LEMBAGA JURUUKUR BAHAN MALAYSIA BOARD OF QUANTITY SURVEYORS, MALAYSIA MEMORANDUM OF AGREEMENT (PRIVATE EDITION) BETWEEN ‘THE CLIENT THE CONSULTING QUANTITY SURVEYOR FOR PROFESSIONAL QUANTITY SURVEYING SERVICESSECTION SECTION 10 20 3.0 49 50 60 10 8.0 9.0 100 110 120 30 140 ‘SECTION HX PARTA 10 20 3.0 40 PART B. 10 20 3.0 40 PART C 10 20 3.0 49 50 APPENDICES APPENDIX A, TABLE OF CONTE! ARTICLES OF AGREEMENT GENERAL CONDITIONS OF ENGAGEMENT: DEFINITIONS DURATION OF ENGAGEMENT COPYRIGHT AND COPIES OF THE DOCUMENT OBLIGATIONS OF THE CONSULTING QUANTITY SURVEYOR, OBLIGATIONS OF THE CLIENT ‘TYPES OF SERVICES AND PAYMENTS ARRANGEMENTS FOR ADDITIONAL/ OTHER PROFESSIONAL ‘SERVICES AND FEES FORCE MAJEURE SETTLEMENT OF DISPUTES NOTICE SUCCESSORS BOUND INTERPRETATION LAWS APPLICABLE, STAMP DUTY SCHEDULE OF FEES ‘TYPES OF SERVICES BASIC SERVICES FOR BUILDING WORKS, CIVIL ENGINEERING WORKS AND WORKS UNDER SPECIALIST CONSULTANTS WHICH ARE INCLUDED IN ONE TENDER ADDITIONAL PROFESSIONAL SERVICES NOT INCLUDED IN BASIC SERVICES CATEGORIES OF PROJECTS SCALE OF FEES FOR BASIC SERVICES SCALE OF FEES FOR CONTRACTS BASED ON PROVISIONAL BILLS OF QUANTITIES PERCENTAGE OF FEES PAYABLE SCALE OF CHARGES FOR ADDITIONAL SERVICES PAYMENT FOR REIMBURSABLE EXPENSES PAYMENT FOR REMEASUREMENT OF WORKS DUE TO ALTERATION OR MODIFICATION OF DESIGN PAYMENT WHEN WORKS ARE DAMAGED OR DESTROYED PAYMENT FOLLOWING TERMINATION OR SUSPENSION BY ‘THE CLIENT PAYMENT FOLLOWING TERMINATION BY THE CONSULTING QUANTITY SURVEYOR SCOPE OF SERVICES FOR PROTECT MANAGEMENT 10 u u u- 12 2 2 2 3 14- 15 19- 23- 24 26 - 29 30 30 30 30 al 12 1s 18 23 Po 28@ SECTION I - ARTICLES OF AGREEMENTARTICLES OF AGREEMENT ‘THIS AGREEMENT is mae on the day of BETWEEN ‘whose registered address is (Gereinaftr called "the Clieat") of the one part ‘AND ‘whose registered address is (hereinafter called "the Consulting Quantity Surveyar - (CQS)" which expression includes the legal representatives, successors intitle ‘and permitted assigns) of the other part. WHEREAS the Client intends to construct and complete (description of intendod Works) (hereinafter called "the Works") AND WHEREAS the Cliont is desirous of appointing the CQS to provide professional quantity surveying services for the Works. NOW IT IS HEREBY AGREED as follows: 1.0 The Client hereby appoints the CQS to provide the professional quantity surveying services for the Works subject to and in sccordance with the Conditions of Engegement hereinafter set out and the CQS hereby accepts the appointment for the Purpose of providing services for the same subject to and in accordance with the Conditions of Engagement. 2.0 This Articles of Agreement, the General Conditions of Engagement and the Schedule of Foes shall together constitute the Agreement between the Client and CQS. Auy obligations specified in the above-mentioned documents shall form part of the CQS's Agreement 3.0 In consideration of the CQS providing the professional basic and/or additional services required the Client hereby agrees to pay the CQS in accordance with the Schedule of Fees Part B. 4.0 In the addition to the above, the Client shall pay the CQS the payments for reimbursables described in the Schedule of Fees. Part C. 5.0 The intervals of payment shall be *monthly/*bimonthly/trimontly and/or in accordance with the Schedule of Fees Part B - clause 3 (Breakdown of Percentage (%) of Fees) commencing ftom the date ofthe CQS's appointment. "Delete if not applicable.i = IN WITNESS WHEREOF "The hand of the Client hes boon hereunto set the day and year frst above written in the presence of Signature: ‘Name! "The Common Seal of .. ee oe Was hereunto affixed in the presence of:- ‘Signature: Name: IN WITNESS WHEREOF ‘The hand of the Consulting Quantity Surveyor } ‘has been hereunto set the day and year first above written in the presence cf } Signature: Name: “The Common Seal of affixed in the presence of Dinector "Delete as appropriate Signature. Director/Secretary® The axing ofthe Common Seal 10 be witnessed in accordance withthe Articles of Association ofthe Company.i # BE aap SECTION II - GENERAL CONDITIONS OF ENGAGEMENTSECTION II. GENERAL CONDITIONS OF ENGAGEMENT 10 DEFINITIONS 1.1 In this Agrecment unless the content otherwise requis the following expressions shall have the Definitions ‘meanings hereby assigned to them: ("Consulting Quantity Surveyor" (CQS) moans the Registered Quantity Surveyor (Sele Proprietor) or the Partnership or the Body Corporate who is registered with the Board of| Quantity Surveyors Malaysia and has a valid permit to practise, engaged by the Client to perform professional quantity surveying services. ©) "Specialist Consultants” (SC) means mechanical and electrical engineers eppoiated for ‘mechanical and electrical works, interior designers eppointed for interior. decoration ‘works, landscape architects appointed for andscape works and ary other professional appointed for works not included under architectra, civil and structural works” (© "Contractor" means aay person or persons, firm or company under a contract with the CCiont to perform the Works and/or to supply goods in connection with the Works. (@ "Cost of Works" means the total cost tothe Client forthe following items however incurred:- (all builders' works, including variations; (all specialists) or sub-contractors’ works, services, installations and equipment esigned and specified or allowed for and forming on integral part of the ‘Works’ to enable it to function fully and to be occupied up to its intended standards of comfort, convenience, décor and finishes; Gil) all payments (before deduction of any liquidated ond ascertained damages or ppoualtes paysble by the Contactor to the Client) made by the Client to the (Contractor by way of bonuses or incentive orex-graia or payment in setiement of claims; (Gv) 2 fir valuation of any labour, materials, manufactured goods, machinery or other facilites provided by the Client and incorporated in the works; (¥) “the full benefit accruing to the Contractor for the use of construction plant and ‘equipment belonging to the Client which the Client has required to be used in the ‘execution of the works; (vi) the market value as if purchased new of any second-hand materials, manufactured ‘goods and machinery incorporated in the works; (vii). price variations arising fiom escalation of prices; and (vill) approved Contractor's claims for additional preliminaries due to the extension of time, which have been derived ftom the priced preliminaries, (©) The above Costs of Works exclude the following: operating equipment or machinery that are not an integral or essential part of the Works; (i) administrative expenses; (ii) costs incurred by the Client under the agreement between the Client and the CQS} iv) interests on capital incurred during construction; () costs of raising money required for the construction of works; and (Wi) costs of land and way-leaves.0 od ‘The Cost of Works for the various stages of the Works for the purpose of calculating the fees in accordance with Part B of Section II - Schedule of Fees hereof shall be defined as follows:- (® Earcampletad Works, The Cost of Works for fees claim shall he the Final Cost of Works a8 per the Fizel Account or the Original Contact Sum excluding Contingeney Sum whichever isthe greater and in both cases to deduct one third of ‘the Costs of Works under the Specielist Consultants, Provided that in any event the total fes of the OQS shal not be reduced by more than one sixth (1/6) ofthe total fees Gi) For Works tendered but not awarded, The Cost of Works shall be the lowest acceptable tender less Contingency Sum, Prime Cost and/or Provisional Sums for Architectural, Structural and Civil Works which do not require the CQS to carry out ‘any measurements and one third ofthe Prime Costs and/or Provisional Sums for the ‘works under the Specialist Consultants included in the tender documents. Provided that in any event the total fees of the CQS shall not be rednoed by more than one sixth (1/6) of the total ees. For the purpose of this clause, the lowest acceptable tender shall mean as follows (depending on the status of the tender): STATUS OF TENDER LOWEST ACCEPTABLE TENDER 1 | Tenders called but cancelled before | Lowest Tender acceptable within the evaluation is carried out by the COS. | reasonable range compared to the latest estimate approved by the Cent. 2 | Tenders called but cancelled after ‘Tender recommended by the CS. evaluation is carried out by the COS. 3 | Tender evaluation done but cancelled | Tender recommended by the relevant ‘when it reaches the Tender Board's | Government deparmentslagencies if Seoretariat (applicable to Government | it differs from the tender recommended Projects onby). |b the Cos. | 4 | Tender report forwarded to the Citent. | Tender approved by the Client. @) (ii) For Works which have not been tendered, The Costs of Works shall be the latest estimate propared by the CQS less Contingency Sum, Prime Cost and Provisional Sums for Architectural, Structural and Civil Works which do not require the CQS to carry out any measurements and one third of the ltest estimate for works under the Specialist Consultants included in the tender documents. Provided that in any event ‘he total fees of the CQS shell not be reduced by more that one sixth (1/6) ofthe total fees. In both cases, the latest estimate shall be the estimate that has been submitted to and agreed by the Client and CQS for the Architectural, Structural and Civil Works and by the Specialist Consultants for their scope of works. ‘The Cost of Works shall be he Orginal Contact Sum or Revised Contact Sum less Contingency Som, Prime Cost Sums and Provisional Sums for Architectural, Stuctural and Ci Works which have not yet been tendered/awarded/measured! agreed, less one third the Costs of Workcs under the Specialist Consultants. Provided that in any event the total fees ofthe QS shall not be reduced by more that one sixth (1/6) ofthe total fees. (s) Bor Works exeouted by a subsequent Contractor arising ftom the determination of the employment of te previous Contractor. The Cost of Works in respect of Stage Gi) of Basic Services (Preparation of Bills of Quantities and Other Tender Documents) shall be based on the net value of the uncompleted portion of patilly completed Sections or Elements of the works which have been remeasured due to the determination ofthe employment ofthe previous Contractor.