contract administration for construction & engineering contracts - 1

5/20/2018 Contract Administration for Construction & Engineering Contracts - 1

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IEM TRAINING CENTRE SDN. BHD.

TWO DAY INTENSIVE COURSE ON

CONTRACT ADMINISTRATION FOR

CONSTRUCTION & ENGINEERING

CONTRACTS

Presented by: IR. HARBANS SINGH K.S.

B.E. (Mech) SPORE, LLB (Hons) London

CLP, DipICArb, C. Eng, PE.


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ABOUT THE COURSE PRESENTER

Ir. Harbans Singh K.S.

B.E. (Mech) Spore, LLB (Hons) London,

CLP, DipICArb, P.E.,

C. Eng., MIEM, MIMechE,MIHEEM, MASHRAE, MCIArb, MMIArb.

Ir. Harbans Singh K.S. is a Professional and Chartered Engineer, Arbitrator,

Adjudicator, Mediator, Advocate & Solicitor (non-practising). He commenced his

career in Malaysia before working in Germany and then locally in various professional

capacities. He is presently domiciled in Malaysia where he is active in construction

law and dispute resolution. Ir. Harbans is the recipient of IEMs Tan Sri Hj. Yusoff

Prize (2001), the Cedric Barclay and the Chartered Institute of Arbitrators Awards for

the Diploma in International Commercial Arbitration Examination (Oxford 2003). He

is also the author of a series of four books entitled Engineering & ConstructionContracts Management, coauthor of the book The PAM 2006 Standard Form of

Building Contract, contributor to the Malaysian Standard Forms & Precedents:

Construction & Engineering Contracts, The Ingenieur and the Malayan Law

Journal.


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CONTRACT ADMINISTRATION FORCONSTRUCTION/ ENGINEERING CONTRACTS

DAY 1 - PROGRAMME

8.30 a.m. - 9.00 a.m. : Registration

9.00 a.m. - 10.30 a.m. : Session 1

10.30a.m. - 10.45a.m. : Tea/Coffee Break

10.45 a.m. - 12.30 noon : Session 2

12.30 noon - 1.00 p.m. : Q & A Session

1.00 p.m. - 2.00 p.m. : Lunch Break

2.00 p.m. - 3.15 p.m. : Session 3

3.15 p.m. - 3.30 p.m. : Tea/Coffee Break

3.30 p.m. - 4.45 p.m. : Session 4

4.45 p.m. - 5.00 p.m. : Q & A Session

5.00 p.m. : End of Day 1


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CONTRACT ADMINISTRATION FORCONSTRUCTION/ ENGINEERING CONTRACTS

DAY 2 - PROGRAMME

9.00 a.m. - 10.30 a.m. : Session 1

10.30a.m. - 10.45a.m. : Tea/Coffee Break

10.45 a.m. - 12.30 noon : Session 2

12.30 noon - 1.00 p.m. : Q & A Session

1.00 p.m. - 2.00 p.m. : Lunch Break

2.00 p.m. - 3.15 p.m. : Session 3

3.15 p.m. - 3.30 p.m. : Tea/Coffee Break

3.30 p.m. - 4.45 p.m. : Session 4

4.45 p.m. - 5.00 p.m. : Q & A Session

5.00 p.m. : End of Course


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CONTENTS

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1.0 CONSTRUCTION/ENGINEERING CONTRACTS: INTRODUCTION

2.0 COMMENCEMENT OF CONTRACT AT SITE

3.0 MONITORING OF WORK PROGRESS

4.0 SUPERVISION OF WORKS/CONTRACT ADMINISTRATION

5.0 PAYMENTS/COMMERCIAL MATTERS

6.0 VARIATIONS/CHANGES

7.0 DELAY AND EXTENSION OF TIME

8.0 NON-COMPLETION AND DAMAGES

9.0 COMPLETION AND HANDING OVER

10.0 DEFECTS

11.0 POST COMPLETION AND FINAL ACCOUNT


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CONSTRUCTION/

ENGINEERING CONTRACTS:INTRODUCTION


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1.0 CONSTRUCTION/ENGINEERING CONTRACTS: INTRODUCTION

TYPES OF CONTRACTSTYPES OF CONTRACTSTYPES OF CONTRACTSTYPES OF CONTRACTS

1. GENERAL CONTRACTS

2. ENGINEERING/CONSTRUCTION CONTRACTS

TYPES OF BUILDING CONTRACTSTYPES OF BUILDING CONTRACTSTYPES OF BUILDING CONTRACTSTYPES OF BUILDING CONTRACTS

COMMON CONTRACT PROCUREMENT METHODSCOMMON CONTRACT PROCUREMENT METHODSCOMMON CONTRACT PROCUREMENT METHODSCOMMON CONTRACT PROCUREMENT METHODS

1. TRADITIONAL GENERAL CONTRACTS

2. MANAGEMENT TYPES

3. PACKAGE DEAL TYPES

4. MISCELLANEOUS METHODS


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BASIC CONTRACT PRINCIPLESBASIC CONTRACT PRINCIPLESBASIC CONTRACT PRINCIPLESBASIC CONTRACT PRINCIPLES

1. CONTRACT DEFINITIONS

2. ELEMENTS OF CONTRACT

3. STANDARD FORMS OF CONTRACT

4. BREACH OF CONTRACT: REMEDIES

MISCELLANEOUS ISSUESMISCELLANEOUS ISSUESMISCELLANEOUS ISSUESMISCELLANEOUS ISSUES


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FIG. 1-1: GENERAL CONTRACTS - TYPES

SIMPLE

CONTRACTSSPECIALITYCONTRACTS

(DEED)

MATERIAL& LABOUR

CONTRACTS

SUB-SUBCONTRACTS

INDEPENDENTCONTRACTS

MATERIAL SUPPLYCONTRACT

LABOURCONTRACT

COLLATERALCONTRACTS

ORAL

CONTRACTS

EXPRESSCONTRACTS

EMPLOYMENTCONTRACTS

MAIN CONTRACTS

SUB-CONTRACTS

GENERAL

CONTRACTS:

TYPES


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ENGINEERING/CONSTRUCTION

CONTRACTS:

TYPES

FIG. 1-2 : ENGINEERING/CONSTRUCTION CONTRACTS - TYPES


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FIG. 1-3 : TYPES OF CONTRACTS BASED ON PRICING MECHANISM

TYPE OF CONTRACT

LUMP SUMCONTRACTS

LUMP SUMCONTRACTS

COSTREIMBURSEMENT

CONTRACTS

COSTREIMBURSEMENT

CONTRACTS

LUMP SUM WITHPLAN AND

SPECIFICATION

LUMP SUM WITHPLAN AND

SPECIFICATION

LUMP SUM WITHBILLS

OF QUANTITIES

LUMP SUM WITHBILLS

OF QUANTITIES

COST PLUSFIXED FEE

COST PLUSFIXED FEE

COST PLUSPERCENTAGE

COST PLUSPERCENTAGE

COST PLUSFLUCTUATING FEE

COST PLUSFLUCTUATING FEE

TARGET COSTTARGET COST VALUE COSTVALUE COST

MESUREMENTCONTRACTS

MESUREMENTCONTRACTS

BASED ONAPPROXIMATE

QUANTITIES

BASED ONAPPROXIMATE

QUANTITIES

BASED ON ASCHEDULE

BASED ON ASCHEDULE


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TRADITIONALTRADITIONALTRADITIONALTRADITIONALGENERALGENERALGENERALGENERALCONTRACTTINGCONTRACTTINGCONTRACTTINGCONTRACTTING

TRADITIONALTRADITIONALTRADITIONALTRADITIONALGENERALGENERALGENERALGENERALCONTRACTTINGCONTRACTTINGCONTRACTTINGCONTRACTTING

MANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENTTYPETYPETYPETYPE

MANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENTTYPETYPETYPETYPE

TURNKEYTURNKEYTURNKEYTURNKEYTURNKEYTURNKEYTURNKEYTURNKEYENGINEERING, PROCUREMENT,ENGINEERING, PROCUREMENT,ENGINEERING, PROCUREMENT,ENGINEERING, PROCUREMENT,CONSTRUCTION & COMMISSIONINGCONSTRUCTION & COMMISSIONINGCONSTRUCTION & COMMISSIONINGCONSTRUCTION & COMMISSIONING

ENGINEERING, PROCUREMENT,ENGINEERING, PROCUREMENT,ENGINEERING, PROCUREMENT,ENGINEERING, PROCUREMENT,CONSTRUCTION & COMMISSIONINGCONSTRUCTION & COMMISSIONINGCONSTRUCTION & COMMISSIONINGCONSTRUCTION & COMMISSIONING

DESIGN & BUILD/DESIGN & BUILD/DESIGN & BUILD/DESIGN & BUILD/DESIGN & CONSTRUCTDESIGN & CONSTRUCTDESIGN & CONSTRUCTDESIGN & CONSTRUCT

DESIGN & BUILD/DESIGN & BUILD/DESIGN & BUILD/DESIGN & BUILD/DESIGN & CONSTRUCTDESIGN & CONSTRUCTDESIGN & CONSTRUCTDESIGN & CONSTRUCT

FASTFASTFASTFASTTRACKINGTRACKINGTRACKINGTRACKING

FASTFASTFASTFASTTRACKINGTRACKINGTRACKINGTRACKING

CONSTRUCTIONCONSTRUCTIONCONSTRUCTIONCONSTRUCTIONMANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENT

CONSTRUCTIONCONSTRUCTIONCONSTRUCTIONCONSTRUCTIONMANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENT

MANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENTCONTRACTINGCONTRACTINGCONTRACTINGCONTRACTING

MANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENTCONTRACTINGCONTRACTINGCONTRACTINGCONTRACTING

MISCELLANEOUSMISCELLANEOUSMISCELLANEOUSMISCELLANEOUSMETHODSMETHODSMETHODSMETHODS

MISCELLANEOUSMISCELLANEOUSMISCELLANEOUSMISCELLANEOUSMETHODSMETHODSMETHODSMETHODS

PACKAGEPACKAGEPACKAGEPACKAGEDEAL TYPEDEAL TYPEDEAL TYPEDEAL TYPEPACKAGEPACKAGEPACKAGEPACKAGE

DEAL TYPEDEAL TYPEDEAL TYPEDEAL TYPE

BUILD, OPERATEBUILD, OPERATEBUILD, OPERATEBUILD, OPERATE& TRANSFER& TRANSFER& TRANSFER& TRANSFER

BUILD, OPERATEBUILD, OPERATEBUILD, OPERATEBUILD, OPERATE& TRANSFER& TRANSFER& TRANSFER& TRANSFER PARTNERINGPARTNERINGPARTNERINGPARTNERING

PARTNERINGPARTNERINGPARTNERINGPARTNERING

COMMON CONTRACT PROCUREMENT METHODS

FIG. 1-4 : COMMON CONTRACT PROCUREMENT METHODS IN USE


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1985198519851985 1990199019901990 1995199519951995 2000200020002000

1.0 TRADITIONAL GENERAL 95% 76% 31% 20%CONTRACTING

2.0 MANAGEMENT 2% 3% 2% 1%CONTRACTING

3.0 CONSTRUCTION 1% 3% 9% 10%MANAGEMENT

4.0 PACKAGE DEAL TYPE 2% 15% 52% 60%

5.0 BUILD, OPERATE AND - 2% 5% 8%TRANSFER

6.0 OTHER - 1% 1% 1%MISCELLANEOUS

FIG. 1-5 : COMPARISON OF COMMON CONTRACT PROCUREMENT METHODS


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EMPLOYEREMPLOYEREMPLOYEREMPLOYER

PROFESSIONALPROFESSIONALPROFESSIONALPROFESSIONALTEAMTEAMTEAMTEAM ---- DESIGN ANDDESIGN ANDDESIGN ANDDESIGN ANDCONTRACT ADMINISTRATIONCONTRACT ADMINISTRATIONCONTRACT ADMINISTRATIONCONTRACT ADMINISTRATION

PROFESSIONALPROFESSIONALPROFESSIONALPROFESSIONALTEAMTEAMTEAMTEAM ---- DESIGN ANDDESIGN ANDDESIGN ANDDESIGN ANDCONTRACT ADMINISTRATIONCONTRACT ADMINISTRATIONCONTRACT ADMINISTRATIONCONTRACT ADMINISTRATION

SUBSUBSUBSUB----SUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUBSUBSUBSUB----SUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERS

MAIN CONTRACTORMAIN CONTRACTORMAIN CONTRACTORMAIN CONTRACTOR(MC)(MC)(MC)(MC)

