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CONTRACT ADMIN
introduction

LAM PT 3 preparation
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Ascertain the time of occurrence

Construction phase
DLP phase
Post DLP
Assess Damage
Material/Work
Human life
Investigate source of failure
Construction Quality
Sub standard material
Erection method
Design flaws
Check if insurance still within coverage
CAR
PI

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Q & A ???

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As the Contract
administrator what
should you do when
the contractor
submitted his
insurance policy ?

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THINGS TO CHECK AND VERIFY PRIOR TO

COMMENCEMENT :
TYPE OF INSURANCE ( Basic and additional )
Contractors All Risk Insurance
Erection All Risk Insurance
Boiler & Pressure Vessel Insurance
Machinery Breakdown- Loss of Profit
Electronic Equipment Insurance
SUM INSURED
COVERAGE Fire, flood, etc.
PERIOD OF INSURED

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Contractor's All Risk Insurance

Contractors All Risk Insurance provides comprehensive coverage to all works to be
executed in accordance with the contractors contract, temporary works, material,
construction plant and equipment brought into the site and liabilities arising out of
the performance of the contract. The policy covers against accidental and
unforeseen physical loss or damage to the property insured occurring during the
period of insurance.
material damage section of the policy, any sudden and unforeseen physical loss or
damage caused by fire, lightning, explosion, flood, inundation, windstorm of any
kind, earthquake, theft, burglary, bad workmanship, negligence, lack of skill, lack of
experience, malicious acts or human error, or any other sudden and unforeseen
event such as loss or damage due to collapse, foreign objects and on-site transport
of items to be constructed are covered.
The liability section of the policy provides indemnity in respect of third party liability
which the insured shall become legally liable to pay as damages consequent upon :
Accidental bodily injury to or illness of third parties; or
Accidental loss of or damage to property belonging to third parties
Occurring in direct connection with the construction of the contract works and
happening at or in the immediate vicinity of the construction site.

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The contractor
submitted a claim
for material on site
for 4 crates of
escalator
components that
have been delivered
on site. What will be
your response be ?
And why? Cite the
relevant CoC.

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MATERIAL ON SITE CLAIM

1. Get proof of ownership./purchase order/ invoice /retain
of title.
2. Verify quantity/quality
3. Verify conformance to specification.
4. Verify storage area : Security & Safety.
Clause 14.4
Warranty of title of goods and materials..

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What is meant by
CoC Cl 15.1(b)
other requirements

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expressly stated in the

Contract Documents as a
prerequisite for the
issuance of the
Certificate of Practical
Completion have been
complied with.

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"other requirements expressly stated in the Contract

Documents as a pre-requisite for the issuance ofthe
Certificate of Practical Completion... ".

1.testing and commissioning requirement;

2.training of staff to use equipment;
3.requirement for statutory certificates and/or
manufacturers' warranties for equipment,
materials and goods incorporated into the
Works;
4.any As-built Drawings, operation and
maintenance manuals which may be required
at CPC
5.Preliminaries items.

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The client for the project had

requested for your advise
with regards to how can he
cover his losses ( the roof
has collapsed. What will be
your response ?
.

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Ascertain the time of occurrence

Construction phase
DLP phase
Post DLP
Assess Damage
Material/Work
Human life
Investigate source of failure
Construction Quality
Sub standard material
Erection method
Design flaws
Check if insurance still within coverage
CAR
PI

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Company
LOGO

Ascertain the time of occurrence

Construction phase
DLP phase
Post DLP
Assess Damage
Material/Work
Human life
Investigate source of failure
Construction Quality
Sub standard material
Erection method
Design flaws
Check if insurance still within coverage
CAR
PI

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The contractor had

expressed that he doesnt
want to purchase CAR
policy. Can he do so? What
other policies can he
purchase instead to fulfill
the contractual requirement
under PAM 2006?
.

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The site supervisor informed you

that there is an accident occurred
at the site about 30 mins ago.
What will be your action as the
Contract Administrator?
.

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OCCUPATIONAL SAFETY AND HEALTH (NOTIFICATION OF ACCIDENT, DANGEROUS

OCCURRENCE, OCCUPATIONAL POISONING AND OCCUPATIONAL DISEASE)
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REGULATIONS 2004 PART II - NOTIFICATION AND REPORTING OF ACCIDENT, DANGEROUS
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OCCURRENCE, OCCUPATIONAL POISONING AND OCCUPATIONAL DISEASE
Regulation 5. Notification and reporting of accident and dangerous occurrence.
(1) Whenever any accident arising out of or in connection with work which caused any person either

(a)death; or
(b)serious bodily injury, as specified in First Schedule, which prevents the person from following his
normal occupation for more than four calendar days, or where a dangerous occurrence, as specified
in Second Schedule, takes place in any place of work, the employer shall
(aa) forthwith notify the nearest Department of Occupational Safety and Health office by the
quickest means available; and
(bb) within 7 days send a report thereof in an approved form.
(2) Whenever any accident arising out of or in connection with work which causes bodily injury to
any person which prevents the person from following his normal occupation for more than four
calendar days, the employer shall, within 7 days, send a report thereof in an approved form to the
Department of Occupational Safety and Health office.
(3) Where an employee, as a result of an accident arising out of or in connection with work, has
suffered an injury or condition reportable under subregulation (1) which causes death within one
year of the date of that accident, the employer shall inform the Director General in writing of the
death as soon as it comes to his knowledge, whether or not the accident has been reported under
subregulation (1).

