GOVERNMENT OF MALAYSIA
STANDARD FORM OF
CONDITIONS OF CONTRACT
FOR DESIGN & BUILD AND TURNKEY PROJECTS
(PWD FORM DB/T)
GENERAL CONDITIONS OF CONTRACT
Table of Contents
Clause Page
ARTICLES OF AGREEMENT AA/1
CONDITIONS OF CONTRACT
1. Interpretation, definitions, etc. 1 1.1 Method of reference to Clauses 1
1.2 Articles etc. to be read as a whole 1
1.3 Definitions 1
1.4 Singular and Plural Terms 3
1.5 Marginal Headings or Notes 3
2. Contractor's Obligations 3
2.1 Contractor’s General Obligation 3
2.2 Design Guarantee 3
2.3.1 Any reference to Contractor's design to include design
proposed by others. 4
2.3.2 Contractor’s Design Responsibility 4
2.4.1 Quality Assurance 4
2.4.2 Contractors’ duties, etc not relieved 4
2.5 Statutory Checks 4
2.6 Contractor responsible for safety 4
2.7.1 Care of the works. 4
2.7.2 Excepted Risks 5
2.8.1 Duties of the Contractor to inform of any accident,
and failure etc. 6
2.8.2 No remedial works by the Contractor unless directed. 6 2.8.3 Contractor to render necessary assistance 6
Table Of Contents (Cont'd)
Clause Page
2.9.1 Employment of Consultants 7
2.9.2 Proposed Consultants 7
2.9.3 Employment of Consultants with the consent of the P.D. 7 2.10.1 Bumiputera Participation 7
2.10.2 List of Bumiputera organization 7
2.10.3 Default by Contractor 8
2.10.4 Contractor’s obligations unchanged 8 2.11.1 Programmed of works to be furnished 8
2.11.2 Action by the P.D. 8
2.11.3 Modified Programmed or Further Information 9 2.11.4 Programmed to be Revised 9 2.11.5 Contractor to remain responsible 9
3. P.D.'s right to take action 10
Officer empowered to act on behalf of Government and to approve variations 10
4. P.D.'s Instructions 10
4.1 Compliance with P.D.'s instructions 10 4.2 Action of P.D. in the event of non-compliance with instructions 10 4.3 P.D.'s instruction to be in writing 10
5. Notices 11
Table of Contents (Cont'd)
Clause Page
6.4 Availability of documents on site. 11 6.5 Supply by Contractor of `as built' drawings etc. 11
6.6 Use of documents 12
6.7 Contractor's plans and specifications to use S.I. Units. 12 7. Sufficiency of Contract Documents 12 7.1 Contractor to provide everything necessary 12
7.2 Conditions to prevail 12
7.3.1 Discrepancies 12
7.3.2 Discrepancies within Contractor’s Proposals 13 8. Materials, goods and workmanship 13
8.1 Standards and Codes of Practice 13 8.2 Quality of materials, goods and workmanship 13 8.3 Vouchers of materials and goods 13
8.4 Checks and Tests 13
8.5 Removal from Site - work, materials or goods 14
8.6 Tests 14
8.7 Cost of tests 14
8.8 Further tests 14
9. Restriction and Procedure on Use of Imported
Materials and Goods 15 9.1 Contractor to use materials of Malaysian Origin 15 9.2 Substitution of imported materials etc. with local materials 15 9.3 Procurement based on FOB and use of
Government’s MTO 15
Table of Contents (Cont'd)
Clause Page
10. Construction Plant, Equipment, Vehicles and Machineries 16
10.1 Payment of Port Dues 16
10.2 Administration of Customs Authorities 16
10.3 Importation by Agent 16
10.4 Application of custom duties 16
10.5 Landing Charges 16
10.6 Customs Clearance 16
10.7 Contractor to Supply Information 16
11. Non -removal of Materials and Equipment on site 17 12. Statutory obligation, notices, fees and charges 17 12.1 Statutory Requirements 17
12.1.1 Compliance with Statutory Requirements 17 12.1.2 Divergence between Statutory Requirements and Contract Documents 17 12.1.3 Emergency Compliance with Statutory Requirement 17 12.2 Fees, charges, rates or taxes 18 12.3.1 Effects of changes in Statutory Requirements after date of tender 18 12.3.2 Changes in Statutory Requirements requiring amendments