MAIN CONTRACTORMAIN CONTRACTORMAIN CONTRACTORMAIN CONTRACTOR(MC)(MC)(MC)(MC)

SUBSUBSUBSUB----SUBSUBSUBSUBCONTRACTORSCONTRACTORSCONTRACTORSCONTRACTORS


1. Architect2. Engineers - C&S, M&E3. Quantity Surveyor4. Other Specialist


SUBSUBSUBSUB----SUBSUBSUBSUBCONTRACTORSCONTRACTORSCONTRACTORSCONTRACTORS SUBSUBSUBSUB----SUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUBSUBSUBSUB----SUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERS

NOMINATED SUPLLIERNOMINATED SUPLLIERNOMINATED SUPLLIERNOMINATED SUPLLIER(NS)(NS)(NS)(NS)

NOMINATED SUPLLIERNOMINATED SUPLLIERNOMINATED SUPLLIERNOMINATED SUPLLIER(NS)(NS)(NS)(NS)

DOMESTIC SUPPLIERDOMESTIC SUPPLIERDOMESTIC SUPPLIERDOMESTIC SUPPLIER(DS)(DS)(DS)(DS)

DOMESTIC SUPPLIERDOMESTIC SUPPLIERDOMESTIC SUPPLIERDOMESTIC SUPPLIER(DS)(DS)(DS)(DS)

Key_______ : Contractual Link_ _ _ _ _ : Responsibility

FIG. 1-6: TRADITIONAL GENERAL CONTRACTING (TGC) CONTRACTUAL RELATIONSHIPS


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EMPLOYEREMPLOYEREMPLOYEREMPLOYER PROFESSIONALPROFESSIONALPROFESSIONALPROFESSIONALADVISORSADVISORSADVISORSADVISORS

PROFESSIONALPROFESSIONALPROFESSIONALPROFESSIONALADVISORSADVISORSADVISORSADVISORS

SUBSUBSUBSUB----SUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUBSUBSUBSUB----SUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERS

D & C CONTRACTORD & C CONTRACTORD & C CONTRACTORD & C CONTRACTORD & C CONTRACTORD & C CONTRACTORD & C CONTRACTORD & C CONTRACTOR



1. Architect

2. Engineers - C&S, M&E3. Quantity Surveyor4. Other Specialist


SUBSUBSUBSUB----SUBSUBSUBSUBCONTRACTORSCONTRACTORSCONTRACTORSCONTRACTORS SUBSUBSUBSUB----SUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUBSUBSUBSUB----SUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERSSUB SUPPLIERS

SUBSUBSUBSUB----SUPPLIERSUPPLIERSUPPLIERSUPPLIER

SUBSUBSUBSUB----

SUPPLIERSUPPLIERSUPPLIERSUPPLIERSUBSUBSUBSUB----

CONTRACTORCONTRACTORCONTRACTORCONTRACTOR

SUBSUBSUBSUB----

CONTRACTORCONTRACTORCONTRACTORCONTRACTORPROFESSIONALPROFESSIONALPROFESSIONALPROFESSIONAL

TEAMTEAMTEAMTEAM

PROFESSIONALPROFESSIONALPROFESSIONALPROFESSIONAL

TEAMTEAMTEAMTEAM


1. Setting up EmployersRequirements

2. Auditing role during

construction

1. Detailed Design2. Construction supervision

Key_______ : Contractual Link_ _ _ _ _ : Responsibility

FIG. 1-7: TURNKEY CONTRACTS/DESIGN & CONSTRUCT (D&C) - CONTRACTUAL

RELATIONSHIPS


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PROFESSIONAL TEAMPROFESSIONAL TEAMPROFESSIONAL TEAMPROFESSIONAL TEAMPROFESSIONAL TEAMPROFESSIONAL TEAMPROFESSIONAL TEAMPROFESSIONAL TEAM

TRADETRADETRADETRADECONTRACTORCONTRACTORCONTRACTORCONTRACTOR


MANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENTCONTRACTORCONTRACTORCONTRACTORCONTRACTOR

(MC)(MC)(MC)(MC)

MANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENTCONTRACTORCONTRACTORCONTRACTORCONTRACTOR

(MC)(MC)(MC)(MC)



1. Architect

2. Engineers - C&S, M&E3. Quantity Surveyor4. Other Specialist



Key

_______ : Contractual Link_ _ _ _ _ : Responsibility

FIG. 1-8: MANAGEMENT CONTRACTING (MC) - CONTRACTUAL RELATIONSHIPS


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PROFESSIONALPROFESSIONALPROFESSIONALPROFESSIONALTEAMTEAMTEAMTEAM

PROFESSIONALPROFESSIONALPROFESSIONALPROFESSIONALTEAMTEAMTEAMTEAM

TRADETRADETRADETRADECONTRACTORSCONTRACTORSCONTRACTORSCONTRACTORS


CONSTRUCTIONCONSTRUCTIONCONSTRUCTIONCONSTRUCTIONMANAGER (CM)MANAGER (CM)MANAGER (CM)MANAGER (CM)

CONSTRUCTIONCONSTRUCTIONCONSTRUCTIONCONSTRUCTIONMANAGER (CM)MANAGER (CM)MANAGER (CM)MANAGER (CM)




Key

_______ : Contractual Link_ _ _ _ _ : Responsibility

FIG. 1-9: CONSTRUCTION MANAGEMENT (CM) - CONTRACTUAL RELATIONSHIPS


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* CONTRACT - DEFINATIONS

1.01.01.01.0 PER ANSONPER ANSONPER ANSONPER ANSON

* Legally binding agreement

* Between two or more parties

* By which rights are acquired by one or more* To acts or forbearances on the part of the other or others

2.02.02.02.0 PER SECTION 2(h) MALAYSIAN CONTRACTS ACT 1950 (REV. 1974)PER SECTION 2(h) MALAYSIAN CONTRACTS ACT 1950 (REV. 1974)PER SECTION 2(h) MALAYSIAN CONTRACTS ACT 1950 (REV. 1974)PER SECTION 2(h) MALAYSIAN CONTRACTS ACT 1950 (REV. 1974)

* An agreement

* Enforceable by Law

** CONTRACT - BASIC ELEMENTS

CLEAR + UNQUALIFIED + CONSIDERATION = CONTRACCLEAR + UNQUALIFIED + CONSIDERATION = CONTRACCLEAR + UNQUALIFIED + CONSIDERATION = CONTRACCLEAR + UNQUALIFIED + CONSIDERATION = CONTRACTTTTOFFEROFFEROFFEROFFER ACCEPTANCEACCEPTANCEACCEPTANCEACCEPTANCE (LEGAL(LEGAL(LEGAL(LEGAL

AGREEMENT)AGREEMENT)AGREEMENT)AGREEMENT)

FIG. 1-10: CONTRACT DEFINITIONS


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INTENTION TO CREATELEGAL RELATIONS

CERTAINTY OF TERMS

LEGAL CAPACITY TOCONTRACT

FREE CONSENT

LAWFUL OBJECT ANDCONSIDERATION

PHYSICAL/LEGALPOSSIBILITY

FIG. 1-11: ELEMENTS OF A VALID/ENFORCEABLE AGREEMENT

+

+


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FIG. 1-12 : STANDARD FORMS OF CONTRACT (PART I)

STANDARDFORMS OF

CONTRACT

DISADVANTAGES

DEFINITION/MEANING

MAIN TYPES

ADVANTAGES

CHARACTERISTICS

PURPOSE

TYPES


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GOVERNMENT/GOVERNMENT/GOVERNMENT/GOVERNMENT/PUBLIC SECTORPUBLIC SECTORPUBLIC SECTORPUBLIC SECTOR

GOVERNMENT/GOVERNMENT/GOVERNMENT/GOVERNMENT/PUBLIC SECTORPUBLIC SECTORPUBLIC SECTORPUBLIC SECTOR

STANDARD FORMS OF CONTRACT

PRIVATE SECTORPRIVATE SECTORPRIVATE SECTORPRIVATE SECTORPRIVATE SECTORPRIVATE SECTORPRIVATE SECTORPRIVATE SECTORINTERNATIONALINTERNATIONALINTERNATIONALINTERNATIONAL

CONTRACTSCONTRACTSCONTRACTSCONTRACTS

INTERNATIONALINTERNATIONALINTERNATIONALINTERNATIONALCONTRACTSCONTRACTSCONTRACTSCONTRACTS

BUILDING WORKSBUILDING WORKS

JKR / PWDJKR / PWD MISCELLANEOUSMISCELLANEOUS

1. FIDIC Conditions

2. ICE Conditions

3. IEEE Conditions

4. IMechE Conditions

5. JCT Conditions

CIVIL ENGINEERINGWORKS

CIVIL ENGINEERINGWORKS

M & E WORKSM & E WORKS

FIG. 1-13: STANDARD FORMS OF CONTRACT (PART II)

203 (Rev. 1/2010) - withoutquantities

203A (Rev. 1/2010) - with

quantities

203N (Rev. 1/2010) - For NSC

203P (Rev. 1/2010) - ForNominated Suppliers

PWD Form DB (2007 Edn.)For Design & Build Contracts

CIDB Form for:

- Building Contracts 2000 Edn.- Form CIDB.B (NSC/2002)

Modified JKR/PWD Forms e.g.LPK, MHA, etc.

IEM Conditions

- IEM.CE 2011- IEM.CES 1/90

PAM Contract 2006(with quantities)

PAM Contract 2006(without quantities)

PAM Sub-Contract 2006

IEM Conditions

- IEM.ME 1/94

TNB Conditions, etc.


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COMMENCEMENT OF

CONTRACT AT SITE


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2.0 COMMENCEMENT OF CONTRACT AT SITE

APPROACHES IN:APPROACHES IN:APPROACHES IN:APPROACHES IN:

1. TRADITIONAL GENERAL CONTRACTS2. DESIGN & BUILD / TURNKEY CONTRACTS

FORMALITIES:FORMALITIES:FORMALITIES:FORMALITIES:

1. CONDITIONS PRECEDENT2. INSURANCES, PERFORMANCE BONDS, ETC.

SITE POSSESSION : MEANING AND EFFECTSITE POSSESSION : MEANING AND EFFECTSITE POSSESSION : MEANING AND EFFECTSITE POSSESSION : MEANING AND EFFECT

SUBMITTALS :SUBMITTALS :SUBMITTALS :SUBMITTALS :1. CONSTRUCTION DRAWINGS2. SHOP DRAWINGS3. SAMPLES4. QA AND QC DOCUMENTS5. HEALTH AND SAFETY DOCUMENTS

6. METHOD STATEMENTS TEMPORARY WORKSTEMPORARY WORKSTEMPORARY WORKSTEMPORARY WORKS

ISSUES FOR ATTENDANCE OF NOMINATED SUBISSUES FOR ATTENDANCE OF NOMINATED SUBISSUES FOR ATTENDANCE OF NOMINATED SUBISSUES FOR ATTENDANCE OF NOMINATED SUB----CONTRACTORSCONTRACTORSCONTRACTORSCONTRACTORS


HSKS


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RELEVANT CASESRELEVANT CASESRELEVANT CASESRELEVANT CASES

1. THE RADIO & GENERAL TRADING CO. SDN. BHD. V WYASS & FREYTAG (M)SDN. BHD. [1998] 1 MLJ 346

2. LEC CONTRACTORS (M) SDN. BHD. V CASTLE INN SDN. BHD. & ANOR[2000]3 MLJ 339

3. KLEINWORT BENSON LTD. V MALAYSIA MINING CORP. BHD [1989] 1 WLR 379

4. NANYANG INSURANCE CO. LTD. V SALBIAH & ANOR[1967] 1 MLJ 94

5. SURREY HEALTH BOROUGH COUNCIL V LOVELL CONSTRUCTION[1988] 42 BLR 25

6. FREEMAN V HENSLER[1981] 20 BLR 78

7. TAN HOCK CHAN V KHO TECK SENG[1980] 1 MLJ 308

8. PUTRA PERDANA CONSTRUCTION SDN. BHD. V AMI INSURANCE BHD

& ORS[2005] 2 MLJ 123 HC

9. YIP SHOU SHAN V SIN HEAP LEE MARUBENI SDN. BHD. [2002] 5 MLJ43, HC`

HSKS


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FIG. 2-1 : COMMENCEMENT - COMMON LABELS

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COMMENCEMENTOF CONTRACT

PERIOD

COMMENCEMENTOF CONTRACT

TAKING OVER OFTHE SITE

SITE POSSESSION

COMMENCEMENTOF WORKS

COMMENCEMENTOF OPERATIONS

ON SITE

COMMENCEMENT:

COMMON LABELS


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FIG. 2-2: PROTECTION AGAINST CONTRACTORS FAILURES COMMON MECHANISMS

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PARENT COMPANYGUARANTEE

LETTER OF AWARENESS

INSURANCE PERFORMANCE BOND

STANDBY LETTEROF CREDIT

LETTER OF COMFORT

PROTECTION AGAINSTCONTRACTORS FAILURES:

COMMON MECHANISMS


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FIG. 2-3 : PROTECTION AGAINST CONTRACTORS FAILURES AN OVERVIEW (PART I)

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PURPOSE

PROTECTION AGAINST CONTRACTORS FAILURES: AN OVERVIEW (PART I)

COMMON MECHANISMS/INSTRUMENTS: TYPES

PARENT COMPANYGUARANTEES

USENATUREPROCEDURAL

REQUIREMENTS

Preliminary review

Check for legal compliance

Check for compliance withformalities

Contractual performance ofCompany within a corporategroup is underwritten by other

members of group

E.g. Subsidiary and HoldingCompany

For commercial andadministrative convenience

Owing to requirements ofapplicable law e.g. companylaw, etc.

