Design and Build_5
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Transcript of Design and Build_5
Dr Khairuddin Abdul Rashid
1
Session 5
PWD Form DB/T (2002)
Conditions of Contract Conditions of Contract
Clause 46 – 62
Dr Khairuddin Abdul Rashid
2
PWD Form DB/T 2002
Conditions of Contract
Clause 46 Procedure for Claims
� Cl. 46.1 if the contractor intends to claim … he must intends to claim … he must submit written notice together with an estimate of the amount within 60 days of the occurrence of an event…
� Cl. 46.2 in relation to Cl. 46.1, the contractor must submit details within 90 days of CPC. Amount to be added to the contract sum
Dr Khairuddin Abdul Rashid
3
PWD Form DB/T 2002
Conditions of Contract
Clause 47 Testing and
Commissioning of M/E and
other Services
� The contractor shall arrange
for all necessary tests to be
carried out on the equipment
and installation, on
completion of the installation
work… the costs should have
been included in the contract
Dr Khairuddin Abdul Rashid
4
PWD Form DB/T 2002
Conditions of Contract
Clause 48 Defects After Completion
� DLP = 24 months
� Contractor to repair at his own � Contractor to repair at his own cost upon instructed by the PD
� Schedules of Defects: 1st
within 14 days; and the final schedule not later than 28 days after the DLP
� Contractor has up to 3 months after receiving the final schedule to make good any defects, etc
Dr Khairuddin Abdul Rashid
5
PWD Form DB/T 2002
Conditions of Contract
Clause 48 Defects After
Completion
� Cl. 48.5 PD to issue the � Cl. 48.5 PD to issue the
Certificate of Completion of
Making Good Defects if the
contractor has fulfilled his
obligations under Cl. 48.1 and
48.2
Dr Khairuddin Abdul Rashid
6
PWD Form DB/T 2002
Conditions of Contract
Clause 49 Unfulfilled Obligations
� Notwithstanding the issue of
CCMGD as per Cl. 48.5, both CCMGD as per Cl. 48.5, both
parties remain liable for the
fulfillment of any obligations
incurred under the contract
Dr Khairuddin Abdul Rashid
7
PWD Form DB/T 2002
Conditions of Contract
Salient points (amendments) on
payments
� Schedule payment� Schedule payment
� Payment based on valuation of
works
� Deferred payment
To be determined by the PD
before tender is called
Dr Khairuddin Abdul Rashid
8
PWD Form DB/T 2002
Conditions of Contract
Clause 50 Interim Payments
� Cl. 50 1(a) Payment Schedule
as Appendix 2. Prepared and as Appendix 2. Prepared and
agreed mutually based upon
the approved programme of
works
� PD may pay according to
work done…
Dr Khairuddin Abdul Rashid
9
PWD Form DB/T 2002
Conditions of Contract
Clause 50 Interim Payments
� Cl. 50 1(b) Where there is no
Payment Schedule, interim Payment Schedule, interim
payment shall be made based
on PD’s monthly valuation of
work done
� Cl. 50.2 The contractor shall
submit to the PD written
application for interim
payments
Dr Khairuddin Abdul Rashid
10
PWD Form DB/T 2002
Conditions of Contract
Clause 50 Interim Payments
� The contractor’s application
shall show separately:shall show separately:
� based on schedule – amount
of variations (Cl. 28) and
amount of Provisional Sums
executed (Cl. 29)
� Not based on schedule – value
of goods or unfixed materials
Dr Khairuddin Abdul Rashid
11
PWD Form DB/T 2002
Conditions of Contract
Clause 50.3 (a) Schedule
Contractor’s application
14 days
OK?
