GOVERNMENT OF MALAYSIA

STANDARD FORM OF
DESIGN & BUILD / TURNKEY CONTRACT
(PWD FORM DB/T)
 CONDITIONS OF CONTRACT
FOR DESIGN & BUILD AND TURNKEY PROJECTS

(PWD FORM DB/T)

This form has been approved by Attorney General’s Chambers (Reference: PN. (Adv) 250)
GENERAL CONDITIONS OF CONTRACT
Table of Contents

Clause Page
ARTICLES OF AGREEMENT AA/1

CONDITIONS OF CONTRACT

1. Interpretation, definitions, etc. 1

1.1 Method of reference to Clauses 1

1.2 Articles etc. to be read as a whole 1

1.3 Definitions 1

1.4 Singular and Plural Terms 3

1.5 Marginal Headings or Notes 3

2. Contractor's Obligations 3

2.1 Contractor’s General Obligation 3

2.2 Design Guarantee 3

2.3.1 Any reference to Contractor's design to include design

proposed by others. 4

2.3.2 Contractor’s Design Responsibility 4

2.4.1 Quality Assurance 4

2.4.2 Contractors’ duties, etc not relieved 4

2.5 Statutory Checks 4

2.6 Contractor responsible for safety 4

2.7.1 Care of the works. 4

2.7.2 Excepted Risks 5

2.8.1 Duties of the Contractor to inform of any accident,

and failure etc. 6

2.8.2 No remedial works by the Contractor unless directed. 6

2.8.3 Contractor to render necessary assistance 6

2.8.4 Urgent Repairs 6

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2.9.1 Employment of Consultants 7

2.9.2 Proposed Consultants 7

2.9.3 Employment of Consultants with the consent of the P.D. 7

2.10.1 Bumiputera Participation 7

2.10.2 List of Bumiputera organization 7

2.10.3 Default by Contractor 8

2.10.4 Contractor’s obligations unchanged 8

2.11.1 Programmed of works to be furnished 8

2.11.2 Action by the P.D. 8

2.11.3 Modified Programmed or Further Information 9

2.11.4 Programmed to be Revised 9

2.11.5 Contractor to remain responsible 9

3. P.D.'s right to take action 10

Officer empowered to act on behalf of Government and to approve variations 10

4. P.D.'s Instructions 10

4.1 Compliance with P.D.'s instructions 10

4.2 Action of P.D. in the event of non-compliance with instructions 10

4.3 P.D.'s instruction to be in writing 10

5. Notices 11

6. Custody and Supply of Contract Documents 11

6.1 Custody of Contract Documents. 11

6.2 Copies of Contract Documents. 11

6.3 Drawings etc. of the Contractor. 11

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6.4 Availability of documents on site. 11

6.5 Supply by Contractor of `as built' drawings etc. 11

6.6 Use of documents 12

6.7 Contractor's plans and specifications to use S.I. Units. 12

7. Sufficiency of Contract Documents 12

7.1 Contractor to provide everything necessary 12

7.2 Conditions to prevail 12

7.3.1 Discrepancies 12

7.3.2 Discrepancies within Contractor’s Proposals 13

8. Materials, goods and workmanship 13

8.1 Standards and Codes of Practice 13

8.2 Quality of materials, goods and workmanship 13

8.3 Vouchers of materials and goods 13

8.4 Checks and Tests 13

8.5 Removal from Site - work, materials or goods 14

8.6 Tests 14

8.7 Cost of tests 14

8.8 Further tests 14

9. Restriction and Procedure on Use of Imported

Materials and Goods 15

9.1 Contractor to use materials of Malaysian Origin 15

9.2 Substitution of imported materials etc. with local materials 15

9.3 Procurement based on FOB and use of

Government’s MTO 15

9.4 Documentary evidence of compliance 15

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10. Construction Plant, Equipment, Vehicles and Machineries 16

10.1 Payment of Port Dues 16

10.2 Administration of Customs Authorities 16

10.3 Importation by Agent 16

10.4 Application of custom duties 16

10.5 Landing Charges 16

10.6 Customs Clearance 16

10.7 Contractor to Supply Information 16

11. Non-removal of Materials and Equipment on site 17

12. Statutory obligation, notices, fees and charges 17

12.1 Statutory Requirements 17

12.1.1 Compliance with Statutory Requirements 17
12.1.2 Divergence between Statutory Requirements and Contract Documents 17
12.1.3 Emergency Compliance with Statutory Requirement 17

