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MBES2163 PROFESSIONAL PRACTICE

ASSIGNMENT 2
GROUP 1
COMPARISON ON REVISED CONTRACTS -
PAM CONTRACT 2006 & 2018
CLAUSE 1 - 15
Presented by
AHMAD NORAMIN BIN AHMAD SHUHAIMI MBE171079
ARMAND SHAZNEL BIN NORISHAM
MBE171028
NOOR ADLEEN BINTI ANUAR
MBE171086
NUR AZREEN BINTI MOHD RAMLI
MBE171078
PRABU A/L ALAGAPPEN
MBE171077

Supervised by
01 Introduction

What is PAM Contract ?

The Malaysian Institute of Architects


(Pertubuhan Arkitek Malaysia – PAM)
form of contracts for building works
are by far the most often adopted
standard forms of contract used for
building works

The Malaysian construction industry is


familiar with the meanings of
provisions of the PAM Forms through
practice and court decisions.

It is estimated that 90% of the building


contracts in the private sector are
based on a PAM form namely, the
PAM/ISM 1969 Form or the PAM 1998
Form.
01 Introduction

PAM Contract 2006

PAM 2006 Forms significantly changes


the way the risks for time, money
matters, quality issues and dispute
resolution are allocated between the
contractor, employer and consultant
team.

The Forms are also more procedural,


requiring the contractor, employer and
consultants to strictly adhere to time
provisions with the attendant loss of
rights or incurring of liabilities.

PAM Contract 2006 (With Quantities) PAM Contract 2006 (Without Quantities)
01 Introduction

PAM Contract 2018

The PAM Contract 2018 takes into


consideration compliance with the
latest legislation, feedback from our
members and the introduction of
‘Expert Determination

The latest iteration of the contract


covers the rights and duties of
employers and contracts matters
materially affecting the regular
progress of work, certificate of
extension of time and retention period.

PAM Contract 2018 (With Quantities) PAM Contract 2018 (Without Quantities)
01 Introduction

PAM Contract Timeline

PAM PAM PAM PAM


CONTRACT CONTRACT CONTRACT CONTRACT
1969 1998 2006 2018

The first edition was for Launched on Launched on Launched on


practical purposes a March 1998 April 2007 April 11 2018
lightly amended version of
the JCT 1963 standard
Number of Number of
form of building contract
Clauses - 38 Clauses - 40
02 Revised Clauses

List of Key Revision & Changes in PAM Contract 2018

Clause 3.0 Clause 11.0 Clause 21.0


Article 7 [Contract Documents,
[Variations, Clause 15.0 Clause 16.0 [Date of
Provisional & Prime [Practical Completion [Partial Possession by Commencement,
Programme & As-Built Cost Sums] & Defect Liability]] Employer] Postponement & Date
Drawings]
of Completion]
Definitions Clause 11.1, 11.5,
Clause 3.3 Clause 15.2 Clause 16.1 (d)
11.6(f) & 11.9 Clause 21.3

Clause 25.0
Clause 23.0 Clause 24.0
[Determination of
Contracts
Clause 27.0 Clause 30.0 Clause 34.0
[Extension of Time] [Nominated Sub- [Certificates and
[Loss and/or Expense] Employment by [Mediation]
Employer] Contractors] Payments]
Clause 23.4, 23.6,
Clause 24.3(a) Clause 27.7 & 27.14 Clause 30.4 & 30.5 Clause 34.0
23.8(e), 23.9 & 23.10 Clause 25.4(d) &
25.6

Clause 35.0 Clause 36.0 Clause 37.0 Clause 38.0 Clause 39.0
[Expert
[Adjudication] [Arbitration] [Notice] [Performance Bond]
Determination]

Clause 35.0 Clause 36.0 & 36.1 Clause 37.0 Clause 38.0 Clause 39.5 & 39.6
02 Revised Clauses