Risk transferring contracts

Enable recovery of compensationupon contractors default/failureunder the contract

Parent Company Guarantees

Performance Bonds

Miscellaneous Types:

1. Letters of Comfort2. Standby Letters of Credit3. Insurances

Contd.


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FIG. 2-5 : CONTRACTORS INSURANCE POLICIES COMMON TYPES HSKS


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FIG. 2-6 : INSURANCES AN OVERVIEW (PART I) HSKS

PURPOSES

INSURANCES: AN OVERVIEW (PART I)

DEFINITION TYPES

CATEGORY IICATEGORISATION PRINICPAL TYPES

Contractor: Common Types

Employer: Common Types

Occupier: Common Types

Management Corporation:Common Types

Two Main Categorization:

1. Liability based2. Loss based

Difference: basis ofcompensation

Risk allocation mechanisms

Means of seeking compensationfollowing default/failure

Per Robinson and Lavers

Voluntary assumption ofspecified risk in return for anagreed payment

CATEGORY I

Liability based

Indemnification of insuredagainst damages payable to3rd party

Examples:

1. 3rd Party LiabilityInsurance

2. WorkmensCompensation

3. Professional IndemnityInsurance

Loss based

Compensate insured forloss/damage directlyincurred by insured

Examples:

1. Contractors All RiskPolicy

2. Erection All RiskPolicy


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FIG. 2-8 : SITE POSSESSION AN OVERVIEW

PROVISIONSPROVISIONSPROVISIONSPROVISIONSFORFORFORFOR

SITE POSSESSION: AN OVERVIEW

EXCEPTIONSEXCEPTIONSEXCEPTIONSEXCEPTIONSTO GENERALTO GENERALTO GENERALTO GENERAL

PRINCIPLEPRINCIPLEPRINCIPLEPRINCIPLE

MEANINGMEANINGMEANINGMEANING DEGREEDEGREEDEGREEDEGREE POSTPONEMENTPOSTPONEMENTPOSTPONEMENTPOSTPONEMENTFAILURE TO GIVEFAILURE TO GIVEFAILURE TO GIVEFAILURE TO GIVE

POSSESSIONPOSSESSIONPOSSESSIONPOSSESSION

In Letter ofAcceptance

Or in Contract

LATEST LEGALLATEST LEGALLATEST LEGALLATEST LEGALPOSITIONPOSITIONPOSITIONPOSITION

POSSESSIONPOSSESSIONPOSSESSIONPOSSESSIONON PIECEMEALON PIECEMEALON PIECEMEALON PIECEMEAL

BASIS?BASIS?BASIS?BASIS?

No

GENERALGENERALGENERALGENERALPRINCIPLEPRINCIPLEPRINCIPLEPRINCIPLE

EXPRESSEXPRESSEXPRESSEXPRESS IMPLIEDIMPLIEDIMPLIEDIMPLIED

If not expressed, byLaw

Freeman & SonvHensler

Licence revocable byEmployer at any time

Licence to be free fromany encumbrances

Contractor entitled toSole/exclusivepossession

Express Stipulations

Case Law

Sufficient degreeof possession/access

To execute workunimpeded

To be able toperform work

Express contractstipulations permittingpostponement

GENERALGENERALGENERALGENERALLEGAL POSITIONLEGAL POSITIONLEGAL POSITIONLEGAL POSITION

EXCEPTIONSEXCEPTIONSEXCEPTIONSEXCEPTIONS

GENERALGENERALGENERALGENERALLEGAL POSITIONLEGAL POSITIONLEGAL POSITIONLEGAL POSITION

EFFECTEFFECTEFFECTEFFECT

Breach of Contract Entitles Contractor to

rescind Contract.

Contractor entitled toloss occasioned

Contractor entitled toEOT if expresslypermittedcontractually

Otherwise, LADcannot be imposed

General Position: No Exceptions:

a) Expressstipulations tocontrary

b) Where CommonLaw applies


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TIMING

SITE POSSESSION MEETINGS

EXPLANATIONOF CONTRACT

REQUIREMENTS

PURPOSEMATTERS

DEALT MINUTESPARTICIPANTS

On Date of Commencementof Contract /

Date of Site Possession

INTRODUCTIONOF PROJECT

MEMBERS

HANDOVEROF VARIOUSDOCUMENTS

1. All Project TeamMember

LETTER OFDELEGATIONOF POWERS

SET OUTPROCEDURES

COVERING

COPY OFCONTRACT

DOCUMENTS

PRICED COPYOF B.Q.

SET OFCONSTRUCTION

DRAWINGS

To officially handoverPossession of Site tothe Contractor

DISTRIBUTION/CIRCULATION

WHOPREPARES ?

Document Submittals andApprovals

Sample Submittals andApprovals

Inspection of Work

Interim Valuations

Claim Procedures

Contract Administrator To all parties

FIG. 2-9 : SITE POSSESSION MEETINGS

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WORK PROGRAMME

WORKS UNDER CONTRACT:TYPICAL SUBMITTALS BY

CONTRACTOR

HEALTH AND SAFETYDOCUMENTS

DESIGN AND CALCULATIONSFOR WORKS UNDER P.C.

SUM, PACKAGE DEAL TYPECONTRACTS, ETC.

DRAWINGS I.E. SHOP,FABRICATION, SETTING

OUT, ETC.

MISCELLANOUESREPORTS

AND DOCUMENTS METHOD STATEMENTS

DESIGN ANDCALCULATIONS FOR

TEMPORARY WORKS

QA/QC DOCUMENTS

FIG. 2-10: WORKS UNDER CONTRACT TYPICAL SUBMITTALS BY CONTRACTOR


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MONITORING OF

WORK PROGRESS


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3.0 MONITORING OF WORK PROGRESS

PROGRAMMING OF WORKSPROGRAMMING OF WORKSPROGRAMMING OF WORKSPROGRAMMING OF WORKS

PARTIES RESPONSIBLE:PARTIES RESPONSIBLE:PARTIES RESPONSIBLE:PARTIES RESPONSIBLE:

1. EMPLOYER2. MAIN CONTRACTOR3. CONTRACT ADMINISTRATOR

PROGRESS REPORTSPROGRESS REPORTSPROGRESS REPORTSPROGRESS REPORTS

SITE RECORDSSITE RECORDSSITE RECORDSSITE RECORDS

MEETINGS:MEETINGS:MEETINGS:MEETINGS:

1. SITE POSSESSION2. PROGRESS/SITE3. NSC COORDINATION4. AD-HOC


HSKS


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1. GLENLION CONSTRUCTION LTD. V THE GUINESS TRUST [1987] 39 BLR 89

2. YORKSHIRE WATER AUTHORITY V SIR ALFRED MCALPINE & SON(NORTHERN) LTD. [1986] 32 BLR 114

3. GREATER LONDON COUNCIL V CLEVELAND BRIDGE & ENGINEERING CO.LTD. [1986] 8 Con LR 30

4. KITSONS SHEET METAL LTD. V MATTHEW HALL MECHANICAL &ELECTRICAL ENGINEERS LTD. [1989] 47 BLR 82

5. WEST FAULKNER ASSOCIATES V LONDON BOROUGH OF NEWHAM [1994]71 BLR 1

6. EQUITABLE DEBENTURES ASSETS CORP. LTD. V MORGAN BRANCH

ROBERTS & ORS[1984] 2-CLD-10-01

HSKS


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FIG. 3-1 : WORK PROGRAMME - TYPICAL FORMS

HSKS


39/169

HSKS

PRINCIPAL ACTIVITIES

IDENTIFICATION OFCRITICAL ACTIVITIESAND CRITICAL PATH

IMPORTANTMILESTONES FOR

EMPLOYER TO MEET SEQUENCE OFACTIVITIES

IMPORTANTMILESTONES FOR

CONTRACTOR TO MEET

TIMING OF ACTIVITIES

WORK PROGRAMME:PRINCIPAL CONTENTS

FIG. 3-2 : WORK PROGRAMME PRINCIPAL CONTENTS


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HSKS

FIG. 3-3 : WORK PROGRAMME AN OVERVIEW

RESPONSIBILITYRESPONSIBILITYRESPONSIBILITYRESPONSIBILITY

WORK PROGRAMME: AN OVERVIEW

OPTIONS ONOPTIONS ONOPTIONS ONOPTIONS ONSUBMISSIONSUBMISSIONSUBMISSIONSUBMISSION

METHOD OFMETHOD OFMETHOD OFMETHOD OFWORKINGWORKINGWORKINGWORKING

SEQUENCE OFSEQUENCE OFSEQUENCE OFSEQUENCE OFWORKINGWORKINGWORKINGWORKING

MEANINGMEANINGMEANINGMEANING FORMFORMFORMFORM CONTENTSCONTENTSCONTENTSCONTENTS PURPOSEPURPOSEPURPOSEPURPOSE PART OFPART OFPART OFPART OFCONTRACT?CONTRACT?CONTRACT?CONTRACT?

ALTERATION/ALTERATION/ALTERATION/ALTERATION/REVISIONREVISIONREVISIONREVISION

Express Provisions

By Implication

Sequence andTiming of Activities

Critical Milestones

FOR CONTRACTFOR CONTRACTFOR CONTRACTFOR CONTRACTADMINISTRATORADMINISTRATORADMINISTRATORADMINISTRATOR

FORFORFORFORCONTRACTORCONTRACTORCONTRACTORCONTRACTOR

Approval Rejection Withholding of

Approval

SUBMITTED AFTERSUBMITTED AFTERSUBMITTED AFTERSUBMITTED AFTERTENDER AWARDTENDER AWARDTENDER AWARDTENDER AWARD

PART OF TENDERPART OF TENDERPART OF TENDERPART OF TENDERSUBMISSION?SUBMISSION?SUBMISSION?SUBMISSION?

