.
4 Issue CNC Action by: SOR
When Date for Completion is due and the Works has not
reached practical completion, issue Certificate of Non-
Completion to avoid time at large.
Ensure that all related Insurance Policies and Performance

Bond are submitted accordingly, and still valid.
Issue instruction to Contractor to extend the validity of the

Insurance Policies and Performance Bond, if necessary.

Action By
/ Reference
5 Impose LAD Action by: SOR
The Government shall impose LAD when Certificate of Non-

Completion is issued.
Ensure that the LAD is deducted in the next Interim Payment

Certificate.
If there is insufficient payment due to the Contractor to cover

the amount of LAD, then consider recovering the LAD from
the Performance Bond.
Consider whether there are sufficient grounds to determine

the employment of the Contractor. If yes, go the Chapter 16
– Determination.
6 Inform Contractor on amount of deduction of LAD Action by: SOR
When LAD is imposed, then inform the Contractor in writing

on the amount of deduction of LAD.
14.3 NON-COMPLETION
If the Contractor fails to complete the Works by the Date for Completion stated in the Contract
Document or within any extended time under Clause 43 (delay and extension of time), then the S.O
shall issue the Certificate of Non-Completion.
Due to the delay of completing the Works, the Contractor bears the loss or damage suffered by the
Government. Government has the right to impose liquidated and ascertained damages. Liquidated
damages are intended to be the estimated damages that would be incurred as a result of delay to
the Works for which the Contractor is responsible.

14.4 PREPARATION AND SUBMISSION OF CERTIFICATE OF NON-COMPLETION
Some basic rules must be complied with in the preparation of the Certificate of Non-Completion as
follows:-
a) All particulars in the Certificate must be correctly inserted. Particulars of the Contract and
the Contractor inserted in the Certificate must be the same as those in Contract
Document. No space allowed for insertions in the Certificate, except the date of the
same, shall be left blank. The date of the Certificate shall be the date on which the
officer empowered to do so signs the Certificate.
b) The periods of coverage of the insurance policies must be extended to the expected date
of completion of the Work.
When submitting the Certificate of Non-Completion for approval, particulars of the Contract and
other information must be provided on a standard form. In addition, the following must be submitted
together:-
a) A statement by the recommending officer as to whether he has studied the

circumstances of the case in depth and assessed the ability of the Contractor to proceed
and complete the Work; and whether in his opinion, imposition of LAD will ensure
completion of work the soonest and his reasons for thinking so.
b) A description of the progress of work achieved by the Contractor and the work
programme of the balance of work may be completed.
c) Information whether there has been any cause of delay for which Government to be
responsible for and if so, whether a reasonable extension of time has been granted and
whether there is any foreseeable cause of delay for which the Government may be
responsible.
Only the officers empowered can approve the Certificate of Non-Completion. After approval, the
original copy must be sent to the Contractor by A.R Registered post. A copy of the CNC must also be
distributed to the parties listed for distribution in the Certificate.
 Sample of Warning Letter
 Form JKR 203X (Pin. 1/83) : Certificate of Non-Completion
 Ringkasan Ke Atas Kontrak Yang Akan Dikeluar “Perakuan Kerja Tidak Siap”

14.6 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars on the administration of delays and
issuance of certificate of non-completion.
Treasury Circular
 Nil
 Nil
DID Circulars

DID MANUAL
Volume 10
Chapter 14
– Non- Completion
APPENDIX 14A
Checklist for the Preparation of

Certificate of Non-Completion
[Form JKR 203X]

Perakuan Kerja Tidak Siap)

APPENDIX 14A CHECKLIST FOR THE PREPARATION OF CERTIFICATE OF NON-

COMPLETION (SENARAI SEMAKAN PENYEDIAAN PERAKUAN
KERJA TIDAK SIAP)
TAJUK
PROJEK
Tarikh Tarikh
Untuk Tarikh Siap
Tindakan Semakan
Kepada Oleh
PMK 1
PMK 2
AK*
Tandakan ()
1 Notis untuk Mengenakan Ganti Rugi selepas
semakan
1.1 Sila pastikan surat-surat amaran telah
dikeluarkan. Untuk surat amaran
terakhir, sila pastikan format yang
ditetapkan digunakan.
2 Penyediaan dan Mengemukakan

Perakuan untuk Kelulusan
2.1 Pastikan borang yang digunakan adalah

borang JKR 203X yang terkini.
2.2 Cara-cara pengisian borang, sila rujuk

kepada perkara 5.
2.3 Pastikan semua polisi Insuran, Bon

Perlaksanaan serta Gerenti untuk
bayaran Pendahuluan (sekiranya
recoupment belum habis dibuat) telah
dilanjutkan oleh kontraktor. Sekiranya
kontraktor gagal melanjutkan polisi
Insuran, PMK hendaklah menguruskan
pelanjutan (hendaklah ditolak daripada
wang yang kena bayar kepada
kontraktor).
2.4 Perakuan Kerja Tidak Siap yang dimajukan

hendaklah dikepilkan bersama-sama
borang ringkasan maklumat piawai.
Maklumat- maklumat tambahan berikut
hendaklah disertakan :
2.4.1 Huraian mengenai kemajuan

kerja yang telah dicapai oleh
kontraktor dan baki kerja yang
akan dilaksanakan dan perkiraan
bila baki kerja tersebut boleh
dilaksanakan


Penyediaan dan Mengemukakan
Perakuan untuk Kelulusan (Samb.)
2.4.2 Butir-butir bayaran interim

kepada Kontraktor dan sebab-
sebab sebarang kelambatan
bayaran dan bayaran tidak
dibuat.
3 Kuasa Untuk Meluluskan Perakuan
3.1 Pastikan Perakuan ini diluluskan oleh

Pihak Berkuasa yang dinamakan dalam
Kontrak.
4 Cara-cara Pengisian Borang Perakuan

Tidak Siap Kerja
4.1 Kerajaan - Masukkan Malaysia bagi

projek Persekutuan dan Kerajaan Negeri
bagi Projek Negeri.
4.2 Rujukan - Isikan No. Rujukan Fail.
4.3 Pejabat - Pastikan alamat pejabat

adalah alamat pejabat Pegawai
Penguasa yang akan menandatangani
Perakuan ini.
4.4 Tarikh - Tarikh perakuan ini

ditandatangani oleh Pegawai Penguasa.
4.5 Kepada - Catitkan Nama dan Alamat

kontraktor. Pastikan Nama dan Alamat
kontraktor adalah sama seperti tercatit
dalam dokumen kontrak.
4.6 Pastikan kelas pendaftaran Kontraktor

dengan PKK dicatitkan.
4.7 No. kontrak - Masukkan no. kontrak.

Pastikan nombor kontrak adalah sama
seperti tercatit dalam dokumen kontrak.
4.8 Kontrak Untuk - Masukkan tajuk kontrak

dan pastikan ianya adalah sama seperti
yang tercatit dalam dokumen kontrak.

Cara-cara Pengisian Borang Perakuan

Tidak Siap Kerja (Samb.)
4.9 Bahagian - Masukkan bahagian kerja

sekiranya “Sectional Completion" ada
diperuntukkan dalam kontrak.
4.10 Para 1
− Sila potong bahagian yang tidak

berkenaan samaada kerja atau
sebahagian kerja-kerja.
− Masukkan tarikh siap sebenar atau

tarikh siap yang dilanjutkan yang
sepatutnya kontraktor menyiapkan
projek tersebut.
4.11 Para 2
− Masukkan jumlah denda LAD bagi

setiap hari seperti yang tercatit
dalam dokumen Kontrak.
4.12 Tandatangan, Nama dan Jawatan

Pegawai Peguasa.
4.13 Tandatangan, Nama dan Jawatan

Pegawai Yang Diberikuasa
Menandatangani Perakuan Tidak Siap
Kerja.

* Audit Kualiti; Jika berkenaan

DID MANUAL
VOLUME 10
CHAPTER 15
LOSS AND EXPENSE

Chapter 15 – LOSS AND EXPENSE
Table of Contents

15.1 INTRODUCTION ............................................................................................................15-2
15.2 PROCEDURES................................................................................................................15-2
15.3 LOSS AND EXPENSE PROVISIONS IN JKR203 & JKR203A CONDITIONS OF CONTRACT .....15-3
15.4 RELATIONSHIP BETWEEN LOSS AND EXPENSE AND EXTENSION OF TIME .......................15-4
15.5 TYPICAL HEAD CLAIMS AND WHEN THEY ARE JUSTIFIED ................................................15-4
15.6 ESTABLISHING IF A LOSS AND EXPENSE CLAIM IS VALID ................................................15-5
15.7 REFERENCE DOCUMENTS ...............................................................................................15-5
15.8 REFERENCES..................................................................................................................15-5
APPENDIX 15A Checklist for the Assessment of Contractor’s Claim and Preparation
Of S.O./P.D. Report (Senarai Semakan Penyediaan Penilaian Tuntutan
Kontraktor dan Laporan Pegawai Penguasa…………….………..……………………..….15A-1

List of Flowcharts
Flowchart 15.1 Loss and Expense Procedure 15-1

1 1. Received notice and -

estimates for loss and
expense
No 2. Is Contractor eligible for SOR

2 payment of loss and
expense?
Yes
3. Inform Contractor of SOR

3
eligibility for loss and
expense. Request further
information, if necessary.
4. Received details, and SOR

4
evaluate the information
submitted by the
Contractor
5 5. Prepare report and submit SO/SOR

to Claim Secretariat
6 6. Review and prepare BUBK

recommendation by Claim
Secretariat
7 7. Decision by Claims Claims

Committee Committee
8 8. Inform Contractor on the SOR

result
9
9. Revise Contract Sum; if CAO Refer:
approved; if Final Account Chapter 12 –
is closed, revise Final Adjustment of
Account
Contract Sum
Flowchart 15.1 – Loss and Expense Procedure

15 LOSS AND EXPENSE
15.1 INTRODUCTION
 Overview of standard contract provisions and how to deal with Contractor’s claim
15.2 PROCEDURES
Please refer to Flowchart 15.1 – Loss and Expense Procedure.
Action By
/ Reference
1 SO/SOR received notice and estimates for loss and expense
Contractor within one (1) month of the occurrence of event,

give notice in writing to S.O his intention to claim supported by
estimated amount.
The Contractor to submit details of his claim within 3 months

after the issuance of Certificate of Practical Completion.
2 Determine contractor’s eligibility for payment of loss and Action by: SOR
expense
Carry out preliminary assessment of all claims, and establish if

the loss and expense claim is valid
3 Inform Contractor of eligibility for loss and expense, and Action by: SOR
request for further information; if necessary
Inform Contractor in writing on eligibility and if documents

substantiation is not sufficient, request for more supporting
documents, supporting vouchers, explanation and calculation.
4 Received details and evaluate the information submitted by the Action by: SOR
Contractor
The SOR shall forthwith evaluate all information submitted by

the Contractor.
The SOR shall finalise all claims to meet the deadline for
completing Final Account, which is no later than three (3)
months after end of Defects Liability Period.
Action by: SO/SOR
5 Prepare report and submit to Claim Secretariat
After assessment and evaluation, prepare report of evaluation

complete with eligible amount for approval of the SO.
Submit the report to the Claim Secretariat at BUBK.

Action By
/ Reference
6 Review and prepare recommendation Action by: BUBK
Claim Secretariat to assess report prepared by SO/SOR and

prepare recommendation to Claims Committee.
7 Decision by Claim Committee Action by: Claims
Committee
After reviewing report and recommendation; make decision.
8 Inform Contractor on the result Action by: SOR
After determining the eligible amount claimable for loss and/or

expense and after receive approval, inform Contractor in
writing.
If not eligible, inform Contractor in writing.

9 Revise Contract Sum; if approved Action by: CAO
Adjust Contract Sum when claim for loss and/or expense is Refer Chapter 12 –
approved. Adjustment of
Contract Sum
Prepare Final Account, based on the adjusted Contract Sum.
If Final Account has been prepared, closed and approved prior

to the settlement of claims, then revise the Final Account
accordingly.
15.3 LOSS AND EXPENSE PROVISIONS IN JKR203 & JKR203A CONDITIONS OF

CONTRACT
The three (3) relevant clauses related to direct loss and/or expense are Clause 5(d), Clause 44 and
Clause 48.
Clause 5(d) deals with S.O Instruction; Clause 44 deals with Loss and Expense caused by Delays
whilst Clause 48 deals with Final Certificate.
The Contract Conditions has the following provisions/requirements:-
 Contractor shall within one (1) months of the occurrence of the event, give notice in writing
to S.O of his intention to claim supported by an estimate of the amount of loss and/or
expense likely to be incurred
 Within three (3) months after Practical Completion, the Contractor shall submit full
particulars of all claims together with any documents, supporting vouchers, explanations and
calculations

The grounds for direct loss and/or expense (under Form JKR 203/203A) are limited under to
disruption of regular progress of the works or any part thereof by reasons of:-
(i) Directions given by S.O consequential upon disputes with neighboring owners not due to
neglect or default of the Contractor of his Sub-Contractors [Clause 48 and Clause 43 (c)]
(ii) Contractor not receiving in due time necessary instructions and information due to
negligence or default of the S.O [Clause 48 and Clause 43 (f)]
(iii) Delay on the part of artists, tradesmen or others engaged by the government for work
not forming part of the Contract [Clause 48 and Clause 43(i)]
15.4 RELATIONSHIP BETWEEN LOSS AND/OR EXPENSE AND EXTENSION OF TIME
Many Contractors upon being granted and Extension of Time (EOT) presume that they can claim all
additional costs for the extended period as loss and/or expense.
The granting of EOT does not give an automatic right to loss and/or expense.
EOT and loss and/or expense are separate and must be dealt with independent of each other and on
their own merits.
Only by examining cause and effect can items of costs, which fall under loss and/or expense, be
identified. If the delay was the responsibility solely of the Contractor, Contractor should not cover his
additional costs arising from any delay of the building works by claiming Loss and Expense. If delay
is due to natural factors, than loss and/or expense is not claimable.
15.5 TYPICAL HEAD CLAIMS AND WHEN THEY ARE JUSTIFIED
“Heads” of claim for Loss and/or Expense may include:-
(a) Additional Site Overheads
 Sometimes been referred to extended preliminaries. Should be based on actual additional

costs incurred by the Contractor resulting from an event or circumstances, which brought to
disruption to the regular progress of the works. The actual cost could either be higher or
lower than the priced Preliminaries in the Contract Sum. The priced Preliminaries serves as a
guide in assessment of loss and/or expense as to expenditure that the Contractor would
expend had there been no disruption.
 The actual cost should not deviate too far from contract pricing and should it happen, then
check carefully that the Contractor has not “loaded” his costs which he had incurred as a
result of his own delays or poor management.
(b) Cost of uneconomic working (loss of productivity)
 This refers to Contractor’s loss of output or productivity due to disruption of the regular
progress of the works, and includes idling costs. Contractor need to produce detailed records
because the Contractor may generally be inefficient or he may have carried out work
incorrectly.
 Contractor needs to demonstrate that he has taken measures to mitigate the loss.

