Agreement And Conditions

Of

PAM Contract 2006

(Without Quantities)
 Table of Contents
Page

Articles Of Agreement

Preliminary Recitals

Date of agreement

Parties to agreement and their addresses

The nature of the works and the location

The drawings

Articles

Article 1 Contractor's Obligations 2

Article 2 Contract Sum 2

Article 3 Architect 2

Article 4 Engineer 2-3

Article 5 Quantity Surveyor 3

Article 6 Specialist Consultant 3

Article 7 Definitions 4-7

Article 8 Meanings 7

Attestation/Signatories Of The Parties 8

The Conditions Of Contract

Clause

1.0 Contractor's Obligations 9

1.1 Completion of Works in accordance with Contract Documents 9
1.2 Temporary work and construction method 9
1.3 Contractor's design and responsibilities 9
1.4 Discrepancy or divergence between documents 9

2.0 Architect's Instructions ('AI') 9

2.1 Contractor to comply with AI 9
2.2 AI 9
2.3 Provisions empowering instructions 9
2.4 Failure of Contractor to comply with AI 9

3.0 Contract Documents, Programme And As-built Drawings 9

3.1 Contract Documents 9-10
3.2 Custody of tender documents 10
3.3 Copies of documents 10
3.4 Further drawings or details 10
3.5 Works Programme 10
3.6 Programme not part of Contract 10
3.7 Architect's acceptance of programme 10
3.8 Availability of documents 10
3.9 Limitation of use of documents 10
3.10 As-built Drawings and operation and maintenance manuals 10

4.0 Statutory Obligations, Notices, Fees And Charges 11

4.1 Statutory requirements 11
4.2 Inconsistencies with statutory requirements 11

PAM Contract 2006 (Without Quantities) (i)

 Table of Contents (Cont'd)
Page
The Conditions Of Contract (Cont'd)

Clause

4.3 qonforming to statutory obligations II

4.4 Fees, levies and charges 11

5.0 Levels And Setting Out Of The Works 11

5.1 Setting out 11

6.0 Materials, Goods And Workmanship To Conform To Description, Testing And Inspection 11
6.1 Standards of works, materials, goods and workmanship II
6.2 Provision of vouchers II
6.3 Inspection and testing II
6.4 Contractor's obligation not relieved II
6.5 Work not in accordance with the Contract 12
6.6 No compensation for time and cost 12
6.7 Failure of Contractor to comply 12
6.8 Warranties in respect of materials and goods 12

7.0 Royalties And Intellectual Property Rights 12

7.1 Indemnity to Employer 12
7.2 Contractor's liability to pay 12
7.3 Government royalties 12

8.0 Site Agent 12

8.1 Site Agent 12
8.2 Instructions to Site Agent 13
8.3 '"Exclusion of Person employed on the Works 13

9.0 Access To The Works 13

9.1 Access to the Works 13

10.0 Site Staff 13

10.1 Duty of Site Staff 13
10.2 Directions given by Site Staff 13

11.0 Variations, Provisional And Prime Cost Sums 13

11.1 Definition of Variation. 13
11.2 No Variations required by Architect shall vitiate Contract 13
11.3 Issue of Variations after Practical Completion 14
11.4 AI on P.C. Sums and Provisional Sums 14
11.5 Valuation of Variations and Provisional Sums 14
11.6 Valuation rules 14
11.7 Additional expense caused by Variation 14-15
11.8 Access to Contractor's books and documents 15
11.9 Variations and additional expenses added to Contract Sum 15

12.0 Quality And Quantity Of The Works 15

12.1 Quality and quantity of the Works 15
12.2 Lump Sum Contract 15

13.0 Contract Sum 15

13.1 Contract Sum not to be adjusted or altered 15

14.0 Materials And Goods 15

14.1 Materials and goods not to be removed 15
14.2 Materials and goods included in certificates 15
14.3 Responsibility for materials and goods 15
14.4 Warranty of title of goods and materials 16

15.0 Practical Completion And Defects Liability 16

15.1 Practical Completion 16
15.2 Certificate of Practical Completion 16
15.3 Contractor's failure to comply with undertaking 16
15.4 Schedule of Defects 17

PAM Contract 2006 (Without Quantities) (ii)

 Table of Contents (Cont'd)
Page
The Conditions Of Contract (Cont'd)

Clause

15.5 InstrUction to make good Defects 17

15.6 Certificate of Making Good Defects 17

16.0 Partial Possession By Employer 17

16.1 Possession of Occupied Part with consent 17-18
16.2 Possession of Occupied Part without consent 18
16.3 Contractor to remove equipment 18

17.0 Assignment And Sub-Contracting 18

17.1 Assignment by Employer 18
17.2 Assignment by Contractor 18
17.3 No sub-contracting 18

18.0 Injury To Person Or Loss And/Or Damage Of Property And Indemnity To Employer 18
18.1 Contractor's indemnity against injury or death 18
18.2 Contractor's indemnity against loss and/or damage 18
18.3 Contactor' s indemnity against claims by workmen 18
18.4 Indemnities not to be defeated 19

19.0 Insurance Against Injury To Person And Loss And/Or Damage Of Property 19
19.1 Contractor to insure against injury to Person and loss and/or damage of property 19
19.2 Employee's social security scheme for local workmen 19
19.3 Insurance for local workmen not subject to SOCSO 19
19.4 Workmen's compensation insurance for foreign workers 20
19.5 PlaCing of insurance with licensed insurance companies 20

20.A Insurance Of New Buildings/Works- By The Contractor 20

20.A.1 Contractor's risks - new buildings/works 20
20.A.2 Additional risks to be covered under the insurance 20
20.A.3 Placing of insurance with licensed insurance companies 20
20.A.4 Application of insurance claim proceeds 21

20.B Insurance Of New Buildings/Works- By The Employer 21

20.B.l Insurance by Employer 21
20.B.2 Additional risks required by the Contractor 21
20.B.3 Maintenance of policy 21
20.B.4 Failure of Employer to insure 21
20.B.5 Application of insurance claim proceeds 22

20.C Insurance Of Existing Building Or Extension- By The Employer 22

20.C.1 Employer's risks- existing building or extension 22
20.C.2 Additional risks required by the Contractor 22
20.C.3 Maintenance of insurance by Employer 22
20.C.4 Failure of Employer to insure 22
20.C.5 Application of insurance claim proceeds 23

21.0 Date Of Commencement, Postponement And Date For Completion 23

21.1 Commencement and Completion 23
21.2 Sectional Commencement Dates 23
21.3 Sectional Completion Dates 23
21.4 Postponement or suspension of the Works 23

22.0 Damages For Non-Completion 23

22.1 Liquidated Damages and Certificate ofNon-Completion 23
22.2 Agreed Liquidated Damages amount 23
22.3 Certificate of Non-Completion revoked by subsequent Certificate of Extension of Time 24

23.0 Extension Of Time 24

23.1 Submission of notice and particulars for extension of time 24
23.2 Delay by Nominated Sub-Contractor 24

PAM Contract 2006 (Without Quantities) (iii)

 Table of Contents (Cont'd)
Page
The Conditions Of Contract (Con!' d)

Clause

23.3 lns~fficient information 24

23.4 Certificate of Extension of Time 24
23.5 Other consideration for giving extension of time 24
23.6 Contractor to prevent delay 24
23.7 Notification to Nominated Sub-Contractors 24
23.8 Relevant Events 25-26
23.9 Extension of time after the issuance of Certificate ofN.on-Completion 26
23.10 Architect's review of extension oftime after Practical Completion 26

24.0 Loss And/Or Expense Caused By Matters Affecting The Regular Progr:ess Of The Works 26
24.1 Loss and/or expense caused by matters affecting the regular progress of the Works 26-27
24.2 Access to Contractor's books and documents 27
24.3 Matters materially affecting the regular progress of the Works 27-28
24.4 Loss and/or expense to be included in certificate 28

25.0 Determination Of Contractor's Employment By Employer 28

25.1 Defaults by Contractor 28
25.2 Procedure for determination 28
25.3 Contractor's insolvency 28
25.4 Rights and duties of Employer and Contractor 28-29
25.5 Records ofWorks 29
25.6 Final Account upon determination 29
25.7 Remedy limited to damages only 30
25.8 Employer's rights and remedies not prejudiced 30

26.0 Determination Of Own Employment By Contractor 30

26.1 Defaults by Employer 30
26.2 Procedure for determination 31
26.3 Employer's insolvency 31
26.4 Rights and duties of Contractor and Employer 31
26.5 Records of Works 31
26.6 Settlement of accounts 31
26.7 Contractor's rights and remedies not prejudiced 32

27.0 Nominated Sub-Contractors 32

27.1 P.C. Sums and Provisional Sums- Nominated Sub-Contractors 32
27.2 Nomination of sub-contractor 32-33
27.3 Objection to nomination of sub-contractor 33
27.4 Action following objection of Nominated Sub-Contractor 33
27.5 Payment by Contractor to Nominated Sub-Contractors 33
27.6 Failure of Contractor to pay Nominated Sub-Contractors 33
27.7 Final payment to Nominated Sub-Contractors 33
27.8 Determination of the Nominated Sub-Contractor's employment 34
27.9 Contractor's responsibility for Nominated Sub-Contractors 34
27.10 Employer no privity of Contract with Nominated Sub-Contractors 34
27.11 Re-nomination of sub-contractor due to determination by the Contractor 34
27.12 Re-nomination of sub-contractor due to determination by the Nominated Sub-Contractor 34
27.13 Contractor to recover additional expenses from Nominated Sub-Contractor 34
27.14 Contractor permitted to tender for P.C. Sums 34

28.0 Nominated Suppliers 34

28.1 P .C. Sums and Provisional Sums- Nominated Suppliers 34
28.2 Nominated Suppliers and their obligations 34-35
28.3 Objection to nomination of suppliers 35
28.4 Action following objection of suppliers 35
28.5 Value of materials and goods supplied by Nominated Suppliers 35
28.6 Payment to Nominated Suppliers 35
28.7 Contractor's liability for Nominated Suppliers 36
28.8 Employer no privity of Contract with Nominated Suppliers 36

PAM Contract 2006 (Without Quantities) (iv)

 Table of Contents (Con!' d)
Page
The Conditions Of Contract (Cont'd)

Clause

29.0 Works By Craftsmen, Tradesmen Or Other Contractors Employed Or Engaged By Employer 36

29.1 Works by Employer's craftsmen 36

30.0 Certificates And Payment 36

30.1 Payment application and issue of Architect's certificate 36
30.2 Amount due in Architect's certificate 36
30.3 Errors in payment certificate 36
30.4 Set-off by Employer 36-37
30.5 Retention Fund 37
30.6 Rules regarding Retention Fund 37
30.7 Suspension of Works for non-payment 37
30.8 Compulsory suspension of Works 37
30.9 Cessation insurance resulting from suspension ofthe Works 37
30.10 Final Account 38
30.11 Items in Final Account 38
30.12 Conclusiveness of the Final Account 39
30.13 Issuance of Penultimate Certificate 39
30.14 Issue of Final Certificate 39
30.15 Final Certificate 39
30.16 Final Certificate not conclusive 39
30.17 Interest 39

31.0 Outbreak Of Hostilities 39

31.1 Hostilities - detennination by Employer or Contractor 39
31.2 Notices of detennination 39
31.3 AI regarding protective work 40
31.4 Payment resulting from detennination 40

32.0 War Damage 40

32.1 Procedures following war damage 40
32.2 Definition of war damage 40

33.0 Antiquities 40
33.1 Antiquities property of Employer 40

34.0 Adjudication And Arbitration 40

34.1 Set-off disputes referred to adjudication 40
34.2 Notice to refer to adjudication 41
34.3 Adjudication Rules 41
34.4 Decision of the adjudicator 41
34.5 Disputes referred to arbitration 41
34.6 Procedures for appointment of arbitrator 41
34.7 Arbitration Act and Rules 41
34.8 Powers of arbitrator 41-42
34.9 Consolidation of arbitration proceedings 42
34.10 Commencement of arbitration proceeding 42
34.11 Arbitrator's award to be final and binding on parties 42

35.0 Mediation 42
35.1 Mediation under PAM rules 42
35.2 Mediation does not prejudice' the parties' rights to arbitration 42

36.0 Notice 42
36.1 Notice 42-43
36.2 Notice deem served 43
36.3 Proof of Notice 43
36.4 Written communication 43

PAM Contract 2006 (Without Quantities) (v)

 Table of Contents (Cont'd)
Page
The Conditions Of Contract (Cont'd)

Clause

37.0 ~erformance Bond 43

37.1 Submission of Performance Bond 43
37.2 Form of the Performance Bond 43
37.3 Validity of the Performance Bond 43
37.4 Failure to extend the validity 43
37.5 Payments from the Performance Bond 43
37.6 Return ofPerformance Bond 43

38.0 Governing Law 43

38.1 Governing Law 43

Appendix 44

PAM Contract 2006 (Without Quantities) (vi)

 PAM CONTRACT 2006 (WITHOUT QUANTITIES)

Articles Of Agreement
This Agreement is made on the ............................................ day or .............................................. 20 ...................... .
between ....................................................................................................................................................................................... .
of (or whose registered office or business address is situated at) ...................................................................................................... .

. . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . (hereinafter called 'the Employer')

and ................................................................................................................................................................................................. .
of(or whose registered office or business address is situated at) ................................................................................................ .

. . .. . . . . .. . .. . . . . .. . ... . . . . . . . .. . .. . . . . . . . .. . . . ...... .. . . . . .. . . . . .................................................................... (hereinafter called 'the Contractor').

Whereas

The Employer is desirous of(*) ......................................................................... .,. .................................................... .

(hereinafter called 'the Works') at .............................................................................................................................................. .

and has caused drawings and Contract Bills showing and describing the work to be done to be prepared by his Architect and
Consultant.

And Whereas the Contractor has supplied the Employer with a fully priced copy of the said Contract Bills.

And Whereas the said drawings numbered ........................................................................................................................ .

inclusive (hereinafter referred to as 'the Contract Drawings') and the Contract Bills have been signed by or on behalf of the parties
hereto.

(*)Briefdescription ofthe Works.

PAM Contract 2006 (Without Quantities)

Now it is hereby agreed as follows:

Article l

For the consideration hereinafter mentioned the Contractor will upon and subject to the Contractor's
Contract carry out and complete the Works shown upon and described by or referred to in Obligations
the Contract.

Article2

The Employer will pay the Contractor the sum of Ringgit Malaysia: .............................. . Contract Sum

(RM ) (hereinafter referred to as 'the Contract Sum') or such

other sum as shall become payable hereunder at the times and in the manner specified in the
Contract.

Article 3

The term 'the Architect' in the Contract shall mean ................................................ . Architect

of .............................................................................................................................•.........
................................................................................................................................. ·........ ..

or in the event of such Person ceasing to be the Architect for the purpose of the Contract,
such other Person as the Employer shall appoint within twenty eight (28) Days therefrom.
No Architect so appointed shall be entitled to disregard or overrule any certificate or
opinion or decision or approval or instruction given by the preceding Architect.

Article 4

The term 'the Engineer' in the Contract shall mean: Engineer

(a) Structural & Civil Engineer: .......................................................................................... .

of................................................................................................................................ .

(b) Mechanical & Electrical Engineer: ........................................................................... .

of ................................................................................................................................ .

PAM Contract 2006 (Without Quantities) 2

or in the event of such Person ceasing to be the Engineer for the purpose of the Contract,
such other Person as the Employer shall appoint within twenty eight (28) Days therefrom.
The Engineer shall perform the duties expected of his profession, and the Architect may
from time to time delegate such duties and authority of the Architect to the Engineer as the
Architect deems fit.

Article 5

The term 'the Quantity Surveyor' in the Contract shall mean ..................................... . Quantity
Surveyor
of ................................................................................................................................... ,.

or in the event of such Person ceasing to be the Quantity Surveyor for the purpose of the
Contract, such other Person as the Employer shall appoint within twenty eight (28) Days
therefrom. The Quantity Surveyor Shall perform the duties expected of his profession, and
the Architect may from time to time delegate such duties and authority of the Architect to
the Quantity Surveyor as the Architect deems fit.

Article 6

The term 'the Specialist Consultant' in the Contract shall mean: Specialist
Consultant
(a) .................................................................................................................................... .
of .......... .

(b) .................................................................................................................... ·················

of ................................................................................................................................ .

(c) ........................................................................................................ ·····························

.of ................................................................................................................................ .

or in the event of such Person ceasing to be the Specialist Consultant for the purpose of the
Contract, such other Person as the Employer shall appoint within twenty eight (28) Days
therefrom. The Specialist Consultant shall perform the duties expected of his profession,
and the Architect may from time to time delegate such duties and authority of the Architect
to the Specialist Consultant as the Architect deems fit.

