PAM SUB-CONTRACT 20182006

Articles Of Agreement
This Sub-Contract Agreement is made on the .........………… day of. .…….…….................... 20……....…....
between …………….................................................................................. ............…….……...……………………..........................
..................………..........................................................................................................……...…….....…………………………......
of (or whose registered office or business address is situated at)……………………………………………………………………..
....…………………….....................................……....……................................…..…………………………………………………
.............................……………………………….........................................................................…….....…….........................…......
............................................................................................................................................………………………….……..………...
…….………….………………………….......................................................................……... (hereinafter called ‘the Contractor’)
and …………............................…………………………………............................................................................ ...........................
............……..……...................................................................………………………………….........................................................
of (or whose registered office or business address is situated at)…………………………………………………………………..…
...............................................................…………………………...............………………………………………………………….
.......................................................................................................................................………………………………….…………..
……………………………….……………………........................................................ (hereinafter called ‘the Sub -Contractor’).

This Sub-Contract Agreement is made pursuant to the agreement for (*) …………………………………….……………………..
…………………………………………………………………………………………………………………………………………
at ………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………
(hereinafter referred to as ‘the Main Contract’)
made the ………………………....................................... day of …….................................................…........ 20.......................…..
between..................……............................................................…………………………………......................... ...................……...
..............……...……................................................................………………………………….........................................................
of (or whose registered office or business address is situated at)……………………………………………………………………..
………………………………………………………………………………………………………………………………………....
.......................................................................................................................................………………………………….…………..
…………………………….………………………………………… (hereinafter called ‘the Employer’) and the Contractor.

Whereas
The Employer is desirous of (**).....……………………………………………………....................……………………………..
............................................................................................................................................……………….………………………….
............................................................................................................................................……………….…………….……………
(hereinafter called 'the Sub-Contract Works') which forms part of the Main Contract Works and has caused the following
drawings ..................................................................………………………………………………………………………………….
………................................................................................................................. ...........................…………………………………..
..........…….....................................................................................................................................……………….…………………..
(hereinafter referred to as ‘the Sub-Contract Drawings’) and the Sub-Contract Bills to be prepared by his Architect and/or
Consultant.

(*) Brief description of the Main Contract Works.

(**) Brief description of the Sub-Contract Works.

PAM Sub-Contract 20182006 1

Whereas

The Contractor is desirous that the Sub-Contract Works should be executed by the Sub-Contractor and has accepted a tender
from the Sub-Contractor for the execution and completion of the Sub-Contract Works.

The Sub-Contractor has had reasonable opportunity to examine and have full knowledge of the Main Contract (except the
detailed rates and prices).

Now it is hereby agreed as follows:

Article 1

In consideration of the payments to be made by the Contractor to the Sub-Contractor as Sub-Contractor's

hereinafter mentioned, the Sub-Contractor shall carry out and complete the Sub-Contract Obligations
Works in conformity in all respects with the provisions of the Sub-Contract.

Article 2

The Contractor shall pay the Sub-Contractor the sum of Ringgit Malaysia: ………........... Sub-Contract Sum
..................................................…...................................................................................…
…………………………….................................................. (RM )
(hereinafter referred to as ‘the Sub-Contract Sum’) or such other sum as shall become
payable hereunder at the times and in the manner specified in the Sub-Contract.

Article 3

The term ‘the Architect’ in the Sub-Contract shall mean ....…………………………........ Architect
.............................................................................................……………………………….
of........................................................................................................................... ...............
.............................................................................................................................................
....................…………………………………………………………………………...........
or in the event of such Person ceasing to be the Architect for the purpose of the Sub-
Contract, such other Person as the Employer shall appoint within twenty eight (28) Days
therefrom. No Architect so appointed under the Main Contract shall be entitled to
disregard or overrule any certificate or opinion or decision or approval or instruction
given by the preceding Architect.

Article 4

The term ‘the Engineer’ in the Sub-Contract shall mean: Engineer

(a) Structural & Civil Engineer: .......................................................................…………...

……..…………………………………………………………………………………...
of .............………………...............................................................................…………
………………………………………………………………………………………….
………………………………………………………………………………………….

PAM Sub-Contract 20182006 2

(b) Mechanical & Electrical Engineer: ………..............................................…………......
…...……………………………………………………………………………………..
of...........................................................………………..................................…………
……….…………………………………………………………………………………
………………………………………………………………………………………….
or in the event of such Person ceasing to be the Engineer for the purpose of the Sub-
Contract, such other Person as the Employer shall appoint within twenty eight (28) Days
therefrom. The Engineer shall perform the duties expected of his profession, and the
Architect may from time to time delegate such duties and authority of the Architect to the
Engineer as the Architect deems fit.

Article 5

The term ‘the Quantity Surveyor’ in the Sub-Contract shall mean..…………………..... Quantity Surveyor
……...........................................................................................................………………...
of ...............................................................................................…………….…………….
.....................................................................................................………………………….
.....................................................................................................………………………….
or in the event of such Person ceasing to be the Quantity Surveyor for the purpose of the
Sub-Contract, such other Person as the Employer shall appoint within twenty eight (28)
Days therefrom. The Quantity Surveyor shall perform the duties expected of his
profession, and the Architect may from time to time delegate such duties and authority of
the Architect to the Quantity Surveyor as the Architect deems fit.

Article 6

The term ‘the Specialist Consultant’ in the Sub-Contract shall mean: Specialist Consultant

(a) ..……………..................................................................................................................
of........................................................................................................................... .........
..………………………………......................................................................................
..………………………………......................................................................................

(b) ..…………….............................................................................................................. ....

of........................................................................................................................... .........
..………………………………......................................................................................
..………………………………......................................................................................

(c) ..……………..................................................................................................................
of....................................................................................................................................
..………………………………......................................................................................
..………………………………......................................................................................
or in the event of such Person ceasing to be the Specialist Consultant for the purpose of
the Sub-Contract, such other Person as the Employer shall appoint within twenty eight
(28) Days therefrom. The Specialist Consultant shall perform the duties expected of his
profession, and the Architect may from time to time delegate such duties and authority of
the Architect to the Specialist Consultant as the Architect deems fit.

PAM Sub-Contract 20182006 3

Article 7

In the Sub-Contract Documents as hereafter defined, the following words and expressions Definitions
shall have the meanings hereby assigned to them, except where the context otherwise
requires:

(a) Appendix means the Appendix to the Sub-Contract Conditions;

(b) Appropriate Authority means any statutory authority having jurisdiction over
the Sub-Contract Works;

(c) Architect means the Person named in Article 3 and shall be a Professional
Architect or any other form of practice registered under the Architects Act 1967
and approved by the Board of Architects, Malaysia;

(d) Architect’s Instruction or AI - as described in Clause 5.1;

(e) As-built Drawings means as-built drawings for works designed (including
alternative design) by the Nominated Sub-Contractor and any other as-built
drawings required to be provided as specified in the Sub-Contract Documents;

(f) Certificate of Extension of Time means the certificate issued by the Contractor
under Clause 21.5;

(g) Certificate of Non-Completion means the certificate issued by the Contractor

under Clause 16.1;

(h) Certificate of Practical Completion of Nominated Sub-Contract Works means

the certificate issued by the Architect under Clause 17.2;

(i) Clause means the clauses in the Sub-Contract Conditions;

(j) Confirmation of Architect’s Instruction or CAI – as described in Clause 5.1;

(k) Consultant means the Engineer, Quantity Surveyor and/or Specialist Consultant
as appropriate;

(l) Contractor means the party named in the Articles of Agreement and includes the
Contractor’s legal successors or personal representatives or any Person to whom
the rights and obligations of the Contractor have been transferred with the
agreement of the Employer;

(m) Contractor’s All Risks Insurance (‘CAR Insurance’) means an insurance

policy which provides cover against all risks specified in the Main Contract;

(n) Day means calendar day including the weekly day of rest but excluding gazetted
holidays in the location where the Sub-Contract Works is carried out;

(o) Defects means defects, shrinkages or other faults due to materials or

workmanship not in accordance with the Sub-Contract and/or due to faulty
design (if any) undertaken by the Sub-Contractor;

(p) Defects Liability Period means the period stated in the Appendix ‘C’;

(q) Employer means the party named in the Articles of Agreement in the Sub-
Contract and the Main Contract and includes the Employer’s legal successors or
personal representatives or any Person to whom the rights and obligations of the
Employer have been transferred;

(r) Engineer means the Person named in Article 4 and shall be a Professional
Engineer or any other form of practice registered under the Registration of
Engineers Act 1967 and approved by the Board of Engineers, Malaysia;

(s) Final Account means the documents showing the adjustment of the Sub-Contract
Sum issued under Clause 26.7;

PAM Sub-Contract 20182006 4

(t) Force Majeure means any circumstances beyond the control of the Sub-
Contractor caused by terrorist acts, governmental or regulatory action, epidemics
and natural disasters;

(u) Interim Certificate means the progress payment certificate issued by the
Architect under Clause 30.1 of the Main Contract Conditions;

(v) Letter of Appointment means the letter from the Contractor to the Sub-
Contractor accepting him as the Nominated Sub-Contractor;

(w) Main Contract means the agreement between the Employer and Contractor;

(x) Main Contract Conditions means the conditions of the Main Contract;

(y) Main Contract Works means the works described in the Main Contract;

(z) Month means calendar month;

(aa) Performance Bond means the bond required to be provided by the Sub-
Contractor as a security for the due performance of the Sub-Contract under
Clause 32.133.1;

(ab) Period of Honouring Certificates means the period for honouring certificates
stated in the Appendix under Clause 30.1 of the Main Contract Conditions;

(ac) Person means an individual, sole proprietorship, firm (partnership) or body

corporate;

(ad) Practical Completion or Practically Completed means the state of completion

described in Clause 17.1;

(ae) Provisional or Provisional Quantity means the estimated quantities of work

provided in the Sub-Contract Bills for work to be executed or for the supply of
any materials and goods which cannot be determined or detailed at the time;

(af) Quantity Surveyor means the Person named in Article 5 and shall be a
Registered Quantity Surveyor or any other form of practice registered under the
Quantity Surveyors Act 1967 and approved by the Board of Quantity Surveyors,
Malaysia;

(ag) Relevant Event means any one of the events for extension of time set out in
Clause 21.4;

(ah) Retention Fund means the sum retained in accordance with Clause 26.4;

(ai) Service Provider means any company or body authorised to provide water,
electricity, telephonetelecommunication, sewerage and other related services;

(aj) Site means the land and other places on, in, under, over or through which the
Main Contract Works are to be executed and is provided by the Employer for the
purposes of the Main Contract including other land and places obtained by the
Contractor and accepted by the Employer as forming part of the Site;

(ak) Site Agent means the person appointed by the Sub-Contractor under Clause
10.1;

(al) Site Staff means the person appointed by the Employer under Clause 10.1 of the
Main Contract Conditions;

(am) Specialist Consultant means the Person named in Article 6 and such Person
shall be a Specialist Consultant appointed by the Employer for a designated
scope of professional work;

PAM Sub-Contract 20182006 5

(an) Sub-Contract or Sub-Contract Documents comprise the following documents:
(i) the Letter of Appointment by the Contractor;
(ii) the Articles of Agreement;
(iii) the Sub-Contract Conditions;
(iv) the Sub-Contract Drawings;
(v) the Sub-Contract Bills; and
(vi) other documents incorporated in the Sub-Contract Documents, unless
expressly stated to be excluded therefrom;

(ao) Sub-Contract Bills comprise the following documents (as may be applicable):
(i) Instructions to Tenderers;
(ii) Conditions of Tendering;
(iii) Form of Tender;
(iv) Preliminaries;
(v) Preamble and Specification;
(vi) Summary of the Tender (or Sub-Contract Sum);
(vii) Schedule of works and schedule of rates or Bills of Quantities; and
(viii) any other documents specifically mentioned in any of the above
documents;

(ap) Sub-Contract Completion Date means the date(s) for completion agreed by the
Contractor and Sub-Contractor under Clauses 15.1 and 15.2 or the last extended
date granted under Clause 21.6;

(aq) Sub-Contract Conditions means the conditions of the Sub-Contract;

(ar) Sub-Contract Date of Commencement means the date(s) stated in Appendix A

or, if no such date is stated, the date shall be fourteen (14) Days from the date of
the Letter of Appointment;

(as) Sub-Contract Sum means the sum stated in Article 2;

(at) Sub-Contract Works means the works described in the Articles of Agreement
and referred to in the Sub-Contract Documents and includes any changes made to
these works in accordance with the Sub-Contract;

(au) Sub-Contractor means the party named in the second part of the Articles of
Agreement and includes the Sub-Contractor’s legal successors or personal
representatives or any Person to whom the rights and obligations of the Sub-
Contractor have been transferred with the agreement of the Contractor;

(av) Variation means changes made to the Sub-Contract Works as defined under
Clause 12.1; and

(aw) Week means a period of seven (7) consecutive days.

Article 8

In the interpretation of the Sub-Contract, unless the context requires otherwise, the Meanings
following shall apply:

(a) Gender - words of one gender include the other gender, and words denoting
natural persons include corporations and firms and all such words are to be
construed interchangeably in that manner;

(b) Headings and Marginal Notes - the headings and marginal notes in the Sub-
Contract Conditions are not to be taken into consideration in the interpretation or
construction of the of the Sub-Contract Conditions;

(c) Reference to legislation - a reference to any Acts is deemed to include references

to any subsequent amendments, consolidation or replacement of the Acts;

(d) Singular and Plural - words importing the singular also include the plural and
vice versa where the context requires; and

(e) Where any word or phrase is given a defined meaning, any other grammatical form
of that word or phrase has a corresponding meaning.

PAM Sub-Contract 20182006 6

IN WITNESS WHEREOF

* The hand of the Contractor has been hereunto set the day and year ) Signature of Contractor .......................……………..…….
first above written in the presence of: )
) Name .............…………………………..............…………
)
) NRIC No……..............................…………………………
Signature of Witness..............................................................

Name………………………………………………….

NRIC No……..............................…………………………..

* The Common Seal of .........................................................

was hereunto affixed in the presence of:

Signature of Director............................................................. Signature of Director/Secretary*…………………………

Name .................................................................................... Name …...........................................………………………..

NRIC No……..............................………………………….. NRIC No. …………………………………………………..

IN WITNESS WHEREOF
* The hand of the Sub-Contractor has been hereunto set ) Signature of Sub-Contractor...........……………………….
the day and year first above written in the presence of: )
) Name ............................…………………………………..
)
) NRIC No……..............................…………………………
Signature of Witness..............................................................

Name ………………………………………………….…

NRIC No ……..............................…………………………..

* The Common Seal of ........................................................

was hereunto affixed in the presence of:

Signature of Director............................................................. Signature of Director/Secretary*.....…………...…………...

Name .............................................................................. Name …................................................................................

NRIC No ……..............................…………………………. NRIC No. …………………………………………………..

* Delete as appropriate
The affixing of the Common Seal to be witnessed in accordance with the Memorandum & Articles of Association of the Company.

PAM Sub-Contract 20182006 7

 The Sub-Contract Conditions
1.0 Sub-Contractor And Contractor

Sub-Contract 1.1 The Sub-Contract is entered into between the parties as Contractor on the one part and as
pursuant to Sub-Contractor on the other part under Clause 27.0 of the Main Contract Conditions.
Main Contract

Sub- 1.2 The Sub-Contractor shall be deemed to have full knowledge of all the provisions of the
Contractor’s Main Contract except the detailed rates and prices. The Contractor shall make the Main
knowledge of Contract (other than the details of the Contractor’s rates and prices) available for
Main Contract inspection by the Sub-Contractor and if so requested by the Sub-Contractor, shall
provide the Sub-Contractor with a true copy of the Main Contract (without details of the
Contractor’s rates and prices), at the cost of the Sub-Contractor.

