Professional Documents
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This Foro has beca approvcd by Attonrcy Gcncrals chanrbcrs pN. (AD!,.)
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CONDHONS OF CONTRACT-TabIe of Conrents
CLAUSE Proe
ARTICT.ESOF AGREEMENT t_3
l. DrrnmoNs amoIx'rrnpnr-renox 4
(a)Definitions A
(D)'Approved"and "directed', A
or 54' where approp.Tate,is expressly r.ser""l. to the t t"uuoi offir.-,] cz.5l. 52 and Goreromcst
o, offi.ccrs a p p r olov e
namedin the Appeodix hereto; vauaqou
(ii) the powerof the S.O.to issueinstructionsrequiringa variation
under-"."oiouo.e
Cla.use 24 shall
be subjectto the fuiancialiimits set out iu ttre afipendix heretoin
rvith
the relevant.Treasury'sIlstructions issu.edby the"reaeral rreasury oi-the
Covern-
ment of.Malaysia-I,f .tlt. 9.o. rs requlrectto rssuean insiructio"-i.qi,iti"e'^avariation
under Clause24 which is beyond-tle limits uert.d il hil bi-iirru.-or the
Treasury'sInstructions,he shail obtain tir. said
fiior-ulproval of th6 retevaniauthoriries
of the Governmentin accordancewith ttre iaia Trtisury's insuucrions.
(b) The Contractorshall not be entitled to claim for any delay aud extension
of time or any No claim for
or exPenseor whatsoeverarising for co-mpliaicewith tle provislionsof thiq compliaDcc.
AtI1,:9:t
LOnOruon.
4. Scope of Contract
The Contractorshall upon and subjectto theseConditionsconsfuct and completethe Works Scopc of
shcwn upon.theContractDrawing;s ani descrifedbi;; r.f.;Jlo i" the Bills of euantjrie, CoqlBct
or Specificationand in the.Articiesof Agreemeutind theseConditit"r-ir i"*pu;il; "nal
therewith,
:tllt-Ti1.ti3l1, soods and worl:manship-of the quality and standardstherein specified.The
Lonractor shall also make good.any defect,.imperfecdon,shrilkage or any othei fault what-
soever which may aPpearduring the DefectsLiabiiity Periot in aicotaunce with Clause45 hereof.
5. S.O.'s Inskuctions
(") jl:.,S.O'
Tiy in his abs,rlute-discretionand from time to time issuefurther drawings,----"--
Dc'qition
9:qll, andi or written inr;tructions(ali of which are hereafter coilectively referred to ij
"S.O.'s instmctions")in n:gard to:
(i) the variation as referred to in Clause 24 hereof:
(ii)
.anydiscrepancyin or betweenthe Contract Documentsas referred.to in Clause 8 (D)
hereof;
(iii) the removalfrom tle Site of any materialsor goodsbrought thereonby the Contractor
-or
and the substitutionsof any oiher materials goods tEerefor;
(iv) the removaland/or re-executionof any works executedby the Contractor;
(v) 4e dismissalfrom the Works of aay pe$on qrentionedin Clause 22bereof.employed
thereupon;
(vi) the openingup for inspection of any work covered up;
(vii) the emssding aod rrraking good of any defectswhatsoeverunder Clause 45:
(viii) any. matter-which is necessaryaud incidental to the carryiDg out arrd completioo
of the Works under this Coniract;
(ix) any matter in respectof which the S.O. is expressiyempo'wered by this Coatractto
issueiustructious.
Compliance
wirh S.O.'t
(D)fhe Contractorshail (srlbjectto sub-ciause (c) hereoflforthwith complywith all instructions
instructiont. iszuedto ltlt by the S.O.If within seven(7) daysafter receiptof a wiitren noricefrom the
S.O. requirtngcompliancewi.than instructionihe Contractord,Jesnot comply therewith,
then the S.O. without prejudiceto any other rights or remediesavailableto lhe Covern-
ment underthis Contractmay employand pay-otherpersonsto executeany work what.
soeverwhich.Pay 9e necessary to-giveeftecl6 such instructionand all cos'tsincurredin
connectionwith suchemp.loyment shall be recoverabiefrom tbe Contractorby the Covern-
ment or the S.O. on its behalf as a debt or may be deductedby the Govirnmentfrom
any moniesdue cr to becomedue to the contraitor under this cbntracr
.S.O.'r (c) All instructionsissued.bythe S.O.shallbe issuedin writing. Any instructionissuedorally
instructionr
to bc in shall be of no immediateeffect,but shall be confirmedii' wriiing by rhe Contractorto
wriling.
the S.O.within seven(7) daysafter receiptof the oral instructioi aioresaid.and if not
dissented from in writingby the S.O.to the Contractorwithin seven(7.)daysfrom receipt
of the Contractor'sconfirmationshall take effectas from the expirationof-the latter said
seven(7) days.Providedalwaysthat if the S.O. within seven(7) daysof givingsuch an
oral instructionshall himself confirm the same in writing. then-the Contrictor-shallnot
be obligedto confirm as aforesaid,and the said instruction shall ta-keeffectas from the
date of the S.O.'sconfirmation.
Claim for (d) If in compiiancewith the S.O.'sinstructionas aforesaidiuvolvesexpenseor loss beyond
compliaoce
wirh S.O.'r that ,reasonablycontempiatedby the Contractorfor which the Coniractorwould ndt be
instructioos. reimbursedby a. paymentmade under any other provision
-this in this Contract,then unless
the same were issued owing to some breach of Contract by the Contractor,the
' Contractorshall within one (l) month of receiptof such instruction,give noticein writing
of his intentionto claim for suchexpenseor loss to the S.O. togetherwjth an estinare
of the amotrntof such expenseand/or loss,subjectalways to Claluse48 (a) hereof.
6. Notices
The Contractor slhall notify the S.O. an address where written notices and instructions of the
S.O. under this Contract may be served upon him and shall inform the S.O. of any change in
his address. ln the event of the Contractoi failing to notify the S.O. of such an add-ressor any
change in his addrq;s, such written notices and instructions-shall be deemed to have been served
upog tfe Contractor if they are sent to him by registeredpost to tle address stated in this Contract
or if they are left art his office on the Site hnd-an acknowledgement receipt thereof is slteinsd
fron the Contractor's Site agenl
7. Contrsct Ilocunents
Currody ot (a) The Contract Documents as aforesaid shall remain in the custodv of the S.O. and sball
Conr18ct ue yrvuseeu
Documcntr.
ho n-n.1"^-.1
as
-.
and
^-l
when required
t',L-- -^^,,i-^l L,,.L^
by the /Contractor.
r^-+-^^.^-
Copic: ol (D)Immediately after the executionof this Contract the S.O. shall lurnish without charge to
Contract
Documcntr. the Contractor(uniesshe shall have beenpreviouslyfurnished)with:
(i) one ce.rtifiedtrue copy of the ContractDocuments;
(ii) two copiesof the ContractDrawings:and
(iii) two copies -of-the unpriced Biils of Quantities and (if requestedby the Contractor)
one copy of the priced Bills of Quantiries.
Copie: ol . (c) The S.O shail, as and when Decessary and without charge to the Contractor,furnish
PorkinB
orEwng3, him with two copies of such further' working drawingsbr details as are reasonably
necessary either to explain and amplify the Contract Drawings or the Specification (if any;
or to enable the Contractor to constructancl complete the Works in accordancewith
this Contract.Provided that nothing cotrtainedin the said working drawingsor derafu
shall imposeany obligationbeyond-thoseimposed by the Contract-Documeits.
Documcnu (d) The Contlqctor shall keep one copy of the Contract Drawings, the Specification(if any),
os Siro,
unpricedBills of Quantitiesand other like documentsreferredto in zub-ciause (c) hereof
on tbe Site and the S.O. shall at all reasonabletimes have accessto ttre same.