PAM Contract 2006 (Without Quantities) 3

Article 7

In the Contract Documents as hereafter defined, the following words and expressions shall Definitions
have the meanings hereby assigned to them, except where the context otherwise requires:

(a) Appendix means the Appendix to the Conditions of the Contract;

(b) Appropriate Authority means any statutory authority having jurisdiction over the
Works;

(c) Architect means the Person named in Article 3 and shall be a Professional
Architect or any other form of practice registered under the Architects Act 1967
and approved by the Board of Architects, Malaysia;

(d) Architect's Instruction or AI -as described in Clause 2.2;

(e) As-built Drawings means as-built drawings for works designed (including
alternative design) by the Contractor and/or Nominated Sub-Contractor and any
other as-built drawings required to be provided as Specified in the Contract
Documents;

(f) Certiflcate of Extension of Time means the certificate issued under Clause 23.4;

(g) Certificate of Making Good Defects means the certificate issued under Clause
15.6;

(h) Certificate of Non-Completion means the certificate issued under Clause 22.1;

(i) Certificate of Partial Completion means the certificate issued under Clause 16.1;

G) Certificate of Practical Completion means the certificate issued 1)nder Clause

15.2;

(k) Certificate of Sectional Completion means the certificate issued under Clause
21.3;

(I) Clause means the clauses in the Conditions of the Contract;

(m) Completion Date means the date(s) for completion of the Works stated in the
Appendix under Clauses 21.1 and 21.3 or the last extended dat~t granted under
Clause 23.4;

(n) Conditions means the Conditions of the Contract;

(o) Confirmation of Architect's Instruction or CAl -as described in Clause 2.2;

(p) Consultant means the Engineer, Quantity Surveyor and/or Specialist Consultant
as appropriate;

(q) Contract or Contract Documents comprise the following documents:

(i) the Letter of Award;
(ii) the Articles of Agreement;
(iii) the Conditions of Contract;
(iv) the Contract Drawings;
(v) the Contract Bills; and
(vi) other documents incorporated in the Contract Documents, unless expressly
stated to be excluded therefrom;

(r) Contract Bills comprise the following documents (as may be applicable):
(i) Instructions to Tenderers;
(ii) Conditions of Tendering;
(iii) Form of Tender;
(iv) Preliminaries; _
(v) Preambles and Specification;
(vi) Summary of the Tender (or Contract Sum);
(vi) Schedule of Rates; and
(vii) any other documentS specifically mentioned in any of the above documents;

PAM Contract 2006 (Without Quantities) 4

(s) Contract Sum means the sum stated in Article 2;

(t) Contractor means the party named in the Articles of Agreement and includes the
Contractor's legal successors or personal representatives or any Person to whom
the rights! and obligations of the Contractor have been transferred with the
agreement: of the Employer;

(u) Contractor's All Risks Insurance ('CAR Insurance') means an insurance policy
which provides cover against any physical loss or damage to work executed and
materials and goods under a standard CAR Insurance policy. The minimum
insurance risks are specified under Clauses 19.0, 20.A or 20.B or 20.C, and the
insurance shall have the appropriate endorsements. Any additional insurance risks
in addition to those stated in these Conditions that are required to be covered under
the CAR Insurance shall be stated in the Contract Bills;

(v) Date of Commencement means the date(s) ftxed and stated in the Appendix
under Clauses 2l.l and 21.2;

(w) Day means calendar day including the weekly day of rest but excluding gazetted
holidays in the location where the Works is carried out;

(x) Defects means defects, shrinkages or other faults due to materials or workmanship
not in accordance with the Contract and Nominated Sub-Contract and/or due to
any faulty design (if any) undertaken by the Contractor and Nominated Sub-
Contractor;

(y) Defects Liability Period means the period stated in the Appendix under Clause
15.4;

(z) Employer means the party named in the Articles of Agreement a:nd includes the
Employer's legal successors or personal representativeS or any Person-tO wh,om
the rights and obligations of the Employer have been transferred with· the
agreement of the Contractor;

(aa) Engineer means the Person named in Article 4 and shall be a Profession;I
Engineer or any other form of practice registered under the Registration of
Engineers Act 1967 and approved by the Board of Engineers, Malaysia;

(ab) Final Account means the documents showing the adjustment of the Contract Sum
issued under Clause 30.1 0;

(ac) Final Certificate means the final certificate issued by the Architect under Clauses
30.14 and 30.15;

(ad) Force Majeure means any circumstances beyond the control of the Contractor
caused by terrorist acts, governmental or regulatory action, epidemics and natural
disasters;

(ae) Interim Certificates means the progress payment certificate issued by the
Architect under Clause 30.1;

(af) Letter of Award means the letter of acceptance of the Contractor's tender issued
by or on behalf of the Employer;

(ag) Limit of Retention Fund means the amount as stated in the Appendix under
Clause 30.5;

(ah) Lump Sum Contract means a fixed price Contract and is not subject to re-
measurement or. recalculation except for Provisional Quantities and Variations
which shall be valued under Clause 11.0;

(ai) Month means calendar month;

(aj) Nominated Sub-Contract means the contract entered into between the Main
Contractor and the Nominated Sub-Contractor pursuant to a nomination by the
Architect under Clause 27 .2;

PAM Contract 2006 (Without Quantities) 5

(ak) Nominated Sub-Contractor means a sub-contractor nominated by the Architect
under Clause 27.1;

(al) Nominated Supplier means a supplier nominated by the Architect under Clause
28.1;

(am) PAM Sub-Contract 2006 means the form of contract as published by Pertubuhan
Akitek Malaysia where the sub-contractor is nominated under the PAM Contract
2006; .

(an) Penultimate Certificate means the payment certificate issued by the Architect for
the release of monies to Nominated Sub-Contractors and/or Nominated Suppliers
under Clause 30.13;

(ao) Performance Bond means the bond required to be provided by the Contractor as
a security for the due performance of the contract under Clause 37.1;

(ap) Period of Honouring Certificates means the period for honouring certificates
stated in the Appendix under Clause 30.1;

(aq) Person means an individual, sole proprietorship, firm (partnership) or body

corporate;

(ar) Practical Completion or Practically Completed means the state of completion

described in Clause 15.1;

(as) Prime Cost ~urns ('P.C. Sums') means the sums provided in the contract for
works or services to be executed by Nominated Sub-Contractor or for materials
and goods to be supplied by Nominated Supplier;

(at) Provisional or Provisional Quantity means the estimated quantities of ..Wmk

provided in the Contract Bills for work to be executed or for the supply of. any
materials and goods which cannot be detennined or detailed at the time;

(au) Provisional Sums means the sums provided in the contract and/or the Nominated
Sub-Contract for work to be executed or for the supply of any materials and::>goods
which cannot be tbreseen, detennined or detailed at the time;

(av) Quantity Surveyor means the Person named in Article 5 and shall be a
Registered Quantity Surveyor or any other fonn of practice registered under the
Quantity Surveyors Act 1967 and approved by the Board of Quantity Surveyors,
Malaysia;

(aw) Relevant Event means any one of the events for extension of time set out in
Clause 23.8;

(ax) Retention Fund means the sum retained in accordance with Clause 30.5;

(ay) Schedule of Rates means any documents however entitled or described and which
is intended to be used for the purpose of valuing Variations;

(az) Service Provider means any company or body authorised to provide water,
electricity, telephone, sewerage and other related services;

(ba) Site means the land and other places on, in, under, over or through which the
Works are to be executed and is provided by the Employer for the purposes of the
Contract including other land and places obtained by the Contractor and accepted
by the Employer as forming part of the Site;

(bb) Site Agent means the person appointed under Clause 8.1;

(be) Site Staff means the person appointed under Clause 10.1;

(bd) Specialist Consultant means the Person named in Article 6 and such Person shall
be a Specialist Consultant appointed by the Employer for a designated scope of
professional work;

PAM Contract 2006 (Without Quantities) 6

(be) Variation means changes made to the Works as defined under Clause 11.1;

(bf) Week means a period of seven (7) consecutive days;

(bg) Works means the works described in the Articles of Agreement and referred to in
the Contn\ct Documents and includes any changes made to these works in
accordance with the Contract; and

(bh) Works Programme means the works programme described in the Contract
Documellts and in Clause 3.5.

Article 8

In the interpretation of the Contract, unless the context requires otherwise, the following Meanings
shall apply:

(a) Gender - words of one gender include the other gender, and words denoting natural
persons include corporations and fmns and all such words are to be conStrued
interchangeably in that manner;

(b) Headings and Marginal Notes- the headings and marginal notes in the Conditions
are not to be taken into consideration in the interpretation or construction of the
Conditions or of the Contract;

(c) Reference to legislation - a reference to any Acts is deemed to include references

to any subsequent amendments, consolidation or replacement of the Acts;

(d) Singular and Plural - words importing the singular also include the plural and vice
versa where the context requires; and

(e) Where any word or phrase is given a defined meaning, any other grammatical (onn
of that word or phrase has a corresponding meaning.

PAM Contract 2006 (Without Quantities) 7

IN WITNESS WHEREOF

*The hand of the Employer has been hereunto set the day and year ) Signature ofErnployer............................................ .
first above written in the presence of:
) Name .......................................................... · .. · · · · · · · .. ..

) NRIC No ................................................................... ..
Signature of Witness ................................................................. .

Name ................................................................. .

NRIC No ...........................................................·......... ..

* The Common Seal of .......................................................... ..

was hereunto affixed in the presence of:

Signature ofDirector................................................................ . Signature of Director/Secretary* ....................................... .

Name ....................................................................................... . Name ............................................................................ .

NRIC No.................................................................... . NRIC No ............................................ · .. · .. · · · · · · · .. ..

IN WITNESS WHEREOF

* The hand of the Contractor has been hereunto set the day and year ) Signature of €ontractor ................................................ .
first above written in the presence of:
) Name ....................................................... · · .. · .. · · · · · · · .. .
)
) NRIC No ................................................................... ..
Signature of Witness.................................................................. .

Name ................................................................ ..

NRIC No .................................................................... .

* The Common Seal of ...........................................................

was hereunto affixed in the presence of:

Signature ofDirector............................................................... . Signature of Director/Secretary* ................................. .

Name ...................................................................................... . Name ............................................................................ .

NRIC No................................................................... .. NRIC No .......................................... · · · · · · .. · .. · · · · .. ..

*Delete as apprOpriate
The ajfaing ofthe Common Seal to be witnessed in accordance with the Memorandum & Articles ofAssociation ofthe Company.

PAM Contract 2006 (Without Quantities) 8

 The Conditions Of Contract
1.0 Contractor's Obligations

Completion of 1.1 The Contractor shall upon and subject to these Conditions carry out and complete the
Works in Works in accordance with the Contract Documents and in compliance therewith provide
accordance with materials, goods and standards of workmanship of the quality and standard described in the
Contract Contract DocUments and/or required by the Architect in accordance with the provisions of
Documents the Contract.

Temporary work 1.2 Unless designed by the Architect or Consultant, the Contractor shall be fully responsible for
and construction the adequacy, stability and safety.of all temporary works and of all methods of construction
method of the Works, irrespective of any approval by the Architect or Consultant.

Contractor's 1.3 If the Contractor proposes any alternative design to that specified in the Works or if the
design and Contract leaves any matter of design, s.eecification or choice of materials, goods and
responsibilities workmanship to the Contractor, the Contractor' shall ensure that such works arefit for its
purpose. The copyright of the Contractor's design and alternative design belongs to the
Contractor, but the Employer shall be entitled. to use the design and alternative design for
the completion, maintenance, repair and future extension of the Works. The acCeptance by
the Architect or Consultant of the Contractor's design and alternative design shall not
relieve the Contractor of his responsibilities under the Contract.

Discrepancy or 1.4 The Contractor shall use the Contract Documents and any other subsequent documents
divergence issued by the Architect to plan the Works prior to execution. If during the said planning and
between subsequent execution of the Works, the Contractor finds any discrepancy in or divergence
documents between any of the Contract Documents and any subsequent documents issued by the
Architect, he shall give to the Architect a written notice in sufficient time before the
commencement of construction of the affected works, specifYing the discrepancy or
divergence to enable the Architect to issue written instructions within a period which would
not materially de~ay the progress of the affecte~ works; having regard to the Completion
Date. Such discrepancy Qr divergence shall not vifiate the Contract.

2.0 Architect's Instructions(' AI')

Contractor to 2.1 The Contractor shall subject to Clauses 2.2 and 2.3 forthwith comply with all instructions
comply with AI issued to him by the Architect in regard to any matter in respect of which the Architect is
expressly empowered by these Condition~ to issue instructions.

AI 2.2 All instructions issued by the Architect shall be in writing expressly entitled "Architect's
Instruction" ('AI'). All other forms ofwt;itten instructions including drawings issued by the
Architect shall be an AI:

2.2(a) upon written confirmation from the Contractor entitled "Confirmation of

Architect's Instruction" ('CAl'); or

2.2(b) upon subsequent confirmation of the written instructions by the Architect with
anAL

Provisions 2.3 Upon r~eipt of a written instruction from the Architect, the Contractor may request the
empowering Architect to specifY in writing which provision of these Conditions empowers the issuance
instructions of the said instruction and the Architect shall forthwith comply with such a request. If the
Contractor thereafter complies with the said instruction without invoking any dispute
resolution procedure und_er the Contract to establish the Architect's power in that regard,
the instruction shall be deemed to have been duly given under the specified provision.

Failure of 2.4 If the time of compliance [which shall not be less than seven (7) Days from receipt of the
Contractor to AI] is stated by the Architect in the AI and the Contractor does not comply therewith then
comply with AI the Employer may, without prejudice to any other rights and remedies which he may
possess under the Contract, employ and pay other Person to execute any work which may
be necessary to give effect to such instruction. The cost of employing other Person and any
additional cost in this connection shall be set-offby the Employer under Clause 30.4.

3.0 Contract Documents, Programme And As-built Drawings

Contract 3.1 The Contract Docwnents are to be read as mutually explanatory of one another. In the event
Documents of any conflict or inconsistencies between any of the Contract Document, the priority in the
interpretation of such documents shall be in the following descending order:

PAM Contract 2006 (Without Quantities) 9

 3.l(a) the Letter of Award;

3.l(b) the Articles of Agreement;

3.l(c) the Conditions of Contract;

3.l(d) the Contract Drawings;

3.l(e) the Contract Bills; and

3.l(f) other documents incorporated in the Contract Documents, unless expressly

stated to be excluded in any of the Contract Document.

Custody of 3.2 The original tender documents shall remain in the custody of the Architect so as to be
tender available at <ill reasonable times for inspection by the Employer and Contractor.
documents

Copies of 3.3 Immediately after the execution of the Contract, the Architect shall without· charge to the
documents Contractor provide him with:

3.3(a) one of the two signed original copies of the Contract Documents;

3.3(b) two (2) further copies of the Contract Drawings; and

3.3(c) two (2) copies of the unpriced Contract Bills.

Further 3.4 When necessary. the Architect shall without charge to the Contractor furnish him with two
drawings or (2) copies of further drawings, details, levels and any other information as are reasonably
details necessary either to explain and amplify the Contract Drawings or to enable the Contractor
to complete the Works in accordance with: these Conditions. If the Contractor requires any
further drawings. details, levels and~..any olher, information, he shall specifically apply in
writing· to the Architect for these it~ms in sufficient time before the commencement of
construction of the affected works to enable the Architect to issue instructions within a
period which would not materially delay the progress of the affected works having regard
to the Completion Date.

Works 3.5 Wilhin twenty one (21) Days from receipt of the Letter of Award (or within such longer
Programme period as may be agreed in writing by the Architect), the Contractor shall provide to the
Architect for his information, six (6) copies of the Works Programme (unless a higher
number is stated in the Contract Ii>ocuments) showing the order in which he proposes to
carry out the Works. The Works Programme shall comply with any requirements specified
in the Contract Documents. If the Works or any part of the Works is delayed for whatever
reason, the Architect may instruct the Contractor to revise the Works Programme. The
Contractor without charge to the Employer, shall provide the Architect from time to time
with similar number of copies of any revised Works Programme.

Programme not 3.6 The Works Programme shall not constitute part of the Contract, whether physically
part of Contract incorporated or not into the Contract Documents.

Architect's 3.7 The acceptance by the Architect of the Works Programme shall not relieve the Contractor
acceptance of of his obligations, duties or responsibilities under the Contract. The Works Programme may
programme be used by the Architect to monitor progress and the Architect is entitled to rely on the
Works Programme as a basis for the assessment of extension of time and the effect of the
delay and/or disturbances to the progress of the Works.

Availability of 3.8 The Contractor shall keep a copy of the Contract Drawings and the unpriced Contract Bills
documents on the Site to be available to the Architect and Consultant and their authorised
representatives at all reasonable times.

Limitation of use 3.9 None of the Contract Documents in Clause 3.1 shall be used by the Contractor for any
of documents purpose other than the Contract. Except for the purpose of the Contract, the parties shall not
disclose any of the rates and prices in the Contract Bills to any other party.

As-built 3.10 The Contractor shall supply and shall cause any Nominated Sub-Contractor to supply As-
Drawings and built Drawings and/or operation and maintenance manuals specified in the Contract
operation and Documents and/or Nominated Sub-Contract documents in the manner and within the time
maintenance specified therein. Where these are not specified. the Contractor shall supply and shall
manuals ensure that the Nominated Sub-Contractor supplies four (4) copies of the above items
before the Completion Date.

PAM Contract 2006 (Without Quantities) 10

 4.0 Statutory Obligations, Notices, Fees And Charges

Statutory 4.1 The Contractor shall comply with and submit all notices required by any laws, regulations,
requirements by-laws, tenus and conditions of any Appropriate Authority and Service Provider in respect
of the execution of the Works and all temporary works.

Inconsistencies 4.2 If the Contractor finds any inconsistencies between the Contract Documents (including any
with statutory subsequent documents issued by the Architect) and any laws, regulations, by-laws, tenns
requirements and conditions of any Approprjate Authority and Service Provider, he shall immediately
specify the inconsistencies and give to the Architect a written notice before commencement
of construction of the affected works.

Conforming to 4.3 If within seven (7) Days of having given written notice to the Architect, the Contractor does
statutory not receive any AI in regard to the matters specified in Clause 4.2, he shall proceed with the
obligations work to conform to such laws, regulations, by-laws, terms and conditions of any
Appropriate Authority and Service Provider. An'y changes so necessitated shall be deemed
to be a Variation required by the Architect.

Fees, levies and 4.4 The Contractor shall pay and indemnify the Employer against any liability in respect of any
charges fees, levies and charges including any penalties which rriay arise from the Contractor's non-
compliance with any laws, regulations, by-laws, terms and conditions of any Appropriate
Authority and Service Provider in respect of the execution of the Works and all temporary
works. If the Contractor fails to pay, the Employer may pay such amount and such amount
together with any additional cost in this connection shall be set-off by the Employer under
Clause 30.4.

5.0 Levels And Setting Out Of The Works

Setting out 5.1 The Architect shall determine all levels which may be required for the execution of the
Works and shall provide the Contractor with ~awings and information to enable the
Contractor to set out the Works. The Contractor~sbaJl at his own cost rectify any errors
arising from any inaccurate setting out. With the cqnsent of the Employer, the Architect
may instruct that such errors need not be rectified stibject to an appropriate deduction to be
set-offby the Employer under Clause 30.4.

6.0 Materials, Goods And Workmanship To Conforih To Description, Testing And

Inspection

Standards of 6.! All works, materials, goods and workmanship shall be of the respective quality and
works, materials, standards described in the Contract Documents and required by the Architect in accordance
goods and with the provisions of the Contract.
workmanship

Provision of 6.2 The Contractor shall upon the request of the Architect, provide him with vouchers or such
vouchers other evidence to prove that the materials and goods comply with Clause 6.1.

Inspection and 6.3 The Contractor shall provide samples of materials and goods for testing before
testing incorporation into the Works. The Architect may issue an AI requiring the Contractor to
open up for inspection any work covered up, or to arrange for or carry out any test on any
materials and goods already incorporated in the Works or of any executed work. The cost
of such opening up or testing together with the cost of making good shall be added to the
Contract Sum unless:

6.3(a) the cost is provided for in the Contract Bills;

6.3(b) the inspection or test shows that the works, materials and goods were not in
accordance with the Contract; or

6.3(c) the inspection or test was in the optmon of the Architect required in
consequence of some prior negligence, omission, default and/or breach of
contract by the Contractor.