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The site supervisor informed you

that there is an accident occurred
at the site about 30 mins ago.
What will be your action as the
Contract Administrator?
.

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The client has instructed you to

pay material off site to the
contractors who is his cousin.
What is your response and
advise to him?
.

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AS PER PAM 2006 (Clause 3 )

3.1
3.1
3.1
3.1
3.1
3.1

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(a) the Letter of Award;

(b) the Articles of Agreement;
(c) the Conditions of the Contract;
(d) the Contract Drawings;
(e) the Contract Bills; and
(f) other documents incorporated in the
Contract Documents, unless expressly
stated to be excluded in any of the
Contract Document.

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AS PER PAM 2006 (Clause 3 )

3.1
3.1
3.1
3.1
3.1
3.1

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(a) the Letter of Award;

(b) the Articles of Agreement;
(c) the Conditions of the Contract;
(d) the Contract Drawings;
(e) the Contract Bills; and
(f) other documents incorporated in the
Contract Documents, unless expressly
stated to be excluded in any of the
Contract Document.

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AS PER CIDB
CONTRACT DOCUMENTS
The several documents forming the Contract are to be taken as
mutualy
explanatory of one another but in the event of any conflict or
inconsistency
between the documents Forming the Contract , the priority shall be
as follows:
1.
2.
3.
4.
5.
6.
7.

The Articles of Agreement;

The Letter of Award;
The Conditions;
The Addenda listed in Article 3 of the Articles of Agreement;
The Drawings;
The Specifications;
The Bills of Quantities or Schedule of Works (whichever is
applicable);
8. Other documents listed in Article 3 of the Articles of Agreement.

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BORANG JKR 203

Company
LOGO PERKARA-PERKARA PERJANJIAN
Dokumen-dokumen berikut hendaklah disifatkan menjadi
dan dibaca dan ditafsirkan sebagai sebahagian daripada Kontrak ini, iaitu:
(a)
Perkara-Perkara Perjanjian;
(b)
Borang Tender;
(c)
Surat Setujuterima Tender;
(d)
Syarat-Syarat Kontrak dan Lampiran Tambahan kepada;
(e)
Peruntukan-Peruntukan Khas kepada Syarat-Syarat Kontrak
untuk:
(i)

(ii)

(iii)

(f)
(g)
(h)
(i)

Pelan-Pelan Kontrak;
Senarai Kuantiti;
Spesifikasi;
Arahan Perbendaharaan sebagaimana dinyatakan dalam
Lampiran
kepada Syarat-Syarat Kontrak

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Company
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COMMON STANDARD CONTRACT FORM - Malaysia

PAM 1998 (Pertubuhan Arkitek Malaysia)
(Building Works) (Private client)
JKR 203/203A (Jabatan Kerja Raya)
(Generic Building, Road, Civil etc) (Government
clients/agencies)
CIDB 2000 (Lembaga Pembangunan Industri Pembinaan Malaysia)
(Building) (Private client/Government)

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INTERNATIONAL
JCT 1998(Joint Contracts Tribunal)
(untuk kerja-kerja bangunan) (bagi majikan swasta dan pihak berkuasa
tempatan di UK)
ICE 1979 (Pindaan 1985)(Institution of Civil Engineers)
(untuk kerja-kerja kejuruteraan sivil) (kegunaan persendirian (private)
atau lain-lain majikan)
FIDIC 1973 (Federation Internationale des Ingenieurs Conseils)
(untuk kerja-kerja kejuruteraan sivil menggunakan syarat-syarat
Antarabangsa))

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Standard Contract Form?

Advantage
1. It becomes more economical as there is no need to draft new
terms of contract every time a contract is let out.
2. It provides more certainty when tendering.
3. Familiarity makes it easier and quicker to be priced.
4. It creates the possibility of a more balanced allocation of risk
between the contracting parties.
5. There is a higher chance of avoiding unwarranted disputes in
court or arbitration.
Disadvantage / Keburukan/Kelemahan
1.
2.
3.
4.

Ambil (terima)/tinggalkan! Take it or leave it!

