FACULTY OF BUILT ENVIRONMENT (FOBE)
BTQS3024 CONTRACT MANAGEMENT TUTORIAL 6
WEEK 6 (2020)
Please answer the following question based on the information from the lecture notes, reference
books or journals.
1. Based on PAM Contract 2018, advice the Architect, if the materials, goods and
workmanship furnished by the Contractor are not in accordance with the
Contract Specification.
Highlight the 5 Architect’s instruction which empowered by the Conditions
Answer:
PAM Contract 2018 Clause. 6.5:
1) To remove from or to bring to the site such materials and goods
2) To demolish and reconstruct such work to comply with contract
3) To rectify such work as instructed by the Architect with no adjustment to
the contract sum
4) To submit a method statement within seven (7) days from receipt of
written instruction (or within such period as may be specified by the
Architect in the instruction) proposing how such works, goods or
workmanship can be rectified. If the Contractor’s proposal is accepted,
the Contractor shall carry the rectification work with no adjustment to the
contract sum or alternatively the Architect may reject the proposal any
other written instruction under
5) With the consent of the Employer, to leave all such works, materials, goods
or workmanship in the works subject to an appropriate set-off by the
Employer under clause 30.4 and the Contractor shall remain liable for the
same.
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FACULTY OF BUILT ENVIRONMENT (FOBE)
2. Cekap Development Sdn Bhd was the developer for a 5 acres housing
development at Nilai. The Employer was not able to hand over part of the site
to the Contractor on the date of commencement. Explain the procedure in
order for the Contractor to claim for extension of time under PAM Contract 2018.
Answer:
• Cekap Development Sdn Bhd was in breach due to his inability to hand
over part of the site to the Contractor on the date of commencement.
• According to Clause 23.8(f), the Contractor was entitled for extension of
time.
• However, the Contractor must submit his application follow the
procedure as set out under Clause 23.1.
• By Clause 23.1(a), the Contractor must give written notification to the
Architect within 28 days from the date Cekap Development failed to
hand over part of the site.
• By Clause 23.1(b), the Contractor must submit a notice to Architect on
the date Cekap Development hand over the said part.
3. Pembinaan Naga Bakti was the Main Contractor for an army camp at Kuala
Kubu. The Contractor submitted an application extension of time based on
clause 43.1(b) PWD 203A 2010, exceptionally inclement weather. Pembinaan
Naga Bakti applied for 20 days extended period in the application.
The supporting document submitted was the weather record in the monthly
progress report and work programme.
All structural works inclusive of flat roof have been completed, laying of internal
and external brickwall in progress.
Briefly explain the validity of the application.
Answer:
• Pembinaan Naga Bakti (PNB) did not submit the requisite documents to
justify his claim under Clause 43.1(b).
• PNB required to submit 5 years meteorological records to proof the
exceptionally weather during the delayed period.
• Furthermore, the site progress was at the stage of internal and external
brickwall laying, whereby, most of the work able to carry out indoor.
• Therefore, exceptionally inclement weather cannot materially affect the
progress of the Works.
• Application submitted by PNB was not valid.
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FACULTY OF BUILT ENVIRONMENT (FOBE)
4. “Clause in relation to ‘extension of time’ is mainly to the benefit of the
Contractor” – express your point of view on the above statement.
Answer:
• The EOT clause in the standard form is intended to preserve the
Employer’s right to liquidated damages.
• If the provision is deleted from the conditions, the Contract Administrator
has no ground to extend the contract period.
• The contract period will be “at large”.
• When the contract period is at time, the Contractor is not bound to
complete before the completion date, but only complete within a
reasonable time.
• The Employer still can seek recourse under common law.
5. Under CIDB 2000, the Contractor not able to furnish complete supporting
documents for his EOT claim of 60 days. The Contractor claimed his
Contract executive did not keep proper record on RFI. correspondence letters,
construction drawings & etc.
Advice the Superintending Officer on this situation.
Answer:
• By Clause 24.2, the Contractor was required to submit the notification to the
Superintending Officer (SO) within 30 days from the event of delay.
• Based on the above scenario, clause 24.3 empowered the SO proceed to make
his decision on the information available.
• The Contractor cannot use the excuse on lack of information for his failure to
comply his obligation to submit proper documents.
• This excuse was not acceptable and reflected his poor contract management
skill.
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