IEM.

CE 2011
IEM.CE 2011

Institution of Engineers,
The Institution Engineers, Malaysia
Malaysia

IEM Form of Contract

for Civil Engineering
for Civil Engineering Works

2017
THIRD EDITION, JANUARY 2017

document has been prepared by The

This document The Institution
Institution of Engineers,
Engineers, Malaysia
and is recommended for
for general use for engineering construction
for civil engineering construction works in Malaysia.

This document
document may be cited as
as "IEM. CE
CE 2011"
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LII
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IEM Form
IEM Form ofof Contract
Contract
Civil Engineering
for Civil Engineering Works
Works
fl
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,l Articles of
Articles of Agreement
Agreement

J Conditions of
Conditions of Contract
Contract

l Clause
Clause ‘ Page
Page

~~1
11 DEFINITIONS AND
DEFINITIONS AND INTERPRETATIONS
INTERPRETATIONS 11
1.1 Definitions
Definitions 1I
1.2
1.2 Singular and Plural
Singular Phrral 3
1.3 Headings
Headings ■ 3
1.4
1.4 Clauses
Clauses 3
1.5 Joint and Several
Joint Several Liability
Liability 3

!1 22 ENGINEER AND
ENGINEER AND ENGINEER’S
ENGINEER'S REPRESENTATIVE
REPRESENTATIVE 3
2.1 Duties of
Duties ofEngineer
Engineer 3
2.2
2.2 Authority of
Authority of the
the Engineer
Engioeer 3
7 Named Individual
,J 2.3
2.4
2.4
Named Individual
Engineer's Representative
Engineer’s Representative
3
4
•· 2.5 Delegation of
Delegation of Authorities
Authorities by the
the Engineer
Engioeer 4
2.6
2.6 Appointment of
Appointment of Assistants
Assistants 4
] 2.7
2.7 Impartiality, Reasonableness
Impartiality, Reasonableness and
aod Timeliness
Timeliness 4

33 ENGINEER'S INSTRUCTIONS
ENGINEER’S INSTRUCTIONS 4
3.1 Instructions to
Instructions to be Writing
be in Writing 4
3.2
3.2 Confirmation of
Confirmation of Oral
Oral Instructions
Instructions 5
3.3 Failnre to Comply
Failure Comply with
with Engineer’s
Engioeer's Instructions
Instructions 5

4 CONTRACT DOCUMENTS
CONTRACT DOCUMENTS 55
4.11
4. Documents forming
Documents forming the
the Contract
Contract 5
4.2
4.2 Documeots Mutually
Documents Mutually Explanatory
Explanatory 5
4.3 Additional Costs
Additional Costs Incurred
Incurred 5
4.4
4.4 Custody of
Custody of Contract
Contract Documents
Documents 5
4.5 Confidentiality of
Confidentiality of Contract
Contract Documents
Documents 6
4.6
4.6 Language and
Language and Law
Law , 6

5 DRAWINGS
DRAWINGS 6
5.1 Supply of
Supply of Drawings
Drawings 6
55.2
2 Fnrther Drawings
Further Drawings byby the Engineer
Engioeer 6
5.3
5.3 Requests for
Requests for Further
Further Drawings
Drawings 6
55.4
.4 Delay in
Delay in Issuing
Issuing Further
Fnrther Drawings
Drawings 7

66 CONTRACTOR'S DESIGN
CONTRACTOR’S DESIGN 7
66.1
.1 Permanent Works
Permanent Works Designed
Designed by Contractor
by Contractor 7
6.2 Amendment or
Amendment or Modification
Modification of
of Contractor’s
Contractor's Design
Design on
on Permanent
Permanent Works
Worlcs 7
6.3 Temporary Works
Temporary Designed by Contractor
Works Designed Contractor 88
6.4
6.4 Delay in
Delay in Approving
Approving Design
Design 88
6.5 Responsibility Unaffected
Responsibility Unaffected by Approval
Approval 88
6.6 Intellectual Property
Intellectual Property Rights
Rights 88

77 EMPLOYER'S GENERAL
EMPLOYER’S GENERAL OBLIGATIONS
OBLIGATIONS 8
7.1 Employer's General
Employer’s General Obligations
Obligations 88

'] 8
8.1
CONTRACTOR'S GENERAL
CONTRACTOR’S
Contractor's General
Contractor’s
GENERAL OBLIGATIONS
General Obligations
Obligations
OBLIGATIONS 9
9