® "Force Majeure” mean acts of god, strikes, lock-outs or other industrial disturbances, ‘wars, insurrection, rots, epidemics, landslides, earthquakes, storms, lightning, floods; civil disturbances, explosions and any other similar events not within the control of either party and which by exercise of due diligence neither party is able to overcome. "Multiplier" means a factor derived ftom the folowing elements (whichever applicable oni): (annual celay; (i) finge benefits including bonuses, the Employees Provident Fund, Soviel Security Organisation, staff saving funds, subscriptions to professional institutions, leave, redial aié and insurances, seminars, conferences, uility allowance such as water, clectricity, telephone and sewer, house rental or allowance, journal and newspapers, (Gi) the office administrative charges end expenses including renal, telephones and tele, facsimile and postal charges, stationery, subscriptions o journals, promotion, training and scholarships, car maintenance including petrol, transport costs, lege, accounting end anit fees, maintenance of ISO, Research and Development, bank charges and idl time; and Gv) profits and in the case of site staff recruited specially forthe project, the multiplier shall be derived from the clements covering the annual salary, gratuity, Employees Provident Fund and Social Security Organisation, medical ai, insurances, overheads costs and profits only; “Project” means the project for which the Client has engaged the professional services of| the CQS and of which the works form apart ofthe Project andis also subject tothe following amplifications: @Appjectis defined as comprising all wks averdedto a CQS in one Letter of Appointment. Gi) A project may consist of one or more types of buildings to be built on one or more sites, by one or more Contractors and to be tendered out st one or more times. Gil) Where more than one tonder is called for works in a project, forthe purpose of fee calculation, the Cost of Works shall mean the Total Cost of Works of al the tenders, ‘provided the tender for each work comprised in the Project is called within three (3) months of the preceeding tender but not exceeding twelve (12) months from the closing date of the first tender. Gv) Whore tenders for all the works in the project which are not called within such periods es stated in (ii) above, and the delay was not caused by the CQS, then the Cost of Works for purpose of fee calculation shall mean the Cost of Works of each ‘tender exercise. (¥) Where tenders for part of the works are within such periods as stated in (i) above and balance of the works are tendered beyond periods as stated in (iv) above, the Cost of Works for the purpose of fee calculation shell follow the definitions in (ii) and (iv) respectively (Wi) Hfsome ofthe buildings within the project are repetitive, the respective fees willbe applicable forthe buildings. In computing fees for the projet, the calculation of fees in respect of repetitive buildings and non-repetitive elements of the works shall be shown separately (wit) Ifthe costs for repetitive buildings vary due to different sites, different times of calling tenders, diferent Coutractors, the weighted average (ic. total value of all ‘repetitive buildings divided by the number of repetitive buildings) for repetitive design shall be used for billing of the fees. (viii) Where there are more than one category of buildings in a project, the Scale of Fees for the category of buildings withthe highest total value shall be applicable,oO 6 o ae (x) If the CQS is given more than one letter of appointment and the projects are on ifferent sites but with repetitive designs, the interpretations stated above are also applicable. "Time Cost” means the annual salary of aay person employed by the CQS divided by 1800 (being doemed to be the average annual total of effective working hows of en employee) end multiplied by the mucber of working hous spent by such person in esforming any ofthe eevices in respect of which payment is to be made to the CQS upon ‘he bass ofthe "salary cost" and forthe parpose ofthis definition, the annual slay of a person fora period of less than a full year shall be calclated pro rata to such person's selary for such lesser period; and "Variations" means any change in the original Contract intention as deduced from the Contract Documents as a whole describing or defining the Works to be carried out and shall include but is not restricted to: @ an increase andlor decrease in the quantity of any part of the Works; am addition to or omission from the Works (but not if the omitted work is to be carried out by the Client/Employer or by another Contractor); Gi)" a change inthe character, quality and/or nature of any part of the Works; Ge) _ a change in the levels, elevations, ayout and dimensions of any part of the Works; (W) the demolition of or removal of any part of the Works, Equipment, materials ar ‘goods no longer desired by the Client/Employer or the Superintending Officer; fa change in the Contraciors Temporary Work and/or method of working and/or Construction Plant imposed by the Client/Emplayer or the Superintending Officer; (vil) the postponement of any part of the Works desired by tae Client/Employer: and/or (ii) a requirement to complete the Works or any pat or section ofthe Works by a date carlier than the relevent Time for Completion desires by the Employer For the avoidance of doubt, the term “Variations” shall include changes which may be intended to alter the use fo which the Works will be put but shall exclude any instruction ‘which has arisen due to or is necessitated by or intended to eure any default of or breach ‘of contract by the Contractor. "Works" means the Works as described in the Articles of Agreement.12 14 20 21 22 23 24 25 26 27 Singular and Plural ‘Words importing the singular also include the plural and vioe versa wiere the context requires Headings and Marginal Notes ‘The headings and marginal notes inthe Conditions shall nt be deemed to be part of the Conditions or be taken into consideration in the interpretation or construction of the General Conditions of Engagement or of the Contract. Persons, Firms or Corporation ‘Words importing persons shall include firms and corporations DURATION OF ENGAGEMENT ‘The appointment of the CQS shall commence from the date of the Memorandum of Agreement or the date the CQS accepts the appointment in writing, whichever is the easier, or from the time ‘when the CQS shall have begun to perform under instruction by the Client or his representative any of the professional services described in the Schedule of Fees, whichever is earlier ‘The CQS shall not, without the consent of the Client, assign the benefit orin any way transfer the obligations of this Agreement or any part thereof, fat any time the Client decides to postpone the Works the Client shall by notice in writing to the (CQS terminate his appointment under this Agreement, provided that the Client may in lieu of so terminating his appointment require the CQS in writing to suspend the carrying out of bis professional services under this Agreement for tho time being. In such eveat, tho CQS shall be paid in accordance with the Schedule of Fees Part B - clause 3 In the event that the CQS is required to recommence the project after the project has been suspended by the Client for more than twelve (12) months, the CQS shall be paid in accordance ‘with the Schedule of Fees Part C - sub-clause 4.2. If the Client does not require the CQS to resume the performance of his professional services in respect of the postponed Works withia a period of twelve (12) months from the date of tae Clients requirement to the CQS to sispend the carrying out of his professional services, the Works shall be considered to have been abandoned and this Agreement is deemed terminated. ‘Ifthe Cliect fails to comply with any ofits fundamental obligations under this Agreement, the CQS may by not Tess than sixty (60) days notice in writing to the Client terminate his appointment under ‘this Agreement, provided that in liew of so terminating his appointment, the CQS may: (®) —Forthwith upon any such failure suspend the carrying out of his professional services hereunder for a period of sixty (60) days (provided that he shall as soon ae practicable inform che Client in writing of such suspension and the reasons thereof); and (b) At the expiry of such period of suspension either continue with the carrying out of his professional services under this Agreement o, if any of the reasons for the suspension then. remain, forthwith in writing to the Client terminate his appointment under this Agreement. ‘The CQS shall immediately notify the Client in writing of any situation or ofthe occurrence of say ‘event beyond the reasonable control of the CQS which makes it impossible for the CQS to carry cout his obligations hereunder, If the Client agrees in writing that any such situation or event exist, the Client may terminate this Agreement by giving thirty (30) days notice in writing and shall pay such charges due tothe CQS up tothe date of termination ofthis Agreement as are sil oustanding at the time ofthe situation or event. In the event of any disagreement between the parties as to the existence of such situation or event, the maiter shall be submitted to arbitration in accordance with clause 9.0. Commencement Date No Assignment Postponement of ‘Works Abandonment of ‘Works ‘Termination by cos Inability to Perform by QS28 29 2:10 211 212 213 30 3 32 40 41 42 ‘The CQS shall, upon reosipt of any notice or requirement in writing in accordance with