Revision covered by Group 1

Clause 3.0 Clause 11.0 Clause 15.0


Article 7 [Contract Documents, [Variations, Provisional &
[Practical Completion & Defect
Programme & As-Built Prime Cost Sums]
Liability]
Drawings]
Definitions Clause 11.1, 11.5,
Clause 3.3 Clause 15.2
11.6(f) & 11.9
03 Comparison (PAM Contract 2006 & 2018)

Article 7 Definitions
Article 7 - ag & ax

PAM Contract 2006 PAM Contract 2018

With ● Limit of Retention Fund means the amount of ● Omitted


Quantities stated in the Appendix under the Clause 30.5 ● Service Provider means any company or body
● Service Provider means any company or body authorised to provide water, electricity,
authorised to provide water, electricity, telephone, telecommunication, sewerage and other related
sewerage and other related services services

Without ● As of With Quantities ● As of With Quantities


Quantities
03 Comparison (PAM Contract 2006 & 2018)

Article 7 Definitions
Article 7 - ag & ax
Retention Fund

Percentage of money that an employer or an


individual holds as protection from incomplete 10% 5%
or inaccurate work done by the hired
contractor.
of each
Interim
= of
Contract
Payment Sum

● To protect an employer or a private


individual from receiving incomplete
services.
● To provide the hired contractor with Issuance of Certificate of
incentive to get the job done right. Practical Completion 2.5%
As per in the Appendix for Clause 30.5 in PAM
Contract 2006
Issuance of Final Certificate 2.5%
● Limit of Retention Fund (If not stated is
Final Certificate is issued after the
5% of the Contract Sum) issuance of Certificate of the Completion
of Making Good Defects
03 Comparison (PAM Contract 2006 & 2018)

Clause 3.0 Contract Documents, Programme & As-Built Drawings


Clause 3.3 - Copies of Documents

PAM Contract 2006 PAM Contract 2018

With Immediately after the execution of the Contract, the Architect Within fourteen (14) days after the Award of the Contract or
Quantities or the QS shall without charge to the Contractor provide him on any date after the award as agreed between the Architect
with: and the Contractor, the Architect or QS shall without charge
to the Contractor provide him with:
3.3(a) one of the two signed original copies of the Contract
Documents 3.3(a) two (2) copies of the Contract Drawings and
3.3(b) two (2) further copies of the Contract Drawings and 3.3(b) two (2) copies of the unpriced Contract Bills
3.3(c) two (2) copies of the unpriced Contract Bills
Within fourteen (14) after the Execution of the Contract the
Architect or QS shall also without charge to the Contractor
provide him with one (1) signed copy of the Contract
Documents

Without As of With Quantities As of With Quantities


Quantities

● The distribution of the copies has been separated into 2 periods of time during the Award of Contract and Execution
of Contract
03 Comparison (PAM Contract 2006 & 2018)

Clause 11.0 Variations, Provisional & Prime Cost Sums


Clause 11.1 - Definition of Variation

It is common in commercial contracts to include a provision that any changes made to a contract are
ineffective unless made in writing and signed by or on behalf of both parties. This is known as a
variation clause, and is intended to prevent informal or inadvertent oral variations.

Variation according to Pam Contract:

The term "Variation" means the alteration or modification of the design, quality or quantity of the Works
including:

11.1(a) the addition, omission or substitution of any work;

11.1(b) the alteration of the kind or standard of any materials and goods to be used in the Works;

11.1(c) the removal from the Site of any work executed or materials and goods brought thereon by
the Contractor for the purposes of the Works other than work, materials and
goods which
are not in accordance with the Contract; and
03 Comparison (PAM Contract 2006 & 2018)

Clause 11.0 Variations, Provisional & Prime Cost Sums


Clause 11.1 - Definition of Variation

PAM Contract 2006 PAM Contract 2018

With 11.1(d)Any changes to the provision in the contract with Addition of new sub-clause under Clause 11.1(d)::
Quantities regards to:
11.1(d)(i) Any limitation of working hours; 11.1(d)(v) The execution of temporary works
11.1(d)(ii) Working space;
11.1(d)(iii) Access to or utilisation of any specific
part of the site
11.1(d)(iv) The execution and completion of the
Work in any specific order

but shall exclude any changes intended to rectiff any


negligence, omission, default and/or breach of contract by
the Contractor and such changes shall be executed by the
Contractor entirely at his own cost.

