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iron4 TEM. CE 1/89 LE.M. CONDITIONS OF CONTRACT FOR i WORKS MAINLY OF CIVIL ENGINEERING CONSTRUCTION FIRST EDITION, MAY 1989 (Second Reprint Sept 1994) ‘These documents have been prepared by The Institution of Engineers, Malaysia and are recommended for general use by the engineering construction industry in Malaysia. They include models of FORM OF TENDER, ARTICLES OF AGREEMENT, FORM OF PERFORMANCE BOND and some notes on SPECIAL PROVISIONS TO CONDITIONS OF SUB-CONTRACT and CONDITIONS OF TENDERING. Prints may be obtained from ‘The Hon. Secretary, ‘The Institution of Engineers, Malaysia, Bangunan ingenieur, 60/62, Jalan 52/4, P.O. Box 223, 46720 Petaling Jaya. HEM, CE 1/A9 LE.M. CONDITIONS OF CONTRACT FOR WORKS MAINLY OF CIVIL ENGINEERING CONSTRUCTION FIRST EDITION, MAY 1989 (Second Reprint Sept 1994) ‘These documents have been prepared by The Institution of Engineers, Malaysia and are recommended for general use by the engineering construction industry in Malaysia. They include models of FORM OF TENDER, ARTICLES OF AGREEMENT, FORM OF PERFORMANCE BOND and some notes on SPECIAL PROVISIONS TO CONDITIONS OF SUB-CONTRACT and CONDITIONS OF TENDERING. Prints may be obtained from: The Hon. Secretary, The Institution of Engineers, Malaysia, Bangunan Ingenieur, 60/62, Jalan 52/4, P.O. Box 223, 46720 Petaling Jaya. CLAUSE 10 @ (e) © @ @) (b) © (a) (e) () @ @ (b) (a) (b) ©) (a) e @ @ () @ (b) I.E. M. CONDITIONS OF CONTRACT TABLE OF CONTENTS DEFINITIONS AND INTERPRETATION Definitions and Interpretation. “Approved"” and “Directed” Singular and Plural Terms Marginal Headings or Notes ENGINEER AND ENGINEER'S REPRESENTATIVE Duties of Engineer. Duties of Engineer's Representative Delegation of Engineer's Power SCOPE OF CONTRACT Scope of Contract ENGINEER'S INSTRUCTIONS Work to be to Satisfaction of Engineer Engineer's Instructions Compliance with Engineer's Instructions Engineer's Instructions to be in writing Claim for Compliance with Engineer's Instructions NoTices Service of Notices on Contractor Service of Notices on Employer CONTRACT DOCUMENTS Custody of Contract Documents Copies of Contract Documents, Copies of Working Drawings Documents on Site Rerurn of Documents Restriction in Use Contract Documents mutually explanatory Diserepancy QUALITY OF MATERIALS AND WORKMANSHIP Quality of Materials, Goods, and Warksmanship Samples, Testing of Materials and Works coverad Up Unfixed Materials and Goods o PAGE CLAUSE n 12. 18. 14, 18 16. 7, 18. 19. 20, au 22. 23. 24. fa) (b) ©) (a ce) a (b) ©) (a) ) @) (o) () (a) @ COMPLIANCE WITH LAW, AND ROYALTIES Compliance With Written Law, Regulations and Bylaws Charges to be borne by the Employer Indemnity to the Employer (Change in Written Law, ete Fossils etc Patent Rights and Royalties SETTING OUT AND SITE INSPECTION Setting out Inspection of Site WORKMEN'S REQUIREMENTS Malaysian Citizens Particulars of Labour ‘Compliance of Subcontractors Compliance with Employment Ordinance 1955 etc. Days and Hours of Working SUPERINTENDENCE AND PAYMENT OF WAGES Contractor's Superintendence Wages Books and Time Sheets Default in Payment of Wages REMOVAL OF WORKMEN Removal of Workmen ACCESS TO WORKS AND OTHER SITES ‘Access for Engineer to the Works etc. SCOPE AND VALUATION OF VARIATIONS ‘Variations ‘Orders for Variations to be in Writing Valuation of Variations Power of Engineer to fix Rates Reduction exceeding 20 per cent Daywork Claims «iy PAGE, aoe CLAUSE 25. 26. 27. 29. 30. 31 32. 33. @) (e) © fa) () © @ (b) (e) @) (b) (e) @ e) @ (e) © @ @ 0) © (a) () © @ cS} @ (b) ©) (a) PLANT, TEMPORARY WORKS AND MATERIALS Plant, etc, exclusive use for the Works Romoval of Plant, ete Employer not liable for Damage to Plant etc. QUANTITIES AND MEASUREMENT Quantities Works to be measured Method of Measurement, SUB-LETTING AND ASSIGNMENT Consent of the Engineer ‘Termination of the Contract Assignment of the Contract NOMINATED SUB-CONTRACTORS, ETC. Definition of Nominated Sub-contractors/Suppliers Provisions applying to Nominated Subcontractors Payments to Nominated Subcontractors Responsibilities for Nominated Subcontractors and/or Nominated Suppliers ‘Termination of Subcontract, PROVISIONAL AND PRIME COST SUMS Definition and Payment of ?.C. Sums Definition and Payment of Provisional Sums Conversion of Provisional Sum to P.C. Sum P.C, Sums for which the Contractor is permitted to tender OPPORTUNITIES FOR OTHER CONTRACTORS Artisans and Tradesmen INJURY AND DAMAGE INDEMNITY AND INSURANCE Injury to Person Damage to Property Omission to Supervise Taking of Insurance Cross Liability, Third Party and Subrogation Waiver. Production of Insurance Policies Default in Renewing Insurance ‘Subcontractor INSURANCE OF WORKS, ETC. Risks to be insured Production of Insurance of Works Policies. Default in Renewing Insurance Application of Insurance Monies (i) PAGE, 10 10 10 10 10 10 10 n n n 12 2 12 12 2 12 12 13 13 13 13 13 13 13 13 4 4 “4 CLAUSE 35.) &) e) @ © 36. (a) ) @ (a) 37. (a) ) © @ 38.) ©) 39. (a) 0) 40. 4. 42. @) © © @ « (fy @) 43, 44 45. @) @) © @ CS) WORKMEN'S COMPENSATION INSURANCE Indemnity to Employer Workmen's Compensation Insurance. Production of Insurance Polisies Default in Insuring Non.wa'ver of Employer's Rights to Indemnity EMPLOYEE'S SOCIAL SECURITY COVERAGE Contribution to SOCSO. Payment of SOCSO contributions Default in complying with the Act Non-waiver of Employer's Right to Indemnity PERFORMANCE BOND Performance Bond Validity of Performance Bond Payment by Employer Release of Performance Bond COMMENCEMENT AND COMPLETION Commencement of Works Possession of Site and Wayleaves ‘Time for Completion Certificate of Practical Completion Damages for Non.Completion Sectional Completion PARTIAL POSSESSION AND OCCUPATION Certificate of Partial Occupation Defects Liability ‘Making Good Defects of Relevant Part. Insurance of the Works Reduction of Liquidated and Ascertained Damages Performance Bond not affected Partial Release of Retention Fund DELAYS AND EXTENSION OF TIME Delay and Extension of Time Loss and Expense caused by Delays DEFECTS LIABILITY AND MAKING GOOD Defects Liability Period ‘Schedule of Defects Default of the Contractor ‘Additional Powers of the Engineer Certificate of Making Good Defects ow) PAGE 1s 1s 15 16 16 16 16 16 16 16 16 16 7 wv 7 7 Ww uv 18 18 18 18 18 18 18 18 19 20 20 20 clause 46. 47. 49, 50. sl. 52, 53, 54, 38, 56. 