GeneralPolicies

Mode ofAlternatives /Revision

Effect ofAlternatives/Revision

BARBARBARBARCHARTSCHARTSCHARTSCHARTS

CRITICAL PATHCRITICAL PATHCRITICAL PATHCRITICAL PATHANALYSISANALYSISANALYSISANALYSIS

PERTPERTPERTPERT

PRIMIVERA/PRIMIVERA/PRIMIVERA/PRIMIVERA/MICROSOFTMICROSOFTMICROSOFTMICROSOFTPROJECTPROJECTPROJECTPROJECT

MISCELLANEOUSMISCELLANEOUSMISCELLANEOUSMISCELLANEOUS


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FIG. 3-4 : PROGRESS MONITORING EMPLOYERS PURPOSES

HSKS

TO LEVY CONTROL OVERPROGRESS OF THE WORKS

TO TAKE NECESSARYREMEDIAL MEASURES IF

DELAY OCCURS OR IFEMPLOYER IS AT FAULT

MISCELLANEOUSPURPOSES

TO ENSURE CONTRACTIS COMPLETEDACCORDING TO

SCHEDULE

TO PLAN ANDSTREAMLINE FINANCIAL

ARRANGEMENTSTO OBVIATE DEFAULT

TO WARN CONTRACTORTO TAKE REMEDIAL

MEASURES IN CASEDELAY OCCURS

PROGRESS MONITORING:EMPLOYERS PURPOSES


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HSKSFIG. 3-5 : PROGRESS MONITORING AN OVERVIEW

DURATIONDURATIONDURATIONDURATION

PROGRESS MONITORING: AN OVERVIEW

SITE PROGRESSSITE PROGRESSSITE PROGRESSSITE PROGRESSMEETINGSMEETINGSMEETINGSMEETINGS

PURPOSEPURPOSEPURPOSEPURPOSE METHODSMETHODSMETHODSMETHODS BASISBASISBASISBASIS

FREQUENCY/FREQUENCY/FREQUENCY/FREQUENCY/NATURE OFNATURE OFNATURE OFNATURE OF

CHECKSCHECKSCHECKSCHECKS

SUBSUBSUBSUB----CONTRACTORSCONTRACTORSCONTRACTORSCONTRACTORS

MEETINGMEETINGMEETINGMEETING

COORDINATION/COORDINATION/COORDINATION/COORDINATION/PROJECTPROJECTPROJECTPROJECT

MANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENTMEETINGSMEETINGSMEETINGSMEETINGS


SITESITESITESITEDIARYDIARYDIARYDIARY

OFFICIAL WORKOFFICIAL WORKOFFICIAL WORKOFFICIAL WORKRECORDSRECORDSRECORDSRECORDS

OFFICIALOFFICIALOFFICIALOFFICIALPROGRESSPROGRESSPROGRESSPROGRESSREPORTSREPORTSREPORTSREPORTS

PROGRESSPROGRESSPROGRESSPROGRESSMEETINGSMEETINGSMEETINGSMEETINGS

SITESITESITESITERECORDSRECORDSRECORDSRECORDS

SITESITESITESITEPOSSESSIONPOSSESSIONPOSSESSIONPOSSESSION

MEETINGSMEETINGSMEETINGSMEETINGS

ADADADAD----HOCHOCHOCHOCMEETINGSMEETINGSMEETINGSMEETINGS

PURPOSEPURPOSEPURPOSEPURPOSE METHODSMETHODSMETHODSMETHODS EVIDENTIAL VALUEEVIDENTIAL VALUEEVIDENTIAL VALUEEVIDENTIAL VALUE

PARTIESPARTIESPARTIESPARTIESRESPONSIBLERESPONSIBLERESPONSIBLERESPONSIBLE

From SitePossession

To Issue of FinalCertificate

Normally up toPractical Completiononly

Use of ContractorsWork Programme

Primary Purposes Secondary Purposes

Employer/ contractadministrator

Contractor

On regular basis Normally monthly

Maybe

i. Weeklyii. Fortnightlyiii. Quarterly, etc.


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FIG. 3-6 : POST CONTRACT AWARD STAGE PRINCIPAL TYPES OF MEETINGS

HSKS

POST CONTRACTAWARD STAGE:

PRINCIPAL TYPESOF MEETINGS

SITE POSSESSIONMEETINGS

MISCELLANEOUSMEETINGS

SUB-CONTRACTORSMEETINGS

COORDINATION/PROJECT

MANAGEMENTMEETINGS

SITE PROGRESSMEETINGS

AD-HOCMEETINGS


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FIG. 3-7 : SITE PROGRESS MEETINGS AN OVERVIEW

HSKS

TIMING

SITE PROGRESS MEETINGS: AN OVERVIEW

ENABLEENABLEENABLEENABLECONTRACTOR TOCONTRACTOR TOCONTRACTOR TOCONTRACTOR TO

PURPOSE ISSUES/MATTERS DEALT MINUTES

PARTICIPANTS

PERMIT WORKPERMIT WORKPERMIT WORKPERMIT WORKPROGRESS TOPROGRESS TOPROGRESS TOPROGRESS TO

MISCELLANEOUSMISCELLANEOUSMISCELLANEOUSMISCELLANEOUS

S.O./ ContractAdministrator

DISTRIBUTION/DISTRIBUTION/DISTRIBUTION/DISTRIBUTION/CIRCULATIONCIRCULATIONCIRCULATIONCIRCULATION

WHOWHOWHOWHOPREPARES?PREPARES?PREPARES?PREPARES?

Officially presentprogress report

Present problemsencountered

Be reviewed onregular basis

Identify areas andcauses of delay

Enable Employer/ C.A. toredress delay caused byhim/them

Keep track of financialprogress/allocation

CONTRACTCONTRACTCONTRACTCONTRACTADMINISTRATORADMINISTRATORADMINISTRATORADMINISTRATOR

MAINMAINMAINMAINCONTRACTORCONTRACTORCONTRACTORCONTRACTOR

CONSULTANTSCONSULTANTSCONSULTANTSCONSULTANTS NSCsNSCsNSCsNSCs EMPLOYEREMPLOYEREMPLOYEREMPLOYER

Chairs Meeting

Main participant

Observers Only

Participants if contractadministrator's assistants/representatives

By invitation only Observer only

To all parties/attendees

Main participant

ONLY SITE ISSUESONLY SITE ISSUESONLY SITE ISSUESONLY SITE ISSUES FINANCIAL ISSUESFINANCIAL ISSUESFINANCIAL ISSUESFINANCIAL ISSUES3333RDRDRDRD PARTYPARTYPARTYPARTY

ISSUES AFFECTINGISSUES AFFECTINGISSUES AFFECTINGISSUES AFFECTINGCONTRACTCONTRACTCONTRACTCONTRACT

MISCELLANEOUSMISCELLANEOUSMISCELLANEOUSMISCELLANEOUSISSUESISSUESISSUESISSUES


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FIG. 3-8 : SUB-CONTRACTORS MEETINGS AN OVERVIEW

HSKS

TIMING

SUB-CONTRACTORS MEETINGS: AN OVERVIEW

TO ENABLE SUBTO ENABLE SUBTO ENABLE SUBTO ENABLE SUB----CONTRACTOR TOCONTRACTOR TOCONTRACTOR TOCONTRACTOR TO

PURPOSE ISSUES/MATTERS DEALT

MINUTES

TO PERMITTO PERMITTO PERMITTO PERMITCONTRACTOR TOCONTRACTOR TOCONTRACTOR TOCONTRACTOR TO

MainContractor

DISTRIBUTION/DISTRIBUTION/DISTRIBUTION/DISTRIBUTION/CIRCULATIONCIRCULATIONCIRCULATIONCIRCULATION

WHOWHOWHOWHOPREPARES?PREPARES?PREPARES?PREPARES?

Officially presentprogress report toContractor

Present problemsencountered

Review NSCs progress,areas of delay, etc.

Identify and sortcoordination problems

CONTRACTORCONTRACTORCONTRACTORCONTRACTOR(MAIN)(MAIN)(MAIN)(MAIN)

NOMINATEDNOMINATEDNOMINATEDNOMINATEDSUBSUBSUBSUB----

CONTRACTORSCONTRACTORSCONTRACTORSCONTRACTORS

DOMESTICDOMESTICDOMESTICDOMESTICSUBSUBSUBSUB----

CONTRACTORSCONTRACTORSCONTRACTORSCONTRACTORS

OTHERSOTHERSOTHERSOTHERS(BY(BY(BY(BY

INVITATIONINVITATIONINVITATIONINVITATION))))

Chairs Meeting Employer

Third Parties

ContractAdministrator

To all parties/attendees

PARTICIPANTS

Usually monthly priorto site meetings

If necessary morefrequently

COORDINATIONCOORDINATIONCOORDINATIONCOORDINATIONMATTERSMATTERSMATTERSMATTERS

SITE PROBLEMSSITE PROBLEMSSITE PROBLEMSSITE PROBLEMS FINANCIAL ISSUESFINANCIAL ISSUESFINANCIAL ISSUESFINANCIAL ISSUES 3333RDRDRDRD PARTY ISSUESPARTY ISSUESPARTY ISSUESPARTY ISSUES MISCELLANEOUSMISCELLANEOUSMISCELLANEOUSMISCELLANEOUS

ISSUESISSUESISSUESISSUES

Design

Site Work

Possession

Access

Security

Payments

V.O.s

Claims

Authorities

Utilities Providers

Others


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FIG. 3-9 : AD-HOC MEETINGS AN OVERVIEW

HSKS

AD-HOC MEETINGS: AN OVERVIEW

AS AND WHENAS AND WHENAS AND WHENAS AND WHENNECESSARY FROMNECESSARY FROMNECESSARY FROMNECESSARY FROM

TIME TO TIMETIME TO TIMETIME TO TIMETIME TO TIME

TIMINGTIMINGTIMINGTIMING PURPOSEPURPOSEPURPOSEPURPOSE

USUALLYUSUALLYUSUALLYUSUALLYDICTATED BYDICTATED BYDICTATED BYDICTATED BY

CIRCUMSTANCESCIRCUMSTANCESCIRCUMSTANCESCIRCUMSTANCES

TO DISCUSSTO DISCUSSTO DISCUSSTO DISCUSSSPECIFIC ISSUES /SPECIFIC ISSUES /SPECIFIC ISSUES /SPECIFIC ISSUES /

MATTERSMATTERSMATTERSMATTERS

EMERGENCYEMERGENCYEMERGENCYEMERGENCYISSUESISSUESISSUESISSUES

FINANCIALFINANCIALFINANCIALFINANCIALISSUESISSUESISSUESISSUES

TECHNICALTECHNICALTECHNICALTECHNICALISSUESISSUESISSUESISSUES

ADMINISTRATIVEADMINISTRATIVEADMINISTRATIVEADMINISTRATIVEMATTERSMATTERSMATTERSMATTERS

Site Issues

Design/ Work Issues

3rd Party Issues

Training

Maintenance

As-Built Records

Payments

V.O.s

Claims

Design

Construction/Installation

Testing andCommissioning

Defects

CONVENORSCONVENORSCONVENORSCONVENORS(AS APPLICABLE)(AS APPLICABLE)(AS APPLICABLE)(AS APPLICABLE)

The Employer

The Contract Administrator

The Contractor

The Sub-Contractors

MISCELLANEOUSMISCELLANEOUSMISCELLANEOUSMISCELLANEOUSISSUESISSUESISSUESISSUES


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FIG. 3-10 : SITE RECORDS AN OVERVIEW

HSKS


SITE RECORDS: AN OVERVIEW

PURPOSEPURPOSEPURPOSEPURPOSE METHODSMETHODSMETHODSMETHODS EVIDENTIAL VALUEEVIDENTIAL VALUEEVIDENTIAL VALUEEVIDENTIAL VALUE

From Date of Commencement /Site Possession to

Completion of works

Normally up to PracticalCompletion only

OFFICIALOFFICIALOFFICIALOFFICIALPROGRESSPROGRESSPROGRESSPROGRESS

REPORTREPORTREPORTREPORT

OFFICIAL WORKOFFICIAL WORKOFFICIAL WORKOFFICIAL WORKRECORDSRECORDSRECORDSRECORDS

Contractors Scope

NSCs/DSCs Scope

Extension of Time

Additional Work

Direct loss and/orexpense

Miscellaneous matters

REVIEW WORKREVIEW WORKREVIEW WORKREVIEW WORKPROGRESSPROGRESSPROGRESSPROGRESS

EVALUATEEVALUATEEVALUATEEVALUATECONTRACTORCONTRACTORCONTRACTORCONTRACTORSSSS

CLAIMS TOCLAIMS TOCLAIMS TOCLAIMS TO

PERMITPERMITPERMITPERMITDECISION MAKINGDECISION MAKINGDECISION MAKINGDECISION MAKING

PROVIDE NECESSARYPROVIDE NECESSARYPROVIDE NECESSARYPROVIDE NECESSARYINFORMATION/ EVIDENCEINFORMATION/ EVIDENCEINFORMATION/ EVIDENCEINFORMATION/ EVIDENCE

TOTOTOTOSITE DIARYSITE DIARYSITE DIARYSITE DIARY

DULY SIGNED/DULY SIGNED/DULY SIGNED/DULY SIGNED/ENDORSED RECORDSENDORSED RECORDSENDORSED RECORDSENDORSED RECORDS

ACKNOWLEDGEMENTACKNOWLEDGEMENTACKNOWLEDGEMENTACKNOWLEDGEMENTOF RECEIPT RECORDSOF RECEIPT RECORDSOF RECEIPT RECORDSOF RECEIPT RECORDS

Best evidential value

Some evidential value


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FIG. 3-11 : OFFICIAL WORK RECORDS AN OVERVIEW

HSKS

TIMING OFTIMING OFTIMING OFTIMING OFSUBMISSIONSUBMISSIONSUBMISSIONSUBMISSION

OFFICIAL WORK RECORDS: AN OVERVIEW

RECORD OFRECORD OFRECORD OFRECORD OFSITE INFORMATIONSITE INFORMATIONSITE INFORMATIONSITE INFORMATION

PURPOSEPURPOSEPURPOSEPURPOSE CONTENTSCONTENTSCONTENTSCONTENTS PROCEDURALPROCEDURALPROCEDURALPROCEDURALMATTERSMATTERSMATTERSMATTERS