Ambiguities 1.3 If there are any ambiguities or inconsistencies between any of the Sub-Contract
between the Conditions and the Main Contract Conditions, the Main Contract Conditions shall
Main and Sub- prevail in order to resolve any such ambiguities or inconsistencies. Where such
Contract ambiguities or inconsistencies relate to the works, materials, goods and workmanship to
be carried out or supplied under the Sub-Contract, the Sub-Contract shall prevail over
the Main Contract.

2.0 Sub-Contractor’s Obligations

Completion of 2.1 The Sub-Contractor shall upon and subject to the Sub-Contract Conditions carry out and
Sub-Contract complete the Sub-Contract Works in accordance with the Sub-Contract Documents and
Works in in compliance therewith provide designs (if any), materials, goods and standards of
accordance with workmanship of the quality and standard described in the Sub-Contract Documents
Sub-Contract and/or required by the Contractor and Architect or Consultant in accordance with the
Documents provisions of the Sub-Contract.

Temporary work 2.2 Unless designed by the Architect or Consultant, the Sub-Contractor shall be fully
and construction responsible for the adequacy, stability and safety of all temporary works and of all
method methods of construction of the Sub-Contract Works, irrespective of any approval by the
Contractor, Architect or Consultant.

Sub- 2.3 If the Sub-Contractor proposes any alternative design to that specified in the Sub-
Contractor’s Contract Works or if the Sub-Contract leaves any matter of design, specification or
design and choice of materials, goods and workmanship to the Sub-Contractor, the Sub-Contractor
responsibilities shall ensure that such works are fit for its purpose. The copyright of the Sub-
Contractor’s design and alternative design belongs to the Sub-Contractor, but the
Contractor and Employer shall be entitled to use the design and alternative design for the
completion, maintenance, repair and future extension of the Main Contract Works. The
acceptance by the Contractor and Architect or Consultant of the Sub-Contractor’s design
and alternative design shall not relieve the Sub-Contractor of his responsibilities under
the Sub-Contract.

Discrepancy or 2.4 The Sub-Contractor shall use the Sub-Contract Documents and any other subsequent
divergence documents issued by the Contractor and Architect to plan the Sub-Contract Works prior
between to execution. If during the said planning and subsequent execution of the Sub-Contract
documents Works, the Sub-Contractor finds any discrepancy in or divergence between any of the
Sub-Contract Documents and any subsequent documents issued by the Contractor and
Architect, he shall give to the Contractor (with a copy to the Architect) a written notice
in sufficient time before commencement of construction of the affected works, specifying
the discrepancy or divergence to enable the Contractor to request the Architect to issue
written instructions within a period which would not materially affect the progress of the
affected works, having regard to the Sub-Contract Completion Date. Such discrepancy or
divergence shall not vitiate the Sub-Contract.

3.0 Sub-Contractor’s Liability Under Incorporated Provisions Of The Main Contract

Sub- 3.1 The Sub-Contractor shall observe, perform and comply with all the provisions of the
Contractor’s Main Contract on the part of the Contractor to be observed, performed and complied
compliance with with, so far as they relate and apply to the Sub-Contract Works.
the Main
Contract

PAM Sub-Contract 20182006 8

Sub-Contractor 3.2 The Sub-Contractor shall execute and complete the Sub-Contract Works so as to enable
to discharge the Contractor to discharge his obligation under the Main Contract.
obligation

Sub-Contractor 3.3 The Sub-Contractor shall indemnify and save harmless the Contractor against and from:
to indemnify the
Contractor 3.3(a) any breach, non-observance or non-performance by the Sub-Contractor, his
servants, agents or sub-contractors of any of the provisions of the Main
Contract; and

3.3(b) any act or omission of the Sub-Contractor, his servants, agents or sub-
contractors which involves the Contractor in any liability to the Employer
under the provisions of the Main Contract.

4.0 Benefits Under The Main Contract

Sub- 4.1 The Contractor shall so far as he lawfully can, at the request of the Sub-Contractor,
Contractor’s obtain for him any rights or benefits under the Main Contract so far as the same are
rights and applicable to the Sub-Contract Works and which are not inconsistent with the express
benefits under terms of the Sub-Contract. Any action taken by the Contractor in compliance with any
Main Contract aforesaid request shall be at the cost of the Sub-Contractor. Subject to the Sub-
Contractor giving the Contractor such indemnity and security as the Contractor may
reasonably require, the Contractor shall allow the Sub-Contractor to use the Contractor’s
name and if necessary join with the Sub-Contractor in any dispute resolution procedure.

5.0 Architect’s Instructions (‘AI’)

AI and CAI 5.1 All instructions issued by the Architect to the Contractor shall be in writing expressly
entitled “Architect’s Instruction” (‘AI’). All other forms of written instructions including
drawings issued by the Architect shall be an AI:

5.1(a) upon written confirmation from the Contractor entitled “Confirmation of

Architect’s Instruction” (‘CAI’); or

5.1(b) upon subsequent confirmation of the written instructions by the Architect

with an AI.

The Contractor shall forthwith issue to the Sub-Contractor all AI and CAI affecting the
Sub-Contract Works and may issue any further direction in writing to the Sub-Contractor
in regards to such AI and CAI. The Sub-Contractor shall forthwith comply with such AI
and CAI and any further directions issued by the Contractor. If the Architect has not
issued an AI, the Sub-Contractor shall request the Contractor to so confirm such
instruction in a CAI to the Architect.

Consent by 5.2 All instructions to the Sub-Contractor shall be issued by the Contractor. However, the
Contractor for Contractor may consent to the Architect issuing any written instruction affecting the
Architect to issue Sub-Contract Works directly to the Sub-Contractor. In that event, the Architect must
AI directly to extend a copy of the written instruction to the Contractor. The Contractor shall, when he
Sub-Contractor considers it appropriate to do so, issue further directions in writing of his own to the
Sub-Contractor. Any consent by the Contractor for the Architect to issue any written
instruction directly to the Sub-Contractor shall be notified in writing by the Contractor to
the Architect and Sub-Contractor.

Provisions 5.3 Upon receipt of a written instruction from the Architect, the Sub-Contractor may require
empowering the Contractor to request the Architect to specify in writing which provision of the Main
instructions Contract Conditions empowers the issuance of the said instruction. The Contractor shall
forthwith comply with any such request and extend to the Sub-Contractor a copy of the
Architect’s response to the Contractor’s request. If the Sub-Contractor thereafter
complies with the said instruction without requesting the Contractor to invoke any
dispute resolution procedure under the Main Contract to establish the Architect’s power
in that regard, the instruction shall be deemed to have been duly given under the
specified provision.

PAM Sub-Contract 20182006 9

 6.0 Sub-Contract Documents And As-built Drawings

Sub-Contract 6.1 The Sub-Contract Documents are to be read as mutually explanatory of one another. In
Documents the event of any conflict or inconsistencies between any of the documents in the Sub-
Contract Documents, the priority in the interpretation of such documents shall be in the
following descending order:

6.1(a) the Letter of Appointment by the Contractor;

6.1(b) the Articles of Agreement;

6.1(c) the Sub-Contract Conditions;

6.1(d) the Sub-Contract Drawings;

6.1(e) the Sub-Contract Bills; and

6.1(f) other documents incorporated in the Sub-Contract Documents, unless

expressly stated to be excluded in any of the Sub-Contract Document.

As-built 6.2 The Sub-Contractor shall supply As-built Drawings and/or operation and maintenance
Drawings and manuals specified in the Sub-Contract Documents in the manner and within the time
operation and specified therein. Where these are not specified, the Sub-Contractor shall supply four (4)
maintenance copies of the above items before the Main Contract Completion Date.
manuals

7.0 Statutory Obligations, Notices, Fees And Charges

Statutory 7.1 The Sub-Contractor shall comply with and submit all notices required by any laws,
requirements regulations, by-laws, terms and conditions of any Appropriate Authority and Service
Provider in respect of the execution of the Sub-Contract Works and all temporary works.

Inconsistencies 7.2 If the Sub-Contractor finds any inconsistencies between the Sub-Contract Documents
with statutory (including any subsequent documents issued by the Architect) and any laws, regulations,
requirements by-laws, terms and conditions of any Appropriate Authority and Service Provider, he
shall immediately specify the inconsistencies and give to the Contractor a written notice
(with a copy to the Architect and Consultant) before commencement of construction of
the affected works.

Conforming to 7.3 If within seven (7) Days of having given written notice to the Contractor (with a copy to
statutory the Architect and Consultant), the Sub-Contractor does not receive any written
obligations instructions in regard to the matters specified in Clause 7.2, he shall proceed with the
work to conform with such laws, regulations, by-laws, terms and conditions of any
Appropriate Authority and Service Provider. Any changes so necessitated shall be
deemed to be a Variation required by the Architect and Consultant.

Fees, levies and 7.4 The Sub-Contractor shall pay and indemnify the Contractor against any liability in
charges respect of any fees, levies and charges including any penalties which may arise from the
Sub-Contractor’s non-compliance with any laws, regulations, by-laws, terms and
conditions of any Appropriate Authority and Service Provider in respect of the execution
of the Sub-Contract Works and all temporary works. If the Sub-Contractor fails to pay,
the Contractor may pay such amount and such amount together with any additional cost
in this connection shall be set-off by the Contractor under Clause 26.13.

8.0 Materials, Goods And Workmanship To Conform To Description, Testing And

Inspection

Provision of 8.1 The Sub-Contractor shall upon the request of the Contractor or Architect, provide them
vouchers with vouchers or such other evidence to prove that the materials and goods comply with
Clause 2.1.

Inspection and 8.2 The Sub-Contractor shall provide samples of materials and goods for testing before
testing incorporation into the Sub-Contract Works. The Contractor (with the consent of the
Architect) or the Architect may issue written instructions requiring the Sub-Contractor to
open up for inspection any work covered up, or to arrange for or carry out any test on
any materials and goods already incorporated in the Sub-Contract Works or of any
executed work. The cost of such opening up or testing together with the cost of making
good shall be added to the Sub-Contract Sum unless:

PAM Sub-Contract 20182006 10

 8.2(a) the cost is provided for in the Sub-Contract Bills;

8.2(b) the inspection or test shows that the works, materials and goods were not in
accordance with the Sub-Contract; or

8.2(c) the inspection or test was in the opinion of the Contractor and Architect
required in consequence of some prior negligence, omission, default and/or
breach of contract by the Sub-Contractor.

Sub- 8.3 The provisions of Clauses 8.1 and 8.2 shall not relieve the Sub-Contractor of his
Contractor’s obligations to execute the work and supply materials and goods in accordance with the
obligation not Sub-Contract.
relieved

Work not in 8.4 If the Contractor finds any work, materials, goods or workmanship to be not in
accordance with accordance with the Sub-Contract, the Contractor shall instruct the Sub-Contractor in
the Sub-Contract writing:

8.4(a) to remove from and not to bring to the Site such materials and goods;

8.4(b) to demolish and reconstruct such work to comply with the Sub-Contract;

8.4(c) to rectify such work as instructed by the Contractor with no adjustment to

the Sub-Contract Sum;

8.4(d) to submit a method statement within seven (7) Days from receipt of the
written instruction (or within such period as may be specified by the
Contractor) proposing how such works, materials, goods or workmanship
can be rectified. If the Contractor accepts the Sub-Contractor’s proposal, the
Sub-Contractor shall carry out the rectification work with no adjustment to
the Sub-Contract Sum or alternatively, the Contractor may reject the
proposal and issue any other written instruction under this clause; or

8.4(e) with the consent of the Employer, to leave all or any such works, materials,
goods or workmanship in the Sub-Contract Works subject to an appropriate
deduction from the Sub-Contract Sum and the Sub-Contractor shall remain
liable for the same.

No compensation 8.5 Compliance by the Sub-Contractor with a written instruction issued under Clause 8.4
for time and cost shall not entitle the Sub-Contractor to an extension of time nor compensation for any
loss and/or expense that may be incurred.

Warranties in 8.6 If the Sub-Contract requires any manufacturer or supplier to give a warranty or guarantee
respect of any in respect of any proprietary systems, materials and goods supplied, the Sub-Contractor
materials and shall procure such warranties or guarantees in time for the Contractor to submit to the
goods Employer. The provision of such warranties or guarantees shall in no way relieve or
release the Sub-Contractor from any liabilities under the Sub-Contract.

9.0 Royalties And Intellectual Property Rights

Indemnity to 9.1 Subject to Clause 9.2, all royalties or other sums payable in respect of the supply and use
Contractor in carrying out the Sub-Contract Works of any articles, processes, inventions or drawings
shall be deemed to have been included in the Sub-Contract Sum. The Sub-Contractor
shall indemnify the Contractor against all claims, proceedings, damages, costs and
expenses which may be brought against the Contractor or to which he may be subjected
to by reason of the Sub-Contractor infringing or being held to have infringed any
intellectual property rights.

Sub- 9.2 Where in compliance with a written instruction, the Sub-Contractor has informed the
Contractor's Contractor and Architect in writing that there may be an infringement of intellectual
liability to pay property rights but the Contractor (with the consent of the Architect) still instructs the
Sub-Contractor in writing to comply, the Sub-Contractor shall not be liable for any
infringement. All royalties, damages or other monies which the Sub-Contractor may be
liable to pay for such infringement shall be added to the Sub-Contract Sum.

Government 9.3 Except where otherwise provided for in the Sub-Contract, the Sub-Contractor shall pay
royalties all Government royalties, levies, rent and all other payments in connection with the Sub-
Contract Works.

PAM Sub-Contract 20182006 11

 10.0 Site Agent

Site Agent 10.1 The Sub-Contractor shall ensure that at all times during the execution of the Sub-
Contract Works, he has on the Site a competent person to be the Site Agent who is
capable of receiving directions or instructions in English or Bahasa Malaysia. The Site
Agent shall be assisted by such assistants and supervisory staff as necessary to execute
the Sub-Contract Works efficiently and satisfactorily. All instructions and directions
given to the Site Agent by the Contractor shall be deemed to have been given to the Sub-
Contractor.

11.0 Access To The Works

Making Site and 11.1 The Contractor shall from time to time make available to the Sub-Contractor such parts
Main Contract of the Site and the Main Contract Works and such means of access as shall be necessary
Works available to enable the Sub-Contractor to execute the Sub-Contract Works, but the Contractor
to Sub- shall not be bound to give to the Sub-Contractor possession or exclusive control of any
Contractor part of the Site or the Main Contract Works.

Access to Sub- 11.2 The Contractor, Architect, Consultant and their authorised representatives shall at all
Contract Works times have reasonable access to the Sub-Contract Works and to the factories, workshops
or other places where any construction plant, materials, goods or work are being
fabricated, prepared or stored for the Sub-Contract.

12.0 Variations

Definition of 12.1 The term “Variation” means the alteration or modification of the design, quality or
Variation quantity of the Sub-Contract Works including:

12.1(a) the addition, omission or substitution of any work;

12.1(b) the alteration of the kind or standard of any materials and goods to be used
in the Sub-Contract Works;

12.1(c) the removal from the Site of any work executed or materials and goods
brought thereon by the Sub-Contractor for the purposes of the Sub-Contract
Works other than work, materials and goods which are not in accordance
with the Sub-Contract; and

12.1(d) any changes to the provisions in the Sub-Contract with regards to:

12.1(d)(i) any limitation of working hours;

12.1(d)(ii) working space;

12.1(d)(iii) access to or utilisation of any specific part of the Site; and

12.1(d)(iv) the execution and completion of the work in any specific

order, and

12.1(d)(v) the execution of temporary works,

but shall exclude any changes intended to rectify any negligence, omission, default
and/or breach of contract by the Sub-Contractor and such changes shall be executed by
the Sub-Contractor entirely at his own cost.