Without As of With Quantities As of With Quantities


Quantities

● New addition of sub-clause under clause 11.1(d). Sub-clause 11.1(d)(v) The execution of temporary works Is a major
change to the clause
03 Comparison (PAM Contract 2006 & 2018)

Clause 11.0 Variations, Provisional & Prime Cost Sums


Clause 11.1 - Definition of Variation
How important is Temporary Works in construction?

Questions In General Definition

What are temporary works? Temporary works (TW) are the parts of a construction project that
are needed to enable the permanent works to be built. Usually the
TW are removed after use - eg access scaffolds, props, shoring,
excavation support, falsework and formwork, etc. Sometimes the
TW is incorporated into the permanent works - eg haul road
foundations and crane or piling platforms may be used for
hardstanding or road foundations

Are temporary works different to permanent works? It is very important that the same degree of care and attention is
given to the design and construction of temporary works (TW) as to
the design and construction of the permanent works. As TW may
be in place for only a short while there is a tendency to assume they
are less important. This is incorrect. Lack of care with design,
selection, assembly, etc leaves TW liable to fail or collapse. This
places people at risk of injury and can cause the project to be
delayed.

● The addition of Clause 11.1(d)(v) enforces the importance of temporary work in the building environment and
broaden the horizon for the job scopes in design and built.
03 Comparison (PAM Contract 2006 & 2018)

Clause 11.0 Variations, Provisional & Prime Cost Sums


Clause 11.1 - Definition of Variation
Importance of safety in Temporary Works.

Questions In General Definition

Appointment of ‘Temporary Works Coordinator’ (TWC) / The appointment of a TWC is good practice and has been found to
Construction Safety Manager? work well on medium and large projects. The legal requirement is
that the party in control must ensure that work is allocated and
carried out in a manner that does not create unacceptable risk of
harm to workers or members of the public. On projects with
relatively simple TW needs, you may choose not to appoint a TWC.
However, you must still make sure that TW are properly managed
to ensure safety.

Can Structural engineers design Temporary works? No. Temporary works (TW) can be very sensitive to how they are
used and are easily affected by other work taking place nearby.
For these reasons the TW designer needs TW training and
experience.

Education Requirement for Construction Safety Manager. Bachelor's degree in occupational health or similar field typically
required, training and experience in safety regulations and laws
mandatory, Certified license and verication by DOSH (Department
Of Occupational Safety And Health Malaysia)
03 Comparison (PAM Contract 2006 & 2018)

Clause 11.0 Variations, Provisional & Prime Cost Sums


Clause 11.1 - Definition of Variation Role of TWC/Construction Safety Manager

Responsibilities of TWC( Reference: Engr. Norrazman Zaiha bin Zainol)

TWC/Construction Safety Manager Work


Scope.
● Occupational Safety and Health Laws
● OSH Risk Management
● Emergency Response and Planning
● Hazardous Substances
● Fire, Chemical and Machinery Safety
● Occupational Epidemiology
● Ergonomics and Human Factor
● Accident Investigation
● Business Operations Management
03 Comparison (PAM Contract 2006 & 2018)

Clause 11.0 Variations, Provisional & Prime Cost Sums


Clause 11.1 - Definition of Variation

Conclusion
The addition of clause 11.1(d)(v) by no means is drafted to ensure the safety of construction workers
and the public. The correct design and execution of temporary works is an essential element of risk
prevention and mitigation.

Temporary works is widely used in the construction for an “Engineered Solution” used to support or
protect an existing structure or the permanent works during construction or to provide access.