FOR CONTRACTFOR CONTRACTFOR CONTRACTFOR CONTRACTADMINISTRATIONADMINISTRATIONADMINISTRATIONADMINISTRATION

SIGNING ORSIGNING ORSIGNING ORSIGNING ORENDORSEMENTENDORSEMENTENDORSEMENTENDORSEMENT

TIME OFTIME OFTIME OFTIME OFENTRYENTRYENTRYENTRY

FOR BASISFOR BASISFOR BASISFOR BASISOF OFFICIALOF OFFICIALOF OFFICIALOF OFFICIAL

PROGRESS REPORTPROGRESS REPORTPROGRESS REPORTPROGRESS REPORT

Planned

Undertaken

SAFESAFESAFESAFEKEEPINGKEEPINGKEEPINGKEEPING

DAILYDAILYDAILYDAILY WEEKLYWEEKLYWEEKLYWEEKLY FORTNIGHTLYFORTNIGHTLYFORTNIGHTLYFORTNIGHTLYUSE OFUSE OFUSE OFUSE OF

DESIGNATEDDESIGNATEDDESIGNATEDDESIGNATEDSTAFF FORSTAFF FORSTAFF FORSTAFF FOR

SITE WORK/SITE WORK/SITE WORK/SITE WORK/ACTIVITIESACTIVITIESACTIVITIESACTIVITIES

RECORDRECORDRECORDRECORDOF WORKERSOF WORKERSOF WORKERSOF WORKERS

RECORD OFRECORD OFRECORD OFRECORD OFPLANT/MACHINERPLANT/MACHINERPLANT/MACHINERPLANT/MACHINER

YYYY

WEATHERWEATHERWEATHERWEATHERCONDITIONSCONDITIONSCONDITIONSCONDITIONS

PROBLEMSPROBLEMSPROBLEMSPROBLEMSENCOUNTEREDENCOUNTEREDENCOUNTEREDENCOUNTERED

INSTRUCTIONSINSTRUCTIONSINSTRUCTIONSINSTRUCTIONS MISCELLANEOUSMISCELLANEOUSMISCELLANEOUSMISCELLANEOUS

Skilled

Unskilled

Design

Site

Coordination

Due to 3rd Parties

Received

Carried Out

Outstanding

Site/ FactoryVisits

Inspections

Preparing

Maintaining

Submitting

Daily

By authorizedPerson(s)

S.O/ ContractAdministrator

On site

By S.O./Contractadministrator

Up to lapse ofperiod oflimitation

Affecting work

Delaying siteoperations


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FIG. 3-12 : SITE DIARY AN OVERVIEW

HSKS

NATURENATURENATURENATURE

SITE DIARY: AN OVERVIEW

CONTENTSCONTENTSCONTENTSCONTENTS PROCEDURALPROCEDURALPROCEDURALPROCEDURALMATTERSMATTERSMATTERSMATTERS

Undertaken

PRESENTATIONPRESENTATIONPRESENTATIONPRESENTATIONON REQUEST/ON REQUEST/ON REQUEST/ON REQUEST/

DEMANDDEMANDDEMANDDEMAND

CHECKING /CHECKING /CHECKING /CHECKING /ENDORSEMENTENDORSEMENTENDORSEMENTENDORSEMENT

SAFE KEEPING/SAFE KEEPING/SAFE KEEPING/SAFE KEEPING/CUSTODYCUSTODYCUSTODYCUSTODY

ENTRIES ONENTRIES ONENTRIES ONENTRIES ONDAILY BASISDAILY BASISDAILY BASISDAILY BASIS

SITE WORK/SITE WORK/SITE WORK/SITE WORK/ACTIVITIESACTIVITIESACTIVITIESACTIVITIES

PROBLEMSPROBLEMSPROBLEMSPROBLEMSENCOUNTEREDENCOUNTEREDENCOUNTEREDENCOUNTERED

INSTRUCTIONSINSTRUCTIONSINSTRUCTIONSINSTRUCTIONS RECORD OFRECORD OFRECORD OFRECORD OF MISCELLANEOUSMISCELLANEOUSMISCELLANEOUSMISCELLANEOUS ATTACHMENTSATTACHMENTSATTACHMENTSATTACHMENTS

As to Site Work

Coordination

Site/ factory visits

Weather conditions

Disruption to siteactivities

As-Built sketches,drawings, diagrams,etc.

As-erected/ As-Installed Work/ plant,etc.

By EmployersRepresentative/

Designatedperson

Accuracy ofentries

By S.O./ contractadministrator

Up to lapse ofperiod oflimitation

Preferably kept byeach and every sitepersonnel

Personal record of siteactivities

Otherwise bydesignated sitesupervision teammember

Issued to Contractors

Carried out byContractor

Contractorsdefaults/omissions


From commencement ofwork on site untilcompletion

If necessary until the endof the contract

By designatedperson

By Employer/S.O./ any

interested party


50/169

HSKS

SUPERVISION OF WORKS/

CONTRACT ADMINISTRATION

4 0 SUPERVISION OF WORKS/CONTRACT ADMINISTRATION


51/169

HSKS

4.0 SUPERVISION OF WORKS/CONTRACT ADMINISTRATION

1.01.01.01.0 CONTRACT ADMINISTRATIONCONTRACT ADMINISTRATIONCONTRACT ADMINISTRATIONCONTRACT ADMINISTRATION

PURPOSE

DESIGNATION

ROLES SOURCES OF DUTIES AND POWERS

REPRESENTATIVE/ASSISTANTS

PRINCIPAL DUTIES

LIABILITY

2.02.02.02.0 SUPERVISIONSUPERVISIONSUPERVISIONSUPERVISION

FORMS

DURATION

LEVEL

LIABILITIES

3.03.03.03.0 DISCUSSION OF CASE LAWDISCUSSION OF CASE LAWDISCUSSION OF CASE LAWDISCUSSION OF CASE LAW


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HSKS

CONTRACTADMINISTRATION:

PRIMARY PURPOSES

FIG. 4-1 : CONTRACT ADMINISTRATION PRIMARY PURPOSES

ENSURE THAT CONTRACTORFULFILLS HIS OBLIGATIONS

UNDER THE CONTRACT

ENSURE THAT EMPLOYERSPOSITION ADEQUATELY

PROTECTED AGAINST VARIOUSCLAIMS

ENSURE WORKS

SATISFACTORILYCOMPLETED WITHINORIGINAL CONTRACT PERIOD

AND PRICE

ENSURE THAT EMPLOYERFULFILLS HIS OBLIGATIONS

UNDER THE CONTRACT

ENSURE THAT NEEDS/OBLIGATIONS OF CONTRACT

ADMINISTRATOR UNDERCONTRACT/STATUTE

ADEQUATELY FULFILLED

ENSURE THAT EMPLOYERFULFILS HIS

STATUTORY/LOCALAUTHORITY REQUIREMENTS


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FIG. 4-2 : CONTRACT ADMINISTRATORS COMMON DESIGNATIONS

HSKS

CONTRACTADMINISTRATORS:

COMMONDESIGNATIONS

SUPERINTENDINGOFFICER/ S.O.

CONSTRUCTIONMANAGER

EMPLOYERSREPRESENTATIVE ENGINEER

ARCHITECTPROJECT DIRECTOR

AS TO


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HSKS

CONTRACTADMINISTRATOR:RANGE OF ROLES

PERFORMED

WITH EXPRESSAUTHORITY

AS AN AGENTOF THE EMPLOYER

AS AN ADVISORTO THE EMPLOYER

AS AN INDEPENDENTCONTRACTOR

AS AN INDEPENDENT/IMPARTIAL

ADJUDICATOR

WITH IMPLIED/OSTENSIBLEAUTHORITY

WHERE SUCHWORK

IS REQUIREDPOST-

CONTRACT

FOR MAINLY

DESIGN/DETAILING

WORK

AS TO MATTERSOF COST

AS TO OTHERMATTERS

RIGHTS/ DUTIES UNDERTHE CONTRACT

AS TO DISPUTE

RESOLUTIONAS TO

CERTIFICATION

FIG. 4-3 : CONTRACT ADMINISTRATOR RANGE OF ROLES PERFORMED


55/169

HSKS

CONTRACT ADMINISTRATOR: SOURCES OF DUTIES AND POWERS

TERMS OFREFERENCE OFAPPOINTMENT

IN-HOUSE EMPLOYEE EXTERNAL BODY/PERSON

CONDITIONSOF CONTRACT

BEINGADMINISTERED

CONDITIONSOF

ENGAGEMENT/SERVICES

AGREEMENT

CONDITIONS OFCONTRACT

BEINGADMINISTERED

FIG. 4-4 : CONTRACT ADMINISTRATOR SOURCES OF DUTIES AND POWERS


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HSKS

FIG. 4-5 : CONTRACT ADMINISTRATORS REPRESENTATIVES/ASSISTANTS - TYPICALEXAMPLES

CONTRACT ADMINISTRATORSREPRESENTATIVES/ ASSISTANTS:

TYPICAL EXAMPLES

ARCHITECT

ELECTRICAL ENGINEER

PROJECT MANAGER STRUCTURAL ENGINEER

SPECIALISTCONSULTANT CIVIL ENGINEER

QUANTITY SURVEYOR MECHANICAL ENGINEER

PROGRESS MONITORINGOVERALL SUPERVISION


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HSKS

FIG. 4-6: CONTRACT ADMINISTRATORS PRINCIPAL DUTIES FOR TRADITIONAL GENERALCONTRACTS

CONTRACT ADMINISTRATORS PRINCIPAL DUTIES FORTRADITIONAL GENERAL CONTRACTS

OVERSEEING TRAINING OF EMPLOYERSO & M PERSONNEL

ADVISING EMPLOYER

ORDERING VARIATIONS

PARTICIPATING IN PREPARATION OF MIGRATION/FACILITIES MANAGEMENT PLANS CLOSING-OFF CONTRACT

PARTICIPATING IN TESTING AND COMMISSIONING

ISSUING INFORMATION,DRAWINGS, DETAILS, ETC.

ADMINISTRATION OF PAYMENTS

GRANTING APPROVALS, CONSENTS, ETC.

NOMINATING SUB-CONTRACTORS, ETC.

ISSUING RELEVANT INSTRUCTIONS

INSPECTIONS OF WORKS

MONITORING

RECTIFICATION OF DEFECTS

OVERSEEING COMPLETION &HANDING OVER OF WORKS

PREPARING FINAL ACCOUNT

CHECKING AND APPROVING O & M MANUALS &AS-BUILT DRAWINGS

ISSUING NECESSARY REPORTS

MONITORING SERVICING AND MAINTENANCE


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HSKS

FIG. 4-7 : FORMS OF SUPERVISION COMMON LABELS

FORMS OF SUPERVISION:COMMON LABELS

FULL-TIME SUPERVISION

PART-TIME SUPERVISION

NOMINAL SUPERVISION STANDINGSUPERVISION

PERIODIC SUPERVISION CONSTANT SUPERVISION


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FIG. 4-8 : SUPERVISION/INSPECTIONS OVERVIEW (PART I)

HSKS

TYPICALTYPICALTYPICALTYPICALCLAUSES INCLAUSES INCLAUSES INCLAUSES IN

AGREEMENTSAGREEMENTSAGREEMENTSAGREEMENTS

TYPICALTYPICALTYPICALTYPICALCLAUSES INCLAUSES INCLAUSES INCLAUSES IN

AGREEMENTSAGREEMENTSAGREEMENTSAGREEMENTS

SUPERVISION/INSPECTIONS: OVERVIEW (PART I)

NATURENATURENATURENATUREAND MEANINGAND MEANINGAND MEANINGAND MEANING

NATURENATURENATURENATUREAND MEANINGAND MEANINGAND MEANINGAND MEANING

PURPOSESPURPOSESPURPOSESPURPOSESPURPOSESPURPOSESPURPOSESPURPOSESTYPICALTYPICALTYPICALTYPICAL

PROVISIONS INPROVISIONS INPROVISIONS INPROVISIONS INBYBYBYBY----LAWSLAWSLAWSLAWS

TYPICALTYPICALTYPICALTYPICALPROVISIONS INPROVISIONS INPROVISIONS INPROVISIONS IN

BYBYBYBY----LAWSLAWSLAWSLAWS

Terms used synonymously

See Newey Js definition

Distinction: Inspection imposes alesser duty: William Tompkinsonv St. Michael in the Hamlet.