sub-clause 2.3 or the termination by him of his appointment pursuant to sub-clause 2.6, proceed in an orderiy ‘manner but with all reasonable speed and economy to take such steps as are necessary to bring 10 tan end his professional services under this Agreement. Unless terminated under this clause, the CQS's appointment under this Agreement shal terminate when the CQS has prepared the valuation recommending final payment to the Contractor, Provided always that in the event of arbitretion or other proceedings after the completion of construction ofthe works if so required by the Client, the COS shall esis the Client in any manner ‘whatsoever under the same General Conditions as are applicable to this Agreement. ‘Notwithstanding any provision in tis Agreement, the Client may terminate this Agreement at any time by giving not less than thirty (30) days written notice. ‘Upon the termination ofthe appointment of the CQS, the Client shall pay to the CQS the balance of fees due in accordance with the Schedule of Fees Part B - sub-clause 1.1 together with outstanding reimbursable charges in accordance with the Schedule of Fees Part C - sub-clause 1.1 ‘The CQS shall, on receipt of the payment issue a letter of release to the Client to enable the Client to appoint another CQS to continue with the work. In the event ofthe termination of this Agreement by the CQS and upon the payment of the sums etermined under the Schedule of Fees Part B - clause 3 the CQS shall deliver to the Client the Bills of Quantities, Specifications and other similer documents relevant to the Works as ar in the possession of the CQS who shall be pernited to retain copies of any documents so delivered to the Client. Any termination ofthe CQS's appoiztment under this Agroement shall not prejudice or affect the accrved rights or claims of either party to this Agreement. COPYRIGHT AND COPIES OF THE DOCUMENT Copyright in Bills of Quantities and other documents prepared by the CQS is reserved tothe COS and the Client shall not without the prior written consent of the CQS make use of such documents for the carrying out of any work other then for the purpose of the Works which such documents have been prepared for. the Client wishes to male use of such documents for carrying out repeat works at other sites then prior wnitten consent ofthe CQS should be obtained and for which the CQS shall be paid an agreed ‘copyright royalty for use of such documents by the Client. ‘The CQS may, with the prior written consent of the Client, publish alone or in conjunction with ‘any other person aay article, photographs or other illustrations relating to the project. OBLIGATIONS OF THE CONSULTING QUANTITY SURVEYOR ‘The CQS shall exercise all reasonable skill, care and diligence in the discharge of his professional services. The CQS shall prepare Bills of Quantities in accordance with the principles of the current dition of the Standerd Method of Measurement of Building Works published by the Institution of ‘Surveyors Malaysia or other established method of measurement sanctioned by the Institution of ‘Surveyors Malaysia. If 50 required by the Client, the CQS shall take out and maintain a Professional Inderanity Insurance for an amount to be agreed to by the Client and the premium shall be borne by the Clie. In the event that the Client does not require the CQS to take out and maintain the Professional Indemnity Insurance as provided under the preceeding paragraph of this claus, the liability of the CQS shall be limited to direct damages up to the value not exceeding the fees due on the demaged portion of the Works, apo ge Duty of CQS ‘Upon Termination End of Engagement of the Works ‘Temmination ‘by Client CQS to issue Letter of Release Delivery of Documents Accrued Rights Copyright of Document Payment for Copyright Written Consent of ‘the Client General Duties OF cas Professional Indemnity Insurance43 44 45 46 47 48 49 50 5A ‘The CQS shall not divulge any confidential information communicated to or acquired by him in the course of carrying out the work, daties and obligations under the terms of this Agreement. ‘Such information shall not be used by the CQS on other projects without the written approval of ‘the Client, ‘The CQS shall not have any direct or indirect major interest in eny of the construction or supply contracts for the Works which are the subject ofthis Agreement without first divulging his interests to the Client and obtaining the written approval of the Client. Exceptas the Client shall otherwise specifically agree in writing, che CQS shall not permit his staff to engage in any activities related to the Works other than the specified professional services. The CQS shall obtain the writen approval ofthe Client before commencing additional services as specified herein ‘The CQS shall not accept any tender in respect ofthe project unloss the Client shall have given him instruction in writing to do so and any acceptance so made by the CQS on the instructions ofthe (Client shall be on behalf ofthe Client. ‘The CQS shal, further to the services specified in the Schedule of Fees, do and perform all acts, ‘matters and things which are usually done and performed by CQS according to the practice of their profession in relation to the Project. The CQS shall at all times in the execution of his obligations end duties under this Agreement comply with the relevant procedures of the Client as published or made known officially to the (CQS provided that such procedures do not contravene the Quantity Surveyors Act and Rules and/or affect the professional practice and procedures of the CQS. OBLIGATIONS OF CLIENT ‘he Client shall supply tothe CQS without charge and within a reasonable time all necessary and relevant data and information inthe possession ofthe Client and shell give such assistance as shall reasonably be required by the CQS in the performance of his professional services under this, ‘Agreement subject to the foregoing (@ Any data, report, map, photography, plan, drawing, record or information given or forwarded by the Client to the CQS pursuant to the above shall not relieve the CQS of his obligations under clause 4.0. The Client gives no warranty in any manner whatsoever for any data, report, map, photograph, plan, drawing, record or other information either as to the accuracy or sufficiency or as to how the same should be interpreted. ©) Without prejudice tothe provisions of the above sub-clause, ifthe Client requires the CS ‘o utlise eny data, report, map, photograph, plan, drawing, record or informetion given or forwarded by the Client to the QS, the CQS shal do so by exercising all reasonable skill, care and diligence in the discharge of his professionel services. The Client shell not be considered in breach of his obligation under this clause if such date, report, map, photograph, plan, drawing, record or information is found to be not sufficient for the CQSSs purpose of performing his obligations under this Agreement. (© Hf such data, report, map, photograph, plan, drawing, record or information given or forwarded by the Client to the CQS pursuant fo sub-clause 2) ofthis clause is found tobe ‘not accurate or sufficient and if the CQS is not negligent in discharging his professional services, any services rendered by the CQS for the purpose of remedying the inaccuracy or insufficiency shall be construed as Additional Professional Services Not Included in Basie Services and be paid for by the Client (© The Client shall give his decision on all sketches, drawings, reports, recommendations, tender documents and other matters properly referred to him for decision by the CQS in such reasonable time as not to delay or disrupt the performance of the CQS of his ‘professional services under this Agreement. Divulgence OF Information Declaration OF Interest Restriction Of Activities Commencement Of Additional Services Acceptance OF Tender Perform All Acts, ‘Matters And Things Compliance With (Client's Procedures Provision Of Data ‘And Information Client's Decision60 61 62 63 64 65 66 10 nM 72 73 14 ‘TYPES OF SERVICES AND PAYMENTS ‘The CQS may be engaged for the performance of any/all of the professional services as specified in the Schedule of Fees. For the purpose of determining the payment due to the CQS under the Schedule of Fees Part B - clause 3 following the termination or suspension by the Client of the Works in which itis necessary to assess the payment to be made by reference tothe cost of the Works, then tothe extent that such cost is not known, the assessment shall be made upon the basis of the CQS's latest cost estimate. Al sums due to the CQS in accordance with the terms of this Agreement, unless disputed or questioned by the Client in writing, shall be paid within thirty (30) days of the submission by the CQS of his accounts to the Client. Ifany item or part of an item of an account rendered by the CQS is disputed or subject to question by the Client in writing, the payment by the Client in respect of the undisputed amount shall not bbe withheld on those grounds and provisions of sub-clause 6.3 shall apply to such amount. In the event where the Final Contract Sum is agreed by the Client and the Contractor through negotiations the fees due and payable to the CQS shall not be affected by such sum but in all cases shall be in accordance with the Schedule of Fees and the "Cost of Works" as described under clause 11@@. All professional fees due under this Agreement exclude Service Tax. Such Service Tax shall be pid by the Client to the CQS at the rate and in the manner as prescribed by lew on production of ‘the CQS's registretion license with the Customs Department as a Collecting Agent. ARRANGEMENTS FOR ADDITIONAL/OTHER PROFESSIONAL SERVICES AND FEES. ‘Whore any of the professional services other than those described in the Schedule of Fees Part B - clause 3 are in the opinion of the CQS necessary, the CQS shall obtain the prior written approval ofthe Client to the arrangements which he proposes to make on the Client's behalf ofthe