Yes NO
PD issue PD issue notice
interim certificate and Govt. pays
pays within within 30 days
30 days (Cl. 50.3(c) (Cl. 50.3(c)
Dr Khairuddin Abdul Rashid
12
PWD Form DB/T 2002
Conditions of Contract
Clause 50.3 (b) No schedule
Contractor’s application
28 days
Valuation (work done + 90% matls. on site) sum not less than the sum stated in Appendix 1
PD issue
interim certificate
pays within
30 days (Cl. 50.3(c)
Dr Khairuddin Abdul Rashid
13
PWD Form DB/T 2002
Conditions of Contract
Clause 50.3 (c) Honoring of interim certificates = 30 days from issue of the same
� Performance Bond – full value as in the certificate
� Performance guarantee sum –90% of the amount certified… 10% retained as the guarantee sum until the total amount retained is equivalent to 5% of the contract sum
Dr Khairuddin Abdul Rashid
14
PWD Form DB/T 2002
Conditions of Contract
Clause 51 Final Account and Final Certificate
� Cl. 51.1 The contractor to � Cl. 51.1 The contractor to submit a statement of the final account with supporting documents not later than 3 months from CCMGD or CCM
� CL. 51.2 PD to issue the Final Certificate within 3 months after receiving the contractor’s document as stated in Cl. 51.1
Dr Khairuddin Abdul Rashid
15
PWD Form DB/T 2002
Conditions of Contract
Clause 51 Final Account and Final
Certificate
CCMGD or CCM
3 months3 months
Contractor’s documents (if none
3 months PD sends notice)
2 months
Final Certificate
Dr Khairuddin Abdul Rashid
16
PWD Form DB/T 2002
Conditions of Contract
Clause 51.6 Condition precedent
to Final Payment is deleted
(see Amendments note 7)
� A Statutory Declaration, or
� A Certificate signed by/or on
behalf of the DG of Labor
That all payments to workmen
have been paid
Dr Khairuddin Abdul Rashid
17
PWD Form DB/T 2002
Conditions of Contract
Clause 52 Effects of PD’s
Certificate
� PD’s certificate, any approval, � PD’s certificate, any approval,
or payment… not considered
as conclusive evidence
� PD’s certificate shall be final
and binding if there is a
dispute brought before an
arbitrator or in the courts
Dr Khairuddin Abdul Rashid
18
PWD Form DB/T 2002
Conditions of Contract
Clause 53 Deduction from Money
Due to Contractor
� The Government or the PD is � The Government or the PD is
entitled to deduct any money
owing from the contractor to
the Government under the
contract which may become
due or payable to the
contractor under the
contract…
Dr Khairuddin Abdul Rashid
19
PWD Form DB/T 2002
Conditions of Contract
Clause 54.1 Determination of Contractor’s Employment
Determination if the contractor shall make default in any one shall make default in any one or more:
� Suspends the design or construction
� Fails to proceed regularly and diligently
� Failed to follow contract
� Refuses to comply with PD’s instruction
� Fails to comply with Cl. 31
Dr Khairuddin Abdul Rashid
20
PWD Form DB/T 2002
Conditions of Contract
Clause 54.2 Determination of
Contractor’s Employment
Determination if the contractor:
� Is bankrupt
� Becomes insolvent
� Company winding up
� Having a provisional
liquidator
Dr Khairuddin Abdul Rashid
21
PWD Form DB/T 2002
Conditions of Contract
Clause 54.3 Post determination
� Procedures as per Cl. 54.3(a)
– (f)
Clause 55 War or Earthquake
� To continue? To suspend? To
terminate?... Settled by mutual
agreement or Arbitration
Dr Khairuddin Abdul Rashid
22
PWD Form DB/T 2002
Conditions of Contract
Clause 56 Arbitration
� Any dispute… refer to the � Any dispute… refer to the person named in Appendix 1
� The officer decides (within 45 days, in writing) and is binding to the parties until after the completion of the works
� If the above fails… refer to Arbitration … see Cl. 56.3 and Cl. 56.4-56.9
Dr Khairuddin Abdul Rashid
23
PWD Form DB/T 2002
Conditions of Contract
Clause 57 Law Governing the
Contract
� Malaysian Law and Malaysian
Courts
Clause 58 Stamp Duty
� To be borne by the Contractor
Dr Khairuddin Abdul Rashid
24
PWD Form DB/T 2002
Special Conditions
Clause 59 Maintenance
� Cl. 59.1 The contractor shall
maintain the whole works and maintain the whole works and
services for 24 months from
CPC (for scope refer to the
Government’s Requirements)
� Cl. 59.4 PD to issue
Certificate of Completion of
maintenance upon completion
of all maintenance
Dr Khairuddin Abdul Rashid
25
PWD Form DB/T 2002
Special Conditions
Clause 60 Direct Payments and
Consultancy Agreement with
Contractor’s Consultants
� Cl. 60.1 -60.2 agreement with � Cl. 60.1 -60.2 agreement with
consultants must follow the
JKR Standard Form of
Agreement For Consultancy
Services
� The contractor recommends to
the PD for payments… the
Government pays direct to the
respective consultants
Dr Khairuddin Abdul Rashid
26
PWD Form DB/T 2002
Special Conditions
Clause 61 Bills of Quantities
� Only provisional quantities.