15.6 ESTABLISHING IF A LOSS AND EXPENSE CLAIM IS VALID
The basic grounds to deal with a loss and expense claim are as follows:-
(a) The claim is in accordance with the relevant clauses of the Conditions of
Contract.
(b) In line with the above, all notices and claims must be submitted in writing.
(c) The SOR shall assess all claims for loss and/or expense as soon as sufficient
information is available.
(d) It must be an expense not recoverable elsewhere under the contract.
Assess the claim for loss and/or expense as follows:
(a) Expenses claimed are actual expenses which are supported by documentation.
(b) Loss can be proven through documentary proof and records.
(c) Contractor has shown that the loss and/or expense are direct consequence(s) of
the delay/disruption (cause-and-effect).
15.8 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars on claims for loss and expense.
Treasury Circular
 Nil
DID Circulars
 Nil


DID MANUAL
Volume 10
Chapter 15
– Loss and Expense
APPENDIX 15A
Checklist for the Assessment of

Contractor’s Claim and Preparation of
S.O./P.D. Report

Penilaian Tuntutan Kontraktor dan Laporan
Pegawai Penguasa)

APPENDIX 15A CHECKLIST FOR THE ASSESSMENT OF CONTRACTOR’S CLAIM

AND PREPARATION OF S.O./P.D. REPORT (SENARAI SEMAKAN
PENYEDIAAN PENILAIAN TUNTUTAN KONTRAKTOR DAN
LAPORAN PEGAWAI PENGUASA)
TAJUK
PROJEK
Tarikh Tarikh
Untuk Tarikh Siap
Tindakan Semakan
Kepada Oleh
PMK 1
PMK 2
AK*
1.0 AM
1.1 Fahami asas tuntutan dan tentukan

sinopsis peristiwa yang menyebabkan
tuntutan oleh Kontraktor.
1.2 Tentukan tuntutan layak

dipertimbangkan untuk dibawa ke J/K
Tuntutan antaranya seperti berikut :
(a) Asas tuntutan adalah dibenarkan di

Bawah Kontrak seperti A.P 202
Jadual III (e) iaitu:
 Kerugian dan perbelanjaan

disebabkan oleh kelambatan
Kerajaan dan/atau mematuhi Arahan
PP atau kerana mematuhi keperluan
Berkanun
 Percanggahan dalam atau antara

Dokumen-dokumen kontrak
 Tuntutan lain yang nyatanya

dibenarkan dalam Syarat-syarat
Kontrak seperti :
o Fasal 43 (c), (f) & (i) Borang JKR
203/203A
 Apa-apa kos yang ditanggung

berhubung dengan fee & caj
pemindahan pembentungan, bekalan
air, bekalan elektrik dan lain-lain
yang berkaitan


1.0 AM (Samb.)
(Samb.)
(b) Tuntutan kontraktor yang berpunca
dari pecah kontrak atau kegagalan
Kerajaan atau PP yang
menyebabkan pelaksanaan Kerja
Kontraktor terhalang atau terlewat.
(c) Kontraktor telah melaksanakan

obligasi tambahan yang tidak
berbentuk fizikal kekal (seperti
item-item awalan, kerja
sementara, penggunaan loji,
peralatan termasuk peranca &
acuan, perubahan masa / tempoh
penyiapan dan lain- lain.)
(d) Kontraktor telah mengeluarkan

perbelanjaan tambahan atau
menanggung kerugian secara
langsung yang tidak akan diganti
bayar melalui pembayaran yang
dibuat di bawah mana-mana
peruntukan lain dalam kontrak.
2.0 PENILAIAN TUNTUTAN KONTRAKTOR
2.1 Tentukan samaada kontraktor telah

mematuhi semua prosedur dan syarat-
syarat kontrak yang melayakkan
tuntutannya dipertimbangkan ;
(a) Kontraktor telah memberi notis yang

jelas (menyatakan perkara yang
dituntut berserta dengan anggaran
tentang amaun yang dituntut)
menyatakan niatnya untuk membuat
tuntutan dan diberi kepada PP dalam
tempoh yang disyaratkan dalam
kontrak, dan
b) Kontraktor telah mengemukakan

butiran terperinci, lengkap dengan
dokumen sokongan bagi
membuktikan tuntutannya dalam
tempoh yang disyaratkan dalam
kontrak.


(Samb.) (Samb.)
2.2 Dapatkan maklumat tambahan yang

berkenaan yang telah disahkan oleh
PP / Wakil PP seperti;
 Surat-menyurat yang berkaitan

dan/atau
 Minit mesyuarat, buku harian tapak
dan/atau
 Sijil-sijil dalam kontrak yang
berkaitan seperti lanjutan masa dll.,
dan
 Dokumen Kontrak
2.3 Syor sama ada memperaku / menolak

tuntutan dari kontraktor disediakan
berdasarkan;
(a) Fakta-fakta kes mengikut rekod
seperti item 2.2 di atas dan
mengikut pengetahuan PP dalam
mengawasi projek, dan
(b) Peruntukan-peruntukan yang

berkaitan dalam kontrak.
2.4 Tentukan kuantum bayaran (jika didapati

wajar dibayar) kepada kontraktor ;
(a) Perkara yang diambilkira sebagai

item yang layak dituntut adalah
teratur.
(b) Tempoh yang layak diambilkira (bagi

tuntutan yang berkaitan dengan
tempoh masa) oleh kontraktor
adalah teratur.
(c) Dokumen-dokumen yang

menyokong tuntutan serta bukti-
bukti kerugian yang ditanggung dan
perbelanjaan tambahan sebenar
yang telah dikeluarkan oleh
kontraktor adalah teratur. (Dokumen
hendaklah yang asal atau diakui sah
oleh PP / Wakil PP)


(Samb.) (Samb.)
2.4 Tentukan kuantum bayaran (samb.)

(Samb.) (Contoh dokumen sokongan –
Penyata gaji pekerja, bil-bil dan
resit-resit bayaran, perkiraan yang
disahkan oleh Profesional yang
berdaftar dll.)
(d) Perkiraan terperinci mengenai

amaun gantirugi yang layak dibayar
adalah teratur.
2.5 Format Laporan PP disediakan mengikut

garispanduan dalam Peraturan Mengenai
Arahan Perubahan Harga Bagi Kontrak
Kerja.
2.6 Laporan PP yang lengkap dikemukakan

kepada PP untuk persetujuan.

* Jika berkenaan

DID MANUAL
VOLUME 10
CHAPTER 16
DETERMINATION
Chapter 16 – DETERMINATION
Table of Contents

16.1 INTRODUCTION.........................................................................................................16-3
16.2 GENERALLY ...............................................................................................................16-3
16.3 PROCEDURES ............................................................................................................16-3
16.3.1 Determination................................................................................................16-3
16.3.2 Settlement Of The Final Account .....................................................................16-7
16.4 NOTICES ...................................................................................................................16-8
16.4.1 Notice for Intention to Notice Determine the Contractor’s Employment..............16-8
16.4.2 Notice for Determination ................................................................................16-8
16.5 FINAL ACCOUNT ........................................................................................................16-9
16.6 RE-TENDER ...............................................................................................................16-9
16.8 REFERENCES .............................................................................................................16-9

List of Flowcharts
Flowchart 16.1 Determination of the Employment of the Contractor 16-1

Flowchart 16.2 Settlement of Final Account 16-2

1 1. Establish the ground(s) for SOR

the determination
2 2. Issue 1st warning letter SOR
3. Contractor continues
No default or repeats the
3
default?
Yes
4. Issue 2nd warning letter SOR
4
5. Prepare report for SOR Refer SPP

5 determination, and submit 5/2006
to JKPPS for approval
6. SO to issue ‘Notis SOR

6 Kemungkiran Kontraktor’
7. Contractor continues
No default or repeats the
7 default?
Yes
8. Officer Named in Contract SOR/ Officer
to issue Notice of Named in
8
Determination Contract
9. Forfeit Performance Bond SOR/CAO

9 or Advance Payment Bond
10. Issue stop work order and SOR Ref: Sample of

10 evaluate the works done Sch. of
Activities prior
to Tender
11
11. Re-tendering exercise CAO See Chapter
End 6–8
12 12. Settlement of Final See Flowchart

Account 16.2
Note: For bankruptcy or insolvency, SOR may go straight to step 8 – 12
Flowchart 16.1 – Determination of the Employment of the Contractor

Description Action By Reference

Flowchart
1 1. Establish the completion CAO

cost.
2 2. Prepare and issue Final CAO

Account
No Yes
3. Amount due to CAO
3 Government?
4. Payment to Contractor CAO

4
5 5. Issue claim to Contractor SOR

by AR Register
No
6 6. Contractor pays?
Yes
No 7. Issue 1st Reminder (within SOR

7
2 weeks)
No 8. Contractor fails to pay?

8
Yes
9. Issue 2nd Reminder (within SOR
9 2 weeks)
No 10. Contractor fails to pay?

10
Yes
11 11. Issue 3rd Reminder (within SOR

End
2 weeks)
12 12. Refer matter to the Legal BUBK

Adviser at Ministry level /
A.G.’s Chamber
Flowchart 16.2 – Settlement of Final Account

16 DETERMINATION
16.1 INTRODUCTION
 To outline the overall procedures on determination of the Contractor.
16.2 GENERALLY
The determination and the subsequent procedures shall be done in accordance with the procedures
set out in the Contract.
Generally, the whole process can be divided into 2 distinct steps:
(i) Determination of the employment of the contractor.
(ii) Settlement of the Final Account of the original contract.
16.3 PROCEDURES
16.3.1 Determination
Action By
/ Reference
(Please refer to Flowchart 16.1 – Determination of the
Employment of the Contractor)
Generally For information
The progress of and works programme submitted by the

Contractor may reveal the Contractor’s capability or
incapability to complete the works on time.
The Conditions of Contract provides the rights of the

Government to determine the employment of Contractor for
defaults.

Action By
/ Reference
1 Establish the Grounds for Determination Action By:

SOR
Establish / Verify the grounds for the determination:
(a) The Contractor fails to submit Performance Bond or

Insurance Policies
(b) The Contractor fails to expedite the works after

receiving Letter of Acceptance
(c) Any of the ground stated in Conditions of Contract,

such as
 Suspending the carrying out of works without

reasonable cause
 Not carrying out the works diligently
 Failing to execute the works in accordance with the
contract or neglecting to carrying out his obligation
under the Contract
 Subletting the whole or any part of the works without
prior consent of S.O./PD
 Contractor went to insolvency, winding up or
liquidation
Insolvency of Contractor
If the Contractor becomes insolvent or bankrupt, issue the

Notice of Determination; no warning letter(s) is required.
2 Prepare 1st Warning Letter Action By:

SOR
Upon established the ground for determination, the
intention for determination via a warning letter is issued
with a reason to stop the employment. A time frame,
normally fourteen (14) days is given to Contractor for
reaction.
Refer to Sample of Warning Letter.
3&4 Contractor Continues/ Repeats Defaults? Action By:

Prepare 2nd Warning Letter SOR
If no compliance made by the Contractor, the 2nd warning

shall be issued.
If the Contractor repeats and fail to comply the reminder

(within fourteen days), the proposal /report shall be made
by PM/ CA to Authorised Officer to stop the employment.

Action By
/ Reference
5&6 Prepare Report and Issue the ‘Notis Kemungkiran Action By:
Kontraktor’ SOR
(a) Prepare a report on the determination, and submit to

Jawatan Kuasa Penyelamat Projek Sakit (JKPPS) for
approval.
Other than the recommendation, the report shall

include the short listed tenderers for execution the
defect works and the recommend the appropriate
procurement option.
If the report is complete and deemed satisfactory by

the Authorised Officer, the SO shall issue a notice of
non-performance (Notis Kemungkiran Kontraktor). A
period of fourteen days is given to Contractor to take
the necessary action.
(b) The SO shall report to Authorised Officer on the action

(or inaction) of the Contractor prior the issuance of
Notice of Determination.
Refer to Sample of ‘Notis Kemungkiran Kontraktor’.
** if the Contractor is in default under Fasal 51(b)

Syarat- Syarat Kontrak (Bankruptcy or insolvency), the SO
may submit the report without issuing any warning letters
or default notice.
7&8 Contractor Continues/ Repeats Defaults? Action By:

Issuance of Determination Notice SOR/ Officer Named in
Contract
If the Contractor does not comply with the warning letter or
default notice, or if the Contractor repeats and fail to
comply the reminder (within fourteen days), issue the
Determination Notice.
Refer Section 16.6.2 - Notice for Determination
9 Forfeit Performance Bond or Advance Payment Bond Action By:

SOR / CAO
To forfeit Performance Bond and/or Advance Payment Bond
of the Contractor immediately after issuance of Notice of
Determination.
Refer to Sample of Letter for Calling off Performance Bond

Action By
/ Reference
10 Issuance of Stop Work Order and Evaluate Works Done Action By:
SOR
If the Contractor fails to evacuate from the site, issue a
Stop Work Order.
Refer: Sample of Sch.
Evaluate the works done, including computing the value of Of Activities prior to
works done (for finalisation of accounts purposes) and Tender
schedule of defects and out-standing works.
11 Re- tendering Exercise Action By:

CAO
Refer to Chapter 6 to 8.
12 Settlement of Final Account
Refer to Flowchart and Procedures of Settlement of Final

Account.

16.3.2 Settlement Of The Final Account
Action By
/ Reference
(Please refer to Flowchart 16.2 – Settlement of Final
Account)
1 Establish Completion Cost Action By:
CAO
Prepare the estimate on the Completion Cost (comprising of
loss by Government and new contract sum by new
contractor).
2, 3 & 4 Prepare and Issue Settlement of Final Account Action By:
CAO
Prepare the Settlement of Final Account for the new
Contractor. Costs comprise of:
(a) Interim Payments

(b) Advance Payment
(c) Payments to subcontractors and suppliers
(d) New Contract Sum
(e) Cost for re- tender
(f) Loss to Government
(g) On- Cost Charge
(h) Finalised Contract Sum
Establish the Final Amount due to Contractor or

Government, as the case may be.
Ensure that all deductions are incorporated into the Final

Account. Include the amounts of the forfeited Performance
Bond.
Pay the Contractor if any final amount is due to him.

5 Issuance of Claim to Contractor (By A.R. Register) Action By:
SOR
If under the Final Account an amount is due to Government,
send the Final Account and claim for payment (‘claim’) to
the Contractor by A.R. Registered post as soon as is Refer: SP JPS Bil
practicable, preferably within 9 months after determination. 1/1990
6&7 Issuance of 1st Reminder Action By:
SOR
Issue 1st reminder if Contractor fails to pay, or no action is
taken by Contractor, within 14 days of issuance of claim.
8&9 Issuance of 2nd Reminder Action By:

SOR
Issue 2nd reminder if Contractor fails to pay, or no action is
taken by Contractor, within 14 days after the issuance of 1st
reminder.

Action By
/ Reference
10 & 11 Issuance of 3rd Reminder Action by:
SOR
Issue 3rd reminder if Contractor fails to pay, or no action is
taken by Contractor, within 14 days after the issuance of 2nd
reminder.
12 Refer to Legal Adviser at Ministry level/ A.G.’s Chamber Action by:
BUBK
Seeks advice by Legal Advisor (of Ministry or State) if still no
action taken by Contractor.
16.4 NOTICES
16.4.1 Notice for Intention to Notice Determine the Contractor’s Employment
 To state clearly the contract no, job title, contract sum contract period, date of possession,
completion date and extended completion date, if any.
 To state clearly the reason of determination by the Contractor’s default.
 To highlight the percentage of works done and aims for completion according to original or
revised works programme.
 To state the date and duration by the Contractor suspended the works.
 To highlight whether the contractor consistently repeats the default (not for 1st warning) together
with all references for previous notices such as serials meetings, date, officers in charged, etc.
 To state the assistance given to contractor in form of materials procurements and granted
extension of time
 To state the date or last extended date for completion together with method statements works
programme.
 The notice must be copied to all relevant parties including PKK or bank/ insurance company.
16.4.2 Notice for Determination
 To state clearly the contract no, job title, contract sum contract period, date of possession,
completion date and extended completion date, if any.
 To state the reference and date of Notice for Intention the Determine the Contractor’s
Employment
 To state whether the Contractor is continuing the defaults
 If the Contractor replied a notice, to highlight to them the reasons are not accepted.
 The notice must be copied to all relevant parties including the registrar of the Contractor and
bank/ insurance company.

16.5 FINAL ACCOUNT
 To include the Completion Cost which comprises the advance payment, interim payments,
payments to sub-contractors, suppliers, new contract price, re- tender cost, loss to Government
and charge on cost.
 To include the Revised Contract Sum which includes deduction for loss, damages and expense.
16.6 RE-TENDER
 Evaluate the executed works and check the balance of works to avoid disputes for BQ contracts.
 To allow credit for plants, tools, equipment and unfixed materials left on site for use of new
contractor.
 Any other above this to refer to Chapter 6 to 8.
Please refer to Volume 10A for the standard reference or sample documents for the procedures or
 Sample of Warning Letter (‘Notis Kemungkiran Kontraktor’)
 Sample of Notice for Determination (‘Penamatan Pengambilan Kerja Kontraktor’)
 Sample of Schedule Activities (Bar Charts for Preparation of Tender Invitation)
 Sample of Settlement of Final Account Upon Determination
 Sample of Letter for Calling off Performance Bond and Advance Payment Bond
 Sample of Calculation of Loss by Government
16.8 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars for the latest procedures and
processes in respect of determination of the employment of the contractor.
Treasury Circular
[1] SPP 5/2006: Peraturan Pelantikan Kontraktor Penyiap bagi Projek Sakit
DID Circulars
[1] SPJPS. Bil. 1/1990: Perakuan Penamatan Pengambilan Kerja Kontraktor Berasaskan Borang
Kontrak 203 & 203A


DID MANUAL
VOLUME 10
CHAPTER 17
COMPLETION
Chapter 17 – COMPLETION
Table of Contents

17.1 INTRODUCTION ............................................................................................................17-2
17.2 PROCEDURES................................................................................................................17-2
17.3 COMPLETION ................................................................................................................17-3
17.4 PRACTICAL COMPLETION ..............................................................................................17-3
17.5 SECTIONAL COMPLETION..............................................................................................17-4
17.6 PARTIAL OCCUPATION ..................................................................................................17-4
17.7 HANDING OVER ............................................................................................................17-4
17.8 SUBMISSION AND REQUIREMENTS NECESSARY FOR COMPLETION .................................17-5
APPENDIX 17A Checklist for the Preparation of Certificate of Practical Completion

(Senarai Semakan Penyediaan Perakuan Siap Kerja) ………………………………….. 17A-1

List of Flowcharts
Flowchart 17.1 Completion 17-1

1 1. Receipt of notice from -

Contractor
2. Final Inspection. PT
2
3. Works (or Section) is -

practically completed for
No
3 all purposes of the
Contract?
Yes
4. Issue instruction to rectify SOR

4
defective works, if any
5. Issue Certificate of SOR

Practical Completion and
5 Hand over the Works to
Client-Agency
6. Release of 50% of SOR/CAO Refer Chapter

6 Performance Bond 10 - Payment
Flowchart 17.1 – Completion

17 COMPLETION
17.1 INTRODUCTION
 An overview of the completion provisions and procedure for works contracts

 The standard forms of contract use for DID projects
17.2 PROCEDURES
Please refer to Flowchart 17.1 – Completion.
Action By
/ Reference
1 Receipt of notice from Contractor
Contractor issue notice that the Works are all practically

completed and ready for Final Inspection
2 Final Inspection Action by:
PT
Carry out Final Inspection especially mechanical and electrical
installation works to determine Works are practically completed
3 Works (or Section) is practically completed for all purposes of
the Contract
Practically completed meaning, the Contractor has performed

and completed all the necessary Works specified in the
Contract and the patent defect existing are minor
4 Issue Instruction to rectify defective works; if any Action by:
SOR
If necessary; issue instruction to rectify defective works that
can effect the issuance of Certificate of Practical Completion
5 Issue Certificate of Practical Completion and Hand over the Action by:
Works to Client-Agency SOR
If two (2) is acceptable, than issue Certificate of Practical

Completion and thus the Works are handed over to the Client-
Agency.