Contractor's 6.4 The provisions of Clauses 6.2 and 6.3 shall not relieve the Contractor of his obligations to
obligation not execute the work and supply materials and goods in accordance with the Contract.
relieved

PAM Contract 2006 (Without Quantities) II

Work not in 6.5 If the Architect fmds any work, materials, goods or workmanship which is not in
accordance with accordance with the Contract, the Architect shall instruct the Contractor in writing:
the Contract
6.5(a) to remove from and not to bring to the Site such materials and goods;

6.5(b) to demolish and reconstruct such work to comply with the Ccntract;

6.5(c) to rectify such work as instructed by the Architect with no adjustment to the
Contract Sum;

6.5(d) to submit a method statement within seven (7) Days from receipt of the written
instruction (or within such period as may be specified by the Architect in the
instruction) proposing how such works, materials, goods or workmanship can
be rectified. If th·e Architect accepts the Contractor's proposal, the Contractor
shall cany out the rectification work with no adjustment to the Contract Sum
or alternatively, the Architect may reject the proposal and issue any other
written instruction under this clause; or

6.5(e) with the consent of the Employer, to leave all or any such works, materials,
goods or workmanship in the Works subject to an appropriate set-off by the
Employer under Clause 30.4 and the Contractor shall remain liable for the
same.

No compensation 6.6 Compliance by the Contractor with a written instruction issued under Clause 6.5 shall not
for time and cost entitle the Contractor to an extension of time nor compensation for any loss and/or expense
that may be incurred.

Failure of 6.7 If the Contractor fails or refuses to comply with a written instruction of the Architect issued
Contractor to under Clause 6.5, the Employer may without prejudice to any other rights or remedies
comply which he may possess under the Contract, employ and pay other Person to cany out the
subject matter of the written instruction. )}II costs incurred including any loss and expense
shall be set-off by the Employer undkr Clause 30.4.

Warranties in 6.8 If the Contract requires any manufacturer, sub-contractor or supplier to give a warranty or
respect of guarantee in respect of any proprietary systems, materials and goods supplied, the
materials and Contractor shall procure such warranties or guarantees and submit to the Employer. The
goods provision of such warranties or guarantees shall in no way relieve or release the Contractor
from any liabilities under the Contract.

7.0 Royalties And Intellectual Property Rights

Indemnity to 7.1 Subject to Clause 7.2, all royalties or other sums payable in respect of the supply and use in
Employer carrying out the Works of any articles, processes, inventions or drawings shall be deemed
to have been included in the Contract Sum. The Contractor shall indemnify the Employer
against all claims, proceedings, damages, costs and expenses which may be brought against
the Employer or to which he may be subjected to by reason of the Contractor infringing or
being held to have infringed any such intellectual property rights.

Contractor's 7.2 Where in compliance with a written instruction, the Contractor has informed the Architect
liability to pay in writing that there may be an infringement of intellectual property rights but the Architect
still instructs the Contractor in writing to comply, the Contractor shall not be liable for any
such infringement. All royalties, damages or other monies which the Contractor may be
liable to pay for such infiingement shall be added to the Contract Sum.

Government 7.3 Except where otherwise provided for in the Contract, the Contractor shall pay all
royalties Government royalties, levies, rent and all other payments in connection with the Works.

s.o SiteAgent

Site Agent 8.1 The Contractor shall appoint a competent person to be the Site Agent. The Site Agent for
the purposes of the Contract shall be deemed to be the Contractor's authorised site
representative. The Site Agent shall be assisted by such assistants and supervisory staff as
necessary to execute the Works efficiently and satisfactorily. The Site Agent shall be
employed full time on Site and in the event that he has to be temporarily absent from the
Site, the Contractor shall designate a deputy in his place.

PAM Contract 2006 (Without Quantities) 12

Instructions to 8.2 The Contractor shall ensure that the Site Agent and such assistants and supervisory staff are
Site Agent capable of receiving directions or instructions in English or Bahasa Malaysia. The Site
Agent shall be deemed to be authorised by the Contractor to receive any directions given by
the Site Staff or instructions given by the Architect and any such directions and instructions
given shall be deemed to have been given to the Contractor.

Exclusion of 8.3 The Architect may instruct the Contractor to remove the Site Agent or any Person under the
Person employed employment or control of the Contractor from the Site. The Architect shall not exercise this
on the Works discretion unreasonably or vexatiously. On receipt of a written instruction, the Contractor
shall immediately remove and replace such staff or any Person within a reasonable time and
such staff or Person so removed, shall not again be employed on the Site. The Contractor
shall not be entitled to any "extension of time and additional cost in respect of any
instruction given by the Architect under this clause.

9.0 Access To The Works

Access to the 9.1 The Architect, Consultant and their authorised representatives shall at all times have
Works reasonable access to the Works and to the factories, workshops or other places where any
construction plant, materials, goods and woi-k are being fabricated, prepared or stored for
the Contract. The Contractor shall ensure that all sub-contracts contain provisions entitling
the Architect, Consultant and their authorised representatives to have such access.

10.0 Site Staff

Duty of Site Staff 10.1 The Employer may from time to time appoint such number of Site Staff as the Employer
shall deem necessary. The Site Staff shall act as inspectors under the direction of the
Architect and the Contractor shall provide reasonable facilities for the performance of such
duties.

Directions given 10.2 Any directions given to the Contractor or his,.Site Agent by the Site Staff shall be of no
by Site Staff effect, unless given in writing in regard. tq a rilattsr. in respect of which the Site Staff have
been expressly authorised in writing b}:· the .. Arcli.itect. All such directions irivolving a
Variation shall be of no effect, unless confirmed by' an AI.

11.0 Variations, Provisional And Prime Cost Sums

Definition of 11.1 The term "Variation" means the alteration or modification of the design, quality or quantity
Variation of the Works including:

ll.l(a) the addition, omission or substitution of any work;

ll.l(b) the alteration of the kind or standard of any materials and goods to be used in
the Works;

ll.l(c) the removal from the Site of any work executed or materials and goods
brought thereon by the Contractor for the purposes of the Works other than
work, materials and goods which are not in accordance with the Contract; and

ll.l(d) any changes to the provisions in the Contract with regards to:

11.1 (d)(i) any limitation of working hours;

11.1 (d)(ii) wmking space;

ll.l(d)(iii) access to or utilisation of any specific part of the Site; and

ll.l(d)(iv) the execution and completion of the work in any specific order,

but shall exclude any changes intended to rectify any negligence, omission, default and/or
breach of contract by the Contractor and such changes shall be executed by the Contractor
entirely at his own cost.

No Variations 11.2 The Architect may issue an AI ordering a Variation or sanctioning any Variation made by
required by the Contractor. No Variation ordered by the Architect or subsequently sanctioned by him
Architect shall shall vitiate the Contract. Pending the valuation of the Variations, the Contractor shall carry
vitiate Contract out with due diligence and expedition all Variations so ·instructed.

PAM Contract 2006'(Without Quantities) 13

Issue of 11.3 The Architect may issue instructions in writing requiring a Variation at any time before the
Variations after issuance of the Certificate of Practical Completion. Thereafter, any AI requiring a Variation
Practical must be necessitated by obligations or compliance with the requirements of any
Completion Appropriate Authority and Service Provider.

AI on P.C. Sums I 1.4 The Architect shall issue AI in regard to the expenditure of P.C. Sums and Provisional
and Provisional Sums included in the Contract Bills and ofP.C. Sums which arise as a result of instructions
Sums issued in regard to the expenditure of Provisional Sums.

Valuation of 11.5 All Variations shall be measured and valued by the Architect. Where any recording of site
Variations and information and/or site measurements are carried out at the Site, the Contractor shall
Provisional Sums provide the Architect with such assistance as may be necessary to carry out the works and
the Contractor shall be given the opportunity to be present to take such notes and
measurements as he may require.

Valuation rules I 1.6 The valuation of Vari8.tions and work exeputed by the Contractor for which a Provisional
Quantity is included in the Contract and the expenditure of Provisional Sums (other than for
work for which a tender had been accepted under Clause 27.14) shall be made in
accordance with the following rules:

I 1.6(a) where work is of a similar character to, is executed under similar conditions as,
and does not significantly change the quantity of work as set out in the
Contract Documents, the rates and prices in the Schedule of Rates shall
determine the valuation;

I 1.6(b) where work is of a similar character to work as set out in the Contract
Documents but is not executed under similar conditions or is executed under
similar conditions but there is a significant change in the quantity of work
carried out, the rates and prices in the Schedule of Rates shall be the basis for
determining the valuation which shall include a fair adjustment in the rates to
take into account such difference~

I 1.6(c) where work is not of a similar character to work as set out in the Contract
Documents, the valuation shall be at fair market rates and prices determined by
the Architect;

I 1.6(d) where work cannot be properly measured and valued in accordance with
Clause I 1.6(a), (b) or (c), the Contractor shall be allowed:

11.6(d)(i) the daywork rates in the Schedule of Rates; or

11.6(d)(ii) where there are no such daywork rates in the Schedule of Rates,
at the actual cost to the Contractor of his materials, additional
construction plant and scaffolding, transport and labour for the
work concerned, plus fifteen (15) percent, which percentage
shall include for the use of all tools, standing plant, standing
scaffolding, supervision, overheads and profit.

In either case, vouchers specifying the time spent daily upon the work, the
workers' names, materials, additional construction plant, scaffolding and
transport used shall be signed by the Site Agent and verified by the Site Staff
and shall be delivered to the Architect at weekly intervals with the final
records delivered not later than fourteen (14) Days after the work has been
completed;

11.6(e) the rates and prices in the Schedule of Rates shall determine the valuation of
items omitted. If omissions substantially vary the conditions under which any
remaining items of work are carried out, the prices of such remaining items
shall be valued under Clause 11.6(a), (b) or (c); and

11.6(f) in respect of Provisional Quantity, the quantities stated in the Contract Bills
shall be re-measured by the Architect based on the actual quantities executed.
The rates and prices in the Schedule of Rates shall.determine their valuations.

Additional 11.7 Where a Variation has caused or is likely to cause the Contractor to incur additional
expense caused expenses for which he would not be paid under any provisions in Clause 11.6, the
by Variation Contractor may make a claim for such additional expenses provided always that:

PAM Contract 2006 (Without Quantities) 14

 11.7(a) the Contractor shall give written notice to the Architect of his intention to
claim for such additional expenses together with an initial estimate of his
claim duly supported with all necessary calculations. Such notic.e must be
given within twenty eight (28) Days from the date of the AI or CAl giving rise
to his claim. The giving of such written notice shall be a condition precedent to
any entitlement to additional expenses that the Contractor may have under the
Contract; and

11.7(b) within twenty eight (28) Days of completing such Variation, the Contractor
shall send to the Architect complete particulars of his claim for additional
expenses together wit4 all necessary calculations to substantiate his claims. If
the Contractor fails to submit the required particulars within the stated time (or
within such longer period as may be agreed in writing by the Architect), it
shall be deemed that the Contractor has waived his rights to any such
additional expenses.

Access to 11.8 The Contractor shall keep contemporaneous records to substantiate all his claims for
Contractor's additional expenses under Clause 11.7, and shall. submit all particulars to the Architect and
books and Consultant. The Architect and Consultant shall have access to all books, documents,
documents reports, papers or records in the possession, custody or control of the Contractor that are
material to the claim and the Contractor shall provide free of charge a copy each to the
Architect and Consultant when requested. All such documents shall remain available in
accordance with this clause until all claims have been resolved. The Contractor shall use his
best endeavour to ensure that all such similar documents in the possession, custody or
control of sub-contractors and/or suppliers that are material to the claim are similarly
available.

Variations and 11.9 As soon as the Architect has ascertained the amount of Variations and/or additional
additional expenses claimed by the Contractor under Clause 11.7, the amount so ascertained shall be
expenses added added to the Contract Sum. When an Interim Certificate is issued after the date of
to Contract Sum ascertainment, such amount shall be included in the·certificate.

12.0 Quality And Quantity Of The Works

Quality and 12.1 The quality and quantity of the work included in the Contract Sum shall be deemed to be
quantity ofthe those which are shown upon the Contract Drawings and/or set out in the Contract Bills.
Works Unless otherwise expressly stated, the measurements of Variations and Provisional
Quantities shall be carried out in accordance with the principles of the Standard Method of
Measurement of Building Works sanctioned by the Institution of Surveyors Malaysia and
currently in force

Lump Sum 12.2 Unless otherwise expressly provided, the contract is a Lump Sum Contract and shall be
Contract deemed to include all ancillary and other works and expenditure, which may or may not
have been specifically mentioned or described in the Contract Documents, but which are
either indispensably necessary to be carried out to bring the Works to completion or which
may contingently become necessary to overcome difficulties before completion.

13.0 Contract Sum

Contract Sum 13.1 The Contract Sum shall not be adjusted or altered in any way whatsoever, other than in
not to be accordance with the express provisions of the Contract. Any arithmetical errors or any
adjusted or errors in the prices and rates shall be corrected and/or rationalised by the Architect or
altered Consultant without any change to the Contract Sum before the signing of the Contract.

14.0 Materials And Goods

Materials and 14.1 Materials and goods delivered to the Site for incorporation into the permanent works shall
goods not to be not be removed until completion of the Works unless prior consent in writing from the
removed Architect has been obtained, which consent shall not be unreasonably withheld or delayed.

Materials and 14.2 Where the value of such materials and goods has in accordance with Clause 30.2 been
goods included in included in any Interim Certificate under which the Employer has effected payment, such
certificates materials and goods shall become the property of the Employer.

Responsibility for 14.3 The Contractor shall be responsible for any loss and/or damage to such materials and goods
materials and including materials and goods supplied by Nominated Sub-Contractors and Nominated
goods Suppliers.

PAM Contract 2006 (Without Quantities) 15

 Warranty of title 14.4 The Contractor shall be deemed to have warranted that he has title free from encumbrances Schedule of 15.4 Any Defects in the Works which appear within the Defects Liability Period shall be
of goods and for such materials and goods upon inclusion of the value of such materials and goods in any Defects specified by the Architect in a schedule of detects which he shall deliver to the Contractor
materials applications for payments under Clause 30.1. In the event that the Contractor is found to not later than fourteen (14) Days after the expiration of the Defects Liability Period. The
have made a false warranty, any loss suffered by the Employer shall be made good by the Contractor shall make good the Defects specified within twenty eight (28) Days after
Contractor or shall be set-offunder Clause 30.4. receipt of the schedule of defects (or within such longer period as may be agreed in writing
by the Architect) at the Contractor's cost. If the Contractor fails to attend to the Defects, the
15.0 Practical Completion And Defects Liability Employer may, without prejudice to any other rights and remedies which he may possess
under the Contract, employ and pay other Person to rectify the Defects and all costs
Practical 15.1 The Works are Practically Completed when: incurred shall be set-off by the Employer under Clause 30.4. If the Architect with the
Completion consent of the Employer, instructs the Contractor to leave the Defects in the Works, then an
15.l(a) in the opinion of the Architect, the Employer can have full use of the Works appropriate deduction for such Defects not made good by the Contractor shall be set-offby
for their intended purposes, notwithstanding that there may be works and the Employer under Clause 30.4:
defects of a minor nature still to be executed and the Contractor has given to
the Architect a written undertaking tO make good and to complete S\,lch works Instruction to 15.5 Notwithstanding Clause 15.4, the Architect may at any time during the Defects Liability
and defects within a reasonable time specified by the Architect; and make good Period issue an AI requiring any critical D:efects which need urgent rectification to be made
Defects good within a reasonable time specified by the Architect at the Contractor's cost. If the
15.l(b) other requirements expressly stated in the Contract Documents as a pre- Contractor fails to attend to such Defects within the time specified by the Architect, the
requisite for the issuance of the Certificate of Practical Completion have been Employer may employ and pay other Person to rectify such Defects and all costs incurred
complied with. shall be set-offby the Employer under Clause ·30.4.

Certificate of 15.2 When the whole of the Works are Practically Completed, the Contractor shall forthwith Certificate of 15.6 Upon completion of making good all Defects which may have been required to be made
Practical give written notice to that effect to the Architect who shall within fourteen (14) Days do Making Good good under Clause 15.4, the Contractor shall forthwith give written notice to the Architect
Completion either one of the following: Defects to that effect. The Architect shall within fourteen (14) Days do either one of the following:

15.2(a) if the Architect is of the opinion that the Works are not Practically Completed 15.6(a) if the Architect is of the opinion that there is no Defects or the Contractor has
under Clause 15.1, the Architect shall give written notice to the Contractor made good all Defects, the Architect shall issue a Certificate of Making Good
with copy extended to the Nominated Sub-Contractors stating the reasons for Defects and the date of making good Defects shall be the date of receipt ofthe
his opinion; or Contractor's written notice. The Certificate of Making Good Defects shall be
issued to the Contractor and copies shall be extended to the Employer and
15.2(b) if the Architect is of the opinion that the Works are Practically Completed Nominated Sub-Contractors; or
under Clause 15.1, the Architect shall issue the Certificate of Practical
Completion. The date of Practical Completion shall be: 15.6(b) if the Architect is of the opiniOn that the' Defects have not been made good, the
Architect shall give written notice to the Contractor with copies to Nominated
15.2(b)(i) the date of receipt of the Contractor's written undertaking to Sub-Contractors stating the reasons for the non-issuance of the Certificate of
make good and to complete works and defects of a minor nature, Making Good Defects.
where there are such works and defects; or
16.0 Partial Possession By Employer
15.2(b)(ii) the date of receipt of the Contractor's written notice, where there
are no works and defects of a minor nature. Possession of 16.1 If at any time before Practical Completion of the Works, the Employer wishes to take
Occupied Part possession and occupy any part of the Works ("the Occupied Part") and the consent of the
The Certificate of Practical Completion shall be issued to the Contractor with with consent Contractor (whose consent shall not be unreasonably delayed or withheld) has been
copies extended to the Employer and Nominated Sub-Contractors. Upon the obtained, then notwithstanding anything expressed or implied elsewhere in the Contract,
issuance of Certificate of Practical Completion by the Architect, the Contractor the Employer may take possession of the Occupied Part and the following shall apply:
shall forthwith return Site possession to the Employer.
16.l(a) within fourteen (14) Days from the date on which the Employer has taken
Contractor's 15.3 Where applicable, the Contractor shall comply with his undertaking to attend to the works possession of the Occupied Part, the Architect shall issue a Certificate of
failure to comply and defects of a minor nature under Clause 15.1(a) within the specified time. In the event Partial Completion. The Certificate of Partial Completion shall state the
with undertaking the Contractor fails to comply with his und~ng, the Employer may without prejudice to Architect's estimate of the approximate total value of the Occupied Part and
any other rights and remedies which he m.ay possess under the Contract do any one of the for all purposes of Clause 16.0, the value so stated shall be deemed to be the
following: total value of the Occupied Part;

15.3(a) grant the Contractor additional ex-gratia time to be specified by the Architect 16.1(b) for the purposes of Clauses 15.4, 15.5 and 16.1(1), Practical Completion of the
to enable the Contractor to comply with his said undertaking; Occupied Part shall be deemed to have occurred and the Defects Liability
Period in respect of the Occupied Part shall be deemed to have commenced on
15.3(b) employ and pay other Person to execute any work which may be necessary to the date which the Employer has taken possession;
give effect to the Contractor's said undertaking. All costs incurred including
any loss and/or expense shall be set-offby the Employer under Clause 30.4; or 16.l(c) the Liquidated Damages under Clause 22.1 shall be reduced by the ratio of the
estimated value of the Occupied Part to the Contract Sum;
15.3(c) accept to leave all or any such works and defects of a minor nature in the
Works subject to an appropriate set-offunder Clause 30.4. 16.l(d) upon the issuance of the Certificate of Partial Completion, the Architect shall
within fourteen (14) Days issue a certificate to release half the amount of the
Retention Fund in the ratio of the estimated value of the Occupied Part to the
Contract Sum. The Contractor shall be entitled to payment within the Period of
Honouring Certificates. The amount of the Limit of Retention Fund shall then
be reduced by the same amount;