Rcrum of (e)Upon final p,aymenton the Final Certificateunder Clause 48 hereof the Contractorshall
oocum6u.
if so requestedby thg S.O.,forthwith reilrn to the S.O. all drawings,details,speci-fications,
unpricedcopy of Bills of Quantitiesand other documentsof like nature.
RBtrlctloD (f) None of the documentshereinbeforemeationed shall be used by the Costractor for any
la so.
purpose otber than this Contract
8. Sufficiency of Contract Docrrments
(a) The Contract Documents are to be takeu as mutually explanatory of one another. The g:ll':.,,_.-
Contractor shail provirJe everything necessaryfor the proper .*.cuiion of the Works unril H:ilfi',:"
Its complettonaccordirrgto the true intent and meaning of the Contract Dccuments takea cxpho3torv
together whether the s;amemay or may not be particularly shown or described provided
the same is reasonabl,l inferred therefrom.
(b) If the Contractor shall find any discrepancyin or divergence between any two or more Discrcpucv.
of the Contract Docu:ments including i distrepancy or liuetgence between parts of any
one of t-hem,he shaii immediately give to th6 S.O. a writtei notice sper:ifying the Ois-
-thereto.
crepancy or divergence and the S.O. shail issue instructions in resard Provided
always that such discrepancy or divergenceshall not vitiate this 6ntract.
iiliix:El,it:?iBit1,*o1lj#J,,'i1;'J,.j5lffi1%,5T;;:Ji;1
",.,'Jlitt.::"'lti:i""""x:
relatingto the empioymentot-*o.tn.n, or any subsequenr
rnodification
C r r r rn r r n r c
1 9 5 5E t c .
1?Ul"-::1::f,rh,.:law
vr re v1r4e!r"v'r c'greof. Provided that the Contractor shail not be entitled io uny claim for
additionai costs and payments whatsoeverin r.sp;;;i hi;;;;;""..?ir["iirir"doiririoo.
--I3l::t^"o*".Tjse lrovided elseq'herein this Cootract, the Conrractor shall keep corrstantly on Forcman and
toc )lte ot ue works a competent general foreman and such assistantsin each tiade
as may be 4sistuts.
necessary.who must be capable o:[ reqeiving instructions in Bahasa Maliysia
ot Engfitn, and in
aq{l"Jl they shall be supplied-bythe Goveriment and all wages and ottr.iexp.nses-l"n-conn.ction
with, the employment of such foien:an shall be borne solely U! tfre Contractor.'
-the-.purpose Suctr for,:man shall
be cleemed to be the Site. agent.of the Contractor-for of this Contiact and any
directions, expianations or insiructions given to such foreman U'y-in" S.O. shall be deemr:d
to have
Deen gtven to the Contractor under this Contract.
24. Variations
Powcr to (a) The S.O. may at his absolute discretion issue instructions requiring a variation and he
order aDd
subsequcnt may confi.rm in writing pursuant to Clause 5 (c) hereof any oral instrucrion requiring a
conf matioa. variation to the Works. No variation required by the S.O. or subsequently conirmed by
him shail viriate this Contracl
De6sition (D) The terrn "variation" means the alteration or modification of the design, quaiity or
of vanalroq. quandry of the Works as shown upon the Contract Drawilgs, Bills of Quantities and/or
Specificati,rn,and includes the addition, omission or substiturion of any work, the altera-
tion of th,=kind or standard or any of the materials or goods to be'used in the Works
and the removal from the Site of any work, materiais or goods executed or brought thereon
by the Contractor for the purposes of the Works other than work, materials or goods
which are not in accordance with this Contract.
The vaiuation of such remeasured works including any variation shall be in accordance
with rules (i) and (ii) of sub-clause (b) above.
Da]ryorks. (d) Where work cannot properly be measured or valued the Contractor shall be allowed day-
work price, plus fifteen per cent, which shail include for the cost of all ordinary plant, toois,
scaftolding;,supervision and profrt. Provided always that as a condition precedent to any
right to any pa)'ment the Contractor shall produce vouchers,,receipts and wage books
specifying the time for labour and piant employed and materials used to the S.O. not
exceedingseven(7) days after the work shall have been done. Unless otherwise provided
in the Bills of Quantities the day-work prices for lhe purpose of this Contract shall be
taken to mean the actual net ccst to the Contractor of his materials, plant .and labour for
the work concerned.
Mea.3ur"BGa.L (e) The S.O. shall when he requires any part or parts of the Works to be measured give
reasonablenotice to the Coirtractor who shall attend or send a qualified agent to assist
the S.O. or S.O.'s Representative in making such measurement and shall furnish all
particulars required by-the S.O. Should the Contractor not attend or neglect or omit to
-lhe then-the measurement made by the S.O. or approved by him shall be
iend such agent
taken to tre correct measurement of the work. The Contracfoi shall b6 suppiied with
a copy of the measuredbill in respect of the said part or parts of the Works.
Ad jusrmat
to cosrrs€t
- The amourntto be allowed in respect of variations, as ascertainedunder the provisions of
(f)
this Condition shall be added to or deducted from the Contract Suo as the case may bc.
10
26. BiIIs of euartities
(a) The Bills of Quantities
shall form
hereof'thequaiity -part of this contract. subject to clauses g (c) ana 15 8",i,or
oi th. *o*,
".4 A;;;ry tt' sittr-"it"o*"u,ii'
be'thatle-t-;;;'i" Io"'t.'.*..uted under,-hii--con,ru.r
shar, Fi;:..,
B'""{;:I'!"H. *hi; ,i,iii ui'lir! basrs
or r.re
(6) The Bills of Quantities,unless
otherwtj.-:I!-..rr,ly sraredin respectof any specified
or items'shailbe deemedto-ttuu. be-en preparea-in irem s,.,a""a
standard Method or Mi"tu....1t""j-t","^*ilw;;ff u."o.au";";i;.t!."'iLn"ir.,t".,'.,,p
as pubrished by the
Merhodor
16" il:ffL3t,
Surveyors(lr4aiaysia) to, ui"-ln j.vr.araysra. H:tl;ii|t"""?
(c) where quantities-are statedas "prov,isional".
ot r'rtework but they 'arenot to b'e.taken such quantitiesare the estimatedquantitiesprovisional
as th;;ff;nd..correct!"""iili*Jor the works .aJT"T:j
to be executedby the cot ti".toi in
fulfiiimenl;f il obiigationsunder trre uonrracl
(4ot:;:oJ,e..jTf bcEsrina-
srgnlngof 18'?riiffift'l'1p".t
$:'*:il t.,,',"f#',,ji1olJ"*"":;,;;fii";JlJ
this Contractbe adjustedur tnr-s.ci.'-uy
f,ill"*,
rl oelorethe SioG.
r.orooubiy require.
