DETERMINATION

GROUP MEMBERS STUDENT ID

SITI NUR AISYAH BINTI AHMAD TARMIZI 2017202268
NURAMIRA FARHANA BINTI AZAHAR 2017202592
AIDDA UMAIRAH BINTI MD RASID 2017204606
CONTENT
1. Suspension of Works (Clause 50)
2. Events and consequences of default by contractor (Clause 51)
3. Termination on National Interest ( Clause 52)
4. Termination on Corruption (Clause 53)
5. Payment upon suspension & termination on National Interest ( Clause 54)
6. Certificate of termination cost ( Clause 56)
7. Events and Consequences of Default by Government (Clause 55)
SUSPENSION OF
WORKS
SUSPENSION OF WORKS (CLAUSE 50)
SUSPENSION OF WORKS (CLAUSE 50) (CONT’D)
CONSEQUENCES OF MUTUAL TERMINATION
( CLAUSE 50.3)

Clause 51.1 ( c ) (i) – consequences of

termination (contractor shall)
 EVENTS AND
CONSEQUENCES OF
DEFAULT BY CONTRACTOR
(CLAUSE 51)
EVENTS AND CONSEQUENCES FOR DEFAULT BY THE
CONTRACTOR ( CLAUSE 51)

A. Default of Obligation

B. Termination

C. Consequences of Termination
EVENTS AND CONSEQUENCES FOR DEFAULT BY
THE CONTRACTOR ( CLAUSE 51)
EVENTS AND CONSEQUENCES FOR DEFAULT BY THE
CONTRACTOR ( CLAUSE 51) (CONT’D)
EVENTS AND CONSEQUENCES FOR DEFAULT BY THE
CONTRACTOR ( CLAUSE 51) (CONT’D)
Clause 51.1 (b)
 CONSEQUENCES OF TERMINATION

If this agreement is
CONTRACTOR GOVERNMENT
terminated under clause
Shall Shall
51.1 (b)
Contractor Shall
Contractor Shall (Cont’d)
Contractor Shall (Cont’d)
The Government Shall
 TERMINATION ON
NATIONAL INTEREST
TERMINATION ON NATIONAL INTEREST
(CLAUSE 52.0 / PAGE 36)
TERMINATION ON NATIONAL INTEREST
(CLAUSE 52.0 / PAGE 36)

Clause 51.1(c)(i)
• Consequences of
Termination for the
Clause 54 Contractor
• Payment Upon
Suspension And Clause 51.1(c)(ii)(b) and (c)
Termination On • Consequences of
National Interest Termination for the
Government
 TERMINATION ON
CORRUPTION,
UNLAWFUL OR ILLEGAL
ACTIVITIES
 TERMINATION ON CORRUPTION,
UNLAWFUL OR ILLEGAL ACTIVITIES
(CLAUSE 53.0 / PAGE 36)
 TERMINATION ON CORRUPTION,
UNLAWFUL OR ILLEGAL ACTIVITIES
(CLAUSE 53.0 / PAGE 36)

Clause 51.1(c)(i)
• Consequences of Termination for
the Contractor

Clause 51.1(c)(ii)
• Consequences of Termination for
the Government
 PAYMENT UPON
SUSPENSION AND
TERMINATION ON
NATIONAL INTEREST
 PAYMENT UPON SUSPENSION AND TERMINATION ON
NATIONAL INTEREST ( CLAUSE 54.0 PAGE 37 )
• Clause 54.1 states that,
Clause 50
- Suspension of
Work
- EOT
- Consequences of
Mutual Termination

Clause 52
- Termination on
National Interest

➢ Payment covered to the Contractor would be based on :

Goods and materials that has Any amount of payment that
Any preliminary items or Cost of protection and removal
Value of work that done before been has been meet by the
works/services that has been of any equipment and facilities
the date of termination ordered/delivered/received Contractor referred to the sub-
completed due to the termination
by the Contractor clause.
 PAYMENT UPON SUSPENSION AND TERMINATION ON
NATIONAL INTEREST ( CLAUSE 54.0 PAGE 37 )