PAM Contract 2006 (Without Quantities) 16 PAM Contract 2006 (Without Quantities) 17
 16.l(e) when in the opinion of the Architect all Defects in the Occupied Part which he Indemnities not 18.4 The indemnities given by the Contractor under Clauses 18.1 to 18.3 shall not be defeated or
may have required to be made good under Clause 15.4 or 15.5 have been made to be defeated reduced by reason of any negligence or omission of the Employer, Architect, Consultant or
good, he shall issue a Certificate of Making Good Defects under Clause 15.6 other authorised representatives in failing to supervise or control the Contractor's site
in respect of the Occupied Part; and operation or methods of working or temporary work or to detect or prevent or remedy
defective work or to ensure proper performance of any obligation of the Contractor under
16.1(1) upon the issuance of the Certificate of Making Good Defects of the Occupied the Contract.
Part, the Architect shall within fourteen (14) Days issue a certificate for the
release of the remaining amount of the Retention Fund in respect of the 19.0 Insurance Against Injury To Person And Loss And/Or Damage Of Property
Occupied Part. The Contractor shall be entitled to payment within the Period
of Honouring Certificate. Contractor to 19.1 Without prejudice to his liability to indemnify the Employer under Clause 18.0, the
insure against Contractor shall, as a condition precedent to the commencement of any work under the
Possession of 16.2 The Employer may, without prejudice to any other rights and remedies which he may injury to Person Contract, take out and maintain in the joint names of the Employer, Contractor, sub-
Occupied Part possess under the Contract, enter and occupy such part of the Works prior to the completion and loss and/or contractor and all interested parties in respect of personal injuries or death and injury or loss
without consent of the whole of the Works without the consent of the Contractor under Clause 16.1 damage of and/or damage of property real or personal arising out of or in the course of or by reason of
provided always that: property the execution of the Works and whether or not such injury, death, loss and/or damage is
caused by negligence, omission, default arid/or breach of contract by the Contractor,
16.2(a) the completion of the Works has been delayed and a Certificate of Non- Employer, sub-contractor and interested parties and any of their servants and agents. Such
Completion has been issued by the Architect under Clause 22.1; and insurance policy shall provide cover in respect of third party liability for personal injury or
death and damage to property for the amounts stated in the Appendix. If the Contractor
16.2(b) such entry and occupation of the Occupied Part can be effected without any having regard to his indemnity to the Employer under Clause 18.0 desires to increase any of
unreasonable disturbance to the progress of the Contractor's remaining works. the insurance coverage, he shall do so and allow for any additional cost. The insurance
policy shall include the following endorsements:
In that event, the provisions of Clauses 16.l(a) to 16.1(1) shall apply.
19.l(a) a "cross liability" endorsement to provide insurance cover to the Employer and
Contractor to 16.3 If the Employer takes possession of the Occupied Part under Clause 16.1 or 16.2, the Contractor and any other parties involved in the Works as though they are
remove Contractor shall upon the written instruction of the Architect remove his site facilities, separately insured for their respective rights and interest;
equipment construction plant or equipment, materials and goods from the Occupied Part.
19.l(b) an endorsement to the effect that the Architect, Consultant and any other
17.0 Assignment And Sub-Contracting professional consultants (as applicable) and their employees and
representatives, Site Staff, emplo~es and representatives of the Employer, are
Assignment by 17.1 Other than assigning his rights, interests or benefits under the Contract to his financial deemed to be third parties;
Employer institution, the Employer shall not without the written consent of the Contractor (such
consent shall not be unreasonably delayed or withheld) assign the same to other parties. 19.l(c) an endorsement for waiver of all expressed or implied rights of subrogation or
recoveries against the insured; and
Assignment by 17.2 Other than assigning any payment due or to become due under the Contract to his financial
Contractor institution, the Contractor shall not without the written consent of the Employer (such 19.l(d) an endorsement for automatic extenSion or renewal of the insurance up to the
consent shall be at the sole discretion of the Employer) assign his rights, interests or issuance of the Certificate of Making Good Defects.
benefits under the Contract to other parties.
Employees' social 19.2 Without prejudice to his liability to indemnify the Employer under Clause 18.0. the
No sub- 17.3 Except where othetwise provided by the Conlmct, the Contractor shall not wholly or security scheme Contractor shall register or cause to register all local workmen employed on the Works and
contracting substantially sub-contract the Works. Where the Contractor sub-contracts labour only of for local who are subject to registration under the Employees' Social Security Scheme (hereinafter
craftsmen, skilled or semi-skilled workmen to carry out any portion of the Works, this shall workmen referred to as "SOCSO") in accordance with the Employees' Social Security Act 1969 and
not constitute sub-contracting within the meaning of this clause. shall cause all sub-contractors to comply with the same provisions. The Contractor shall
make payment of all contributions and cause all sub-contractors to make similar payments
18.0 Injury To Person Or Loss And/Or Damage Of Property And Indemnity To Employer from time to time when the same ought to be paid.

Contractor's 18.1 The Contractor shall be liable for and shall indemnify the Employer against any damage, Insurance for 19.3 Without prejudice to his liability to indemnify the Employer under Clause 18.0, the
indemnity expense, liability, loss, claim or proceeding!!;/whatsoever whether arising at common law or local workmen Contractor shall, as a condition precedent to the commencement of any work under the
against injury or by statute in respect of personal injury ~6 /Or death of any person arising out of or in the not subject to Contract, take out and maintain in the joint names of the Employer and Contractor and shall
death course of or caused by the canying out of the Works and provided always that the same is socso cause all sub-contractors to take out and maintain a similar insurance policy for local
due to any negligence, omission, default and/or breach of contract by the Contractor or of workmen who are not subject to registration under SOCSO. Such insurance policy shall be
any Person for whom the Contractor is responsible. effected and maintained as necessary to cover all liabilities including common law liability·
in respect of any claim which may arise in the course of the execution of the Works. The
Contractor's 18.2 The Contractor shall be liable for and shall indemnify the Employer against any damage, insurance policy shall be valid up to the Completion Date and the extended maintenance
indemnity expense, ·liability, loss, claim or proceedings due to loss and/or damage of any kind cover shall be for the Defects Liability Period plus a further three (3) Months. If the
against loss whatsoever to any property real or personal, including the Works and any other property of Contractor is unable to complete by the Completion Date or complete making good the
and/or damage the Employer, in so far as such loss and/or damage arises out of or in the course of or by Defects within the insured period, he shall ensure that the insurance is accordingly extended
reason of the execution of the Works and provided always that the same is due to any for the same period of delay. The Contractor shall effect the said extension of the insurance
negligence, omission, default and/or breach of contract by the Contractor or of any Person cover not less than one (1) Month before the expiry of the insurance currently in force.
for whom the Contractor is responsible.

Contractor's 18.3 The Contractor shall be liable for and shall indemnify the Employer against any damage,
indemnity expense, liability, loss, claim or proceedings whatsoever arising out of claims by any and
against claims by every workman employed in and for the execution of the Works and for payment of
workmen compensation under or by virtue of the Workmen's Compensation Act 1952 and the
Employees' Social Security Act 1969.

PAM Contract 2006 (Without Quantities) 18 PAM Contract 2006 (Without Quantities) 19
Workmen's 19.4 Without prejudice to his liability to indemnify the Employer under Clause 18.0, the Application of 20.A.4 Upon the occurrence of any loss and/or damage to the Works or unfixed materials and
compensation Contractor shall, as a condition precedent to the commencement of any work under the goods prior to Practical Completion of the Works from any cause whatsoever, and
insurance claim
insurance for Contract, take out and maintain in the name of the Contractor and shall cause all sub- notwithstanding that settlement of any insurance claim has not been completed, the
proceeds
foreign workers contractors to take out and maintain a similar insurance policy for all foreign workers Contractor shall with due diligence restore, replace or repair the same, remove and dispose
employed on the Works as required by the Workmen's Compensation Act 1952 and of any debris and proceed with the carrying out and completion of the Works. All money if
Workmen's Compensation (Foreign Worker's Compensation Scheme) (Insurance) Order and when received from the insurance under this clause shall be paid in the first place to the
1998. Such insurance policy shall be effected and maintained as necessary to cover all Employer. The Employer shall retain the amount paid by the insurance companies in
liabilities including common law liability in respect of any claim which may arise in the respect of professional fees for reinstatement and pay the balance to the Contractor and/or
course of the execution of the Works. The insurance policy shall be valid up to the Nominated Sub-Contractors by installments under separate certificates to be issued by the
Completion Date and the extended maintenance cover shall be for the Defects Liability Architect. The Contractor shaH not be entitled to any additional payments in respect of the
Period plus a further three (3) Months. If the Contractor is unable to complete by the restoration of the damaged wo:rk and replacement or repair of any unfixed materials and
Completion Date or complete mal9ng good the Defects within the insured period, he shall goods and the removal and disposal of debris other than the monies received under the
ensure that the insurance is accordingly extended for the same period of delay. The af9resaid insurance.
Contractor shall effect the said extension of the insurance cover not less than one ( l) Month
before the expiry of the insurance currently in force. **20.B Insurance Of New Buildings/Works- By The Employer

Placing of 19.5 The insurance referred to in Clauses 19.1, 19.2, 19.3 and 19.4 shall be placed with licensed Insurance by 20.B.l Without prejudice to the Contractor's liability to indemnify the Employer under Clause
insurance with insurance companies approved by the Employer, and the Contractor shall deposit with the Employer 18.0, the Employer shall, as a condition prece.dent to the commencement of any work under
licensed Employer the policy and the receipt of premiums paid with copies extended to the Architect the Contract, take out and maintain in the joint names of the Employer, Contractor, sub-
insurance and Consultant. If the Contractor makes default in insuring or continuing to insure as contractors and all interested parties a CAR Insurance policy for a value not less than the
co~panies aforesaid, the Employer may (but is not obligated to) insure against any risks in respect of Contract Sum, plus the sum to cover professional fees for reinstatement and the sum to
which tlte default has occurred and the amount of premiums and any other cost incurred or cover the removal of debris all as stated in the Appendix. Unless covered by the standard
paid by the Employer shall be set-offby the Employer under Clause 30.4. CAR Insurance policy, the insurance shall have endorsements to cover against loss and/or
damage by fire, lightning, explosion, earthquake, volcanism, tsunami, storm, cyclone,
**20.A Insurance Of New Buildings/Works- By The Contractor flood, inundation, landslide, ground subsidenCe, existing underground cables and/or pipes
or other underground facilities, bursting or overflowing of water tanks, apparatus or pipes,
Contractor's 20.A.1 Without prejudice to his liability to indemnify the Employer under Clause 18.0, the aircraft and other aerial devices or articles dropped therefrom, strike, riot and civil
risks- new Contractor shall, as a condition precedent to the commencement of any work under the commotion, malicious damage, trespass, cessation of work whether total or partial,
buildings/ works Contract, take out and maintain in the joint names of the Employer, Coutractor, sub- vibration and weakening of support. Unless separately required by the Contractor at his
contractors and all interested parties a CAR Insurance policy for a value not less than the own cost, the CAR Insurance policy will excl~de cover for construction plant, tools and
Contract Sum, plus the sum to cover professional fees for reinstatement and the sum to equipment owned or hired by the Contractor or any sub-contractor. The Employer shall
cover the removal of debris all as stated in the Appendix. Unless covered by the standard keep such Works so insured notwithstan1ting any arrangement for Sectional Completion
CAR Insurance policy, the insurance shall have endorsements to cover against loss and/or under Clause 21.0 or Partial Possession under Clause 16.0. The insurance policy shall be
damage by fire, lightning, explosion, eatthquake, volcanism, tsunami, storm, cyclone, valid up to the Completion Date and the extended maintenance cover shall be for the
flood, inundatiOn, landslide, theft, ground subsidence, existing underground cables and/or Defects Liability Period plus a further three (3) Months. If the Contractor is unable to
pipes or other underground facilities, bursting or overflowing of water tanks, apparatus or complete by the Completion Date or complete making good the Defects within the insured
pipes, aircraft and other aerial devices or articles dropped therefrom, strike, riot and civil period, the Employer shall ensure that the insurance is accordingly extended for the same
commotion, malicious damage, trespass, cessation of work whether total or partial, period of delay. The Employer shall effect the said extension of the insurance cover not less
vibration and weakening of support. Unless othetwise insured by the Contractor, the CAR than one ( 1) Month before the expiry of the insurance currently in force. Where deductibles
Insurance policy will exclude cover for construction plant, tools and equipment owned or are specified in the Appendix or in t11e insurance policy, ·the Contractor shall bear the
hired by the Contractor or any sub-contractors. The Contractor shall keep such Works so amount of all deductibles. The insurance policy shall also include the endorsement under
insured notWithstanding· any arrangement for Sectional Compleiion under Clause 21.0 or Clauses 19.1(a) to (d).
Partial Possession under Clause 16.0. The insurance policy shall be valid up to the
Completion Date and the extended maintenance cover shail be for the Defects Liability Additional risks 20.B.2 Any additional risks or endorsements which vary from those stated in Clause 20.B.1 shall
Period plus a further three (3) Months. If the Contractor is unable to complete by the required by the be specified in the Contract Bills, and the Employer shall ensure that the risks specified in
Completion Date or complete making good the Defects within the insured period, he shall Contractor th~ Contract Bills are covered by the CAR Insurance policy. If the Contractor having regard
ensure that the insurance is accordingly; extended for the same period of delay. The to his indemnity to the Employer under Clause 18.0, desires to have further additional
Contractor shall effect the said extension of the insurance cover not less than one (1) Month endorsements to the insurance in addition to the risks specified, he shall do so at his own
before the expiry of the insurance currentl/in force. Where deductibles are specified in the cost.
Appendix or in the insurance policy, the 'cOntractor shall bear the amount of all deductibles.
The insurance policy shall also include the endorsement under Clauses 19.l(a) to (d). Maintenance of 20.B.3 The Employer shall maintain a proper insurance policy against the aforesaid risks and such
policy policy and receipt for the last premium paid for its renewal shall, upon the request of the
Additional risks 20A.2 Any additional risks or endorsements in addition to those stated in Clause 20.A.l which Contractor, be produced for his inspection.
to be covered may be required to be covered under the CAR Insurance policy shall be specified in the
under the Contract Bills. If the Contractor having regard to his indemnity to the Employer under Failure of 20.B.4 If the Employer at any time upon the request of the Contractor fails to produce any receipt
insurance' Clause 18.0, desires to have any additional endorsements to the insurance in addition to the Employer to showing such a policy as aforesaid to be effective, then the Contractor may take out and
risks specified, he shall do so at his own cost. insure maintain in the joint names of the Employer, Contractor, sub-contractors and all interested
parties, the CAR Insurance policy as required under Clauses 20.B.l and 20.B.2. The
Placing of 20A.3 The insurance referred to in Clause 20.A shall be placed with licensed insurance companies Contractor upon production of the receipt of any premium paid by him shall be entitled to
insurance with approved by the Employer, and the Contractor shall deposit with the Employer the policy have the amount added to the Contract Sum.
licensed and the rec.eipt of premiums paid. If the Contractor makes default in insuring or continuing
insurance to insure as aforesaid, the Employer may insure against any risks in respect of which the
companies default has occurred and the amount of premiums and any other cost incurred cr paid by the
Employer shall be set-offby the Employer under Clause 30.4.

**Strike out Clause 20.A, 20.B or 20.C as appropriate **Strike out Clause 20.A, 20.B or 20. Cas appropriate

PAM Contract 2006 (Without Quantities) 20 PAM Contract 2006 (Without Quantities) 21
Application of 20.B.5 Upon the occurrence of ariy loss and/or damage to the Works or unfixed materials and Application of 20.C.5 Upon the occurrence of any loss and/or damage to the Works or unfixed materials and
insurance claim goods prior to Practical Completion of the Works from any cause whatsoever insurance claim goods prior to Practical Completion of the Works from any cause whatsoever
proceeds notwithstanding that settlement of any insurance claim has not been completed, the proceeds notwithstanding that settlement of any insurance claim has not been completed, the.
Contractor shall with due diligence restore, replace or repair the same, remove and dispose Contractor shall with due diligence restore, replace or repair the same, remove and dispose·
of any debris and proceed with the carrying out and completion of the Works. All money if of any debris and proceed with the canying out and completion of the Works including the
and when received from the insurance under this clause shall be paid in the frrst place to the reinstatement of the existing structure. All money if and when received from the insurance
Employer. The Employer shall retain the amount paid by the insurance companies in under this clause shall be paid in the first place to the Employer. The Employer shall retain
respect of professional fees for reinstatement and pay the balance to the Contractor and/or the amount paid by the insurance companies in respect of professional fees for
Nominated Sub-Contractors by installments under separate certificates issued by the reinstatement and pay the balance to the Contractor and/or Nominated Sub-Contractors by
Architect. The Contractor shall not be entitled to any additional payments in respect of the installments under separate certificates issued by the Architect. The Contractor shall not be
restoration of the damaged work and replacement or repair of any unfixed materials and entitled to any additional paym~nts in respect of the restoration of the damaged work and
goods and the removal and disposal of debris other than the monies received under the replacement or repair of any unfixed materials and goods and the removal and disposal of
aforesaid insurance. debris other than the monies received under the aforesaid insurance.