(ii) Any adjustment of the.pricesu.o-d/o,rates
paragraph(t) above and anv arithmatical in the Bills.of euantitiesrequiredunder
..ror oi omissioni":G.'nirrr"of euantities
shallbeforethe-signingof thls cont*.i-!. *...lln.o and adiustedthar when
caiculated,
thetotil airounti" G i;;;d correnirw
;iif;-Bil'ilqr-6".#,i;,.;r'Jti:|,:?T.'r'.1i1
the sameamo-untrnsthe tenderamount in'the
shownin the Form of rendei tirurr ..-"io'fi;ft F".tt "t render. The tender amouut.
the differeucebet$/eentha totai adjustiJ ;;;;fu but the oett aggregare amountof
Quanritiesand the tender *qyti, ihown the summaff ,j'i ti,. Bils of
-*r."I"ftln th.- Form of rendei, whether a
deductionor nett ^ddition' ihuil u" nett
amounrshownjn the Summaryof tire gilis-oi ;; a percentageof the total adjusted
tliroughoutthe Bijrs of euaniities 6uuot ri.s and ali pricesand/or rares
6; ;;b;;
.$art _to sugh p.r.enrage discountsor
premiumsas the casemay be. provided-atway;;i;;ptriri*ui-ffi'pfr';.
sictr.cat.ui;;;;;;;';mii'oo, Cost Sums
;i,^.|ff f i',:11"[:rn u" ilj#j" ;il percentase
27. Sub-Letting and Assignment
(a) Except'where otherwise p-rovided
whole or anv part, of the
'worla .b.y this contract the contractor shall not sub-let the coc"nrnr
;iti";"thJp;d;:;ii1:a consent of the s.o. which shall rbcs.o.
not be unreisonab.ly o'iirrrr.lJ*to'the prejudir.-"r
given' shail not relieve the contric"t?rI"n,,";; ih.-contractor, and su,:h consent, if
riluility
and he shall be responsible.for the due observance or obligation under this conrract
terms, stipulations and conditioor un-a*- tli;^ by such sub_contractorsof all the
c;;;.#- The conrractor shalr arso be
responsible for the acts, defaults or neg.lects
oi-u'nf-suu-contractor. (including in this
instance, "labour only" iub-contru.torij, ii
1g.",*^'i.rvants or workmen as fuly as if
they were the acts, de?aultsor neglectsoi.trr.
cZnii".ai i,r, agents, serva'ts or workmen.
Provided always that the provisiSn oi i;fi.;^;-pli'..*ort
to be a subJetting under tlis conoruon- 'wura basis
uasrs snatl
shal not
D{)t be deemed
(D) It shatt be a condition in any sub-letting
which may occur. that the employment.of the
sub-contractorunder the sub-6ontr".i rnir_i.i..-ii.'iriir.at"l.i;
-co-n;;;;"n;;. Detcmirari.o
of ttre Contractor'semplolment una.r itir ,r;"";ffi"dit.rroiouton 9l_,r!:.
Falracr.
by the contractor anl/6r sub-contractor againJ crarm whasoever s;hall be made
G.-'cou.-ment for auy work done
and/or materials'or gocrdssupplieO.
(c) Att sub'contractors employed--in connection
with the works shall be errLployedfror'
within the Distrjct wher'e the works ar. siruated E-o,or-"n,
anJ-*h.r. such sub-contractors are not orsub-
available in the said District, then fr.om ;ithi;-#:tli. coolnclort
. *h.r. the works are siruated.
This provisionmay be varied onty with-th;;;d;
i'ii!", of the s.o.
(d) The contractorshall not assignthis,c?:llTt
or.anypart thereof,or any benefitor inrerest
therein or thereunder,othenfrsethen by ;way of aisilnment in favour As*nmeor
bankersor any financiaiinstitutiono. b;rp6r;;;";ffi; of the contractor,sorboc6tr.
under this contract, without the prior wntten consetrt monies due or to becomedue
of the Govemmenl
28- Nominaterl sub-confractors and/or Nomiuatedsuppriers
(a) Atl speciaiis8,merchants,tradesmenand others
executing any_work or seryices,o!
suppiyingany materialsor goodsfor which prim.-cosi sums (or ,
p.C. Sums)are rncruoeo Dc'nitioa.
in the Bills of Quantitiesdr for *tti.tt ttti so.-rr"r gii.n.
f!e tue
*.itt.n ilril;i;;; in regard
n ha
tr'\Psuuirure
--^.-'l
of Pr,cvisional-ruppii.t,
Sums,.who may beithnut4
declaredio be.-sub-co"ti""ioiiot by the S.O. are hereby
;,npl'"y;; li ti,. contracror anrr are hereia
referred to as "|'Ieqlsated sub-contradtiit';-or-;'froi:iuto
supplierE,,,as the <aseoay bc.
11
Nomin3tirou (D) The S.O. or the Contractor if so instructed in writing by the S.O., shall obtain tenders for
. Nominated Sub-contractor'swork or services,or for the supply of materials or goods iD
respect of which Prime Cost Sums or Provisionai Sums are included in the Bills of
Quantities as aforesaid and tbe Contractor shall on the written instruction of the S.O.
enter into such sub-contracts with the Nominated Sub-contractor or Nominated Supplier
as the case may be and such sub-contractsshall be in the form as refened to in sub-clause
(c) (ii) of this Condition.
Obicclion to (c) The S.O. shail not nominate as a sub-contractor or a supplier in connection c/ith the
noninatiog.
Works:
(i) a per:;on against whom the Contractor shall make in writing within fourteen (14) days
of the S.O.'s instruction under sub-clause (b) hereof what the S.O. considers to be
reasonableobjection; or
(ii) a per:;on who wiil not enter into a sub-contract with terms anci conditions as provided
in th: Government standard form of sub-contract for Nominated Sub-contractor
(Form PWD 203N) or for Nominated Supplier (Form PWD 203P), as the case
'5e.
may
PowcE (d) If pursuant to sub-clause (c) above, the Contractor is not required to gnter into a sub-
fol.lowiqg
objccdoa.
contract with a Nominated Sub-contractoror Nominated Supplier, as the case may be,
the S.O. shall do one or more of the following:
(i) nomirrate an alternative sub-comtractor or supplier, as the case may be, in which
case sub-clause (c) hereof shall apply;
(ii) by order under Clause 24 vary the Works or the work or services, materials or
Coods,the subject of Prime Cost Sums or Provisional Sums as aforesaid. including
if uecessarythe omission of auy such work or services, naterials or goods so that
they :lay be provided by workmen, coutractors or suppliers, as tle case may be,
emplc,yed by the Government either concurrently with the Works or at some other
date:
(iii) in accordance with Clause 30 ({ an'auge for the Contraotor to execute such work
or services, or to supply such materials or goods.
PaymcDt trt (e) Interim Certificates of the S.O. i:r favour of the Contractor uncler Clause 47 hereof shall
Nomiratcd
Sub-con-
state separately the amounts in each certificate due to each individual Nominated Sub-
lraclor or coatractor or Nominated Supplier as the vaiue of their work or seryices,materials or goods
Nominarcd
Supplicr. executed or delivered at the relevant date under the said Clause, which amounts shall be
paid by ther Contractor to such Norninated Sub-contractor or Nominated Suppliers within
fourteen (14) days of receipt by the Contractor from the Government of the amounts so due
under the certifi.cateof the S.O. Provided that the Contractor is entitled to deduct any sum
due to him by the Nominated Sub-conFactor or Nomiuated Supplier.
Payment (/) Provided always that before issuing any certificate uuder Clause 47 bereof, the S.O. shall
be entitled to demand from the Contractor reasonable proof that all :mounts included
in previous certificates in respectof the total value of woik or seryices,materials or goods
executed or delivered by any Nominated Sub-contractor or Nominated Supplier have been
paid or disr:hargedby the iontractor, in default whereof the Go,vernment'shall be entitled
to pay direct the amounts due, but which have not been paid, to such Nominated Sub-
contractor ,cr Nominated Supplier upon the certificate of the S.O. Provided furtber that
in the even'l of such default, the Government shall be entitled to make all payuents direct
to such Nominated Sub-contractor or Nominated Supplier of all amounts which may
subsequentlybecome due to such Nominated Sub-contractor or .Nominated Suppiier which
amounts have been certified by the S.O. pursuant to sub-clause (e) bereof. The amounts
so paid direct to the Nominated Sub-contractor and/or Nominated Suppiiers by the
Government pursuant to this sub-clauseshall be deducted from any sums due or which
may beconre due from the Government to ttre Contractor.