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J
9
9.1
NOTICES
NOTICES
Notices
Notices
9
99

.-:~ 10 PERFORMANCE SECURITY

PERFORMANCE SECURITY 10
10.!
10.1 Submission of
Submission of Performance
Performance Security
Security IO
10
J
]
s
Page i
Page

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1
Clause Page

10.2
10.2 Requirements of of Performance Security
Perfonnance Security 10
10.3 Extension of
Extension of Validity
Validity 10
10.4 Call on
Call Security
Performance Security
on Performance 10
10.5
10.5 Utilisation of the Proceeds
Utilisation of of the Performance
Proceeds of Security
Performance Security 11
11

11 TBESITE
THE SITE 11
11.1 Possession Site
of the Site
Possession of 1111
111.2
1 .2 Site
Designated Site
Designated 11 ..J
111.3
1.3 Contractor to Keep
Contractor Keep Site Clear
Site Clear 1111
111.4
1 .4 Inspection of
Inspection Site
of the Site 1111
j
12 SUFFICIENCY OF
SUFFICIENCY OF TENDER ADVERSE PHYSICAL
AND ADVERSE
TENDER AND CONDITIONS
PHYSICAL CONDITIONS 12
12.1 Sufficiency Tender
of Tender
Sufficiency of 12
12.2 Conditions
Physical Conditions 12
D
12.2 Adverse
Adverse Physical 12
12.3
12.3 Taxes and
Taxes Duties
and Custom Duties 12

13 WORKS CCORDANCEWI
TO BE IN ACCORDANCE
WORKSTOBEINA THCONTRACT
WITH CONTRACT 12
Contract
Accordance with Contract
13.1
13.2
13.2

14
Works to be in Accordance
Works
Contractor to Comply with Engineer’s
Contractor

CONTRACTOR’S SUBMISSIONS
CONTRACTOR'S SUBMISSIONS
Instructions
Engineer's Instructions
12
13

13
0
.

14.1
14.2
14.3
14.3
14.4
14.4
Documents to
Documents
The Master
The

Organisation Chart
Organisation
Submitted
to be Submitted
Program
Master Program
Statement
General Method Statement
13
13
14
14
14
:0
14.5
14.5
14.6
14.7
‘S’
Plant
Curves
'S' Curves

Labour
Utilisation Program
Plant Utilisation
Forecast
Labour Forecast
Program
14
14
14
,0
14.8 Monthly Report
Monthly Report 14
14.9 Contractor not
Contractor Relieved of
not Relieved Duties
of Duties 15
14.10
14.10 Contractor to Make
Contractor Revisions
Make Revisions 1155

15
15 SITE ADMINISTRATIONN
SITE ADMINISTRATIO 15
15.1
15.1 Contractor’s Supervision
Contractor's Supervision 15
15.2
15.2 The Site
The Manager
Site Manager 15
15.3
15.3 The Contractor’s
The Employees
Contractor's Employees 15
115.4
5.4 Hours of
Days and Hours
Days Working
of Working 116
6

16 SUPPLEMENTARY SOIL
SUPPLEMENTARY INVESTIGATION
SOIL INVESTIGATION 16
16.1 Additional Boreholes
Additional Boreholes 16
16
E·-.
17
17 SETTING OUT
SETTING OUT 17
17.1
17.2
17.2
Accurate Setting Out
Accurate Setting
Errors in Setting
Errors Out
Setting Out
17
17
·~
{:
17.3 Approval
Approval ofof Setting Out 17
17
t7
18 ACCESS FOR THE
ACCESS ENGINEER
TBE ENGINEER 18
118.1
8 .1 Access
Access for Engineer
for the Engineer 18

19 SITE SECURITY
SAFETY AND SECURITY
SITE SAFETY 18
19.1
19.1 Site Safety
Site Safety 18
19.2
19.2 Site Security
Site Security 18
19.3 Employer's Responsibility
Employer’s Safety and
Responsibility on Safety Security
and Security 1199

20
20 CARE OF
CARE THE WORKS
OF THE 19
20.1 Care of
Care Works
the Works
of the 19
20.2 Contractor’s Responsibility to
Contractor's Responsibility Good Damage
Make Good
to Make Loss
Damage or Loss 19
20.3 Damage
Damage oror Loss
Loss Due Employer's Risks
Due to Employer’s 19
20.4
20.4 Employer's Risks
Employer’s • 19