12.2 Fees, charges, rates or taxes 18

12.3.1 Effects of changes in Statutory Requirements after date of tender 18

12.3.2 Changes in Statutory Requirements requiring amendments
to Contractor’s Proposals 18

13. Custom Dues and Taxation 18

13.1 Custom Dues 18

13.2 Payment of tax on profit 18

13.3 Payment of Income Tax by non-Malaysian Personnel 19

14. Antiquities 19

14.1 Effects of find of antiquities 19

14.2 P.D.'s instructions on antiquities found 19

14.3 Direct loss and/or expense 19

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15. Copyright, royalties and patent rights 19

15.1 Treatment of royalties’ etc., indemnity to Government 19

15.2 P.D.'s instructions, treatment of royalties etc. 20

15.3 Payment of royalties, etc. 20

16. Site boundaries and setting out 20

17. Inspection of Site 21

18. Employment of Workmen 21

18.1 Malaysian citizens 21

18.2 Ratio of workmen 21

18.3 Particulars of labor 21

18.4 Source of labor 22

18.5 Sub-contractors to comply 22

19. Compliance with Employment Act 1955 etc. 22

20. Epidemics and Medical Attendance 22

20.1 Epidemic 22

20.2 Medical attendance 22

21 Days and hours of working 23

21.1 Days and hours of working 23

21.2 Contractor to bear costs 23

22. Contractor's Project Manager 23

22.1 Employment of Contractor's Project Manager 23

22.2 Instructions given to Contractor's Project Manager 23

23. Wages books and time sheets 23

24. Default in payment of wages 24

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25. Discharge of Workmen 24

26. Access for P.D. to the Works 24

27. Variations 25

27.1 Definition 25

27.2 Instructed variation 25

27.3 Variations for the purpose of suitability, functionality and safety 26

27.4 Cost to be borne by Contractor 26

27.5 Contractor’s obligations unchanged 26

28. Valuation of Variations 26

28.1 Valuation of instructed Variation 26

28.2 Valuation of omission of work 26

28.3 Allowance for site administration etc. 26

28.4 Day works 26

28.5 Variation by Contractor affecting other works 27

28.6 Fair Valuation 27

28.7 No allowance to be made for loss or expense 27

28.8 Adjustment of Contract Sum 27

29. Provisional Sums 28

29.1 Definition 28

29.2 Adjustment of Contract Sum in respect of Provisional Sums 28

30. Contract Sum 28

30.1 Adjustment of Contract Sum to be in accordance with the Conditions 28

30.2 Adjustment of Contract Sum to be accounted for in the Interim Payments 28

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31. Sub-letting and Assignment 28

31.1 Sub-letting of design 28

31.2 Sub-letting of Works 29

31.3 Determination of Sub-contract 29

31.4 Employment of Sub-Contractor 29

31.5 Assignment of benefit 29

32. Artists and Tradesmen 29

33. Government's Indemnity in respect of Injury to Persons and

Damage to Property 30

33.1 Injury to persons 30

33.2 Damages to Property 30

33.3 Negligence of Government or P.D. 30

34. Insurance against Injury to Persons and damage to Property 30

34.1 Insurance for personal injury or damage to property 30

34.2 Insurance Liability etc. of Government 31

34.3 Production of Policies 31

34.4 Default in insuring 31

35. Indemnities to Government in respect of claims by Workmen 32

36. Employees Social Security Act, 1969 32

36.1 Registration with SOCSO Scheme 32

36.2 Payment of Contribution 32

36.3 Default by Contractor 32

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37. Insurance of Works 33

37.1 Risks to be insured 33

37.2 Production of policies 33

37.3 Default in renewing insurance 33

37.4 Application of insurance money 33

38. Performance Bond 34

38.1 a) Condition precedent and validity of Banker’s/Insurance Guarantee 34

b) Performance Guarantee Sum in lieu of Banker’s/Insurance Guarantee 34

38.2 Application 34

38.3 Release of Performance Bond 34

38.4 Forfeiture 34

39. Possession of Site 35

39.1 Condition precedent to commencement of work 35

39.2 Date for possession 35

39.3 Possession by stages 35

39.4 Delay in giving possession of whole, sections or parts of the Site 35

39.5 a) Delay in giving possession of whole of the Site beyond ninety (90) days 35
b) Delay in giving possession of section or parts of the site beyond ninety (90)
days 36