No priYity
13)Neither the existelce nor the foregoing powers nor anything else contained in this Contract
of Conrract
DC!WeO
shall create a privity of contract between the Government a.nd any Nomiuated Sub-
Goremmen( contractor or Nomiuated Supplier or render the Government liable to any of them-
sd Nomisa-
ted Sub-
contBctor
rno/or
Nominated
Supplicr.
29. Responsibilities of Contractor for Nominated Sub-conbactors aad,/ss Nominsted Suppliers
Reposibi- (a) In and for the purpose of this Contract, the Contractor shall be fully responsibie to ensure
lirics for
Noninatcd
that the Nominated Sub-contractor and/or Nominated Supplier shall conforrn with the
Sub<oD- terms and conditions of this Contract and shall be fully responsible for the acts, defaults
tractoB
rod / or or breach of any terms and/or conditions of this Contract by the Nominated Sub-
Nomiratcd
Supplics-
contractors and/or Nominated Suppiierson their part in the same way as for his own
or those of other sub-contractors or suppiiers engaged by himself, and the Government
shail il nc) circumstaoces be iiable to tbe Contractor for the default of aDy Nominated
Sub-contractors or |.{smin3ted Strpplie$.
1'
(D) rn the eveat of repudiation
or abandonment of his sub-contract by any l{ominated
contractoror Nominated Supplier,or the dererminationtt;; Sub- rcmiratjoo
C;#i"r;i rhe pmnrn,,- orsub-
con'(ract
mentor t-heNominat':dSub-contractor
or xomin"t.a sfn'r1i.i f;i;;;;;}Hi:'jJ;J;
underthesub-contract,
thecontractor
shaildo ;;. ;i urerouowrng:
(i) with the consent:of the S-o. (such consent
not to be uareasonablywiithheld) empioy
another comPet€:ntsub-contractor or suppiiei 1o-cornptete
the sub-contracr; or
(ii) himself undertal:e to complete tle sub_contmct.
Provided that in any of such events the Contractor
is entitied to be paid the same sum
for tie work or servi,les to be e.recuted,or -ut"riuL
ir gooas to be supplied, as would
have been hld the .o.rigina.l
NbrainitiJ-Ju!-loot.u.tor or Nomjnated supptier
P1y^19J.
completedthe sub-corLtract
wittrout any default oo Li, p"rr
l3
'
Negligcne 1^\ Tlro inr{emni
dereated
\e, ^ ..v
of Oovcm-
34. TVorkmen's
Compensation
lndcmiry to (a) The Contractorshall be Iiable for an,l slall indemnify and keep indernnified
Govemes!. the Govern-
ment and its offi.cers or servatrtsfrom a-illiabilities arisingout oi c,laimsby any aud every
y:*Iil,employed in .andfor the performanceof this dootru.i io; p;fi.;t'of .o*p.o-
sanon under or -by vlrtue of the Workmen's CompensationOr:din-ance 1952 and'the
Employee'sSocial SecurityAct, 1969 or ioi 6*riiTw amendinet or replacins such law
and from all costsand expenses incidentaland consequ.oti^iGiilto.
(D) (i) Without.prejudiceto his
liability to indemnify the Goverumentunder sub-clause(a)
Taking of
EtuEn*.
above,the Contractorshall at his own cost and expenseand as a condition
to the cornmencemert freceOeni
of-any_workunder this Coirtracttake out in the joiirt names
of the Governmentand the Contractor (and of the Contractofsown sub-contractors,
if any) a poiicy or policiesof insurancefrom au upprou.d ioiui-"r .o-p"oy as are
the iiability of the Contractorin iespectof workmen dmpl,cyedby
*:.t:1?,!o
nlm and by :9u.i
hls own sub-contractors, and shail causeiny No,mi-nated Sub-contractor
to take oui, as a precedentto the ofioy woit unaer tne
,condition
sub'contra,:t,a pojicy
Ql Policiesof insurance"o*to.o..ro.ot
in th-loint nanes of th" Government,
the Contractorand the NominatedSub-contract;; o...rrary to cover-tnetiiUitity
of the Contractorin resPectof workmen employed "r by
"ir the f.fi,m|'inatea
bub-"ootru.tot.
EDqOSCmCnB (ii) The said policy or poiiciesso taken out shall be endorsedas follows:
Endorsement33A"-33Jtis herebyunderstoodand agreedthat in the event of any
workmanemployed9.y_ ti,q within insured or by ttre In-sured's ContJctors as referref,
-Uri"grng
to in E:ndorsemeni "B" hereon or.aDJ depeidalt of suin *"it-"r, or
ma\ing a claim under the Workmen's Complnsation Ordinan.ceil-f;; in l,ia:iysi"
a_gatnst,any officerof the Government Malaysia or any SLatethereof for pr.s6nat
injury o:: death or diseasesustainedwhilst.o.f
at ivork oo airy Contract;;";.i by the
terms and conditions of the within policy_ which the ios"rea -t
-Compauy b; i""yiog
out for tte said o6.cer or Governmengthe wiU lnrienniiy ti" oia o6.ei
l4
or Governme't aqainstsuch c.laim and
any costs,
thereot. provided.lilways ttrat tire-E"i"li"gy'r9rr"iii. char*sesand expensesin respect
and control of all proceedings 'with .n,iri.d to have the sote conduct
.connecied .tii*,
Nothing in this.,tilo.t.'n.nt"rrruil'1.'"irrri.,j.i""r,3ff.ecdngcoveredby this endorsement.
recover damagesin any other way under the Insured,s right to
the iiio urdrnance,,.
Endorsement "B'"-"It is h.erebyunderstood
granted is to cover the legai tiauiiity and.agreed that the indemnity herein
of ine jrt"r?a 6 *;.dili-n^'tr.,-.^.*proyment
of conrra_cro1
qlronnin-fyqr$ f;; rh; l,i,;.^."jirirrj"
occupatlo!.in respect of which the-within ."_r"ilj'io",i'J"uuriness
and
regards
ciaimsunder fol.y^tr.granted but only so far as
rheworkmen'sc;;;;"r;;id oiaftun..-rnf;;;i Malaysia,,.
(c) The said oolicy.orpolicies
so taken^outshall bj depositedwith the s.o.
shall maintain'it oi th;; i" r;i";;.t.: and thr3contractor producrio!
and effect by paymentof ail premiumsfrom time orpor,cics.
to time oo o:t *i,i.r,- tir. same oughr io'bb pald for thJ
period and ttin^such-manner
"T:l "" ttrat the a;;i;";;;;';;; whole construcrion
during the DefectsLiabiiity F.-;oa f";;;..;';i.,i'o"..lrion.a h? Governmentare elisocovered
course of any operationsiarried out.b.y by the contmcror in tie
iri",-i"i ii!" pu.por. of-c"#"iiir'r"
obligationsunder'clause 45 he;;of,rna ii srraiiu.'trr.irry 6i trr. complying with his
to the S.o. the receiprsin respeci-oi;;;i;'p;d,'*i,".,n.. produce
demandedor nbt.