In absence of express provisionsto contrary courts imply a duty ofsupervision:Alexander Corfield vDavid Grant.

Malaysia: Statutory provisions

necessitate supervision

Building (Federal Territory ofKuala Lumpur) By-Laws 1985:

1. By-Law 6: Supervision of

Works

2. By-Law 23(1): Certificate ForOccupation

By-Law 5(1) City of KualaLumpur (Earthworks) By-Laws1975

Engineers Agreement:

1. Clause 8.1 and 8.7 BEMForm (1999)

Architects Agreement

1. Clause 5(4)(iv) Part II:Architects (Scale ofMinimum Fees)(Amendment) Rules 1992

2. Clause 9 Conditions ofEngagement of Architect

See Keatings definition inBuilding Contracts

Three fold purpose:

1. To ensure contractorcarries out work inaccordance with contract.

2. To enable contractadministrator to dischargehis obligations to employer.

3. To enable contract

administrator to meet hisstatutory obligations

SUPERVISION/INSPECTIONS OVERVIEW (PART II)


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FIG. 4-9 : SUPERVISION/INSPECTIONS OVERVIEW (PART II)

HSKS

DURATIONDURATIONDURATIONDURATIONDURATIONDURATIONDURATIONDURATION

SUPERVISION/INSPECTIONS: OVERVIEW (PART II)

RESIDENTRESIDENTRESIDENTRESIDENTSITE STAFFSITE STAFFSITE STAFFSITE STAFFRESIDENTRESIDENTRESIDENTRESIDENT

SITE STAFFSITE STAFFSITE STAFFSITE STAFF LIABILITIESLIABILITIESLIABILITIESLIABILITIESLIABILITIESLIABILITIESLIABILITIESLIABILITIES

LEVEL OFLEVEL OFLEVEL OFLEVEL OFSUPERVISIONSUPERVISIONSUPERVISIONSUPERVISION

REQUIREDREQUIREDREQUIREDREQUIRED

LEVEL OFLEVEL OFLEVEL OFLEVEL OFSUPERVISIONSUPERVISIONSUPERVISIONSUPERVISION

REQUIREDREQUIREDREQUIREDREQUIRED

Necessity for Resident SiteStaff (RSS)

Typical examples:

1. Resident architect/engineer2. Clerk-of-works.3. Other relevant staff

Engagement:

1. By employer; or2. By contract administrator

Powers and duties determinedby engineering/constructioncontract being administeredand/or letter of delegation ofpower.

Responsibilities of:

1. RSS2. Contract Administrator

Determined by:1. Conditions of engagement

2. Applicable statutoryprovisions e.g. By-Laws

Prevailing Forms:

1. Category I: Full-time/Standing/ Constantsupervision

2. Category II: Part-Time/Periodic Supervision

3. Category III: NominalSupervision

Legal Position:

1. Must be reasonable forworks involved

2. Must be sufficient to checkthe important elements

3. Adequate to meet statutoryrequirements

4. Sufficient to meetobligations of engagement

Determining factors:1. Nature of works under

contract

2. Conditions of engagement

Normal periods:

1. Up to issue of PracticalCompletion; or

2. Up to application of certificate

for occupation; or3. Up to issue of Certificate of

Making Good Defects

Common practice is up to issue ofCertificate of Making GoodDefects

Primary responsibility forsupervision: contractors.See East Ham Corp. vBernard Sunley.

Heads of liabilities of contractadministrator for defaults/breaches:

1. Contractual2. In tort3. Statutory

Position of contractadministrators who areprofessional engineers,architects, etc.


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FIG. 4-10 : CONTRACT ADMINISTRATORS LIABILITIES AN OVERVIEW (PART I)

HSKS

HEADS OF LIABILITIESHEADS OF LIABILITIESHEADS OF LIABILITIESHEADS OF LIABILITIESHEADS OF LIABILITIESHEADS OF LIABILITIESHEADS OF LIABILITIESHEADS OF LIABILITIES

CONTRACT ADMINISTRATORS LIABILITIES: AN OVERVIEW (PART I)

LEGAL KNOWLEDGELEGAL KNOWLEDGELEGAL KNOWLEDGELEGAL KNOWLEDGEAND PERSONAL DUTYAND PERSONAL DUTYAND PERSONAL DUTYAND PERSONAL DUTYLEGAL KNOWLEDGELEGAL KNOWLEDGELEGAL KNOWLEDGELEGAL KNOWLEDGE

AND PERSONAL DUTYAND PERSONAL DUTYAND PERSONAL DUTYAND PERSONAL DUTY

STANDARD OF CARESTANDARD OF CARESTANDARD OF CARESTANDARD OF CARESTANDARD OF CARESTANDARD OF CARESTANDARD OF CARESTANDARD OF CAREGENERAL POSITIONGENERAL POSITIONGENERAL POSITIONGENERAL POSITIONGENERAL POSITIONGENERAL POSITIONGENERAL POSITIONGENERAL POSITION

General position: Required to haveknowledge of all legal mattersrelating to work being undertaken

Nature of matters.

Consequences of failure

Duty is personal and non-delegable

Action by employer under termsof contract of engagement

If no express terms, implied bylaw

Contract of engagement:

1. Standard forms, or2. Bespoke Forms

Three main categories:1. Contractual2. Tortious3. Statutory

Characteristics:

1. Not distinct/mutually exclusive

2. Concurrent/complementary

3. Choice of option on aggrieved part

CONTRACTUALCONTRACTUALCONTRACTUALCONTRACTUALLIABILITYLIABILITYLIABILITYLIABILITY

CONTRACTUALCONTRACTUALCONTRACTUALCONTRACTUALLIABILITYLIABILITYLIABILITYLIABILITY

Prove no validexpress/implied contractof engagement

If there is such validcontract prove:

1. Contract didnt imposeparticular duty breachof which claimed, or

2. Service actuallyrendered was of thestandard reasonablyexpected under thecircumstances

EFFECT OF BREACHEFFECT OF BREACHEFFECT OF BREACHEFFECT OF BREACHEFFECT OF BREACHEFFECT OF BREACHEFFECT OF BREACHEFFECT OF BREACH

Two options available toemployer:

1. Rescind contract and sue for

damages; or2. Affirm contract and sue for

damages

Right of election of optionbelongs to employer

Duty of care owed to employer

Usually to use reasonable skilland care

Duty and standard of care either:

1. Expressed in contract ofengagement, or

2. Implied by law

DEFENCESDEFENCESDEFENCESDEFENCESDEFENCESDEFENCESDEFENCESDEFENCES

CONTRACT ADMINISTRATORS LIABILITIES: AN OVERVIEW (PART II)


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FIG. 4-11 : CONTRACT ADMINISTRATORS LIABILITIES AN OVERVIEW (PART II)

HSKS

TORTIOUS LIABILITYTORTIOUS LIABILITYTORTIOUS LIABILITYTORTIOUS LIABILITY

REASONABLEREASONABLEREASONABLEREASONABLESKILL & CARESKILL & CARESKILL & CARESKILL & CAREDEFINITIONDEFINITIONDEFINITIONDEFINITION

BASICBASICBASICBASICELEMENTSELEMENTSELEMENTSELEMENTS

STANDARDSTANDARDSTANDARDSTANDARD

OF CAREOF CAREOF CAREOF CARE

ESTABLISHINGESTABLISHINGESTABLISHINGESTABLISHINGLIABILITYLIABILITYLIABILITYLIABILITY DEFENCESDEFENCESDEFENCESDEFENCES

LIABILITY TOLIABILITY TOLIABILITY TOLIABILITY TO3333RDRDRDRD PARTIESPARTIESPARTIESPARTIES

Laid down inDonoghue vStevenson

Neighbourhoodprinciple

Important elements:

1. Causation2. Forseeability

D owed P duty ofcare

D breached this duty

Consequence: Psufferedloss/damage

Loss/damagesuffered not remote

CONTRACT ADMINISTRATOR S LIABILITIES: AN OVERVIEW (PART II)

Duty of care in tort of negligence concurrentwith contractual duty: Brown v Boorman

Common Forms:

1. Acts/omissions2. Mis-statements

GENERAL POSITIONGENERAL POSITIONGENERAL POSITIONGENERAL POSITION NEGLIGENCENEGLIGENCENEGLIGENCENEGLIGENCE

Application of theBolam Test

Use of ReasonableMan test

Use by MalaysianCourts

2 Categories:

1. Reasonableskill & care

2. Fitness forpurpose

Criterion: Objective

Less onerous

Use of standardsprevailing at time ofdefault

Proscribe use ofhindsight

See Eckersly vBinnie & Partners

Per Hunter vHenley

1. There is a usualand normalpractice

2. D did not adoptthe practice

3. Practice

adopted by Dwould not beadopted byanotherreasonable D

Need to satisfy all 3element on balanceof probabilities

Only 3 types:

1. Deny existence ofduty of care

2. Prove claim madenot of typecurrentlyrecognized

3. Show service

rendered meetsBolam Test

No immunity to suit:Sutcliffe v Thackrah

Situation per PureEconomic Loss

No liability tocontractor

Possibleexceptions:See Para 5.9B5.


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FIG. 4-12 : CONTRACT ADMINISTRATORS LIABILITIES AN OVERVIEW (PART III)

HSKS

STATUTORY LIABILITYSTATUTORY LIABILITYSTATUTORY LIABILITYSTATUTORY LIABILITYSTATUTORY LIABILITYSTATUTORY LIABILITYSTATUTORY LIABILITYSTATUTORY LIABILITY

For professional contractadministrator

Under specific Acts ofParliament

Possible sanctions:1. Fine2. Suspension3. Cancellation of

registration

Liability under various By-Laws e.g. UBBL, etc.

Penalties/sanctions stipulatedin the By-Laws

PROFESSIONALPROFESSIONALPROFESSIONALPROFESSIONALLIABILITYLIABILITYLIABILITYLIABILITY

PROFESSIONALPROFESSIONALPROFESSIONALPROFESSIONALLIABILITYLIABILITYLIABILITYLIABILITY

CONTRACT ADMINISTRATORS LIABILITIES: AN OVERVIEW (PART III)

Various Acts of Parliamentapplicable

Principal example: S71 Street,Drainage & Building Act 1974

Penalty for mis-supervision, etc.

GENERAL POSITIONGENERAL POSITIONGENERAL POSITIONGENERAL POSITIONGENERAL POSITIONGENERAL POSITIONGENERAL POSITIONGENERAL POSITION DIRECTDIRECTDIRECTDIRECTSTATUTORY LIABILITYSTATUTORY LIABILITYSTATUTORY LIABILITYSTATUTORY LIABILITY

DIRECTDIRECTDIRECTDIRECTSTATUTORY LIABILITYSTATUTORY LIABILITYSTATUTORY LIABILITYSTATUTORY LIABILITY

In addition to Contractual andTortious Liability

Various sub-heads:

1. Direct statutory liability2. Under delegated legislation3. Professional liability

LIABILITIES UNDERLIABILITIES UNDERLIABILITIES UNDERLIABILITIES UNDERDELEGATEDDELEGATEDDELEGATEDDELEGATED

LEGISLATIONLEGISLATIONLEGISLATIONLEGISLATION

LIABILITIES UNDERLIABILITIES UNDERLIABILITIES UNDERLIABILITIES UNDERDELEGATEDDELEGATEDDELEGATEDDELEGATED

LEGISLATIONLEGISLATIONLEGISLATIONLEGISLATION


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PAYMENTS/

COMMERCIAL MATTERS

5.0 PAYMENTS/COMMERCIAL MATTERS


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LEGAL OBLIGATION OF EMPLOYERLEGAL OBLIGATION OF EMPLOYERLEGAL OBLIGATION OF EMPLOYERLEGAL OBLIGATION OF EMPLOYER

PAYMENT TO MAIN CONTRACTOR/TURNKEY CONTRACTORPAYMENT TO MAIN CONTRACTOR/TURNKEY CONTRACTORPAYMENT TO MAIN CONTRACTOR/TURNKEY CONTRACTORPAYMENT TO MAIN CONTRACTOR/TURNKEY CONTRACTOR

PAYMENT TO SUBPAYMENT TO SUBPAYMENT TO SUBPAYMENT TO SUB----CONTRACTORSCONTRACTORSCONTRACTORSCONTRACTORS

BACK TO BACKBACK TO BACKBACK TO BACKBACK TO BACK PAYMENTSPAYMENTSPAYMENTSPAYMENTS

BREACHES IN PAYMENT OBLIGATIONSBREACHES IN PAYMENT OBLIGATIONSBREACHES IN PAYMENT OBLIGATIONSBREACHES IN PAYMENT OBLIGATIONS


SUTCLIFFE V THACKRAH[1974] 1 ALL ER 319

* CROUDACE LTD. V THE LONDON BOROUGH OF LAMBETH[1986] 33 BLR 20

* GUNUNG BAYU SDN. BHD. V SYARIKAT PEMBINAAN PERLIS SDN. BHD. [1987] 2 MLJ 332

* HAJI ABU KASSIM V TEGAP CONSTRUCTION SDN. BHD. [1981] 2 MLJ 149

* KAH SENG CONSTRUCTION SDN. BHD. V SELSIN DEVELOPMENT SDN. BHD. [1997] 1 CLJ

SUPP 448

* YONG MOK HIN V UNITED MALAY STATES SUGAR INDUSTRIES LTD. [1966] 2 MLJ 286

* JALLCON (M) SDN. BHD. V NIKKON METAL (M) SDN. BHD. (No. 2) [2001] 5 MLJ 716, HC.