Firm quantities shall not form Firm quantities shall not form
part of the contract.
� Rates in the BQs shall be used
as basis from valuation of
variations (Cl. 28)
Dr Khairuddin Abdul Rashid
27
PWD Form DB/T 2002
Special Conditions
Clause 62 Advance Payment
� Cl. 62.1 The contractor is
entitled – 15% of the Builder’s entitled – 15% of the Builder’s
Work or maximum of RM5.0
million. Condition precedent:
� LA duly signed, with
Performance Bond, Insurances
and SOCSO, with all receipts
� Advance payment guarantee
Dr Khairuddin Abdul Rashid
28
PWD Form DB/T 2002
Special Conditions
Clause 62 Advance Payment
Treasury Letter 10/02:
� 25% of builder’s work,
maximum RM10.0 million
� 20% of NSC’s work,
maximum RM5.0 million
Dr Khairuddin Abdul Rashid
29
PWD Form DB/T 2002
Special Conditions
Clause 62 Advance Payment
� For recoupment see Cl. 62.2
� Liability under advance
payment is terminated once
the Government realized the
full sum of advance paid
Dr Khairuddin Abdul Rashid
30
PWD Form DB/T 2002
Conditions of Contract
Deferred payment [Amendments]
Cl. 50 Interim Valuations and
Interim Payments
Cl. 63 Loan Disbursement by the Cl. 63 Loan Disbursement by the
Lender
Cl. 64 Direct Payment to the
Contractor’s Bumiputera
Organizations and or
Professionals
Cl. 65 Financing Cost
Delete Cl. 62 Advance Payment
Dr Khairuddin Abdul Rashid
31
PWD Form DB/T 2002
Conditions of Contract
Deferred payment [Amendments]
� Monthly interim payments are
deferred until CPC
� Contract Sum = Construction � Contract Sum = Construction
cost + Financing cost
� Lender – BPIMB (Bank
Pembangunan)
� Deed of Assignment between
the contractor and the Bank
� Financing cost = actual cost of
fund + 1%
Dr Khairuddin Abdul Rashid
32
PWD Form DB/T 2002
Conditions of Contract
Deferred payment
� There will be monthly interim valuation & paymentsvaluation & payments
� Direct payments to Bumi organizations
� Direct payments to consultants
� Contractor to submit claims for payments
� PD issue interim valuation certificate within 28 days
Dr Khairuddin Abdul Rashid
33
PWD Form DB/T 2002
Conditions of Contract
Deferred payment
� Lender (the bank) will
disburse payment based on disburse payment based on
PD’s certificate
� Govt. pays interim payment
no 1 on CPC = 50% work
done + 50% financing cost
� Govt. pays interim payment
no 2 one year after CPC for
the balance.
Dr Khairuddin Abdul Rashid
34
End of Session 5