39.6 Postponement 36

40. Mutual Termination

40.1 Notice of Termination 37

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40.2 Removal and disposal of Contractor’s Equipment etc. 37

40.3 Payment on Termination 37

40.4 Works practically completed 38

40.5 Final account upon termination 38

40.6 Contract to Continue in force 38

41. Completion of the Works 38

41.1 Date of completion 38

41.2 Certificate of Practical Completion 38

41.3 Time, the essence of Contract 38

42. Damages for non-completion 38

42.1 Damages for Non-completion and written notification to the Contractor 38

42.2 Reimbursement of Liquidated Damages 39

42.3 Intervention of Variations 39

43. Sectional completion 39

44. Partial Occupation/Taking over by Government 40

(a) Certificate of Partial Occupation 40

(b) Defects Liability 40

(c) Certificate of Completion of Making Good Defects 40

(d) Insurance of Works 40

(e) Reduction of Liquidated and Ascertained Damages 40

(f) Performance Bond not affected 41

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45. Delay and Extension of Time 41

45.1 Delay and Extension of Time 41

45.2 Claims for Loss and/or Expense due to delay 43

46. Procedure for Claims 43

46.1 Notice of Claims 43

46.2 Submission of claims 43

47. Testing and Commissioning of Mechanical, Electrical and Other Services 44

47.1 Requirements for Testing and Commissioning 44

47.2 Failure to pass tests 44

47.3 Notice of tests 44

47.4 Further Adjustments to Controls 44

47.5 Records of tests 44

47.6 Commissioning of Equipment 44

48. Defects After Completion 45

48.1 Defects Liability Period 45

48.2 Schedules of Defects 45

48.3 Default of the Contractor 45

48.4 Diminution in the value of the Works due to defects etc. 46

48.5 Certificate of Completion of Making Good Defects 46

49. Unfulfilled Obligations 46

50. Interim Payments 46

50.1 a) Interim Payments based on Payment Schedule 46

b) Interim Payments based on Valuation of Works 47

50.2 Application for Interim Payments 47

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50.3 a) Interim Certificate based on Payment Schedule 47

b) Interim Certificate based on Valuation of Works 48

c) Honoring of Interim Certificate 48

51. Final Account and Final Certificate 49

51.1 Final Account 49

51.2 Final Certificate 49

51.3 Contractor’s delay in submission of final account 49

51.4 Final certificate to be conclusive 49

51.5 Right of deduction by Government 49

51.6 Condition Precedent to Final Payment 49

52. Effect of P.D’s Certificates and Payment by Government 50

53. Deduction from Money Due to Contractor 50

54. Determination of Contractor’ Employment 51

54.1 Defaults of Contractor 51

54.2 Bankruptcy or insolvency 51

54.3 Effect of determination of Contractor’s Employment 52

55. Effect of War or Earthquake 54

56. Arbitration 54

56.1 Reference to the Officer named in Appendix 1 for a decision 54

56.2 Decision of the Officer named in Appendix 1 to be binding

until completion of Works 54

56.3 Reference to the Arbitrator 54

56.4 Reference to Arbitrator shall not be commenced until after

completion of the Works 55

56.5 Powers of the Arbitrator 55

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56.6 Discretion of the Arbitrator in respect of costs and award 55

56.7 Award of Arbitrator is final 55

56.8 Appointer of Arbitrator 55

56.9 Arbitration Act 1952 55

57. Law Governing this Contract 56

57.1 Malaysian Law 56

57.2 Contractor to accept the decision of Malaysian Court or

Arbitrator 56

57.3 Enforcement of any decision or award in Contractor’s

country of domicile 56

58. Stamp Duty 56

SPECIAL CONDITIONS

*59. Maintenance of Works and Services 57

*60. Direct Payments and Consultancy Agreement with Contractor’s Consultants 58

* Delete whichever is not applicable

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