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Contract Management Tutorial Guide

This document contains tutorial questions and answers related to contract management. It discusses: 1) The Contractor's ability to seek compensation from the Employer under Section 74 of the Contracts Act for additional costs incurred due to hindrance of regular progress. 2) The prerequisite criteria for a Contractor to succeed in a loss and expense claim under PWD 203A 2010, including notifying the Superintending Officer in writing within 30 days and submitting full supporting documents within 90 days of practical completion. 3) That "excepted risks" under CIDB 2000 refer to war, rebellion, riot, ionizing radiation, and pressure waves caused by aircraft - risks that directly affect the execution of works in

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317 views2 pages

Contract Management Tutorial Guide

This document contains tutorial questions and answers related to contract management. It discusses: 1) The Contractor's ability to seek compensation from the Employer under Section 74 of the Contracts Act for additional costs incurred due to hindrance of regular progress. 2) The prerequisite criteria for a Contractor to succeed in a loss and expense claim under PWD 203A 2010, including notifying the Superintending Officer in writing within 30 days and submitting full supporting documents within 90 days of practical completion. 3) That "excepted risks" under CIDB 2000 refer to war, rebellion, riot, ionizing radiation, and pressure waves caused by aircraft - risks that directly affect the execution of works in

Uploaded by

Yougoige Low
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

FACULTY OF BUILT ENVIRONMENT (FOBE)

BTQS3024 CONTRACT MANAGEMENT TUTORIAL 7

WEEK 7 (2020)

Please answer the following question based on the information from the lecture notes, reference
books or journals.

1. The Employer has hindrance the regular progress at site and caused additional
cost incurred to the Contractor. If the Contractor would like to seek
compensation under common law. Briefly describe the relevant act entitled him
to take action against the Employer.

Answer:
• The Contractor can make a claim for damages under Section 74 of the
Contracts Act against the Employer.

Section 74 provides 2 limbs of damages:

• When a contract has been broken, the party who suffers by the breach
is entitled to receive, from the party who has broken the contract,
compensation for any loss and damage caused to him thereby, which
naturally arose in the usual course of things from the breach; and
• Which the parties knew, when they made the contract, to be likely to
result from the breach of it.

2. Brief discuss the pre-requisite criteria before the Contractor success in his loss
and expense claim under PWD 203A 2010.

Answer:
• By clause 44.1, the Contractor must notify the S.O. in writing his intention
to claim within 30 days from the occurrence of the event.
• The Contractor’s notice must specify his intention claim and the amount
estimate of the loss or expense.
• By clause 44.2, within 90 days from practical completion, the Contractor
must submit full supporting documents.
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FACULTY OF BUILT ENVIRONMENT (FOBE)

3. Explain what do you understand by the “Excepted Risk” under CIDB 2000.

Answer:
Refer to Clause 1.01, the excepted risks occur in Malaysia and directly affected
the execution of the Works:
a.) War, invasion of foreign enemies;
b.) rebellion, revolution;
c.) riot, unless solely restricted to employees of the Contractor;
d.) ionization radiation;
e.) pressure waves caused by aircraft.

4. The Contractor would like to submit a claim on prolongation claim due the delay
caused by the Employer. Briefly explain the format for a well-presented claim
document.

Answer:
A well-presented claim should include the following section:
a.) Introduction
b.) Facts related to the claim;
c.) Contractual basis of the claim;
d.) The details of claim;
e.) The evaluation of the claim.

5. Give your point of view, what are the consequences to the contracting party, if
the clause on ‘loss and/expense” struck off or deleted from the conditions of
contract.

Answer:
• The Contractor is not able to claim for additional costs incurred which not
reimbursed under the Contract.
• The Contractor still can recover his loss and /expense by refer the dispute
to alternative dispute resolution or litigation.
• Both parties have to spend more time and expenses in order to settle the
dispute.
• Possible jeopardize the regular progress of the works.
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