HSKS

PROCEDURES AND CONDITIONSPRECEDENT


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PAYMENT: ASPECTS OF CONTRACTORSENTITLEMENTS/EMPLOYERS OBLIGATIONS

TIMING ENFORCEMENT/HONOURING

PRECEDENT

QUANTUM/AMOUNT SET-OFF/DEDUCTIONS

FIG. 5-1: PAYMENTS ASPECTS OF CONTRACTORS ENTITLEMENT/EMPLOYERS OLIGATIONS

TIMING OF PAYMENT TO CONTRACTOR PRINCIPAL SCHEMES/SCHEDULES


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HSKS

FIG. 5-2 : TIMING OF PAYMENT TO CONTRACTOR PRINCIPAL SCHEMES/SCHEDULES

PERIODIC SCHEDULEPERIODIC SCHEDULEPERIODIC SCHEDULEPERIODIC SCHEDULEDURING CURRENCYDURING CURRENCYDURING CURRENCYDURING CURRENCYOF THE CONTRACTOF THE CONTRACTOF THE CONTRACTOF THE CONTRACT

TIMING OF PAYMENT TO CONTRACTOR: PRINCIPAL SCHEMES/SCHEDULES

STAGES/MILESTONESTAGES/MILESTONESTAGES/MILESTONESTAGES/MILESTONEPAYMENTPAYMENTPAYMENTPAYMENT

ADVANCE PAYMENTADVANCE PAYMENTADVANCE PAYMENTADVANCE PAYMENT

PERIODIC SCHEDULEPERIODIC SCHEDULEPERIODIC SCHEDULEPERIODIC SCHEDULEAFTER COMPLETION/AFTER COMPLETION/AFTER COMPLETION/AFTER COMPLETION/END OF CONTRACTEND OF CONTRACTEND OF CONTRACTEND OF CONTRACT

AFTER COMPLETION/AFTER COMPLETION/AFTER COMPLETION/AFTER COMPLETION/END OF CONTRACTEND OF CONTRACTEND OF CONTRACTEND OF CONTRACT

AFTER ISSUE OFAFTER ISSUE OFAFTER ISSUE OFAFTER ISSUE OFFINAL CERTIFICATEFINAL CERTIFICATEFINAL CERTIFICATEFINAL CERTIFICATE

AFTERAFTERAFTERAFTERISSUE OF CPCISSUE OF CPCISSUE OF CPCISSUE OF CPC

FINANCIALFINANCIALFINANCIALFINANCIALPHYSICAL WORKSPHYSICAL WORKSPHYSICAL WORKSPHYSICAL WORKS

OF WHOLEOF WHOLEOF WHOLEOF WHOLECONTRACT SUMCONTRACT SUMCONTRACT SUMCONTRACT SUM

OF PART OFOF PART OFOF PART OFOF PART OFCONTRACT SUMCONTRACT SUMCONTRACT SUMCONTRACT SUM

AFTER ISSUEAFTER ISSUEAFTER ISSUEAFTER ISSUEOF CPCOF CPCOF CPCOF CPC

AFTER ISSUE OFAFTER ISSUE OFAFTER ISSUE OFAFTER ISSUE OFFINAL CERTIFICATEFINAL CERTIFICATEFINAL CERTIFICATEFINAL CERTIFICATE

MISCELLANEOUS/MISCELLANEOUS/MISCELLANEOUS/MISCELLANEOUS/METHODSMETHODSMETHODSMETHODS

START


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Are they includedin the Project ProceduresManual?

No

Contract administrator to issueformal record of issues agreed

upon by all relevant parties

A

Yes

Contract administrator toresolve all preliminary issues

Have these beensorted- out following award of

contract?

Yes

Yes

Have thesebeen formalized by all the

parties?

No

No

Are the preliminarymatters expressly stipulated

in the contract?

Yes

No

All relevant partiesto take necessary steps to

implement issues

Contract administratorto take necessaryaction forthwith

FIG. 5-3: FLOWCHART ON GENERAL PROCEDURE FOR PROCESSING OF PAYMENTS (PART I)

HSKS

A


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Has heexecuted any physicalwork?

Yes

C

No

Establish if the contractorhas fulfilled his firstpre-condition to payment

Contract administratornot obliged to initiatethe progress payment

Has hedelivered materials to

site?

Yes

Yes

Does the contractcontain an express termthereto?

No

Has the contractorcommenced with the work

under the contract?No

Yes

Prima facie, contractormay be entitled to payment

Establish if it is necessaryfor the contractor to apply for

the required payment

Contractor notentitled to any

payment

D

No

B

FIG. 5-4: FLOWCHART ON GENERAL PROCEDURE FOR PROCESSING OF PAYMENTS (PART II)

HSKS

DCB


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GE F

Has themethod for valuation been

confirmed?

Yes

Have theparties involved been

identified?

Yes

Yes

Have therelevant pre-conditions beenfulfilled?

Yes

Contract administrator to proceedwith the next stage i.e. valuation

Has thedate of valuation been

reached?

Yes

Is it mandatory?

No Contractor maynot be entitled topayment untilhe satisfies

pre-conditions

Hascontractor complied with

requirements?

Yes

No

Contractor notobliged to apply

NoDeficiencies/omissionsto be addressed

forthwith to enableprocess to continue

Contract administratorobliged to initiate

process on his ownvolition

No

No Prima facie, valuation

may not be initiateduntil achievementof necessaryrequirements

No

FIG. 5-5: FLOWCHART ON GENERAL PROCEDURE FOR PROCESSING OF PAYMENTS (PART III)

HSKS

F GE


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IH KJ

Valuation of works to be carried

out jointly by the relevant parties

Valuers to prepare a valuation report

Does thecontractor agree with the valuation?

Does he officiallyregister his protest with

valuers?

Do the valuersconsider the objections

protest?

Do theyagree with the

objections?

Valuers may revise/amendthe valuation as necessary

Valuers to endorse/sign offthe valuation report prepared

Does hesign off the

valuation report?

Valuation deemed to havebeen accepted by the

contractor

Contractor may protest tothe certifier if necessary

Does theContractor

protest to thecertifier?

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

FIG. 5-6: FLOWCHART ON GENERAL PROCEDURE FOR PROCESSING OF PAYMENTS (PART IV)

HSKS

KJH I

V l ti t t th ith


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M ON

L

Valuation report together withall other necessary documents to

be submitted to the certifier

Certifier to carry out preliminary reviews

Is the valuationreport complete, sufficient and

accurate?

Has thecontractor any valid grounds

for objecting?

Certifier not to considerobjections any further

Is the datefor certification

imminent?

Has the stipulatedminimum value of work been exceeded?

Certifier to proceed with thenecessary certification procedures

Certifier to takeobjections into

consideration beforeundertaking certification

Certifier may exercisehis discretion in

undertaking certification

Should inhis discretion a

certificate beissued?

Certifier to clarify/discuss deficiencies/omissions with the

valuers

Deficiencies/omissions maycompromise the

certification

Certifier has no discretion tocarry out certification

Yes

Yes

Yes

Yes

Yes

No

No

NoNo

No

FIG. 5-7: FLOWCHART ON GENERAL PROCEDURE FOR PROCESSING OF PAYMENTS(PART V)

HSKS

OM L N


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SP TQ

-

R

Is the 1st Interim Certificate due?

Have allthe stipulated pre-conditions been met?

Is thesubsequent Interim Certificate

due?

Have allthe relevant pre-conditions been met?

Certifier to proceed withpreparation of Interim Certificate

Is there astandard form of certificate prescribed?

Has a bespoke form been generated?

Certifier to develop an ad hoc formmeeting the necessary criteria/contents

requirements

Utilize the formunless foundnot suitable

Prima facie,certificate cannot

be issued

Use thestandard formas prescribed

No

No

No

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

FIG. 5-8: FLOWCHART ON GENERAL PROCEDURE FOR PROCESSING OF PAYMENTS (PART VI)

HSKS

TRP SQ

Certifier to fill in all details


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XU V W

Certifier to fill in all detailscompletely, sufficiently and

correctly in certificate

Are thereany NSCs/Nominated

Suppliers?

Arethere any official

assignees?

Areall procedural requirements met?

Are

all formal requirementsmet?

Is the signatory anauthorized person under the

contract?

Have all therelevant checks for errors,etc. been undertaken?

Certificate may bechallenged as invalid and

unenforceable, if andwhen issued

Amount certifiedfor such partiesto be indicated

separately in certificate

Deficiencies/ errors maycompromise validity ofcertificate

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

FIG. 5-9: FLOWCHART ON GENERAL PROCEDURE FOR PROCESSING OF PAYMENTS (PART VII)

HSKS

XVU W

C d i i CA to rectify


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ABY AAZ

Contract administrator to

issue relevant certificate

Is there acertification period stipulated

in the contract?

Is certificateissued within the said

period?

Is the recipientof the original copy

stipulated?

Is the certificateissued to the stipulated

person?

Are copiesissued to the relevant

parties?

Is the serviceof certificate formally

evidenced?

Prima facie, employer maybe in breach of contract.

Contractor may takeappropriate action for

employers breach

Contractor tobe furnished with

original copy

CA to rectifydeficiencies/errors

as soon as possible

Certificate to be issuedwithin a reasonable timeof application/ valuation

Default in service mayconstitute a breach of

contract on employers part.To be corrected/ rectifiedforthwith

Relevant parties have aright to demand the

necessary copies fromcontract administrator

No

No

No

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

FIG. 5-10: FLOWCHART ON GENERAL PROCEDURE FOR PROCESSING OF PAYMENTS (PART VIII)

HSKS

ABAAY Z


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-

AFAC AEAD

Establish the specific post-

certification requirements

Do therecipients formally

acknowledge receipt ofdocument?

Is presentationof certificate stipulated in the

contract?

Is there aperiod stipulated for the

presentation?

Is presentationformally effected within this

period?

Does employerformally acknowledges receipt

of the certificate fromcontractor?

Employer to reviewcertificate for validity

Contractormay present

certificate withina reasonable

period of receipt

Omission toacknowledge may

lead to future evidentialproblems

Contract administrator

to procure saidacknowledgements assoon as possible

Delay may postponeemployers obligation to

honour certificate

Omission to acknowledge maylead to future evidential

problems and may affect thehonouring of certificate

Contractor to procuresaid acknowledgement

as soon as possible

No

No

No

No

No

Yes

Yes

Yes

Yes

Yes

FIG. 5-11: FLOWCHART ON GENERAL PROCEDURE FOR PROCESSING OF PAYMENTS (PART IX)

HSKS

AFAEAC AD

Are Employer may challenge


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-

-

there grounds forchallenging validity of

certificate?

Employer to proceed with honouringcertificate issued/ presented (as

applicable)

Are there anyset-offs/deductions to be

made?

Are theseexpressly permitted by the

contract?

Has the

amount certified less the set-offs/ deduction beenestablished?

Has the finalsum due been paid to the

contractor?

Has this been done in thestipulated honouring

period?

STOP

Employer mustpay amountas certified

to the contractor

Employer to determine amount

due before the stipulatedhonouring period lapses

Employer may challengecertificate and refuse to

honour it citing therelevant grounds

Employer culpableof breach of contract.

Contractor to takeappropriate action.