Action By
/ Reference
6 Release of 50% of Performance Bond Action by:
SOR/CAO
When CPC is issued,
(a) Release 50% of the Performance Bond; or

(b) Release 50% of the Performance Guarantee Sum,
whichever is applicable.
Where the Contractor submitted Performance Bond, then

release the 50% only after the Contractor has submitted a new
bank/insurance guarantee for the remaining 50%.
17.3 COMPLETION
When in the opinion of the S.O that the Works are practically completed, meaning that the
Contractor has performed and completed all the necessary Works specified in the Contract and the
patent defects existing in such Works are ‘minor’ than the S.O shall issue Certificate of Practical
Completion.
The issuance of Certificate of Practical Completion indicates the start of the Defects Liability Period.
17.4 PRACTICAL COMPLETION
In determining whether the Works has reached practical completion, the S.O must consider the
following questions:
a) Has the Works been completed in accordance with the Contract?

b) Is defective work substantial?
c) Will the making good of defects cause undue inconvenience to the occupants or users?
The Contractor should notify the SO/PT when he considers the Works is Practically Completed, to
such a stage that it will perform the functions for which it is constructed, or may be occupied and
used.
A joint inspection must be held where the Contractor, SOR/PD, PM or other involved should attend.
Where the Works has been completed to a stage as meets the criteria specified above, the Certificate
of Practical Completion may be issued. Where the criteria specified above are not met, the
outstanding and defective works must be identified and a list if the same prepared and forwarded for
the action of the Contractor. This process must be repeated until the criteria specified are met.
The original copy of the Certificate of Practical Completion must be issued to the Contractor. Copies
of the same must also be distributed to the parties listed in the Certificate and in addition to all
others involves in the Contract.
The Defects Liability Period commences from the date of practical completion stated in the Certificate
of Practical Completion. Notwithstanding the issue of Certificate of Practical Completion, all defective
works have to be made good by the Contractor when the S.O issue instruction; if any. A reasonable
time must also be specified for the Contractor to execute and/or make good the same.

When CPC is issued; then 50% of the Performance Bond can be released to the Contractor and in
turn Contractor to issue new Performance Bond guaranteeing the remaining sums. If Performance
Guarantee Sum is used, then 50% of the sum may be released to the Contractor upon issuance of
the CPC.
17.5 SECTIONAL COMPLETION
The Conditions of Contract contains provisions, which allows the Government to require the Works to
be completed in sections or parts. Where this is required, the sections or parts must be identified and
the measure of Liquidated and Ascertained Damages for each must be specified in the tender and
contract documents.
Where sectional completion of the Works is specified, the provision of the Contract as regards the
Certificate of Practical Completion, Delay and Extension of Time, Liquidated and Ascertained
Damages and the Defects of Liability Period apply as if each section or part is the subject of a
separate and distinct contract between the Government and the Contractor.
17.6 PARTIAL OCCUPATION
Prior to the practical completion of the whole Works, the Government may but with the consent of
Contractor, take possession of and occupy any part of the completed Works.
Where any part of the Works is taken possession of and occupied by the Government prior to
completion of the whole of the Works, the following apply:-
a) A Certificate of Partial Occupation must be issued within seven (7) days of the taking
possession and occupation of the part of the Works. The Certificate must state the
estimated value of the part of the Works taken possession of and occupied.
b) The Defects Liability Period for the part of the Works taken possession of and occupied
commences on the date the Government takes possession of and occupies the same.
c) The Liquidated and Ascertained Damages specified in the Contract is reduced in the
proportions which the value of the part taken possession of and occupied bears to the
Contract Sum.
d) The provisions of the Contract as regards of insurance and release of the Performance
Bond are not affected.
17.7 HANDING OVER
Upon the issue of the Certificate of Practical Completion, the Government takes over the Works and
the Contractor cease to be responsible for loss and/or damage to the same other than loss and/or
damage caused by or arising from defective work.
For the purpose of handing over the Works to the Government, a joint inspection of the Works must
be held and the keys to the Works handed over.
The Government must also be advised of the operation and maintenance requirements of the Works
including those relating to mechanical and electrical installations.

17.8 SUBMISSION AND REQUIREMENTS NECESSARY FOR COMPLETION
Notes : Please refer to the DID Manual Volume 11 - Construction Management, Chapter 17
 JKR 203S : Certificate of Practical Completion

 JKR 203W : Certificate of Partial Occupation
 Perakuan Serahan Kerja Siap
 Perakuan Serahan Kerja Siap Berbahagian


DID MANUAL
Volume 10
Chapter 17
– Completion
APPENDIX 17A

Certificate of Practical Completion
[Form JKR 203S]

Perakuan Siap Kerja)

APPENDIX 17A CHECKLIST FOR THE PREPARATION OF CERTIFICATE OF

PRACTICAL COMPLETION (SENARAI SEMAKAN PENYEDIAAN
PERAKUAN SIAP KERJA)
TAJUK
PROJEK
Tarikh Tarikh
Untuk Tarikh Siap
Tindakan Semakan
Kepada Oleh
PMK 1
PMK 2
AK*
1. Borang Perakuan Siap Kerja Tandakan ()
selepas
Borang yang digunakan ialah borang
semakan
JKR203S yang terkini.
Muka Depan
2. KERAJAAN – bermaksud 'KERAJAAN
MALAYSIA' bagi projek Persekutuan atau
'KERAJAAN ............ ’ bagi projek Negeri.
3. Rujukan - masukkan no. fail projek

Pegawai Penguasa.
4. Pejabat - masukkan Pejabat Pegawai

Penguasa atau Wakil Pegawai Penguasa.
5. Tarikh - iaitu tarikh ditandatangani oleh

Pegawai Penguasa atau Wakil PP.
6. Kepada - Nama dan alamat Kontraktor

hendaklah sama seperti dalam dokumen
kontrak.
7. Kelas - mengikut kelas lesen pendaftaran

kontraktor dalam dokumen kontrak.
8. Kontrak No. - hendaklah sama dengan

yang terdapat dalam dokumen kontrak.
9. Kontrak Untuk - Nama projek sama

seperti di dalam dokumen kontrak.
10. Pastikan samada kerja tersebut siap

sebahagian atau keseluruhan dan
potong yang tidak berkenaan.
11. Siap pada - Nyatakan tarikh siap sebenar.


12. Ambil milik pada - pastikan sehari selepas
tarikh siap.
13. Tempoh Tanggungan Kecacatan pada -

sama dengan tarikh siap kerja sehingga
tamat tempoh tanggung kecacatan
seperti yang dinyatakan dalam dokumen
kontrak.
14. Tempoh berakhir – 6/12/24* bulan dari

tarikh di atas. *Yang mana berkenaan,
mengikut tempoh yang tercatat di dalam
Lampiran Kepada Syarat-syarat Kontrak.
15. Tandatangan Pegawai Penguasa / Wakil

PP projek berkenaan mengikut kontrak.
16. Nama Penuh dan Jawatan - Pegawai

Penguasa / Wakil PP yang berkenaan.

* Jika berkenaan

DID MANUAL
VOLUME 10
CHAPTER 18
DEFECTS MANAGEMENT
Chapter 18 – DEFECTS MANAGEMENT
Table of Contents
Table of Contents ....................................................................................................................... 18-i

List of Flowcharts ...................................................................................................................... 18-ii
18.1 INTRODUCTION ..............................................................................................................18-3
18.2 PROCEDURES..................................................................................................................18-3
18.2.1 Defects Management During Defect Liability Period............................................18-3
18.2.2 Defects Management at End of Defect Liability Period ........................................18-4
18.3 REFERENCE DOCUMENTS ................................................................................................18-5
18.4 REFERENCES...................................................................................................................18-5
Revision 0: March 2009 18-i

List of Flowcharts
Flowchart 18.1 Defects Management During Defect Liability Period 18-1

Flowchart 18.2 Defects Management at End of Defect Liability Period 18-2
18-ii Revision 0: March 2009

1. Receive report from SOR

1
end-user and
establish defects
2 2. Issue SO’s Instruction SOR/SO

to rectify defects
No 3. Contractor complies
3 to instruction?
Yes
4 4. If Contractor fails to SOR

comply, appoint third
party to rectify
defective works
5. Deduct from money SOR/ CAO

5
due to Contractor, or
from Performance
Bond / Performance
Guarantee Sum
End
Flowchart 18.1 – Defects Management During Defect Liability Period

1 1. Joint inspection towards end SOR

of DLP
No Yes 2. Further defects?

2
3 3. Identify further defects and SOR

issue Schedule of Defects
(within 14 days of expiry of
DLP)
4. Instruct Contractor to make SOR

4 good (make good not later
than 3 months from issuance
of Schedule of Defects)
5 5. Joint re-inspection (on expiry SOR

of time given to make good
or upon expiry of 3 months
whichever is earlier)
Yes
6 6. Further defects? -
No
7 7. Issue Certificate of Making SOR

Good Defects
8 8. Issue of Final SOR Refer Chapter

Certificate 19
Flowchart 18.2 – Defects Management at End of Defect Liability Period

18 DEFECTS MANAGEMENT
18.1 INTRODUCTION
 the overall procedures in management of defects throughout and end of the Defects Liability
Period until the issuance of the Final Certificate
18.2 PROCEDURES
18.2.1 Defects Management During Defect Liability Period
Please refer to Flowchart 18.1 – Defects Management During Defect Liability Period.
Action By
/ Reference
1 Receive Report and Establish Defects Action By:
SOR
End-user (e.g. Client-agency, DID officers or members of the
public using the Works) to report immediately to SOR, and SOR
shall determine if defects had occurred.
2 SO’s Instruction to Rectify Defects Action By:

SOR
SOR shall immediately issue instruction to the Contractor to
rectify the defects, with a fair and reasonable time frame to
complete the making good of defects.
SOR may issue instructions to rectify defects as many times as

necessary during the Defects Liability Period.
3&4 Contractor complies Instruction; Action By:
Appoint Third Party to Rectify Defects SOR
If the Contractor refuses or fails to make good the defects

within the time stipulated in the SO Instruction or within
reasonable time if none is stated, then the SO may appoint
third party to rectify the defective works.
5 Deduct Monies Due to Contractor Action By:
SOR/ CAO
If third party executed the defect works, the cost incurred in
making good defects due to the failure of the contractor must
be recovered from Contractor:
 From monies due or payable to Contractor or

 As deduction of Performance Bond or Performance
Guarantee Sum (Wang Jaminan Pelaksanaan).

18.2.2 Defects Management at End of Defect Liability Period
Please refer to Flowchart 18.2 – Defects Management at End of Defect Liability Period.

/ Reference
1 Joint Inspection towards end of Defects Liability Period Action By:
SOR
To carry out joint inspection together with SOR, Client
Department/ Ministry, Contractor and other parties involved.
2&3 Identify any Further Defects, Issuance of Schedule of Defects Action By:
SOR
If there are defects at the end of Defects Liability Period,
prepare the Schedule of Defects and issue it to the Contractor
within 14 days after the expiry of DLP.
4 Instruction to Rectify the Defects Action By:
SOR
Issue the instruction to rectify all defect works completely
within a reasonable time.
Ensure the duration given to the contractor must not exceed 3

months from the date of issuance the Schedule of Defects.
5 Joint Re-Inspection Action By:
SOR
To carry out the joint re-inspection with the SOR and
representatives from Client Department/ Ministry, Contractor
and other parties involved on the date of the expiry of
rectification period given to Contractor or upon the expiry of
period of 3 months, whichever is the earlier.
6&7 Issuance of Certificate of Completion of Making Good Defects Action by:
(CMGD) SOR
Issue the certificate of completion of making good defects if

there are no further defects.
Ensure the date in such certificate is the date of Contractor

completed the rectification of defective works.
Ensure the copies to be distributed to:

 Contractor (original)
 Other parties named in certificate (copies)
Return the Performance Bond / Performance Guarantee Sum
to the Contractor.
8 Issue Final Certificate Action by:

Prepare the Final Certificate upon the issuance of CMGD. SOR/CAO
Refer to Chapter 19
– Final Account and
Final Certificate.

 Form JKR 203Y (Pin.2/2001) : Perakuan Siap Memperbaiki Kecacatan
18.4 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars defects management.
Treasury Circular
 Nil
[1] AP 200.4 & 200.5: Tempoh Tanggungan Kecacatan
DID Circulars
[1] SPJPS. Bil. 1/2003: Perlantikan Pegawai Penguasa (P.P.), Perwakilan Kuasa Pegawai Penguasa
(Wakil P.P.) Dan Pegawai-pegawai Yang Diberi Kuasa (PYDK) Dalam Urusan Pentadbiran Kontrak.


DID MANUAL
VOLUME 10
CHAPTER 19
FINAL ACCOUNT AND

FINAL CERTIFICATE
Chapter 19 – FINAL ACCOUNT AND FINAL CERTIFICATE
Table of Contents

19.1 INTRODUCTION.........................................................................................................19-2
19.2 PROCEDURES ............................................................................................................19-2
19.4 REFERENCES .............................................................................................................19-6
APPENDIX 19A Checklist for the Preparation of Final Account

(Senarai Semakan Penyediaan Perakuan Akaun Muktamad) ……………………... 19A-1

List of Flowcharts
Flowchart 19.1 Final Account and Final Certificate 19-1

1. Certificate of Practical -
1 Completion
2. Prepare the Statement of CAO Refer Checklist

Final Account and Final for Preparation
Certificate of Final
 Ensure that the Account and
necessary Final
2 adjustments to the Certificate;
Contract Sum are & the current
approved form JKR66A
Fails
3. Quality Audit BUBK Refer Ch. 10,

3 Flowchart 10-2
Passes
4. Approval of Statement of SO / AP
4 Final Account and Final
Certificate
5. Issue Statement of Final CAO

Account and Final
5
Certificate to Contractor
and respective parties.
6 6. Forward documents to FD CAO

for payment
7 7. Prepare Completion SOR Volume 11 –

Report, etc Construction
Management
Flowchart 19.1 – Final Account and Final Certificate

19 FINAL ACCOUNT AND FINAL CERTIFICATE
19.1 INTRODUCTION
 The guidelines on the preparation of the final accounts, and the issuance of the final certificate.
19.2 PROCEDURES
Please refer to Flowchart 19.1 – Final Account and Final Certificate.
Action By
/ Reference
1 Generally For information
The Final Account must be prepared as soon as is practicable,
 after Practical Completion; and
 the Contractor has fulfilled his obligations under the

Contract, which includes the making good of defects
The Contractor is required to submit, not later than 3 months

after practical completion, the full particulars of all claims,
together with such supporting documents (including
documents relating to accounts of Nominated Sub-Contractor
and Nominated Supplier, if any) as may be necessary for the
preparation of the Final Accounts.
If the Contractor fails or refuses to submit the information

within the time, the Final Accounts may be prepared based on
the information at hand so as to enable the Final Accounts and
Final Certificate to be completed within 3 months after the end
of defects liability period or issuance of the Certificate of
Completion of Making Good Defects, whichever is the later.
Final Accounts and Final Certificate following Determination
Where the employment of the Contractor was terminated, the

Final Accounts and Final Certificate shall be prepared as soon
as practicable after the new contractor is appointed and the
assessment of the costs and/or loss or damage to the
Government/DID is completed. A modified Form JKR66A is
used (Final Account After Determination of Employment of the
Contractor / Perakuan Muktamad Kontrak Yang Mana
Ditamatkan Pengambilan Kerja Kontraktor).
For procedures following determination, please refer to

Chapter 16.