**20.C Insurance Of Existing Building Or Extension- By The Employer 21.0 Date Of Commencement, Postponement And Completion Date

Employer's risks 20.C.l Without prejudice to the Contractor's liability to indemnify the Employer under Clause Commencement 21.1 On the Date of Commencement, possession of the Site shall be given to the Contractor who
~existing 18.0, the Employer shall, as a condition precedent to the commencement of any work under and Completion shall commence the execution of the W arks ~d regularly and diligently proceed with and
building or the Contract, take out and maintain in the joint names of the Employer, Contractor, sub- complete the same on or before the Completion Date. In the event there is a delay by the
extension contractors and all interested parties a CAR Insurance policy for a value not less than the Employer in giving possession of the Site to the Contractor, the Architect shall grant an
Contract Sum, plus the value of the existing structure together with all the contents owned extension of time under Clause 23.8(£). Provided always that the delay in giving possession
by the Employer or for which he is responsible, the sum to cover professional fees for of the Site does not exceed the Period of Delay stated in the Appendix, the Contractor shall
reinstatement and the sum to cover the removal of debris all as stated in the Appendix. not be entitled to determine his own employment under the Contract.
Unless covered by the standard CAR Insurance policy, the insurance shall have
endorsements to cover against loss and/or damage by fire, lightning, explosion, earthquake, Sectional 21.2 Where there are different Dates of Commencement for sections of the Works, these shall be
volcanism, tsunami, storm, cyclone, flood, inundation, landslide, ground subsidence, Commencement stated in the Appendix.
existing underground cables and/or pipes or other underground facilities, bursting or Dates
overflowing of water tanks, apparatus or pipes, aircraft and other aerial devices or articles
dropped therefrom, strike, riot and civil commotion, malicious damage, trespass, cessation Sectional 21.3 Where there are different Completion Dates for sections of the Works stated in the Contract
of work whether total or partial, vibration and weakening of support. Unless separately Completion Documents, the Architect shall issue a Certificate of Sectional Completion when the
required by the Contractor at his own cost, the CAR Insurance policy will exclude cover for Dates sections of the Works are Practically Completed. The provisions in the Contract in regard
construction plant, tools and equipment owned or hired by the Contractor or any sub- to Practical Completion and the Defects Liability Period under Clause 15.0, extension of
contractor. The Employer shall keep such Works so insured notwithstanding any time under Clause 23.0, Liquidated Damages under Clause 22.0 and release of Retention
arrangement for Sectional Completion under Clause 21.0 or Partial Possession under Fund under Clause 30.6 shall apply with necessary changes as if each such section was a
Clause 16.0. The insurance policy shall be valid up to the Completion Date and the separate and distinct contract.
extended maintenance cover shall be for the Defects Liability Period plus a further three (3)
Months. If the Contractor is unable to complete by the Completion Date or cOmplete Postponement or 21.4 The Architect may issue an AI in regard to the postponement or suspension of all or any
making good the Defects within the insured period, the Employer shall ensure that the suspension of the part of the Works to be executed under the Contract for a continuous period not exceeding
insurance is accordingly extended for the same period of delay. The Employer shall effect Works the Period of Delay stated in the Appendix. If the insurance is covered by the Contractor
the said extension of the insurance cover not less than one ( 1) Month before the expiry of under Cla?ses 19.0 and 20.A, the Con~ctor shall ensure full insurance coverage for the
the insurance currently in force. Where deductibles are specified in the Appendix or in the whole penod of postponement or suspension or if the ins"!Jf3llce is covered by the Employer
insurance policy, the Contractor shall bear the amount of all deductibles. The insurance under Clause 20.B or 20.C, the Employer shall ensure similar insurance coverage.
policy shall also include the endorsement under Clauses 19.l(a) to (d).
22.0 Damages For Non-Completion
Additional risks 20.C.2 Any additional risks or endorsements which vary from those stated in Clause 20.C.l shall
required by be specified in the Contract Bills, and the Employer shall ensure that the risks specified in Liquidated 22.1 If the Contractor fails to complete the Works by the Completion Date, and the Architect is
Contractor the Contract Bills are covered by the CAR;Ipsurance policy. If the Contractor having regard Damages and of the opinion that the same ought reasonably so to have been completed, the Architect
to his indemnity to the Employer und~.t,;lause 18.0, desires to have further additional Certificate of shall issue a Certificate of Non-Completion. Upon the issuance of the Certificate of Non-
endorsements to the insurance in additiOii to the risk specified, he shall do so at his own Non-Completion Completion, the Contractor shall pay or allow to the Employer a sum calculated at the rate
cost. stated in the Appendix as Liquidated Damages for the period from the Completion Date to
the date of Practical Completion. The Employer may recover such sum as a debt or may
Maintenance of 20.C.3 The. Employer shall maintain a proper insurance policy against the aforesaid risks and such deduct such sum from any monies due or to become due to the Contractor under the
insurance by policy and receipt for the last premium paid for its renewal shall, upon the request of the Contract or the Employer may recover Such sum from the Perfonnance Bond. The
Employer Contractor, be produced for his inspection. Employer shall inform the Contractor in writing of such deduction or such debt due from
the Contractor. The imposition of Liquidated Damages by the Employer shall not be taken
Failure of 20.C.4 If the Employer at any time upon the request of the Contractor fails to produce any receipt into account by the Architect in the issuance of payment certificates and Final Certificate,
Employer to showing as aforesaid to be effective, then the Contractor may take out and maintain in the and is not subject to the set-offprocedures under Clause 30.4 and adjudication.
insure joint names of the Employer, Contractor, sub-contractors and all interested parties, the
CAR Insurance policy as required under Clauses 20.C.l and 20.C.2. The Contractor upon Agreed 22.2 The Liquidated Damages stated in the Appendix is a genuine pre-estimate of the loss and/or
production of the receipt of any premium paid by him shall be entitled to have the amount Liquidated damage which the Employer will suffer in the event that the Contractor is in breach of
added to the Contract Sum. Damages amount Clauses 21.0 and 22.0. The parties agree that by entering into the Contract, the Contractor
shall pay to the Employer the said amount, if the same becomes due without the need for
the Employer to prove his loss and/or damage unless the contrary is proven by the
Contractor.

**Strike out Clause 20.A, 20.B or 20.C as appropriate

PAM Contract 2006 (Without Quantities) 22 PAM Contract 2006 (Without Quantities) 23
Certifitate of 22.3 In the event the Architect issues a Certificate of Extension of Time under Clauses 23.4, Relevant Events 23.8 The following are the Relevant Events referred to in Clause 23.0:
Non-Completion 23.9 and 23.10 which has the effect of fixing a Completion Date which is later than the date
revoked by stated in a Certificate of Non-Completion previously issued, such. certificate shall have the 23.8(a) Force Majeure;
subsequent effect of revoking the Certificate of Non-Completion earlier issued. The Employer shall
Certificate of then revise the amount of Liquidated Damages he is entitled to retain. In the event the 23.8(b) exceptionally inclement weather;
Extension of amount of Liquidated Damages retained exceeds the amount the Employer is entitled to
Time retain, he shall repay the surplus amount to the Contractor within the Period of Honouring 23.8(c) loss and/or damage occasioned by one or more of the contingencies referred to
Certificates from the date of the latest Certificate of Extension of Time. If the Works is not in Clause 20.A, 20.B or 20.C as the case may be, provided always that the
completed by the Completion Date stated in such Certificate of Extension of Time, the same is not due to any negligence, omission, default and/or breach of contract
Architect shall issue a further Certificate of Non-Completion. by the Contractor and/or Nominated Sub-Contractors;

23.0 Extension Of Time 23.8(d) civil commotion, s'trike or lockout affecting any of the trades employed upon
the Works or any of the trades engaged in the preparation, manufacture or
Submission of 23.1 If the Contractor is of the opinion that the completion of the Works is or will be delayed transportation of any materials ar.d g0ods required for the Works;
notice and beyond the Completion Date by any of the Relevant Events stated in Clause 23.8, he may
particulars for apply for an extension of time provided always that: 23.8(e) the Contractor not having received in due time the necessary AI (including
extension of time those for or in regard to the expenditure ofP.C. Sums and Provisional Sums,
23.l(a) the Contractor shall give written notice to the Architect his intention to claim further drawings, details, levels and any other information) for which he had
for such extension of time together with an initial estimate of the extension of specifically applied in writing tO the Architect. The Contractor's application
time he may require supported with all particulars of the cause of delay. Such must be submitted to the Architect in sufficient time before the
notice must be given within twenty eight (28) Days from the date of the AI, commencement of construction of the affected works, to enable the Architect
CAI or the commencement of the Relevant Event, whichever is earlier. The to issue the necessary AI within a period which would not materially affect the
giving of such written notke shall be a condition precedent to an entitlement progress of the affected works, having regard to the Completion Date.
of extension of time; and Provided always that the AI was not required as a result of any negligence,
omission, default and/or breach of contract by the Contractor and/or
23.l(b) within twenty eight (28) Days of the end of the cause of delay, the Contractor Nominated Sub-Contractors;
shall send to the Architect his final claim for extension of time. duly supported
with all particulars to enable the Architect to assess any extension of time to be 23.8(!) delay by the Employer in giving possession of the Site or any section of the
granted. If the Contractor fails to submit such particulars within the stated time Site in accordance with Clauses 21.1 and 21.2;
(or within such longer period as may be agreed in writing by the Architect), it
shall be deemed that the Contractor has assessed that such Relevant Event will 23.8(g) compliance with AI issued by.the Architect under Clauses 1.4, 11.2 and 21.4;
not delay the completion of the Works beyond the Completion Date.
23.8(h) delay on the part of Nominated Sub-Contractors for the reasons set out in
Delay by 23.2 Where the particulars of the written notice given under Clause 23.1 include references to Clauses 21.4(a) to 21.4(w) of the PAM Sub-Contract 2006;
Nominated Sub- Nominated Sub-Contractors, the Contractor shall forthwith send a copy of such written
Contractor notice and particulars to the Nominated Sub-Contractor concerned. 23.8(i) re-nomination of Nominated Sub-Contractors as set out in Clause 27.11;

Insufficient 23.3 If the Architect is of the opinion that the particulars submitted by the Contractor are 23.80) delay on the part of craftsmen, tradesmen or other contractors employed or
information insufficient to enable him to decide on the application for extension of time, the Architect engaged by the Employer in executing work not forming part of the Contract
shall within twenty eight (28) Days from receipt of the Contractor's particulars under or the failure to execute such work;
Clause 23.l(b), inform him of any deficiency in his submission and may require the
Contractor to provide such further particulars within a further twenty eight (28) Days or 23.8(k) delay or failure in the supply of materials and goods which the Employer h<~.d
within such period of time as may be stated by the Architect in writing. agreed to supply for the Works;

Certificate of 23.4 When the Contractor has submitted sufficient particulars for the Architect's consideration, 23.8(1) the opening up for inspection of any work covered up, testing any materials,
Extension of the Architect shall subject to Clauses 2.3.5. 23.6 and 23.8, consider the Contractor's goods or executed work in accordance with Clause 6.3, unless the inspection
Time submission and shall either reject the Contractor's application or issue a Certificate of or test:
Extension of Time within six (6) Week..:;: from the receipt of sufficient particulars. The
Architect may issue the written notice of rejection or the Certificate of Extension of Time 23.8(1)(i) is provided for in the Contract Bills;
before or after the Completion Date.
23.8(1)(ii) shows that the works, materials and goods were not in
Other 23.5 In assessing the extension of time, the Architect may take into account the following: accordance with the Contract; or
consideration for
extension of time · 23.5(a) the effect or extent of any work omitted under the Contract, provided always 23.8(l)(iii) is required by the Architect in consequence of some prior
that the Architect shall not fix a Completion Date earlier than the Completion negligence, omission, default and/or breach of contract by the
Date stated in the Appendix; and Contractor;

23.5(b) any other Relevant Events which in the Archit.ect's opinion will have an effect 23.8(m) any act of prevention or breach of contract by the Employer;
on the Contractor's entitlement to an extension of time.
23.8(n) war damage under Clause 32.1;
Contractor to 23.6 The Contractor shall constantly use his best endeavour to prevent or reduce delay in the
prevent delay progress of the Works, and to do all that may reasonably be required to the satisfaction of 23.8(o) compliance with AI issued in connection with the discovery of antiquities
the Architect to prevent and reduce delay or further delay in the completion of the Works under Clause 33.1;
beyond the Completion Date.
23.8(p) compliance with any changes to any law, regulations, by-law or terms and
Notification to 23.7 The Architect shall notifY every Nominated Sub-Contractor in writing of each decision of conditions of any Appropriate Authority and Service Provider;
Nominated Sub- the Architect when fixing a later Completion Date.
Contractors

PAM Contract 2006 (Without Quantities) 24 PAM Contract 2006 (Without Quantities) 25
 23.8(q) delay caused by any Appropriate Authority and Service Provider in carrying 24.l(b) within twenty eight (28) Days after the matters referred to in Clause 24.3 have
out, or failure to carry out their work which affects the Contractor's work ended, the Contractor shall send to the Architect, complete particulars of his
progress, provided always that such delay is not due to any negligence, claim for loss and/or expense together with all necessary calculations to
omission, default and/or breach of contract by the Contractor and/or substantiate his claims. If the Contractor fails to submit the required particulars
Nominated Sub·Contractors; within the stated time (or within such longer period as may be agreed in
writing by the Architect), it shall be deemed that the Contractor has waived his
23.8(r) appointment of a replacement Person under Articles 3, 4, 5 and 6; rights for loss and/or expense.

23.8(s) compliance with J\.1 issued in connection with disputes with neighbouring 24.2 The Contractor shall keep contemporaneous records of all his claims for loss and/or
Access to
property owners provided always that such dispute is not caused by expense and shall submit all particulars to the Architect. The Architect and Consultant shall
Contractor's
negligence, omission, default and/or breach of contract by the Contractor have access to all books, documents, reports, papers or records in the possession, custody or
books and
and/or Nominated S_ub-Contractors; control of the Contractor that are ffiaterial to the claim and the Contractor shall provide free
documents
of charge, a copy each to the Architect and Consultant when requested. All such documents
23.8(t) delay as a result of the execution of work for which a Provisional Quantity is shall remain available in accordance with this clause until all claims have been resolved.
included in the Contract Bills which in the opinion of the Architect is not a The Contractor shall use his best endeavour to ensure that all such documents in the
reasonably accurate forecast of the quantity of work required; possession, custody or control of sub-contractors and/or suppliers that are material to the
claim are similarly available.
23.8(u) failure of the Employer to give in due time entry to or exit from the Site or any
part through or over any land, by way of passage adjoining or connected to the Matters 24.3 The following are the matters referred to in ClaUse 24.1:
Site and in possession or control of the Employer; materially
affecting the 24.3(a) the Contractor not having received in due time the necessary AI (including
23.8(v) suspension by the Contractor of his obligations under Clauses 30.7 and 30.8; those for or in regard to the expenditure ofP.C. Sums and Provisional Sums,
regular progress
of the Works further drawings, details, levels ·and any other information) for which he had
23.8(w) suspension of the whole or part of the Works by order of an Appropriate specifically applied in writing to the Architect. The Contractor's application
Authority provided the same is not due to any negligence, omission, default must be submitted to the Architect in sufficient time before the
and/or breach of contract by the Contractor and/or Nominated Sub- commencement of construction of the affected works, to enable the Architect
Contractors; and to issue the necessary AI within a period which would not materially affect the
progress of the affected works, having regard to the Completion Date.
23.8(x) any other ground for extension of time expressly stated in the Contract. Provided always that the AI was not required as a result of any negligence,
omission, default and/or breach of contract by the Contractor and/or
Extension of time 23.9 Whe~e a Relevant Event occurs after the issuance of the Certificate of Non-Completion, the Nominated Sub-Contractors;
after the issuance Architect shall grant an extension of time. The extension of time granted shall be added to
of Certificate of the Completion Date of the Works or any section of the Works. delay by the Emplpyer in giving possession of the Site or any section of the
24.3(b)
Non-Completion Site in accordance with Clauses 21.1 and 21.2;
Architect's 23.10 The Architect may (but not obliged to) within twelve (12) Weeks after the date of Practical compliance with a written instruction issued by the Architect in regard to the
24.3(c)
review Or Completion review and fix a Completion Date later than that previously fixed, if in his postponement or suspension of all or any part of the Works to be executed
extension of time opinion the fixing of such later Completion Date is fair and reasonable having regard to any under Clause 21.4;
after Practical of the Relevant Events, whether upon reviewing a previous decision or otherwise and
Completion whether or not a Relevant Event has been specifically notified by the Contractor under 24.3(d) delay on the part of craftsmen, tradesmen or other contractors employed or
Clause 23.1. No such final review of extension of time shall result in a decrease in any engaged by the Employer in' executing work not forming part of the Contract
extension of time already granted by the Architect. In the event the fixing of such later or the failure to execute such work;
Completion Date affects the amount of Liquidated. Damages the Employer is entitled to
retain, he shall repay any surplus amount to the Contractor within the Period of Honouring 24.3(e) delay or failure in the supply of materials and goods which the Employer had
Certificates. agreed to supply for the Works;

24.0 Loss And/Or Expense Caused By Matters Affecting The Regular Progress Of The 24.3(!) the opening up for inspection of any work covered up, testing any materials
Works and goods or executed work in accordance with Clause 6.3, unless the
inspection or test showed that the works, materials and goods were not in
Loss and/or 24.1 Where the ~egular progress of the WorKs or any section of the Works has been or is likely accordance with the Contract or was in the opinion of the Architect required in
expense caused to be matenally affected by any of the matters expressly referred to in Clause 24.3, and the consequence of some prior negligence, omission, default and/or breach of
by matters Contractor has incurred or is likely to incur loss and/or expense which could not be contract by the Contractor;
affecting the reimbursed by a payment made under any other provision in the Contract, the Contractor
regular progress may make a claim for such loss and/or expense provided always that: 24.3(g) any act of prevention or breach of contract by the Employer;
of the. Works
24.l(a) the Contractor shall give written notice to the Architect of his intention to 24.3(h) delay as a result of a compliance with AI issued in connection with the
claim for such loss and/or expense together with an initial estimate of his claim discovery of antiquities under Clause 33.1;
duly supported with all necessary calculations. Such notice must be given
within twenty eight (28) Days from the date of the AI, CAl or the start of the 24.3(i) appointment of a replacement Person under Articles 3, 4, 5 and 6;
occurrence of the matters referred to in Clause 24.3, whichever is the earlier.
The giving of such written notice shall be a condition precedent to any 24.30) compliance with a written instruction issued by the Architect in conne~tion
entitlement to loss and/or expense that the Contractor may have under the with disputes with neighbouring property owners provided always that the
Contract and/or Common Law; and same is not caused by negligence, omission, default and/or breach of contract
by the Contractor and/or Nominated Sub-Contractors;

24.3(k) by reason of the execution of work for which a Provisional Quantity is

included in the Contract Bills which in the opinion of the Architect is not a
reasonably accurate forecast of the quantity of work required;