87 (a) @) ©) (a) (e) @ @) (>) () @) 0) © @ () © (a (b) ©) @ © 0 (9) (a) @ 0 Unfulfilled Obligations CERTIFICATES AND PAYMENT ‘Valuation of work done Issue of Interim Certificate ‘Sums to be certified in Interim Certificate Payment of Interim Certificate Retention Fund Release of Retention Fund Submission of Claim Documents Final Account Certificate ‘Sums to be certified in the Final Account Certificate Etfect of Engineer's Certificates. Deduction from Money due to Contractor. DEFAULT OF CONTRACTOR AND EMPLOYER Default of Contractor Bankruptcy or Insolvency Effects of Termination of Contractor's Employment. Default of Employer ‘Removal of Constructional Plant. Employer's Obligations WAR OR EARTHQUAKE Effect of War or Earthquake PRICE VARIATION Fluctuation of Prices SETTLEMENT OF DISPUTES Reference to Engineer for a Decision Engineer's Decision to be binding until completion of Works. Reference to Arbitration Appointment of Arbitrator Reappointment of Arbitrator IEM Rules for Arbitration Arbitration to Commence after Works complete Power of the Arbitrator. ‘Award of Arbitrator Arbitration Act 1952 (Revised 1972) GOVERNING LAWS, ETC. Governing Laws Stamp Duty “ PAGE a au 2. a1 a aL a 22 22 2 22 2 24 24 24 24 25 25 28 2s 25 25 25, 25 25 25 25 cuavse APPENDIX TO THE CONDITIONS OF CONTRACT SPECIAL PROVISIONS TO CONDITIONS OF CONTRACT CONDITIONS OF TENDERING FORM OF TENDER ARTICLES OF AGREEMENT FORM OF PERFORMANCE BOND wi) PAGE 26-27 2 2» Fd 31-33 34-35, INDEX TO 1.E.M, CONDITIONS OF CONTRACT Access for Engineer to the Works ate Additional Powers of the Engineer Appendix to the Conditions of Contract Application of Insurance Monies Appointment of Arbitrator Approved and Dicected Arbitration Act 1952. ‘Arbitration to Commence after Works complete Articles of Agreement Aatisans and Tradesmen, Assignment of the Contract Award of Arbitrator Bankruptcy or Insolvency Certificate of Making Good Defects Certificate of Partial Occupation Certificate of Practical Completion ‘Change in Written Law, etc. Charges to be bome by the Employer laim for Compliance with Engineer's Instructions, aims . Commencement of Works ‘Compliance of Sub-contractars ‘Compliance with Employment Ordinance 1955, etc ‘Compliance with Engineer's {nstructions Compliance with Written Law, Regulations and Bylaws Conditions of Tendering Consent of the Enginser Contract Documents mutually explanatory Contractor's Superintendence Contribution to SOCSO Conversion of Provisional Suim to P.. Sum, ‘Copies of Contract Documents = Copies of Working Drawings : Cross Liability, Third Party and Subrogation Waiver Custody of Contract Documents Damage to Property. Damages for Non.Completion...... Days and Hours of Working iu Daywork, - Deduction From money due to Contractor Default in complying with the Act Default in Tasuring Default in Payment of Wages Default in Renewing Insurance Default of Contractor Default of Employer Defects Liability, Defects Liability Period Definition and Payment of Provisional Sums Definition and Payment of P.C. Sums Definition of Nominated Sub-con ractors/Suppliers Definiticns and Incerpretatton, Delay and Extension of Time Delegation of Enginees's power Discrepancy Documents on Sita Duties of Engineer Duties of Engineer's Representative (ai) Effect of Enginoor's Certificates Effect of War or Earthquake Effects of Termination of Contractor's Employment. Employer not liable for Damage to Plant etc. Employer's Obligations Engineer's Decision to be binding until completion of Works Engineer's Instructions ‘Engineer's Instructions to be in writing Final Account Certificate Fluctuation of Prices. Form of Performance Bond Form of Tender Fossils etc. Governing Laws TEM Rules for Arbitration Indemnity to the Employer Injury to Person, Inspection of Site Insurance of the Works, Issue of Interim Certificate Loss and Expense caused by Delays ‘Making Good Defects of Relevant Part Malaysian Citizens. Marginal Headings or Notes ‘Method of Measurement Non-waiver of Employer's Rights to Indemnity ‘Omission to Supervise (Orders for Variations to be in Writing Partial Release of Retention Fund Particulars of Labour Patent Rights and Royalties Payment by Employer Payment of Interim Certificate Payment of SOCSO contributions Payments to Nominated Subcontractors Performance Bond, Performance Bond not affectad Plant, etc, exclusive use for the Works Possession of Site and Wayleaves Power of Engineer to fix Rates Power of the Arbitrator Production of Insurance of Works Policies Production of Insurance Policies Provisions applying to Nominated Sub-contractors P.C, Sums for Which the Contractor is permitted to tender Quality of Materials, Goods and Workmanship, Quantities Reappointment of Arbitrator Reduction exceeding 20 per cent Reduction of Liquidated and Ascertained Damages. Reference to Arbitration Reference to Engineer for a Decision Release of Performance Bond Release of Retention Fund ‘Removal of Constructional Plant Removal of Plant, ete. (wii) PAGE 25 25 5-15 2 18 aL 20 Removal of Workmen Responsibilities for Nominated Sub-contractors and/or Nominated Suppliers Restriction in Use Retention Fund Retum of Documents Risks to be insured. ‘Samples, Testing of Materials and Works Covered Up ‘Schedule of Defects ‘Scope of Contract Sectional Completion Service of Notices on Contractor Service of Notices on Employer Setting Out Singular and Plural Terms ‘Special Provisions to Conditions of Contract Stamp Duty Submission of Claim Documents Subcontractor Sums to be certified in Interim Certificate ‘Sums to be certified in the Final Account Certificate Taking of Insurance ‘Termination of Subcontract ‘Termination of the Contract ‘Time for Completion Unfixed Materials and Goods Unfulfilled Obligations Validity of Performance Bond Valuation of Variations Valuation of Work done ‘Variations ‘Wages Books and Time Sheets Work to be to Satisfaction of Engineer Workmen's Compensation Insurance Works to be measured (x) CONDITIONS OF CONTRACT Definitions and intarpretation (a) In this Contract (as hereinafter defined) the following words and expressions shall have Definitions the mean: gs hereby axsined to them except where the context otherwise requires and Interpretation (i) “Contract” or “Contract Documents means Articles of Agreement, Form of Tender Letter of Acceptance of Tender. Conditions of Contract and the Appendix annexed thereto. ‘Special Provisions to the Conditions of Contract for: {1} ~ Contract Drawings ~ Bills of Quantities, ~ Specification, and all these documents shall be complementary to one another. (i) -Employe of a — snd includes the Employer's personal representatives or successors. (ii) “Contractor” means the person or persons firm or company whose tender has been accepted by the Employer and includes the Contractor's personal spresentatives sucoossors and permitted assigns. (iv) “Bngimees” means orem — < ss or other Engineer appointed from time to time by the Employer and notified in writing to the Contractor to act as Engineer for the purposes of the Contract in place of the Engineer so designated. (v) “Engineer's Representative"” means any resident engineer or assistant of the Engineer or any clerk of works appointed from time to time by the Employer fot the Engineer to performs the duties set forth in Clause 2 hereof whose authority shall be notified in writing to the Contractor by the Engineer. (vi) “Works” shall include both Permanent Works and Temporary Works, (vi) "Site" means the lands and other places on, under, in or through which che Permanent Works or Temporary Works designed by the Engineer are to be executed and any other lands and places provided by the Employer for working space or any other purpose as may be specifically designated in the Contract as forming part of the Site {vitt) “Contfac’ Sum’ means the sum named in Article 4 2f the Articles of Agreement. (x) “Constrastional Plant" means all appliances or things of whatsoever nature required in or about the execution completion or maintenance of the Works (ahereinvetore defined) but does not include materials or other things in tended ro form or forming part of the Permanent Works. ‘Temporary Works'’ means all temporary works of every kind required