Action By
/ Reference
2 Preparation of the Statement of Final Account and Final Action by: SOR/CAO
Certificate
(a) Adjustment of Contract Sum
Before preparing the Final Account and Final Certificate (form

JKR66A), ensure that all adjustments to the Contract Sum are
approved and carried out, i.e. for,
o Adjustment for Prime Cost and Provisional Sums Refer to Chapter

o Re-measurement of provisional quantities 12, and the
o Variations to the Contract Checklist for
o Assessments of claims by the Contractor. Adjustment of
Contract Sum
Ensure that all Variation Orders (APK) and Adjustment of
Contract Sum (PHK) have been issued and are correct.
Ensure that the SO and contractor sign the JKR-APK and JKR-
PHK, as the case may be.
(b) Prepare Form JKR66A Action by: SOR/CAO
Use the current Form JKR 66A.
Ensure that the form is duly filled in with the correct contract Refer to Checklist
data, and that the sums, adjustments and computation are for Preparation of
correct. Final Account
(Penyedian
The Final Account must take into account the following: Perakuan Akaun
Muktamad)
 All adjustments to the Contract Sum;
 Payments previously paid to the Contractor, Nominated

Sub-Contractor and Suppliers, and assignees; and
 Permitted deductions under the Contract, such as costs

incurred in connection with employment of others to
execute such works to give effect to an S.O.’s instruction,
Liquidated Ascertain Damages (LAD), costs for making
good defects, etc.
 Recoupment of Advance Payment
 Deductions for direct payment by DID for dues or

contributions under the Employment Ordinance, the
Employee’s Social Security Act, the Employee’s Provident
Fund Ordinance and any other laws relevant to the
employment of workmen.
 The release of Performance Guarantee Sum (if any).

Action By
/ Reference
(c) Supporting Documents Action by: SOR/CAO
Attach the required supporting documents to the Final Account

and Final Certificate:
 Certificate of Practical Completion;
 Certificate of Non- Completion; if any
 Certificate of Completion of Making Good Defects;
 Certificate of Delay and Extension of Time, if any;
 Certificate of Adjustment of Contract Sum, if any;
 Certificate of Payment of Performance Guarantee Sum, if

any;
 Payment voucher(s); and
 Letter of release from the Department of Labour, or

Statutory Declaration (to the effect that workmen
employed have received all wages) made by the
Contractor**.
**The letter or statutory declaration must be submitted by the

Contractor before the final payment can be effected to the
Contractor.
(d) Check documents for completeness, and computation
Upon receipt of the Final Account and Final Certificate Action by: SOR/CAO
documents:

Refer to the Checklist for Preparation of Final Account Refer to Checklist
(Penyedian Perakuan Akaun Muktamad); for Preparation of
Final Account
 Complete and initial the Checklist for Preparation of Final (Penyedian
Account; Perakuan Akaun
Muktamad)
 The recommending officer shall sign the Form JKR66A; and
 Submit Form JKR66A, together with attached documents,

to the SO for signature

Action By
/ Reference
3 Quality Audit Action by:
CAO/
Forward the Statement of Final Account and Final Certificate BUBK
for checking (quality audit) by the relevant contract officer.
The quality auditor shall check that the documents are in order
and free of errors.
4 Approval of Final Account and Final Certificate Action by: CAO/SO
The Final Account and Final Certificate must be signed by the

S.O..
5 Issue Final Account and Final Certificate to Contractor Action by: CAO
The Final Account and Final Certificate must be forwarded to

Contractor and copies distributed to all parties involved in the
Contract (Accountant General).
It is not a contractual requirement that the Contractor must

sign and return a copy of the Final Account and Final
Certificate.
6 Forward documents to the Finance Division Action by: CAO / FD

the relevant Finance Division to effect payment.
7 Prepare Completion Report, etc For information
As final duties, the SOR/PT are to prepare and submit the
 Final (Completion) Report, and

 Contractor’s Performance Report (if necessary).
Please also refer to Volume 11 – Construction Management.

 JKR 66A : Final Account and Final Certificate
 Letter of Discharge of Bank / Finance Company / Insurance Guarantee
19.4 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars on Final Account and Final Payment.
Treasury Circular
 Nil
DID Circulars
[2] SP JPS Bil. 4/2008: Langkah-langkah Untuk Mempercepatkan Bayaran Interim (Tambahan
kepada Surat pekeliling SP JPS Bil. 2/2000)

DID MANUAL
Volume 10
Chapter 19
– Final Account and Final Certificate
APPENDIX 19A

Final Account
[Form JKR 66A]

Perakuan Akaun Muktamad)

APPENDIX 19A CHECKLIST FOR THE PREPARATION OF FINAL ACCOUNT

(SENARAI SEMAKAN PENYEDIAAN PERAKUAN AKAUN
MUKTAMAD)
TAJUK
PROJEK
Tarikh
Tarikh
Untuk Diterim
Nama Pegawai Diberi Tarikh Siap Semakan
Tindakan a
Kepada
Oleh
PMK 1
PMK 2
AK*
Tandakan ()
1. Pastikan perkara-perkara berikut selepas
dipatuhi sebelum penyediaan Perakuan semakan
Muktamad disiapkan.
(i) Semua Wang Kos Prima
(termasuk layanan dan
keuntungan) & Wang Peruntukan
Sementara telah diselaraskan.
(ii) Semua item untuk Kuantiti
Sementara telah dibuat
Pengukuran Semula.
(iii) Semua item/kerja yang tidak
dilaksanakan (omission) atau
dikurangkan daripada kontrak
telah disediakan APK
(iv) Semua APK & PHK telah
diselaraskan.
(v) Pelarasan pengiraan baki untuk
VOP telah dibuat.
(vi) Semua tuntutan antara
kontraktor dan Kerajaan telah
diselesaikan
2. Borang Perakuan Muktamad.
2.1 Pastikan borang JKR 66A yang terkini

digunakan.
Muka surat 1 / 4
2.2 KERAJAAN - bermaksud 'KERAJAAN
MALAYSIA' bagi projek Persekutuan
atau 'KERAJAAN ...............' bagi
projek Negeri.
2.3 Peruntukan pembangunan, kepala dan

pecahan kepala - hendaklah diisi.


Muka surat 1 / 4 (samb.)
2.4 Tajuk kerja, nama dan alamat
kontraktor hendaklah sama seperti di
2.5 No.Kontrak dan Jumlah Harga Asal

Kontrak hendaklah sama seperti di
2.6 Jumlah Bersih Tambahan / Potongan
(i) Ambil Jumlah Bersih dari Penyata

Pelarasan Harga Kontrak di muka
surat 4/4.
2.7 Harga Muktamad Kontrak adalah

Harga Kontrak setelah
ditambah/dipotong jumlah bersih APK
& PHK.
2.8 Perkara A - Butir-butir Jumlah

Potongan / Kurangan
(i) Perkara A.1 - pastikan semula
jumlah bayaran interim yang
terdahulu berasaskan baucer
bayaran.
(ii) Perkara A.2 - pastikan jumlah
semua bayaran Wang
Pendahuluan, jika ada yang
dibuat berasaskan baucer
bayaran (termasuk bayaran
Wang Pendahuluan kepada
NSC/NS).
(iii) Perkara A.3 - Jumlah Potongan
lain termasuk bayaran kepada
pihak ketiga, jika ada (sertakan
lampiran dan keterangan
potongan).
2.9 Bayaran Muktamad Dibawah Kontrak

adalah Harga Muktamad Kontrak
ditolak dengan perkara A.1, 2 dan 3.
2.10 Tandatangan Pegawai Pengesyor

hendaklah pegawai yang diberi kuasa
dan catitkan nama dan jawatan.


2.11 Perkara 'B'
(i) Pastikan amaun dalam perkataan
jumlah sebenar bayaran
Perakuan Muktamad.
(ii) Perkara B.1.(ii) - Pastikan
ketepatan bayaran balik kepada
Kontraktor Utama bagi pelepasan
Deposit Wang Jaminan
Pelaksanaan. (Jika berkenaan).
(iii) Perkara B.2 - Pastikan ketepatan
baki bayaran kepada
Subkontraktor/Penerima Bayaran
seperti di Lampiran A.
(iv) Perkara B.3 - Pastikan ketepatan
pengiraan kredit hasil bagi LAD
berasaskan perbezaan tarikh CPC
dengan tarikh Lanjutan Terakhir
dan kadar LAD di dalam kontrak.
(v) Perkara B.1.(i) – Pastikan
perkiraan nilai kerja dan amaun-
amaun lain bagi Kontraktor
Utama adalah perbezaan antara
Bayaran Muktamad dan jumlah
Perkara B.1.(ii), B.2 & B.3
2.12 Pastikan Jumlah Bayaran Muktamad

menyamai Bayaran Muktamad di
Bawah Kontrak.
2.13 Masukkan No. Fasal berkenaan dengan

Akuan Statutori mengikut syarat-syarat
kontrak berkenaan seperti 48(d) bagi
borang JKR 203/203A.
2.14 Tandatangan Pegawai Penguasa


Muka surat 2 / 4
2.15 Perkara ‘C’
Pastikan pihak kontraktor adalah orang

yang sama yang menandatangani
kontrak atau wakil lain yang diberi
kuasa. Tandatangan hendaklah
disaksikan dan dilengkapi dengan
tarikh serta maklumat diri yang
dikehendaki.
2.16 Sebelum Perakuan Akaun dan Bayaran

Muktamad diluluskan, pastikan perkara
di bawah ini telah dilaksanakan.
(a) Perakuan Siap Kerja telah

dikeluarkan.
(b) Surat Akuan Statutori atau Surat

Akuan Ketua Pengarah Buruh
telah diterima daripada kontraktor
dan disertakan bersama.


DID MANUAL
VOLUME 10
CHAPTER 20
PRIME COST & PROVISIONAL

SUMS
Chapter 20 – PRIME COST & PROVISIONAL SUMS
Table of Contents

20.1 INTRODUCTION.........................................................................................................20-3
20.2 PROCEDURES ............................................................................................................20-3
20.2.1 Administration of Prime Cost Sums..................................................................20-3
20.2.2 Administration of Provisional Sum .................................................................20-11
20.3 GUIDANCE NOTES ...................................................................................................20-16
20.3.1 Definitions ...................................................................................................20-16
20.3.2 Nomination of Sub-Contractors and Suppliers under P.C. Sum ........................20-16
20.3.3 Appointment of Sub-Contractors and Suppliers under Provisional Sums ...........20-16
20.3.4 Expending the P.C. Sums..............................................................................20-17
20.3.5 Expending the Provisional Sums....................................................................20-17
20.3.6 Procurement under P.C. Sum and Provisional Sum .........................................20-17
20.5 REFERENCES ...........................................................................................................20-19

List of Flowcharts
Flowchart 20.1 Administration of Prime Cost Sums 20-1

Flowchart 20.2 Administration of Provisional Sums 20-2

1. Prime Cost Sums or -

1 Provisional Sums are
included in the Contract
Sum
No
2 2. Is it Prime Cost Sum? -
Yes
A A. Administration of - Refer
Provisional Sums Flowchart
20.2
3
3. Prepare Tender PT/PO
Documents
4
4 Invitation and Receipt of PT/PO
Tender
5
5. Tender Evaluation and PT/PO
Nomination / Acceptance
6
6. Sub-Contract PT/CAO
Documentation
7 7. Sub-Contract PT/CAO
Administration
 Commencement
 Direct Payment
 SO’s consent
8
8. Completion -
Flowchart 20.1 – Administration of Prime Cost Sums

A A Provisional Sum is - Refer

included in the Contract Flowchart
Sum 20.1
1 1. Prepare cost estimates of CAO/

works under Provisional Ir/Sr
Sum.
No 2. Is the estimates of works -

2 30% more than the
Provisional Sum?
Yes
Yes 3. Is the estimates of works -

3 50% more than the
Provisional Sum?
No
4. Obtain approval from CAO / Use
4 Division Director Division Director ‘Borang E’
5. Obtain approval from DG CAO/ Use

5
or Deputy DG DG /Deputy DG ‘Borang E’
No 6. Does the work require the -

6 involvement of the main
contractor?
Yes
7 7. Quotation exercise SOR
No 8. Is it specialist works? -
8
Yes
9. Tender or quotation SOR

9 exercise by Contractor
10 10. Issue SO instruction to SOR/ SO/

main contractor, and CAO
prepare valuation of works
11 11. Obtain approval (on costs) CAO Use

from Authorised Person /Authorised ‘Borang F’
Person
12. Appointment of sub-

12
contractor or supplier.
Flowchart 20.2 – Administration of Provisional Sums

20 PRIME COST & PROVISIONAL SUMS
20.1 INTRODUCTION
 The guidelines on expenditure of Prime Cost (P.C.) and Provisional Sums.

 The guidelines on the preparation of tender documents, contract documents and general
administration of nominated sub-contract and supply contracts.
Note: Refer to Section 20.3 for definitions and general overview on procurement of items under
Prime Cost Sums and Provisional Sums.
20.2 PROCEDURES
20.2.1 Administration of Prime Cost Sums

(Nominated Sub-Contractor and/or Nominated Supplier)
Action By
/ Reference
1&2 Prime Cost Sums For information
Please refer to Flowchart 20.1 – Administration of Prime Cost

Sums.
Where the Contract specifically permits the nomination of sub-

contractor to carry out works included under Prime Cost, or the
SO has elected that works under Provisional Sums shall be
executed by nominated sub-contractor or nominated supplier,
then the PT/PO shall carry out the tender exercise for
procurement of sub-contract works.
The Project Team must give due consideration to the overall

works programme, and ensure the timely nomination of sub-
contractor or supplier so as to avoid any delay to the works.
The procedures for preparation of tender documents,

invitation, receipt, evaluation and acceptance of tenders, sub-
contract documentation, payment, variation, delay and
extension of time, non-completion, determination, completion,
handing over and defects, and final accounts are similar to that
for the main contract, and reference should be made to
Chapters 6 to 19, inclusive.
Changes in points of detail are set out in this chapter.

Action By
/ Reference
3 Preparation of Tender Documents For information
The procedures for the preparation of tender documents and

tender table documents set out in Chapter 6 are generally
applicable to the preparation of tender documents and tender
table documents for a nominated sub-contract.
The sub-contract tender document shall follow the main

contract number, with the words ‘NSC’ and the sub-contract
works package number in parentheses appended at the end,
eg: JPS/IP/P/1/99(NSC 1).
(a) Generally, the TENDER DOCUMENT FOR WORK comprises

the documents in the following order: Action by: PT/PO
 Tender Notice
 Instructions to Tenderer
 Form of Tender (JKR 203N1)
 Conditions of Contract
(JKR 203N, including amendments and Special
Provisions)
 Relevant Particulars of the Main Contract
 Specification
 Summary of Tender and Schedule of Rates; or Bills of
Quantities
 Schedule of Technical Information
 List of Drawings
The sample contents page for the tender document is set out
in Volume 10A, Chapter 20.

Action By
/ Reference
3 Preparation of Tender Documents (Cont’d)

(Cont’d)
(b) Generally, the TENDER DOCUMENT FOR SUPPLY OF Action by: PT/PO
MATERIALS OR GOODS comprises the documents in the
following order:
 Tender Notice
 Form of Tender (JKR 203P 1)
(JKR 203P, including amendments and Special
Provisions)
 Specification
 Schedule of Prices
(c) Generally, the TENDER DOCUMENT FOR SUPPLY OF

MATERIALS OR GOODS comprises the documents in the Action by: PT/PO
following order:
 Tender Notice
Provisions)
 Specification
4 Invitation and Receipt of Tender Action by: PT/PO
The procedures for the invitation and receipt of tender set out
in Chapter 7 are generally applicable to the invitation and
receipt of tender for a nominated sub-contract.
Invite the Main Contractor to tender for the sub-contract works

if the Main Contractor is suitably qualified.

Action By
/ Reference
5 Tender Evaluation and Nomination / Acceptance Action by: PT/PO
(a) Tender Evaluation
The procedures for the tender evaluation and acceptance set

out in Chapter 8 are generally applicable to the tender
evaluation of a nominated sub-contract
In the evaluation of tender, the following percentage

preference are applied for specialist bumiputra contractors for
supplies and services:
Value of Work Preference Refer: SPP 4/1995

Weightage
Exceeding RM100,000 – RM500,000 10%
Exceed RM500,000 - 1.5 million 7%
Exceeding RM 1.5 million – RM 5 million 5%
Exceeding RM 5 million – RM 10 million 3%
Exceeding RM10 million – RM 15 million 2.5%
Exceeding RM15 million No preference
(b) Nomination & Acceptance

Action by: SOR/SO
Upon the approval of the Procurement Board,
 the SO shall issue the Letter of Nomination the

Contractor and instruct to accept the tender, or
 if the Contractor’s tender is accepted, the S.O. shall

issue the Letter of Acceptance to the Contractor.