provision of such professional services. The Client shall be responsible to any person providing such professional services for the cost thereof. The fees for such professional services shall be the fees ‘as prescribed by the recognised bodies or institutions governing the profession of such consultants at the request of the Client the CQS provides any services in addition to those provided under the Schedule of Fees hereof, the Client shall pay the CQS for such additional services, such amount as may be reasonable in all circumstances. ‘The CQS shall be entitled tobe paid by the Client for any additional work and expenses necessacly incurred in the perfomance of his services caused by Teasons beyond the CQS's control whether ‘hey be (but not limited to) changes in the Clients instructions, delay by the Client, delay by the Clients Consultants andlor Contractors in providing information, delays in building operations, delays resulting from defects or deficiencies in the work of aay Contractor, sub-contractor ot supplier, default, bankruptcy or liquidation of aay Contactor, sub-contractor or supplier or where ‘he timing and/or scope ofthe Works is varied or for any other cause which is beyond the CQS's contol. ‘The CQS shall in addition be entitled to be paid by the Client for any additional services not normally necessary, such as (but not limited to) those arising as a result of the termination of a contract before completion, liquidation, fire damage tothe buildings, services in connection with atbivetion, litigation, investigation of the validity of Contractor's claims, where the Client specifically instructs the CQS to perform these services. 10 Engegement Of ‘Any/All Services Assessment Of Payment Duration OF Payment Payment Following ‘Negotiated Settlement Of Final Accounts Between (Client And Contractor Service Tex Client's Written Approval For Additional Services Payment For Additional Services Payment For A.ditional Work ‘And Expenses Incurzed By CQS Further Payment For Additional Services80 81 82 9.0 9.1 92 93 94 100 10.1 102 A ee ae FORCE MAJEURE, If either party to this Agreement is temporarily unable by reason of force majeure or the laws or regulations of Malaysia to meet any ofits obligations under this Agreement, and if such party gives to the other party writen notice of the event within fourteen (14) days after its oceurence, such obligations of the party as is unable to perform by reason of the event shall be suspended for as Jong as the inability continues, Neither party shall be liable to the other party for loss or damage sustained by such other party arising from any event referred to in sub-clause 8.1 or delays arising ftom such event SETTLEMENT OF DISPUTES Any dispute or differences arising under, out of or in connection with this Agreement shall be settled by an amicable settlement, Any such dispute or differences which cannot be resolved amicably may be referred to Mediation. Upon the dispute or differences being resolved in the Mediation, such resolution shall be recarded ‘na settlement agreement and the parties shall give effect to this agrecment accordingly. “Any dispute or differences arising under, out of or in connection with this Agreement shall upoa failure of Mediation be decided by Arbitration. ‘The appointment of Arbitrator(s) shall be agreed upon by all parties, but where all parties have failed to agree on the choice of the Arbitrators), the appointing authority shall be the Director for the time being of the Kuala Lumpur Regional Centre for Arbitration : (@) the number of arbitrator(s) shall be agreed vpon by all partis; Failing which there will be sole arbitrator, (©) the place of arbitration shall be in Kusla Lumpur, Malaysia or other place(s) in Malaysia as determined by the arbitrators); (©) the law applicable to this Agreement shall be the applicable laws in Malaysia; (@ the language(s) to be used in arbitration proceedings shall be Bahasa Malaysia or English Language determined by the arbitrators); and (©) the decision ofthe arbitrator(s) shall be binding on all parties. (the axbitration shall be governed by the Arbitration Act 1952 or any other current Act governing domestic arbitration. NOTICE Any notice or other document to be given under tis Agreement shall be in writing and shall be deemed to have been duly given if sent by:- () hand or (b) first class post or express or air mail or other fast postal or courier service; or (©) registered post; or (@ telex, facsimile or other electronic media; to a party at the address or relevant telecommunicetions number for such party or such other adress as the party may from time to time designete by written notice to the other. Azy notice or other document shell be deemed to have been received by the addressee seven (7) ‘working days from the date of despatch of the notice or ather document by post or, where the notice or other document is sent by hand or is given by telex, facsimile or other electronic media, simultaneously withthe delivery or transmission, rT Suspension Of Services Due To Force Majeure Dispute, Mediation ‘and Arbitration ‘Reference to Meciati Reference to Arbitrat Appointment OF Arbitrator(s) ete Service of Notices Receipt of Notice103 104 10 120 Bo 140 [Notwithstanding the above, any notice of termination of the CQS's eppointment shall be sent by registered post or rocorded delivery, All such notices and documents shall be in English Language or Bahasa Malaysia, SUCCESSORS BOUND ‘This Agreement shall be binding upon the successors and assigns of the parties hereto and ‘ho name of the party appearing herein shall be deemed to include the names of their successors and assigns provided always that nothing shall permit any assignments by the CQS except a3 expressly provided, INTERPRETATION Any question arising out of these Conditions of Engagement and the Schedule of Fees may be referred by the Client or the CQS to the Board of Quantity Surveyors Malaysia for interpretation at any time provided always that any difference or dispute between thera shall be determined in secardance with Clause 9.0 hereof, LAWS APPLICABLE ‘This Agreement shall be govemed by the Laws of Malaysia and no suit or other proceedings relating to this Agreement shall be brought or filed in any court other than a court of competent Jurisdiction in Malaysia which shall have exclusive jurisdiction to hear and determine all matters ‘regarding this Agrecment and the parties to this Agreement hereby submit to the jurisdiction ofthe ‘Malaysian Court for the purpose of any suits or proceedings. STAMP DUTY ‘Each party shall pay its own respective legal charges in respect of this Agreement but the stamp duty thereon shall be bome and paid by the Client. 12 Mode of Notice of Termination Successors Interpretation Laws Of Malaysia ‘To Be Applicable Stamp DutySECTION Il - SCHEDULE OF FEES PART A10 MW 20 21 22 PARTA e ‘TYPES OF SERVICES ‘The professional services to be provided by the CQS shall consist of two (2) types of sorvices as follows: (@) The Basie Services end (b) The Additional Services. BASIC SERVICES FOR BUILDING WORKS, CIVIL ENGINEERING WORKS AND WORKS UNDER SPECIALIST CONSULTANTS WHICH ARE INCLUDED IN ONE TENDER. The Basic Services for Building Works, Civil Enginecting Works and Works under Specialist Consultants which are included in one tender to be rendered by the CQS shall be as follows: (@) Preparation of Preliminary Estimates and Cost Plans excluding detailed estimates for Works under Specialist Consultants if appointed at this stage; (©) Preparation of Bills of Quantities and other Tender Documents necessary for the calling of tenders, excluding Works under Specialist Consultants. Preparation of Bills of Quantities for Works under Specialist Consultants are to be considered as Additional Services). Note the Specifications shall be prepared by the respective consultants and forward to the CQS for incorporation into the tender documents; (©) Preparation of Tender Reports and Contract Documents in collaboration with the Specialist Consultants for their respective Works (@ Valuation of Works in progress for Interim Valuations/ Certificates including measurement of variations excluding tose works under the Specialist Consultants, and including the verifications and incorporation of the amount recommended by the Specialist Consultant's works and (©) Preparation of Final Accounts for the whole Works including the incorporation of the Final Acoouns prepared by the Specialist Consultants for their Works. ‘The Basic Services to be rendered by CQS appointed by Contractors for projects under Turnkey or Design and Build shall be as follows:- (@) Preparation of Preliminary Estimates & Cost Plans excluding detailed estimates for Works under Specialist Consultants if appointed at this stage; (©) Preparation of Bills of Quantities and’ other Tender Documents necessary for submission as a bid document ‘excluding those Works under the Specialist Consultants. Note the Specifications shall be prepared by the respective ‘consultants and forward to the CQS for incorporation into the tender documents; (© Pricing of Bills of Quantities and other Tender Documents excluding those Works under the Specialist Consultants; (© Preparation of Contract Documents in collaboration with the Specialist Consultants for their Works; (©) Valuation of Works in progress for Interim/Scheciuled Payments including Measurement of Variations excluding ‘those works under the Specialist Consultants and including the verifications and incorporation of the amount recommended by the Specialist Consultant for thoir Works; and (© Preparation of Final Accounts for the whole Works including the incorporetion of the Final Accounts prepared by the Specialist Consultants for their Works, Note: If the CQS is appointed by the Owner/Developer for projects under Tukey or Design and Build, the Services to bbe rendered by the CQS shall be referred to item 2.1 above. Any amendments to the scope of services listed which may affect the Sale of Fees must be sorted out before