in co about the execution completion or maintenance of the Works. (1) Insert the titles of the relevant Special Provisions included in this Contract. “Approved” and “Directed Singular and Plural Terms Marginal Headings or Notes Duties of Engineer Duties of Engineer's Representative Delegation of Engineer's Power Scope of Contract (xi) “Permanent Works” means the permanent works to be executed and main. tained in accordance with the Contract (ail) “Specification” means the specification referred to in the Tender and any ‘modification thereof or addition thereto as may from time to time be fur nished or approved in wstiting by the Engineer. (ail) "Drawings" means che drawings referred to in the Specification and any modification of such drawings approved in writing by the Engineer and such other drawings as may from time to time be furnished or approved in writing by the Engineer. (b) The terms “approved” and “divected”” wherever used in this Contract means approved. co directed in writing (including subsequent confirmation of previous verbal approval cr directions by-the Engineer) and “approval” or “direction”” means approval or direction in weting (including as foresaid) (c) Words importing the singular only also include the plural and vice versa. where the context requires. (4) The marginal headings or notes in these Conditions of Contract shall not be deemed to be part thereof or be taken into consideration in che interpretation or construction of this Contract. Duties of Engineer and Engineer's Representative (a) The Engineer shall be responsible for the overall supervision and ditection of the Works. All questions regarding any work under this Contract shall be taken up by the Contractor with the Engineer. (b) The Engineer's Representative shall be responsible to the Engineer and his duties are to watch and supervise the Works and to test or cause to test and to examine any materials or goods to be used or workmanship employed in connection with the Works, He shall have no authority to relieve the Contractor of any of his duties or obligations under the Contract nor except as expressly provided hereunder to order any work involving delay or any extra paymont by the Employer nor to make any variation of or in the Works. (c) Notwithstanding subclause (2) hereof, the Engineer may from time to time in writing delegate to the Engineer's Representative any of the powers and authorities vested jin the Engineer and shall furnish to the Contractor a copy of all such written delegation of powers and authorities. Any instruction or approval given by the Engineer's Representative to the Contractor within the terms of such delegation shall bind the Contractor and the Employer as though it had been given by the Engineer. Provided always that: (i) Failure of the Engineer's Representative to disapprove any work or materials shall not prejudice the power of the Engineer thereafter to disapprove such work or materials and to order the pulling down, removal or breaking up thereof. () If the Contractor shall be dissatisfied by reason of any decision of the Engineer's Representative he shall be entitled to refer the matter to the Engineer who shall thereupon confirm, reverse ot vary such decision. Scope of Contract ‘The Contractor shall upon and subject to these Conditions of Contract construct and complete the Works shown upon the Contract Drawings and described by or referred to in the Bills of Quantities and/or Specification and in the Articles of Agreement and these Conditions in compliance therewith, using materials, goods and workmanship of the quality and standards therein specified. The Contractor shall also inake good any defect, imperfection, shrinkage for any other fault whatsoever which may appear during the Defects Liability Period in accordance with Clause 45 nereot Work to be to Satisfaction of Engineer Save in so far as itis legally of physically impossible the Contractor shall execute complete ‘and maintain the Works in strict accordance with the Contract to the satisfaction of the Engineer and shall comply with and adhere strictly to the Engineer's instructions and, directions on any matter (whether mentioned in the Contract of not) touching or con. ceming the Works. The Contractor shail take instructions and directions only from the Engineer ot (subject t© the limitations referred to in Clause 2 hereof) from the Engineer's Representative, Engineer's Instructions. (a) The Engineer may in his absolute discretion: from time to time issue further drawings, details, and/or weitten instructions (all of which are hereafter collectively referred to as “Engineer's instructions") in regard to (i) the variations as referred to in Clause 23 hereof; (ii) any discrepancy in or between” the Contract Documents as referred 10 in ‘Clause 8(b) hereof; (iil) the removal from the Site of any material or goods brought thereon by the Contractor and the substitution of any other materials or goods therefor: iv) the removal and/or ce execution of any works executed by the Contractor (0) the removal from the Works of any person mentioned in Clause 21 hereof; (vi) the opening up for inspection of work covered up: (wi) theamending and making good of any defect whatsoever under Clause 45 (vil) any matter which is necessary and incidental to the carrying out and com. pletion of the Works under this Contract: (ix) any matter in respect of which the Engineer is expressly empowered by this Contract to issue instructions. (b) ‘The Contractor shall (subject to subclause (c) hereof) forthwith comply with all instructions issued to him by the Engineer. If within seven (7) days after receipt ‘of @ written notice from the Engineer requiring compliance with an instruction the Contractor does not comply therewith then the Employer without prejudice to any other right or remedy available to the Employer under this Contract may employ land pay other persons to execute any work whatsoever which may be necestary to give effect to such instruction and all costs incurred in connection with such em- ployment shall be recoverable from the Contractor by the Employer as a debt or may be deducted by the Employer from any morey due or to become due to the Contractor under this Contract. (c) All instructions issued by the Engineer shall be issued in writing. Any instruction issued orally shall be of no immediate effect, but shall be confirmed in writing by the Contractor to the Engineer within seven (7) days after receipt of the oral instruction aforesaid, and if not dissented from in writing by the Engineer to the Contractor ‘athin seven (7) days from receipt of the Contractor's confirmation shall take effect {as from the expiration of the latter said seven (7) days. Provided always that if the Engineer within seven (7) days of giving such an oral instruction shall himself confirm the same in writing, then the Contractor shall not be obliged to confirm as aforesaid and the said instruction shall take effect as from the date of the Engineer's con. firmation (4) If compliance with the Engineer's instruction as aforesaid involves loss or expense beyond that reaconably contemplated by the Contractor for which the Contractor would not be reimbursed by a payment made under any other provision in this Con tract, then unlest the same were