(d)rf' any default is mad.eby-the contractor
in complying with the termsof this 'oi[.,Condition Dcrsurrio
the Governmenr the ii.o. u:^-^0..n:Jil;i'';,iii91t
_or
avairabreto the Government "" urlacn or any term
toi- .prquar.. ;-u;i ,._.a, iosuiae.
of this Contract:
(i) withhold an amount from any rr-loney
which
Contractorunder ttris contract an-dwtch i"-ln. would otherwise -oi be 'wl1
ctue to the
any claim for compensation opinion il-. slo. satisty
bv *ort*.n- ttrit'*o"ri rr'""r!.."^u";."b;
had the crrntractornot made defauliln Laintaining insurance
::f/Klt "; insurance,
a policy of
(ii) pay suchpremiumsas havebecome
due and remainunpaidand deductthe amount
of such premiumfr'm any ' moniesd;;1"
this Contract ;;;;" dui to rhe conrracror under
I5
36. Insurance of Works
Riskl to
bo isurcd
(a) The Contractor shall in the joint names of the Government and Contractor insure aeainst
Ioss aDd damage by file, lightning, explosion, storn, tempest, flood, grouqd sub-
sidenee hrrrcti
aeriardevice,sFJ.'u.",J,'T,"#Sr{.:.l:il"*?';rrr:lili'.#*;g T:,,f:i.:jf;J
aDd all urLfixed ma_terialsaod goods, delivered to, placed on 11 scljasent to the Works
and intencled therefor (but excluding temporary buitdings, plia,nt,tools and equipment
owned or hired !f_ qtt" Contractor or any iub-contractor, nominated or otherwise) io the
fuli value thereof (plus any amount whilh may b_especifically rstatedin the Appcndix to
these ConrJilions or e.lsewhslsin the Contrait Docirments) arrd shall keep duch work,
materiais and goods so insured until the completion of the whole of the Wbrks, notwith-
standing any arrangement for Sectional Compietion or Partial Crccupationby the Covern-
'provide-exDressiv
ment undsr thiS Contract. Such insurancepolicy or poiicies shall for
Paym?lt in the first Place to the Governmenf of any iniurance m,rniei due under the policy
or poiicies.
Prcductioo (b) The said irrsurance with or without an excess clause as specified in the Appendix hereto
of policiq.
shall be effectedwith an insurance company approved by ihe S.O. and it striit be the duty
of the Corrtractor to produce to the S.O. thJ iaid polity or proliciesand the receipts in
?Pche.t nf thp
ciause
is spetified
in theAppendix
the
conrracro*h^f'fgl"iil"tfi';rHTi"#i :l:'.::.
Dcfault ia (c) I-n case of faiiure by the Contractor to renew such insurance as are Decessaryunder this
rcncwug
BUTUCC. Condition, the Government or the S.O. on its behaif may renew such insurance and pay
the premiu:n in respect tiereof and deduct the amount so exoended from anv momes ituL
or to becorne due to the Contractor.
AppIqtioa (d) Upon the occurrcnce.of any )oss or damagc to the Works or unfixed materials or goods
o! insuraa6
EOUCS. prior to the completion of the Works from any cause whatsoever, t}re Contractor shall
notwithstandingthat settlementof any insurance claim has not been completed,with due
dlllSencerestore,replaceor repair the same,remove and disposeof any debris and procsed
with the carrying out and completion of the Works. AII moiries if and when received from
the insurance.underthis Clau-seshall be paid in the fi.rst place to the Government and
then (less.onlysuch amounts as are specificallyrequired inihe.Appendix to these ConJi-
tions or elsewherein the Contract Documents)be rdleasedto the Cbntractor by instalments
on the cert:ificatefor payment issued by the'S.O., calculatedas from the date of reeipt
of the monies in_proportionto the extent of the work of restoration,yeplacementor repair
and tle removal and disposal of debris previously carried out by'the Contractor. Ths
Ccntractor shall not be entitled to any piyment in respect of thi: work of resrorarion,
replacementor repair and the removal aird-diiposal of debiis othe:rthan the monies received
under the said insurance.
37. PerfcrmanceBond
(o)
Condition
TItt Contra,:tor shall, as a condition precedent to the commencement of any work under
this Contrar:t,deposit with the Governmcnt a PerformanceBond in cash oi in the form
of Treasu_ry's Deposit. Banker's Draft or an approved Banker's;or Insurance Guarantee
equal to five percent of the Contract Sum for tiid due observanceand performance oi this
'
Contract-
Validity of (b) The Performance Bond shall be held or shall remain valid and effective for such pcriod
Pcr{ormaoF
Bood, as is provided in the approved Banker's or Insurance Guarantee.
AppLiatiou. (c) If the Contr:actorfails to executethe Contract or'commits anv breach of his oblieations
under the Clontract,the Governmentor the S.O. on is behalf hay utilize and makl pay-
ments out of or deductions from the said Performance Bond or anv Dart thereof in
accordance with the terms of this Contract.
Rclease of (d) The Performance Bond (or any balance tirereof remaining for the credit of the Contractor)
Pcrfomucc
Bood. T1y be teleased or refunded to the Contractor on the Completionof making good of all
defects, shrinkages or other faults which may appear durin! thr: Defects Liibitity Pericd
and .upo-n_the giving cf the Certificate of Completion of Making Good Defects for the
whole of th= Works under Clause 45 hereof.
3 8 Possessionof Site
Coaditionr (a) No work on this Contract shall be commenced unless and until the Performance Bond
preceosnt to
commcDcgmenl s t i p u l a t e du n d e r C l a u s e3 7 a n d s u c h i n s u r a n c ep o l i c i e sa s s p e c i h e du n d e r C l a u s e s3 3 , 3 4
of Workr and 36 hereof, shall have been deoosiredwith the Government or the S.O. Provided that
for the purposesof this Condition'only (but for no other),if the Contractor shall prodrrce
to the Government or the S.O. the Pcrformance Bond and the Cover Notes of the said
insurance policies and the receipts of premiums paid, it shall be a sufficient discbarge of
his obligatic'ns under this Condition.
t6
(D) unless the contract Documents shall otherwise
provide, possessionof the site as complete oareror
as may reasonaaly be possible but not so as to ;;;*i;'
.ontiiiut"-u i.r"iivl'rirl'1i-;.";i;;;';;
or before the "Date fof Possession"stated * G L;;i;r
of Acceptanceof render to the
contractor who shall thereupon and forthwirh;;;;;.e.rhe
works (but s:ubjectto sub-
clause (a) hereof) and resulirlv and dilige.ttv pi"l..i'*itn-una-.ot;l;'ih.
or before the Date for Cdmpleiion as staied i'n 'the works on
Appenoix. The ..Date for (-nmnlerinn,'
of the works as
.referr:edtb under clause ls h.t."iihail be caicui"t.d f.H"',ff ,""rd
"Date for possession",
(c) Provided always that possessionof site
pa.y.be given in sections or in parts and any sl[31 posassion
testrictions upon possessionof the Site sh;i il ;;"d l; ovslas*.
th;-A;;;;d; i;';il. conditions
or in the Contract Documents.
(d) In the event.of any delay in giving possession
of the Site from the "Date for possession,,Deray in
as stated in the Letter oi Acceptaicl of rende; e*inl-
it giuir; ^"y;;.;i;" ...,,i16
the Siteasprovidedin. sub-cliuse(c), the so.;t;rue ";;.ht instr,i.tioir il-;.il'ot#'dj !ii:'.:""
revisionof tlte"Datefor Possessiol"_uoa
ttt";;D;;'ilt'a;t;tj;;; ,r,"il'ile'appropriarely
revised under Clause 4:l (d.hereof, lurttre
C;;;;;;r'rhall not be entitlectto claim for
anv.lossg. causedbv suchderayin ;i;ilt;;;r.ssion of th" sli;:-;;, be enritred
.dtrrq:
to determine his own emproymentundei this"coritr'act.
(e) Provided that in the event that the giving
of the possessionof the Site is dr:layed bevond o"r"y
three (3) months of the "Date for Pofsession" stat&-i;-Ge Letter
of-Accepran.y# ff#:1r: !?'""".*
the S.o- shall give written notice to the Contracioi ol il" causes
of such delay. upon the
reggipt of the said.written notice, the Contricioi ruy-uy writen
norice served -- on the S.o.
within fourreen (14) days of receipt of the suia noii.. issued by n.
s.o.:
(i) agrge to proceed with the Works when the Site is
subsequently made available, in
which cas: sub-clause(d) above shall app.lyin pirticular, tir"'Cont*:tor
shall not
oe enntledto clalfir lor any loss or damagecausedby such delay in giving
- possession
of the Site. or
(ii) determine his own under this Contract, without prejudice to any other
rights or remedies.employment
he hay possess.