Action By
/ Reference
5 Tender Evaluation and Nomination / Acceptance (Cont’d)

(Cont’d)
(b) Nomination & Acceptance (Cont’d) Action by: SOR/SO


(i) Letter of Nomination
Use the current form for Letter of Nomination:
 for nomination of sub-contractor: Form JKR 203N3
 for nomination of supplier: Form 203P3
(ii) Letter of Acceptance
 Use the current form for Letter of Acceptance of Main

Contractor’s Tender for work or Supply of Materials or
Goods Under Prime Cost Sum, where the Main Contractor
shall carry out works allocated under Prime Cost or
Provisional Sums.
Use the current and appropriate form for the nomination,

notification and/or acceptance, as the case may be.
6 Sub-Contract Documentation Action by: PT/CAO
The procedures for the preparation of contract document set

out in Chapter 9 are generally applicable for the preparation of
the sub-contract documents.
The sample contents page for the contract document is set out

Action By
/ Reference
7 Sub-Contract Administration
(a) Generally For information
Generally, the Contractor is fully responsible for the acts of the

Sub-Contractor/Supplier.
With the exception of payment matters, the Contractor is also

responsible for the day-to-day administration of the sub-
contract / supply contract, including matters (where applicable)
relating to
 Variations
 Delays and Extension of Time
 Non-Completion
 Loss and Expense
 Determination
The written consent of the SO is required before the Contractor

may agree to, or grant, and additional time to the sub-
contractor, or to determine the employment of the sub-
contractor / supplier, as the case may be.
(b) Direct Payment Action by: PT/ CAO/

Finance Division
Direct payment to nominated sub-contractors and suppliers are
permitted under the terms of the contract and sub-contract,
subject to the following procedures or conditions are fulfilled:
(a) Direct progress payment up to the limit of 90% of Sub-

contract Sum
(b) The remainder 10% of the Sub-contract Sum shall be paid

to the Main Contractor after the issuance of the Certificate
of Practical Completion. The PT shall ensure that the Main
Contract releases the remainder sums to the Sub-
Contractor after the Defects Liability Period.
(c) Ensure that the conditions for direct payment are included
in the tender documents and the sub-contract.
(d) The sub-contractor is registered as bumiputra contractor

under the relevant class, and is a local contractor operating
at the area where the project is to be carried out.

Action By
/ Reference
7 Sub-Contract Administration (Cont’d)

(Cont’d)
(b) Direct Payment (Cont’d) Action by: PT/ CAO/
Finance Division
(e) Ensure that the conditions for direct payment are stated in
the Letter of Acceptance (LoA) to the Main Contractor, and
that the Main Contractor submits the a complete list of
sub-contractors he intents to employ.
(f) Ensure that there is no assignment of payments to others,

other than the sub-contractors listed by the Main
Contractor.
(g) The Main Contractor is not permitted to amend the list of

sub-contractors without written permission of the
Government/DID.
(h) The main contract includes an indemnity clause to

safeguard the rights of the Government / DID.
(c) Written Consent of the S.O.

may carry out any of the following under the terms of the sub-
contract:
 Permit sub-contractor’s to employ workmen not in

accordance with Government’s prescribed ratio (clause
12(b))
 Permit Sub-letting (clause 19)
 Grant extension of time (clause 26(b))
 determine the employment of the sub-contractor (clauses
28(a) and (b)).
 employ others or himself undertake the sub-contract work
following the determination of the nominated sub-
contractor (clause 28(c)(ii)).

Action By
/ Reference

(Cont’d)
(c) Written Consent of the S.O. (Cont’d)
Action by: PT /SO
In addition to the above, the S.O.’s certificate is required for
the following:
 a certificate, stating the nominated sub-contractor’s default,

be issued by the S.O. prior to calling of performance bond
by the Main Contractor (clause 24(b))
 a certificate, stating that the nominated sub-contractor is in
delay, prior to deduction for loss or damages by the Main
Contractor (clause 27).
(d) Default on the Part of the Sub-Contractor / Supplier

For information
Where the Nominated Sub-contractor or Supplier in the
execution of the work or the supply of the materials or goods
under the sub-contractor, the Main Contractor shall be
responsible to have the works executed or the materials or
goods supplied by whatsoever means necessary.
The Government/DID is not required to re-nominate. The

contractor is only entitled to be paid the same sum as if the
Nominated Sub-contractor or Supply had not defaulted, and
the contractor is not entitled to extension of time by reasons of
such default.
7&8 Commencement and Completion of Sub-Contract Works For information
The Main Contractor shall issue an Official Order to Commence,

using form JKR 203N5, and the Nominated Sub-Contractor is
required to complete the works within the time for completion
stated in its Form of Tender.
Nominated Supplier
The Main Contractor shall issue an Order For Supply and

Delivery of Articles, using form JKR 203P5, and the Nominated
Supplier is required to complete the supplies within the time
for completion stated in its Form of Tender.
Defects Liability
Refer to the Main Contract for defects liability obligations and

rights.

20.2.2 Administration of Provisional Sum
Action By
/ Reference
A Provisional Sums
Please refer to Flowchart 20.2 – Administration of Provisional

Sums.

works programme, and ensure the timely appointment of sub-
1 Preparation of Cost Estimates Action by: CAO
Prepare cost estimates for the works to be carried out under

each Provisional Sum.
At this stage, the scope of works shall have been sufficiently

clearly identified or defined to enable the works to be priced.
The cost estimate for the works shall be prepared by an

officer who has the relevant experience or expertise.
2 Approval Before Proceeding with Procurement Action by: CAO
Approval of the Authorised Person is required if the estimated JPS SP Bil 1/2007
cost of works for each Provisional Sum exceeds that
Provisional Sum by more than 30%.
Use the current ‘Borang E’ – Permohonan Permohonan Untuk

Melaksanakan Item Di Bawah Wang Peruntukan Sementara
Yang Dijangka Melebihi *30%/50% Dari Peruntukan Asal..
3, 4 & 5 Authorised Person
 If the estimated cost of works exceeds the Provisional Sum

by more than 30% up to the limit of 50%, the Authorised
Person shall be the Division Director.

by more than 50%, the Authorised Person shall be the
Director General or Deputy Director General.

Action By
/ Reference
6&7 Procurement of Works Not Requiring Involvement of the Main Action by: SOR/CAO
Contractor
If the works do not require the involvement of the Contractor

(eg aerial photography or works carried out off-site), then
proceed to invite tender/quotation directly from qualified sub-
contractors or suppliers.
Comply with the DID guidelines on calling of tender/quotation.
Direct payment may be to such sub-contractor or supplier For information.

may be effected through Indent or Local Purchase Order
(Inden / Pesanan Tempatan).
8&9 Works To Be Carried Out By Specialists – Calling of For information

Tender/Quotation By Contractor
For specialist works exceeding RM200,000, open/selective

tender shall be called by the Contractor.
For works value not exceeding RM200,000, work may be

procured by the Contractor through quotation exercise.
The Contractor may tender/quote for the specialist works, if

has the necessary qualifications. In such cases, the
Contractor shall not be entitled to profit and attendance on his
tender/quotation.
Contractor shall prepare and call tender/quotation Action by:

SOR/PT
 The SOR/PT shall prepare specifications, Needs Statement,
or design (‘design documents’), and provide the same to
the Contractor.
 Design and Build. For DB contracts, the Contractor shall

prepare the specifications, Needs Statement or design
(‘design documents’) for the tender/quotation documents.
 The Contractor shall prepare the tender/quotation

document based on the design documents, and provide
the list of suitably qualified sub-contractors or suppliers
(‘tenderers’) for the SOR’s approval.
 The SOR/PT must check the tender/quotation documents

are in order and free from errors. The SOR shall provide a
list of suitably qualified tenderers.
 To total number of tenders shall not be less than 5,

selected from both the lists provided by Contractor and the
SOR.

Action By
/ Reference
8&9 Works To Be Carried Out By Specialists – Calling of Action by:

(Cont’d) Tender/Quotation By Contractor (Cont’d) SOR/PT
Contractor shall prepare and call tender/quotation (Cont’d)
 The Contractor shall prepare sufficient number of tender

documents.
 For quotations, the tenderers must submit 2 set of

documents.
Closing of Tender/Quotation
 The SOR shall prepare and issue the invitation for

tenders/quotations.
 The tenders/quotations shall be closed on the fixed date

and time.
 The quotations/tenders shall be opened in the presence of

a committee, comprising representatives of the SOR and
Contractor.
Evaluation of Tender/Quotation
 For tenders, the evaluation shall be carried out by the

SOR, and the SOR shall recommend the lowest and
technically complying tender.
 Design and Build. For DB contracts, the evaluation shall

be carried out by the Contractor, and the Contractor shall
recommend the lowest and technically complying
quotation.
 For quotations, the evaluation shall be carried out by the

Contractor, and the Contractor shall recommend the lowest
and technically complying quotation.
(a) The SOR shall verify the recommendation, and may

further negotiate for a fair sub-contract sum or
contract rates.
(b) The sub-contract sum or contract rates shall be

inclusive of the Contractor’s Profit and Attendance.

Action By
/ Reference
8&9 Works To Be Carried Out By Specialists – Calling of

(Cont’d) Tender/Quotation By Contractor (Cont’d)
Profit and Attendance (P&A)
The Profit and Attendance (P&A) shall be inclusive of

Contractor’s management costs, profit and attendance.
 For Quotation, the Contractor’s P&A shall be as stated in

the Contract or, if not stated then, it shall not exceed
7.5%.
 For Tender, the Contractor’s P&A shall be as stated in the

Contract or, if not stated then, it shall not exceed the
following rates:
Value of Works Maximum Rate for P&A

RM500,000 or less 7.5%
> RM500,000 – RM 1 million 5%
> RM 1 million - RM 5 million 4%
> RM 5 million – RM 10 million 3%
> RM 10 million <3%
 If the Contractor’s tender/quotation is accepted, the

Contractor shall not be entitled to profit and attendance on
his tender/quotation.
10 Works To Be Carried Out By Main Contractor Action by: SOR / SO
For normal category of works (‘kategori biasa’), or works

which the Contractor possesses the necessary skills, the SO
may issue the necessary SO Instruction for the Contractor to
carry out the works.
The valuation of works shall be in accordance with the

valuation rules of the Contract, i.e. based on contract rates or,
in the absence of contract rates, based on fair valuation.

Action By
/ Reference
11 Approval of Value of Works Action by: SOR
The tender/quotation evaluation and recommended sub-

contract / supply contract value shall be approved by a
Variation Order Committee (‘Authorised Person’).
The sub-contract / supply contract value shall be inclusive of

the Contractor’s Profit and Attendance.
Submit the application for the approval of sub-contract value /

supply contract value to the Authorised Person for approval.
Use the current ‘Borang F’ – Permohonan Untuk Kelulusan

Harga Bagi Item Wang Peruntukan Sementara.
See Chapter 5 – Authority for Authorised Person, and limit of

authority
12 Appointment of Sub-Contractor or Supplier Action by: SOR/SO
SO’s Instruction
Issue the necessary instruction to the Contractor to effect the

appointment of the sub-contractor or supplier, as approved by
the VO Committee.
Direct Payment and Deed of Assignment
The DID may make direct payment to such sub-contractor or

supplier through the execution by the Contractor of the ‘Deed
of Assignment’ (Surat Ikatan Penyerahan Hak Faedah), in
favour of the appointed sub-contractor or supplier.
For avoidance of disputes, a copy of the Deed of Assignment

shall be appended to the SO’s Instruction for the appointment
of sub-contractor or supplier.
The Deed of Assignment may be used if there is no

overlapping of sums which is assigned under the main
contract.
Form JKR 203N
For works let under Form JKR 203N, direct payment to the
sub-contractor shall be effected through the procedures for
Nominated Sub-Contractor or Nominated Supplier (see Section
20.3.2, above).

20.3 GUIDANCE NOTES
20.3.1 Definitions
"Nominated Sub-contractor" means any contractor, specialist or other person nominated by the S.O.
in accordance with the Contract to be employed by the Contractor for the execution of work or
supply of goods materials or services for which a Prime Cost Sum (or P.C. Sum) has been inserted in
the Contract or ordered by the S.O. to be employed by the Contractor to execute work or supply
goods materials or services under a Provisional Sum.
“Prime Cost Sum” or “P.C. Sum” is an amount included in a bill of quantities to cover a particular bit
Generally, P.C. Sums are included in the Contract for works to be carried out by specialist contractors
or suppliers.
in part or not at all at the direction and discretion of the S.O..
Generally, Provisional Sum are allocated for the execution of works or for supply of goods or services
for which
 an exact price cannot be obtained/ascertained or

 are not clearly identified or defined
at the time of tender.
20.3.2 Nomination of Sub-Contractors and Suppliers under P.C. Sum
The contract may permit the Government / DID to nominate a sub-contractor to carry out work or a
supplier to provide goods which is included under any Prime Cost or Provisional Sum.
The Forms JKR203 and 203A includes such right of nomination, whereas Form JKR DB/T does not.
Under the JKR Forms 203/203A, any work or supply of goods or materials covered by Provisional
Sums may be treated as P.C. Sum items if the S.O. so decides.
20.3.3 Appointment of Sub-Contractors and Suppliers under Provisional Sums
The sub-contractor or supplier may be appointed by the Contractor pursuant to the S.O.’s Instruction
on the expenditure of Provisional Sums. The sub-contractor or supplier is not a nominated sub-
contractor or nominated supplier pursuant to the terms of the Contract.
The DID may make direct payment to such sub-contractor or supplier through the execution by the
Contractor of the ‘Deed of Assignment’ (Surat Ikatan Penyerahan Hak Faedah), in favour of the
appointed sub-contractor or supplier.

20.3.4 Expending the P.C. Sums
The tender evaluation report (kertas taklimat tender) for the sub-contract must be submitted to the
Tender Board for approval.
Please also refer to Chapter 5 – Authority, and Chapter 8 – Tender Evaluation and Acceptance.
20.3.5 Expending the Provisional Sums
If the estimated cost of works is expected to exceed the Provisional Sum by 30% or more, then the
Project Team must seek prior approval from the Authorised Person prior to the expenditure of the
Provisional Sum.
The valuation or prices for the sub-contract or suppler must be submitted to the Authorised Person
for approval prior to the appointment of the sub-contractor or supplier.
If the estimated cost of works does not exceed the Provisional Sum, or exceeds the Provisional Sum
by less than 30%, the Project Team may proceed with the procurement and seek approval of the
Authorised Person prior to the appointment of the sub-contractor or supplier.
20.3.6 Procurement under P.C. Sum and Provisional Sum
The PT/PO shall carry out the
 quotation exercise (as the case may be),
for the sub-contract works, where such Prime Cost Sums or Provisional Sums are included in the
Contract.
Nominated Sub-Contractor
 JKR 203N/83 (including addendum) : Form of Contract To Be Used For Nominated Sub-
Contractors Where the Main Contractor is Based Upon Form JKR 203 Or 203A
 JKR 203N1/83 (including addendum) : Form of Tender For Use by Nominated Sub-Contractor
 JKR 203N2/88 : Conditions of Tendering and General Information For Use By Nominated Sub-
Contractor
 JKR 203N3/93 : Letter of Nomination
 JKR 203N4/83 : Letter of Acceptance of Tender By Main Contractor To Nominated Sub-Contractor
 JKR 203N5/83 : Official Order to Commence Work By Main Contractor To Nominated Sub-
Contractor
 JKR 203N6/88 : Letter of Nomination of Sub-Contractor
 JKR 203N7/88 : Letter of Indemnity From Nominated Sub-Contractor to the Government

Nominated Supplier
 JKR 203P/83 (including addendum) : Form to be used for Nominated Suppliers Where The Main
Contractor is based upon Form JKR 203 or 203A
 JKR 203P1/83 : Form of Tender For Use By Nominated Suppliers
 JKR 203P2/83 : Conditions of Tendering And General Information For Use by Nominated
Suppliers
 JKR 203P3/83 : Letter of Nomination
 JKR 203P4/83 : Letter of Acceptance of Tender by Main Contractor To Nominated Supplier
 JKR 203P5/83 : Order For Supply and Delivery of Articles – to be issued by Main Contractor to
the Nominated Supplier
 JKR 203P5A/83 : Schedule of Articles Ordered To Be Supplied and Deliverd
 JKR 203P6/88 : Letter of Notification of Nomination of Supplier
 JKR 203P7/88 : Letter of Indemnity From Nominated Supplier to the Government
Generally
 Bank Guarantee Form for Performance Bond (Nominated Sub-Contract Works)
 Deed Of Assignment (Security For Direct Payments To A Third Party)

(Surat Ikatan Serah Hak)
 The Consent Of The Government Of Malaysia To The Deed Of Assignment For Direct Payment To
A Third Party
Expending Provisional Sum
 ‘Borang E’ – Permohonan Permohonan Untuk Melaksanakan Item Di Bawah Wang Peruntukan

Sementara Yang Dijangka Melebihi *30%/50% Dari Peruntukan Asal.
 ‘Borang F’ – Permohonan Untuk Kelulusan Harga Bagi Item Wang Peruntukan Sementara.