issued wing to some breach of this Contract by the Contractor, the Contractor shall wathin thirty (30) days of receipt of such instruction, {ive notice in writing of his intention to claim for such loss or expense to the Engineer, Together with an estimate of the amount of such loss and/or expense, subject always 10 Clause 48 hereof. Work wo be 10 Satisfaction of Engineer Engineer's Instructions ‘Compliance with Engineer's Instructions Engineer's Tstructions tobe in writing taim for ‘Compliance with Engineer Instuetions Service of ‘Notices on Contractor Service of Notices on Employer Custody of Contract Documents Copies of ‘Contract Documents Copies of Working Drawings fon Site Return of Documents Reswiction inUe Contact Docaments ‘mutually ‘explanatory Discrepancy Quality of Materials, Goods, and Workmanship Notices (a) ) Any notice to be given to the Contractor under the terms of the Contract shall be served by sending the same by post to of leaving the same at the Contractor's principal place of business (or in the event of the Contractor being 2 company to or at its registered office). Any aotice to be given to the Employer under the terms of the Contract shall be served by sending te same by post to or leaving the same at the Employer's last known address (or in the event of the Employer being a company to or at its registered office) Contract Documents @ >) © @) © © ‘The original Contract Documents shall remain in the custody of the Employer and shall be produced as and when required by che Contractor. Immediately after the execution of this Contract the Engineer shall furnish without charge to the Contractor: (2) one complete set of the Contract Documents (i) two copies of the Contract Drawings. ‘The Engineer shall, as and when necessary and without charge to the Contractor, furnish him with two copies of such further working drawings or details as are reasonably necessary either to explain and amplify the Contract Drawings ot the Specification (if any) or to enable the Contractor to construct and complete the ‘Works in accordance with this Contract. ‘The Contractor shall keep one copy of the Contract Drawings, the Specification (if any), and other like documents referred to in Sub Clause (c) hereof on the Site and the Engineer shall at all reasonable times have access to the same. Upon final payment on the Final Account Certificate under the Clause 48 hereof the Contractor shall if so requested by the Engineer, forthwith return to the Engineer all drawings, details, specifications, and other documents of like nature, None of the documents hereinbefore mentioned shall be used by the Contractor for any purpose other than this Contract. Sufficiency of Contract Documents @ O) @ ‘The Contract Documents are to be taken as mutually explanatory of one another. ‘The Contractor shall provide everything necessary for the proper execution of the Works until its completion according to the true intent and meaning of the Contract Documents taken together whether the same may or may not be particularly shown cr described provided the same may be reasonably inferred therefrom. If the Contractor shall find any discrepancy in ot divergence between any two or more of the Contract Documents including a discrepancy or divergence between parts of any one of them, he shall immediately give to the Engineer a written notice specifying the discrepancy or divergence and the Engineer shail issue instructions in regard thereto. Provided always that if in the opinion of the Engineer compliance with any such instruction shall involve the Contractor in any expense which by reason of any such ambiquity or discrepancy the Contractor did not and had reason not to ant cipate the Engineer shall certify and the Employer shall pay such additional sum as ‘may be reasonable to cover such expense. Provided further that such discrepancy cr divergence shall not vitiate this Contract. ials and Workmanship All materials, goods and workmanship shall be of the respective kinds and standards described in the Bills of Quantities and/or Specification. The Contractor shall upon the request of the Engineer furnish him with vouchers and/or manufacturer's test rtificates to show that the materials and goods comply therewith. 10. n, 12, (b Notwithstanding compliance with Clause 9 (a) hereof, the Contractor shall upon the instruction of the Engineer entirely at his own cost provide samples of materials and goods for testing. The Contractor shall upon the instruction of the Engineer under Clause 5 (a) (vi) hereof open up for inspection any work covered up or arrange for or carry out any test of any material or goods or of any executed work which the Engineer may in writing require and the cost of such opening up of testing (together ‘with the cost of making good in consequence thereof) shall be added to the Contract, Sum unless provided for in the Bills of Quantities by way of Provisional Sums or otherwise or unless the inspection or test shows that the works, materials or goods are not in accordance with this Contract. Unfixed Materials and Goods Unfixed materials and goods delivered to, placed on or adjacent to the Works and intended for incorporation therein, shall not be removed except for use upon the Works, unless che Engineer har consented in writing to such removal. Where the Engineer has included the value of such materials or goods in any certificate in accordance with Clause 47 under which the Contractor has received payment, such materials and goods shall become the property of the Employer but the Contractor shall remain responsible for loss of or damage to the same, Statutory Obligations @ (b) © @ @ ‘The Contractor shall give all notices and pay all fees and charges required to be given, cot paid under any written law, regulation and bylaw in relation to the execution of the Works. Any cost incurred by the Contractor in relation to fees and charges for the instal: lation of permanent connections to public sewers and permanent water and electricity supply shall be bome by the Employer. The Employer shall reimburse the Contractor for such costs by adding it to the Contract Sum provided that such costs have not already been included in the Contract Sum by way of Provisional Sum or otherwise. In addition, the Contractor shall also comply in all other respects with the provision of any such written law, regulation and bylaw which may be applicable to the Works and shall keep the Employer indemnified against all penalities and liabilities of every kind for breach of any such provision, If after the Date of Tender (as specified in the Appendix hereto) there is any change ot amendment in any such written law, regulation and bylaw which necessitates any variation to the Works or any temporary work, the Contractor shall before ‘making such variation give to the Engineer written notice specifying and civing the reason for such variation and apply for an Engineer's instruction in reference thereto. ‘All fonsils, coins articles of value or antiquities and structures and other remains for things of geological or archaeological intorest discovered on the Site of the Works shall be deemed to be the absolute property of the Employer and the Contractor shall take reasonable precautions to prevent his workmen or any other person from