PAM Contract 2006 (Without Quantities) PAM Contract 2006 (Without Quantities) 27
26
 24.3(1) failure of the Employer to give in due time entry to or exit from the Site or any 25.4(b) the Contractor if so required by the Employer or Architect, shall within twenty
part through or over any land, by way of passage adjoining or connected to the one (21) Days of the date of determination, assign to the Employer without
Site and in the possession or control of the Employer; payment the benefit of any agreement for the supply of materials, goods and/or
for the execution of any work for the- purposes of the Contract to the extent
24.3(m) suspension by the Contractor of his obligations under Clauses 30.7 and 30.8; that the same is assignable;
and
25.4(c) the Contractor when instructed in writing by the Architect shall remove from
24.3(n) suspension of the whole or part of the Works by order of an Appropriate the Works any temporary buildings, construction plant, tools, equipment,
Authority provided always that the same is due to negligence or omission on materials and goods belonging to or hired by him. If within a reasonable time
the part of the Employer, Architect or Consultant. after any such instruction has been issued to the Contractor, and he has not
complied therewith, t~en the Employer may without liability remove a~d sell
Loss and/or 24.4 Subject to the Contractor complying with Clause 24.1, the Architect shall ascertain the any such property belonging to the Contractor except those that are on htre and
expense to be amount of such loss and/or expense. Any ainount so ascertained from time to time for such hold the proceeds less all costs incurred to the credit of the Contractor; and
included in loss and/or expense shall be added to the Contract Sum, and if an Interim Certificate is
certificate issued after the date of ascertainment, such amount shall be included in the certificate. 25.4(d) the Contractor shall allow or pay to the Employer all cost incurred to complete
the Works including all loss and/or expense suffered by the Employer. Until
25.0 Determination Of Contractor's Employment By Employer after the completion of the Works under Clause 25.4(a). the Employer shall
not be bound by any provision in the Contract to make any further payment to
Defaults by 25.1 The Employer may determine the employment of the Contractor if the Contractor defaults the Contractor, including paymentS which have been certified but not yet paid
Contractor in any of the following: when the employment of the Contractor was determined. Upon completion of
the W arks, an account taking into consideration the value of works carried out
25.l(a) if without reasonable cause, he fails to commence the Works in accordance by the Contractor and all cost incurred by the Employer to complete the Works
with the Contract; including loss and/or expense suffered by the Employer shall be incorporated
in a final account prepared in accordance with Clause 25.6.
25.l(b) if without reasonable cause, he wholly or substantially suspends the carrying
out of the Works before completion; Records of 25.5 The Architect shall within twenty eight (28) Days of the determination of the Contractor's
Works employment, give a written notice to the Contractor of the date of inspection on Site to
25.l(c) if he fails to proceed regularly and/or diligently with the Works; jointly record the extent of the Works executed and the materials and goods delivered to the
Site. The Contractor shall provide all necessary assistance to the Architect and Consultant
25.l(d) if he persistently refuses or neglects to comply with an AI; to perform their task. Upon completion of the rr,cord by the Architec_t and Consultan~, a
copy shall be sent 10 the Contractor and such recof-ds~ shall form the basts for the e~aluatwn
25.l(e) if he fails to comply with the provisions in Clause 17.0; or of the value of the works executed and materials and goods delivered to the Site by the
Contractor up to the date of determination.
25.1(!) ifhe has abandoned the Works.
Final Account 25.6 The Architect shall within six (6) Months on completion of the Works, submit to the
Procedure for 25.2 Upon the occurrence of any default under Clause 25.1, and if the Employer decides to upon Employer and Contractor for their agreement, a :.final account for all cost incurred to
determinati!ln determine the Contractor's employment, the Employer or Architect on his behalf shall give determination complete the Works including the sums previously certified to the Contractor before the
to the Contractor a written notice delivered by hand or by registered post specifying the date of determination, Liquidated Damages, set-off and all other loss and/or expense
default. If the Contractor shall continue with such default for fourteen (14) Days from the suffered.
receipt of such written notice, then the Employer may, within ten (10) Days from the expiry
of the said fourteen ( 14) Days, by a further written notice delivered by hand or by registered 25.6(a) If nothing in the said final account is disputed by the Employer or Contractor
post, forthwith determine the employment of the Contractor under the Contract. Provided within three (3) Months from the date of receipt of the final account from the
always that such notice shall not be given unreasonably or vexatiously. Architect, the final account shall be conclusive and deemed agreed by the
parties. If the amount in the final account exceeds the total amount which
Contractor's 25.3 In the event of the Contractor becoming insolvent or making a composition or arrangement would have been payable on completion in accordance with the Contract, the
insolvency with his creditors, or have a winding up order made, or (except for purposes of difference shall be a debt payable to the Employer by the Contractor or where
reconstruction or amalgamation) a res~lution for voluntary winding up, or having- a applicable, the Employer may recover such sum from the Performance Bond.
liquidat?r or receiver or manager of his_fusiness or undertaking duly appointed, or having If the said amount is less than the said total amount, the difference shall be a
possessiOn taken by or on behalf of /h,e holders of any debentures secured by a floating debt payable to the Contractor by the Employer.
charge, or of any property comprised ill or subject to the floating charge, the employment
of the Contractor shall be forthwith automatically determined. 25.6(b) If either party has any dispute on the final account, the party disputing the final
account shall by written notice. to the other party (with copy to the Architect)
Rights and duties 25.4 In the event that the employment of the Contractor is determined under Clause 25.1 or 25 3, set out any disagreement complete with particulars within three (3) Months of
of Employer and the following shall be the respective rights and dUties of the Employer and Contractor: the date of receipt of the final account from the Architect. The Architect within
Contractor three (3) Months from the date of receipt of the grounds of dispute shall either
25.4(a) the Contractor shall vacate the Site and return possession of the Site to the amend or not amend the final account. Any party disagreeing with the
Employer who may employ and pay other Person to carry out and complete amended final account or decision not to amend the final account shall refer
the Works and to make good any defects. Such Person may enter upon the the dispute to arbitration under Clause 34.0 within three (3) Months from the
Works and use all temporary buildings, construction plant, tools, materials and date of receipt of the amended final account or decision not to amend the final
goods intended for, delivered to and placed on or adjacent to the Site (except account. Failure to refer the dispute to arbitration within the stipulated time,
those construction plant that is on hire by the Contractor) and may purchase all the final account or amended final account shall deem to be conclusive and
materials and goods necessary for the carrying out and the completion of the agreed by the parties.
Works. The- Contractor if so required by the Employer or by the Architect on
behalf of the Employer shall within twenty one (21) Days of the date of 25.6(c) Any dispute on Liquidated Damages, set-off and interest which the Employer
determination, assign to the Employer the benefit of any agreement for the is entitled to make under the Contract shall be referred to arbitration.
continuation of the hire of construction plant and equipment already on the
Site;

PAM Contract 2006 (Without Quantities) 28 PAM Contract 2006 (Without Quantities) 29
 Remedy limited 25.7 Upon receipt of a written notice by the Contractor from the Employer to determine the 26.2 Upon the occurrence of any default under Clause 26.1, and if the Contractor decides to
to damages only Procedure for
employment of the Contractor, the Contractor shall yield possession of the Site within determine his own employment then, the Contractor shall give to the Employer a written
determination
fourteen (14) Days from the receipt of the said written notice and shall remoVe his notice delivered by hand or by registered post specifying the default. If the Employer shall
~ersonnel and labour force (but not construction plant, tools and equipment unless so continue with such default for fourteen ( 14) Days from the receipt of such written notice
ms~cted by the Architect) from the Site. Irrespective of the validity of the said written then, the Contractor may within ten (10) Days from the expiry of the said fourteen (14)
nottce the Contractor's remedy shall be limited to compensation for damages only. Days, by a further written notice delivered by hand or by registered post forthwith
Employer's 25.8 determine his own employment under the Contract. Provided always that such ·notice shall
The provisions of Clause 25.0 are without prejudice to any other rights and/or remedies not be given unreasonably or vexatiously.
rights and which the Employer may possess.
remedies not
prejudiced Employer's 26.3 In the event of the Employer becoming insolvent or making a composition or arrangement
insolvency with his creditors, or have a winding up order made, or (except for the purposes of
26.0 reconstruction or amalgamation)· a resolution for voluntary winding up, or having a
Determination Of Own Employment By Contractor
liquidator or receiver or manager of his business or undertaking duly appointed, or having
Defaults by 26.1 possession taken by or on behalf of the holders of any debentures secured by a floating
The Contractor ~ay determine his own employment if the Employer defaults in any of the charge, or of any property comprised in or subject to the floating charge, the employment
Employer following:
of the Contractor shall be forthwith automatically. determined.
26.l(a) if t~e Employer fails o.r n~glects to pay the Contractor the amount due on any Rights and duties 26.4 In the event that the employment of the Contractor is determined under Clause 26.1 or 26.3,
certificate (l~ss any Ltqmdated Damages and set-off which the Employer is of Contractor the following shall be the respective rights and duties of the Contractor and Employer:
expressly entitled to make under the Contract) within the Period for Honouring and Employer
Certificates;
26.4(a) the Contractor shall within fourteen (14) Days or within such longer period as
26.l(b) may be agreed in writing by the Architect, remove from the Site all his
if the Employer interferes with or obstructs the issue of any certificate by the temporary buildings, construction plant, tools, materials and goods and shall
Architect;
give facilities for his Nominated Sub-Contractors to do the same; and
26.l(c) if the Employer fails to nominate a succeeding Architect or Consultant in 26.4(b) the Employer shall allow or pay to the Contractor the total value of work
accordance with Articles 3, 4, 5 and 6; or
properly executed and the value of materials and goods supplied including any
26.l(d) loss and/or expense suffered by the Contractor caused by such determination.
if before the date of Practical Completion, the carrying out of the whole or
substantially the whole of the uncompleted Works is suspended for a Records of 26.5 The Contractor shall within twenty eight (28) 1 _Days of the determination of his own
continuous period of time exceeding that stated in the Period of Delay stated in Works employment, give a written notice to the Architect of the date of inspection on Site to
the Appendix by reason of:
jointly record the extent of the Works executed and the' materials and goods delivered to the
Site. Upon completion of the record by the Contractor, a copy shall be sent to the Employer
26.l(d)(i) AI issued by the Architect under Clause 1.4, 21.1 or 21.4 unless and Architect and such records shall form the basis for the evaluation of the v~lue of the
the instruction is issued to rectify any negligence, omission, works executed and materials and goods delivered to the Site by the Contractor up to the
default and/or breach of contract by the Contractor or date of determination.
Nominated Sub-Contractors;
Settlement of 26.6 The Contractor shall within six (6) Months after determination of his own employment,
26.I(d)(ii) the Contractor not having received in due time the necessary AI accounts submit to the Employer and Architect for the Employer's agreement, a final account for the
(including those for or in regard to the expenditure ofP.C. Sums total value of work properly executed, the value of materials and goods supplied and loss
and Provisional Sums, further drawings, details, levels and any and/or eXpense suffered by the Contractor' caused by such determination.
other information) for which he had specifically applied in
writing to the Architect. The Contractor's application must be 26.6(a) If nothing in the said final account is disputed by the Employer within three
submitted to the Architect in sufficient time before the (3) Months from the date of receipt of the final account from the Contractor,
commencement of construction of the affected works, to enable the final account shall be conclusive and deemed agreed by the parties. If the
the Architect to issue the necessary AI within a period which amount in the final account exceeds the sums previously paid to the Contractor
would not mat~riaily affect the progress of the affected works, under the Contract (less any Liquidated Damages and set-off which the
having regarct.tf the Completion Date. Provided always that the Employer is expressly entitled under the Contract), the balance shall be a debt
AI was no~ 1r~quired as a result of any negligence, omission, payable to the Contractor by the Employer within the Period of Honouring
default andlof breach of contract by the Contractor and/or Certificates. If the said amount is less than the said sum, the difference shall be
Nominated Sub-Contractors;
a debt payable to the Employer by the Contractor or where applicable, the
Employer may recover such difference from the Performance Bond.
26.1(d)(iii) delay on the part of craftsmen, tradesmen or other contractors
employed or engaged by the Employer in executing work not 26.6(b) If the Employer disputes the final account, the Employer shall give written
forming part of the Contract or the failure to execute such work; notice to the Contractor setting out any disagreement complete with particulars
or
within three (3) Months of the date of receipt of the final account from the
Contractor. The Contractor shall within three (3) Months from the date of
26.l(d)(iv) the opening up for inspection of any wotk covered up or to receipt of the grounds of dispute, either make such amendment to the final
arrange for or cany out any testing of any work, materials and account as in his opinion may be appropriate, or decide not to amend the fmal
goods in accordance with Clause 6.3 unless the inspection or test account. In the event the Employer disagrees with the amended final account
showed that the work, materials and goods were not in or the decision not to amend the final account, the Employer shall refer the
accordance With th~ Contract, or the inspection and/or test was dispute to arbitration under Clause 34.0 within three (3) Months from the date
in the opinion of the Architect required in consequence of some of receipt of the amended final account or decision not to amend the final
prior negligence, omission, default and/or breach of contract by account. Failure to refer the dispute to arbitration within the stipulated time,
the Contractor.
the final account or amended final account shall deem to be conclusive and
agreed by the parties.

PAM Contract 2006 (Without Quantities)

30 PAM Contract 2006 (Without Quantities) 31
Contractor's 26.7 The provisions of Clause 26.0 are without prejudice to any other rights and/or remedies 27.2(g) that if the Nominated Sub-Contractor fails to complete the sub-contract works
rights and which the Contractor may possess. within the sub-contract completion date or within any extended time granted
remedies not by the Contractor, and the Contractor after having given a written notification
prejudiced to the Nominated Sub-Contractor that the sub-contract works ought reasonably
so to have been completed, the Nominated Sub-Contractor shall pay or allow
27.0 Nominated Sub-Contractors to the Contractor loss and/or expense suffered by the Contractor or an agreed
Liquidated DamageS;
P .C. Sums and 27.1 The following provisions shall apply where P.C. Sums are included in the Contract Bills or
Provisional Sums arise as a result of an AI given in regard to the expenditure of Provisional Sums in respect 27.2(h) that payment to Nominated Sub-Contractor shall be made within seven (7)
-Nominated Sub- of a Person to be nominated by the Architect to supply and fix materials and goods or to Days after the Period of Honouring Certificates and shall be subject to the
Contractors execute works. Such sums shall be expended in favour of such Person as the Architect shall retention and deductions expressly provided under the PAM Sub-Contract
instruct, and such Person who is nominated by the Architect is hereby referred to as 2006; and
"Nominated Sub-Contractor" employed by the Contractor. If the Nominated Sub-
Contractor proposes any alternative design to the sub-contract drawings or. if the sub- 27.2(i) that the Architect, Consultants and their authorised representatives shall have
contract leaves any matter of design, specification or choice of materials, goods and the right of access to the workshops and other places of the Nominated Sub-
workmanship to the Nominated Sub-Contractor, the Nominated Sub-Contractor and not the Contractor in accordance with the 'provisions of Clause 11.2 of the PAM Sub-
Contractor shall be responsible to ensure that such sub-contract works are fit for its Contract 2006.
purpose.
Objection to 27.3 Subject to Clause 27.4, the Contractor shall not be required to enter into a sub-contract with
Nomination of 27.2 The Architect shall not ·nominate any Person as Nominated Sub-Contractor against whom nomination of any Nominated Sub-Contractor against whom the Contractor has made a reasonable
sub-contractor the Contractor makes reasonable objection in accordance with Clause 27.3. The Contractor sub-contractor objection based on available known facts and documented evidence that the financial
shall make such reasonable objection in writing not later than fourteen (14) Days from standing or solvency or technical competence of the Nominated Sub-Contractor is such that
receipt of the nomination instruction from the Architect. The Architect shall not nominate a prudent contractor, having regard to the scope of sub-contract works would be justified in
(except where the Architect and Contractor otherwise agree) any Person who will not enter rejecting the nomination.
into a contract with the Contractor based upon the terms and conditions of the PAM Sub-
Contract 2006 which provides inter alia: Action following 27.4 Where the Architect is of the opinion that the Contractor has made a reasonable objection,
objection of the Architect may either issue further written instructions to remove the objection so that
27.2(a) that the Nominated Sub-Contractor carry out and complete the sub-contract Nominated Sub- the Contractor can enter into the sub-contract, or cancel such nomination instruction and
works in every respect to the reasonable satisfaction of the Contractor and Contractor issue an instruction omitting the work which was the subject of the nomination instruction
Architect and in conformity with all reasonable directions and requirements of or re-nominate another sub-contractor for the sub-contract works.
the Contractor;
Payment by 27.5 The Architect shall direct the Contractor as'to the total value of work properly executed and
27.2(b) that the Nominated Sub-Contractor observe, perform and comply with all the Contractor to include the percentage of the value of the materials and goods stated in the Appendix in the
provisions of the Contract which the Contractor is obliged to perform and Nominated Sub- calculation of the amount stated to be due in any certificate issued under Clause 30.0, and
comply with so far as they relate and apply to the sub-contract works; Contractors shall at the same time when the certificate is issued, inform the Nominated Sub-Contractor
in writing of the amount of the said total value. The sum representing such total value (less
27.2(c) that the Nominated Sub-Contractor indemnity the Contractor against the same any retention and deductions expressly provided under PAM Sub-Contract 2006) shall be
liabilities in respect of the sub-contract works as those for which the paid by the Contractor to the Nominated Sub-Contractor within seven (7) Days after the
Contractor is liable to indemnify the Employer under the Contract; Period of Honouring Certificates.

27.2(d) that the Nominated Sub-Contractor indemnify the Contractor against claims in Failure of 27.6 The Architect may at any time before the issuance of any Interim and Penultimate
respect of any negligence, omission or default of his sub-contractors, his Contractor to Certificate, request the Contractor to furnish to him reasonable proof that all amounts stated
servants or agents or any misuse by him or .them of any construction plant, pay Nominated as due and included in the previous certificates have been discharged. The Contractor shall
access, scaffolding, temporary works, appliances or other property belonging Sub-Contractors provide such proof within fourteen (14) Days of the Architect's request. If the Contractor
to or provided by the Contractor; has any reasons for withholding any Nominated Sub-Contractor's payments under Clauses
16.1 and 26.13 of the PAM Sub-Contract 2006, he shall provide the Architect written
27.2(e) that the sub-contract works. be completed within the period or periods details of his compliance. If the Contractor fails to comply with the Architect's request
specified and the Contractorjhall not without the written recommendation of within fourteen (14) Days, the Architect may (but not obliged to) issue a certificate stating
the Architect grant any ~x,tension of time for the completion of the sub- the amount in respect of which the Contractor has failed to provide such proof. Where the
contract works caused by ally of the Relevant Event stated in Clause 21.4 of Architect has so certified, the Employer may (but not obliged to) pay such amounts directly
the PAlvl Sub-Contract 2006. Where the delays are caused by any negligence, to the Nominated Sub-Contractor and deduct the same from any sums due or to become
omission, default and/or breach of the sub-contract by the Contractor, the due to the Contractor. The Architect may issue the aforesaid certificate irrespective of
Contractor is solely responsible under Clause 21.6 of the PAM Sub-Contract whether or not an Interim Certificate under Clause 30.0 is due for issuance.
2006 to assess and grant an extension of time to the Nominated Sub-
Contractor; Final payment to 27.7 If the Architect. wishes to make final payment to any Nominated Sub-Contractor before
Nominated Sub- final payment is due to the Contractor, and if the Nominated Sub-Contractor has
27.2(!) that when the Contractor and Nominated Sub-Contractor consider that the sub- Contractors indemnified the Contractor against all of his liabilities under the Nominated Sub-Contract,
contract works have been practically completed, the9' shall request the the Architect shall issue a certificate to the Contractor and the Contractor shall pay to such
Architect to issue a certificate to the effect, and if the Architect is of the Nominated Sub-Contractor the amount so certified less any retention and deductions
opinion that the sub-contract works have been completed in accordance with expressly provided under PAM Sub-Contract 2006. Upon such fmal payment, the amount
the provisions ofC1ause 17.1 of the PAM Sub-Contract 2006, the Architect stated in the Appendix as Limit of Retention Fund shall be reduced by tbe sum of the
shall forthwith issue a certificate to the effect; retention released to the Nominated Sub-Contractor.