commencement of the CQS services, 13ADDITIONAL PROFESSIONAL SERVICES NOT INCLUDED IN BASIC SERVICES ‘The additional services to be rendered by the CQS shall be as follows and the CQS must ebtain written approval from the Client before commencing: @ o © Pre-Contract (Preparation of Feasibility Studies including Income/Expenditure Cash Flow. Gi) Preparation of Documents and Reports for Pre-qualification of Contractors. (Gil) Preparation of Bills of Quantities for works under Specialist Consultants, (@)__Redrafting of Conditions of Contract to meet special requirements of the Client. (W) Assisting in preparation of tender/bid documents (excluding Bills of Quantities) for projects under Turnkey or Design and Build. Gri) Pricing of Bills of Quantities for Negotiated Tenders including pricing and agreeing Schedule of Rates ifthe (CQS is not appointed to undertake the Basic Services forthe same project. (vii). Preparation of Cost Ansiyss based on the accepted Contract Sum. (ii) Preparation of Tender Price Index based on the accepted Contract Sum. Rost-Contract ( Remeasurement of the whole or part of the Building and associated Works due to + replanning of internal layout arising from a change of use; + positioning ofthe building (i'remeasurement i required; + redesign ofthe structural elements in the works. (i) Remeasurement of Works for Contracts based on Provisional Bills of Quantities, (Gi) Specific Contractual Advice on Conditions of Contract, (Gv) Services under Management Contracts (() Services arising out of determination of the Contractors employment. (i) Continuing Professional Services on a protracted besis. (ii) Attendance at post-contract meetings beyond the original completion date ofthe project. (vit) Evaluation of Loss snd Expense Claims by the Contract based on the actual costs, (Gx) Preparation of Bills of Quantities and other tender documents for defects and oustanding works tobe carted ‘ut by a separate Contractor and valuation of defective works to be omitted from the Contract Sum of the efaulting Contactor. (8) Services for making good of works damaged by fire et. (Gi) Preparation of Coss Analysis based on the Final Contract Sam. Jal Services * @ Value Engineering Works carried out before or after tenders are awarded, (@_ Preparation and Attendance for Azbitation/Modiation/Litigetion. (Gi) Project Management. (Gv) Certification of project accounts e.g. for loan purposes. 430 40 ADDITIONAL PROFESSIONAL SERVICES NOT INCLUDED IN BASIC SERVICES (Cont'd) (©) Special Services * (Conta) (©) Bvslation of Contractual Claims ‘@i) Technical end Construction Costs Aueiting (ii) Risk Management (ill) Facilities Management. (=) Construction Management. (®) Condition Survey. CATEGORIES OF PROJECTS For the purposes of calculating the fees, projects are classified under the following categories: - 41 Building Works @ Category A ‘Tertrace and Link Houses Semi-Detached Houses Detached Houses (Cluster Houses not excoeding 4 levels Shophouses not exceeding 4 1/2 levels (inclusive of mezzanine floor) Flats not exceeding 5 levels @ Category B + Residential - Cluster Houses exceeding 4 levels + Shophouses exceeding 4 1/2. levels (inclusive of mezzanine floor) ~ Flats exceeding $ levels, + Condominium ~ Hotels = Motels + Individually Designed House + Palaces Office — - Multi-Storey Carparis = Petrol & Service Stations + Markets, Supermaricets & Hypormarkets + Bakery - Launiry ~ Bowling Alley + Banks ~ Offices = Commercial Complex ~ Cinema = Theare + Health Centre = Restaurants = Skating Rink = Private Ciub = Flated Factories 1540 CATEGORIES OF PROJECTS (Cont'd) 4.1 Bullding Works (Cont'd) Gi) Category B (Cont'a) + Educational - Hostels = Schools = Library + Laboratory Halls = Universities = Colleges ~ Maseum + Art Gallery ' ~ Research Building = Observatory b + goraioa Range + Airport Terminal and Ancillary ‘Transportation Terminal Marina + Production = Warehouse ~ Factories + Packing and Processing Plant - Brewery - Abettoir ~ Cold Storage Building + Sports ~ Sports Complex. - Stadium Judiciary == Counts + Religious = Crematorium = Mosque = Church ~ Temple = Mausoleum + Memorial Monument + Medical -- Hospitals and Medical Centres - Nurses Home = Clinics ! | + Miltary + Army Camps and Bracks | ble Uties- Fre Station - Prison = Police Station + Petrol & Gas = Petroleum and Gas Plant + Any Other Buildings Of Exceptional Character And Complenity iil) Category C Extensions Alterations, Adaptation, Modifications and Renovations Conservation and Restoration Associsted Demolition Works 1640 42 43 CATEGORIES OF PROJECTS (Cont'd) Building Works (Cont'd) Explanatory Notes Applicable To Building Works In Categories A, B & C Above + Demolition and piling works shell be considered under the respective categories of Building or Civil Engineering Works irespective of whether they are tendered separately or form part of the tender documents for the Building or Civil Engineering Works. However, if the demolition or piling works is tendered as a Separate package, the Cost of Works used as the basis of fees calculation for demolition or piling works shall aot be grouped together with that for Building or Civil Engineering Works. The above principle shall also >be applicable for any work which does not form part of the maain tender but treated as a separete package; + Infrastructure Works under Category A - Building Works but outside the boundary lot of each unit shall be treated separately under Civil Engineering Works; + Infrastructure Works and External Works within the scope of the Building Contract in Categories B and C shall be considered as part and parcel ofthe respective Building Works; + All Civil Engineering Works within the boundary lot of each unitin housing scheme shall formn part of the Building Works; and + For the purpose of arriving atthe cost of repetitive unt, the fotlawing notes shall apply: — ~ A single unit shall be computed by including the total cost of all the builders works, built-in fittings, integral services and installations, site and external warks and other services serving the immediate site fon Which the units are constructed for all units that are repeated and dividing it by the total number of repeated units; = pair of semi-detached houses shall be considered as two units; ~ _ aunit in arow of terrace houses shall be considered as one design. End or corner units in a row of terrane lhouses shall be considered as another design; = a Block of flats shal be considered asa single unity and ~ the handling (mirror image) of plans or otherwise identical type plans of standard units shall be considered as a repetitive unt Civil Engineering Works (@ Category General Civil Engineering Works eg, roads, drains, earthworks, water reticulation ete. (b) Category Reinforced concrete work, structural steel work and buildings forming part of the civil engineering contract e.g. bridges, jetties, ports etc. ‘Specialist Works ‘The following are normally included as part ofthe Building Works or Civil Engineering Works and are handled by Specialist Consultants: (Mechanical And Electrical Works Electrical Low Teasion and High Tension ‘Telephone and Communication System Plumbing Installation Air Conditioning and Veatiletion Heating System Lit Fire Protection Scourity Systems Gondola Wwi ea, ”" 40 ‘CATEGORIES OF PROJECTS (Cont'd) 43 ‘Specialist Works (Cont'd) a Mechanical And Electrical Works (Cont'd) Generator Set Swimming Pool Equipment ‘Waste Compactor Kitchen Equipment Conveyor Belt Baggage Handling System Laméry Ges Installation Building Automation Services ‘Audio Visual Public Address Stage Equipment Close Circuit 'V Hospital Equipment Petrochemical Industry Works i)" Interior Design Works Built-In Cabinets ‘Loose Furniture Curtains Carpets Bedsheess Artworks and Decorative Light Fitings Gi) Landscaping Works + Soft Landscaping - trees, shrubs, gronnd creepers et, + Hard Landscaping - concrete works for fountains ete. + Playground Equipment @) Others + Information Technology and the like 18PART BMw @ © ‘ 8 SCALE OF FEES FOR BASIC SERVICES PART B ‘The percentage of fees payable to the CQS for basic services shall be as follows: Building Works - Category A ‘No. Of Units Of Same Design % Of Fees Of The Total Cost Of Works 1Unit RMI,000 Or 1.5% of Total Cost OF Works ‘whichever is the higher. 274 to 10% 1.25% int to som 1.00% S18 to 100% 0.95% 1018 and above 0.90% Building Works - Category B Total Cost Of Works Basis Of Fees Calculation ‘RM1,000,000 and below RMIS,000 Or 3.00% of Total Costs of Works 'RM1,000,001 - RM3,000,000 'RM3,000,001 - RMS,000,000 'RMS,000,001 - RM7,500,000 M7,500,001 - RM10,000,000 RMIO,000,001 - RM20,000,000 ‘RM20,000,001 - RMS0,000,000 ‘RMS0,000,001 - RM100,000,000 ‘RM100,000,001 - RM250,000,000 Over RM250M ‘Whichever Is The Higher ‘RM3O,000 + 2.75% in excess of RMI M -RM8S,000 + 2.50% in excess of RM3 M ‘RMI35,000 +2.19% in excess of RMS M. RMI88,750 + 1.80% in excess of RMT.5 M RM233,750 + 1.55% in excess of RMIO M. RM388,750 + 1.30% in excess of RM20 M RM778,750 + 1.25% in excess of RMSOM RM1,403,750 + 1.10% in excess of RMIOO M RM3,053,750 + 1.00% in excess of RM250 M 19@ © » ae SCALE OF FEES FOR BASIC SERVICES (Cont'd) Building Works - Category C ‘Total Cost Of Works Basis Of Fees Calculation -RM1,000,000 and below RM17,500 Or 3.50% Of Total Costs OF Works ‘Whichever Is The Higher RMI,000,001 - RM3,000,000 RM35,000 + 3.25% in exoess of RMI M- 'RMG3,000,001 - RIM5,000,000 'RMI00,000 + 3.00% in excess of RM3 M 'RMS,000,001 - RM7,500,000 RMI60,000 + 2.75% in excess of RMS M 'RM7,500,001 - RM10,000,000 RM228,750 + 2.50% in excess of RM7.5 M 'RM10,000,001 - RMI5,000,000 RM291,250 + 2.25% in excess of RM10 M ‘RM1S,000,001 - RM25,000,000 RIM403,750 + 2.00% in excess of RMIS M Over RM25. M ‘RM603,750 + 1.75% in excess of RM25 M Explanatory Notes Applicable To Fees Charged For Building Works To Categories A, B And C ‘Where Specialist Consultants are appointed by the Clients for the respective works (mechanical and electrical works, interior 4esign works and landscape works), the