removing or damaging any such article or thing and shall, immediately upon dis covery thereof and before removal, acquaint the Enaineer or Engineer's Representative fof such discovery and carry out, at the expense of the Employer, the Engineer's ‘order as to the disposal of the same, Patent Rights and Royalties ‘The Contractor shall save harmless and indemnify the Employer from and against all claims ‘and proceedings for or on account of infringement of any patent rights, design, trademark for name or other protected right in respect of any plant, machine work or material used for cor in connection with the Works or any of them and from and against all claims, demands, proceedings, damages, costs, charges and expenses whatsoever in respect thereof or in relation thereto, Except where otherwise specified, the Contractor shall pay all tonnage and other royalties, rent, fees and other payments or compensation (if any) for getting stone, sand, gravel, clay or other materials required for the Works or any of them. Samples, Testing of Materials and Works covered up Unfixed Mavens snd Goods Compliance with written Law, Reg lations and Bylaws Charges to be bore by the Employer Indemnity to the Employer Change in Written Law, ete. Fossils ete. Patent Rights and Royalties 13 Setting out 14. Inspection of Site 16. Malaysian Citizens Particulars ‘of Labour Compliance of Subcontractors 16. Compliance with Employment Ordinance 1955 ete Setting Out ‘The Contractor shall be responsible for the true and proper setting out of the Works in telation to original points lines and levels of reference given by the Engineer in writing and for the correctness (subject as above-mentioned) of the position levels dimensions and alignment of all parts of the Works and for the provision of all nacessary instruments ap pliances and labour in connection therewith. If at any time during the progress of th- Works any error shall appear or anise in the position, levels, dimensions or alignmens any part of the Works, the Contractor on being required so to do by the Enaineer ot the Engineer's Representative, shall, at his own cost, rectify such error to the satisaction of Engineer or Engineer's Representative, unless such error is based on incorrect data supplied in writing by the Engineer or the Engineer's Representative, in which case the expense of rectifying the same shall be borne by the Employer. The checking of any setting out or of any line ot level by the Engineer or the Engineer's Representative shall not in any way relieve the Contractor of his responsiblity for the correctness thereof and the Contractor shall carefully protect and preserve all bench-marks sight-ails pegs and other things used in setting out the Works. The Contractor shall provide every assistance and every thing neces: sary for checking by the Engineer. Inspection of Si ‘The Contractor shall be deemed to have inspected and examined the Site and its surround: ings and to have satisfied himself before submitting his tender as to the nature of the ground. and subsoil, the form and nature of the Site, the extent and nature of the work, materials land goods necessary for the completion of the Works, the means of communication with ‘and access to the Site, the accommodation he may require and in general to have obtained for himself all necessary information as to risks contingencies and all circumstances in- fluencing and affecting his tender, Any information or document given or forwarded by the Employer to the Contractor shall not relieve the Contractor of his obligations under the provisions of this clause. The Employer gives no warranty for the information or document either as to accuracy or sufficiency or as to how the same should be interpreted fo otherwise howsoever and the Contractor shall make use of and interpret the same entirely at his own risk, Employment of Workmen (a) The Contractor shall employ in the execution of this Contract only Malaysian citizens as workmen, If in any particular trade or skill required to complete the works, the Contractor can show to the satisfaction of the Engineer that Malaysian citizens are ‘not available, then the Contractor may employ non-Malaysian citizens subject to the approval of the relevant Malaysian Government authorities (’) The Contractor shall on the commencement of the Works furnish to the Department of Labour of the State in which this Contract is performed all particulars connected with this Contract and such retums as may be called for from time to time in respe of labour employed by him for the performance of this Contract, in accordance with the requirements of the Employment Ordinance 1955, Employment (Resttiction) Act 1968, and Intemal Security (Registration of Labour) Regulation 1960 ot any subsequent modification or reenactment thereof. The Conttactot shall maintain con the Site at all times during the progress of the Works an up-to-date register con- taining particulars of all workmen employed by him, (c) The Conttactor shall cause his subcontractors (including “labout-only"sub-con. tractors) and Nominated Sub-contractors to comply with the provisions of this Claus Compliance with Employment Ordinance 1955 ete. In the employment of workmen for the execution of this Contzact, the Contractor shall comply and shall cause his sub-contractors (including “labour only’ subcontractors) and Nominated Subcontractors to comply with all the requirements of the Employment Or- dinance 1955, Employment (Restriction) Act 1968, Employee's Frovident Fund Ordinance 1951, Industrial Relations Act 1967 and any other law selating co the employment of workmen, or any subsequent modification or reenactment therso[, Provided that the Contractor shall not be entitled to any claim for additional costs and payments whatsoever in respect of his compliance with the provisions of this clause v. 18, 19, 20. 2. Days and Hours of Working No work shall be done on (2) the weekly day of rest (ii) any public holiday which is recognised in the State where this Contract is being carried (ii) between the hours of five in the evening and eight in the following morning without the written permission of the Engineer provided that when such written application cf the Contractor is approved by the Engineer, the Contractor shall comply fully with all the requirements of the Employment Ordinance 1955 in regard thereto or any subsequent ‘modification of renactment thereof and shall bear any cost for compliance therewith. Contractor's Superintendence ‘The Contractor shall give or provide all necessary superintendence during the execution of the Works and as long thereafter as the Engineet may consider necessary for the proper fulfilling of the Contractor's obligations under the Contract. The Contractor or a com- petent and authorised agent or representative approved of in writing by the Engineer (which approval may at any time be withdrawn) is to be constantly on the Works and shall give his whole time to the superintendence of the same. If such approval shall be withdrawn by the Engineer the Contractor shall as soon as is practicable (having regatd to the require- ment of replacing him as hereinafter mentioned) after receiving written notice of such withdrawal remove the agent from the Site and shall not thereafter employ him