No

No

No

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

FIG. 5-12: FLOWCHART ON GENERAL PROCEDURE FOR PROCESSING OF PAYMENTS (PART X)

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RECOVERY OF THE UNPAIDAMOUNT


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DEFAULT IN PAYMENT:TYPICAL CONTRACTUAL

REMEDIES

FIG. 5-13 : DEFAULT IN PAYMENT - TYPICAL CONTRACTUAL REMEDIES

RIGHT TO SUSPEND WORK

MISCELLANEOUSREMEDIES

INTEREST ON THEUNPAID AMOUNT

RIGHT TO DETERMINEEMPLOYMENT UNDER

CONTRACT

RIGHT TO REDUCE RATEOF EXECUTING WORK

CERTIFICATE WRONG ON ITS FACE

CERTIFICATE FUNDAMENTALLY INACCURATE


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INTERIM CERTIFICATES:TYPICAL CHALLENGES

CERTIFICATE FUNDAMENTALLY INACCURATE

CERTIFICATE NOT IN CORRECT FORM

CERTIFICATE ISSUED BY UNAUTHORISED PERSON

CERTIFICATE ISSUED IN UNAUTHORISED MANNER

CERTIFICATE ISSUED OUT OF TIME

CERTIFIER ACTING ULTRA VIRES

CERTIFIER IMPROPERLY PRESSURIZED/INFLUENCED

CERTIFICATE SUBJECT TO FRAUD/COLLUSION

FRAUD, DISHONESTY/FRAUDULENT CONCEALMENT BY CONTRACTOR

MISCELLANEOUS CHALLENGES

FIG. 5-14: INTERIM CERTIFICATES TYPICAL CHALLENGES

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DIRECT PAYMENT BY THEEMPLOYER


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PAYMENT TO SUB-CONTRACTORS:PRINCIPAL METHODS

PAYMENT UPON CERTIFICATION CONTINGENT PAYMENT

FIG. 5-15 : PAYMENT TO SUB-CONTRACTORS PRINICPAL METHODS

-

START

Sub-Contractor (SC) forwards details of amount SC to make fresh submission in the


81/169

A

-

claimed to Main Contractor (MC) officially

Is it withinthe prescribed time

limits?

MC to includeSCs details in his claim

MC to submit consolidated claimto the Contract Administrator (CA)

CA to carry out the necessary valuation

CA to issue interimpayment certificate to MC

Employer to pay certified amount toMC within the Honouring Period

Establish if there is aContingent Payment Type IIclause in the sub-contract

next application

Does theMC accept thesubmission?

YesYes

No

No

FIG. 5-16: FLOWCHART ON GENERAL PROCEDURE FOR TYPE II CONTINGENT PAYMENT (PART I)

HSKS

A

Is there No


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STOP

such a clause in thecontract?

Is theperiod for payment

stated?

Does the MCpay the SC within thesaid period?

SC to pursue the remediesavailable under the contract

Are thereany contractual remediesavailable?

Is therean arbitrationagreement?

SC to pursue his commonlaw remedies if necessary

MC may pay SC withina reasonable time of receipt of

monies from the Employer

SC to initiate the contractualremedies as applicable

SC to initiate the Arbitrationprocess if necessary

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

FIG. 5-17: FLOWCHART ON GENERAL PROCEDURE FOR TYPE II CONTINGENT PAYMENTS(PART II)

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PAYMENT IN PACKAGE DEAL TYPES OF CONTRACTS: AN OVERVIEW


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CONTRACT SUMANALYSIS

CONTRACT SUMANALYSIS

QUANTITIESQUANTITIES MEASUREMENTMEASUREMENT

For Tender Analysis

For Interim Payment

Valuation ofChanges/

Provisional Sums

For any PriceAdjustment

SITUATIONSWHERE USED

SITUATIONSWHERE USED ACCURACYACCURACY

PURPOSEPURPOSE DRAFTINGDRAFTING

Normally byContractor

Samples may begiven by Employer

in EmployersRequirements

ERRORS/OMISSIONS

ERRORS/OMISSIONS PREPARATIONPREPARATION

Contractor responsible

If Employer prepares,risk for errors/omissionsnormally passed on toContractor

EXPRESSPROVISIONS

EXPRESSPROVISIONS

STRUCTURESTRUCTURE

Given in some Formse.g. JCT 98, PWDForm DB/T, etc.

Required for:

1. Overall Works2. Sections or

Phases

GENERALPOSITION

GENERALPOSITION

Effect ofmeasurementexpresslystipulated in

some forms Mostly deals with

patent errors

As based onLump Sum anddue to nature ofcontract

No requirementfor measurement

Changes/V.O.s

UnforeseenConditions

Included in mostStandard Forms

E.g. Clause 55(1) ICE,Clause 13.1(d) FIDIC, etc.

Risk on Contractor

E.g. Clause 55(2) ICEForm

GENERALPOSITION

GENERALPOSITION

Whenever used, effectnot similar to TGC

Are deemed to be onlyestimates

FIG. 5-18 : PAYMENT IN PACKAGE DEAL TYPES OF CONTRACTS: AN OVERVIEW

FINAL AMOUNT TO WHICHCONTRACTOR ENTITLED TO UNDER

THE CONTRACT


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FINAL ACCOUNT: PRINCIPAL CONTENTS

FINAL ADJUSTMENTS TOTHE CONTRACT SUM

FINAL AMOUNT (SET OFFS/DEDUCTIONS) TO WHICH

EMPLOYER ENTITLED TO UNDERTHE CONTRACT

FIG. 5-19 : FINAL ACCOUNT PRINCIPAL CONTENTS

APPROVED VARIATIONSTO THE CONTRACT


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ADJUSTMENT TO THECONTRACT SUM: TYPICAL

HEADS/ITEMS

REMEASUREMENT OFPROVISIONALITEMS/WORK

ADJUSTMENT FOR PRICEFLUCTUATION, ETC.

PERMITTED COSTS FORTESTING, OPENING UP OF

WORK, ETC.

MISCELLANEOUSADJUSTMENTS APPROVED

CONTRACTORS CLAIMS

ADJUSTMENT FOR P.C.SUMS/ PROVISIONAL

SUMS

FEES AND CHARGES FORPERMANENT

CONNECTIONS

FIG. 5-20 : ADJUSTMENT TO THE CONTRACT SUM TYPICAL HEADS/ITEMS


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VARIATIONS/CHANGES

6.0 VARIATIONS/CHANGES

WHAT CONSTITUTESWHAT CONSTITUTESWHAT CONSTITUTESWHAT CONSTITUTES VARIATIONS/CHANGESVARIATIONS/CHANGESVARIATIONS/CHANGESVARIATIONS/CHANGES


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WHAT CONSTITUTESWHAT CONSTITUTESWHAT CONSTITUTESWHAT CONSTITUTES VARIATIONS/CHANGESVARIATIONS/CHANGESVARIATIONS/CHANGESVARIATIONS/CHANGES

ISSUES AS TO VALIDITYISSUES AS TO VALIDITYISSUES AS TO VALIDITYISSUES AS TO VALIDITY

PROBLEMS WITH VARIATIONSPROBLEMS WITH VARIATIONSPROBLEMS WITH VARIATIONSPROBLEMS WITH VARIATIONS

INVALID VARIATION ORDERS AND EFFECTSINVALID VARIATION ORDERS AND EFFECTSINVALID VARIATION ORDERS AND EFFECTSINVALID VARIATION ORDERS AND EFFECTS

LIMITATIONS OF VARIATIONSLIMITATIONS OF VARIATIONSLIMITATIONS OF VARIATIONSLIMITATIONS OF VARIATIONS


* SHARPE V SAN PAULO RAILWAY[1873] L.R. 8 CH. APP. 597

* RE CHITTICK & TAYLOR[1954] 12 WWR 653

* MITSUI CONSTRUCTION CO. LTD. V A.G. OF HONG KONG[1986] 33 BLR 1

* CARR V JA BERRIMAN PTY LTD. [1953] 27 A.L.J.R. 273

* COMMISSIONER FOR MAIN ROADS V REED & STUART PTY LTD. & ANOR[1974] A.L.J.R.461

* SIR LINDSAY PARKINSON & CO. LTD. V COMMISSIONERS OF HIS MAJESTYS WORKSAND PUBLIC BUILDINGS[1950] 1 ALL ER 2008

* ANTARA ELEKTRIK SDN. BHD. V BELL & ORDER BHD[2002] 3 MLJ 321, HC.

HSKS

VARIATIONS


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HSKS

FIG. 6-1: VARIATIONS: OVERVIEW

TYPESFACTORS DETERMINING

A VALID V.O.

OMISSIONADDITION

FORMALITIES

ISSUE BYDESIGNATED

OFFICER

PROCEDURALREQUIREMENTS

EXPRESS CONTRACTCONDITIONSAPPLICABLE

HYBRID

LEGAL NATURE OFPROPOSED CHANGE

APPLICABLECOMMON

LAW RULES

CHANGE TO BE IN RELATIONTO SCOPE OF THE WORK


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HSKS

CHANGES/VARIATIONS: BASIC ELEMENTS

A CHANGE BEING EFFECTED

SCOPE OF WORK BEINGCHANGED MUST BE AS

EXPRESSLY OR IMPLIEDLY

CONTAINED IN CONTRACTDOCUMENTS

FIG. 6-2 : CHANGES/VARIATIONS BASIC ELEMENTS

INCREASE/DECREASE

QUANTITY OF

WORK

OMIT

WORK


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FIG. 6-3: VARIATIONS - TYPICAL EXAMPLES

HSKS

WORK WORK

CHANGEDIMENSIONS OF

WORK

CHANGESEQUENCE OF

WORK

CHANGECHARACTER OF

WORK

CHANGEKIND OF WORK

CHANGE POSITIONOF WORK

CHANGE TIMINGOF WORK

ACTIVITIES

EXECUTEADDITIONAL WORK

OF ANY KIND

VARIATIONS:VARIATIONS:VARIATIONS:VARIATIONS:TYPICALTYPICALTYPICALTYPICAL

EXAMPLESEXAMPLESEXAMPLESEXAMPLES

CHANGE QUALITYOF WORK

CHANGE LEVELSOF WORK

ADDITIONS HYBRID

OMISSIONS


91/169

ACCORDING TO IDENTITY

OF INITIATOR OF CHANGE

ACCORDING TO

CONSEQUENCES/EFFECTOF THE CHANGE

ACCORDING TO NATUREOF THE CHANGE

EMPLOYERCONTRACT

ADMINISTRATORFINANCIAL

CONSIDERATIONSCOMBINATION

OF BOTH

TIME IMPLICATIONS

CONTRACTOR NSC

FIG. 6-4: TYPES OF VARIATIONS MAIN METHODS OF CLASSIFICATION

HSKS

TYPES OF VARIATIONS:

MAIN METHODS OF CLASSIFICATION

CHANGES INEMPLOYERS

REQUIREMENTS

DEFECTIVE

DRAWINGS


92/169

HSKS

REQUIREMENTS DRAWINGS

WRONG/NEGLIGENT ADVICEFROM CONTRACTADMINISTRATOR

MAL-ADMINISTRATION

OF CONTRACT

DEFECTIVESPECIFICATIONS

CHANGES DUE

TO STATUTORY/LEGISLATIVE

CHANGES

INTEFERENCEBY EMPLOYER

ITEMS

CONSTITUTINGVARIATIONS

DEFECTIVECONTRACT

DOCUMENTS

DIFFERENCESBETWEEN BILLED

AND ACTUALQUANTITIES

FIG. 6-5: ITEMS CONSTITUTING VARIATIONS

WHAT CONSTITUTES VARIATION WORKS


93/169

HSKS

LEGAL POSITIONLEGAL POSITIONLEGAL POSITIONLEGAL POSITIONLEGAL POSITIONLEGAL POSITIONLEGAL POSITIONLEGAL POSITIONCONTRACTS BASED ONCONTRACTS BASED ONCONTRACTS BASED ONCONTRACTS BASED ON

DRAWINGSDRAWINGSDRAWINGSDRAWINGSAND SPECIFICATIONSAND SPECIFICATIONSAND SPECIFICATIONSAND SPECIFICATIONS

CONTRACTS BASED ONCONTRACTS BASED ONCONTRACTS BASED ONCONTRACTS BASED ONDRAWINGSDRAWINGSDRAWINGSDRAWINGS

AND SPECIFICATIONSAND SPECIFICATIONSAND SPECIFICATIONSAND SPECIFICATIONS

VARIATION TESTVARIATION TESTVARIATION TESTVARIATION TEST

PER RE:PER RE:PER RE:PER RE:CHITTICK & TAYLOR

VARIATION TESTVARIATION TESTVARIATION TESTVARIATION TESTPER RE:PER RE:PER RE:PER RE:

CHITTICK & TAYLOR

contract administration for construction & engineering contracts - 1

Documents

commencement of contract

harbans singh

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mech spore

post completion

end of day

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