Cost of Works for the calculation of fees shall be adjusted accordingly as defined under Section Il - Costs of Works. Explanatory Notes Applicable To Fees Charged For Repetitive Building Works Under Category B Only (Where there is more than one unit of the same design in all respects to be repeated inthe construction of subsequent nits on the same site and under a single building contract for which standard type of drawings, specifications end Bills of Quantities and other documents are used, the fees for the preparation of Bills of Quantities [Stage (b) - (45%6)] percentage of fers payable based on Cost of Works shall be reduced in the subsequent units in accordance ‘with the following: Building Unit For The Bereentage Of Fees Pavable Based. ‘On Cost OF Works, Original Unit 100% (Full Fees) 204 Unit 65% Of Full Fees 3 Unit 55% OF Full Foes 48 Unit 45% OF Full Fees ‘st Unit and subsequent units 40% 07 Fall Fees Notes: + The definition of buildings of 'same design in all respects’ shall mean thatthe buildings are same in design, shape, size, storey height and total height, However, ifthe buildings differ in the foundation, window and door details or internal layout (without any structural difference), these buildings shall be considered as same design in all respects’ and shall be subject to repetitive Scale of Fees except for the non-repettive clements which shall be subjected to the normal Scale of Fees, + Proliminaties and External Works being non-repetitive shall be paid full fees. + The reduced fees for repetitive units shall be applicable for repetitive buildings in a project as defined above. (i) The reduction in foes for repetitive buildings is only applicable to the Preparation of Bills of Quantities and other tender documents (Stege (b) - (45%)]. Fees for other services (55%) shall be paid in fall, 2010 SCALE OF FEES FOR BASIC SERVICES (Cont'd) () Civil Engineering Works - Category I ‘Total Cost Of Works Basis Of Fees Calculation RMI,000,000 and below RMI12,500 Or 2.50% Of Total Costs OF Works ‘Whichever Is The Higher RNI1,000,001 - RM3,000,000 [RM25,000 + 2.25% in excess of RMI M -RNG,000,001 - RMS,000,000 'RM70,000 + 2.00% in excess of RM3 M RMS,000,001 - RM7,500,000 RM110,000 + 1.659 in excess of RMS M RM7,500,001 - RM19,000,000 ‘RMIS1,250 + 1.35% in excess of RM7.5 M RM10,000,001 - RIM20,000,000 RMI85,000 + 1.15% in excess of RM1O M ‘RM20,000,001 - RMS0,000,000 'RMG300,000 + 1.00% in excess of RM20 M (Over RMSOM 'RM600,000 + 0.90% in excess of RMSOM @ Civil Engineering Works - Category TZ Total Cost Of Works Basis Of Fees Calculation | RM1,000,000 and below RM15,000 Or 3.00% OF Total Costs OF Works | “Whichever Is The Higher RM1,000,001 - RM3,000,000 [RM3O,000 + 2.75% in excess of RMI M. ‘RWG,000,001 - RM5,000,000 RMB5,000 + 2.50% in excess of RM3. M ‘RMS,000,001 - RM7,500,000 ‘RMI35,000 + 2.15% in excess of RMS M RMT,500,001 - RM10,000,000 RMI88,750 + 1.80% in excess of RM7.5 M RM10,000,001 - RM20,000,000, RM233,750-+ 1.50% in excess of RMLO M 'RM20,000,001 - RMS0,000,000 ‘RMBS3,750 + 1.30% in excess of RM20 M Over RMSOM RMI773,750-+ 1.20% in excess of RMSO M () —_Explanatory Notes Applicable To Civil Engineering Works @ Where the OQS is engaged to provide Quantity Surveying Services for Building Works in a Civil Engineering ‘project (including External Works) the respective Schedule of Fees for Building Works shall apply. (@) Where more than one category of Civil Engineering Works are involved then the Scale of Fees for the category o- Civil Engineering Works with the highest total value shall be applicable. (Gi) Where the ©QS is engaged to provide Quantity Surveying Services for the whole of a Civil Engineering project, the fee in respect of any Building Works and including related External Works of which the Bills of Quantities i: prepared based on the SMM for Building Works shall be based on the Scale of Fees for Building Works. 2r a a = ae LO SCALE OF FEES FOR BASIC SERVICES (Conta) (@ Explanatory Notes Applicable To Building Works And Civil Engineering Works ‘Where there are more than one category of buildings in cither Building Works or Civil Engineering Works, the Scale of Fees {for the category of buildings with the highest total value shall be epplicable. (Mechanical And Electrical Works (@_ForMechanical end Electrical Works which are included under the Building Works or Civil Engineering Works, the Scale of Foes shall be referred to the respective Scale af Fees under the various categories of projects. (@) a CQSiis appointed under separate agreement to execute fall Basic Services for Mechanical and Blecteical Works ‘under a seperate package and not part of the Building/Civil Engineering Works, the fees shall be as follows: Tualeasorwias «| Ba ove Caen 100 sw 588903201 Ot ae OF iolresare sou -rscenan scone 204 ea of 04 s36.¢n001-ns.000 rot 0 +2256 ef HM sat nN sna soto +20 ae oR sar so.n -roao.00 mensosiamncmernesn | sinter copa sata sis exo OM ove R404 ssn60= 129% nase ef 0 © Interior Design Works @ For Intecior Design Works which are included under the Building Works, the Scale of Fees shall be referred to the respective Scale of Fees under the various categories of projects Gi) Ifa CQS is appointed under a separate agreement to execute fill Basic Services for Interior Design Works under a separate package and not part of the Building/Civil Engineering Works, the fees shall be as follows: - ‘Total Cost Of Works Basis Of Fees Calculation RMI, 000,000 and below RMI7,500 Or 3.50% OF Total Costs Of Works ‘Whichever Is The Higher RMI,000,001 - RM3,000,000 RM3S,000 + 3.25% in excess of RMI M RM3,000,001 - RM3,000,000 RM100,000 + 3.00% in excess of RM3. M RMS,000,001 - RM7,500,000 RM160,000 + 2.75% in excess of RMS M RM7,500,001 - RM10,000,000 RM228,750 + 2.40% in excess of RM7.5 M (Over RMIO M RM288,750 + 2.25% in excess of RMIO M 2210 oO 20 2a 22 ae ei ro aap a ‘SCALE OF FEES FOR BASIC SERVICES (Cont'd) Landscaping Works (Soft And Hard) (For Landscaping Works which are included under the Building Works or Civil Engineering Works, the Seale of Fees shall be referred to the respective Scale of Fees under the various categories of projects. (i) 1a CQS is appointed under a separate agreement to execute fill Basic Services for Landscaping Works under @ separate package and not part of the Building/Civil Engineering Works, the fees shall be as follows: - ‘Total Cost Of Works Basis OF Fees Calculation ‘RMi,000,000 and below RM16,250 Or 3.25% Of Total Costs OF Works ‘Whichever Is The Higher ‘RMI,000,001 - RM3,000,000 RM32,500 + 3.00% in excess of RMI M 'RM3,000,001 - RMS,000,000 RMS2,500 + 2.75% in excess of RM3 M 1RMS,000,001 - RM7,500,000, RMI47,500 + 2.50% in excess of RMS M RM7,500,001 - RM10,000,000 ‘RM210,000 + 2.25% in excess of BM7.5 M Over M10 M RM266,250 + 2.00% in excess of RM10 M SCALE OF FEES FOR CONTRACTS BASED ON PROVISIONAL BILLS OF QUANTITIES ‘The additional fees under this clause refers to the cemeasurement of provisional Bills of Quantities in respect of original scope of works including normal variations under the contract for Building Works and Civil Engineering Works where the [project is tendered on full provisional Bills of Quantities, duc to lack of drawings necessery for the preparation of firm Bills ‘of Quantities and the urgency of the project as required by the Client. ‘The method of calculating the Additional fees shall be based on the Formula for the Calculation of Additional Fees for Re- ‘Measurement of Provisional Quantities as below:= Expenditure of other PC. and Prov, Sums finalised by remeasarement (excluding those ‘Total Fee for Basic Services for which B.Q. was prepared by CQS for tender) In respect of Works within X 35% X $0% X Original Scope of Works (OSW) Base Cost of Works for calculation of Additional Fee ‘The entitlement for the Additional Fees is subject tothe following:- (@ The 0QS is appointed for fll basic services, (B) Before commencing on the measurements of provisional Bills of Quantities, the CQS must obtain written approval from the Client since the Client has to bear the additional fees wihich must be weighted against the saving in time if tenders are to be called on firm Bills of Quanttics. (©) The entitlement for Additional Fees is applicable to the remeasurement of provisional Bills of Quantities sections ot items of works which are traditionally measured as firm, and full Additional Fees are payable if all such sectioav/items of works are measured as provisional. 2320 SCALE OF FERS FOR CONTRACTS BASED ON PROVISIONAL BILLS OF QUANTITIES (Conta) 22 The entitlement for the Additonal Fes is subject tothe following (cont’):= 3 (@ The Coss of Works shall exclude the folowing sections: - ‘ (Preliminaries and general items traditionally measured as Lump Sum, e.g, Plumbing; Gi) Works which are Traditionally Measured Provisional such as Piling Works, Rock Excavation, Removal of| Unsuitable Soil and External Works; (ii) 213 of Costs of Works under Prime Cost (PC) and Provisional Sums for M é E and other Specialist Works; Gv) Expenditure of other Prime Costs (PC) and Provisional Sums for which no Bills of Quantities are prepared by COS; (0) Works Outside Original Scope of Works which have not been included inthe tender documents but issued as variations to the Contractor during the implementation ofthe werks such as additional builings, additional floors andthe like (vi) 23 Lump’ Sum items (not in accordance with the provisions of the Standard Method of Measurement of Building Works (SMM) published by the Institution of Surveyors Malaysia); (il) Variation of Price/Fluctutioa based on the formule and price indices for the materials produced by the Siatistics Department at monthly intervals; (ii) Loss and Expense Claims due to extension of time; and Gx) Any other claims. 