again on the Site in any capacity and shall replace him by another agent approved by the Engineer. ‘Such authorised agent or representative shall receive on behalf of the Contractor directions and instructions from the Engineer or (subject to the limitations of Clause 2 hereof) the Engineer's Representative, Wages Books and Time Sheets ‘The Contractor shall keep and shall cause his subcontractors (including “labour only” subcontractors) and Nominated Subcontractors to keep proper wages books and time sheets showing wages paid to and the time worked by all workmen employed by him and his sub-contractors as aforesaid in and for the performance of this Contract and shall pro- duce such wages books and time sheets on demand for inspection by any person duly authorised by the Engineer and shall fumnish to the Engineer or Engineer's Representative such information relating to the wages and conditions of employment of such workmen as the Engineer may from time to time require Default in Payment of Wages In the event of default being made in the payment of any money in respect of wages, a claim cf which has been filed in an office of the Department of Labour, and/or payment in respect of Employees Provident Fund contribution of any workman employed by the Contractor ‘or his subcontractor (including "labour only” sub-contractors) and Nominated Sub) (i) Save in so far as the Contract may preseribe the extent of portions of the Site of which the Contractor is to be given possession from time to time and the order in which such portions shall be made available to him and subject to any requirement in the Contract as to the orcer in which the Works shall be executed the Employer will with the Engineer's written order to commence the Works give to the Contractor posession of so much of the Site as may be required to enable the Contractor to commence and proceed with the construction of the Works in accordance with the pro- gramme (if any) and otherwise in accordance with such reasonable proposals (of the Contractor as he shall by notice in writing to the Engineer make and will from time to time as the Works proceed give to the Contractor possession of such further portions of the Site as may be required to enable the Con tractor to proceed with che construction of the Works with due despatch jm accordance with the said programme or proposals (as the case may be), If the Contractor suffers delay or incurs expenses from failure on the part ‘of the Employer to give possession in accordance with the terms of this Clause the Engineer shall grant an extension of time for the completion ff the Works and certify such sum as in his opinion shall be fair to cover the expense incurred which sum shall be paid by the Employer. (Gi) The Contractor shall bear all expenses and charges for special or temporary wayleaves required by him in connection with access to the Site. The Contractor shall also provide at his own cost any additional accommodation Outside the Site required by him for the purposes of the Works. Completion of Works (a) Subject to any requirement of Clause 41, the Contractor shall complete the whole of the Works on or before the “Date for Completion” stated in the Appendix or such extended time as may be allowed under Clause 43 hereof. (b) When the whole of the Works have reached practical completion according to the provisions of this Contract and to the satisfaction of the Engineer, the date of suca completion shall be certified by him and such date shall be the date of the com mencement of the Defects Liability Period as provided in Clause 45 hereof. The certificate issued Under this subclause shall be referred to as the “Certificate of Practical Completion" Damages for Non-Completion If the Contractor fails to complete the Works by the “Date for Completion” stated in the Appendix or within any extended time under Clause 43 hereof and the Engineer certifies in writing that in his opinion the same ought reasonably so to have been completed the Contractor shall pay or allow the Employer a sum calculated at the rate stated in the Ap: pendix as Liquidated and Ascertained Damages for the period during which the said Works shall so remain and have remained incorr~ete and the Engineer may deduct such damages from any money due to the Contractor. The certificate issued under this Clause shall be referred to as the "Certificate of Non-Completion” Release of Performance Bond Commencement of Works Possession of Site and Waylenves Time for Completion Certificate of Pracdcal Completion Damages for Non Completion ay Sectional Completion 42, CCorsiicae of Paroal Occupation Detects Labaity Making Good. Detects of Relevant Part Insurance of the Works Reduction of Liguidated and Ascertained Damages Performance Bond not affected Partial Release of, Retention fund Seetional Completion Where different completion dates for different sections or parts of the Works are stated and identified in the Appendix or elsewhere in the Contract Documents and different and separate Liquidated and Ascertained Damages are provided for each section or par of the Works, the provisions of this Contract in regard to the Certificate of Practical Com pletion, Delay and Extension of Time under Clause 43, Liquidated and Ascertained Damages for delay under Clause 40, the Defects Liability Period, under Clause 45 and the celease of retention fund under sub-clause 47 (f) (but nct insurance of the Works under Clause $4 Performance Bond under Clause 37 and final payment on the Final Account Certificate under Clause 48 hereof) shall, in the absence of any express provision to che contrary elsewhere in the Contract Documents apply mutatis mutandis as if each such section or part was the subject of a separate and distinct contract between the Employer and the Contractor. Par Occupation By Employer If at any time before the whole of Works have reached practical completion, the Employer with the consent of the Contractor shall take possession of and occupy any part of the same (any such part being hereinafter in this Condition referred to as “the relevant part"), then notwithstanding anything expressed or implied elsewhere in this Contract: (a) within seven (7) days from the date on which the Employer shall have taken pos. session of the relevant part the Engineer shall issue a Certificate of Partial Occupation stating the estimated value of the said relevant part, and for all the purposes of this clause (but for no other) the value so stated shall be deemed :o be the total value of the said relevant part {b) for the purposes of Clauses 39 and 45 hereof, the relovant part shall be deemed to have reached practical completion and the Defects Liability Period in respect of the relevant part shall be deemed to have commenced on the date on which the Employer shall have taken possession and occupied thereof. (©) atthe end of the Detects Liability Period of the relevant part and ifn the cpinion of the Engineer any defect, imperfection, shrinkage or any other fault whatsoever in the relevant part which he may have required to be made good under Clause 45 (2) and (b) hereof, shall have been made good by the Contractor, the Engineer shall issue acertificate to that effect. (d) notwithstanding the partial occupation by the Employer of the relevant part