Kontrak khusus tak terpakai only generic
Melemahkan inovasi
Unfair allocation of risk??

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CHALLENGE in CONSTRUCTION PROJECT

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So what is CONTRACT ..???

Americans are spending $380 billion yearly

on gambling and that doesn't include
construction projects.

Architects and contractors are a lot alike in

some situations. Like when a building is
collapsing on top of them.

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So what is CONTRACT ..???

I thought architects were the tools

An architect's most useful tools are an eraser at the

drafting board, and a wrecking bar at the site.
Frank Lloyd Wright
The problem is, you need to follow up the demolition with
construction. Dont forget that last part, OK?

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So what is CONTRACT ..???

How to get rid or your contractor

The quickest way to get rid of a
contractor is to hire him.
That sure worked in our case.
Bonus!
It also works for your architect.
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CHALLENGE with CONSTRUCTION PROJECT

Problems
Shoddy

workmanship.
Building collapses.
Poor standards of materials.
Site safety and maintenance.
Site supervision.
Complaints of poor maintenance.

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CAUSES :
Negligence of consultants.
Unskilled workmen.
Lack of training / trade schools.
Too many jobs or task.
Consultants overloaded with jobs.
"Tidak apa" attitude.

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CAUSES :
Negligence of consultants.
Unskilled workmen.
Lack of training / trade schools.
Too many jobs or task.
Consultants overloaded with jobs.
"Tidak apa" attitude.

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Design Stage
Fresh / inexperienced graduates doing the design

work.
Lack of standard guidelines / Malaysian Standards to
design to.
Lack of soil investigations before carrying out the designs.
Lack of qualified people in authority to check and approve
the drawings.
Lack of continuing education.
Lack of R&D slow improvement.
Relevant Authorities do not bear responsibility in approving
the plans.

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Construction Stage
Lack of enforcement / policing of building bye-laws.
Lack of supervision / Clerks of Works not required to be
properly trained / qualified.
Contractors not bound by the law unethical
Developer and Contractor are the same person.
Site maintenance / site safety.

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Post Construction Stage

No periodical checks on the completed buildings
by consultants / developers enforced by law.

Lack for guidelines / Act for maintenance of

buildings by Developers / maintenance manuals.

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So what is CONTRACT ..???

A bad workman blames his fools

EDIT: tools stupid keyboard.
(Actually, this is remarkably
accurate for the contractor I
used. He was a bad workman, he
hired fools, and they were tools.)
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CHALLENGE in CONTRACT ADMIN

INDUSTRY IS HIGHLY FRAGMENTED

LACK OF TRUST BY THE CLIENTS
BIGGER FIELD OF KNOWLEDGE
HIGH EXPECTATION AND RELIANCE BY THE CLIENT

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Changes in Design Brief

by client

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Over design

Challenge in
CONTRACT

Poor management
Misinterpret the brief
Ignorance to estimation

Redesign

Outdated information

Lack coordination

Discoordinated

Lag by team member

Lack coordination

No Continuity

Mis informed

Lack collaboration

No Continuity

Changes in Personnel

Organisation Policy

No Continuity

Late Decision

Irresponsible
Ignorance to reqment.

Late Authority App

Left out in Planning

schedule

Overshoot Datelines

UNrealistic datelines
Poor Scheduling

Mistakes

Ignorance / Careless
Inadequate study & Info

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Redesign

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So what is CONTRACT ..???

A real architect is someone who walks

in after everyone has walked out.

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So what is CONTRACT ..???

The thing about being an architect is that if you

can make one developer happy, if you can
make one project great, if you can make one
project great if you can get one award than you
will still be stuck with twenty failures.

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So what is CONTRACT ..???

When my architect checks out of a

hotel, three weeks later the mirror is
still warm.

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Initial Planning-INCEPTION

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Purpose and importance

of project planning
Government Projects
Procedures
The Process:

oGovernment Projects Procedures

From Client to JKR

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So what is CONTRACT ..???

The government is doing an experiment, so they take an architect and put

him in a room with 3 small glass balls on a table. They leave him, come back
an hour later and the balls are stacked in a pyramid. They ask him why he did
it and he says, Because I knew it could be done.

Next they take an engineer, put him in the room with the balls. They leave
him, come back an hour later and the balls are stacked straight up one on top
of each other. They ask why he did it and he says, Because I knew it could
be done.

Then they take a contractor, same thing. Come back an hour later, there's one
ball on the table. They ask him what happened and he goes Umm ... well ... I
broke one and the other one is in my lunchbox, I'm taking it home.

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QUESTION & ANSWER ( maybe )

QUESTION..
ANYBODY???

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QUESTION & ANSWER ( maybe )

Tenkiuu for ur time

& ears..

PLEASE READ
YOUR PAM 2006
FOR OUR NEXT
SESSION
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