Dr Khairuddin Abdul Rashid

Session 2
PWD Form DB/T (2002)
Articles of Agreement
Conditions of Contract
Clause 1 – 15

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Prepared by a Technical
Committee set up in 1996

Chair – JKR

Members – representatives
from JKR, JPS, DBKL, JPN,
KKR, Treasury and MAMPU

1st – 2000

2nd Edition – 2002

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Contents

Articles of Agreement
 First to Fourth Recital
 Article 1 to 4

Conditions of Contract
 Clause 1 to 58
 Special Conditions Clause
59 to 62

Appendices

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Subsidiary forms

Form of Tender PWD Form

DB/T-A2002

Addendum No 1 (Amendments
no. 1 to 10)

Addendum No 2 (Amendments
no. 1 to 25) for Deferred
Payment only

Also a guide on the use of the form

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Salient points

Old concepts
Turnkey – contractor design &
supervise
D & B – contractor design,
JKR supervise

New concepts
Turnkey – contractor design,
supervise & equipt
D & B – contractor design &
supervise

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Salient points

Design bond no longer required

DLP 24 months

30% Bumi participation

Bumi consultants only if project value
<RM50 m

Bumi + Non-Bumi JV of local
consultants if project value >RM50 m

Direct payment to contractor’s
consultants

Used when:
No expertise in JKR
Specialist design
Emergency

Requires Treasury’s approval if to be
called on direct negotiation or selective
tender

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Articles of Agreement

 Contract No / Expenditure
 Date of signing
 Parties – Government & the
contractor
 1st Recital – project title
 2nd Recital – Contractor’s
Proposal
 3rd Recital – Contract Sum
Analysis
 4th Recital – meeting the
Government’s requirements

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Articles of Agreement

 Article 1 – Contractor agrees to

design and construct
 Article 2 – Government agrees
to pay … Contract Sum
 Article 3 – Government’s
requirements, the Contractor’s
Proposal, the Contract Sum
Analysis, the Contract
Schedule of Rates… signed
and appended

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Articles of Agreement
 Article 4 – Contract documents

i. Articles of Agreement
ii. Conditions of Contract and
Appendices
iii. Government’s Requirements
iv. Contractor’s Proposal
v. Contract Sum Analysis
vi. Schedule of Rates
vii. Form of Tender
viii. Letter of Acceptance

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Articles of Agreement

 Signature of parties

i. Contractor and witness

ii. Government and witness

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 1

Interpretation, definitions

Reference to clauses of the
conditions

Documents read as a whole

Definitions – see Cl. 1.3 (a) to (r),
p1-3

New sub-clauses (s) to (x) on
‘deferred payment’

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 2 Contractor’s Obligations
Key obligations

Cl. 2.1(a) Design, construct

and complete the works

Cl. 2.2 Fully responsible for
the design, execution and
maintenance and guarantee
the Government

Cl. 2.3.2 Novation

Cl. 2.4.1 QA System

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 2 Contractor’s Obligations
Key obligations
Cl. 2.7.1 Care of the works up to
Practical Completion or Partial
Occupation subject to Cl. 2.7.2
(a) to (f) ‘excepted risks’

Cl. 2.9 Employ local, regd
consultants (PD’s consent)

Cl. 2.10 Engage Bumiputera as
sub-contractors (30% [40%] of
CS)

Cl. 2.11 Submit programme

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 3 PD’s Rights to Take
Action

Cl. 3 (i) any matter related to:

 Cl. 40 (mutual termination)
 Cl. 45 (Delay and EoT)
 Cl. 54 (Determination)
 Cl. 55 (War or Earthquake) or
 Cl. 56 (Arbitration)
is reserved for the Officer
named in Appendix 1

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract

Clause 3 (ii) PD’s rights to
issue instructions requiring a
variation under Cl. 27.2 is
subject to the financial limits as
set out in Appendix 1

(Treasury Instructions 202)