the Contractor shall insure and keep insured the Works in the manner as stipulated under Clause 34 and the Contractor shall give notice to the insurer of such partial occupation. (e) the Liquidated and Ascertained Damages specified under Clause 40 for any period of delay after such certification of the practical completion of the relevant part under Sub-Clause (a) hereof, shall be reduced in the proportion which the total value of the relevant part bear to the Contract Sum. (8) it is expressly agreed that nothing contained in the preceding paragraphs shall entitle the Contractor to the release of the Performance Bond or any part thereof deposited by him under Clause 37 hereof, the intention being that the said Performance Bond cot any part thereof shall be released or refunded only upon the completion of making good all defects, imperfections, shrinkages or other faults which may appear during the Defects Liability Period and upon the giving of the Certificate of Making Good Defects for the whole of the Works under Clause 45 hereot. () @_ Within fourtaen days of the date on which the Employer shall have taken possession of the selevant part there shall be paid to the Contractor from the sums then retained (if any) under Clause 47 (e) of these Conditions one-half of an amount (Rp) a¢ caleulated hereunder: Rp = YWxr c where Rp = The amount hereinbefore mentioned in this sub-clause Vip = Value of relevant part. R = Limit of Retention Fund named in the Appendix to these Conditions (i) On the expiration of the Defects Liability Period named in the Appendix to these Conditions in respect of the relevant part or on the issue of the Certificate of Making Good Defects in respect of the relevant part, which ever is the later, there shall be paid to the Contractor from the sums then retained under Clause 47 (e) of these Conditions (if any) the other half of the amount (Rp) referred to in the immediately preceding sub-paragraph. Delay and Extension of Time Upon it becoming reasonably apparent that the progress of the Works is delayed, the Con. tractor shall forthwith give written notice of the causes of delay to the Engineer and if in the opinion of the Engineer the completion of the Works is likely to be delayed or has been delayed beyond the Date for Completion stated in the Appendix or beyond any extended Date for Completion previously fixed under this clause: (@) dy force majeure, of (0) by reasons of any exceptionally inclement weather, or (©) by reason of directions given by the Engineer consequential upon disputes with neighbouring owners provided the same is not due to any act, negligence or default of the Contractor or any subcontractor, nominated ot otherwise, oF (8) by reason of Joss or damage occasioned by any one or mote of the contingencies referred to in Clause 34 hereof (provided and to the extent that the same is not due to any act, negligence, default or breach of contract by the Contractor or any sub- contractor, nominated or otherwise, whether in failing to take reasonable steps 10 protect the Works or otherwise), of (e) by reason of Engineer's instructions issued under Clause 5 hereof, provided that such instructions are not issued due to any default or breach of contract by the Contractor or any subcontractor nominated or otherwise, or (f) by reason of the Contractor not having received in due time from the Engineer neces. sary instructions, drawings, levels or instructions in ragard to the nomination of sub-contractors and/or suppliers provided in this Contract for which he shall have specifically applied in writing on a date which having regard to the Date for Com: pletion stated in the Appendix to these Conditions or to any extension of time then fixed under these Conditions, was neither unreasonably distant from nor unreasonably close to the date on which it was necessary for him to receive the same, of (a) by reason of delay in giving possession of the Site as provided under Clause 38 (b) (i) hereof, or (h) by reason of any action due to local combination of workmen, strike, or lockout affecting any of the trades employed upon the Works, provided the same are not due to any unreasonable act, neglect or default of the Contractor or of any sub-contractor, nominated or otherwise, or (i) by delay on the part of artisans, tradesmen or others engaged by the Employer in ‘executing work not forming part of this Contract, ot i) by the Contractor’ inability for reason beyond his control and which he could not reasonably have forseen at the date of closing of tender of this Contract to secure such goods and/or materials as are essential tothe proper carrying out of the Works, ot (k) by delay on the part of Nominated Sub-contractors and/or Nominated Suppliers of their works, and such delay shall be caused by the same reasons affecting their work as stated above in sub-clauses (2) to (j) inclusive (provided that the same are not due to any act, negligence, default or breach of contract by the Nominated Subcontractor and/or Nominated Supplier and/or the Contractor, ot any of the servants or agents of such Nominated Sub-contractor or Nominated Supplier or the Contractor) then the Engineer shall so soon as he is able to estimate the length of the delay beyond the date or time aforesaid make in writing a fair and reasonable extension of time for completion ‘of the Works, provided always that the Contractor shall use constantly his best endeavours Delay and Extension of Time Loss and expense caused by Delays Defects Liability Period Defect: Defautt of Contractor ‘Additional Powers of the Engineer Certifcate of. Making Good. Defect Unfutiled obligations to prevent delay and shall do all that may reasonably be required to the satisfaction of the Engineer to proceed with the Works. The certificate issued by che Engineer under this Condition shall be referred to as the "Certificate of Delay and Extension of Loss and Expense Caused by Delays If the regular progress of the Works or any part thereof has been materially affected by reason as stated under Clause 45 (¢), (f), (g) oF (i) hereof (and no other), and the Contractor has incurred direct loss and/or expense for which he would not be reimbursed by a payment ‘made under any other provision in this Contract, then the Contractor shall within 30 days of the occurrence of such event or circumstance give notice in writing to the Engineer of his intention to claim for such direct loss or expense together with an estimate of the amount of such loss and/or expense, subject always to Clause 48 hereof. Defects After Completion (a) At any time during the Defects Liability Period as stated in the Appendix hereto (or if not stated the peri is ix (6) months after date of practical completion of the Works), any defect, imperfection, shrinkage or any other fault whatsoever which may appear and which are due to materials or goods or workmanship not in accordance ‘with this Contract, shall be notified by the Engineer in a writen instruction to the Contractor who shall, within a reasonable time to be specified therein by the Engineer, take good such defects, imperfections, shrinkages cr any other fault whatsoever at the Contractor's own costs (©) Notwithstanding sub-clause (a) above, any defect, imperfection, shrinkage or any other fault whatsoever which