The Malaysian Standard Form BUILDING CONTRACT

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1 The Malaysian Standard Form BUILDING CONTRACT (The PAM 1998 Form) cjecono O0///01 Sundra Rajoo Malayan Law Journal

2 Table of contents Dedications Foreword 1 & 2 Preface and acknowledgments Table of flowcharts Table of cases ii v xi xix xxi DIVISION 1 Introduction 1 The making of the Malaysian Standard Form of Building Contract 7 The philosophy of the Malaysian Standard Form of Building Contract 14 The general law relating to the Malaysian Standard Form of Building Contract 18 DIVISION 2 The Malaysian Standard Form of Building Contract (PAM 1998 Form 'With Quantities' Edition) 29 ARTICLES OF AGREEMENT 32 Article 1 Contractor's obligations 36 Article 2 Contract sum 37 Article 3 Identity of architect 38 Article 4 Identity of engineer and his functions stated 46 Article 5 Identity of quantity surveyor and his functions stated 47

3 xvi Table of contents Article 6 Identity of specialist consultant and his functions stated 50 Article 7 Definitions 51 Attestation/Signatories of the parties 53 CONDITIONS OF CONTRACT 58 Clause 1.0 Contractors obligations 60 Clause 2.0 Architects instructions 70 Clause 3.0 Contract documents 78 Clause 4.0 Statutory obligations, notices, fees and charges 86 Clause 5.0 Levels and setting out of the Works 91 Clause 6.0 Materials, goods and workmanship to conform to description, testing and inspection 94 Clause 7.0 Royalties and patent rights 100 Clause 8.0 Site agent 103 Clause 9.0 Access for architect to the Works 106 Clause 10.0 Site staff 109 Clause 11.0 Variations, provisional and prime cost sums 114 Clause 12.0 Contract bills 125 Clause 13.0 Contract sum 132 Clause 14.0 Materials and goods unfixed or off-site 135 Clause 15.0 Practical completion and defects liability 140 Clause 16.0 Partial possession by employer 148 Clause 17.0 Assignment or sub-letting 153 Clause 18.0 Injury to persons or property and employers indemnity 158 Clause 19.0 Insurance against injury to persons and property 163 Clause 20.0 Insurance of Works against fire, etc. 168

4 Table of contents xvii Clause 21.0 Date of commencement, dates of commencement given for sections, postponement and completion date 179 Clause 22.0 Damage for non-completion 190 Clause 23.0 Extension of time 201 Clause 24.0 Loss and/or expense caused by disturbance of regular progress of Works 232 Clause 25.0 Determination by employer 244 Clause 26.0 Determination by contractor 261 Clause 27.0 Nominated sub-contractors 271 Clause 28.0 Nominated Suppliers 287 Clause 29.0 Artists and tradesmen 290 Clause 30.0 Certificates and payment 293 Clause 31.0 Outbreak of hostilities 311 Clause 32.0 War damage 314 Clause 33.0 Antiquities 317 Clause 34.0 Arbitration 320 Clause 35.0 Mediation 331 Appendix 333 The PAM 1998 Form 'Without Quantities' edition 335 DIVISION 3 Appendix PAM Arbitration Rules PAM Mediation Rules PAM 1998 Form 'Without Quantities' edition PAM 1998 Sub-Contract Form PAM/ISM 1969 Form Index 441

5 Table of flowcharts Flowchart 1 Flowchart 2 Flowchart 3 The PAM 1998 Form procurement route 17 Clause 1.1: Contractor's obligation to carry out and complete the work 68 Clause 1.2: Contractor's obligation if he finds any discrepancy or divergence between contract documents 69 Flowchart 4 Clause 2.0: Architect's instructions (AI) 77 Flowchart 5 Clause 3.0: Contract documents 85 Flowchart 6 Flowchart 7 Flowchart 8 Clause 4.0: Statutory obligations, notes, fees and charges 90 Clause 5.0: Levels and setting out of the Works 93 Clause 6.0: Materials, goods and workmanship to conform to description, testing and inspection 99 Flowchart 9 Clause 7.0: Royalties and patent rights 102 Flowchart 10 Clause 8.0: Site agent 105 Flowchart 11 Clause 9.0: Access for architect to the Works 108 Flowchart 12 Clause 10.0: Site staff 113 Flowchart 13 Clause 11.0: Variations, provisional and prime cost sums 124 Flowchart 14 Clause 12.0: Contract bills 131 Flowchart 15 Clause 13.0: Contract sum 134 Flowchart 16 Clause 14.0: Materials and goods unfixed or off-site 139

6 xx Table of flowcharts Flowchart 17 Flowchart 18 Flowchart 19 Flowchart 20 Flowchart 21 Flowchart 22 Flowchart 23 Flowchart 24 Flowchart 25 Flowchart 26 Flowchart 27 Flowchart 28 Flowchart 29 Flowchart 30 Flowchart 31 Flowchart 32 Flowchart 33 Clause 15.0: Practical completion and defects liability 147 Clause 16.0: Partial possession by employer 152 Clause 17.0: Assignment or sub-letting 157 Clause 18.0: Injury to persons or property and employer's indemnity 162 Clause 19.0: Insurance against injury to persons and property 167 Clause 21.0: Date of commencement, dates of commencement given in sections, post-ponement and date for completion 189 Clause 22.0: Damages for non-completion 200 Clause 23.0: Extension of time (EOT) contractor's duties 230 Clause 23.0: Extension of time (EOT) architect's duties 231 Clause 24.0: Loss and/or expense contractor's duties 242 Clause 24.0: Loss and/or expense architect's duties 243 Clause 25.0: Determination by employer 260 Clause 26.0: Determination by contractor 270 Clause 29.0: Artists and tradesmen 292 Clause 31.0: Outbreak of hostilities 313 Clause 33.0: Antiquities 319 Clause 34.0: Arbitration general outline of sequence 330

Legal Awareness In The Construction Industry

Legal Awareness In The Construction Industry LET S TALK ABOUT PAM 2006 AGAIN 12 March 2014 Sr Peter Moh Mee Ying B.Sc. (Hon) HBP, MBA, FRISM, ICECA, MRICS, Registered QS INTRODUCTION This paper is prepared