STANDARD FORM OF CONTRACT

PROF MADYA NGAH YAHYA EMBONG

FORMS OF CONTRACT
Standard forms Model forms Modified forms Ad hoc [because of situation / not planned in advance] Bespoke [specially drafted/ according to the needs of individual project]

STANDARD FORM OF CONTRACT WHAT IS STANDARD FORM OF CONTRACT? DEFINATION Building Contract Dictionary (Blackwell Science. CHARACTERISTICS Arrived at through a process of consultation & negotiation between representatives of various sectors of the industry like professional institutions & contractors associations The form set out the terms & conditions on which the contract between the parties are to be executed The terms & condition are generally suitable for a wide range of common projects or jobs . THEY ARE PREFERABLE TO SPECIALLY DRAFTED CONTRACTS BECAUSE THEY ARE INTENDED TO BE COMPREHENSIVE & AVOID MOST OF THE PITFALLS WHICH SURROUND CONTRACTUAL RELATIONS IN THE BUILDING INDUSTRY. third edition) defines standard form as : A PRINTED FORM OF ONTRACT CONTAINING STANDARD CONDITIONS WHICH ARE APPLICABLE (OR CAN BE MADE APPLICABLE BY THE USE OF ALTERNATIVE) TO A WIDE RANGE OF PROJECTS.

ADVANTANGES OF STANDARD FORM Familiarity Fair to all parties Less ambigious Cost & time saving TYPES OF STANARDS FORMS In Malaysia. the two (2) most commonly used are : JKR (PWD) Standard Form of Contract PAM Standard Form of Contract The forms are widely used for government projects (public sector) & the latter for private projects. Figure 1 completes the picture on the use of standard form of contracts locally & internationally .

e.ME 1/94 TNB Conditions. LPK.STANDARD FORMS OF CONTRACT GOVERNMENT/PUBLIC SECTOR PRIVATE SECTOR INTERNATIONAL CONTRACTS FIDIC Conditions JKR/PWD 203 (Rev 2007) without quantities 203A (Rev 2007) For NSC 203P (Rev 10/83) For Nominated Suppliers PWD form DB/T (2000 Edn) for Design & Build Turnkey Contract PWD (2010) ? Latest revison MISCELLANEOUS CIDB Form for building contracts 2000 Edn Modified JKR/PWD Forms. 2002 . BUILDING WORKS PAM 2006-Without Quantities PAM 2006-With Quantities PAM NSC 2006 Figure 1 : Standard Form of Contract (Part II) ICE Conditions IEEE Conditions ImechE Conditions JCT Conditions CIVIL ENGINEERING WORKS IEM Conditions -IEM.CE 1/89 -IEM. etc Source: Adapted from.CES 1/90 M&E WORKS IEM Conditions -IEM. ³ Engineering and Construction Contracts Management. Law and Principle´.g. MHA etc. Harban Singh KS.

e. the initial set of Standard Forms were drafted by the various government agencies for works in the public sector i.e. Im and Kheng. Due to progress of development projects.BACKGROUND Historically. earlier version of PWD form modeled on the RIBA Form of Contract 1931 and the latest revisions coming in 1983. many other professional bodies published their own version of standard forms to suit the current development and modernisation and variation of procurement methods i. 6 . 2000). IEM was first published in 1989 and PAM in 1969 (Lian.

GOVERNMENT / PUBLIC SECTOR Public Works Department PWD Form 203 (Rev 2007) without quantities. PWD Form 203A (Rev 2007) with quantities. 7 . PWD Form 203N (Rev 2007) for Nominated Sub-Contractors.

PWD Form DB/T for Design and Build Turnkey Contracts.Government / Public Sector Public Works Department (cont·d) PWD Form 203P (Rev 10/83) for Nominated Suppliers. 8 .

Government / Public Sector (cont d) Construction Industry Development Board CIDB Form for Building Contracts 2000 Edition. 9 . Standard Proforma for Contract Administration (For use in conjunction with The CIDB Standard Form of Contract for Building Works).

B (NSC) / 2002] (To complement the Standard Form of Contract for Building Works). 10 . Model Terms of Construction Contract for Subcontract Work (2006) [CIDB / CICC].Government / Public Sector (cont d) CIDB Standard Form of Sub-contract For Nominated Sub-Contractor [Form CIDB.

Model Terms of Construction Contract for Subcontract Work. FIDIC or JCT contracts. PAM. CIDB. 11 . IEM. The generic drafting style and flexibility mean it can be used as subcontract terms with any main contract whether a one-off contract (bespoke & ad hoc) or published ´standard formµ such as the PWD. Intended to be used as part of a generally ¶stand alone· subcontract and not ¶back to back· to any one main contract.

But the question is do we need another public sector standard form? There is presumption that CIDB will replace PWD Standard Forms? 12 .CIDB Forms CIDB published its own version of Standard Forms for building works (main contract and sub contract).

 Drainage and Irrigation Department (DID/JPS)  Lembaga Pelabuhan Kelang (Port Klang Authority) 13 .Other Public Sector Forms Some statutory bodies and public sector related bodies utilise the PWD Standard Forms with slight modifications and/or amendments.

PAM 2006 without quantities. PAM NSC 2006 to be used for NSC where the main contract is based upon the above. 14 .Private Sector PAM PAM 2006 with quantities.

PAM Origin Rather than developing and drafting a new standard form on its own. PAM in collaboration with the ISM in 1969 adopted 1963 JCT Standard Form of Building Contract (Reprinted 1968) with modifications to be used for private sector building works through traditional general contracting contract procurement method comprised: 15 .

 PAM/ISM 1969 Standard Form of Building Contract Without Quantities. 16 .  PAM NSC 1970 Standard Form of Contract for Nominated Sub-Contractors to be used with PAM/ISM 1969.PAM [Previous Version]  PAM/ISM 1969 Standard Form of Building Contract With Quantities.

2. 3. 1. Private sector projects 2.PAM 1998 Usage Essentially for : 1. Building works 3. Contracts undertaken through Traditional General Contracting Procurement 17 .

Mainly for Civil Engineering Construction (Second Reprint 1994).CE 1/89.CES 1/90. 18 . Sub-contract for use in conjunction with the IEM Condition (First Reprint 1994).Private Sector Civil Engineering works IEM Condition IEM. IEM Condition IEM.

Sub contract? [absent] 19 . For mechanical and electrical work (First Edition 1994).Private Sector M&E works IEM Condition IEM.ME.

IEE. 20 . IMECHE.e. JCT and FIDIC forms with modifications.IEM Forms Origin Due to rigorous/harsh and pitfalls of the JKR/PWD forms and unsuitability of the PAM forms for engineering and projects. construction infrastructure engineering professionals attempted to employ UK engineering forms i. ICE.

Due to that. Thus. leading to uncertainty.IEM Forms Origin (cont·d) The ´modificationsµ were subject to job specific and ad hoc basis. 21 . IEM attempted to fill in the lacuna by drafting their own Standard Forms started in 1989 for the traditional general contracting. inconsistency and leading to construction disputes.

22 . Mechanical and Electrical works.  Procured under the Traditional General Contracting.IEM Forms Usage  Private sector projects.  Civil engineering.

International Contracts FIDIC family JCT Family IEEE IMechE ECC PPC 2000 23 .

THANK YOU .

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