30 PERCENTAGE OF FEES PAYABLE 3.1 Tho percentage of fees payable to the CQS shall be as follows: = | categories oF Projects ] Stage of Services | Percentage (C4) of Fees Payable Building Works (@) Preparation of Preliminary Estimates (Cetegories A, B And C) and Cost Plans 10% i | Givil Eagincering Works | (®) Preparation of Bills of Quantities and other | (Categories | And I) | 7 tender Documents 48% Mechanical And Blectrical Works (© @ Preparation of Tender Reports 3% Interior Decoration Works (Gi) Preparation of Contract Documents 4% Landscaping Works (@) Valuation of Works in progress for Interim Valustions(Certfictes incloding measurement of Variations 20% | (© Preparation of Final Accounts 15% ‘TOTAL SERVICES: 100% 32 Explanatory Notes Applicable To Percentage Of Fees Payable @ (b) ‘Fees for Preparation Of Preliminary Estimates And Cost Plans ‘Major revision of Preliminary Estimates and Cost Plans due to amendments to layout and scope of works shall not ‘exceed five (5) numbers, otherwise the CQS is entitled to claim additional fees under Additional Services. Fees For Preparation of Bills of Quantities And Other Tender Documents @ [the Bills of Quantities is prepared by others and the Client instructs the CQS to incorporate the completed Bills of Quantities supplied by the Client without any checking or amendments to be done by the CQS, then the CQS is not entitled to fees for Stage (b) Preparation of Bills of Quantities and other tender documents in respect of the Cost of Works included in the said Bills of Quantities. "However, the CQS is entitled tothe foes in respect of the Cost of Works included in the said Bills of Quantities under the Basie Services and ‘Additional Services, 2430 32 a Se ee & PERCENTAGE OF FEES PAYABLE (Cont'd) ‘Explanatory Notes Applicable To Percentage Of Fees Payable (Cont'd) © © @ © 0 ‘Fees For Preparation of Bills of Quantities And Other Tender Documents (Cont'd) (i) The CQS shall not be liable for the measurements in the Bills of Quantities supplied by the Client. (Gil) The Client shall ensure thet the CQS is provided with sufficient number of sets of drawings for the preparation of Bills of Quantities. Fees For Preparation of Tender Report ‘The fees is inclusive of pricing Bills of Quantities for Competitive Tenders Fees For Valuation Of Works In Progress ‘The CQS sball be entitled to be paid the fees for this stage in proportion to the value of interim peyments made to the Contractor which includes value of work done and materials on site; materials off site, variation of prices, variations and other items allowed to be paid under the contract. Fees For Preparation of Final Accounts If there is any dispute in the account which may possibly lead to arbitration or litigation, the disputed section shall be considered as uncompleted and the quantum of fees proportionate to the disputed amount may be retained by ‘the Client. ‘The CQS should be allowed to claim progressively depending on the progress of the Final Accounts in relation to the Anticipated Final Cost of the project. Foes For CQS Appointed For Partial Services (Fees For CQS Appointed For Pre-Contract Services Only Ifa CQS is appointed for Pre-Contract Services only Le, Stages (2) to (6) only, the total fees is 65% of the total fees for full services and the Cost of Works is as defined under Definitions Section II - General Conditions of Engagement, clause 1 (i) Fees For CQS Appointed For Post Contract Services Only ‘If CQS is appointed for Post Contract Services only ie. Stages (@) and (e) only, the total fees is 35% of the ‘otal fees for full basic services and the Cost of Works is as defined under Definitions of Section I - General Conditions of Engagement, clause 1. In addition to the above the CQS shall be paid an additional 10% ofthe total fees for full Basic Services for ‘the Preparatory works prior to commencement of his services. (Gi) Fees For CQS Appointed For Preparation Of Final Accounts - Stage (¢) If OQS is appointed for Stage (¢) Preparation of Final Accounts which may also involve part of Stage (4) ‘Valuation of Works in progress, the total foes is 25% of the total fees for full basic services and the Cost of ‘Works is as defined under Definitions Section II - General Conditions of Engagement, clause 1 25& ie: cs ss, 30 PERCENTAGE OF FEES PAYABLE (Cont'd) 33 The percentage of fees payable tothe CQS for projects under Turnkey or Design and Build shall be as follows: = Categories Of Projects Stage of Services Percentage (%) of Fees Payable Building Works (@) Preparation of Preliminary Estimates end (Categories A, B And C) Cost Plans 10% Civil Engineering Works (©) Preperation of Bills of Quantities and (Categories LAnd I) other Tender Documents necessary for submission as a bid document 45% Mechanical And Electrical Works (© Pacing of Bills of Quantities 5% Interior Decoration Works (@) Preparation of Contract Documents 5% Landscaping Works (©) Preparation of valuation of Works in progress {including variation works for claims for interim Scheduled Payments. 25% (9) Preparation of Final Accounts 10% ‘TOTAL SERVICES: 100% 34 Bsxplanatory Notes Applicable To Percentage Of Fees Payable (2) Brplanatory notes as listed in item 3.2 above are applicable except for item 3.2 (c) and (P) are not epplicsble. 40 SCALE OF CHARGES FOR ADDITIONAL SERVICES 4.1 Charges payable tothe CQS for additional services shall be as follows: - ‘Types Of Services Charges @ —-Pre-Contract (Preperation of Feasibility Studies including Income/Expenditure | Time Cost *, Cash Flow. Gi) Preparation of Documents and Reports for pre-qualifications of | Time Cost *. Contractors, (ii) Preparation of Bills of Quantities for works under Specialist | Additional fes of 30% ofthe Total Fees Payable for fll Consultants if CQS is eppointed for the same project and if | Basic Servicesbased on the respective costs of works agreed by the Client. under the Specialist Constants. (sv) Redrafting of Conditions of Contract to meet specific | To be negotiated. requirements by the clieat () Assisting in preperation of tendevbid documents (excluding | To be negotiated, Bills of Quantities) for projects under Turnkey or Design and Build (Wi) Pricing of Bills of Quantities for Negotisted Tenders including | Time Cost * pricing and agreeing Schedule of Rates. (vil) Preparation of Cost Analysis based on the Accepted Contract Sum. | Time Cost *. (iit) Preparation of Tender Price Index based on the Accepted | Time Cost Contract Sum. 26 ecineatneemecet eneSe : ae age ‘et 40 SCALE OF CHARGES FOR ADDITIONAL SERVICES (Cont'd) 4.1 Charges payable to the CQS for editional services shall be as follows: - (Cont'd) ‘Types Of Services Charges (©) Rost-Contract ()——_Remeasurement of the whole or part of the works due to either | The ites duc shall be based on 45% of gross value of replanning or internal layout or repositioning of the structure or | measured omissions and gross value of measured ‘due to change of use of the building or structare and redesign of | additions, both gross value added tothe Cost of Works to ‘any of the structural clement in the works. caloulate the fes. (i) Remeasurement of Works for Contracts based on Provisional | The method of calculating the Additional Fees under Bills of Quantities this provision shall be based on the Formula fr the calculation of Additional Fees as below:- * The provision under this item is for additional fees in Building Works for the remeesurement of provisional Bills | Works outside ‘Total Fee of Quantities irrespective of entie additions ar for works | OSW finalised by for Basic ‘hich are outside the original scope such as additional | Remeasurement Services bulldings, additional foors and the like allowed under X35 X 50% in respect Provisional Bills of Quantities. The additional services of Waris, Inchde the preperation of Bills of Quantities and in | Costof Works outside finalising the account. hecuecebelil oe + The provision under this item is also epplicable for Civil | Note: OSW refers to Original Scope of Werks Engineering Works in respect of works outside Original Scope of Works as defined unde item clause 2.6 (c) such as additional roads, additional bridges and the like. ii) Specific Contractual Advice on Conditions of Contract. To be negotiated, @) Additional Services Under Management Contracts Ifthe client decides to tender on Management Contract, the CQS | Cost of Works below RM20M is entitled to claim additional fees for the following additional | = Adcitional 40% of the Total Fees services: = for Basic Services. * Preperation of Works Contact Packages forthe various tas: | yi) RIV20 M - RMSO M + Preparation of Tender Reports forall he Works Contact Packages. | = Additional 30% dito, + Assist the Management Contractor inthe preparation ofthe Cost of Works over RMSO M Contract Documents foreach Works Contract. Se ceeeatunedne + Evaluation of claims by works contractors for works done. ‘+ Bvaluation of claims by works contractors fr vasiaton works, + Evaluation of claims by works contractors for final account, (8) Services Arising Out OF Determination OF The Contractors | Fees to be on the same basis asthe Basic Services for Employment: - the respective categories of projects and Cost of + Vaan of smpletd Works bythe determined Consactor | Wes tbe as per Cruse 1 -Defins Section 1 + Preparation of new Tender Documents for the uncompleted ae ot eae ‘works (provided there is addtional input) + Preparation of Tender Reports + Proparation of Contract Documents i)” Continuing Professional Services on a Protracted Bass, ¢. delays | To be negotiated, by Authorities. (ii) Attendance at Post Contract meetings beyond the Original | Time Cost +. completion date of the project and any approved extension of time 27age ie ae 40 SCALE OF CHARGES FOR ADDITIONAL SERVICES (Cont'd) 4.1 Charges payable to the CQS for addtional services shal be as follows: - (Contd) “Types OF Services | Charges (©) Rost-Contract (Cont'd) (vii) Evaluation of Loss and Expense claims by the Contractor basedon | Time Cost *, the actual costs (@) __Prepertion of Bills of Quantitis and other Tender Documents for | Fees tobe based on the fees for Basie Services for the Defects and Outstanding Works to be carried out by a separate | respective categories of project. Contractor or the valuation