20.5 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars for sub-contract tender procedures and
sub-contract administration.
Treasury Circular
[1] Bil 4 Tahun 1995: Dasar dan Keutamaan Kepada Syarikat Bumiputra Dalam Perolehan Kerajaan
[2] Bil 4 Tahun 2003: Bayaran Terus Kepada Sub Kontraktor
DID Circulars
[1] SP JPS Bil 4/2003: Bayaran Terus Kepada Sub Kontraktor
[2] SP JPS Bil /2007: Garis Panduan Pengurusan Wang Peruntukan Sementara (WPS)


DID MANUAL
VOLUME 10
CHAPTER 21
DISPUTE
MANAGEMENT AND RESOLUTION
Chapter 21 – DISPUTE MANAGEMENT AND RESOLUTION
Table of Contents

21.1 INTRODUCTION.........................................................................................................21-2
21.2 PROCEDURES ............................................................................................................21-2
21.3 REFERENCES .............................................................................................................21-6

List of Flowcharts
Flowchart 21.1 Dispute Management and Resolution 21-1

1. Disagreement or -
1
difference of opinion or
conflict or dispute?
No 2. Determine if there is a PT
2 ‘dispute’.
Yes
3. To use best endeavour to PT

3
resolve the ‘issue’
amicably
No
4 4. Issue(s) are settled? -
Yes
5. Refer the dispute to the PT / CQS

5 Authorised Party for
decision
6 6. Parties to give effect to PT

Authorised Party’s
decision.
Yes
7 7. Is there new information -
or substantiation from the
No Contractor?
No
8 8. Contractor gives notice to -
refer dispute to
arbitration?
Yes
9. Refer the dispute to Legal Director of

9 Adviser at Ministry / A.G.’s Contracts & QS
Chamber for advice and Division
End action.
Flowchart 21.1 – Dispute Management and Resolution

21 DISPUTE MANAGEMENT AND RESOLUTION
21.1 INTRODUCTION
 An overview of the dispute management and resolution procedures for works contracts.
 Brief outline of alternative dispute resolution (‘ADR’).
21.2 PROCEDURES
Please refer to Flowchart 21.1 – Dispute Management and Resolution.
Action By
/ Reference
Disagreement or difference of opinion or conflict or dispute

often occurs in projects.
The best form of dispute avoidance is the ensure that the

appropriate procurement method and form of contract is
used, and that the scope of works is clearly and accurately set
out in the tender and contract documents.
If practicable, all disagreements or differences of opinion or

conflicts should be resolved as soon as possible to avoid any
escalation of the issues into a ‘dispute’.
In dispute management, contemporaneous and complete

records are of utmost importance. Therefore, the PT must
ensure that records are properly kept and updated, and
available when required. (See Volume 11).
For the purpose of this Manual, a ‘dispute’ is deemed to have

occurred when the disagreement or difference of opinion etc
has been formally referred by the Contractor to the
Authorised Party under the terms of the contract.
All other issues (i.e. disagreements or differences of opinion

or conflicts) should be resolved by way of negotiation or
amicable settlement as soon as practicable.
2 Ascertainment of ‘Dispute’ Action by: SOR / PT
Ascertain if there is in actuality a “dispute”, whereby the

parties must comply with the contractual procedures and
arbitration clause.

Action By
/ Reference
3&4 Amicable Settlement Action by: SOR/PT
Unless the ‘dispute’ is formally referred for a decision in

accordance with the contract, the PM/PT should use its best
endeavour to resolve the matter by way of negotiation or
amicable settlement.
Upon settlement, record the agreement reached by the

parties. This avoids future disagreement on the same issue.
Follow up with the relevant adjustment (if any) to the contract

by way of extension of time, Variation or adjustment to the
Contract Sum, etc, as the case may be.
If parties are not able to make an amicable settlement, then

any party may refer the matter to the Authorised Party under
the Contractor for a decision.
5 Referral of Dispute for Decision
If either party has submitted a formally referred the ‘dispute’

to be decided by the Authorised Party:
(a) Upon receipt of the Contractor’s formal request to

refer the dispute to the Authorised Party, the PM/PT Action by: SOR/PT
must notify the Contracts and Quantity Surveying
Division immediately.
(b) Upon receipt of the Contractor’s formal request to Action by: SOR/PT
refer the dispute to the Authorised Party, the PM/PT
Division immediate.
(d) The PT shall prepare the documents setting out the Action by: SOR/PT
background of the dispute, with sufficient details for
the Authorised Party to make a decision.
(c) The Contracts and Quantity Surveying Division shall Action by:
refer the dispute to the officer authorized under the BUBK
contract (Authorised Party) to make a decision.
Contracts and Quantity Surveying Division, where

appropriate to do so, shall advise and assist the
Authorised Party in the dispute resolution process.

Action By
/ Reference
(e) The Authorised Party is required to make a decision
within the time frame stipulated in the contract.
(f) The Authorised Party may refer the dispute to the

Claim Committee for a decision. Action by:
AtP/ Claims
For ex-gratia payments, the Claim Committee will Committee
refer the matter to Treasury for decision and/or Refer: Treasury
approval. Instruction 202
(AP202)
JKR Forms of Contract For information
For the contracts based on the JKR forms, the time frame for
the S.O. to give a decision is 45 days after the Contractor’s
request for such decision.
Other Forms of Contract For information
If the contract is not based on JKR forms of contract, please

refer to the appropriate provision in the contract for the
dispute reference procedures.
6 Compliance with Decision Action by: SOR/PT
Comply with the decision of the Authorised Party.
(If the Contractor is dissatisfied with the Authorised Party’s

decision, he must nevertheless comply with the decision but
may refer the dispute for arbitration.)

7 Authorised Party May review its own Decision
Action by: AtP
If
 the Contractor is dissatisfied with the decision of the

Authorised Party, and
 new information or substantiation has come into the
attention of the Authorised Party,
then the Authorised Party may review its earlier decision, or

refer such review (of earlier decision) to the Claim Committee
for confirmation.

Action By
/ Reference
8 Notice of Arbitration For information
The Contractor may refer the dispute for arbitration if
 The Authorised Party fails to give a decision within 45 days

after being requested to do so; or
 The Contractor is dissatisfied with the decision of the
Authorised Party.
Such requirement to refer the dispute to arbitration must be

made within the period stipulated in the contract.
Generally, the arbitration shall not commence until after the

completion or alleged of the completion Works, or
determination or alleged determination of the employment of
the Contractor, except for the followings:
 Where there is written consent of the Government/DID

and the Contractor; or
 For such dispute following the effect of war or earthquake.
Other Forms of Contract
The above procedure is made in reference to the JKR forms.

procedures on reference to arbitration.
9 Reference to Legal Adviser at Ministry / A.G.’s Chamber Action by:
SOR/PT/BUBK
Upon receipt of the Contractor’s notice to refer a dispute for
arbitration (whether or not prior reference was made to the
Authorised for a decision), the PM/PT must notify the
Contracts and Quantity Surveying Division immediately.
The Contracts and Quantity Surveying Division shall refer the

matters to the Legal Adviser at the Ministry for further advice
and action.
The matter may then be referred to the Attorney General’s

Chamber by the Legal Adviser.
The PT shall compile the records and supporting documents

relevant to the dispute and as may be required for the arbitral
proceedings.

21.3 REFERENCES

Table of Contents

19.1 INTRODUCTION.........................................................................................................19-2
19.2 PROCEDURES ............................................................................................................19-2
19.4 REFERENCES .............................................................................................................19-6
APPENDIX 19A Checklist for the Preparation of Final Account

(Senarai Semakan Penyediaan Perakuan Akaun Muktamad) ……………………... 19A-1

List of Flowcharts
Flowchart 19.1 Final Account and Final Certificate 19-1

1. Certificate of Practical -
1 Completion
2. Prepare the Statement of CAO Refer Checklist

Final Account and Final for Preparation
Certificate of Final
 Ensure that the Account and
necessary Final
2 adjustments to the Certificate;
Contract Sum are & the current
approved form JKR66A
Fails
3. Quality Audit BUBK Refer Ch. 10,

3 Fig. 10-3
Passes
4. Approval of Statement of SO / AP
4 Final Account and Final
Certificate
5. Issue Statement of Final CAO

Account and Final
5
Certificate to Contractor
and respective parties.
6 6. Forward documents to FD CAO

for payment
7 7. Prepare Completion SOR Volume 11 –

Report, etc Construction
Management
Figure 19.1 Flowchart – Final Account and Final Certificate

19 FINAL ACCOUNT AND FINAL CERTIFICATE
19.1 INTRODUCTION
 The guidelines on the preparation of the final accounts, and the issuance of the final certificate.
19.2 PROCEDURES
Please refer to Flowchart 19.1 – Final Account and Final Certificate.
Action By
/ Reference
The Final Account must be prepared as soon as is practicable,
 after Practical Completion; and
 the Contractor has fulfilled his obligations under the

Contract, which includes the making good of defects
The Contractor is required to submit, not later than 3 months

after practical completion, the full particulars of all claims,
together with such supporting documents (including
documents relating to accounts of Nominated Sub-Contractor
and Nominated Supplier, if any) as may be necessary for the
preparation of the Final Accounts.
If the Contractor fails or refuses to submit the information

within the time, the Final Accounts may be prepared based on
the information at hand so as to enable the Final Accounts and
Final Certificate to be completed within 3 months after the end
of defects liability period or issuance of the Certificate of
Completion of Making Good Defects, whichever is the later.
Final Accounts and Final Certificate following Determination
Where the employment of the Contractor was terminated, the

Final Accounts and Final Certificate shall be prepared as soon
as practicable after the new contractor is appointed and the
assessment of the costs and/or loss or damage to the
Government/DID is completed. A modified Form JKR66A is
used (Final Account After Determination of Employment of the
Contractor / Perakuan Muktamad Kontrak Yang Mana
Ditamatkan Pengambilan Kerja Kontraktor).
For procedures following determination, please refer to

Chapter 16.

Action By
/ Reference
2 Preparation of the Statement of Final Account and Final Action by: SOR/CAO
Certificate
(a) Adjustment of Contract Sum
Before preparing the Final Account and Final Certificate (form

JKR66A), ensure that all adjustments to the Contract Sum are
approved and carried out, i.e. for,
o Adjustment for Prime Cost and Provisional Sums Refer to Chapter

o Re-measurement of provisional quantities 12, and the
o Variations to the Contract Checklist for
o Assessments of claims by the Contractor. Adjustment of
Contract Sum
Ensure that all Variation Orders (APK) and Adjustment of
Contract Sum (PHK) have been issued and are correct.
Ensure that the SO and contractor sign the JKR-APK and JKR-
PHK, as the case may be.
(b) Prepare Form JKR66A Action by: SOR/CAO
Use the current Form JKR 66A.
Ensure that the form is duly filled in with the correct contract Refer to Checklist
data, and that the sums, adjustments and computation are for Preparation of
correct. Final Account
(Penyedian
The Final Account must take into account the following: Perakuan Akaun
Muktamad)
 All adjustments to the Contract Sum;
 Payments previously paid to the Contractor, Nominated

Sub-Contractor and Suppliers, and assignees; and
 Permitted deductions under the Contract, such as costs

incurred in connection with employment of others to
execute such works to give effect to an S.O.’s instruction,
Liquidated Ascertain Damages (LAD), costs for making
good defects, etc.
 Recoupment of Advance Payment
 Deductions for direct payment by DID for dues or

contributions under the Employment Ordinance, the
Employee’s Social Security Act, the Employee’s Provident
Fund Ordinance and any other laws relevant to the
employment of workmen.
 The release of Performance Guarantee Sum (if any).

Action By
/ Reference
(c) Supporting Documents Action by: SOR/CAO
Attach the required supporting documents to the Final Account

and Final Certificate:
 Certificate of Practical Completion;
 Certificate of Non- Completion; if any
 Certificate of Completion of Making Good Defects;
 Certificate of Delay and Extension of Time, if any;
 Certificate of Adjustment of Contract Sum, if any;
 Certificate of Payment of Performance Guarantee Sum, if

any;
 Payment voucher(s); and
 Letter of release from the Department of Labour, or

Statutory Declaration (to the effect that workmen
employed have received all wages) made by the
Contractor**.
**The letter or statutory declaration must be submitted by the

Contractor before the final payment can be effected to the
Contractor.
(d) Check documents for completeness, and computation
Upon receipt of the Final Account and Final Certificate Action by: SOR/CAO
documents:

Refer to the Checklist for Preparation of Final Account Refer to Checklist
(Penyedian Perakuan Akaun Muktamad); for Preparation of
Final Account
 Complete and initial the Checklist for Preparation of Final (Penyedian
Account; Perakuan Akaun
Muktamad)
 The recommending officer shall sign the Form JKR66A; and
 Submit Form JKR66A, together with attached documents,

to the SO for signature

Action By
/ Reference
3 Quality Audit Action by:
CAO/
Forward the Statement of Final Account and Final Certificate BUBK
for checking (quality audit) by the relevant contract officer.
The quality auditor shall check that the documents are in order
and free of errors.
4 Approval of Final Account and Final Certificate Action by: CAO/SO
The Final Account and Final Certificate must be signed by the

S.O..
5 Issue Final Account and Final Certificate to Contractor Action by: CAO

Contractor and copies distributed to all parties involved in the
Contract (Accountant General).
It is not a contractual requirement that the Contractor must

sign and return a copy of the Final Account and Final
Certificate.
6 Forward documents to the Finance Division Action by: CAO / FD

the relevant Finance Division to effect payment.
7 Prepare Completion Report, etc For information
As final duties, the SOR/PT are to prepare and submit the
 Final (Completion) Report, and

 Contractor’s Performance Report (if necessary).
Please also refer to Volume 11 – Construction Management.

 JKR 66A : Final Account and Final Certificate
 Letter of Discharge of Bank / Finance Company / Insurance Guarantee
19.4 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars on Final Account and Final Payment.
Treasury Circular
 Nil
DID Circulars
[2] SP JPS Bil. 4/2008: Langkah-langkah Untuk Mempercepatkan Bayaran Interim (Tambahan
kepada Surat pekeliling SP JPS Bil. 2/2000)

APPENDIX 19A CHECKLIST FOR THE PREPARATION OF FINAL ACCOUNT

(SENARAI SEMAKAN PENYEDIAAN PERAKUAN AKAUN
MUKTAMAD)
TAJUK
PROJEK
Tarikh
Tarikh
Untuk Diterim
Nama Pegawai Diberi Tarikh Siap Semakan
Tindakan a
Kepada
Oleh
PMK 1
PMK 2
AK*
Tandakan ()
1. Pastikan perkara-perkara berikut selepas
dipatuhi sebelum penyediaan Perakuan semakan
Muktamad disiapkan.
(i) Semua Wang Kos Prima
(termasuk layanan dan
keuntungan) & Wang Peruntukan
Sementara telah diselaraskan.
(ii) Semua item untuk Kuantiti
Sementara telah dibuat
Pengukuran Semula.
(iii) Semua item/kerja yang tidak
dilaksanakan (omission) atau
dikurangkan daripada kontrak
telah disediakan APK
(iv) Semua APK & PHK telah
diselaraskan.
(v) Pelarasan pengiraan baki untuk
VOP telah dibuat.
(vi) Semua tuntutan antara
kontraktor dan Kerajaan telah
diselesaikan
2. Borang Perakuan Muktamad.
2.1 Pastikan borang JKR 66A yang terkini

digunakan.
Muka surat 1 / 4
2.2 KERAJAAN - bermaksud 'KERAJAAN
MALAYSIA' bagi projek Persekutuan
atau 'KERAJAAN ...............' bagi
projek Negeri.
2.3 Peruntukan pembangunan, kepala dan

pecahan kepala - hendaklah diisi.


2.4 Tajuk kerja, nama dan alamat
kontraktor hendaklah sama seperti di
2.5 No.Kontrak dan Jumlah Harga Asal

Kontrak hendaklah sama seperti di
2.6 Jumlah Bersih Tambahan / Potongan
(i) Ambil Jumlah Bersih dari Penyata

Pelarasan Harga Kontrak di muka
surat 4/4.
2.7 Harga Muktamad Kontrak adalah

Harga Kontrak setelah
ditambah/dipotong jumlah bersih APK
& PHK.
2.8 Perkara A - Butir-butir Jumlah

Potongan / Kurangan
(i) Perkara A.1 - pastikan semula
jumlah bayaran interim yang
terdahulu berasaskan baucer
bayaran.
(ii) Perkara A.2 - pastikan jumlah
semua bayaran Wang
Pendahuluan, jika ada yang
dibuat berasaskan baucer
bayaran (termasuk bayaran
Wang Pendahuluan kepada
NSC/NS).
(iii) Perkara A.3 - Jumlah Potongan
lain termasuk bayaran kepada
pihak ketiga, jika ada (sertakan
lampiran dan keterangan
potongan).
2.9 Bayaran Muktamad Dibawah Kontrak

adalah Harga Muktamad Kontrak
ditolak dengan perkara A.1, 2 dan 3.
2.10 Tandatangan Pegawai Pengesyor



2.11 Perkara 'B'
(i) Pastikan amaun dalam perkataan
jumlah sebenar bayaran
Perakuan Muktamad.
(ii) Perkara B.1.(ii) - Pastikan
ketepatan bayaran balik kepada
Kontraktor Utama bagi pelepasan
Deposit Wang Jaminan
Pelaksanaan. (Jika berkenaan).
(iii) Perkara B.2 - Pastikan ketepatan
baki bayaran kepada
Subkontraktor/Penerima Bayaran
seperti di Lampiran A.
(iv) Perkara B.3 - Pastikan ketepatan
pengiraan kredit hasil bagi LAD
berasaskan perbezaan tarikh CPC
dengan tarikh Lanjutan Terakhir
dan kadar LAD di dalam kontrak.
(v) Perkara B.1.(i) – Pastikan
perkiraan nilai kerja dan amaun-
amaun lain bagi Kontraktor
Utama adalah perbezaan antara
Bayaran Muktamad dan jumlah
Perkara B.1.(ii), B.2 & B.3
2.12 Pastikan Jumlah Bayaran Muktamad

menyamai Bayaran Muktamad di
Bawah Kontrak.
2.13 Masukkan No. Fasal berkenaan dengan

Akuan Statutori mengikut syarat-syarat
kontrak berkenaan seperti 48(d) bagi
borang JKR 203/203A.
2.14 Tandatangan Pegawai Penguasa


Muka surat 2 / 4
2.15 Perkara ‘C’
Pastikan pihak kontraktor adalah orang

yang sama yang menandatangani
kontrak atau wakil lain yang diberi
kuasa. Tandatangan hendaklah
disaksikan dan dilengkapi dengan
tarikh serta maklumat diri yang
dikehendaki.
2.16 Sebelum Perakuan Akaun dan Bayaran

Muktamad diluluskan, pastikan perkara
di bawah ini telah dilaksanakan.
(a) Perakuan Siap Kerja telah

dikeluarkan.
(b) Surat Akuan Statutori atau Surat

Akuan Ketua Pengarah Buruh
telah diterima daripada kontraktor
dan disertakan bersama.