PAM Contract 2006 (Without Quantities) 32 PAM Contract 2006 (Without Quantities) 33
 Determination of 27.8 The Contractor shall not determine the employment of any Nominated Sub-Contractor
the Nominated without the written consent of the Architect. If the Contractor intends to determine the 28.2(a) that the materials and goods to be supplied shall be of the quality and standard
Sub-Contractor's employment of the Nominated Sub-Contractor, the Contractor shall send to the Architect a specified, provided always that where approval of the quality and standard of
employment written report stating the Nominated Sub-Contractor's default with a copy to the material is a matter of opinion of the Architect, such quality and standard shall
Nominated Sub-Contractor. The Architect may request that the Nominated Sub-Contractor be to the reasonable satisfaction of the Architect;
respond to the Contractor's report before he decides whether or not to give his written
consent. 28.2(b) that the Nominated Supplier shall make good by replacement or otherwise any
defects in the materials and goods supplied which appear within the Defects
Contractor's 27.9 The Contractor shall be fully responsible to ensure that all Nominated Sub-Contractors Liability Period and shall bear any expenses reasonably incurred by the
responsibility for carry out the sub-contract works in accordance with the Nominated Sub-Contract and in Contractor as a direct consequence of such defects provided always that:
Nominated Sub- compliance therewith provide designs (if any), materials, goods and standards of
Contractors workmanship of the quality and standard specified therein to the reasonable satisfaction of 28.2(b)(i) where the materials and goods have been used or fixed, such
the Architect. defects are not such that examination by the Contractor ought to
have revealed them before using or fixing; or
Employer no 27.10 Neither the existence of or the exercise of the foregoing provisions nor anything else
privity of contained in the Contract shall create a privity of contract between the Employer and any of 28.2(b)(ii) such defects are due ~olely to defective workmanship, materials
Contract with the Nominated Sub-Contractors. and goods supplied and not caused by misuse, improper storage
Nominated Sub- or any act or neglect by the Contractor;
Contractors
28.2(c) that the delivery of the materials and goods supplied shall commence and be
Re-nomination of 27.11 If the employment of a Nominated Sub-Contractor is determined by the Contractor with the completed in accordance with a delivery programme to be agreed between the
sub-contractor written consent of the Architect, the Architect shall re-nominate another Nominated Sub- Contractor and Nominated Supplier, or at such times as the Contractor may
due to Contractor. In the event, the Contractor shall be entitled to be paid such difference (if any) reasonably direct;
determination by between the sum payable to the Contractor and the new Nominated Sub-Contractor and the
the Contractor sum payable to the previous Nominated Sub-Contractor after taking into consideration of 28.2(d) that the ownership of materials and goods shall pass to the Contractor upon
any sum that will be recoverable from the defaulting Nominated Sub-Contractor under delivery by the Nominated Supplier, whether or not payment has.been made in
Clause 27.13. An extension of time under Clause 23.8(i) may be granted to the Contractor full; and
but the Contractor shall not be entitled to any damages, loss and/or expense.
28.2(e) that payment to Nominated Supplier shall be made within seven (7) Days after
Re-nomination of 27.12 If a Nominated Sub-Contractor determines his own employment under the Nominated Sub- the Period of Honouring Certificates and shall be subject to the retention by
sub-contractor Contract due to negligence, omission, default or breach of the Contractor, the Architect the Contractor under Clause 28.5.
due to shall re-nominate another Nominated Sub-Contractor. In the event, the Contractor shall be
determination by paid the same sum as would have been payable to the previous Nominated Sub-Contractor. Objection to 28.3 Subject to Clause 28.4, the Contractor shall not be required to enter into a supply contract
the Nominated The Contractor will be liable to pay the new Nominated Sub-Contractor any additional cost nomination of with any Nominated Supplier against whom the Contractor has made a reasonable
Sub-Contractor to complete the Sub-Contract Works and to pay the Employer for all additional costs suppliers objection based on the available known facts and documented evidence that the financial
incurred in re-nomination and loss and/or expense suffered by the Employer by such standing or solvency or technical competence of the Nominated Supplier is such that a
determination. The Contractor shall not be entitled to any extension of time unless and until prudent contractor, having regard to the scope of the supply contract would be justified in
the Contractor has established that the determination by the Nominated Sub-Contractor of rejecting the nomination.
his own employment is invalid. In the event the determination by the Nominated Sub-
Contractor of his own employment has been established to be invalid by arbitration or Action following 28.4 Where such reasonable objection is made, the Architect may either issue further
litigation. Clause 27.11 will apply. objection of instructions to remove the objection so th!it the Contractor can enter into the supply contract
suppliers or cancel such nomination or instruction and issue an instruction omitting the materials and
Contractor to 27.13 In the event the Architect consents to determine the employment of the Nominated Sub- goods which was the subject of the nomination instruction or re-nominate another
recover Contractor under Clause 27.11, the Contractor shall recover all additional expenses Nominated Supplier.
additional (including any additional expenses incurred by the Employer) from the Nominated Sub-
expenses from Contractor as a debt or from any monies· due or to become due to the Nominated Sub- Value of 28.5 The Architect shall direct the Contractor as to the total value of materials and goods
Nominated Sub- Contractor and failing which, the ContraCtor may recover such sum from the Nominated materials and supplied by a Nominated Supplier which has been included in any certificate issued under
Contractor Sub-Contractor's Performance Bond. goods supplied Clause 30.0, and shall at the same time when the certificates are issued, inform the
by Nominated Nominated Supplier in writing of the amount of the said total. The Contractor shall retain
Contractor 27.14 Where the Contractor carries out works for which P.C. Sums and Provisional Sums are Suppliers from the sums included for the value of materials and goods the percentage of such value
permitted to included in the Contract Bills, the Contractor shall be permitted to tender for the same. If stated in the Appendix as Percentage of Certified Value Retained up to an amount not
tender for P.C. the tender of the Contractor for such work is accepted, it shall be considered as a Variation exceeding five (5) percent of the Nominated Supplier's sum. The Contractor's interest in
Sums and the Contractor shall not be entitled to profit and attendance charges as priced under the any sums so retained shall be fiduciary as trustee for the Nominated Supplier (but without
relevant P.C. Sum, notwithstanding the provision of Clause 30.11 (c). obligation to invest); and the Contractor's beneficial interest in such sums shall be subject
only to the right of the Contractor to have recourse from time to time for payment of any
28.0 Nominated Suppliers amount which he is entitled under the nominated supply contract to deduct from any sum
due or to become due to the Nominated Supplier. Upon the Architect having certified the
P.C. Sums and 28.1 The following provisions of this clause shall apply where P.C. Sums are included in the release of the Retention Fund under Clause 30.6, such sums shall be released to the
Provisional Sums Contract Bills or arise as a result of an AI given in regard to the expenditure of Provisional Nominated Supplier within seven (7) Days after the Period of Honouring Certificate and
-Nominated Sums in respect of Person to be nominated by the Architect to supply any materials and that if and when such sums are released to the Nominated Supplier, they shall be paid in
Suppliers. goods to be fixed by the Contractor. Such Person as the Architect shall instruct is referred fulL
to as "Nominated Supplier".
Payment to 28.6 All payments in respect of the value of materials and goods supplied by a Nominated
Nominated 28.2 The Architect shall not nominate any Person as a Nominated Supplier against whom the Nominated Supplier shall be made within seven (7) Days after the Period of Honouring Certificates and
Suppliers and Contractor makes a reasonable objection in accordance with Clause 28.3. The Contractor Suppliers shall be subject to the retention by the Contractor under Clause 28.5.
their obligations shall make such reasonable objection in writing not later than fourteen (14) Days from
receipt of the nomination instruction from the Architect. The Archite6t shall not nominate
(except where the Architect and Contractor otherwise agree) any Person who will not enter
into a contract of sale which provides inter alia:

PAM Contract 2006 (Without Quantities) 34 PAM Contract 2006 (Without Quantities) 35
 If the Contractor after receipt of the written notice from the Employer or the Architect on
Contractor's 28.7 The Contractor shall be fully responsible for any negligence, omission, default and/or
his behalf, disputes the amount of set-off, the Contractor shall within twenty one (21) Days
liability for breach of contract by the Nominated Supplier and the Employer shall in no circumstances
of receipt of such written notice, send to the Employer delivered by hand or by registered
Nominated be liable to the Contractor.
post a statement setting out the reasons and particulars for such disagreement. If the parties
Suppliers
are unable to agree on the amount ofset-offwithin a further twenty one (21) Days after the
receipt of the Contractor's response, either party may refer the dispute to adjudication under
Employer no 28.8 Neither the existence of or the exercise of the foregoing provisions nor anything else
Clause 34.1. The Employer shall not be entitled to exercise any set-off unless the amount
privity of contained in the Contract shall create a privity of contract between the Employer and any of
has been agreed by the Contractor or the adjudicator has issued his decision.
Contract with the Nominated Suppliers.
Nominated
30.5 The Employer may retain the percentage of the total value of the work, materials and goods
SuppH.ers Retention Fund
referred to in Clause 30.2, which is stated in the Appendix as Percentage of Certified Value
Retained. When the sum of the· amounts so retained equals the amount stated in tl1e
29.0 Works By Craftsmen, Tradesmen Or Other Contractors Employed Or Engaged By
Appendix as Limit of Retention Fund or that amount as reduced under Clauses l6.l{d) and
Employer
I6.l{f) and/or Clause 27.7, as the case may be, then no further amounts shall be retained by
Works by 29.1 The Contractor shaH permit the execution of work not forming part of the Colltract on the virtue of this clause.
Employer's Works by craftsmen, tradesmen or other contractors engaged by the Employer. Such
30.6 The amount retained under Clause 30.5 shall be subjected to the following rules:
craftsmen craftsmen, tradesmen or other contractors engaged by the Employer shall be deemed to be a Rules regarding
Person for whom the Employer is responsible and not to be a sub-contractor of the Retention Fund
30.6(a) the Employer's interest in any amount so retained shall be fiduciary as trustee
Contractor.
for the Contractor, Nominated Sub-Contractors and Nominated Suppliers (but
without obligation to invest) and the Contractor's, Nominated Sub-
30.0 Certificates And Payment
Contractors' and Nominated Suppliers' beneficial interest shall be subject only
to the right of the Employer to have recourse from time to time for payment of
Payment 30.1 The Contractor shall submit a payment application at the Interim Claim Interval stated in
any amount as the Architect may certify that he is entitled under the Contract
application and t~e Appendix with complete details and particulars as required by the Architect, to enable
to deduct from such sum due or to become due to the Contractor, Nominated
issuance of h1m to consider and ascertain the amount to be included in an Interim Certificate. Upon
Sub-Contractors and Nominated Suppliers. In the event any of the party elects
Architecfs receipt of the Contractor's details and particulars, the Architect shall, within twenty one (21)
to demand in writing from the Employer (with a copy to the Architect) for
certificate Days from the date of receipt of the Contractor's application, issue an Interim Certificate to
such Retention FWld to be paid into a trust account, such fund shall be paid by
the Employer wit~ a copy to the Contractor, and the Employer shall thereafter pay the
the Employer within fourteen (14) Days into an escrow account to be held by a
amount certified to the Contractor within the Period of Honouring Certificates. Any failure
stakeholder appointed by the party 111.?king the application. All incidental costs
by the Contractor to submit a payment application shall be deemed to be a waiver of his
of settjng up such a trust account• s!,J.all be borne by the Contractor or
contractual entitlement for that Interim Certificate, and the Architect may or may not issue
an Interim Certificate under the circumstances. After the issuance of the Certificate of Nominated Sub-Contractors or Nominated Suppliers as the case may be;
PractiCal Completion, Interim Certificates shall be issued as and when further amounts are
30.6(b) when the Employer exercises any right under the Contract to deduct from any
ascertained by the Architect as payable to the Contractor by the Employer.
monies due to or become due to the Contractor or where applicable, the
Nominated Sub-Contractors or Nominated Suppliers, he shall inform the
Amount due in 30.2 The amount stated as due in an Interim Certificate shall, subject to any agreement between
the parties as to stage payments, be the total value of the work properly executed and relevant party in writing of the reason for that deduction;
Architect's
certificate include the percentage of the value of materials and goods stated in the Appendix up to the
30.6(c) upon the issuance of the Certificate of Practical Completion, the Architect
date ofthe Contractor's payment application less any amount which may be retained by the
shall within fourteen (14) Days issue a certificate for the release of one half of
Employer under Clauses 30.5 and 30.6 and, less the amounts previously certified under
the Retention Fund and the Contractor shall be entitled to payment thereafter
Clause 30.1. The materials and goods must be for incmporation into the permanent works
and have been delivered to and properly stored at the Site and be protected against loss, within the Period of Honouring Certificates; and
damage or deterioration, and be in accordance with the Contract. The certificate shall only
30.6(d) upon the issuance of the Certificate of Making Good Defects, the Architect
include the value of materials and goods which are reasonably, properly and not
shall within fourteen (14) Days issue a certificate for the residue of the amount
prematurely brought to the Site.
then so retained and the Contractor shall be entitled to payment within the
Errors in 30.3 Save for clerical, computational or typog.raphical error or errors of a similar nature, the Period of Honouring Certificates.
payment Architect shall not be entitled to revise 1mf correct any payment certificate issued by him
under the Contract. Provided always th'ai the Architect may, by a later certificate, make 30.7 Without prejudice to the Contractor's right to determine his own employment under Clause
certificate Suspension of
correcti~n or modification in respect ofady valuation errors in any earlier certificate. Works for non- 26.0, if the Employer fails or neglects to pay the Contractor the amount due as shown in the
payment certificate (less any Liquidated Damages and set-off which the Employer is
payment
expressly entitled to make under the.Contract) and continue such default for fourteen (14)
Set-off by 30.4 The Employer shall be entitled to set-off all cost incurred and loss and expense where it is
Employer Days from the receipt of a written notice delivered by hand or by registered post from the
expressly provided under Clauses 2.4, 4.4, 5.1, 6.5(e). 6.7, 14.4. 15.3(b) I5.3(c), 15.4. 15.5.
19.5 and 20.A.3. No set-offunder this clause may be made unless: Contractor stating that if payment is not made within the fourteen (14) Days, the Contractor
may by a further written notice delivered by hand or by registered post, forthwith suspend
30.4(a) the execution of the Works until such time payment is made. Provided always tlmt such
the Architect (on behalf of the Employer) has submitted to the Contractor
complete details of their assessment of such set-off; and notice shall not be given unreasonably or vexatiously.

30.4(b) the Employer or the Architect on his behalf has given the Contractor a written <::ompulsory 30.8 If the Architect and/or Consultant inform the Contractor in writing of their withdrawal frcm
suspension of the supervision of the execution of the Works required under the local building by-laws for
notice delivered by hand or by registered post, specifying his intention to set-
Works whatever reasons, the Contractor shall forthwith suspend the execution of the Works and
off the amount and the grounds on which such set-off is made. Unless
expressly stated elsewhere, such written notice shall be given not later than continue such suspension until the resumption of the said supervision.
twenty eight (28) Days before any set-off is deducted from any payment by the
Cessation 30.9 If the Contractor suspends the Works in accordance with the provisions of Clauses 30.7 and
Employer.
insurance 30.8, he shall secure and protect the Works during the period of suspension and ensure that
Any set-offby the Employer shall be recoverable from the Contractor as a debt or from any resulting from there is separate cessation insurance cover for all the risks specified in Clauses 19.0 and
suspension of the 20.A or 20.B or 20.C for the whole period of suspension. The cost incurred for such
monies due or to become due to the Contractor under the Contra"ct and/or from the
Perfonnance Bond. · Works protection and cessation insurance cover shall be added to the Contract Sum.