Valuation rules 12.2 The valuation of Variations and work executed by the Sub-Contractor for which a
Provisional Quantity is included in the Sub-Contract and the expenditure of Provisional
Sums shall be made in accordance with the following rules:

12.2(a) where work is of a similar character to, is executed under similar conditions
as, and does not significantly change the quantity of work as set out in the
Sub-Contract Bills, the rates and prices in the Sub-Contract Bills shall
determine the valuation;

PAM Sub-Contract 20182006 12

 12.2(b) where work is of a similar character to work as set out in the Sub-Contract
Bills but is not executed under similar conditions or is executed under
similar conditions but there is a significant change in the quantity of work
carried out, the rates and prices in the Sub-Contract Bills shall be the basis
for determining the valuation which shall include a fair adjustment to take
into account for such difference;

12.2(c) where work is not of a similar character to work as set out in the Sub-
Contract Bills, the valuation shall be at fair market rates and prices
determined by the Architect or Consultant;

12.2(d) where work cannot be properly measured and valued in accordance with
Clause 12.2(a), (b) or (c), the Sub-Contractor shall be allowed:

12.2(d)(i) the daywork rates in the Sub-Contract Bills; or

12.2(d)(ii) where there are no daywork rates in the Sub-Contract Bills,

at the actual cost to the Sub-Contractor of his materials,
additional construction plant and scaffolding, transport and
labour for the work concerned, plus fifteen (15) percent,
which percentage shall include the use of all tools, standing
plant, standing scaffolding, supervision, overheads and
profit.

In either case, vouchers specifying the time spent daily upon the work, the
workers' names, materials, additional construction plant, scaffolding and
transport used shall be signed by the Contractor’s and Sub-Contractor’s Site
Agent and verified by the Site Staff and shall be delivered to the Contractor,
Architect and Consultant at weekly intervals with the final records delivered
not later than fourteen (14) Days after the work has been completed;

12.2(e) the rates and prices in the Sub-Contract Bills shall determine the valuation
of items omitted. If omissions substantially vary the conditions under which
any remaining items of work are carried out, the prices of such remaining
items shall be valued under Clause 12.2(a), (b) or (c); and

12.2(f) in respect of Provisional QuantitiesQuantity, the quantities stated in Sub-

Contract Bills shall be re-measured by the Architect or Consultant based on
the actual quantities executed within sixty (60) Days after the said works are
completed. The rates and prices in the Sub-Contract Bills shall determine
their valuations.

Additional 12.3 Where a Variation has caused or is likely to cause the Sub-Contractor to incur additional
expense caused expenses for which he would not be paid under any provisions in Clause 12.2, the Sub-
by Variation Contractor may make a claim for such additional expenses provided always that:

12.3(a) the Sub-Contractor shall give written notice to the Contractor (with a copy
to the Architect) of his intention to claim for such additional expenses
together with an initial estimate of his claim duly supported with all
necessary calculations. Such notice must be given within twenty one (21)
Days from the date of the AI or CAI giving rise to his claim. The giving of
such written notice shall be a condition precedent to any entitlement to
additional expenses that the Sub-Contractor may have under the Sub-
Contract; and

12.3(b) within twenty eight (28) Days of completing such Variation, the Sub-
Contractor shall send to the Contractor (with a copy to the Architect and
Consultant) complete particulars of his claim for additional expenses
together with all necessary calculations to substantiate his claims. If the
Sub-Contractor fails to submit the required particulars within the stated time
(or within such longer period as may be agreed in writing by the Architect),
it shall be deemed that the Sub-Contractor has waived his rights to any such
additional expenses.

PAM Sub-Contract 20182006 13

Access to Sub- 12.4 The Sub-Contractor shall keep contemporaneous records to substantiate all his claims for
Contractor’s additional expenses under Clause 12.3, and shall submit all particulars to the Contractor
books and (with a copy to the Architect and Consultant). The Contractor, Architect and Consultant
documents shall have access to all books, documents, reports, papers or records in the possession,
custody or control of the Sub-Contractor that are material to the claim and the Sub-
Contractor shall provide free of charge a copy each to the Contractor, Architect and
Consultant when requested. All such documents shall remain available in accordance
with this clause until all claims have been resolved. The Sub-Contractor shall use his
best endeavour to ensure that all such documents in the possession, custody or control of
his sub-contractors and/or suppliers that are material to the claim are similarly available.

Variations and 12.5 As soon as the Architect and/or Consultant have has ascertained the amount of
additional Variations and/or additional expenses claimed by the Sub-Contractor under Clause 12.3,
expenses added the amount so ascertained shall be added to the Sub-Contract Sum. When an Interim
to Sub-Contract Certificate is issued after the date of ascertainment, such amount shall be included in the
Sum certificate.

13.0 Sub-Contract Sum

Sub-Contract 13.1 The Sub-Contract Sum shall not be adjusted or altered in any way whatsoever other than
Sum not to be in accordance with the express provisions of the Sub-Contract. Any arithmetical errors or
adjusted or any errors in the prices and rates shall be corrected and/or rationalised by the Architect
altered or Consultant without any change to the Sub-Contract Sum before the signing of the
Sub-Contract.

14.0 Materials And Goods

Materials and 14.1 Materials and goods delivered to the Site for incorporation into the permanent works
goods not to be shall not be removed until completion of the Sub-Contract Works unless prior consent in
removed writing from the Architect has been obtained, which consent shall not be unreasonably
withheld or delayed.

Materials and 14.2 Where the value of such materials and goods has in accordance with Clause 26.2 been
goods paid for included in any Interim Certificate under which the Employer has effected payment to
become the Contractor, such materials and goods shall become the property of the Employer.
Employer's
property

Warranty of title 14.3 The Sub-Contractor shall be deemed to have warranted that he has title free from
of goods and encumbrances for such materials and goods upon application to the Contractor for the
materials inclusion of the value of such materials and goods in any application for payments under
Clause 26.1. In the event that the Sub-Contractor is found to have made a false warranty,
any loss suffered by the Contractor shall be made good by the Sub-Contractor or shall be
set-off under Clause 26.13.

15.0 Commencement And Completion Of Sub-Contract Works

Commencement 15.1 The Sub-Contractor shall commence the design (if any), fabrication and other off-site
and completion works on the Sub-Contract Date of Commencement and shall regularly and diligently
of Sub-Contract proceed with the on-site work in accordance with the work programme agreed between
Works the Contractor and the Sub-Contractor and to complete the Sub-Contract Works by the
Sub-Contract Completion Date(s) established in such work programme. When the Sub-
Contract Works are completed, the Architect shall issue a Certificate of Practical
Completion.

Sectional 15.2 Where there are different Sub-Contract Completion Dates for sections of the Sub-
completion dates Contract Works stated in Sub-Contract Documents, the Architect shall issue a Certificate
of Sectional Completion when the sections of the works are Practically Completed. The
provisions of the Sub-Contract in regard to the Certificate of Practical Completion,
extension of time, the Defects Liability Period, the release of Retention Fund and
liability for loss and/or expense shall apply with necessary changes as if each such
section was a separate and distinct contract.

PAM Sub-Contract 20182006 14

Sub- 15.3 After the issue of the Letter of Appointment by the Contractor to the Sub-Contractor, the
Contractor’s Contractor and the Sub-Contractor shall agree on a works programme. The agreed works
works programme shall take into consideration the information provided by the Sub-Contractor
programme in the tender submission and any amendments required by the Contractor for compliance
by the Sub-Contractor, to enable the Contractor to complete the Main Contract Works by
the Main Contract completion date. The Sub-Contractor shall without charge to the
Contractor, provide to the Contractor six (6) copies of the agreed works programme. If
the Sub-Contract Works or any part are delayed for whatever reasons, the Contractor
may instruct the Sub-Contractor (with a copy to the Architect) to revise the works
programme, and the Sub-Contractor shall without charge to the Contractor, provide the
Contractor with six (6) copies of the same. The works programme shall not constitute
part of the Sub-Contract, whether physically incorporated or not into the Sub-Contract
Documents. The acceptance by the Contractor of the works programme shall not relieve
the Sub-Contractor of his obligations, duties or responsibilities under the Sub-Contract.
A copy of all the works programme and revised programmes shall be forwarded
forthwith by the Contractor to the Architect and/or Consultant. The works programme
may be used by the Contractor, Architect or Consultant to monitor progress of the Sub-
Contract Works, and the Contractor and Architect is entitled to rely on the works
programme as a basis for the assessment of extension of time and the effect on the
progress of the Sub-Contract Works.

Co-operation, 15.4 The Sub-Contractor acknowledges that the Contractor will have other works on the Site
order and timing carried out by other sub-contractors and craftsmen, tradesmen or others (whether
for carrying out employed by the Contractor or Employer) working concurrently and in close proximity
the Sub-Contract to the Sub-Contractor, and that it is of paramount importance that all works on Site are
Works fully and completely co-ordinated by the Contractor in view of their concurrent and
sequential nature. The Sub-Contractor shall co-operate at all times with those responsible
for carrying out the works on Site and shall abide by all directions of the Contractor as to
the order and timing of carrying out the Sub-Contract Works. In the event of any
disagreement with the Contractor as to the order and timing of carrying out the Sub-
Contract Works, the Sub-Contractor shall as soon as possible inform the Contractor in
writing (with a copy to the Architect) giving reasons for his disagreement, so that the
Contractor can re-adjust his requirement with minimum time and cost repercussion. In
the event of any dispute between the Sub-Contractor and Contractor, the Sub-Contractor
shall refer such dispute to the Architect for a decision. The Architect shall make a
decision within fourteen (14) Days from receipt of all written submissions relating to the
dispute by the parties. If a party disputes the Architect’s decision, he shall nevertheless
be bound by the Architect’s decision during the currency of the Sub-Contract, but shall
give a written notice to the other party within six (6) Weeks from the date of the
Architect’s decision, of his intention to refer the dispute to arbitration. Any arbitration
shall commence only after the completion of the Main Contract Works.

Submission of 15.5 Where the Sub-Contract requires the Sub-Contractor to submit design drawings (if any),
drawings co-ordination, shop or builders’ work drawings for the acceptance by the Architect or
Consultant, the Sub-Contractor shall supply six (6) copies of such drawings to the
Contractor, who shall submit four (4) copies to the Architect or Consultant. The
acceptance by the Architect or Consultant of any such Sub-Contractor’s design or
drawings shall not relieve the Sub-Contractor of his responsibilities under the Sub-
Contract.

16.0 Failure Of Sub-Contractor To Complete On Time

Failure of Sub- 16.1 If the Sub-Contractor fails to complete the Sub-Contract Works by the Sub-Contract
Contractor to Completion Date(s), the Contractor shall issue a Certificate of Non-Completion (with a
complete copy to the Architect and Consultant) stating that in his opinion, the Sub-Contract Works
(or any section of the Sub-Contract Works) ought reasonably so to have been completed.
The Contractor shall then be entitled to set-off a sum for any loss and/or expense
suffered or incurred by the Contractor, after taking into consideration the apportioning of
liability where the delays may also be caused by the Contractor and other Nominated
Sub-Contractors. As an alternative to loss and/or expense, the parties may agree to the
amount of Liquidated Damages stated in Appendix ‘A’. The loss and/or expense or any
Liquidated Damages shall be set-off by the Contractor under Clause 26.13.

PAM Sub-Contract 20182006 15

 17.0 Practical Completion And Defects Liability

Practical 17.1 The Sub-Contract Works are Practically Completed when:

Completion
17.1(a) in the opinion of the Contractor and Architect, the Employer can have full
use of the Sub-Contract Works for their intended purposes, notwithstanding
that there may be works and defects of a minor nature still to be executed
and the Sub-Contractor has given to the Contractor and Architect a written
undertaking to make good and to complete such works and defects within a
reasonable time specified to the Contractor by the Architect; and

17.1(b) other requirements expressly stated in the Sub-Contract Documents as a

pre-requisite for the issuance of the Certificate of Practical Completion have
been complied with.

Certificate of 17.2 When the Sub-Contract Works are Practically Completed, the Sub-Contractor shall
Practical forthwith give a written notice to that effect to the Contractor (with a copy to the
Completion Architect). The Contractor shall immediately send to the Architect (with a copy to the
Sub-Contractor) his written observations on the Sub-Contractor’s application. The
Architect shall within fourteen (14) Days do either one of the following:

17.2(a) if the Architect is of the opinion that the Sub-Contract Works are not
Practically Completed under Clause 17.1, the Architect shall give written
notice to the Contractor (with a copy to the Sub-Contractor) stating the
reasons for his opinion and specifying the works that are incomplete and/or
the conditions that have not been complied with; or

17.2(b) if the Architect is of the opinion that the Sub-Contract Works are Practically
Completed under Clause 17.1, the Architect shall issue the Certificate of
Practical Completion. The date of Practical Completion shall be:

17.2(b)(i) the date of receipt of the Sub-Contractor’s written

undertaking to make good and to complete works and
defects of a minor nature, where there are such works and
defects; or

17.2(b)(ii) the date of receipt of the Sub-Contractor’s written notice,

where there are no works and defects of a minor nature.

The Certificate of Practical Completion shall be issued to the Sub-

Contractor with copies extended to the Contractor and Employer.

Sub- 17.3 Where applicable, the Sub-Contractor shall comply with his undertaking to attend to the
Contractor’s works and defects of a minor nature under Clause 17.1(a) within the specified time. In
failure to comply the event the Sub-Contractor fails to comply with his undertaking the Contractor may
with undertaking without prejudice to any other rights and remedies which he may possess under the Sub-
Contract do any one of the following:

17.3(a) with the consent of the Employer, grant the Sub-Contractor additional ex-
gratia time to be specified by the Architect to enable the Sub-Contractor to
comply with his said undertaking;

17.3(b) employ and pay other Person to execute any work which may be necessary
to give effect to the Sub-Contractor’s said undertaking. All costs incurred
including any loss and/or expense shall be set-off by the Contractor under
Clause 26.13; or

17.3(c) with the consent of the Employer, accept to leave all or any such works and
defects of a minor nature in the Sub-Contract Works subject to an
appropriate set-off under Clause 26.13.

Obligation to 17.4 Upon Practical Completion of the Sub-Contract Works, the Sub-Contractor shall clear
clear out on out and leave the Sub-Contract Works and all areas made available to him.
completion

PAM Sub-Contract 20182006 16

Schedule of 17.5 Any Defects in the Sub-Contract Works which appear within the Defects Liability Period
Defects shall be specified by the Architect or Consultant in a schedule of defects which he shall
deliver to the Contractor (with a copy to the Sub-Contractor) not later than fourteen (14)
Days after the expiration of the Defects Liability Period. The Sub-Contractor shall make
good the Defects specified within twenty eight (28) Days after receipt of the schedule of
defects (or within such longer period as may be agreed in writing by the Contractor and
Architect or Consultant) at the Sub-Contractor’s cost. If the Sub-Contractor fails to
attend to the Defects, the Contractor may, without prejudice to any other rights and
remedies which he may possess under the Sub-Contract, employ and pay other Person to
rectify the Defects and all costs incurred shall be set-off by the Contractor under Clause
26.13. If the Architect or Consultant with the consent of the Employer, instructs the
Contractor to leave the Defects in the Sub-Contract Works, then an appropriate
deduction for such Defects not made good by the Sub-Contractor shall be set-off by the
Employer under Clause 30.4 of the Main Contract Conditions and correspondingly by
the Contractor under Clause 26.13.

Instruction to 17.6 Notwithstanding Clause 17.5, the Contractor may at any time during the Defects
make good Liability Period issue written instructions requiring any critical Defects which need
Defects urgent rectification to be made good within a reasonable time specified by the Contractor
at the Sub-Contractor’s cost. If the Sub-Contractor fails to attend to such Defects within
the time specified by the Contractor, the Contractor may employ and pay other Person to
rectify such Defects and all costs incurred shall be set-off by the Contractor under Clause
26.13.

Remedial work 17.7 If the Contractor executes any remedial work to any part of the Main Contract Works
due to Defects in due to Defects in the Sub-Contract Works, then the cost of execution of such work shall
the Sub-Contract be set-off by the Contractor under Clause 26.13. The Architect with the consent of the
Works Employer, may instruct the Contractor not to carry out any such remedial work subject to
an appropriate set-off under Clause 30.4 of the Main Contract Conditions. Such
deduction by the Employer shall be set-off by the Contractor from the Sub-Contract Sum
under Clause 26.13.