Table of Contents

20.1 INTRODUCTION.........................................................................................................20-3
20.2 PROCEDURES ............................................................................................................20-3
20.2.1 Administration of Prime Cost Sums..................................................................20-3
20.2.2 Administration of Provisional Sum .................................................................20-11
20.3 GUIDANCE NOTES ...................................................................................................20-16
20.3.1 Definitions ...................................................................................................20-16
20.3.2 Nomination of Sub-Contractors and Suppliers under P.C. Sum ........................20-16
20.3.3 Appointment of Sub-Contractors and Suppliers under Provisional Sums ...........20-16
20.3.4 Expending the P.C. Sums..............................................................................20-17
20.3.5 Expending the Provisional Sums....................................................................20-17
20.3.6 Procurement under P.C. Sum and Provisional Sum .........................................20-17
20.5 REFERENCES ...........................................................................................................20-19

List of Flowcharts
Flowchart 20.1 Administration of Prime Cost Sums 20-1

Flowchart 20.2 Administration of Provisional Sums 20-2

1. Prime Cost Sums or -

1 Provisional Sums are
included in the Contract
Sum
No
2 2. Is it Prime Cost Sum? -
Yes
A A. Administration of - Refer Figure
Provisional Sums 20.2
3 3. Prepare Tender PT/PO

Documents
4 4 Invitation and Receipt of PT/PO

Tender
5 5. Tender Evaluation and PT/PO

Nomination / Acceptance
6 6. Sub-Contract PT/CAO
Documentation
7. Sub-Contract PT/CAO
7 Administration
 Commencement
 Direct Payment
 SO’s consent
8 8. Completion -
Flowchart 20.1 – Administration of Prime Cost Sums

A A Provisional Sum is - Refer

included in the Contract Figure 20.1
Sum
1 1. Prepare cost estimates of CAO/

works under Provisional Ir/Sr
Sum.
No 2. Is the estimates of works -

2 30% more than the
Provisional Sum?
Yes
Yes 3. Is the estimates of works -

3 50% more than the
Provisional Sum?
No
4. Obtain approval from CAO / Use
4 Division Director Division Director ‘Borang E’
5. Obtain approval from DG CAO/ Use

5
or Deputy DG DG /Deputy DG ‘Borang E’
No 6. Does the work require the -

6 involvement of the main
contractor?
Yes
7 7. Quotation exercise SOR
No 8. Is it specialist works? -
8
Yes
9. Tender or quotation SOR

9 exercise by Contractor
10 10. Issue SO instruction to SOR/ SO/

main contractor, and CAO
prepare valuation of works
11 11. Obtain approval (on costs) CAO Use

from Authorised Person /Authorised ‘Borang F’
Person
12. Appointment of sub-

12
contractor or supplier.
Flowchart 20.2 – Administration of Provisional Sums

20 PRIME COST & PROVISIONAL SUMS
20.1 INTRODUCTION
 The guidelines on expenditure of Prime Cost (P.C.) and Provisional Sums.

 The guidelines on the preparation of tender documents, contract documents and general
administration of nominated sub-contract and supply contracts.
Note: Refer to Section 20.3 for definitions and general overview on procurement of items under
Prime Cost Sums and Provisional Sums.
20.2 PROCEDURES
20.2.1 Administration of Prime Cost Sums

(Nominated Sub-Contractor and/or Nominated Supplier)
Action By
/ Reference
1&2 Prime Cost Sums For information
Please refer to Flowchart 20.1 – Administration of Prime Cost

Sums.
Where the Contract specifically permits the nomination of sub-

contractor to carry out works included under Prime Cost, or the
SO has elected that works under Provisional Sums shall be
executed by nominated sub-contractor or nominated supplier,
then the PT/PO shall carry out the tender exercise for
procurement of sub-contract works.

works programme, and ensure the timely nomination of sub-
The procedures for preparation of tender documents,

invitation, receipt, evaluation and acceptance of tenders, sub-
contract documentation, payment, variation, delay and
extension of time, non-completion, determination, completion,
handing over and defects, and final accounts are similar to that
for the main contract, and reference should be made to
Chapters 6 to 19, inclusive.
Changes in points of detail are set out in this chapter.

Action By
/ Reference
3 Preparation of Tender Documents For information
The procedures for the preparation of tender documents and

tender table documents set out in Chapter 6 are generally
applicable to the preparation of tender documents and tender
table documents for a nominated sub-contract.
The sub-contract tender document shall follow the main

contract number, with the words ‘NSC’ and the sub-contract
works package number in parentheses appended at the end,
eg: JPS/IP/P/1/99(NSC 1).
(a) Generally, the TENDER DOCUMENT FOR WORK comprises

the documents in the following order: Action by: PT/PO
 Tender Notice
 Form of Tender (JKR 203N1)
(JKR 203N, including amendments and Special
Provisions)
 Specification
 Summary of Tender and Schedule of Rates; or Bills of
Quantities
 List of Drawings

Action By
/ Reference
3 Preparation of Tender Documents (Cont’d)

(Cont’d)
(b) Generally, the TENDER DOCUMENT FOR SUPPLY OF Action by: PT/PO
MATERIALS OR GOODS comprises the documents in the
following order:
 Tender Notice
Provisions)
 Specification
(c) Generally, the TENDER DOCUMENT FOR SUPPLY OF

MATERIALS OR GOODS comprises the documents in the Action by: PT/PO
following order:
 Tender Notice
Provisions)
 Specification
4 Invitation and Receipt of Tender Action by: PT/PO
The procedures for the invitation and receipt of tender set out
in Chapter 7 are generally applicable to the invitation and
receipt of tender for a nominated sub-contract.
Invite the Main Contractor to tender for the sub-contract works

if the Main Contractor is suitably qualified.

Action By
/ Reference
5 Tender Evaluation and Nomination / Acceptance Action by: PT/PO
(a) Tender Evaluation
The procedures for the tender evaluation and acceptance set

out in Chapter 8 are generally applicable to the tender
evaluation of a nominated sub-contract
In the evaluation of tender, the following percentage

preference are applied for specialist bumiputra contractors for
supplies and services:
Value of Work Preference Refer: SPP 4/1995

Weightage
Exceeding RM100,000 – RM500,000 10%
Exceed RM500,000 - 1.5 million 7%
Exceeding RM 1.5 million – RM 5 million 5%
Exceeding RM 5 million – RM 10 million 3%
Exceeding RM10 million – RM 15 million 2.5%
Exceeding RM15 million No preference
(b) Nomination & Acceptance

Action by: SOR/SO



Action By
/ Reference
5 Tender Evaluation and Nomination / Acceptance (Cont’d)

(Cont’d)
(b) Nomination & Acceptance (Cont’d) Action by: SOR/SO


(i) Letter of Nomination
Use the current form for Letter of Nomination:
 for nomination of sub-contractor: Form JKR 203N3
 for nomination of supplier: Form 203P3
(ii) Letter of Acceptance
 Use the current form for Letter of Acceptance of Main

Contractor’s Tender for work or Supply of Materials or
Goods Under Prime Cost Sum, where the Main Contractor
shall carry out works allocated under Prime Cost or
Provisional Sums.
Use the current and appropriate form for the nomination,

notification and/or acceptance, as the case may be.
6 Sub-Contract Documentation Action by: PT/CAO
The procedures for the preparation of contract document set

out in Chapter 9 are generally applicable for the preparation of
the sub-contract documents.
The sample contents page for the contract document is set out

Action By
/ Reference
7 Sub-Contract Administration
(a) Generally For information
Generally, the Contractor is fully responsible for the acts of the

Sub-Contractor/Supplier.
With the exception of payment matters, the Contractor is also

responsible for the day-to-day administration of the sub-
contract / supply contract, including matters (where applicable)
relating to
 Variations
 Delays and Extension of Time
 Non-Completion
 Loss and Expense
 Determination

may agree to, or grant, and additional time to the sub-
contractor, or to determine the employment of the sub-
contractor / supplier, as the case may be.
(b) Direct Payment Action by: PT/ CAO/

Finance Division
Direct payment to nominated sub-contractors and suppliers are
permitted under the terms of the contract and sub-contract,
subject to the following procedures or conditions are fulfilled:
(a) Direct progress payment up to the limit of 90% of Sub-

contract Sum
(b) The remainder 10% of the Sub-contract Sum shall be paid

to the Main Contractor after the issuance of the Certificate
of Practical Completion. The PT shall ensure that the Main
Contract releases the remainder sums to the Sub-
Contractor after the Defects Liability Period.
(c) Ensure that the conditions for direct payment are included
in the tender documents and the sub-contract.
(d) The sub-contractor is registered as bumiputra contractor

under the relevant class, and is a local contractor operating
at the area where the project is to be carried out.

Action By
/ Reference

(Cont’d)
(b) Direct Payment (Cont’d) Action by: PT/ CAO/
Finance Division
(e) Ensure that the conditions for direct payment are stated in
the Letter of Acceptance (LoA) to the Main Contractor, and
that the Main Contractor submits the a complete list of
sub-contractors he intents to employ.
(f) Ensure that there is no assignment of payments to others,

other than the sub-contractors listed by the Main
Contractor.
(g) The Main Contractor is not permitted to amend the list of

sub-contractors without written permission of the
Government/DID.
(h) The main contract includes an indemnity clause to

safeguard the rights of the Government / DID.
(c) Written Consent of the S.O.

may carry out any of the following under the terms of the sub-
contract:
 Permit sub-contractor’s to employ workmen not in

accordance with Government’s prescribed ratio (clause
12(b))
 Permit Sub-letting (clause 19)
 Grant extension of time (clause 26(b))
 determine the employment of the sub-contractor (clauses
28(a) and (b)).
 employ others or himself undertake the sub-contract work
following the determination of the nominated sub-
contractor (clause 28(c)(ii)).

Action By
/ Reference

(Cont’d)
(c) Written Consent of the S.O. (Cont’d)
Action by: PT /SO
In addition to the above, the S.O.’s certificate is required for
the following:
 a certificate, stating the nominated sub-contractor’s default,

be issued by the S.O. prior to calling of performance bond
by the Main Contractor (clause 24(b))
 a certificate, stating that the nominated sub-contractor is in
delay, prior to deduction for loss or damages by the Main
Contractor (clause 27).
(d) Default on the Part of the Sub-Contractor / Supplier

For information
Where the Nominated Sub-contractor or Supplier in the
execution of the work or the supply of the materials or goods
under the sub-contractor, the Main Contractor shall be
responsible to have the works executed or the materials or
goods supplied by whatsoever means necessary.
The Government/DID is not required to re-nominate. The

contractor is only entitled to be paid the same sum as if the
Nominated Sub-contractor or Supply had not defaulted, and
the contractor is not entitled to extension of time by reasons of
such default.
7&8 Commencement and Completion of Sub-Contract Works For information
The Main Contractor shall issue an Official Order to Commence,

using form JKR 203N5, and the Nominated Sub-Contractor is
required to complete the works within the time for completion
stated in its Form of Tender.
Nominated Supplier
The Main Contractor shall issue an Order For Supply and

Delivery of Articles, using form JKR 203P5, and the Nominated
Supplier is required to complete the supplies within the time
for completion stated in its Form of Tender.
Defects Liability
Refer to the Main Contract for defects liability obligations and

rights.

20.2.2 Administration of Provisional Sum
Action By
/ Reference
A Provisional Sums
Please refer to Flowchart 20.2 – Administration of Provisional

Sums.

works programme, and ensure the timely appointment of sub-
1 Preparation of Cost Estimates Action by: CAO
Prepare cost estimates for the works to be carried out under

each Provisional Sum.
At this stage, the scope of works shall have been sufficiently

clearly identified or defined to enable the works to be priced.
The cost estimate for the works shall be prepared by an

officer who has the relevant experience or expertise.
2 Approval Before Proceeding with Procurement Action by: CAO
Approval of the Authorised Person is required if the estimated JPS SP Bil 1/2007
cost of works for each Provisional Sum exceeds that
Provisional Sum by more than 30%.
Use the current ‘Borang E’ – Permohonan Permohonan Untuk

Melaksanakan Item Di Bawah Wang Peruntukan Sementara
Yang Dijangka Melebihi *30%/50% Dari Peruntukan Asal..
3, 4 & 5 Authorised Person

by more than 30% up to the limit of 50%, the Authorised
Person shall be the Division Director.

by more than 50%, the Authorised Person shall be the
Director General or Deputy Director General.

Action By
/ Reference
6&7 Procurement of Works Not Requiring Involvement of the Main Action by: SOR/CAO
Contractor
If the works do not require the involvement of the Contractor

(eg aerial photography or works carried out off-site), then
proceed to invite tender/quotation directly from qualified sub-
contractors or suppliers.
Comply with the DID guidelines on calling of tender/quotation.
Direct payment may be to such sub-contractor or supplier For information.

may be effected through Indent or Local Purchase Order
(Inden / Pesanan Tempatan).
8&9 Works To Be Carried Out By Specialists – Calling of For information

Tender/Quotation By Contractor
For specialist works exceeding RM200,000, open/selective

tender shall be called by the Contractor.
For works value not exceeding RM200,000, work may be

procured by the Contractor through quotation exercise.
The Contractor may tender/quote for the specialist works, if

has the necessary qualifications. In such cases, the
Contractor shall not be entitled to profit and attendance on his
tender/quotation.
Contractor shall prepare and call tender/quotation Action by:

SOR/PT
 The SOR/PT shall prepare specifications, Needs Statement,
or design (‘design documents’), and provide the same to
the Contractor.
 Design and Build. For DB contracts, the Contractor shall

prepare the specifications, Needs Statement or design
(‘design documents’) for the tender/quotation documents.
 The Contractor shall prepare the tender/quotation

document based on the design documents, and provide
the list of suitably qualified sub-contractors or suppliers
(‘tenderers’) for the SOR’s approval.
 The SOR/PT must check the tender/quotation documents

are in order and free from errors. The SOR shall provide a
list of suitably qualified tenderers.
 To total number of tenders shall not be less than 5,

selected from both the lists provided by Contractor and the
SOR.

Action By
/ Reference
8&9 Works To Be Carried Out By Specialists – Calling of Action by:

(Cont’d) Tender/Quotation By Contractor (Cont’d) SOR/PT
Contractor shall prepare and call tender/quotation (Cont’d)
 The Contractor shall prepare sufficient number of tender

documents.
 For quotations, the tenderers must submit 2 set of

documents.
Closing of Tender/Quotation
 The SOR shall prepare and issue the invitation for

tenders/quotations.
 The tenders/quotations shall be closed on the fixed date

and time.
 The quotations/tenders shall be opened in the presence of

a committee, comprising representatives of the SOR and
Contractor.
Evaluation of Tender/Quotation
 For tenders, the evaluation shall be carried out by the

SOR, and the SOR shall recommend the lowest and
technically complying tender.
 Design and Build. For DB contracts, the evaluation shall

be carried out by the Contractor, and the Contractor shall
recommend the lowest and technically complying
quotation.
 For quotations, the evaluation shall be carried out by the

Contractor, and the Contractor shall recommend the lowest
and technically complying quotation.
(a) The SOR shall verify the recommendation, and may

further negotiate for a fair sub-contract sum or
contract rates.
(b) The sub-contract sum or contract rates shall be

inclusive of the Contractor’s Profit and Attendance.

Action By
/ Reference
8&9 Works To Be Carried Out By Specialists – Calling of

(Cont’d) Tender/Quotation By Contractor (Cont’d)
Profit and Attendance (P&A)
The Profit and Attendance (P&A) shall be inclusive of

Contractor’s management costs, profit and attendance.
 For Quotation, the Contractor’s P&A shall be as stated in

the Contract or, if not stated then, it shall not exceed
7.5%.
 For Tender, the Contractor’s P&A shall be as stated in the

Contract or, if not stated then, it shall not exceed the
following rates:
Value of Works Maximum Rate for P&A

RM500,000 or less 7.5%
> RM500,000 – RM 1 million 5%
> RM 1 million - RM 5 million 4%
> RM 5 million – RM 10 million 3%
> RM 10 million <3%
 If the Contractor’s tender/quotation is accepted, the

Contractor shall not be entitled to profit and attendance on
his tender/quotation.
10 Works To Be Carried Out By Main Contractor Action by: SOR / SO
For normal category of works (‘kategori biasa’), or works

which the Contractor possesses the necessary skills, the SO
may issue the necessary SO Instruction for the Contractor to
carry out the works.
The valuation of works shall be in accordance with the

valuation rules of the Contract, i.e. based on contract rates or,
in the absence of contract rates, based on fair valuation.