37
PAM Contract 2006 (Without Quantities) 36 PAM Contract 2006 (Without Quantities)
 Final Account 30.10 Within six (6) Months after Practical Completion of the Works, the Contractor shall send to Conclusiveness of 30.12 Unless a written notice for arbitration shall have been given under Clause 34.0 by either
the Architect and Consultant, all documents necessary for preparing the Final Account, the Final party within the stipulated time stated in Clause 30.10, the Final Account or the last
including all documents relating to the accounts of Nominated Sub-Contractors (if these Account amended Final Account shall be conclusive and deemed agreed by the parties other than
had not been submitted earlier under the Nominated Sub-Contract) and Nominated any outstanding items to be resolved separately between the Employer and Contractor
Suppliers. Such documents shall contain all the latest construction drawings and details under Clauses 30.ll(e) to 30.ll(g), except where the Final Account is erroneous by reason
(bound together), details of all quantities, rates and prices and any adjustment of the of:
Contract Sum and additional payment or compensation claimed by the Contractor under the
Contract together with any explanation and supporting vouchers, documents and 30.12(a) fraud, dishonesty or fraudulent concealment relating to the Works; or
calculations, which may be necessary to enable the Final Account to be prepared by the
Architect. The Final Account shall be completed within six (6) Months from receipt of all 30.12(b) any arithmetical errors in any computation.
the documents from the Contractor. The period for completion of the Final Account shall
be adjusted if there is any delay by the Contractor in sending the necessary documents. In Issuance of 30.13 The Architect may issue a Penultimate Certificate for the release of the retention sums and
the event the Contractor fails to submit all documents necessary for preparing the Final Penultimate any other outstanding sums for all Nominated Sub-Contractors and/or Nominated Suppliers
Account, the Architect shall nevertheless complete and issue the same ba~ed on the Certificate not later than fourteen (14) Days after the Certificate of Making Good Defects has been
information available within the Period to complete the Final Account stated in the issued.
Appendix. On completion of the Final Account, the Architect shall then send a copy of the
document to the Employer and Contractor.
Issuance of Final 30.14 The Final Certificate shall be issued:
30.IO(a) Certificate
If nothing in the said Final Account is disputed by the Employer or Contractor 30.14(a) within twenty one (21) Days after the Period of Honouring Certificates for the
within three (3) Months from the date of receipt of the Final Account from the payment of the Penultimate Certificate; or
Architect, the Final Account shall be conclusive and deemed agreed by the
parties.
30.14(b) within twenty eight (28) Days after the Certificate of Making Good Defects
30.10(b) has been issued, in the event no Penultimate Certificate has been issued.
If either party disputes the Final Account, the party disputing the Final
Account shall by written notice to the other party (with copy to the Architect) Final Certificate 30.15 The Final Certificate shall state:
set out any disagreement complete with particulars within three (3) Months of
the date of receipt of the Final Account from the Architect. The Architect 30.15(a) the Final Account; less
within three (3) Months from the date of receipt of the grounds of dispute shall
either amend or not amend the Final Account. Any party disagreeing with the 30.15(b) the total sums certified in previous payment certificates (whether paid or not
amended Final Account or decision not to amend the Final Account shall refer paid) to the Contractor;
the dispute to arbitration under Clause 34.0 within three (3) Months from the
date of receipt of the amended "Final Account or decision not to amend the and the difference, if any, between the sums shall be the balance due to the Contractor by
Final Account. Failure to refer the dispute to arbitration within the stipulated the Employer or conversely as the case may be. The balance shall be payable by the
time, the Final Account or amended Final Account shall deem to be conclusive Employer to the Contractor within the Period of Honouring Certificates or if it is a debt
and agreed by the parties.
payable by the Contractor to the Employer, shall be payable by the Contractor within the
30.10(c) Period of Honouring Certificates. The Architect shall not be obliged to issue the Final
Any dispute on Liquidated Damages, set-off and interest which the Employer Certificate before the issuance of a Certificate of Making Good Defects.
is entitled to make under the Contract shall be referred to arbitration.
Items in Final 30.11 The Final Account of the Works shall show: Final Certificate 30.16 The Final Certificate shall be conclusive on the final value of the Works with the exception
Account not conclusive of any outstanding claims between the Employer and Contractor under Clause 30.11. The
30.ll(a) Final Certificate shall not be conclusive 'evidence that any work, materials and goods to
the adjustment made to the Contract Sum;
which it relates and designs (if any) executed by the Contractor and/or Nominated Sub-
30.ll(b) Contractors are in accordance with the Contract.
the amounts to which the Architect considers that the Contractor is entitled
under the express provisions of the Contract;
Interest 30.17 If the Employer fails to pay the Contractor the amount due on any certificate (less any
30.ll(c) Liquidated Damages and set-off which the Employer is expressly entitled to make under
the omission of all P.C. Sums ~nd the related profit provided by the Contractor the Contract) aftef the Period of Honouring Certificates, or the Contractor owes a debt or
in the Contract Documents a:nc:l the substitution of the amounts payable by the fails to pay any sum due and owing to the Employer within twenty-one (21) Days after
Employer to the Nominit¥d Sub-Contractors and Nominated Suppliers receipt of written notification by the Employer of such debt or amount owing, a simple
together with the pro-rata amOunt for profit; and
interest based on the Maybank Base Lending Rate plus one (1) percent shall be payable by
30.ll(d) the defaulting party on such outstanding amount until the date payment is made.
the adjustment of Provisional Sums and omission of any Provisional Sums if
not expended.
31.0 Outbreak Of Hostilities
The following shall not be included in the Final Account and are matters to be resolved Hostilities- If during the currency of the Contract there is an outbreak of hostilities (whether war is
31.1
separately between the Employer and Contractor:
determination by declared or not) in which Malaysia is involved on a scale involving the general mobilisation
30.ll(e) Employer or of the Malaysian Armed Forces in which the Works are to be carried out, then either the
any Liquidated Damages imposed by the Employer under Clause 22.1; Contractor Employer or Contractor may at any time by written notice delivered by hand or by
30.11(1) registered post to the other, forthwith determine the employment of the Contractor under
set-off by the Employer where it is expressly provided in the Contract under the Contract.
Clause 30.4; and.

30.ll(g) Notices of 31.2 Provided always that such written notice shall not be given:
interest payable by either of the parties to the other party under Clause 30.17. determination
31.2(a) before the expiration of twenty eight (28) Days from the date on which the
order is given for general mobilisation as aforesaid; or

31.2(b) after Practical Completion of the Works unless the Works have sustained war
damage as defined in Clause 32.2.

PAM Contract 2006 (Without Quantities)

38 PAM Contract 2006 (Without Quantities) 39
AI regarding 31.3 After a written notice under Clause 31.1 has been given by either the Contractor or the Notice to refer to 34.2 Where a party requires a dispute or difference under Clause 34.1 to be referred to
protective work Employer, the Architect may within fourteen (14) Days issue AI to the Contractor requiring adjudication adjudication, such disputes or differences shall be referred to an adjudicator to be agreed
the execution of protective work and the Contractor shall comply with such AI, as if written between the parties. If after the expiration of twenty one (21) Days from the date of the
notice of determination had not been given. written notice to concur on the appointment of the adjudicator, there is a failure to agree on
the appointment, the party initiating the adjudication shall apply to the -President of
If the Contractor for reasons beyond his control is prevented from completing the work to Pertubuhan Akitek Malaysia to appoint an adjudicator, and such adjudicator so appointed
which the said AI relate within three (3) Months from the date on which the AI was issued, shall be deemed to be appointed with the agreement and consent of the parties to the
he may abandon such work. Contract.

Payment 31.4 Upon the expiration of fourteen ( 14) Days from the date on which written notice of Adjudication 34.3 Upon appointment, the adjudicator shall initiate the adjudication in accordance with the
resulting from determination has been given by either party under Clause 31.1, or where on completion of Rules current edition of the PAM Adjudication Rules or any modification or revision to such
determination the works required by the Architect under Clause 31.3, or abandonment as the case may be rules. ·
of any such work, the provisions of Clause 26.4 shall apply.
Decision of the 34.4 If a party disputes the adjudicator's decision, he shall nevertheless be bound by the
32.0 War Damage adjudicator adjudicator's decision until Practical Completion but shall give a written notice to the other
party to refer the dispute which was the subject of the adjudication to arbitration within six
Procedures 32.1 In the event of the Works or any unfixed materials and goods intended for, delivered to and (6) Weeks from the date of the adjudicator's decision. The adjudicator's decision shall be
following war placed on or adjacent to the Works sustain war damage then notwithstanding anything final and binding on the parties if the dispute on the adjudicator's decision is not referred to
damage expressed or implied elsewhere in the Contract: arbitration within the stipulated time. The "parties may settle any dispute with the
adjudicator's decision by written agreement between the parties or by arbitration under
32.l(a) the occurrence of such war damage shall be disregarded in computing any Clause 34.5.
amounts payable to the Contractor under or by virtue of the Contract;
Disputes referred 34.5 In the event that any dispute or difference arises between the Employer and Contractor,
32.l(b) the Architect may issue AI requiring the Contractor to remove and/or dispose to arbitration either during the progress or after completion or abandonment of the Works regarding:
of any debris and/or damaged work and/or to execute such protective work as
specified; 34.5(a) any matter of whatsoever nature arising under or in connection with the
Contract;
32.l(c) the Contractor shall reinstate or make good such war damage and shall
proceed with the carrying out and completion of the Works, and the Architect 34.5(b) any matter left by the Contract to the discretion of the Architect;
shall grant to the Contractor a fair and reasonable extension of time for the
completion of the Works; and 34.5(c) the withholding by the Architect of.,any certificate to which the Contractor
may claim to be entitled to; .~: ~ .-
32.l(d) the removal and disposal of debris or damaged work, the execution of
protective works and the reinstatement and making good of such war damage 34.5(d) the rights and liabilities of the parties under Clause 25.0, 26.0, 31.0 or 32.0; or
shall be deemed to be a Variation required by the Architect.
34.5(e) the unreasonable withholding of con~nt or agreement by the Employer or
Definition of war 32.2 The expression ''war damage" means: Contractor,
damage
32.2(a) damage occurring (whether accidentally or not) as the direct result of action then such disputes or differences shall be referred to arbitration.
taken by the enemy or action taken in combating the enemy or in repelling an
attack by the enemy; Procedures for 34.6 Upon the disputes or differences having afisen then:
appointment of
32.2(b) damage occurring (whether accidentally or not) as a direct result of measures arbitrator 34.6(a) any party may serve written notice on the other party that such disputes or
taken under proper authority to avoid the spreading of or otherwise to mitigate, differences shall be referred to an arbitrator to be agreed between the parties;
the consequence of such damage as aforesaid; and

32.2(c) accidental damage occurring as the direct result of any precautionary or 34.6(b) if after the expiration of twenty one (21) Days from the date of the written
preparatory measures taken Under proper authority with a view to preventing notice to concur on the appointment of the arbitrator, there is a failure to agree
or hindering the canying out of any attack by the enemy or of precautionary or on the appointment, the party initiating the arbitration shall apply to the
preparatory measures involving the doing of work in anticipation of enemy President of Pertubuhan Akitek Malaysia to appoint an arbitrator, and such
action involving a substantial degree of risk to property. arbitrator so appointed shall be deemed to be appointed with the agreement
and consent of the parties to the Contract.
33.0 Antiquities
Arbitration Act 34.7 Upon appointment, the arbitrator shall initiate the arbitration proceedings in accordance
Antiquities 33.1 All fossils, antiquities and other objects of interest or value which may be found on the Site and Rules with the provisions of the Arbitration Act 2005 or any statutoty modification or re-
property of or in excavating the same during the progress of the Works shall become the property of the enactment to the Act and the PAM Arbitration Rules or any modification or revision to
Employer Employer. Upon discovery of such objects the Contractor shall forthwith cease work and such rules.
shall not disturb the object and take all necessary precautions to preserve the object in the
exact position and condition as it was discovered. He shall immediately notify the Architect Powers of 34.8 The arbitrator shall without prejudice to the generality of his powers, have power.
or the Site Staff of the discovery and the Architect shall issue written instruction in this arbitrator
regard to what has to be done. 34.8(a) to rectify the Contract so that it accurately reflects the true agreement made by
the Employer and Contractor;
34.0 Adjudication And Arbitration
34.8(b) to direct such measurements and/or valuations as may in his opinion be
Set-off disputes 34.1 Reference to adjudication is a condition precedent to arbitration for disputes under Clause desirable in order to determine the rights of the parties;
referred to 30.4. The parties by written agreement are free to refer any other disputes to adjudication.
adjudication Any dispute under Clause 30.4 after the date of Practical Completiofl shall be referred to 34.8(c) to ascertain and ~.ward any sum which ought to have been the subject of or
arbitration under Clause 34.5. included in any certificate;

PAM Contract 2006 (Without Quantities) 40 PAM Contract 2006 (Without Quantities) 41
 34.8(d) to open up, review and revise any certificate, opinion, decision, requirement, 36.l(b) ordinary mail or registered post; or
or notice;
36.l(c) facsimile transmission.
34.8(e) to detennine all matters in dispute submitted to him in the same manner as if
no such certificate, opinion, decision, requirement or notice had been given; Notice deem 36.2 Any written notice or other document shall be deemed to have been duly served upon and
served received by the addressee:
34.8(1) to award interest from such dates at such rates and with such rests as he thinks
fit: 36.2(a) if delivered by hand, at the time of delivery;

34.8(f)(i) on the whole or part of any amount awarded by him in respect of 36.2(b) if sent by ordinary mail or registered post, after three (3) Days of posting; or
any period up to the date of the award;
36.2(c) if transmitted by way of facsimile transmission, at time of transmission.
34.8(f)(ii) on the whole or part of any amount claimed in the arbitration
and outstanding at the commencement .of the arbitral Proof of Notice 36.3 In' proving the giving of a written notice or any other document under or in respect of the
proceedings but paid before the award was made, iri respect of Contract, it shall be sufficient to show-:
any period up to the date of payment; and
36.3(a) in the case of hand delivery, a signed acknowledgement of receipt;
34.8(g) to award interest from the date of the award (or any later date) until payment,
at such rates and with such rests as he thinks fit on the outstanding amount of 36.3(b) in the case of registered post, a receipt of posting from the Post Office; or
any award.
36.3(c) in the case of facsimile transmission, that the facsimile transmission was duly
Consolidation of 34.9 Where any dispute arises between the Employer and Contractor and the dispute relates to transmitted from the dispatching terminal, as evidenced by a transmission
arbitration the works of a Nominated Sub-Contractor and arises out of or is connected with the same report generated by the transmitting equipment.
proceedings dispute between the Contractor and such Nominated. Sub-Contractor, the Employer and
Contractor shall use their best endeavour to appoint the same arbitrator to hear the dispute Written 36.4 All written communication shall be sent to the address stated in the Articles of Agreement
under Clause 29.3 of the PAM Sub-Contract 2006. communication unless otherwise notified in writing.

Commencement 34.10 Unless with the written agreement of the Employer and Contractor, such arbitration 37.0 Performance Bond
of arbitration proceedings shall not commence until after Practical Completion or alleged Practical
proceeding Completion of the Works or determination or alleged determination of the Contractor's Submission of 37.1 The Contractor shall before the Date of Commencement of the Works, submit to the
employment under the Contract or abandonment of the Works except on: Performance Employer a Perfonnance Bond for a sum equi.valent to the percentage stated in the
Bond Appendix as a security for the due perfo~nce ahd observance by the Contractor of his
34.10(a) the question of whether or not the issuance of an instruction is empowered by obligations under the Contract up to Practicafcompletion of the Works.
these Conditions;
Form of the 37.2 The Perfonnance Bond shall be in the form issued in the terms and conditions specified in
34.10(b) aoydispute or difference under Clauses 31.0 aod 32.0; Performance the Contract or otherwise approved by the Employer.
Bond
34.IO(c) whether or not a certificate has been improperly withheld or not in accordance
with these Conditions; or Validity ofthe 37.3 The Perfonnance Bond submitted by the Contractor shall remain valid until three (3)
Performance Months after the Completion Date. Where the Works would not be completed by the
34.10(d) whether or not a payment to which the Contractor may claim to be entitled has Bond Completion Date, the Contractor shall be:Klre the expiry of the Performance Bond, extend
been properly withheld in accordance with these Conditions. the duration of the Performance Bond to expire three (3) Months after the projected
Practical Completion of the Works.
Arbitrator's 34.11 The award of such arbitrator shall be final and binding on the parties.
award to be final Failure to extend 37.4 If the Contractor fails to provide or maintain the validity of the Performance Bond in
and binding on the validity accordance with this clause, then without prejudice to any other rights and remedies which
parties the Employer may possess, the Employer shall be entitled to withhold or deduct an amount
equal to the Perfonnance Bond from any payment due or to become due to the Contractor.
35.0 Mediation
Payments from 37.5 In the event the Employer determines the employment of the Contractor in accordance with
Mediation under 35.1 Notwithstanding Clause 34.0 of these Conditions, upon the written agreement of both the the Performance Clause 25.0, or if there is any breach of the Contract, the Employer may call on the
PAM rules Employer and Contractor, the parties may refer any dispute for mediation. If the parties fail Bond Perfonnance Bond and utilise and make payments out of or deduction from the
to agree on a mediator after twenty one (21) Days from the date of the written agreement to Perfonnance Bond for the completion of and/or rectification of the Works and
refer the dispute to mediation, any party can apply to the President of Pertubuhan Akitek reimbursement of loss, and/or expense suffered by the Employer. On completion of the
Malaysia to appoint a mediator. Upon appointment, the mediator shall initiate the mediation Works, any balance of monies remaining from the Performance Bond shall be refunded to
in accordance with the PAM Mediation Rules or any modification or revision to such rules. the Contractor without interest.

Mediation does 35.2 Prior reference of the dispute to mediation under Clause 35.1 shall -not be a condition Return of 37.6 In the event the Contractor detennines his own employment in accordance with Clause
not prejudice the precedent for its reference to adjudication or arbitration by either the Contractor or the Performance 26.0, the Employer shall within twenty eight (28) Days return the Perforrnaoce Bond to the
parties' rights to Employer, nor shall any of their rights to refer the dispute to adjudication or arbitration Bond Contractor for cancellation. ·
arbitration under Clause 34.0 of these Conditions be in any way prejudiced or affected by this clause.
38.0 Governing Law
36.0 Notice
Governing Law 38.1 The law governing the Contract shall be the Laws of Malaysia.
Notice 36.1 Any written notice or other document to be given under the Contract shall be given or sent
by:

36.1(a) haod;

PAM Contract 2006 (Without Quantities) PAM Contract 2006 (Without Quantities) 43
42
Appendix
Clause

Defects Liability Period [if none other stated is twelve 15.4

(12) Months from the day stated in the Certificate of
Practical Completion of the Works]

Insurance cover for accidental bodily injury to or illness 19.1 and 20.A or RM ............................................. .
of third parties (whether fatal or not), accidental loss of 20.Bor20.C
or damage to property belonging to third parties (the
aggregate liability of the insurers shall be limited by
twice the limit of indemnity caused by any one
occurrence) [if none stated the insured liability shall be
not less than RMl million]

Insurance deductible amount [if none stated shall be not 19.1 and 20.A or RM ............................................. .
more than RM50,000 an occurrence] 20.B or20.C

Percentage to cover Professional fees for reinstatement 20.A or 20.B or RM ............................................. .

[if none stated is a sum equivalent to 10% of the 20.C
Contract Sum]

Amount for removal of Debris [if none stated is a sum 20.A or 20.B or RM ............................................. .
not less than the equivalent of l% of the Contract Sum] 20.C

Value of existing structure together with all the contents 20.C RM ............................................. .
owned by the Employer or for which he is responsible
Date of Commencement 21.0

Completion Dafe 21.0

Liquidated Damages 22.0 at the rate ofRM .................... per Day

Sectional Completion (*) · 21.0

Brief description of section of the Work Date of Completion Date (21.0) Liquidated Damages at
Commencement (21.0) the rate of (22.0)

RM ................ per Day

2 RM ................ per Day

3 RM ................ per Day

Period of Delay [if none stated is a continuous period of 21.0 and 26.0
three (3) Months]

Interim Claim Interval [if none stated is one(!) Month] 30.1 and 30.13

Period ofHonouring Certificates [if none stated is 30.1

twenty one (21) Days from the date of the Certificate]

Percentage of the value of materials and goods included 30.2

in the Certificate [if none stated is 100%]

Percentage of Certified Value Retained [if none stated 30.5

is 10% of the value of work executed and materials on
site included in the certificate subject to the Limit of
Retention Fund]

Limit of Retention Fund [if none stated is 5% of the 30.5 RM ............................................. .

Contract Sum] .

Period to complete the Final Account [if none stated 30.10

shall be fifteen (15) Months from the date of Practical
Completion]

Amount of Perfonnance Bond [if none stated is 5% of 37.1 RM ............................................ .

the Contract Sum]

("') Footnote - This is to be used when there are different completion dates for identified sections or parts ofworks

PAM Contract 2006 (Without Quantities) 44

 Agreement And Conditions

Of

PAM Contract 2006 (Without Quantities)

Between

.............................................................................................

·····························································································

And

.............................................................................................
.............................................................................................

Dated the .............. day of .......................... 20.......... .

This Form is issued under the sanction and approval of

Pertubuhan Akitek Malaysia

© Copyright of Pertubuhan Akitek Malaysia

4 & 6 Jalan Tangsi
50480 Kuala Lumpur, Malaysia