Remedial work 17.8 If the Sub-Contractor executes any remedial work to or in connection with the Sub-
due to Defects in Contract Works (whether permanent or temporary) required by the Contractor or
the Main Architect or rendered necessary by reason of any defects in the Main Contract Works,
Contract Works then the Contractor shall pay to the Sub-Contractor the cost of the execution of such
remedial works. The Architect with the consent of the Employer, may instruct the
Contractor and Sub-Contractor not to carry out any such remedial work subject to an
appropriate set-off under Clause 30.4 of the Main Contract Conditions.

18.0 Assignment And Sub-Contracting

Assignment by 18.1 Other than assigning his rights, interests or benefits under the Sub-Contract to his
Sub-Contractor financial institution, the Sub-Contractor shall not without the written consent of both the
Contractor and Employer (such consent shall not be unreasonably delayed or withheld)
assign the same to other parties.

No sub- 18.2 Except where otherwise provided by the Sub-Contract, the Sub-Contractor shall not
contracting wholly or substantially sub-contract the Sub-Contract Works. Where the Sub-Contractor
sub-contracts labour only of craftsmen, skilled or semi-skilled workmen to carry out any
portion of the Sub-Contract Works, this shall not constitute sub-contracting within the
meaning of this clause.

PAM Sub-Contract 20182006 17

 19.0 Injury To Person Or Loss And/Or Damage Of Property And Indemnity To
Contractor

Sub- 19.1 The Sub-Contractor shall be liable for and shall indemnify the Contractor against any
Contractor’s damage, expense, liability, loss, claim or proceedings whatsoever whether arising at
indemnity common law or by statute in respect of personal injury to or death of any person arising
against injury or out of or in the course of or caused by the carrying out the Sub-Contract Works and
death provided always that the same is due to any negligence, omission, default and/or breach
of contract by the Sub-Contractor or of any Person for whom the Sub-Contractor is
responsible.

Sub- 19.2 The Sub-Contractor shall be liable for and shall indemnify the Contractor against any
Contractor’s damage, expense, liability, loss, claim or proceedings due to loss and/or damage of any
indemnity kind whatsoever to any property real or personal, including the Main Contract Works
against loss and any other property of the Employer, in so far as such loss and/or damage arises out
and/or damage of or in the course of or by reason of the execution of the Sub-Contract Works and
provided always that the same is due to any negligence, omission, default and/or breach
of contract by the Sub-Contractor or of any Person for whom the Sub-Contractor is
responsible.

Sub- 19.3 The Sub-Contractor shall be liable for and shall indemnify the Contractor against any
Contractor’s damage, expense, liability, loss, claim or proceedings whatsoever arising out of claims
indemnities by any and every workman employed in and for the execution of the Sub-Contract
against claims by Works and for payment of compensation under or by virtue of the Workmen’s
workmen Compensation Act 1952 and the Employees’ Social Security Act 1969.

Indemnities not 19.4 The indemnities given by the Sub-Contractor under Clauses 19.1 to 19.3 shall not be
to be defeated defeated or reduced by reason of any negligence or omission of the Contractor,
Employer, Architect, Consultant or other authorised representatives in failing to
supervise or control the Sub-Contractor’s site operation or methods of working or
temporary work or to detect or prevent or remedy defective work or to ensure proper
performance of any obligation of the Sub-Contractor under the Sub-Contract.

20.0 Insurance

SOSCO for local 20.1 Without prejudice to his liability to indemnify the Contractor under Clause 19.0, the
workmen Sub-Contractor shall register or cause to register all local workmen employed on the
Sub-Contract Works and who are subject to registration under the Employees’ Social
Security Scheme (hereinafter referred to as “SOCSO”) in accordance with the
Employees’ Social Security Act 1969. The Sub-Contractor shall make payment of all
contributions from time to time when the same ought to be paid.

Insurance for 20.2 Without prejudice to his liability to indemnify the Contractor under Clause 19.0, the
local workmen Sub-Contractor shall take out and maintain in the joint names of the Sub-Contractor,
not subject to Employer and Contractor an insurance policy for local workmen who are not subject to
SOCSO registration under SOCSO. Such insurance policy shall be effected and maintained as
necessary to cover all liabilities including common law liability in respect of any claim
which may arise in the course of the execution of the Sub-Contract Works. The
insurance policy shall be valid up to the Sub-Contract Completion Date and the extended
maintenance cover shall be for the Defects Liability Period plus a further three (3)
Months. If the Sub-Contractor is unable to complete by the Sub-Contract Completion
Date or complete making good the Defects within the insured period, he shall ensure that
the insurance is accordingly extended for the same period of delay. The Sub-Contractor
shall effect the said extension of the insurance cover not less than one (1) Month before
the expiry of the insurance currently in force.

PAM Sub-Contract 20182006 18

Workmen’s 20.3 Without prejudice to his liability to indemnify the Contractor under Clause 19.0, the
compensation Sub-Contractor shall take out and maintain an insurance policy for all foreign workers
insurance for employed on the Sub-Contract Works as required by the Workmen’s Compensation Act
foreign workers 1952, and the Workmen’s Compensation (Foreign Worker’s Compensation Scheme)
(Insurance) Order 1998. Such insurance policy shall be effected and maintained as
necessary to cover all liabilities including common law liability in respect of any claim
which may arise in the course of the execution of the Sub-Contract Works. The
insurance policy shall be valid up to the Sub-Contract Completion Date and the extended
maintenance cover shall be for the Defects Liability Period plus a further three (3)
Months. If the Sub-Contractor is unable to complete by the Sub-Contract Completion
Date or complete making good the Defects within the insured period, he shall ensure that
the insurance is accordingly extended for the same period of delay. The Sub-Contractor
shall effect the said extension of the insurance cover not less than one (1) Month before
the expiry of the insurance currently in force.

CAR insurance 20.4 If the Contractor’s All Risks (‘CAR’) insurance is to be taken out by the Contractor
by Contractor under Clauses 19.0 and 20.A of the Main Contract Conditions, the Contractor shall
under Clause within twenty eight (28) Days of the issuance of the Letter of Appointment to the Sub-
20.A of the Main Contractor, but in any case before the commencement of any work by the Sub-
Contract Contractor, furnish to the Sub-Contractor a certified true copy of such insurance policy
Conditions taken out in accordance with Clauses 19.0 and 20.A of the Main Contract Conditions. If
the Sub-Contractor having regard to his indemnity to the Contractor under Clause 19.0
of the Sub-Contract Conditions, desires to have additional insurance cover in addition to
the risks already covered by the Contractor, he shall do so at his own cost.

CAR insurance 20.5 If the CAR insurance is to be taken out by the Employer under Clauses 19.0 and 20.B or
by Employer 20.C of the Main Contract Conditions, the Contractor (after having obtain a certified
under Clause copy of all insurance policies from the Employer), shall within twenty eight (28) Days of
20.B or 20.C of the issuance of the Letter of Appointment to the Sub-Contractor, but in any case before
the Main the commencement of any work by the Sub-Contractor, furnish to the Sub-Contractor a
Contract certified true copy of such insurance policy. If the Sub-Contractor having regard to his
Conditions indemnity to the Contractor under Clause 19.0 of the Sub-Contract Conditions, desires
to have additional insurance cover in addition to the risks already covered by the
Employer, he shall do so at his own cost.

Placing of 20.6 The insurance referred to in Clauses 20.2, 20.3, 20.4 and 20.5 shall be placed with
insurance of licensed insurance companies approved by the Contractor or Employer and the Sub-
licensed Contractor shall deposit with the Contractor the policy and the receipt of premiums paid.
insurance If the Sub-Contractor makes default in insuring or continuing to insure as aforesaid, the
companies Contractor may (but is not obligated to) insure against any risks in respect of which the
default has occurred and the amount of premiums and any other cost incurred or paid by
the Contractor shall be set-off by the Contractor under Clause 26.13.

21.0 Extension Of Time

Notification of 21.1 If the Sub-Contractor is of the opinion that the completion of the Sub-Contract Works is
Relevant Events or will be delayed beyond the Sub-Contract Completion Date by any of the Relevant
causing delay Events stated in Clause 21.4, he may apply for an extension of time provided always
that:

21.1(a) the Sub-Contractor shall give written notice to the Contractor (with a copy
to the Architect and Consultant) of his intention to claim for such extension
of time together with an initial estimate of the extension of time he may
require supported with all particulars of the cause of delay. Such notice
must be given within twenty one (21) Days from the date of the AI, CAI or
the commencement of the Relevant Event, whichever is earlier. The giving
of such written notice shall be a condition precedent to any entitlement for
an extension of time;

21.1(b) the Contractor shall within seven (7) Days of receipt of such written notice
by the Sub-Contractor inform the Architect and Consultant (with a copy to
the Sub-Contractor) and include any Contractor’s response to the Sub-
Contractor’s application as to the cause of the delay; and

PAM Sub-Contract 20182006 19

 21.1(c) within twenty eight (28) Days of the end of the cause of delay, the Sub-
Contractor shall send to the Contractor (with copy to the Architect and
Consultant) his final claim for extension of time duly supported with all
particulars to enable the Architect to issue a written recommendation on any
extension of time to be granted by the Contractor. If the Sub-Contractor
fails to submit such particulars within the stated time (or within such longer
period as may be agreed in writing by the Contractor and Architect), it shall
be deemed that the Sub-Contractor has assessed that such Relevant Event
will not delay the completion of the Sub-Contract Works beyond the Sub-
Contract Completion Date.

Architect’s 21.2 If the Architect is of the opinion that the particulars submitted by the Contractor (and
written Sub-Contractor) are insufficient to enable him to decide on the application for extension
recommendation of time, the Architect shall within twenty eight (28) Days from receipt of the
to an extension Contractor’s particulars inform the Contractor of any deficiency in his submission, and
of time may require the Contractor (and Sub-Contractor) to provide such further particulars
within a further twenty eight (28) Days or such other period of time as may be stated by
the Architect.

When the Contractor (and Sub-Contractor) has submitted sufficient particulars for the
Architect’s consideration, the Architect shall subject to Clauses 21.3 and 21.7, issue to
the Contractor (with a copy to the Sub-Contractor) his written rejection or
recommendation for an extension of time, not later than six (6) Weeks from the receipt
by the Architect of the particulars from the Contractor, irrespective of whether such
particulars are received by the Architect before or after the Sub-Contract Completion
Date.

In arriving at his recommendation, the Architect may take into account the following:

21.2(a) the effect or extent of any work omitted under the Sub-Contract, provided
always that the Architect shall not fix a completion date earlier than the
Sub-Contract Completion Date; and

21.2(b) any other Relevant Events which in the Architect’s opinion will have an
effect on the Sub-Contractor’s entitlement to an extension of time.

Appeal against 21.3 Where the Sub-Contractor disputes the written rejection or recommendation of the
Architect’s Architect, then subject to the Sub-Contractor giving to the Contractor such indemnity
recommendation and security as the Contractor may reasonably require, the Contractor shall allow the
Sub-Contractor to use the Contractor’s name and if necessary join with the Sub-
Contractor in any dispute resolution procedure.

Relevant Events 21.4 The following are the Relevant Events referred to in Clause 21.0:

21.4(a) Force Majeure;

21.4(b) exceptionally inclement weather;

21.4(c) loss and/or damage occasioned by one or more of the contingencies referred
to in Clause 20.A, 20.B or 20.C of the Main Contract Conditions as the case
may be, provided always that the same is not due to any negligence,
omission, default and/or breach of contract by the Contractor and/or Sub-
Contractor;

21.4(d) civil commotion, strike or lockout affecting any of the trades employed
upon the Sub-Contract Works or any of the trades engaged in the
preparation, manufacture or transportation of any materials and goods
required for the Sub-Contract Works;

PAM Sub-Contract 20182006 20

 21.4(e) the Sub-Contractor not having received in due time the necessary AI or CAI
(including those for or in regard to the expenditure of P.C. Sums and
Provisional Sums, further drawings, details, levels and any other
information) for which he had specifically applied in writing to the
Contractor. The Sub-Contractor’s application must be submitted to the
Contractor in sufficient time before the commencement of construction of
the affected works, to enable the Contractor to obtain the necessary AI from
the Architect within a period which would not materially affect the progress
of the affected works, having regard to the Sub-Contract Completion Date.
Provided always that the AI or CAI was not required as a result of any
negligence, omission, default and/or breach of contract by the Sub-
Contractor;

21.4(f) delay by the Employer in giving possession of the Site or any section of the
Site in accordance with Clauses 21.1 and 21.2 of the Main Contract
Conditions;

21.4(g) compliance with AI issued by the Architect under Clauses 1.4, 11.2 and
21.4 of the Main Contract Conditions;

21.4(h) re-nomination of a Sub-Contractor as set out in Clause 27.11 of the Main

Contract Conditions;

21.4(i) delay on the part of craftsmen, tradesmen or other contractors employed or

engaged by the Employer in executing work not forming part of the Main or
Sub-Contract Works or the failure to execute such work;

21.4(j) delay or failure in the supply of materials and goods which the Employer
had agreed to supply for the Sub-Contract Works;

21.4(k) the opening up for inspection of any work covered up, testing any materials,
goods or executed work in accordance with Clause 8.2, unless the
inspection or test:

21.4(k)(i) is provided for in the Sub-Contract Bills;

21.4(k)(ii) shows that the works, materials and goods were not in
accordance with the Sub-Contract; or

21.4(k)(iii) is required by the Contractor or Architect in consequence of

some prior negligence, omission, default and/or breach of
contract by the Sub-Contractor;

21.4(l) any act of prevention or breach of the Main Contract by the Employer;

21.4(m) war damage under Clause 32.1 of the Main Contract Conditions;

21.4(n) compliance with AI issued in connection with the discovery of antiquities

under Clause 33.1 of the Main Contract Conditions;

21.4(o) compliance with any changes to any law, regulations, by-law or terms and
conditions of any Appropriate Authority and Service Provider;

21.4(p) delay caused by any Appropriate Authority and Service Provider in carrying
out, or failure to carry out their work which affects the Sub-Contractor’s
work progress, provided always that such delay is not due to any
negligence, omission, default and/or breach of contract by the Contractor
and/or Sub-Contractor;

21.4(q) appointment of a replacement Person under Articles 3, 4, 5 and 6;

21.4(r) compliance with AI in connection with disputes with neighbouring property

owners provided always that such dispute is not caused by negligence,
omission, default and/or breach of contract by the Contractor and/or Sub-
Contractor;

21.4(s) delay as a result of the execution of work for which a Provisional Quantity
is included in the Sub-Contract Bills which in the opinion of the Architect
is not a reasonably accurate forecast of the quantity of work required;
PAM Sub-Contract 20182006 21
 21.4(t) failure of the Employer to give in due time entry to or exit from the Site or
any part through or over any land, by way of passage adjoining or
connected to the Site and in possession and control of the Employer;

21.4(u) suspension by the Contractor of his obligations under Clauses 30.7 and 30.8
of the Main Contract Conditions;

21.4(v) suspension of the whole or part of the Main Contract Works by order of an
Appropriate Authority provided always that the same is not due to any
negligence, omission, default and/or breach of contract by the Contractor
and/or Sub-Contractor; and

21.4(w) any other ground for extension of time expressly stated in the Sub-Contract.