(fl Where the Government' its employee
it carries out any investigation in relation .or any person or body appointed or authorised bt rnvcsrigarioa
to-"tiy ruitur,i;.;ih;r;u;int *iri.t to',
occured to, in or in connection with the Wori<s"..ia.nt, or any part thereof for the purpose sf l*j::L* caseor
dete.rminingthe causeor reason for the-said..".ic.ni,iuilui. or event, tr,. conti^li5;"r;"ji
render all such necessaryassistance.andfacilitier .r *"y U. i.qui..J fff;,..,..":;
Uy tfrJ'bo".rnment, cvcn!.
its employee or such person or body. including tf,.
!l"'ing of access to -" all ,t
rspecificatious,
designs, records and other available-informadoln .etailg ?o-th" w"rtr.
39. Completion of V[orks
(a) Subject-to any^requirementsas to.the completion of
any section or part of the Works Datcror
under Clauses38 (c) a^nc!4l_,-compietion of ihe whole of itt. Worts,-tti.-Co.ot.u.tor
shall E.-ir"uoo.
uvlrrPrtrttrtttc wholc of the Works on or before the "Date for Completjon"
n n n n l p t o + l " o
stated in the
Appendix or such extendedtime as may be allowed under Ctause 43 herecf.
(b) yll^thervhole of the Works have rea_chedpractical completion according to the provi-
stons of this Contract and to the satisfactiori of the S.O., the date ccrrincat.
i,i.ti- comoleiion orpracricrl
comprctior
$a.ll be JgrJi!.ed !v him and such date shall be the dare of the commen.,-r;;;';i';* "i
ljerects Liability. a-s provided in Clause 45 hereof. The certificare issued under
i9rlod
this sub-clauseshall be referied to as the "Certificate oi practicat CompGti,:n".
40. Damages for Nou-completion
If the Contractor fails to complete the lVorks Uy
l!,*- "Date for Completion" srtatedin the Damages
{Pnendix or *'ithin any extendedtime under Clause 43 hereof and the S.O. certifir:sin writins rorNon-
that in his opinion the same ouqht reasonably so io rr""i-!.* comprction'
compiered rhe Corrtra;i";'J;;ii
pay or allow the Governmenta sum calcuiatei at the rate rtut.a
in if,. ipp."oii""s'fiquiaaiia
and Ascertained Damages for the period during wrti.rr trr. ruiJworLt
shall so remain and have
remained incomplete -issued and th.eS.Q..niay deductsu"ch damagesfrom any monies au. to if,,t Contra*-tor.
The certificate undsr this iondition shall be "refened
to as the "Certificilte of Nrrn-
cdmpletion".
41. Sectional Completion
Where different completion dates for different sections or parts of the Works arr:
stated znd sectionar
,rd,._1.!!:9,in Appendix or elsewhere in thJ c";ir;;i ooJu*"ntt and difterenr ancr separare compretio'
]\e
Llquldated and Ascertaine.dDamages are
_provided for each section or part of the Worts, the
Plovisions of this Contract in regard to the Cirtificate of Practical Co-pr.tiJn, b.Lv'"i,a-b;riods
Extension
of rime. Liquidated and Ascertained Damagel fo-r delay, and th; t;fe;; Li"bility (but
not insuranc6 of the W-orksunder Clause-i6-,P.rfor-ance BonJ under
Clause 37'artd final pay-
ment on the Final Certificateunder Clause 48_hereof)shall, in rh;
;;y;;,;s provrsion
to the contrary elsewhere in the Contract Documents ^pjiy-iutotis "b;;;;r;fmttrandis as if each such
section or Dart was the subject of a separate and distinct'c6ntract between
the Govr:rnment and
ttre Contraitor.
1 t
42. Partial Occupation by Goverament
If at anv time or tirnes before the whole of the Works have reachedipractical completion,
GovernSnentwith tie consent of the Conlractor shall take possessionoI -""d the
;;";t-u.ny purt o,
Parts.of the same (any such Part being hereinafterin this bondition .ririi.a io-ii'..tnr relevant
part"), theu notwitilstanding anything &pressed or implied .iii*tt.r"
- tlis-Cootiu"t,
Ccrtifiaro (a) within seven (7) days from the date on which the Government
of Parrial shall have taken possession
OccupaLioa. of the reievant part the S.o. shall issue a Certificate of Partial oc.upaii,in
-ti; stating
the estimated vaiue of the said relevanr.part, and for ail th; p;;;;.r-;f
Condition
(but for no otler) the vaiue so stated shAu be deemed to be ihe'totui
uuru"--or t-be said
retevant DarL
Dcfectj (6) for the.purposcs of Clauses 39 and 45 hereof, the relevant part shall
Usbility. be deemed to have
reached.practi.caico.mpletion and the Defecs Liability. periba itn r.tpect J ihe relevant
Part snall De deemed to have commencedon tle date on which the Government shall have
taken possessionand occupied thereof.
Ccrtifieato (c) at the end of the Defects T,iabiliry Period of the relevant part and if in the-in
of making opinion of the
good dcfccls. S.O. any defect' imperfection, shrinkage or any othcr flult whatioiuer ?e relevant
p.art which he may have require{ to^bi made good under C]ause qS
6) una-tat i,.t*i,
shail have been made good-by tle Contractot,-th" S.O. shall lssue a'certifr"ut. to tt"r
enecL
Insuranco ol (d) notwithstanding. the partial occupation by the Government of the
t-bo Workr. relevant narf rhe
Contractor shall insure and keep-insured ihe works in ii,. ;;";;-"; ;iip.i"t.i.i'""j.i
Clause 36 and the Contractor shall give notice to the insurer of such partia[ occupatlon.
Rcduction ol (e) tl9 Liquidated and Ascertained Damages specified under Clause 40 for any periocl
Liquidatcd of
rud delay after such certification of the practicai completion of the r.tevani-pail'under sub-
Ascertained
Duaget. clause (a) hereof, shall be reduced in- the proporridn which the trrtal value'of the relevant
part bear to the Contract Sum.
Pcrfomuco (t it is expressly
Bond not ?greed that nothing containedin the precedingparagraphsshall entitle the
!-ffectcd. Contractor to the release of the Ferformance Bond 6r uny p-uit ttr&edr deposited by him
under Clause 37 hereof, the intention being that the said'PLrformancego;ra or any part
thereofshall be releasedor refunded-only u"ponthe completior ot-rniti"iiooa-urr clefects,
shrinkages or other faulti which -"y d-u1i1gtir."6.f""tr l-i"uiiiiy
fl-q:{.:::ts,
renoo ano upon the giving of the Certificateof Complliion "fp.u. of Malking Good Defecrsfor
'
the whole of-the Works u-nderClause 45 hereof..
