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Session 5
PWD Form DB/T (2002)
Conditions of Contract
Clause 46 – 62
1
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 46 Procedure for Claims
2
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 47 Testing and
Commissioning of M/E and
other Services
3
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 48 Defects After
Completion
DLP = 24 months
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
4
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 48 Defects After
Completion
5
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 49 Unfulfilled Obligations
6
Dr Khairuddin Abdul Rashid
Conditions of Contract
Salient points (amendments) on
payments
Schedule payment
Payment based on valuation of
works
Deferred payment
To be determined by the PD
before tender is called
7
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 50 Interim Payments
8
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 50 Interim Payments
9
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 50 Interim Payments
10
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 50.3 (a) Schedule
Contractor’s application
14 days
OK?
Yes NO
11
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 50.3 (b) No schedule
Contractor’s application
28 days
PD issue
interim certificate
pays within
30 days (Cl. 50.3(c)
12
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 50.3 (c) Honoring of
interim certificates = 30 days
from issue of the same
13
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 51 Final Account and Final
Certificate
14
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 51 Final Account and Final
Certificate
CCMGD or CCM
3 months
15
Dr Khairuddin Abdul Rashid
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
16
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 52 Effects of PD’s
Certificate
17
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 53 Deduction from Money
Due to Contractor
18
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 54.1 Determination of
Contractor’s Employment
Determination if the contractor
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
19
Dr Khairuddin Abdul Rashid
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
20
Dr Khairuddin Abdul Rashid
Conditions of Contract
To continue? To suspend? To
terminate?... Settled by mutual
agreement or Arbitration
21
Dr Khairuddin Abdul Rashid
Conditions of Contract
Clause 56 Arbitration
22
Dr Khairuddin Abdul Rashid
Conditions of Contract
23
Dr Khairuddin Abdul Rashid
Special Conditions
Clause 59 Maintenance
24
Dr Khairuddin Abdul Rashid
Special Conditions
Clause 60 Direct Payments and
Consultancy Agreement with
Contractor’s Consultants
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
25
Dr Khairuddin Abdul Rashid
Special Conditions
Clause 61 Bills of Quantities
26
Dr Khairuddin Abdul Rashid
Special Conditions
Clause 62 Advance Payment
27
Dr Khairuddin Abdul Rashid
Special Conditions
Clause 62 Advance Payment
28
Dr Khairuddin Abdul Rashid
Special Conditions
Clause 62 Advance Payment
29
Dr Khairuddin Abdul Rashid
Conditions of Contract
Deferred payment [Amendments]
Cl. 50 Interim Valuations and
Interim Payments
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
30
Dr Khairuddin Abdul Rashid
Conditions of Contract
Deferred payment [Amendments]
Monthly interim payments are
deferred until CPC
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%
31
Dr Khairuddin Abdul Rashid
Conditions of Contract
Deferred payment
There will be monthly interim
valuation & payments
Direct payments to Bumi
organizations
Direct payments to
consultants
Contractor to submit claims
for payments
PD issue interim valuation
certificate within 28 days
32
Dr Khairuddin Abdul Rashid
Conditions of Contract
Deferred payment
Lender (the bank) will
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.
33
Dr Khairuddin Abdul Rashid
End of Session 5
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