may appear during the Defects Liability Period to be made good by the Contractor, shall be specified by the Engineer in the Schedule of Defects which he shall deliver to the Contractor aot later than fourteen (14) days ater the expiration of the Defects Liability Period. The defects, imperfections, ‘hrinkages of any other fault whatsoever specified in the Schedule of Defects shall bbe made good by the Contractor at its costs and to be completed within a reasonable dime but in any cave not later than three (3) months after the receipt of the said Schedule. Provided that the Engineer shall not be allowed to issue any further in- struction requiring making good of any defect, imperfection, shrinkage or any other fault whatsoever after the isue of the said Schedule of Defects or after fourteen (14) days from the expiration ofthe said Defects Liability Period, whichever i the later. (c) If the Contractor shall fail to comply with either sub-clause (a) or (b) or both within the time so specified, the materials or works so affected may be made good in such manner as the Engineer may think fit, in which case the costs thereby incurred shall be deducted from the sum remaining to be paid to the Contractor or failing such remainder it shall be recoverable from the Performance Bond or as a liquidated de- mand in money. (a) If any defect, imperfection, shrinkages or any other fault whatsoever be such that, in the opinion of the Engineer, it shall be impracticable or inconvenient to che Employer to have the Contractor to remedy the same, the Engineer shall ascertain tne diminu- tion in the value of the Works due to the existence of such defecis, imperfections, shrinkages or any other fault whatsoever and deduct the amount of such diminution from the sum remaining to be paid to the Contractor or failing such remainder it shall ’be recoverable from the Performance Bond or asa liquidated demand in money. (e) When the defects, imperfections, shrinkages or any other fault whatsoever which are required to be made good under sub-clause (a) or (b) or both has been completed, by the Contractor or otherwise completed under the provision of SubClause (¢) of (d) all to the satisfaction of the Engineer, he shall issue a certificate to that effect and the date named in such certificate shall be the date on which such defects, im- pertections, shrinkages or any other fault whatsoever had been made good. ‘The said Certificate shall be referred to as the ‘Certificate of Making Good Defects. Unfulfilled Obligations Notwithstanding the issue of the Certificate of Making Good Defects under Sub-Clause 45(e) hereof the Contractor and the Employer shall remain liable for the fulfilment of any obli gation incurred under the provisions of the Contract prior t0 the issue of the said certificate, which remains unfulfilled at the time such certificate is issued and for the purpose of deter- ‘mining the nature and extent of any such obligation, the Contract shall be deemed 10 remain in force between the parties hereto. 20 a7. 48, Payment to Contractor and Interim Certificates (a) () © @ O) o Final (a) When the Contractor has executed work, including delivery to or adjacent to the Works of any unfixed materials or goods intended for use thereon in accordance with the terms of this Contract and the total value thereof has reached the sum referred to in the Appendix to these Conditions, and upon the submission of claims by the Contractor, the Engineer shall at that time make the first valuation of the Works. ‘Thereafter, once (or more often at the discretion of the Engineer) and upon the sub. mission of claims by the Contractor during the course of each succeeding month the Engineer shall make a fair valuation of the works properly executed and of the ‘materials and goods delivered to or adjacent to the Works, provided that the total value thereof in each such subsequent valuation shall not be less than the sum referred. to in the Appendix to these Conditions. Within fourteen (14) days from the date of any such valuation being made and subject to the proviso mentioned in sub-lause (a) above, the Engineer shall issue an Interim Certificate stating the amount due to the Contractor from the Employer. ‘The amount stated az due in an Interim Certificate shall, subject to any agreement ‘between the parties as to payment by stages, be the estimated total value of the work. Properly executed and seventy-five (75) per cent of the value of the unfixed materials and goods delivered 10 or adjacent to the Works intended for use thereon up to and. including the date the valuation was made, less any instalment previously paid under this Condition. Provided that such certificate shall only include the value of the said ‘unfixed materials and goods at and from such time as they are reasonably and properly required for the Works and not prematurely delivered to or adjacent to the Works and ‘then only if adequately protected against weather, damage or deterioration, Within ¢ number of days as stated in the Appendix to these Conditions (or if none so. Stated then within thirty (50 days) of the isue of any such Interim Certificate as, ‘aforesaid the Employer will make a payment to the Contractor of the amount certi- fied as due to the Contractor in the said Certificate, ‘The Employer may retain the percentage of the total value of the work, materials and goods referred to in sub-clause (c) of this clause which is named in the Appendix to these Conditions as Percentage of Certified Value Retained. Provided always that when the sum of the amounts so retained equals the amount named in the said Appendix as Limit of Retention Fund or such amount as reduced in pursuance of Clause 42, no further amounts shall be retained by virtue of this sub-clause. ‘The amount retained by virtue of subsclause (e) of this clause shall be subject to the following rules: (i) The Employer's interest in any amount so retained shall be fiduciary as trustee for the Contractor (but without obligation to invest) and the Con actor's beneficial interest theroin shall be subject only to the right of the Employer to have recourse thereto from time to time for payment of any amount which he is entitled under the provisions of this Contract to deduct from any sum due or to become due to the Contractor. (ti) On the issue of the Certificate of Practical Completion, the Engineer shall issue a certificate for one half of the total amount then so retained and the Contractor shall be entitled to payment of the said half within a number of days as stated in the Appendix to these Conditions, (ii) On the issue of the Certificate of Making Good Defects, the Engineer shall issue a Certificate for the remainder of the amount then so retained and the Contractor shall be entitled to payment of the said remainder within a number of days as stated in the Appendix co these Conditions. Account Certifies» Sc soon as is pracuicabie but not later tnan three (2) months after practical completion af the Works, the Contractor shat! sulmit full particular: of all claims made by him under Clause § (d) and/or 44 together with any documents, supporting voucher and. any explanation id calculation ‘ncluding documents relating to the amounts of Nominated Sub

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