Professional Practice 1

GROUP 2
DAPHNE TAN 0329055
ERIC WEE 0329601
FOO VAN JEAN 0330017
FOO ZHI FUNG 0320226
 At present, you are working in a quantity surveying consulting firm and assigned
to be in-charge of a 20 storey condominium project in Penang. The project owner wishes
to understand about Employer’s, Architect’s and Consultant Quantity Surveyor’s
obligations in the contract provisions under PAM Form of Contract 2006 (with
Quantities) and seeks your professional advice for the following scenario for the project.
You are to make references to the relevant clauses (if any) under the PAM Form of
Contract 2006 (with Quantities)
(Part A & B)
Variation
(Part C)
Prime Cost Sum
 A) Advice the Employer on the Architect’s authority in issuing an Architect’s Instruction (AI) that would
constitute variations as provided in PAM Form of Contract 2006 (with Quantities).

What is Architect’s Instruction?

1. Construction contracts generally give the architect the power to issue instructions to
the contractor.

Clause 2.2 – All instructions issued by the Architect shall be in writing expressly entitled
“Architect’s Instruction” (AI). All other forms of written instructions including drawings issued by
the Architect shall be an AI.

Clause 2.4 – Failure of contractor to comply with AI

If the contractor fail to comply the AI within 7days after receiving the AI, Architect have the right
to employ others to replace the contractor.

Clause 11.3 - Issue of variations after Practical Completion

Any instructions issued by the architect after the Certificate of Practical Completion that
requires a Variation must be claimed by obligations with the Appropriate Authority and Service
Provider.
A) Examples of Architect’s Instruction (AI) that would constitute variations.

• Sanction a variation made by contractor

Clause 15.5 Instruction to make good defect

• Relation to the expenditure of provisional sums

Clause 24.4 Loss and expense to be include in certificate

• To exclude person from the site

Clause 8.3 Exclusion of person employed on the works

• To carry out test

Clause 6.3 Inspection and testing
A) Examples of Architect’s Instruction (AI) that would constitute variations.

• Vary the work

Clause 11.3 Issue of variation after practical completion

• Postpone the work

Clause 21.4 Postponement or suspension of work

• Remedy workmanship, goods or material

Clause 6.1 Standard of work material goods and workmanship

• To open up work for inspection

Clause 6.3 Inspection and testing
B) The Contractor has submitted a work list with quantities which he alleges were extra (additional) work.
Describe with examples of how the evaluation of the above variations would be carried out.

Example:
The contractor is given the work of excavating in soft soil. While excavating they
come across hard rock.
Submit a variation of excavating the hard rock as the original work order mentioned
only soft soil.

Varies in….

The discovery of unforeseen ground conditions may result in

a change to the plant or equipment that is being used on site.

Time & Cost

B) Variation with Quantities

Work is of similar character to work ?

Yes Yes No

Executed under similar condition?

Yes No No

Clause 11.6 (a) Clause 11.6 (b) Clause 11.6 (c)

Clause 11.6(b)

The rates in the Contract Bills shall be the basis of valuation, with inclusion of a fair
adjustment in the rates to take into account some cost differences.
B) Variation with Quantities

Clause 11.5 sets out the rules for valuation of Variations and of work executed under
provisional sum by the Contractor.

Quantifying the changes

(i) The changes should be quantified by measuring the “omissions” and the “additions” from
the drawings.
(ii) Where changes are very substantial with total remeasurement of the works, the Q.S and
the Contractor should agree on the set of drawings to be used.

Q.S’ duty :
• Recording of site information and Site
measurement assisted by the Contractor.
• I.e: To verify the ground to be excavated, and
examine the plant/equipment used are
appropriate for the site condition.
(a) Q.S’ name, company, time of arrival and
departure in the site visitor’s book.
(b) Ensure that all measurements taken are
properly recorded with date of the
measurement.
(c) Contractor’s initial.
B) The Contractor has submitted a list of work with time sheets which he alleges were done on day work basis.
Describe with examples of how the evaluation of the above variations would be carried out.

Daywork Contractor

+
Specifically instructed work
A mark up for
on the basis of the cost of
overheads and profit.
labour, materials and plant.

Generally used when work cannot be priced in the normal way.

Common Causes:
• Minor additions of quantity to complete works
(Adding a ground beam after frame work is done).
• Opening up the works
(Opening up ceiling to apply water proofing).
• Demolition works
• Emergency works
• Cleaning and clearance operations
• Testing not indicated in specs or BOQ
• Repair and reinstatement of damages not by default of contractor
B) Daywork Record Sheet

Install additional bends for pipework

Address of site
B) Daywork

Q.S & Engineer to

inspect on site Architect to Overall approval
with Contractor approve. from Client.
and Clerk of Work.
1. What is Prime Cost Sum ?
2. THREE (3) examples are allowed in the Bills of Quantities.
3. Explain why profit and attendance are also allowed.
4. Differentiate between general and special attendance.
 What is Prime Cost (PC) Sum?

1. A prime cost sum is an allowance, is a sum to cover specialist

work, usually calculated by cost consultant, for the supply of work
or materials to be provided by a contractor or supplier that will be
nominated by the client
2. A nominated sub-contractor does enter into a formal contractor
with the main contractor and has the benefit of stipulated
payment procedures for which the nominated sub-contractor has
to agree to give the main contractor 2.5% discount on all sums due
to cover administration costs.
3. In addition to the inclusion of a prime cos sum, the main contractor
also has the opportunity to include attendance on the sub-
contractors.
What material should be
use for bench top?
 Examples

Lift Installation

Cold water & Sanitary Plumbing

Fire protection services
 Why profit and attendance are also allowed?

• The main contractor is permitted to make profit from the use

of nominated sub-contractor on site but must provide
attendance; usually the provision of water, power, and other
services to enable the sub-contractor to do his job.
• These allowances vary according to the nature of the works
being carried out by the sub-contractor, but could include:
• Unloading, storage and protection of the sub-contractor's materials
• Provision of accommodation, plant, scaffolding and services re- quire
by the sub-contractors
• Disposing of rubbish and packaging generated by the sub- contractors,
and
• Protecting the finished work until the project is complete.
 Why profit and attendance are also allowed?

• Attendances can be priced in a variety of ways by the

main contractor, for example

• As a lump sum.
• a percentage addition,
• Included within profit and overheads allowance.
 General attendance
A wide range of services and facilities provided by the
main contractor on the construction site to all sub-
contractors and or suppliers. However, charges for the
use of such services or facilities are being deducted
from the main contractor’s payment to the
beneficiaries
For examples of general attendance are: hoisting
plant, mobile scaffolding, provision of storage space,
welfare facilities among others.
Special Attendance
Any item or services requested by the sub-contractor
or supplier to be provided by the main contractor in
order to complete his work.
For example a main contractor obtains a quotation
from a sub-contractor to install external ‘signage’ to a
building, however the quotation excludes cradles and
mobile cranes which are required for the installation
and completion of the work. In this case, ‘the cradle’
and the mobile crane’ constitute the main contractor’s
special attendance
thank you.