Examples of ‘Temporary Works’ installed in construction site includes, but not limited to:

• Safety Netting
• Edge Protection
• Demarcation Edge Protection
• Temporary Roof Access Stair-towers
• Decking Systems
• Roof Over Netting Systems
• Temporary Access Platforms
• MEWP Access Platforms
03 Comparison (PAM Contract 2006 & 2018)

Clause 11.0 Variations, Provisional & Prime Cost Sums


Clause 11.5 - Valuation of Variation and Provisional Sums

PAM Contract 2006 PAM Contract 2018

With All Variations shall be measured and valued by the All variations shall be measured and valued by the Quantity
Quantities Quantity Surveyor. Where any recording of site Surveyor. Upon completion of the Variations, the Contractor shall
information and/or site measurements are carried out submit complete details and particulars as required by the Architect
at the Site, the Contractor shall provide the Quantity and Quantity Surveyor for valuation of Variations. Where any
Surveyor with such assistance as may be necessary recording of site information and/or site measurements are carried
to carry out the works and the Contractor shall be out at the Site, the Contractor shall provide the Quantity Surveyor
given the opportunity to be present to take such notes with such assistance as may be necessary to carry out the works
and measurements as he may require. ad the Contractor shall be given the opportunity to be present to
take such notes and measurements as he may require. If the
Quantity Surveyor is of the opinion that the details and particulars
submitted by the Contractor are insufficient to enable him to carry
out the measurement and valuation, the Quantity Surveyor shall
within twenty eight (28) Days from receipt of the Contractor’s
submission, inform him of any deficiency in his submission and
may require the Contractor to provide such further details and
particulars within a further twenty eight (28) Days. When the
Contractor has submitted sufficient details and particulars, the
Quantity Surveyor shall measure and value the Variations within
thirty days (30) Days or any other extended date as agreed between
the Architect and Contractor.

Without As of With Quantities but SO is by Architect. As of With Quantities but SO is by Architect.


Quantities
03 Comparison (PAM Contract 2006 & 2018)

Clause 11.0 Variations, Provisional & Prime Cost Sums


Clause 11.5 - Valuation of Variation and Provisional Sums
Variations order process by QS:
The revisions
Contractor to comply the 1.Contractor will submit VO to consultant
QS should inform amendment QS value the variations
amendment

2. QS will first verify its entitlement and they will not


continue to do any measurement yet
Within 28 days Within 28 days Within 30 days

3. Entitlement in terms of -
Required documents :
Receipt from AI / EI , supporting doc ie photos to RFI sign off from
Contractor’s Architect / Engineer / RA / RE / COW, checking new
submission rate Built up rate
● This revision was amended because the contractor did not cooperate to provide
sufficient details during the variation and was delayed in giving the details to QS. 4. If insufficient , they will revert to contractor, exp:
There were some cases that were delayed until the project was completed and - VO No. 10 (additional brickwall) - not entitled - no AI
there were no COW on site to assist with the measurement on site. To conclude attached
the VO in the final account was deferred due to difficulties in verifying and
retrieving documents. 5. The evaluation time period for QS depends on how
many variations there are, if 1 possible within 3 days is
resolved, if it can be easily resolved within 1 day. If
many variations are possible a week.
03 Comparison (PAM Contract 2006 & 2018)

Clause 11.0 Variations, Provisional & Prime Cost Sums


Clause 11.6(f) - Valuation Rules

PAM Contract 2006 PAM Contract 2018

With In respect of Provisional Quantity, the quantities stated in the In respect of Provisional Quantity, the quantities stated in the
Quantities Contract Documents shall be re-measured by the Quantity Contract Documents shall be re-measured by the Quantity
Surveyor based on the actual quantities executed. The rates Surveyor based on the actual quantities executed within sixty
and prices in the Contract Documents shall determine their (60) days after the said works are completed. The rates and
valuations prices in the Contract Documents shall determine their
valuations

Without As of With Quantities As of With Quantities


Quantities

● Revision now sets a time frame of sixty (60) days for the valuation of work based on Provisional Quantities
03 Comparison (PAM Contract 2006 & 2018)