Delay caused by 21.5 If the Sub-Contractor is of the opinion that the progress or completion of the Sub-
the Contractor Contract Works is or will be delayed beyond the Sub-Contract Completion Date by any
negligence, omission, default and/or breach of contract by the Contractor, the Sub-
Contractor may apply for an extension of time provided always that:

21.5(a) the Sub-Contractor shall give written notice to the Contractor (with a copy
to the Architect and Consultant) his intention to claim for such extension of
time together with an initial estimate of the extension of time he may require
supported with all particulars of the cause of delay. Such notice must be
given within twenty one (21) Days from the date of the cause of the delay
The giving of such written notice shall be a condition precedent to any
entitlement to an entitlement of extension of time; and

21.5(b) within twenty eight (28) Days of the end of the cause of delay, the Sub-
Contractor shall send to the Contractor (with copy to the Architect and
Consultant) his final claim for extension of time, supported with all
particulars to enable the Contractor to assess an extension of time to be
granted. If the Sub-Contractor fails to submit such particulars within the
stated time (or within such longer period as may be agreed in writing by the
Contractor), it shall be deemed that the Sub-Contractor has assessed that
such event will not delay the completion of the Sub-Contract Works beyond
the Sub-Contract Completion Date.

Determination of 21.6 If the Contractor is of the opinion that the particulars submitted by the Sub-Contractor
extension of time are insufficient to enable him to decide on the application for extension of time, the
Contractor shall within twenty eight (28) Days from receipt of the Sub-Contractor’s
particulars inform him of any deficiency in his submission and shall require the Sub-
Contractor to provide such further particulars within a further twenty eight (28) Days or
such longer period of time as may be stated by the Contractor.

When the Sub-Contractor has submitted sufficient particulars for the Contractor’s
consideration under Clause 21.5, the Contractor shall not later than six (6) Weeks from
receipt of the Sub-Contractor’s complete particulars, either reject the Sub-Contractor’s
application with reasons or issue the Certificate of Extension of Time with details to the
Sub-Contractor.

In determining the extension of time due to the Sub-Contractor, the Contractor shall take
into consideration the Architect’s recommendation under Clause 21.2 and the Sub-
Contractor’s entitlement under this clause. In this regard, the Contractor may also
consider any matter that has not been specifically notified by the Sub-Contractor.

Sub-Contractor 21.7 The Sub-Contractor shall constantly use his best endeavour to prevent and reduce delay
to prevent delay in the progress of the Sub-Contract Works, and to do all that may reasonably be required
to the satisfaction of the Contractor to prevent and reduce delay or further delay in the
completion of the Sub-Contract Works beyond the Sub-Contract Completion Date.

PAM Sub-Contract 20182006 22

Review of 21.8 The Architect may within twelve (12) Weeks after the date of Practical Completion of
written the Sub-Contract Works review any previous written recommendation for an extension
recommendation of time given under Clause 21.2, and inform the Contractor (with a copy to the Sub-
of extension of Contractor) of his decision. The Architect upon reviewing a previous written
time by the recommendation for an extension of time may take into consideration any Relevant
Architect Event which in the Architect’s opinion will have an effect on the Sub-Contractor’s
entitlement to an extension of time even though it may not have been specifically
notified by the Sub-Contractor. No such final review of extension of time shall result in a
decrease in any extension of time previously recommended.

Final 21.9 The Contractor may within fifteen (15) Weeks after the date of Practical Completion of
determination of the Sub-Contract Works review any previous decision given under Clauses 21.2 and 21.6
extension of time and after taking into consideration the Architect’s review of any previous written
by the recommendation (if any) given under Clause 21.8, inform the Sub-Contractor (with a
Contractor copy to the Architect) of his review of any extension of time. No such final review of
extension of time shall result in a decrease in any extension of time previously granted to
the Sub-Contractor by the Contractor. In the event the fixing of such later Sub-Contract
Completion Date affects the amount of loss and/or expense which the Contractor is
entitled to retain, he shall repay the surplus amount to the Sub-Contractor within the
Period of Honouring Certificates stated in Appendix ‘C’, from the date of issuance of the
Contractor’s final review of extension of time.

22.0 Loss And/Or Expense Caused By Matters Affecting The Regular Progress Of The
Sub-Contract Works

Loss and/or 22.1 Where the regular progress of the Sub-Contract Works has been or is likely to be
expense caused materially affected by any of the matters expressly referred to in Clause 22.3, and the
by matters Sub-Contractor has incurred or is likely to incur loss and/or expense which could not be
affecting reimbursed by a payment made under any other provision in the Sub-Contract, the Sub-
progress of the Contractor may make a claim for such loss and/or expense provided always that:
Sub-Contract
Works 22.1(a) the Sub-Contractor shall give written notice to the Contractor (with a copy
to the Architect and Consultant) of his intention to claim for such loss
and/or expense together with an initial estimate of his claim duly supported
with all necessary calculations. Such notice must be given within twenty one
(21) Days from the date of the AI, CAI or start of the occurrence of the
matters referred to in Clause 22.3, whichever is earlier. The giving of such
written notice shall be a condition precedent to any entitlement to loss and
expense that the Sub-Contractor may have under the Sub-Contract and/or
Common Law; and

22.1(b) within twenty eight (28) Days after the matters referred to in Clause 22.3
have ended, the Sub-Contractor shall send to the Contractor (with a copy to
the Architect and Consultant) complete particulars of his claim for loss
and/or expense together with all necessary supporting calculations to
substantiate his claims. If the Sub-Contractor fails to submit the required
particulars within the stated time (or within such longer period as may be
agreed in writing by the Contractor and Architect), it shall be deemed that
the Sub-Contractor has waived his rights to any such loss and/or expense.

Access to Sub- 22.2 The Sub-Contractor shall keep contemporaneous records of all his claims for loss and/or
Contractor’s expense. In order to verify the Sub-Contractor’s claim, the Contractor, Architect and
books and Consultant shall have access to all books, documents, reports, papers or records in the
documents possession, custody or control of the Sub-Contractor that are material to the claim and
the Sub-Contractor shall provide free of charge, a copy each to the Contractor, Architect
and Consultant when requested. All such documents shall remain available in
accordance with this clause until all claims have been resolved. The Sub-Contractor shall
use his best endeavour to ensure that all such documents in the possession, custody or
control of sub-contractors and/or suppliers that are material to the claim are similarly
available.

PAM Sub-Contract 20182006 23

Matters 22.3 The following are the matters referred to in Clause 22.1:
materially
affecting 22.3(a) the Sub-Contractor not having received in due time the necessary AI or CAI
progress of the (including those for or in regard to the expenditure of P.C. Sums and
Sub-Contract Provisional Sums, further drawings, details, levels and any other
Works information) for which he had specifically applied in writing to the
Contractor. The Sub-Contractor’s application must be submitted in
sufficient time before the commencement of construction of the affected
works, to enable the Contractor to obtain the necessary AI from the
Architect within a period which would not materially affect the progress of
the affected works having regard to the Sub-Contract Completion Date.
Provided always that the AI was not required as a result of any negligence,
omission, default and/or breach of contract by the Sub-Contractor;

22.3(b) delay by the Employer in giving possession of the Site or any section of the
Site in accordance with Clauses 21.1 and 21.2 of the Main Contract
Conditions;

22.3(c) compliance with a written instruction issued by the Architect in regard to the
postponement or suspension of all or any part of the Sub-Contract Works to
be executed under Clause 21.4 of the Main Contract Conditions;

22.3(d) delay on the part of craftsmen, tradesmen or other contractors employed or

engaged by the Employer in executing work not forming part of the Main or
Sub-Contract Works or the failure to execute such work;

22.3(e) delay or failure in the supply of materials and goods which the Employer
had agreed to supply for the Main Contract Works or Sub-Contract Works;

22.3(f) the opening up for inspection of any work covered up, testing any materials,
goods or executed work in accordance with Clause 8.2, unless the inspection
or test showed that the works, materials and goods were not in accordance
with the Sub-Contract or was in the opinion of the Contractor and Architect
required in consequence of some prior negligence, omission, default and/or
breach of contract by the Sub-Contractor;

22.3(g) any act of prevention or breach of the Main Contract by the Employer;

22.3(h) delay as a result of a compliance with AI issued in connection with the

discovery of antiquities under Clause 33.1 of the Main Contract Conditions;

22.3(i) appointment of a replacement Person under Articles 3, 4, 5 and 6;

22.3(j) compliance with a written instruction issued by the Architect in connection

with disputes with neighbouring property owners provided always that the
same is not caused by negligence, omission, default and/or breach of
contract by the Sub-Contractor;

22.3(k) delay as a result of the execution of work for which a Provisional Quantity is
included in the Sub-Contract Bills which in the opinion of the Architect is
not a reasonably accurate forecast of the quantity of work required;

22.3(l) failure of the Employer to give in due time entry to or exit from the Site or
any part through or over any land, by way of passage adjoining or connected
to the Site and in the possession and control of the Employer;

22.3(m) suspension by the Contractor of his obligations under Clauses 30.7 and 30.8
of the Main Contract Conditions; and

22.3(n) suspension of the whole or part of the Main Contract Works by order of an
Appropriate Authority provided always that the same is due to negligence or
omission on the part of the Employer, Architect or Consultant.

Loss and/or 22.4 The Sub-Contractor shall not be entitled to any loss and/or expense unless he complies
expense to be with all the provisions of Clause 22.1. Subject to the Sub-Contractor complying with
included in Clause 22.1, the Architect or Consultant shall ascertain the amount of such loss and/or
certificate expense. Any amount so ascertained from time to time for such loss and/or expense shall
be added to the Sub-Contract Sum, and if a payment certificate is issued after the date of
ascertainment, such amount shall be included in the certificate.
PAM Sub-Contract 20182006 24
Breach of Sub- 22.5 Where the regular progress of the Sub-Contract Works has been or is likely to be
Contract – Sub- disrupted by any negligence, omission, default and/or breach of contract by the
Contractor’s Contractor, and the Sub-Contractor had incurred or is likely to incur loss and/or expense,
claim the Sub-Contractor shall be entitled to recover such loss and/or expense from the
Contractor as a debt. Provided always that:

22.5(a) the Sub-Contractor shall give written notice to the Contractor of his
intention to claim for such loss and/or expense within twenty one (21) Days
from the commencement of the cause of disturbance giving rise to the claim,
and the written notice shall specify the negligence, omission, default and/or
breach of contract and its consequences. The giving of such written notice
shall be a condition precedent to any entitlement that the Sub-Contractor
may have under the Sub-Contract; and

22.5(b) within twenty eight (28) Days of the Sub-Contractor giving written notice
(or within such longer period as may be agreed in writing by the
Contractor), the Sub-Contractor shall send to the Contractor particulars of
his claim for loss and/or expense together with all necessary supporting
calculations to substantiate his claim. If the Sub-Contractor fails to submit
the required particulars within the stated time (or within such longer period
as may be agreed in writing by the Contractor), it may be deemed that the
Sub-Contractor has no claim for loss and/or expense.

If the Contractor has any dispute with the Sub-Contractor’s notice or the amount of the
Sub-Contractor’s claim, the Contractor shall within twenty one (21) Days of receipt of
such written notice or claim, send to the Sub-Contractor a written notice by hand or by
registered post setting out the reasons and particulars for such disagreement. If the
parties are unable to agree on the dispute within a further twenty one (21) Days after the
receipt of the Sub-Contractor’s response, the parties shall refer the dispute to
adjudication under Clause 2830.1. The Sub-Contractor shall be entitled to be paid the
loss and/or expense within twenty one (21) Days after the amount has been agreed by the
Contractor or the adjudicator has issued his decision.

Breach of Sub- 22.6 Where the regular progress of the Main Contract Works has been or is likely to be
Contract – disrupted by negligence, omission, default and/or breach of contract by the Sub-
Contractor’s Contractor, and the Contractor had incurred or is likely to incur loss and/or expense the
claim Contractor shall be entitled to recover such loss and/or expense from the Sub-Contractor
as a debt or to set-off the same from any monies due or to become due to the Sub-
Contractor under the Sub-Contract or to recover the same from the Performance Bond,
provided always that:

22.6(a) the Contractor shall give written notice to the Sub-Contractor, delivered by
hand or by registered post of his intention to claim for such loss and/or
expense within twenty one (21) Days from the commencement of the cause
of disturbance giving rise to the claim, and the written notice shall specify
the negligence, omission, default and/or breach of contract and its
consequences. The giving of such written notice shall be a condition
precedent to any entitlement that the Contractor may have under the Sub-
Contract; and

22.6(b) within twenty eight (28) Days of the Contractor giving written notice (or
within such longer period as may be agreed in writing by the Sub-
Contractor), the Contractor shall send to the Sub-Contractor particulars of
the claim for loss and/or expense together with all necessary supporting
calculations to substantiate his claims. If the Contractor fails to submit the
required particulars within the stated time (or within such longer period as
may be agreed in writing by the Sub-Contractor), it may be deemed that the
Contractor has no claim for loss and/or expense.

If the Sub-Contractor after receipt of the written notice from the Contractor disputes the
amount of set-off, the Sub-Contractor may within twenty one (21) Days of receipt of
such written notice, send to the Contractor by hand or by registered post a statement
setting out the reasons and particulars for such disagreement. If the parties are unable to
agree on the amount of set-off within a further twenty one (21) Days after the receipt of
the Sub-Contractor’s response, the parties shall refer the dispute to adjudication in
accordance with Clause 2830.1. The Contractor shall not be entitled to exercise any set-
off unless the amount has been agreed by the Sub-Contractor or the adjudicator has
issued his decision.
PAM Sub-Contract 20182006 25
Loss and/or 22.7 Any claims for loss and/or expense under Clauses 22.5 and 22.6 are matters to be
expense between resolved between the Contractor and Sub-Contractor, and the amount shall not be
the parties to be included in the Final Account.
mutually
resolved

23.0 Determination Of Sub-Contractor’s Employment By Contractor

Defaults by Sub- 23.1 The Contractor may determine the employment of the Sub-Contractor if the Sub-
Contractor Contractor defaults in any of the following:

23.1(a) if without reasonable cause, he fails to commence the Sub-Contract Works

in accordance with the Sub-Contract;

23.1(b) if without reasonable cause, he wholly or substantially suspends the carrying

out of the Sub-Contract Works before completion;

23.1(c) if he fails to proceed with the design (to the extent required by the Sub-
Contract) and/or proceed regularly and/or diligently with the Sub-Contract
Works;

23.1(d) if he persistently refuses or neglects to comply with an AI;

23.1(e) if he fails to comply with the provisions of Clause 18.0; or

23.1(f) if he has abandoned the Sub-Contract Works.

Procedure for 23.2 Upon the occurrence of any default under Clause 23.1, and if the Contractor intends to
determination determine the Sub-Contractor’s employment, the Contractor shall send to the Architect
(with a copy to the Sub-Contractor) a written report of the Sub-Contractor’s default. The
Architect may request that the Sub-Contractor respond to the Contractor’s report before
he decides whether to give his written consent under Clause 27.8 of the Main Contract
Conditions to determine the employment of the Sub-Contractor. If the Architect gives his
written consent to determine the employment of the Sub-Contractor, the Contractor shall
give to the Sub-Contractor a written notice delivered by hand or by registered post
specifying the default. If the Sub-Contractor shall continue with such default for fourteen
(14) Days from the receipt of such written notice, then the Contractor may, within ten
(10) Days from the expiry of the said fourteen (14) Days, by a further written notice
delivered by hand or by registered post, forthwith determine the employment of the Sub-
Contractor under the Sub-Contract. Provided always that such notice shall not be given
unreasonably or vexatiously.

Sub- 23.3 In the event of the Sub-Contractor becoming insolvent or making a composition or
Contractor’s arrangement with his creditors, or have a winding up order made, or (except for purposes
insolvency of reconstruction or amalgamation) a resolution for voluntary winding up, or having a
liquidator or receiver or manager of his business or undertaking duly appointed, or
having possession taken by or on behalf of the holders of any debentures secured by a
floating charge, or of any property comprised in or subject to the floating charge, the
employment of the Sub-Contractor shall be forthwith automatically determined.