to Contractor’s Proposals 18
13. Custom Dues and Taxation 18
13.1 Custom Dues 18
13.2 Payment of tax on profit 18 13.3 Payment of Income Tax by non-Malaysian Personnel 19
14. Antiquities 19
Table of Contents (Cont'd)
Clause Page
15. Copyright, royalties and patent rights 19 15.1 Treatment of royalties’ etc., indemnity to Government 19 15.2 P.D.'s instructions, treatment of royalties etc. 20 15.3 Payment of royalties, etc. 20 16. Site boundaries and setting out 20
17. Inspection of Site 21 18. Employment of Workmen 21 18.1 Malaysian citizens 21 18.2 Ratio of workmen 21 18.3 Particulars of labor 21 18.4 Source of labor 22 18.5 Sub-contractors to comply 22 19. Compliance with Employment Act 1955 etc. 22 20. Epidemics and Medical Attendance 22
20.1 Epidemic 22
20.2 Medical attendance 22
21 Days and hours of working 23
21.1 Days and hours of working 23 21.2 Contractor to bear costs 23 22. Contractor's Project Manager 23
Table of Contents (Cont'd)
Clause Page
25. Discharge of Workmen 24
26. Access for P.D. to the Works 24
27. Variations 25
27.1 Definition 25
27.2 Instructed variation 25
27.3 Variations for the purpose of suitability, functionality and safety 26 27.4 Cost to be borne by Contractor 26 27.5 Contractor’s obligations unchanged 26 28. Valuation of Variations 26 28.1 Valuation of instructed Variation 26 28.2 Valuation of omission of work 26 28.3 Allowance for site administration etc. 26
28.4 Day works 26
28.5 Variation by Contractor affecting other works 27
28.6 Fair Valuation 27
28.7 No allowance to be made for loss or expense 27 28.8 Adjustment of Contract Sum 27
29. Provisional Sums 28
29.1 Definition 28
29.2 Adjustment of Contract Sum in respect of Provisional Sums 28
30. Contract Sum 28
30.1 Adjustment of Contract Sum to be in accordance with the Conditions 28 30.2 Adjustment of Contract Sum to be accounted for in the Interim Payments 28
Table of Contents (Cont'd)
Clause Page
31. Sub-letting and Assignment 28
31.1 Sub-letting of design 28
31.2 Sub-letting of Works 29
31.3 Determination of Sub-contract 29 31.4 Employment of Sub-Contractor 29
31.5 Assignment of benefit 29
32. Artists and Tradesmen 29
33. Government's Indemnity in respect of Injury to Persons and
Damage to Property 30
33.1 Injury to persons 30
33.2 Damages to Property 30
33.3 Negligence of Government or P.D. 30
34. Insurance against Injury to Persons and damage to Property 30 34.1 Insurance for personal injury or damage to property 30 34.2 Insurance Liability etc. of Government 31
34.3 Production of Policies 31
34.4 Default in insuring 31
35. Indemnities to Government in respect of claims by Workmen 32 36. Employees Social Security Act, 1969 32
36.1 Registration with SOCSO Scheme 32
36.2 Payment of Contribution 32
Table of Contents (Cont'd)
Clause Page
37. Insurance of Works 33
37.1 Risks to be insured 33
37.2 Production of policies 33 37.3 Default in renewing insurance 33 37.4 Application of insurance money 33
38. Performance Bond 34
38.1 a) Condition precedent and validity of Banker’s/Insurance Guarantee 34 b) Performance Guarantee Sum in lieu of Banker’s/Insurance Guarantee 34
38.2 Application 34
38.3 Release of Performance Bond 34
38.4 Forfeiture 34
39. Possession of Site 35
39.1 Condition precedent to commencement of work 35
39.2 Date for possession 35
39.3 Possession by stages 35