of defective works for deduction from ‘the Contract Sura ofthe defaulting Contractor. (©) __- Services for making good works damaged by fie etc. ‘To refer to fees for Basic Services for the respective categories of project (xi) Preparation of Cost Analysis based on the Final Contract Sum, | Time Cost *, © Spectal Services @ Value Engineering Wotks if carried out before or after tenders | Time Cost *, are ewarded. @ Preparation and Attendance for Arbitraton/ Mediaton/Litigation. | Time Cost *. (i) Project Management. Cost OF Works (Geferto Appendix A - Scope of Service for Project Management) | Below RMIO M=RM1S,000.00 Or 3% of the cost ‘of works whichever isthe higher 'RMI0,000,001 - RMB0,000,000 = 2.75% 'RM30,000,001 ~ RMS0,000,000 = 2.50% 'RMS0,000,001 - RM100,000,000 = 2.25% Over RMI00M 2.00% () Certification of project accounts for loan purposes ‘To be negotiated on Fee or Time Cost *, (@) Evaluation of Contractor's Claims. ‘To be negotiated on Foe or Time Cost *, (+i) Technical and Construction Costs Auditing, ‘To be negotiated on Fee ot Time Cost *. (i) Risk Management. ‘To be negotiated on Fee or Time Cost (viii) Facilities Management. ‘To be negotiated on Fee or Time Cost *. (@) Construction Management. ‘To be negotiated on Fee or Time Cost *, @®) Condition Survey ‘Tobe negotiated on Fee or Time Cost * * Calculation Of Fees Based On TIME COST Basic Annual Maltiplying Time Cost = Salary PerAnmum X ‘Factor 1800 Hours Per Anum No. OF X Working Hous (@) Basic Salary for the respective categories of staffto be agreed prior to signing of the Agreement, (©) Multiplying Factor to be agreed between the Client and the CQS. (©) Number of working hours to be agreed prior to commencement ofthe additional services. 28PART C10 Ml 20 24 ae PART C PAYMENT FOR REIMBURSABLE EXPENSES. 2 In addition to the fees payable to the CQS for any ofthe services rendered, the OQS shall forthe purpose of the Project also be entitled to be reimbursed for the following: ~ ‘Type of Expenses ‘Reimbursement Payable @ | Lithography (xcept for two sets of all documents for the Client to be | Based on the rates to be agreed by the Client five of charge, all other printing, reproduction or cost of | and the CQS documents, drawings ete, for’ all other consultants, contractors, sub-contractors: and suppliers are to be paid by the Clea), (©) | Hotel and Travelling Expenses(Including toll charges). (Current rates for Government Grade 148 Officers (© | Advertisement of tender notices, telegrams, facsimile, | Acmal Amount incurred by the CQS telexes, outstation telephone calls, postage charges and courier charges for sending documents or other ‘communication charges at the request of the Client. (© | Special software programme as requested by the Client. ‘Actual Costs incurred by the CQS (©) | Resident site staff as agreed by the Client. Basic Salary Multiptying x Factor agreed 150 hours by the Client per month, and the CQS @® | Professional Indemnity Insurance if required by the Client | Actual Costs of premium for the insurance coverage incurred by the CQS as agreed by the Client @ | Service Tax Actual Amount to be paid by the CQS to ‘Customs Departimeat (@) | Any other items not included above but required by the CQS | Actual Costs incurred by the COS to complete his services but subject to the approval of the Client. PAYMENT FOR REMEASUREMENT OF WORKS DUE TO ALTERATION OR MODIFICATION OF DESIGN Tf after the completion by the CQS of his basic services under the Schedule of Fees Part A - clause 2 st any time after execution of an agreement between the CQS and the Client, any messurement whether completed ot in progress or any specification or other document prepared in whole or in part by the CQS are required to be modified or revised by reason of instructions received by the CQS fom the Clieat or others acting on behalf ofthe Client or by reason of circumstances Which could not reasonable have been foreseen by the CQS, the CQS shall be paid an additional peyment by the Client for ‘making any necessary modification or revision and for any consequential reproduction of documents end the fees due wall 'be based on the Schedule of Fees Pat B - sub-clause 3.1(6) 2. 45% of the gross value of measured omissioas end onthe sgross value of measured additions, both gross values added to the Cost of Works to calculate the fees provided such ‘modification or revision be limited tothe following: ~ (@) —_remessurement of the whole or part of the works due to either replanning of internal layout or repositioning of the structure or due to change of use of building or structure; and ©) redesign of any of the structural element in the works. 2940 4a 42 43 44 45 30 are ee RP tie PAYMENT WHEN WORKS ARE DAMAGED OR DESTROYED ‘fat any time either during the execution of the works or before the commencement of the Defects Liability Period/Petiod of Maintenance any part of the works or any materials, plant or equipment whether incorporated in the Works or not is damaged or destroyed not dus tothe negligence on the part of the CQS, who shall be paid aa additonal payment in respect of any expenses incurred or additional work required by the Client to be carried out by the CQS as a result of such damage or destruction. PAYMENT FOLLOWING TERMINATION OR SUSPENSION BY THE CLIENT ‘nthe event of the termination ofthis Agreement (unless such termination shall have been occasioned by the default of the CQS or the suspension of the Works by the Client) the CQS shall be paid the following sum (les the amount of payments previously made to the CQS):- (@) a sum deductible from the percentage of work completed up till the time of termination or suspension; (©) A Gisruption charge equal to one sixth ofthe difference between the sum which would have been payable tothe CQS ‘under the Schedule of Fees Part B - clause 1 - Scale of Fees for Basic Services but for the termination or suspension and the sum payable under (a) above, provided the works have advanced beyond the preliminary stage, and (©) Amounts due to the CQS under eny other clauses of Part B and Part C. ‘Provided that the CQS shall accept the said payments by the Client as full and complete settlement of all his claims for payment under or arising out of this Agreement, In the event that the CQS is required to recommence the Works suspended by the Client, the CQS shall be paid for the Performance of his professional services the sum payable to the CQS under the Schedule of Fees Part B ~ clause 1, the ‘payment under sub-clauses 4.1 (a) and (c) of this Part being treated as payment on account. Provided that the QS shall retain as an additional payment the disruption charge referred to in the Schedule of Fees Part B = sub-clause 4.1 (6) ‘Where the tendering of the Work (or any part thereof) is likely to be delayed for more than nine (9) months or postponed atthe request ofthe Client, the CQS shall be paid according to the Scale of Fees described in the Schedule of Fees Patt B - clause 1 but the Cost of Works applicable shal be the estimated Cost of Works (or any relevant part thereof) and agreed to by the Client atthe time of completion of the particular stage. (@) Where works are suspended or postponed after the tenders have been called the fees payable to the CQS sball be computed based on the Cost of Works as defined under III - Coneitions of Engagement - Definitions, (©) Where tenders are recelled and the Works are subsequently resumed, the fees payable to the CQS shall be as follows: - (Stages (a), (b) and (¢) as listed under the Schedule of Fees Part B - clause 3 - Breakdown of Percentage of ‘Charges as computed in sub-clause 4(a); ‘Stages (d)~ (2s listed under the Schedule of Fees Part B - clause 3 - Breakdown of Percentage of Charge - {o be computed based on the Contract Sum for the Works at the time of resumption and in accordance with the Definitions of Cost of Works under II - Conditions of Engagement. If the CQS is required to perform any additional services in connection with the resumption of his professional services in accordance wit this Part sub-clause (2), the CQS shall be paid in respect of the performance of such additional professional services in accordance, as the case may be with Part B - clause 4 of and any appropriate reimbursement in accordance with Part B- clause 3. PAYMENT FOLLOWING TERMINATION BY THE CONSULTING QUANTITY SURVEYOR In the event ofa termination by the CQS, the CQS shall be entitled to be paid the sums specified in this Part C sub-clause 4.1 (®, (b) and (¢) less the amount of payments previously made to the CQS. 30APPENDICES)PE OF PROJE( 1.0 PREPARATION OF CLIENT'S BRIEF comprising: + Schedule of Areas + Description of Activities 20 3.0 40 50 = Specifications and Standards of Finishes, Materials and Workmanship = Standard of Facilities - Client Constraints and Procedure Requirement ~ Liquidated and Ascertained Damages and other Client's Conditions = Site Conditions and Location Constraints DESIGN EVALUATION = Design Audit = Design and Construction Programme, Activities Scheduling + Comparison of Proposal with Client’s Brief = Monitoring Design Development + Evaluating Phasing of Work FINANCIAL EVALUATION = Anditing Bills of Quantities = Aditing Rates and other Financial Proposels + Preliminary Financial Discussions = Financial Negotiations = Building Costs Analysis CONSTRUCTION STAGE MONITORING = Aifending Site and Progress Meetings - Attending Design Team Meetings = Site Inspections = Schedule Monitoring - Site Attendance Liaison with Contractors + Completion and Handing over Activities + Monitoring Defects Period + Verification of Making Good Defeots FINANCIAL MONITORING AND CONTROL, = Verification of Progress Payments, - Verification of Scope Changes and Variations = Verification of Final Certificate All APPENDIX A.aaa Dried esate ar = Sa rae MEMORANDUM OF AGREEMENT. for the Appointment of Consulting Quantity Surveyor for Professional Quantity Surveying Services Betwoen And Published 2004 ‘Lembaga Juruular Bahan Malaysia “Hakeipta Terpelinara ‘Harga: RMIO.00