Rights and 23.4 In the event that the employment of the Sub-Contractor is determined under Clause 23.1
duties of the or 23.3, the following shall be the respective rights and duties of the Contractor and Sub-
Contractor and Contractor:
Sub-Contractor
23.4(a) the Employer through the Architect shall nominate a Person as the new
Nominated Sub-Contractor, or employ and pay other Person to carry out and
complete the Sub-Contract Works and make good any defects. Such Person
may enter upon the Sub-Contract Works and use all temporary buildings,
construction plant, tools, equipment, materials and goods intended for,
delivered to and placed on or adjacent to the Site, except those that are on
hire by the Sub-Contractor, and may purchase all materials and goods
necessary for the carrying out and the completion of the Sub-Contract
Works. The Sub-Contractor, if so required by the Contractor, shall within
twenty one (21) Days of the date of determination, assign to the Contractor
the benefit of any agreement for the continuation of the hire of construction
plant and equipment already on Site;

PAM Sub-Contract 20182006 26

 23.4(b) the Sub-Contractor if so required by the Contractor, shall within twenty one
(21) Days of the date of determination, assign to the Contractor without
payment the benefit of any agreement for the supply of materials and goods
and/or for the execution of any work for the purposes of the Sub-Contract to
the extent that the same is assignable;

23.4(c) the Sub-Contractor when required in writing by the Contractor shall remove
from the Sub-Contract Works any temporary buildings, construction plant,
tools, equipment, materials and goods belonging to or hired by him. If
within a reasonable time after any such instruction has been issued to the
Sub-Contractor, and he has not complied therewith, then the Contractor may
without liability remove and sell any such property belonging to the Sub-
Contractor (except those that are on hire) and hold the proceeds less all costs
incurred to the credit of the Sub-Contractor; and

23.4(d) the Sub-Contractor shall allow or pay to the Contractor all cost incurred to
complete the Sub-Contract Works including all loss and/or expense suffered
by the Contractor. Upon completion of the Sub-Contract Works, an account
taking into consideration the value of works carried out by the Sub-
Contractor and all cost incurred by the Contractor to complete the Sub-
Contract Works including loss and/or expense suffered by the Contractor,
shall be incorporated in a final account prepared in accordance with Clause
23.7.

No payment 23.5 Until after the completion of the Sub-Contract Works as referred to in Clause 23.4(a),
upon the Contractor shall not be bound by any provision in the Sub-Contract to make any
determination further payment to the Sub-Contractor, including payments which have been certified but
not yet paid due but excluding payments which have been certified and are due but
remain unpaid when the employment of the Sub-Contractor was determined.

Records of Sub- 23.6 The Architect or Consultant shall within twenty eight (28) Days of the determination of
Contract Works the Sub-Contractor’s employment, give a written notice to the Contractor and Sub-
Contractor of the date of inspection on Site to jointly record the extent of the Sub-
Contract Works executed and the materials and goods delivered to the Site. The
Contractor and Sub-Contractor shall provide all necessary assistance to the Architect and
Consultant to perform their task. Upon completion of the record by the Architect or
Consultant, a copy shall be sent to the Contractor and Sub-Contractor and such records
shall form the basis for the evaluation of the value of the works executed and materials
and goods delivered to the Site by the Sub-Contractor up to the date of determination.

Final account 23.7 The Architect or Consultant shall within six (6)three (3) Months on completion of the
upon availability of the final cost incurred to complete the Main Sub-Contract Works, submit
determination to the Sub-Contractor and Contractor for their agreement, a final account shall be for all
cost incurred to complete the Sub-Contract Works including the sums previously
certified to the Sub-Contractor before the date of determination, Liquidated Damages
and all loss and expense and set-off suffered by the Employer and Contractor.

23.7(a) If nothing in the said final account is disputed by the Contractor and Sub-
Contractor within three (3) Months from the date of receipt of the final
account from the Architect or Consultant, the final account shall be
conclusive and deemed agreed by the parties. If the amount in the final
account exceeds the total amount which would have been payable on
completion in accordance with the Sub-Contract, the difference shall be a
debt payable to the Contractor by the Sub-Contractor or where applicable,
the Contractor may recover such sum from the Performance Bond. If the
said amount is less than the said total amount, the difference shall be a debt
payable to the Sub-Contractor by the Contractor.

PAM Sub-Contract 20182006 27

 23.7(b) If either party has any dispute on the final account, the party disputing the
final account shall by written notice to the other party (with copies to the
Architect and Consultant) set out any disagreement complete with
particulars within three (3) Months of the date of receipt of the final account
from the Architect or Consultant. The Architect or Consultant within three
(3) Months from the date of receipt of the grounds of dispute shall either
amend or not amend the final account. Any party disagreeing with the
amended final account or decision not to amend the final account shall refer
the dispute to arbitration under Clause 2931.0 within three (3) Months from
the date of receipt of the amended final account or decision not to amend the
final account. Failure to refer the dispute to arbitration within the stipulated
time, the final account or amended final account shall deem to be conclusive
and deemed agreed by the parties.

23.7(c) Any dispute on set-off which the Contractor is entitled to make under the
Sub-Contract shall be referred to arbitration.

Remedy limited 23.8 Upon receipt of a written notice by the Sub-Contractor from the Contractor to determine
to damages only the employment of the Sub-Contractor, the Sub-Contractor shall within fourteen (14)
Days from the receipt of the said written notice remove his personnel and labour force
(but not construction plant, tools and equipment unless so instructed by the Contractor or
Architect) from the Site. Irrespective of the validity of the said written notice the Sub-
Contractor’s remedy shall be limited to compensation for damages only.

Contractor’s 23.9 The provisions of Clause 23.0 are without prejudice to any other rights and remedies
rights and which the Contractor may possess.
remedies not
prejudiced

24.0 Determination Of Own Employment By Sub-Contractor

Defaults by 24.1 The Sub-Contractor may determine his own employment if the Contractor defaults in any
Contractor of the following:

24.1(a) if without reasonable cause, the Contractor wholly or substantially suspends

the carrying out of the Main Contract Works;

24.1(b) if without reasonable cause, the Contractor fails to proceed with the Main
Contract Works with due diligence so that the reasonable progress of the
Sub-Contract Works is seriously affected; or

24.1(c) if the Contractor fails or neglects to pay the Sub-Contractor the amount
properly due on any certificate (less any set-off which the Contractor is
expressly entitled to make under the Sub-Contract), within seven (7) Days
after the Period of Honouring Certificate.

Procedure for 24.2 Upon the occurrence of any default under Clause 24.1, and if the Sub-Contractor decides
determination to determine his own employment then, the Sub-Contractor shall give to the Contractor,
a written notice delivered by hand or by registered post specifying the default. If the
Contractor shall continue such default for fourteen (14) Days from the receipt of such
written notice then, the Sub-Contractor may within ten (10) Days from the expiry of the
said fourteen (14) Days, by a further written notice delivered by hand or by registered
post forthwith determine his own employment under the Sub-Contract. Provided always
that such notice shall not be given unreasonably or vexatiously.

Contractor’s 24.3 In the event of the Contractor becoming insolvent or making a composition or
insolvency arrangement with his creditors, or have a winding up order made, or (except for purposes
of reconstruction or amalgamation) a resolution for voluntary winding up, or having a
liquidator or receiver or manager of his business or undertaking duly appointed, or
having possession taken by or on behalf of the holders of any debentures secured by a
floating charge, or of any property comprised in or subject to the floating charge, the
employment of the Sub-Contractor shall be forthwith automatically determined.

Rights and 24.4 In the event that the employment of the Sub-Contractor is determined under Clause 24.1,
duties of Sub- the following shall be the respective rights and duties of the Contractor and Sub-
Contractor and Contractor:
Contractor

PAM Sub-Contract 20182006 28

 24.4(a) the Sub-Contractor shall within fourteen (14) Days or within such longer
period as may be agreed in writing by the Contractor, remove from the site
all his temporary buildings, construction plant, tools, materials and goods
and shall be paid the cost of demobilisation;

24.4(b) the Sub-Contractor shall be paid for the total value of work properly
completed, the total value of work begun and executed but not completed,
the cost of materials and goods properly ordered for the Sub-Contract Works
(but not incorporated into the Sub-Contract Works) for which the Sub-
Contractor shall have paid or is legally bound to accept delivery and on such
payment by the Contractor any materials and goods so paid for shall become
the property of the Contractor; and

24.4(c) the Contractor shall allow or pay to the Sub-Contractor any loss and/or
expense suffered by the Sub-Contractor caused by such determination.

Records of Sub- 24.5 Upon determination by the Sub-Contractor of his own employment, the Sub-Contractor
Contract Works shall within twenty eight (28) Days of the written notice of determination, give a written
notice to the Contractor (with a copy to the Architect and Consultant) of the date of
inspection on Site to jointly record the extent of the Sub-Contract Works executed and
the materials and goods delivered to the Site. Upon completion of the record, a copy
shall be sent by the Sub-Contractor to the Contractor (with a copy to the Architect and
Consultant) and the records shall form the basis for the evaluation of the cost of the
works executed by the Sub-Contractor.

Settlement of 24.6 The Sub-Contractor shall within six (6) Months after determination of his own
account employment, submit to the Contractor, Architect and Consultant for the Contractor’s
agreement, a final account for the total value of work properly executed, the value of
materials and goods supplied and loss and/or expense suffered by the Sub-Contractor
caused by such determination.

24.6(a) If nothing in the said final account is disputed by the Contractor within three
(3) Months from the date of receipt of the final account from the Sub-
Contractor, the final account shall be conclusive and deemed agreed by the
parties. If after taking into consideration any sums previously paid to the
Sub-Contractor under the Sub-Contract less any set-off which the
Contractor is expressly entitled to make under the Sub-Contract, there is a
balance due to the Sub-Contractor, the amount to be paid by the Contractor
shall be payable within seven (7) Days after the Period of Honouring
Certificates. If such amounts added to the sums previously paid to the Sub-
Contractor before the date of determination exceed the total amount which
would have been payable on completion in accordance with the Sub-
Contract, the difference shall be a debt payable to the Contractor by the Sub-
Contractor.

24.6(b) If the Contractor disputes the final account, the Contractor shall give written
notice to the Sub-Contractor (with copies to the Architect and Consultant)
setting out any disagreement complete with particulars within three (3)
Months of the date of receipt of the final account from the Sub-Contractor.
The Sub-Contractor within three (3) Months from the date of receipt of the
grounds of dispute shall either amend or not amend the final account. In the
event the Contractor disagrees with the amended final account or the
decision not to amend the final account, the Contractor shall refer the
dispute to arbitration under Clause 2931.0 within three (3) Months from the
date of receipt of the amended final account or decision not to amend the
final account. Failure to refer the dispute to arbitration within the stipulated
time, the final account or amended final account shall deem to be conclusive
and deemed agreed by the parties.

24.6(c) Any dispute on set-off which the Contractor is entitled to make under the
Sub-Contract shall be referred to arbitration.

Sub- 24.7 The provisions of Clause 24.0 are without prejudice to any other rights and remedies
Contractor’s which the Sub-Contractor may possess.
rights and
remedies not
prejudiced

PAM Sub-Contract 20182006 29

 25.0 Determination Of Contractor’s Employment Under The Main Contract

Determination of 25.1 If the employment of the Contractor is determined by the Employer under Clause 25.0 of
Contractor’s the Main Contract Conditions, then the employment of the Sub-Contractor under the
employment by Sub-Contract shall be forthwith automatically determined and the provision of Clauses
Employer 23.6 and 23.7 of the Sub-Contract shall apply.

Determination of 25.2 If the Contractor determines his own employment under Clause 26.0 of the Main
Contractor’s Contract Conditions, then the employment of the Sub-Contractor under the Sub-Contract
employment by shall be forthwith automatically determined. The Sub-Contractor shall supply all
Contractor necessary information to the Contractor in order that the Contractor can include a record
of works executed by the Sub-Contractor to be followed by a final account to be
submitted to the Employer as required under Clauses 26.4 and 26.5 of the Main Contract
Conditions.

26.0 Certificates And Payment

Contractor to 26.1 The Sub-Contractor shall at such intervals agreed with the Contractor, submit complete
include Sub- details and particulars to the Contractor to consider and ascertain the amount to be
Contractor’s included in the payment application under the Main Contract. Any failure by the Sub-
payment Contractor to submit a payment application within the agreed time shall be deemed to be
application a waiver of his contractual entitlement for that interim payment.

Sub- 26.2 The Sub-Contractor’s payment application shall, subject to any agreement between the
Contractor’s parties as to stage payments, be the total value of work properly executed and include the
payment percentage of the value of materials and goods stated in Appendix ‘C’. The materials and
goods must be for incorporation into the permanent works and have been delivered to
and properly stored at the Site and be protected against loss, damage or deterioration,
and be in accordance with the Sub-Contract. The payment application shall only include
the value of materials and goods which are reasonably, properly and not prematurely
brought to the Site.

Sub- 26.3 When issuing any payment certificates under Clause 30.1 of the Main Contract
Contractor’s Conditions, the Architect shall also indicate separately any amount due to the Sub-
payment and Contractor under the Sub-Contract. The payment by the Contractor to the Sub-
Contractor’s Contractor shall be made within seven (7) Days after the Period of Honouring
entitlement to Certificates, less any Retention Fund which may be retained by the Contractor in
set-off accordance with the Main Contract Conditions, and less the amounts previously certified
under the Sub-Contract Conditions. The Contractor shall be entitled to separately
withhold and/or deduct from any payment due to the Sub-Contractor any set-off which
the Contractor is expressly entitled to make under the Sub-Contract.

Retention Fund 26.4 The Contractor shall retain from the payment certificate the Retention Fund which shall
be held by the Employer under Clause 30.5 of the Main Contract Conditions, an amount
equal to the Percentage of Certified Value Retained as stated in Appendix ‘C’.:

26.4(a) an amount equal to the Percentage of Certified Value Retained as stated in

Appendix ‘C’; or

26.4(b) when the amount retained in accordance to Clause 26.4(a) equals the Sub-
Contractor’s limit of Retention Fund, no further amount shall be retained.
The Sub-Contractor’s limit of Retention Fund shall be a sum equivalent to
the same percentage as the Limit of Retention Fund stated in Appendix ‘C’.

Employer may 26.5 The Contractor shall provide the Architect within fourteen (14) Days of the Architect’s
make direct request, reasonable proof that all amounts stated as due and included in the previous
payment to Sub- payment certificates to the Sub-Contractor have been discharged. Where the Contractor
Contractor fails to discharge his payment obligations and where requested by the Sub-Contractor,
the Architect may in accordance with Clause 27.6 of the Main Contract Condition issue a
certificate stating the amount in respect of which the Contractor has failed to provide
such proof. Where the Architect has so certified, the Employer may (but not obliged to)
pay such amounts directly to the Sub-Contractor and deduct the same from any sums due
or to become due to the Contractor. Any direct payment made under Clause 27.6 of the
Main Contract Conditions shall not create a privity of contract between the Employer
and Sub-Contractor.

PAM Sub-Contract 20182006 30

Payment of Sub- 26.6 Upon the issuance of the Certificate of Practical Completion, the Sub-Contractor shall be
Contractor’s entitled to the release of one half of the Retention Fund. Upon the issuance of the
Retention Fund Certificate of Making Good Defects under the Main Contract, the Sub-Contractor shall
be entitled to the release of the residue of the Retention Fund.

Final Account 26.7 Within three (3) Months after Practical Completion of the Sub-Contract Works, the Sub-
Contractor shall send to the Contractor with copies to the Architect and Consultant, all
documents necessary for preparing the Final Account. Such document shall contain all
the latest construction drawings and details (bound together), details of all quantities,
rates and prices and any adjustment of the Sub-Contract Sum and additional payment or
compensation claimed by the Sub-Contractor under the Sub-Contract together with any
explanation and supporting vouchers, documents and calculations which may be
necessary to enable the Final Account to be prepared by the Architect or Consultant. The
Final Account shall be completed within six (6) Months from receipt of all the
documents from the Sub-Contractor. The period for completion of the Final Account
shall be adjusted if there is any delay by the Sub-Contractor in sending the necessary
documents. In the event the Sub-Contractor fails to submit all documents necessary for
preparing the Final Account, the Architect or Consultant shall nevertheless complete and
issue the same based on the information available within the Period to complete the Final
Account stated in Appendix ‘A’. On completion of the Final Account, the Architect or
Consultant shall then send a copy of the document to the Contractor and Sub-Contractor.