l8
(ft) by reasonof any action due to Iocal
any of the tradesemployed.uponthe .combinationof workmen,strike, or lockout aftecting
w;;k;,;;"ia!0,r,. same are nor due to any
unreasonable act, negiectbr defiuit of the coniru'.tot'oi or*/;'t-";;r;or,
or otherwise,or nominrred
(rJby delayon the.part of ar!i515, tradesmenor othersengagedby the Govemmentin executing
work not forming part of this Contract, or
(t) by.t]19Contractor'sina.bilityfor reasonbeyond
his control and which he could noTreason-
ably have forseenat the dite of closing6t t.no.r-oi"iti,
and/or materjarsas are essenrialto tt."pioplr-;;rfi;'""r cont*"i-to-r.."r, such goods
of ths works, or
(k) by delay qtr thg part of
.NominatedSub-contractors
works, and such deiay shal
and/or Nominated Suppliersof their
be causedby th; s;;;;;;;';d.Aig*";1#t#j'* ,t"t"a
above in sub-clauses-(a)-ro 0) inciusive-ip-"ij.a tfr^t-ti. rurr" arE
-ureaih
negiigence,defauit oi not du.eto ",any act,
-Sru--.ontr".tor
of contrict by the Nominated and/or
Nominated supplier and/or th" co;G;tJ;, ;; oi'trt" servantsv^
Nominared Sub-contractoror Nomi;Ga-ilppit;', fi rh; c;J;;,;i; or eE;wr
asents of such
then the S.o. shall so soon as he is able to estimatethe
timeaforesaid length of the deray beyond the date or
makein writinsu riiii.uron"bF;;;l;;-;FH; illi ,1" works,
providedalwavsthat the Contiactorshaliuse consrantly.hir ",lriir.tlii'"ii
shail do ail that mav u.iiendeavourf to preventdelay and
.reasonaurlti ilquta to trr" iitirtuctilo of the s.o. to-proceedwith ttre
works. The cerrificatl issuedty ii,. s.o-.=*aer rhis c"iliri;;;hau
of Delay and Extension of Time',. be referredto ai tb.e..certifcate
19
(e) When in the opinion of
te S.O. the Coukactor has made goocl the defects, imperfections,
Ccni6qre
of Complc
rion of shrirkages or ary other fault whatsoever which he is reqriired t" *A;-;;"d under sub-
Ma-k.iag
Good
clauses (a) of (b), 9r both, the S.O. shalt issue a certificate to that effeEt, and the date
Def ets. named in such certificate shall be the date on which the Contracror tr"rio*pL1.o *akfu
good-such -de-fects,imperfections, shrin-kagesor any other. fault whasoeiei.
The said
Certi-ficate shall be referred to as the "CeruEcate of iompletion of Makrn! Cooa O.tr.t ".
20
(d) Providedalwaysthat no paynent due to the
^thl Contractorunder rhe Finai Certificateshall D,ecrantio
be made unlesi and until contractor shalr have s;-ti;ft"J the s.b. il;r;;ns of either Ei'"1T""-"o,
(i) a StatutoryDeclarationmade by or on behaif of the
contractor. or
(ii) a certificatesignedby or on behalf of the Director
Generalof Labour,
to the effectthat the workmenwho-havebeenemployedby the Contractor
includineworkmenemployedly iru-.""t*i1"t;,;'hJ;;r on the work.s.
uominatedor olierwise (includ-
ing."lab6ur only"iubioni*rt"irirt""";;.;i;;;'"ii;ig'., au, 1o them ia comectionwith
such emplovment,and that all dues or conrributionr-inal rh. fi;l"yto.oT
the Emplovle's Sociii s."t rit a"t, tni oraio"o"",
other Iaws reievant t" tli .-iroy*iot F6i;F";;"pr-ovident euna'oioinance ana any
of *oii.nin, r""" been paid.
49. Eftect of S.O.,sCertifcates
No certificateof the S.O' under any provisionof this Contract
evidenceas to the sufficiency shall be considerecias conclusive EFcc! or
-"J.""y i,ork, materialsor goods to which it reiates,#;;ff; **il,",
reiievethe Contractor ti"uiti'ty io-J*rna-"od good ail defects,imperfections,
{1om,n11 shrink-
ages'or any other faults whatsoever.asprovidedry 4ake tnis Cioiract ln uot'."r;-;tcertincate of
the.s'o' shall be final-andbindingin airy a;spute'uetwe;-ti;Government
if the dispute is brought wnetnJ 6.fd; and the Contractor
arbitrator or in the courts.
50. Deduction from Money Due to Contractor
the S.o. on its behalf shall be entitled to deduct any money owing from Dcduction
,*I1.1-G.-1u^:1T:nlot
IDe uontractor to the Governmentunder this Contractfrom any sum which'miy
b6comeZu"-* lloT."oo"
is pa-vableto the Contractorunder this Contractor any other contractsto
and the Contractorare partiesthereto.The s.o. in isJuingany-certificate which the Government )9--^
-,.-
coatnctor'
under cru"tJ+?,"in"ii
have.regard !9 any zuch sum so charg-eaul; provided always that this
provision shall A"i"r;-ilJ"cl?ru.tor,
nof aftect any other ref;redyto which the Governmentmay be entitled for tbe
recovery gf gusfugrmg.
51. Iletermingtion of Conhactor's Emptoyment
(a)
fithou! prejudiceto any other rights or remedieswhich the Governmentmav Dossess.Dcraurt or
rt me uontractor shall malie default in any one or more of tbe followiug resfeits, gr"i contnctor'
is to say:
(i) if he without reasonablecausesuspendsthe carrying out of ttre whole or any part
of the Works beforecompletion,or
(ii) if he fails to proceedregurarryaad dirigently with the works,
or
(iii) if he fails to executethe Works in aciordance with this Contract or persistently
neglect to carry out his obligations under this Contracr, or
(iv) if he refusesor persistentlyneglectsto comply with a written notice from the S.o.
to removeand replaceany defectivework o1 improper materialsor
igoods,or
(v) if he fails to comply with the provisionsof clause 2l (a) and.(D) hereof;
t}en the S.O'may-giveto him a noticeby.registered post or by recordeddeliveryspecifying
l!: lejaulJ'_andif the contractor snau 6itne"i-.;;ri"";-;";h default for fourteeL(14) days
of such notice or shall at_any time thereafter repeat suih defauJtjwLeui,r
1t_t^:_f-T::iPt repeated or not), then the Governmentmay thereirpon by a notice sent by
lt:ytutl,y
r-eglstered Post or by recordeddelivery determinethe eniploymeni of tde Contractor undei
this Contracr
(b) If the Contractor:
Belruptsy os
(i) commits an act of bankruptcy, or isolv@cy,
2L
(ii) the Goversment may carry out and complete the Works departmenta-lllyor employ
and pay a contracto; or oiher persons to carry out and complete.the Works and he
or tliey may enrer upon the .Works and use all tem.porary.buildings, plaot, tools,
equipment,goods and materialsintended for, deiiveredto and placed-on or adjacent
to tlie Worlis, and may purchase all materials and goods necessaryfor the carrying
out and completion of tbe Works.
(iii) the Contractor shall if so required by the S.O. assign to the Government without
payment the benefit of any agreement for the supply of nraterials or goods and/or
ioi the execution of any work for the purposes of this Clontract. In any case the
Governmentshall have power, but shall nof be obliged, to pay any supplier or sub-
contractor, whether nominated or privately engaged bv the Confactor, for eny
materials or goods delivered or any work executed for the purposes of this Contract
(whether bef6re or after the date- of determinarron) for which thc Cont;acicr hes
faiied to make paymenl The Government's rights under this paragraph are in addi'
tion to its rights to pay Nominated Sub-contractors and,ior Nominated SuppiieT
under Ciause-28 her.6f.- The Contractor shall allow or pa.y to the Government all
such payments made under this paragraph.
' ' the Contractor shall as and when required remove from the Site any. terrporary
(iv)
buildings, piant, tools, equipment, mateiials and goods belonging to or irired. by hi'l
withinJucir reasonabletime as the S.O. may specify in a rvritten notice to him and
ia defauit the Government may (but without being responsiblefor any_Ioss-or damagc)
rernove and seil any such proleity betonging to ihe Contrac;tor,hoiding tle proce:ds
less all cost incurred to the credit of the Contractor.
