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Contract Management Under Pam Contract 2006 An Architects Perspective by Ar Joseph Tan
Contract Management Under Pam Contract 2006 An Architects Perspective by Ar Joseph Tan
Contract Management Under Pam Contract 2006 An Architects Perspective by Ar Joseph Tan
As per the title, this paper only seeks to look into the
Architect's role during the management and administration
of the PAM Contract 2006.
The types of information to be managed may comprise (and are also not
restricted to) the following :
- The Contract does not just comprise the Articles of Agreement, where
the Contractural Parties indicate their acceptance but extend to a set of
Contract Documents which Clause 3.1 specifies as the following :
Once issued, the Contractor has to follow the above levels and setting
out. Should there be any errors in constructing the works relative to the
above, the Architect is empowered to either instruct that the errors be
corrected or (subject to the Employer's consent), accepted subject to
any Deductions.
A. The Management of Information. Cont.
Custody of Tender Documents.
- It has already been noted that the Contract Documents should have
been checked and it's also assumed that the building arising out of
these documents should be in full compliance with any statutory
requirements.
It must also be remembered that the Contract allows for the Contractor
to apply for such information and once applied for (in writing), the
Architect is obliged to issue such information within a period which
“does not materially affect the progress of the works”, i.e.; the Architect
has to issue the information in a manner which does not cause any
delays to the Contractor.
A. The Management of Information. Cont.
Again, it is the Architect's job to ensure that the above is issued at the
appropriate time and once issued, that it is checked.
A. The Management of Information. Cont.
- Management of Information is not just the production and assessment
of information between the Architect (as Contract Administrator) and
the
contractual parties.
- Documents like the Works Progamme (Clause 3.5) will normally detail
out the Contractor's Work Process.
- It is also the Architect's job to ensure that the Contractor takes all
precautions and indemnifies the Employer against any damage or injury
to persons and property (Clause 18).
This usually means that the Architect has to check and ensure that the
correct insurance coverage (as required under Clause 19 and 20) are
appropriately taken out.
- Under the PAM Contract 2006, the Contractor is required to submit his
progressive claims at set intervals for the Architect to evaluate.
For those who are intereted in finding out more on this subject, they
may refer to the writer's paper entitled “Architect's Certification under
PAM Contract 2006”.
E. The Management of Change.
- In an ideal world, the building as constructed would be the same
building as conceptualized during tender.
The issuance of such instructions for Variations may only take place
during Construction, i.e.; before the issuance of the Certificate of
Practical Completion UNLESS such a variation is required by a
Statutory Authority or Service Provider (Clause 11.3).
E. The Management of Change Cont.
Where the work is not similar, the Contract allows for valuations at “fair
market rates”, the use of daywork rates or valuations based on actual
cost (Clause 11.6(c) & 11.6(d)).
F. The Management of Completion.
- The ultimate aim of the Contract is for the Contractor to complete the
works in order for the Employer to take possession and use it for its
intended purpose.
- Practical Completion may occur in a single stage, i.e. ALL the Works
are completed and handed over in a single stage OR, it may occur in
multiple stages.
- The stages may not have been planned for prior to entering into the
Contract, i.e.; as with Partial Possession (Clause 16.0)
- Partial Possession under the Contract, may only occur with the
Contractor's consent UNLESS :
a. the Works are delayed and the Architect has already issued a
Certificate of Non-Completion and.
- PAM Contract 2006 requires the Contractor to give written notice to the
Architect, when the Works are practically completed.
Upon receipt of this notice, the Architect has to evaluate this notice and
within 14 days, he has to either :
b. where there are minor defects which do not affect the Employer
enjoying full use of the Building, he may issue the Certificate of
Practical Completion upon receipt of the Contractor's written
undertaking to make good these minor defects OR
Its issuance triggers off a few other steps which also have to be
managed by the Architect, namely :
a. issuance of a Certificate for the release of the 1st half of the retention
sums,
a. all defects occurring within the defects liability period have been
made good and certified with a Certificate of Making Good Defects
followed by the issuance for a Certificate for the release of the
balance of the retention sums,
b. the Final Account has been settled (within the “Period to complete
the Final Account”) and FINALLY,
The delays may arise from the Clause 20 perils, war damage of the
discovery of Antiquities as previously discussed or it may be a result
of acts of omission or commission by the Architect, Consultants,
Employer, Contractor, Nominated Sub-contractor, Statutory Authority
or Service Provider.
The rationale for all the above steps is to ensure that the Contractor
continuously monitors his own progress and that all delays are dealt
with as soon as reasonably possible.
Failure to follow the procedure and time frame may either cause a
Contractor to lose his rights to claim for an extension or lead a
Contract
to suffer from time being set at large.
F. The Management of Contingencies Cont.
- Assuming that all procedures and time frames are followed, the
evaluation and subsequent granting of an extension rests solely with
the Architect. Management of this process also involves reminding the
Employer that any interference on their part in the assessment and
granting of an extension constitutes a breach of Contract.
- Even without disputes, breaches of Contract may still occur and such
breaches of the Contract may result in suspension of the Works by a
Contractor or Determination of a Contractor's Employment by an
Employer OR Determination by an Contractor of his own
Employment.
- Should a dispute arise, PAM Contract 2006 allows for the resolution of
such dispute by the appointment of an independent third party through
the process of :
- Although the above are dependant on a third party, the utilisation of any
of the above Alternative, Dispute Resolution Procedures (including the
appointment of either the mediator, adjudicator and arbitrator) has still
to be in accordance to the procedures set out in the Contract.
G. The Management of Disputes Cont.
- Although the provisions for Adjudication and Arbitration are clearly spelt
out, it must be noted that the introduction of recent federal legislation
may affect the utilisation and validityof these provisions as specifically
allowed for under PAM Contract 2006.
The ultimate intention of this brief look though is to spur all Architects
to examine (or review) their role in managing the Contract with much
greater detail, rigour and precsion.
T H A N K Y O U.