• Clause 54.2 and 54.3 states that ,

➢ Clause 54.2 - The Contractor should refrains from any other description of losses
including loss of profit, damages, claims or whatsoever. Payment that has been made
should be as a full and final agreement and deal between both Parties.
➢ Clause 54.3 - Final account should be prepared and issued by the S.O due to the
termination of the Contract.
 CERTIFICATE OF
TERMINATION COST
 CERTIFICATE OF TERMINATION COST
(CLAUSE 56.0 PAGE 38)
• Clause 56.1 states that,

➢ S.O may proceed with a written certificate stating the Completion Cost and the Final
Account after all the Works has been evaluated.
➢ Will be reviewed in terms of :
➢ Work done following the ➢Amount of direct loss/damage
➢The engagement of other
termination of the Contractor's to the Government due to the
contractors or persons
employment termination by S.O
 CERTIFICATE OF TERMINATION COST
(CLAUSE 56.0 PAGE 38)
• Clause 56.2 states that,

➢ Completion cost consists of :

Payment paid or
Amount paid to the payable to third Sum paid to the sub-
Contractor by the parties engaged by contractors or
Client the Government to suppliers
fulfill the Work
Total amount of loss
Costs of expenditure or damage caused by
or On-Cost charges by the Client due to the
the Government termination of
Contract
 CERTIFICATE OF TERMINATION COST
(CLAUSE 56.0 PAGE 38)
• Clause 56.3 states that,

a) Amount paid under the b) Any addition by the

Contract on completion, Client / Government
any variations which Final Contract Sum under the terms of
resulted in an adjustment consists of : Contract to be dedcuted
of the original Contract from the original Contract
Sum Sum
 CERTIFICATE OF TERMINATION COST
(CLAUSE 56.0 PAGE 38)
• Clause 56.4 and Clause 56.5 states that,

➢ Clause 56.4 - In the Certificate of Termination Cost, have to state the

comparison between the Final Contract Sum and the Completion Cost.

➢ Clause 56.5 - The Certificate of Termination Cost should be same and

certain on the Contractor as the amount of loss or damage included.
 CERTIFICATE OF TERMINATION COST
(CLAUSE 56.0 PAGE 38)
• Clause 56.6 states that,

➢Allowance should be paid for the amount such as :

Costs and expense Cost of supervision Interest and

made by the depreciation on plant
Government
Other usual overhead
charges and profit
 EVENTS AND
CONSEQUENCES OF
DEFAULT BY GOVERNMENT
EVENTS AND CONSEQUENCES OF DEFAULT BY GOVERNMENT
(CLAUSE 55.0 PAGE 37)

• Clause 55.0 states here that,

Contractor may issue The Government

Government fails to
a notice defining the considers the remedy
perform any of its
default by the to be carried out and
obligations which
Government to solve may be agreed by
prevents works to be
the issue within the both Parties from the
done
stipulated time. date of the notice.
EVENTS AND CONSEQUENCES OF DEFAULT BY GOVERNMENT
(CLAUSE 55.0 PAGE 37)

• Clause 55.0 states here that,

The Government fails to solve The Contractor have the right to

the default period specified in terminate the Contract by
the notice in within time profferings written notice to that
stipulated effect
EVENTS AND CONSEQUENCES OF DEFAULT BY GOVERNMENT
(CLAUSE 55.0 PAGE 37)
• Clause 55.0 states here that,

➢ Payment covered to the Contractor would be :

B) Any preliminary C) Goods and materials D) Any amount of

A) Value of work that that has been payment that has been
items or
done before the date ordered/delivered/ meet by the Contractor
works/services that received by the referred to the sub-
of termination has been completed Contractor clause.
THE END