(v) the Contractor shall allow or pay to the Government in the manner herein after
"
appearing the amount of any lois'and/or damage caused to the Government by the
dlienninitiou of his employment under this Contract. lf o:: as soon as the arrangg'
ments for the complerion 6t tfre Works made by the Gorrernment enable the S.O.
to make a reasonably accurate assessmentof the ultimate cost to the Govemment
of completing the Work.s following the determination of the Contractor's employment
and the engigement of other contractors or persons, the S.t3. may issue a certificate
stating the'ariount of such loss and/or damlge caused to the Government by such
deterriination of the Contractor's employment. Such certificate shall state separately
the sums previousiy paid to the Contractor by the Government, the sums paid or
due or to become iul to other contractors or persons engaged by the Government
. to complete the Works, any sums paid to sub-contractorsor suppliers under para-
graph (iii) hereof and any costs br expenditure incurred or to be incurred by
ihe-Gouernmentin completing the Works,-(all such costs herein referred as "C-omp.ie'
tion Cost"). The certifiiate sf,all aiso state the Final Contract Sum which, allowing
for any variations or other matters which wouid have resulted in_an adjustrnent of
itr- originat Contract Sum and for any other sums, which the Government might
be entiiled under the terms of the Contract to deduct therefrom, would have b:en
payable under the Contract had the Contractor's employnrent not bee.n determined
ioa if tt Final Contract Sum is less than tire Completion Cost, the difference shall
be a debt " pavable bv the Contractor to the Goveramenl This certificate shall be
binding and ionclusite on the Contractor as to the aslount of such loss and/or
da-age sPecified therein.
departmentally,
' ' in the event of the compi-etion of the Works being urrdertaken.
(vi)
aliowance shall be made, when ascertaiuing the amount to be cerlified as costs or
incurrea by the dovernment, for coJt of supervision,interest and depreciatioq
piant and all other usual overhead charges arid profit as would be incurred if
"ip."ri
on -Works
the were compieted by a contractor or other persons.
*tiog the. progress or after completion of the Works, or after the determination of the
to S.O. for
a decisioc
Lonuactor's employment, or breach of this Contract, as to:
(i) the construction of this Contract, or
(ii) any matter or thing of whatsoever nature arising under this Contract,
or
(iii) the withho,lding by the S.o. of any certificate to which the
Contractor may claim
to be entitled,
then such dispute or difterence shall be referred to the S.O. for a decision.
to by the Contractor who shail. procced with the Works with alt due diiiience un arl
9{e91 eomplctioa
whefher or not notice of dissatisfaction ij given by him. of Works.
(c) If the S.O. fails to_give a decision for a perioci of forty-five (45) days after being requested RcfcEoce to
lrbitnrioq.
!o^do po Qy tne Contractor or if the Cbnractor be hissatisfied with any deciiion'of the
S-O" then in anysu_ch_case the Contractor may within forty-five (+5162tt'uit.i tt. expira-
ti.on of forty-five. (a5) d.aysafter he had made 6is request to ttr. S.O-, o.'fotry-nu" (a5) 'days
after receiving the decision of the S.O., as the case may be, requiie that zuch dispute'6r
difterence be referred to arbitration and final decision 6f a perion to be agreed between
parties to act as the Arbitrator. The arbitration shall be heli at the Resioial Centre for
arbitration at Kuala Lrrmpur, using the facilities and assistanceavailable"at tle cetrtre-
(d) Such reference, except on any difference or dispute under Clause 52 herr:of shall not be Refcrence
commenced until after the completion or alleged-completion of the Works or determination to arbiara-
tion shall
or alleg-eddeterminatiou of the Contractor's Employnient under this Contract, or abandon- not be
commenccd
ment of the Worls, unless with the writteu consLnt-of the Government and the Contractor. unti.l aftcr
complction
of Works.
(e) The Arbitrator shall have power to review and revise any certificate. opinion. decision, Poscr of thc
requisition_or-rloticeand to determine all matters in dispuie which shall'be submitted to Arbitntor.
him. and of which notice shall have been given in accordince with sub-clauLse (c) aforesaid,
in the same manner as if no such cerdfidate, opinion, decision, requisirio:o oi notice Lad
been given.
(/) Upon every or any such referencethe costs of such incidental to the reference and award Discrctioo
shall be in the discretion of the Arbitrator who may determine the arnount thereof, or of Arbitn-
tor in
direct the amount to be taxed as between solicitor ind client or as bet,weenpartv and rcspect of
costs ald
parry, aad shall direct by whom and to whom and in what manner the same'be borne award.
and paid.
(g) The award of the Arbitrator shall be fi.nal and binding on the parties. Award of
AlbitBtor
is fiqal-
(ft) I-n tle event of the death of the Arbitrator or his unwillingness or inability to act. then Appornter ol
ArbirBtor.
the Government and the Contractor upon agreement shall appoint another person to act
as tle Arbitrator, and in the event the Government and thi-Contractor faiiing to egree
9n Se appointrnent of an Arbitrator, an Arbitrator shall be appointed by the perion named
in the Appendix to these Conditions.
(l) In this Condition, "reference" shall be deemed to be reference to arbitration within the A,bitotiou
meaning of the Arbitration Act 1952 @eviseC-1972). Act re52'
23
57. Witholding of Tax on ContractPayment 'Witholding
of Tax
on Contract Pa).rnent
All pa1'rnentscertified to non-residentcontractorsshall be subject to
witholding of tax under Section107,{ 109 and l09B of the Malaysian
Income Tax Act, 1967 (amendedwith effect from lst January,1983)and
any sectionsor variationsof'the said sectionswhich the Govemmentmay
introducein the furfure as follows :-
b) Five per cent of the serviceportion of the Contractto cover the tax
obligation of the employeesof the non-residentcontractorsshall be
deducted.
KPKPG/1764nvIC 1 /'l
60. ConstructionProsramme
'Prior
a) to commencementof the works the contractor shail submit to Construction
the SuperintendingOffrcerfor his approvala programmeshowingthe Programme
order of procedurein which he proposesto carryrout the Works. The
contractor shall also provide details of the arrangementsand/or
methods which he proposesto adopt for the Works, or any part
thereof.
KPK,?G/l164N1C 25
APPENDIX TO THE CONDITIONS OF CONTRACT
Clause
3 (a) (i) Officer(s) empowered to take action on behalf of the
Government il respect o f : Group Chief Executive 0ffice
Clauses40. 43 a:rd 51 Bertam P.r.epe
r !.i.".
.q..99"Bhd
Clauses 52 and 54 Group Chief Executive Office
3 (a) (ii) Officer empoweredto approvevariationsaccordinsto Bertam Properties Sdn Bhd
the limits as ser out in XttxBnftT)fienxffidf,dof)O{ilfo0K
rx>olednd,the Financial procedures of the Fnployer
PolicvNo......-......
- FuIl lr2ntract Period Plus
J+rl9o 9I rn{$r4nce..
rz rvlonrnsuerects'TiaUilitv
Pcriod..F.L ue. 3.. L/.2..Months
35 SOCSOSchemeregistrationlumber
L0"/.of Contract Sum
36 Amount to be addedto full value of Conbact Sum as
the insured sum i 9r ..8:.9.{...:.:*.eH
RM es
I ..Fe
PoficvNo.............
-fu{l pqntract Period Plus
fenoo or msurance...........
12 Months Defects tiabilitv
Perid ..P.lr-r
s. 3..[ /.2.,Months
36 (b) Amoult of excessclause RM ..-s.1;.q.!:.9.
.+p. .it..P.s.Li.v
26
APPENDD( TO TI{E CONDITIONS OF CONTRACT-(cont'd)
CIause
37 PerformanceBond
GuarantorBank/InsuranceCompany
GuaranteeNo.
Idcntification of
Sectionr or parts
Not AppLicable