39.4 Delay in giving possession of whole, sections or parts of the Site 35 39.5 a) Delay in giving possession of whole of the Site beyond ninety (90) days 35
b) Delay in giving possession of section or parts of the site beyond ninety (90)
days 36
39.6 Postponement 36
40. Mutual Termination
Table of Contents (Cont'd)
Clause Page
40.2 Removal and disposal of Contractor’s Equipment etc. 37
40.3 Payment on Termination 37
40.4 Works practically completed 38 40.5 Final account upon termination 38 40.6 Contract to Continue in force 38
41. Completion of the Works 38
41.1 Date of completion 38
41.2 Certificate of Practical Completion 38 41.3 Time, the essence of Contract 38
42. Damages for non-completion 38
42.1 Damages for Non-completion and written notification to the Contractor 38 42.2 Reimbursement of Liquidated Damages 39 42.3 Intervention of Variations 39
43. Sectional completion 39
44. Partial Occupation/Taking over by Government 40 (a) Certificate of Partial Occupation 40
(b) Defects Liability 40
(c) Certificate of Completion of Making Good Defects 40
(d) Insurance of Works 40
Table of Contents (Cont'd)
Clause Page
45. Delay and Extension of Time 41
45.1 Delay and Extension of Time 41 45.2 Claims for Loss and/or Expense due to delay 43
46. Procedure for Claims 43
46.1 Notice of Claims 43
46.2 Submission of claims 43
47. Testing and Commissioning of Mechanical, Electrical and Other Services 44 47.1 Requirements for Testing and Commissioning 44
47.2 Failure to pass tests 44
47.3 Notice of tests 44
47.4 Further Adjustments to Controls 44
47.5 Records of tests 44
47.6 Commissioning of Equipment 44
48. Defects After Completion 45
48.1 Defects Liability Period 45
48.2 Schedules of Defects 45
48.3 Default of the Contractor 45 48.4 Diminution in the value of the Works due to defects etc. 46 48.5 Certificate of Completion of Making Good Defects 46
49. Unfulfilled Obligations 46
50. Interim Payments 46
Table of Contents (Cont'd)
Clause Page
50.3 a) Interim Certificate based on Payment Schedule 47 b) Interim Certificate based on Valuation of Works 48 c) Honoring of Interim Certificate 48 51. Final Account and Final Certificate 49
51.1 Final Account 49
51.2 Final Certificate 49
51.3 Contractor’s delay in submission of final account 49 51.4 Final certificate to be conclusive 49 51.5 Right of deduction by Government 49 51.6 Condition Precedent to Final Payment 49 52. Effect of P.D’s Certificates and Payment by Government 50 53. Deduction from Money Due to Contractor 50 54. Determination of Contractor’ Employment 51
54.1 Defaults of Contractor 51
54.2 Bankruptcy or insolvency 51
54.3 Effect of determination of Contractor’s Employment 52
55. Effect of War or Earthquake 54
56. Arbitration 54
56.1 Reference to the Officer named in Appendix 1 for a decision 54 56.2 Decision of the Officer named in Appendix 1 to be binding
until completion of Works 54
56.3 Reference to the Arbitrator 54 56.4 Reference to Arbitrator shall not be commenced until after
completion of the Works 55
Table of Contents (Cont'd)
Clause Page
56.6 Discretion of the Arbitrator in respect of costs and award 55
56.7 Award of Arbitrator is final 55 56.8 Appointer of Arbitrator 55
56.9 Arbitration Act 1952 55
57. Law Governing this Contract 56
57.1 Malaysian Law 56
57.2 Contractor to accept the decision of Malaysian Court or
Arbitrator 56
57.3 Enforcement of any decision or award in Contractor’s
country of domicile 56
58. Stamp Duty 56
SPECIAL CONDITIONS
*59. Maintenance of Works and Services 57 *60. Direct Payments and Consultancy Agreement with Contractor’s Consultants 58