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 4 PD’s Instructions

Cl 4.3 must be in writing

Cl. 4.1 Contractor shall comply
in 7 days… see Cl 4.2 (non-
compliance), Cl. 27.1
(contractor object with reasons)

Cl. 4.2 If within 7 days, the
contractor fails to comply, PD
may employ and pay others
(deduct monies due to the
contractor)

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 5 Notices

Cl. 5 Written notices to be left

at the contractor’s office on
site, to be confirmed by his PM
or send to contractor’s place of
business

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 6 Contract Documents

Cl. 6.1 PD keeps the original

copy, contractor keeps the
duplicate copy

Cl. 6.2 Contractor submit 8
certified copies, Cl 6.3 2 copies
of drawings, etc, Cl. 6.4 one
copy of contract documents
keep at the site

Cl. 6.5 On completion
contractor to submit as built
drawings

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 7 Sufficiency of Contract
Documents

Cl. 7.1 Contractor to provide

everything necessary…

Cl. 7.2 the Articles of
Agreement, the Conditions and
the Appendices shall prevail
over other documents… any
ambiguity/discrepancy to refer
to PD, contractor to rectify at
his own cost

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 7 Sufficiency of Contract
Documents

Cl. 7.3.1 (a) and (b) Documents

are mutually explanatory…
between the Government’s
Requirements and the
Contractor’s Proposal, the
former prevails

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 8 Materials, Goods and
Workmanship

Cl. 8.1 the works shall be in

accordance to the contract

Cl. 8.4 contractor to carry out
checks and tests

Cl 8.5 PD may issue
instructions to remove from the
site or rectify any work,
materials… not in accordance
to the contract

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 9 Restriction and Procedure
on Use of Imported Materials
and Goods

Cl. 9.1 Malaysian materials and

goods only

Cl. 9.2 Imported materials, etc
can only be used if approved
by the Government

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 10 Construction Plan,
Equipment, Vehicles and
Machineries

The contractor is responsible and

shall pay all port dues, prepare
and submit all documents and
abide by the requirements of
the relevant authorities, pay all
charges and expenses and
supply a list to the PD

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 11 Non-removal of
Materials and Equipment on
Site

Equipment, temporary works,

materials… intended for the
works can only be removed
from the site with the written
consent of the PD

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 12 Statutory obligations,
notices, fees and charges

Cl. 12.1.1 The contractor shall

comply with statutory
requirements

Cl. 12.2 The Contractor shall
pay/indemnify the Government
against liability of any fees,
charges…

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 12 Statutory obligations,
notices, fees and charges

Cl. 12.1.2 Divergence to be

brought to attention; the
contractor shall propose
amendments (in case of
emergency see Cl. 12.1.3) and
with the PD’s consent carry out
the works at his own cost
(subject to Cl. 12.3)

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 12 Statutory obligations,
notices, fees and charges

Cl. 12.3.1 and 12.3.2 Variation

in the statutory requirements /
conformity with terms of an
authority’s approval after date
of tender leading to amendment
to contractor’s proposal is
treated as an instruction of the
PD affecting a Variation under
Cl. 27.2

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 13 Custom Dues and
Taxation

Cl. 13.1 – 13.3 The contractor

to pay all duties and taxes and
make arrangement for their
employees to pay income tax

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 14 Antiquities

Cl. 14.1 found on the site

becomes the property of the
Government. The contractor
shall not disturb, preserve the
findings, and inform the PD

Cl. 14.2 PD shall issue
instruction

Cl. 14.3 Compliance with 14.2
may lead to reimbursement for
loss and or/expense

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Dr Khairuddin Abdul Rashid

PWD Form DB/T 2002

Conditions of Contract
Clause 15 Copyright, royalties and
patent rights

Cl. 15.1 The contractor is

responsible for payment of all
royalties or other sums … of
any patented articles, etc in
respect of the works other than
those provided by the PD

Cl 15.2 Issue on patent that
arises due to PD’s instruction,
the sum added to the contract

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Dr Khairuddin Abdul Rashid

End of Session 2

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