26.7(a) If nothing in the said Final Account is disputed by the Contractor or Sub-
Contractor within three (3) Months from the date of receipt of the Final
Account from the Architect or Consultant, the Final Account shall be
conclusive and deemed agreed by the parties.

26.7(b) If either party disputes the Final Account, the party disputing the Final
Account shall by written notice to the other party (with copies to the
Architect and Consultant) set out any disagreement complete with
particulars within three (3) Months of the date of receipt of the Final
Account from the Architect or Consultant. The Architect or Consultant
within three (3) Months from the date of receipt of the grounds of dispute
shall either amend or not amend the Final Account. Any party disagreeing
with the amended Final Account or decision not to amend the Final Account
shall refer the dispute to arbitration under Clause 2931.0 within three (3)
Months from the date of receipt of the amended Final Account or decision
not to amend the Final Account. Failure to refer the dispute to arbitration
within the stipulated time, the Final Account or amended Final Account
shall deem to be conclusive and deemed agreed by the parties.

26.7(c) Any dispute on set-off which the Contractor is entitled to make under the
Sub-Contract shall be referred to arbitration.

Items in Final 26.8 The Final Account of the Sub-Contract Works shall show:
Account
26.8(a) the adjustment made to the Sub-Contract Sum;

26.8(b) the amounts to which the Architect considers that the Sub-Contractor is
entitled under the express provisions of the Sub-Contract;

26.8(c) the omission of all P.C. Sums and the related profit provided by the Sub-
Contractor in the Sub-Contract Documents and the substitution of the
amounts payable to the Sub-Contractors together with the pro-rata amount
for profit; and

26.8(d) the adjustment of Provisional Sums and omission of any Provisional Sums if
not expended.

The following shall not be included in the Final Account and are matters to be resolved
separately between the Contractor and Sub-Contractor:

26.8(e) any loss and/or expense or Liquidated Damages imposed by the Contractor
under Clause 16.1;

26.8(f) cost of remedial works carried out by the Contractor due to Defects in the
Sub-Contract Works under Clause 17.7;

PAM Sub-Contract 20182006 31

 26.8(g) cost of remedial works carried out by the Sub-Contractor due to Defects in
the Main Contract Works under Clause 17.8;

26.8(h) loss and/or expense claim by the Contractor as a result of any disruption
caused by any negligence, omission, default and/or breach of contract by the
Sub-Contractor under Clause 22.6;

26.8(i) loss and/or expense claim by the Sub-Contractor as a result of any

disruption caused by negligence, omission, default and/or breach of contract
by the Contractor under Clause 22.5;

26.8(j) set-off by the Contractor where it is expressly provided in the Sub-Contract

under Clause 26.13; and

26.8(k) interest payable by either of the parties to the other party under Clause
26.17.

Early final 26.9 If on completion of the Final Account, the Architect wishes to certify the final payment
payment to Sub- to the Sub-Contractor before the issuance of the Final Certificate to the Contractor under
Contractor the Main Contract, the Sub-Contractor shall provide an indemnity acceptable to the
Contractor against all of his liabilities under the Sub-Contract, and provided always that
all As-built Drawings and/or operation and maintenance manuals as specified in the Sub-
Contract and any warranties required to be provided under the Sub-Contract had been
submitted, the Architect shall then in accordance with and subject to the provision of
Clause 27.7 of the Main Contract Conditions, issue a certificate to the Contractor which
includes an amount to cover such final payment to the Sub-Contractor. The Contractor
shall pay to the Sub-Contractor the amount so certified taking into consideration any
outstanding claims between the Contractor and Sub-Contractor under Clause 26.8. The
payment shall be made within seven (7) Days after the Period of Honouring Certificates.

Final payment 26.10 The Final Account shall be conclusive on the final value of the Sub-Contract Works with
and Final the exception of any outstanding claims between the Contractor and Sub-Contractor
Certificate not under Clause 26.8. The final payment to the Sub-Contractor or the issuance of the Final
conclusive Certificate under the Main Contract shall not be conclusive evidence that any work,
materials and goods to which it relates and designs (if any) executed by the Sub-
Contractor are in accordance with the Sub-Contract.

Conclusiveness 26.11 Unless a written notice for arbitration shall have been given under Clause 2931.0 by
of the Final either party within the stipulated time stated in Clause 26.7, the Final Account or the last
Account amended Final Account shall be conclusive and deemed agreed by the parties other than
any outstanding items to be resolved separately between the Contractor and Sub-
Contractor under Clauses 26.8(e) to 26.8(k), except where the Final Account is
erroneous by reason of:

26.11(a) fraud, dishonesty or fraudulent concealment relating to the Sub-Contract

Works; or

26.11(b) any arithmetical errors in any computation.

Commencement 26.12 In the event that a written notice of arbitration has been served, the Contractor is obliged
of arbitration under Clause 34.1037.6 of the Main Contract Conditions to commence arbitration
proceedings proceedings after Practical Completion or alleged Practical Completion of the Main
Contract Works or determination or alleged determination of the Main Contractor’s
employment under the Main Contract or abandonment of the Main Contract Works.

Set-off claims by 26.13 The Contractor shall be entitled to set-off the amount of all cost incurred and loss and
Contractor expense where it is expressly provided under Clauses 7.4, 14.3, 16.1, 17.3(b), 17.3(c),
17.5, 17.6, 17.7, 20.6, 26.17 and Appendix ‘B’. No set-off under this clause may be
made unless:

26.13(a) the Contractor has submitted to the Sub-Contractor complete details of their
assessment of such set-off; and

26.13(b) the Contractor has given the Sub-Contractor a written notice delivered by
hand or by registered post, specifying his intention to set-off the amount and
the grounds on which such set-off is made. Unless expressly stated
elsewhere, such written notice shall be given not later than twenty eight (28)
Days before any set-off is deducted from any payment by the Contractor.

PAM Sub-Contract 20182006 32

 If the Sub-Contractor after receipt of the written notice from the Contractor, disputes the
amount of set-off, the Sub-Contractor may within twenty one (21) Days of receipt of
such written notice, send to the Contractor by hand or by registered post a statement
setting out the reasons and particulars for such disagreement. If the parties are unable to
agree on the amount of set-off within a further twenty one (21) Days after the receipt of
the Sub-Contractor’s response, either party shall refer the dispute to adjudication under
Clause 2830.1. The Contractor shall not be entitled to exercise any set-off unless the
amount has been agreed by the Sub-Contractor or the adjudicator has issued his decision.

Set-off by 26.14 Where the Employer exercises the right of set-off under the provisions of the Main
Employer under Contract and/or deduct any Liquidated Damages from any payment due to the
the Main Contractor, then the payment or non payment to the Contractor by the Employer after
Contract such set-off shall be deemed to be payment received in full by the Contractor on the date
such payment is due.

Suspension of 26.15 Without prejudice to the Sub-Contractor’s rights to determine his own employment
Sub-Contract under Clause 24.0, if the Contractor fails or neglects to pay the Sub-Contractor the
Works for non amount due as shown in the payment certificate (less any set-off which the Contractor is
payment expressly entitled to make under the Sub-Contract) and such failure shall continue for
fourteen (14) Days after the receipt of a written notice delivered by hand or by registered
post from the Sub-Contractor stating that if payment is not made within the fourteen (14)
Days, the Sub-Contractor may by a further written notice delivered by hand or by
registered post, forthwith suspend the execution of the Sub-Contract Works until such
time when payment is made. Provided always that such notice shall not be given
unreasonably or vexatiously.

Suspension of 26.16 Where under the Main Contract, the Contractor exercises his right to suspend
Main Contract performance of his obligations, the Contractor shall so notify the Sub-Contractor in
Works by the writing and may direct the Sub-Contractor to suspend performance of the Sub-Contract
Contractor Works. The Sub-Contractor shall be entitled to an appropriate extension of time under
under the Main Clause 21.0 and loss and/or expense under Clause 22.0.
Contract

Interest 26.17 If the Contractor fails to pay the Sub-Contractor the amount due on any certificate (less
any loss and/or expense or any Liquidated Damages under Clause 16.1 and set-off under
Clause 26.13) seven (7) Days after the Period of Honouring Certificates, or the Sub-
Contractor owes a debt or fails to pay any sum due and owing to the Contractor within
twenty-one (21) Days after receipt of written notification by the Contractor of such debt
or amount owing, a simple interest based on the Maybank Base Lending Rate plus one
(1) percent shall be payable by the defaulting party on such outstanding amount until the
date payment is made.

27.0 General Attendance Upon Sub-Contractor

General 27.1 General Attendance as stated in Appendix ‘B’ to the Sub-Contract Conditions shall be
Attendance provided by the Contractor to the Sub-Contractor. Save as otherwise provided in the
General Attendance, the Sub-Contractor shall at his own expense provide all additional
services and facilities or agree with the Contractor to provide the services and facilities at
additional cost to be agreed between them.

Use of 27.2 The Contractor, Sub-Contractor, their employees and workmen respectively in common
scaffolding with all other Person having a like right for the purposes of the Main Contract and Sub-
Contract Works shall be entitled to use any standing scaffolding belonging to or
provided by the Contractor or Sub-Contractor as the case may be, while it remains so
standing upon the Site. The Contractor and Sub-Contractor shall give written notice to
the other party prior to the removal of any standing scaffolding.

Contractor and 27.3 The Contractor, Sub-Contractor, their employees and workmen respectively in common
Sub-Contractor with all other Person having a like right for the purposes of the Main Contract and Sub-
shall not Contract Works shall not wrongfully use or interfere with the construction plant, ways,
wrongfully scaffolding, temporary works, appliances or other property respectively belonging to or
interfere provided by either of them.

PAM Sub-Contract 20182006 33

 28.0 Mediation

Mediation under 28.1 Notwithstanding Clauses 30.0 and 31.0 of the Sub-Contract Conditions, upon the written
PAM rules agreement of both the Contractor and Sub-Contractor, the parties may refer any dispute
for mediation. If the parties fail to agree on a mediator after twenty one (21) Days from
the date of the written agreement to refer the dispute to mediation, any party can apply to
the President of Pertubuhan Akitek Malaysia to appoint a mediator. Upon appointment,
the mediator shall initiate the mediation in accordance with the current edition of the
PAM Mediation Rules or any modification or revision to such rules.

Mediation shall 28.2 Prior reference of the dispute to mediation under Clause 28.1 shall not be a condition
not prejudice the precedent for its reference to adjudication or arbitration by either the Contractor or Sub-
parties’ rights to Contractor, nor shall any of their rights to refer the dispute to adjudication under Clause
adjudication or 30.0 or arbitration under Clause 31.0 of these Sub-Contract Conditions be in any way
arbitration prejudiced or affected by this clause.

29.0 Expert Determination

Disputes on all 29.1 At any time, the parties by written agreement may refer any disputes on all matters for
matters determination by an expert.

Expert 29.2 If the parties fail to agree on an expert after fourteen (14) Days from the date of the
determination written agreement, any party can apply to the President of Pertubuhan Arkitek Malaysia
under PAM to appoint an expert. Upon appointment, the expert shall initiate the expert determination
Rules in accordance with the current edition of the PAM Expert Determination Rules or any
modification or revision to such rules.

Expert 29.3 Prior reference of the dispute under Clause 29.1 shall not be a condition precedent for its
determination reference to adjudication or arbitration by either the Contractor or the Employer, nor
shall not shall any of their rights to refer the dispute to adjudication under Clause 30.0 or
prejudice the arbitration under Clause 31.0 of these Sub-Contract Conditions be in any way prejudiced
parties’ rights to or affected by this clause.
adjudication or
arbitration

2830.0 Adjudication

Claims and set- 2830.1 Reference to adjudication is a condition precedent to arbitration for disputes under
off disputes Clauses 22.5, 22.6 and 26.13 before practical completion of the Main Contract Works.
referred to The parties by written agreement are free to refer any other disputes to adjudication. Any
adjudication dispute under Clauses 22.5, 22.6 and 26.13 after practical completion of the Main
Contract Works shall be referred to arbitration under Clause 2931.1.

Notice to refer to 2830.2 Where a party requires a dispute or difference under Clause 2830.1 to be referred to
adjudication adjudication, such disputes or differences shall be referred to an adjudicator to be agreed
between the parties. If after the expiration of twenty one (21) Days from the date of the
written notice to concur on the appointment of the adjudicator, there is a failure to agree
on the appointment, the party initiating the adjudication shall apply to the President of
Pertubuhan Akitek Malaysia to appoint an adjudicator, and such adjudicator so
appointed shall be deemed to be appointed with the agreement and consent of the parties
to the Contract.

Adjudication 2830.3 Upon appointment, the adjudicator shall initiate the adjudication in accordance with the
Rules current edition of the PAM Adjudication Rules or any modification or revision to such
rules.

Decision of the 2830.4 If a party disputes the adjudicator’s decision, he shall nevertheless be bound by the
adjudicator adjudicator’s decision until Practical Completion, but shall give a written notice to the
other party to refer the dispute which was the subject of the adjudication to arbitration
within six (6) Weeks from the date of the adjudicator’s decision. The adjudicator’s
decision shall be final and binding on the parties if the dispute on the adjudicator’s
decision is not referred to arbitration within the stipulated time. The parties may settle
any dispute with the adjudicator’s decision by written agreement between the parties or
by arbitration under Clause 2931.0.

PAM Sub-Contract 20182006 34

 2931.0 Arbitration

Disputes 2931.1 In the event that there is a dispute over any adjudicator’s decision, and/or any dispute of
referred to whatsoever kind between the Contractor and Sub-Contractor in connection with the Sub-
arbitration Contract, it shall be referred to an arbitrator agreed between the parties or failing such
agreement, the arbitrator shall be appointed in accordance with Clause 34.637.2 of the
Main Contract Conditions. Such arbitration proceedings shall not commence until after
practical completion or alleged practical completion of the Main Contract Works or
determination or alleged determination of the Sub-Contractor’s employment or
abandonment of the Sub-Contract Works or Main Contract Works. The arbitration
proceedings shall be in accordance with the provisions of the Arbitration Act 2005 or
any statutory modification or re-enactment to the Act and the current edition of the PAM
Arbitration Rules or any modification or revision to such rules.

Powers of 2931.2 The arbitrator shall without prejudice to the generality of his powers, have power:
arbitrator
2931.2(a to rectify the Sub-Contract so that it accurately reflects the true agreement
) made by the Contractor and Sub-Contractor;

2931.2(b to direct such measurements and/or valuations as may in his opinion be

) desirable in order to determine the rights of the parties;

2931.2(c to ascertain and award any sum which ought to have been the subject of or
) included in any certificate;

2931.2(d to open up, review and revise any certificate, opinion, decision, requirement,
) or notice;

2931.2(e to determine all matters in dispute submitted to him in the same manner as if
) no such certificate, opinion, decision, requirement or notice had been given;

2931.2(f) to award interest from such dates at such rates and with such rests as he
thinks fit:

2931.2(f)( on the whole or part of any amount awarded by him in respect

i) of any period up to the date of the award;

2931.2(f)( on the whole or part of any amount claimed in the arbitration

ii) and outstanding at the commencement of the arbitral
proceedings but paid before the award was made, in respect of
any period up to the date of payment; and

2931.2(g to award interest from the date of the award (or any later date) until
) payment, at such rates and with such rests as he thinks fit on the outstanding
amount of any award.

Consolidation of 2931.3 If any dispute arises in connection with the Main Contract and such dispute concerns the
arbitration Sub-Contract Works, the Contractor may by written notice to the Sub-Contractor require
proceedings that any such dispute under the Sub-Contract be referred to the appointed arbitrator
under the Main Contract subject to the agreement of the Employer (such agreement not
to be unreasonably withheld) and provided always that the arbitrator’s hearing of
witnesses has not commenced. Where the arbitrator is willing to act and has no conflict
of interest in so acting, and the Sub-Contractor has no valid grounds why the arbitrator
should not act under the Sub-Contract, such dispute shall be referred to the same
arbitrator. In such event, the arbitrator may consolidate the proceedings.