Action By
/ Reference
11 Approval of Value of Works Action by: SOR
The tender/quotation evaluation and recommended sub-

contract / supply contract value shall be approved by a
Variation Order Committee (‘Authorised Person’).
The sub-contract / supply contract value shall be inclusive of

the Contractor’s Profit and Attendance.
Submit the application for the approval of sub-contract value /

supply contract value to the Authorised Person for approval.
Use the current ‘Borang F’ – Permohonan Untuk Kelulusan

Harga Bagi Item Wang Peruntukan Sementara.
See Chapter 5 – Authority for Authorised Person, and limit of

authority
12 Appointment of Sub-Contractor or Supplier Action by: SOR/SO
SO’s Instruction
Issue the necessary instruction to the Contractor to effect the

appointment of the sub-contractor or supplier, as approved by
the VO Committee.
Direct Payment and Deed of Assignment
The DID may make direct payment to such sub-contractor or

supplier through the execution by the Contractor of the ‘Deed
of Assignment’ (Surat Ikatan Penyerahan Hak Faedah), in
favour of the appointed sub-contractor or supplier.
For avoidance of disputes, a copy of the Deed of Assignment

shall be appended to the SO’s Instruction for the appointment
of sub-contractor or supplier.
The Deed of Assignment may be used if there is no

overlapping of sums which is assigned under the main
contract.
Form JKR 203N
For works let under Form JKR 203N, direct payment to the
sub-contractor shall be effected through the procedures for
Nominated Sub-Contractor or Nominated Supplier (see Section
20.3.2, above).

20.3 GUIDANCE NOTES
20.3.1 Definitions
"Nominated Sub-contractor" means any contractor, specialist or other person nominated by the S.O.
in accordance with the Contract to be employed by the Contractor for the execution of work or
supply of goods materials or services for which a Prime Cost Sum (or P.C. Sum) has been inserted in
the Contract or ordered by the S.O. to be employed by the Contractor to execute work or supply
goods materials or services under a Provisional Sum.
“Prime Cost Sum” or “P.C. Sum” is an amount included in a bill of quantities to cover a particular bit
Generally, P.C. Sums are included in the Contract for works to be carried out by specialist contractors
or suppliers.
in part or not at all at the direction and discretion of the S.O..
Generally, Provisional Sum are allocated for the execution of works or for supply of goods or services
for which
 an exact price cannot be obtained/ascertained or

 are not clearly identified or defined
at the time of tender.
20.3.2 Nomination of Sub-Contractors and Suppliers under P.C. Sum
The contract may permit the Government / DID to nominate a sub-contractor to carry out work or a
supplier to provide goods which is included under any Prime Cost or Provisional Sum.
The Forms JKR203 and 203A includes such right of nomination, whereas Form JKR DB/T does not.
Under the JKR Forms 203/203A, any work or supply of goods or materials covered by Provisional
Sums may be treated as P.C. Sum items if the S.O. so decides.
20.3.3 Appointment of Sub-Contractors and Suppliers under Provisional Sums
The sub-contractor or supplier may be appointed by the Contractor pursuant to the S.O.’s Instruction
on the expenditure of Provisional Sums. The sub-contractor or supplier is not a nominated sub-
contractor or nominated supplier pursuant to the terms of the Contract.
The DID may make direct payment to such sub-contractor or supplier through the execution by the
Contractor of the ‘Deed of Assignment’ (Surat Ikatan Penyerahan Hak Faedah), in favour of the
appointed sub-contractor or supplier.

20.3.4 Expending the P.C. Sums
The tender evaluation report (kertas taklimat tender) for the sub-contract must be submitted to the
Tender Board for approval.
Please also refer to Chapter 5 – Authority, and Chapter 8 – Tender Evaluation and Acceptance.
20.3.5 Expending the Provisional Sums
If the estimated cost of works is expected to exceed the Provisional Sum by 30% or more, then the
Project Team must seek prior approval from the Authorised Person prior to the expenditure of the
Provisional Sum.
The valuation or prices for the sub-contract or suppler must be submitted to the Authorised Person
for approval prior to the appointment of the sub-contractor or supplier.
If the estimated cost of works does not exceed the Provisional Sum, or exceeds the Provisional Sum
by less than 30%, the Project Team may proceed with the procurement and seek approval of the
Authorised Person prior to the appointment of the sub-contractor or supplier.
20.3.6 Procurement under P.C. Sum and Provisional Sum
The PT/PO shall carry out the
 quotation exercise (as the case may be),
for the sub-contract works, where such Prime Cost Sums or Provisional Sums are included in the
Contract.
Nominated Sub-Contractor
 JKR 203N/83 (including addendum) : Form of Contract To Be Used For Nominated Sub-
Contractors Where the Main Contractor is Based Upon Form JKR 203 Or 203A
 JKR 203N1/83 (including addendum) : Form of Tender For Use by Nominated Sub-Contractor
 JKR 203N2/88 : Conditions of Tendering and General Information For Use By Nominated Sub-
Contractor
 JKR 203N3/93 : Letter of Nomination
 JKR 203N4/83 : Letter of Acceptance of Tender By Main Contractor To Nominated Sub-Contractor
 JKR 203N5/83 : Official Order to Commence Work By Main Contractor To Nominated Sub-
Contractor
 JKR 203N6/88 : Letter of Nomination of Sub-Contractor
 JKR 203N7/88 : Letter of Indemnity From Nominated Sub-Contractor to the Government

Nominated Supplier
 JKR 203P/83 (including addendum) : Form to be used for Nominated Suppliers Where The Main
Contractor is based upon Form JKR 203 or 203A
 JKR 203P1/83 : Form of Tender For Use By Nominated Suppliers
 JKR 203P2/83 : Conditions of Tendering And General Information For Use by Nominated
Suppliers
 JKR 203P3/83 : Letter of Nomination
 JKR 203P4/83 : Letter of Acceptance of Tender by Main Contractor To Nominated Supplier
 JKR 203P5/83 : Order For Supply and Delivery of Articles – to be issued by Main Contractor to
the Nominated Supplier
 JKR 203P5A/83 : Schedule of Articles Ordered To Be Supplied and Deliverd
 JKR 203P6/88 : Letter of Notification of Nomination of Supplier
 JKR 203P7/88 : Letter of Indemnity From Nominated Supplier to the Government
Generally
 Bank Guarantee Form for Performance Bond (Nominated Sub-Contract Works)
 Deed Of Assignment (Security For Direct Payments To A Third Party)

(Surat Ikatan Serah Hak)
 The Consent Of The Government Of Malaysia To The Deed Of Assignment For Direct Payment To
A Third Party
Expending Provisional Sum
 ‘Borang E’ – Permohonan Permohonan Untuk Melaksanakan Item Di Bawah Wang Peruntukan

Sementara Yang Dijangka Melebihi *30%/50% Dari Peruntukan Asal.
 ‘Borang F’ – Permohonan Untuk Kelulusan Harga Bagi Item Wang Peruntukan Sementara.

20.5 REFERENCES
Please refer to the latest Treasury Circulars and DID Circulars for sub-contract tender procedures and
sub-contract administration.
Treasury Circular
[1] Bil 4 Tahun 1995: Dasar dan Keutamaan Kepada Syarikat Bumiputra Dalam Perolehan Kerajaan
[2] Bil 4 Tahun 2003: Bayaran Terus Kepada Sub Kontraktor
DID Circulars
[1] SP JPS Bil 4/2003: Bayaran Terus Kepada Sub Kontraktor
[2] SP JPS Bil /2007: Garis Panduan Pengurusan Wang Peruntukan Sementara (WPS)


Table of Contents

21.1 INTRODUCTION.........................................................................................................21-2
21.2 PROCEDURES ............................................................................................................21-2
21.3 REFERENCES .............................................................................................................21-6

List of Flowcharts
Flowchart 21.1 Dispute Management and Resolution 21-1

1. Disagreement or -
1
difference of opinion or
conflict or dispute?
No 2. Determine if there is a PT
2 ‘dispute’.
Yes
3. To use best endeavour to PT

3
resolve the ‘issue’
amicably
No
4 4. Issue(s) are settled? -
Yes
5. Refer the dispute to the PT / CQS

5 Authorised Party for
decision
6 6. Parties to give effect to PT

Authorised Party’s
decision.
Yes
7 7. Is there new information -
or substantiation from the
No Contractor?
No
8 8. Contractor gives notice to -
refer dispute to
arbitration?
Yes
9. Refer the dispute to Legal Director of

9 Adviser at Ministry / A.G.’s Contracts & QS
Chamber for advice and Division
End action.
Flowchart 21.1 – Dispute Management and Resolution

21 DISPUTE MANAGEMENT AND RESOLUTION
21.1 INTRODUCTION
 An overview of the dispute management and resolution procedures for works contracts.
 Brief outline of alternative dispute resolution (‘ADR’).
21.2 PROCEDURES
Please refer to Flowchart 21.1 – Dispute Management and Resolution.
Action By
/ Reference
Disagreement or difference of opinion or conflict or dispute

often occurs in projects.
The best form of dispute avoidance is the ensure that the

appropriate procurement method and form of contract is
used, and that the scope of works is clearly and accurately set
out in the tender and contract documents.
If practicable, all disagreements or differences of opinion or

conflicts should be resolved as soon as possible to avoid any
escalation of the issues into a ‘dispute’.
In dispute management, contemporaneous and complete

records are of utmost importance. Therefore, the PT must
ensure that records are properly kept and updated, and
available when required. (See Volume 11).
For the purpose of this Manual, a ‘dispute’ is deemed to have

occurred when the disagreement or difference of opinion etc
has been formally referred by the Contractor to the
Authorised Party under the terms of the contract.
All other issues (i.e. disagreements or differences of opinion

or conflicts) should be resolved by way of negotiation or
amicable settlement as soon as practicable.
2 Ascertainment of ‘Dispute’ Action by: SOR / PT
Ascertain if there is in actuality a “dispute”, whereby the

parties must comply with the contractual procedures and
arbitration clause.

Action By
/ Reference
3&4 Amicable Settlement Action by: SOR/PT
Unless the ‘dispute’ is formally referred for a decision in

accordance with the contract, the PM/PT should use its best
endeavour to resolve the matter by way of negotiation or
amicable settlement.
Upon settlement, record the agreement reached by the

parties. This avoids future disagreement on the same issue.

If parties are not able to make an amicable settlement, then

any party may refer the matter to the Authorised Party under
the Contractor for a decision.
5 Referral of Dispute for Decision
If either party has submitted a formally referred the ‘dispute’

to be decided by the Authorised Party:
(a) Upon receipt of the Contractor’s formal request to

refer the dispute to the Authorised Party, the PM/PT Action by: SOR/PT
Division immediately.
(b) Upon receipt of the Contractor’s formal request to Action by: SOR/PT
refer the dispute to the Authorised Party, the PM/PT
Division immediate.
(d) The PT shall prepare the documents setting out the Action by: SOR/PT
background of the dispute, with sufficient details for
the Authorised Party to make a decision.
(c) The Contracts and Quantity Surveying Division shall Action by:
refer the dispute to the officer authorized under the BUBK
contract (Authorised Party) to make a decision.
Contracts and Quantity Surveying Division, where

appropriate to do so, shall advise and assist the
Authorised Party in the dispute resolution process.

Action By
/ Reference
(e) The Authorised Party is required to make a decision
within the time frame stipulated in the contract.
(f) The Authorised Party may refer the dispute to the

Claim Committee for a decision. Action by:
AtP/ Claims
For ex-gratia payments, the Claim Committee will Committee
refer the matter to Treasury for decision and/or Refer: Treasury
approval. Instruction 202
(AP202)
JKR Forms of Contract For information
For the contracts based on the JKR forms, the time frame for
the S.O. to give a decision is 45 days after the Contractor’s
request for such decision.
Other Forms of Contract For information

dispute reference procedures.
6 Compliance with Decision Action by: SOR/PT
Comply with the decision of the Authorised Party.
(If the Contractor is dissatisfied with the Authorised Party’s

decision, he must nevertheless comply with the decision but
may refer the dispute for arbitration.)

7 Authorised Party May review its own Decision
Action by: AtP
If
 the Contractor is dissatisfied with the decision of the

Authorised Party, and
 new information or substantiation has come into the
attention of the Authorised Party,
then the Authorised Party may review its earlier decision, or

refer such review (of earlier decision) to the Claim Committee
for confirmation.

Action By
/ Reference
8 Notice of Arbitration For information
The Contractor may refer the dispute for arbitration if
 The Authorised Party fails to give a decision within 45 days

after being requested to do so; or
 The Contractor is dissatisfied with the decision of the
Authorised Party.
Such requirement to refer the dispute to arbitration must be

made within the period stipulated in the contract.
Generally, the arbitration shall not commence until after the

completion or alleged of the completion Works, or
determination or alleged determination of the employment of
the Contractor, except for the followings:
 Where there is written consent of the Government/DID

and the Contractor; or
 For such dispute following the effect of war or earthquake.
Other Forms of Contract
The above procedure is made in reference to the JKR forms.

procedures on reference to arbitration.
9 Reference to Legal Adviser at Ministry / A.G.’s Chamber Action by:
SOR/PT/BUBK
Upon receipt of the Contractor’s notice to refer a dispute for
arbitration (whether or not prior reference was made to the
Authorised for a decision), the PM/PT must notify the
Contracts and Quantity Surveying Division immediately.
The Contracts and Quantity Surveying Division shall refer the

matters to the Legal Adviser at the Ministry for further advice
and action.
The matter may then be referred to the Attorney General’s

Chamber by the Legal Adviser.
The PT shall compile the records and supporting documents

relevant to the dispute and as may be required for the arbitral
proceedings.

21.3 REFERENCES

Contract Administration - JPS

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Contract Administration - JPS

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GOVERNMENT OF MALAYSIA

Jabatan Pengairan dan Saliran Malaysia

Revision 0 : March 2009 i

Dato’ Ir. Hj. Ahmad Husaini bin Sulaiman,

ii Revision 0 : March 2009

Revision 0 : March 2009 iii

iv Revision 0 : March 2009

Acknowledgement ................................................................................................................. iii

Registration of Amendments .................................................................................................. iv

Table of Contents .................................................................................................................. v

List of Volumes ...................................................................................................................... vii

List of Abbreviations (English) ................................................................................................ ix

List of Abbreviations (Bahasa Malaysia) ................................................................................... xi

Glossary ................................................................................................................................ xiii

Chapter 1 Introduction to Volume 10

Chapter 2 DID Organisation Structure

Chapter 3 Procurement - Overview

Chapter 4 Project Implementation - Overview

Chapter 6 Preparation of Tender Documents

Chapter 7 Invitation and Receipt of Tender

Chapter 8 Tender Evaluation and Acceptance

PART III – POST-CONTRACT

Chapter 9 Contract Documentation

Chapter 12 Adjustment of Contract Sum

Chapter 13 Delays and Extension of Time

Chapter 15 Loss and Expense

Revision 0 : March 2009 v

PART III – POST-CONTRACT (Cont’d)

Chapter 18 Defects Management

Chapter 19 Final Accounts and Final Certificate

Chapter 20 Prime Cost & Provisional Sums

Chapter 21 Dispute Management and Resolution

vi Revision 0 : March 2009

Volume 1 FLOOD MANAGEMENT

Volume 2 RIVER MANAGEMENT

Volume 3 COASTAL MANAGEMENT

Volume 4 HYDROLOGY AND WATER RESOURCES

Volume 5 IRRIGATION AND AGRICULTURAL DRAINAGE

Volume 6 GEOTECHNICAL MANUAL, SITE INVESTIGATION AND ENGINEERING SURVEY

Volume 7 ENGINEERING MODELLING

Volume 8 MECHANICAL AND ELECTRICAL SERVICES

Volume 9 DAM SAFETY, INSPECTIONS AND MONITORING

Volume 10 CONTRACT ADMINISTRATION

Volume 11 CONSTRUCTION MANAGEMENT

Revision 0 : March 2009 vii

(This page is deliberately left blank)

viii Revision 0 : March 2009

AtP Authorised Party

CAO Contract Administration Officer;

CPC Certificate of Practical Completion

CMGD Certificate of Completion of Making Good Defects

CNC Certificate of Non-Completion

DB/T Design and Build / Turnkey

DID Department of Irrigation and Drainage.

DT Design Team, or Designer

PDR Project Director’s Representative

PST Project Supervision Team

PWD Public Works Department

QA Quality Audit / Quality Auditor

QSCD Quantity Surveying and Contracts Division

SOR S.O. Representative;

Revision 0 : March 2009 ix

x Revision 0 : March 2009

APK Arahan Perubahan Kerja