Clause 11.0 Variations, Provisional & Prime Cost Sums


Clause 11.9 - Variation and Additional Expenses added to the contract Sum

PAM Contract 2006 PAM Contract 2018

With As soon as the Architect has ascertained the amount of As soon as the Architect and QS have ascertained the
Quantities Variations and/or additional expenses claimed by the amount of Variations and/or additional expenses claimed by
Contractor under Clause 11.7, the amount so ascertained the Contractor under Clause 11.7, the amount so ascertained
shall be added to the Contract Sum. When an Interim shall be added to the Contract Sum. When an Interim
Certificate is issued after the date of ascertainment, such Certificate is issued after the date of ascertainment, such
amount shall be in included in certificates amount shall be in included in certificates

Without As of With Quantities No changes compared to PAM 2006


Quantities

● Revision notes that the valuation of additional expenses to be carried out by the Architect and Quantity Surveyor
03 Comparison (PAM Contract 2006 & 2018)

Clause 11.0 Variations, Provisional & Prime Cost Sums


Clause 11.9 - Variation and Additional Expenses added to the contract Sum
Variation & Additional Expenses

Where a Variation has caused or is likely to cause the Contractor to incur additional expenses for which
he would not be paid under any provisions, the Contractor may make a claim for such additional
expenses provided always that:
Contractor Architect

Give a written notice of


his intention in claiming Must send along
the additional expenses
- complete particulars of the claim
and
- All necessary calculations
Within

28
Days
03 Comparison (PAM Contract 2006 & 2018) Clause 15.0 Practical Completion & Defect Liability
Clause 15.2 - Certificate of Practical Completion
PAM Contract 2006 PAM Contract 2018

With When the whole of the Works are Practically Completed, the contractor shall When the whole of the Works are Practically Completed, the contractor shall
Quantitie forthwith give written notice to that effect to the Architect who shall within forthwith give written notice to that effect to the Architect who shall within
s fourteen (14) Days doe either one of the following : fourteen (14) Days doe either one of the following :

15.2 (a) if the Architect is of the opinion that the works are not Practically 15.2 (a) if the Architect is of the opinion that the works are not Practically
Completed under clause 15.1, the Architect shall give written notice to the Completed under clause 15.1, the Architect shall give written notice to the
Contractor with copy extended to the Nominated Sub Contractor stating the Contractor with copy extended to the Nominated Sub Contractor stating the
reasons for his opinion ; or reasons for his opinion and specifying the works that are incomplete and /or
the conditions that have not been complied with ; or
15.2 (b) if the Architect is of the opinion that the Works are Practically
Completed under clause 15.1, the Architect shall issue the Certificate of 15.2 (b) if the Architect is of the opinion that the Works are Practically
Practical Completion. The date of Practical Completion shall be : Completed under clause 15.1, the Architect shall issue the Certificate of
Practical Completion. The date of Practical Completion shall be :
15.2(b)(i) the date receipt of the Contractor’s written undertaking to make
good and to complete works and defects of a minor nature, where there are 15.2(b)(i) the date receipt of the Contractor’s written undertaking to make good
such works and defects; or and to complete works and defects of a minor nature, where there are such
works and defects; or
15.2(b)(ii) the date of receipt of the Contractor’s written notice, where there
are no works and defects of a minor nature. 15.2(b)(ii) the date of receipt of the Contractor’s written notice, where there are
no works and defects of a minor nature.
The Certificate of Practical Completion shall be issued to the Contractor
with copies extended to the Employer and Nominated Sub-Contractors. The Certificate of Practical Completion shall be issued to the Contractor with
Upon the issuance of Certificate of Practical Completion by the Architect, copies extended to the Employer and Nominated Sub-Contractors. Upon the
the Contractor shall forthwith return Site Possession to the Employer. issuance of Certificate of Practical Completion by the Architect, the Contractor
shall forthwith return Site Possession to the Employer.

Without As per With Quantities As per With Quantities

● When giving notice that the Works are not practically completed, the Architect is now required to specify the incomplete works or
the conditions which have not been met.