Appointment of 2931.4 In the event the Sub-Contractor objects to the arbitrator appointed in accordance with
arbitrator by Clause 2931.3, he shall submit his objection in writing to the Contractor. If the
Pertubuhan Contractor considers that the objection may be without merit, the Sub-Contractor shall
Akitek Malaysia agree to refer the objection to the President of Pertubuhan Akitek Malaysia to make a
final decision on the objection of the arbitrator, and both parties agree to be bound by
such decision.

PAM Sub-Contract 20182006 35

 Alternatively, the parties may concur in the appointment of a new arbitrator. If after the
expiration of twenty one (21) Days after a party has initiated the appointment of an
arbitrator, there is a failure to agree on the appointment, the party initiating the
arbitration shall apply to the President of Pertubuhan Akitek Malaysia to appoint a new
arbitrator, and such arbitrator so appointed shall be deemed to be so appointed with the
agreement and consent of the parties to the Sub-Contract.

30.0 Mediation

Mediation under 30.1 Notwithstanding Clauses 28.0 and 29.0 of the Sub-Contract Conditions, upon the written
PAM rules agreement of both the Contractor and Sub-Contractor, the parties may refer any dispute
for mediation. If the parties fail to agree on a mediator after twenty one (21) Days from
the date of the written agreement to refer the dispute to mediation, any party can apply to
the President of Pertubuhan Akitek Malaysia to appoint a mediator. Upon appointment,
the mediator shall initiate the mediation in accordance with the current edition of the
PAM Mediation Rules or any modification or revision to such rules.

Mediation does 30.2 Prior reference of the dispute to mediation under Clause 30.1 shall not be a condition
not prejudice the precedent for its reference to adjudication or arbitration by either the Contractor or Sub-
parties rights to Contractor, nor shall any of their rights to refer the dispute to adjudication or arbitration
arbitration under Clauses 28.0 and 29.0 of the Sub-Contract Conditions be in any way prejudiced or
affected by this clause.

321.0 Notice

Notice 321.1 Any written notice or other document to be given under the Sub-Contract shall be given
or sent by:

321.1(a) hand;

321.1(b) ordinary mail or registered post; or

321.1(c) facsimile transmission.; or

32.1(d) by electronic transmission.

Notice deem 321.2 Any written notice or other document shall be deemed to have been duly served upon
served and received by the addressee:

321.2(a) if delivered by hand, at the time of delivery;

321.2(b) if sent by ordinary mail or registered post, after three (3) Days of posting; or

321.2(c) if transmitted by way of facsimile transmission, at time of transmission.; or

32.2(d) if transmitted by way of electronic transmission, at time of transmission.

Proof of Notice 321.3 In proving the giving of a written notice or any other document under or in respect of the
Sub-Contract, it shall be sufficient to show:

321.3(a) in the case of hand delivery, a signed acknowledgement of receipt;

321.3(b) in the case of registered post, a receipt of posting from the Post Office; or

321.3(c) in the case of facsimile transmission, that the facsimile transmission was
duly transmitted from the dispatching terminal, as evidenced by a
transmission report generated by the transmitting equipment.; or

32.3(d) in the case of electronic transmission, that the electronic transmission was
duly transmitted from the dispatching terminal, as evidenced by a
transmission report generated by the transmitting equipment.

Written 321.4 All written communication shall be sent to the address stated in the Articles of
communication Agreement unless otherwise notified in writing.

PAM Sub-Contract 20182006 36

 332.0 Performance Bond

Submission of 332.1 The Sub-Contractor shall within fourteen (14) Days from receipt of the Letter of
Performance Appointment, submit to the Contractor a Performance Bond for a sum equivalent to the
Bond percentage of the Sub-Contract Sum stated in Appendix ‘A’ as a security for the due
performance and observance by the Sub-Contractor of his obligations under the Sub-
Contract.

Form of the 332.2 The Performance Bond shall be in the form issued in the terms and conditions specified
Performance in the Sub-Contract or otherwise approved by the Contractor.
Bond

Validity of the 332.3 The Performance Bond submitted by the Sub-Contractor shall remain valid until three (3)
Performance Months after the Completion Date for the Main Contract. Where the Sub-Contract Works
Bond would not be completed by the Completion Date for the Main Contract, the Contractor
shall instruct the Sub-Contractor before the expiry of the Performance bond, extend the
duration of the Performance Bond to expire three (3) Months after the projected Practical
Completion of the Main Contract Works.

Failure to extend 332.4 If the Sub-Contractor fails to provide or maintain the validity of the Performance Bond in
the validity accordance with this clause, then without prejudice to any other rights and remedies
which the Contractor may possess, the Contractor shall be entitled to withhold or deduct
an amount equal to the Performance Bond from any payment due or to become due to the
Sub-Contractor.

Payments from 332.5 In the event that the Contractor determines the employment of the Sub-Contractor in
the Performance accordance with Clause 23.0, or if there is any breach of the Sub-Contract, and subject to
Bond the Architect certifying such breach by the Sub-Contractor, the Contractor may call on
the Performance Bond and utilise and make payments out of or deduction from the
Performance Bond for the completion of and/or rectification of the Sub-Contract Works
and reimbursement of loss, expense and/or damage suffered by the Contractor. On
completion of the Sub-Contract Works, any balance of monies remaining from the
Performance Bond shall be refunded to the Sub-Contractor without interest.

Return of 332.6 In the event the Sub-Contractor determines his own employment in accordance with
Performance Clause 24.0, the Contractor shall within twenty eight (28)fourteen (14) Days return the
Bond Performance Bond to the Sub-Contractor for cancellation.

343.0 Governing Law

Governing Law 343.1 The law governing the Sub-Contract shall be the Laws of Malaysia.

PAM Sub-Contract 20182006 37

Appendix ‘A’ To The Sub-Contract Conditions
Clause

Sub-Contract Date of Commencement [if none stated is fourteen (14)

Days from the date of the Letter of Appointment] 15.1 ………………….……..……..…..

Sub-Contract Completion Date for the whole of the Sub-Contract Works 15.1 ………………………….………..

OR

Sub-Contract Completion Dates for sections of the Sub-Contract Works as follows:

Item Section of Sub-Contract Works Clause Period to complete section Earliest Latest
of work to be fixed by the commencement commencement
Notice to start work date on Site date on Site

1
15.1 ……….….………..Weeks ………………. ……………….

2
15.1 ……….….………..Weeks ………………. ……………….

3
15.1 ……….….………..Weeks ………………. ……………….

4
15.1 ……….….………..Weeks ………………. ……………….

5
15.1 ……….….………..Weeks ………………. ……………….

Liquidated Damages
(if agreed by the parties as an alternative to loss and/or expense)

(a) For the Sub-Contract Works 16.1 RM……………..………..per Day

OR
(b) Section of the Sub-Contract Works

16.1 RM……………..………..per Day

16.1 RM……………..………..per Day

16.1 RM……………..………..per Day

16.1 RM……………..………..per Day

16.1 RM……………..………..per Day

Period to complete the Final Account [if none stated is twelve (12)
Months from the date of Practical Completion of the Sub-Contract
26.7 …………………..………Months
Works]

Amount of Performance Bond [if none stated is 5% of the Sub-Contract

Sum] 332.1 RM ……………………………...

PAM Sub-Contract 20182006 38

Appendix ‘B’ To The Sub-Contract Conditions
General Attendance (Clause 27.0)

Note:

1. The Sub-Contractor shall refer to the Sub-Contract Bills for any amendments/variations to the items of attendance to be
provided by the Contractor. If there are any amendments/variations or inconsistencies in the Sub-Contract Bills with the
items of attendance provided below, the provisions in the Sub-Contract Bills shall take precedence over the items stated
below.

2. In the event the Contractor, at the request of the Sub-Contractor, provides services and facilities additional to the
General Attendance or if the Sub-Contractor fails to comply with any particular provisions, the extra cost for these
provisions, if provided by the Contractor shall be paid by the Sub-Contractor and the Contractor shall be entitled to set-
off the extra cost under Clause 26.13.

The following General Attendance shall be provided by the Contractor to the Sub-Contractor:

i) The Contractor shall afford free and full use of standing scaffolding as provided in Clause 27.2.

ii) The Contractor shall allow the Sub-Contractor shared use of messrooms, sanitary and welfare facilities.

iiii) The Contractor shall provide reasonable space only for the Sub-Contractor's office and storage accommodation. The
Sub-Contractor shall be responsible for the cost of erecting, maintaining, moving as necessary and ultimately removing
these facilities on completion of his Sub-Contract Works.

iv) The Contractor shall provide free use of temporary lighting and power for the safe access to and egress from the Main
Contract Works. Temporary lighting and power provided by the Contractor for general purposes, where available at or
near the site of the Sub-Contract Works, may be used by the Sub-Contractor. If the Sub-Contractor requires additional
lighting and power not provided by the Contractor, he shall at his own cost provide distribution cables and equipment
for his needs to connect to power sockets provided by the Contractor in reasonable locations.

v) The Contractor shall provide free use of reasonable water supply which will terminate at standpipes in reasonable
locations. A temporary water supply provided by the Contractor for other general purpose, where available at or near
the site of the Sub-Contract Works, may be used by the Sub-Contractor. If the Sub-Contractor requires additional water
distribution pipes not provided by the Contractor, he shall at his own cost provide such distribution pipes and
equipment for his needs to connect to water connection positions provided by the Contractor in reasonable locations.

vi) The Contractor shall provide to the Sub-Contractor datum, reference lines and levels relevant to the Sub-Contract
Works, and the Sub-Contractor shall use such datum, reference lines and levels to set out the Sub-Contract Works.

vii) The Contractor shall provide general temporary propping to the structure to facilitate the safe handling of all equipment
to their permanent positions.

viii) The Contractor shall provide to the Sub-Contractor free reasonable use of the Contractor’s existing hoisting and
cranage facilities for such times as they remain operational on Site. The Sub-Contractor shall be responsible at his own
cost for the distribution of items required for the execution of the Sub-Contract Works and shall provide any additional
hoisting and cranage facilities which may be required for that purpose.

ix) The Contractor shall assist in arranging for source of any special power supplies required by the Sub-Contractor.
(Current and fuel consumed shall be paid by the Sub-Contractor).

x) The Contractor shall at his own cost regularly remove all rubbish and debris off the Site. The Sub-Contractor shall
regularly clear away to a dump or any reasonable place designated by the Contractor within the Site, all rubbish
resulting from the execution of the Sub-Contract Works and shall keep all work areas tidy at all times and whenever
instructed by the Contractor.

xi) The Contractor shall organize and chair regular site meetings among all Sub-Contractors, Suppliers, etc. and shall
submit to the Architect and Consultant one (1) copy of the minutes of each of such meeting for their information.

PAM Sub-Contract 20182006 39

Appendix ‘B’ To The Sub-Contract Conditions (Cont’d)
It is to be noted that the Sub-Contractor shall include in the Sub-Contract Sum, inter alia, the costs in connection with the
following:

i) Provision in good time to the Contractor, Architect and Consultant, all details and particulars relating to their work in
regard to sizes and positions in which chases, holes, mortices and similar items are required to be formed or left in the
structure, and the Sub-Contractor shall be responsible to provide the requirements indicated. For the avoidance of
doubt, any provisions not notified to the Contractor, Architect and Consultant by the Sub-Contractor or installed within
the stipulated time required by the Sub-Contractor shall be provided by the Sub-Contractor at his own cost or if
provided by the Contractor, shall be at the cost of the Sub-Contractor.

ii) Provision of special temporary propping and strengthening to the structure to meet their specific requirements to
facilitate the safe handling of all equipment to their permanent positions.

iii) Unloading, getting in, storing, handling and hoisting of materials, construction plant and tools and bulky and/or heavy
equipment which forms part of the Sub-Contractor’s installation.

iv) Provision, erection, maintenance and removal of temporary office and storage accommodation including paying all
assessment and other charges.

v) Connection to temporary water, lighting and power supplies, made available by the Contractor for the execution of the
Main Contract Works, and supplying and running distribution pipes, distribution cables, leads and electrical gear
required.

vi) Provision of all fuel, gas, steam, special power supplies, and all other services that may be required for the starting,
testing, adjusting, balancing and commissioning of his installations. The Sub-Contractor shall also be responsible for
the provision of meters or sub-meters if required to register the current consumed and pay for all current or fuel
consumed if the testing and commissioning of the installations are connected to the permanent supply.

vii) Taking full responsibility for any loss of or damage to his construction plant, tools, equipment and other property on the
site.

viii) Keeping his works free from accumulation of rubbish and debris at all times as the progress of the work permits and on
the completion of the Sub-Contract Work, the Sub-Contractor shall clear and remove all rubbish and debris from his
premises to the final disposal points as directed by the Contractor for the Contractor’s final disposal and carting away
from the Site.

PAM Sub-Contract 20182006 40

Appendix ‘C’ To The Sub-Contract Conditions
The following are the details of the Appendix to the Main Contract Conditions:
Clause

Defects Liability Period [if none other stated is twelve 15.4 ……...………………………………….
(12) Months from the day stated in the Certificate of
Practical Completion of the Works]
Insurance cover for accidental bodily injury to or 19.1 and 20.A or RM……………………………………….
illness of third parties (whether fatal or not), 20.B or 20.C
accidental loss of or damage to property belonging to
third parties (the aggregate liability of the insurers
shall be limited by twice the limit of indemnity caused
by any one occurrence) [if none stated the insured
liability shall be not less than RM1 million]
Insurance deductible amount [if none stated shall be 19.1 and 20.A or RM……………………………………….
not more than RM50,000 an occurrence] 20.B or 20.C
Percentage to cover Professional fees for 20.A or 20.B or RM……………………………………….
reinstatement [if none stated is a sum equivalent to 20.C
10% of the Contract Sum]
Amount for removal of Debris [if none stated is a sum 20.A or 20.B or RM……………………………………….
not less than the equivalent of 1% of the Contract 20.C
Sum]
Value of existing structure together with all the 20.C RM……………………………………….
contents owned by the Employer or for which he is
responsible
Date of Commencement 21.021.1 …………...…………………………….
Completion Date 21.021.1 ………………...……………………….
Liquidated Damages 22.0 at the rate of RM ……..……… per Day
Sectional Completion (*) 21.021.2
Brief description of section of the Work Date of Completion Date Liquidated Damages at
Commencement (21.30) the rate of (22.10)
(21.20)
1 ……………………… ………………………. RM ...…….……per Day
2 ……………………… ………………………. RM ...…….……per Day
3 ……………………… ………………………. RM ...…….……per Day

Period of Delay [if none stated is a continuous period 21.10 and …………………………………...…….
of three (3) Months] 26.1(d)0
Interim Claim Interval [if none stated is one (1) 30.1 and 30.13 ………………………………………....
Month]
Period of Honouring Certificates [if none stated is 30.1 …………………………………………...
twenty one (21) Days from the date of the Certificate]
Percentage of the value of materials and goods 30.2 …………………………………………...
included in the Certificate [if none stated is 100%]
Percentage of Certified Value Retained [if none stated 30.5 …………………………………………...
is 105% of the value of work executed and materials
on site included in the certificate subject to the Limit
of Retention Fund]
Limit of Retention Fund [if none stated is 5% of the 30.5 RM…………………………………….
Contract Sum]
Period to complete the Final Account [if none stated 30.10 …………………………………………...
shall be fifteen (15) Months from the date of Practical
Completion]
Amount of Performance Bond [if none stated is 5% of 397.1 RM……………………………………...
the Contract Sum]
(*) Footnote - This is to be used when there are different completion dates for identified sections or parts of works

PAM Sub-Contract 20182006 41