21A
21A INSURANCE OF
INSURANCE WORKS*
OF WORKS* 20
20
21A.l
21A.1 Contractor's All Risks
Contractor’s Insurance Policy
Risks Insurance Policy 20
21A.2 Terms of
Principal Terms
Principal Contractor's All Risks Insurance
of the Contractor’s Policy
Insurance Policy 20
20
21A.3
21A.3 Evidence of
Evidence of Insurance Policy
Insurance Policy • 20
21A.4 Failure Insure
Failure to Insure 21
221A.5
1 A.5 Contractor Deductibles
Liable for Deductibles
Contractor Liable 2211
21A.6 Compliance With Policy
Compliance Conditions
Policy Conditions 21

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 Clause
Clause Page
Page

221B
IB INSURANCE OF
INSURANCE OF WORKS*
WORKS* 21
21
2IB.1
21B.1 Employer's All Risks
Employer’s Risks Insurance
Insurance 21
2IB.2
21B.2 Principal Terms
Principal Tenns of
of the
the Employer’s
Employer's Arranged
Arranged AllAll Risks
Risks Insurance
Insurance Policy
Policy 21
2IB.3
21B.3 Production of
Production of Employer’s
Employer's All Risks
Risks Insurance
Insurance Policy
Policy 22
22
2IB.4
21B.4 Contractor Liable
Contractor Liable for
for Deductibles
Deductibles 22
22
2IB.5
21B.5 Compliance With Policy
Compliance With Policy Conditions
Conditions 22
22

22
22 INDEMNITY
INDEMNITY 22
22
22.1
22.1 Injury to
Injury to Persons
Persons and
and Damage
Damage to
to Properly
Property 22
22
22.2
22.2 Indemnity by the
Indemnity the Employer
Employer 23
22.3
22.3 Contribution
Contribution 23
22.4
22.4 Contractor to Make
Contractor Make Good
Good Damage
Damage to Property
Property 23
22.5
22.5 Failure of Contractor
Failure Contractor to Make
Make Good
Good Damage
Damage to
to Property
Property 23
23

23 INSURANCE FOR
INSURANCE FOR WORKMEN
WORKMEN 24
24
23.1 SOCSO for
SOCSO for Malaysian
Malaysian Workmen
Workmen 24
24
23.2
23.2 Workmen,s Compensation Insurance
Workmen’s Compensation Insurance for
for Non-Malaysian Workmen
Non-Malaysian Workmen 24
24
23.3
23.3 Insurance for
Insurance for Malaysian
Malaysian Workmen
Workmen not
not subject
subject to SOCSO
to SOCSO 24
24
23.4
23.4 Defaults in
Defaults Compliance
in Compliance 25
25

24
24 COMPLIANCEWI'IHLAWS
COMPLIANCE WITH LAWS 25
25
24.1
24.1 Contractor to Comply
Contractor Comply with Laws
Laws 25
25
24.2
242 Employer to
Employer to Obtain
Obtain Planning
Planning Approval
Approval and
and Pay
Pay Capital
Capital Contributions
Contributions 2255
24.3
24.3 Changes in
Changes Law after Submission
in Law Submission of
of Tender
Tender 25
25

25 PATENT RIGHTS
PATENT RIGHTS AND
AND ROYALTIES
ROYALTIES 26
26
25.1 Patent Rights
Patent Rights and Other
Other Protected
Protected Rights
Rights 26
25.2
252 Royalties
Royalties 27

26
26 ANTIQUITIES AND
ANTIQUITIES AND FOSSILS
FOSSILS 27
27
26.1
26.1 Ownership of
Ownership of Discovery
Discovery 27
27
26.2
26.2 Protection of
Protection of Discovery
Discovery 27
27

27.
27. ENVIRONMENTAL MANAGEMENT
ENVIRONMENTAL MANAGEMENT AND
AND QUALITY
QUALITY ASSURANCE
ASSURANCE 27
27
27.1 Environmental Matters
Environmental Matters 27
27
'7
,,
27.2
272 Quality Plan
Quality Plan 27
27

!J 28 LABOUR
LABOUR 27
27
28.l
28.1 Employment of
Employment of Workmen
Workmen and Labour
Labour 27
27
28.2
28.2 Returns of
Returns of Labour
Labour 27
27

29 INTERFERENCE WITH
INTERFERENCE WI'IH TRAFFIC
TRAFFIC 28
28
29.1
29.1 Interference with
Interference with Traffic
Traffic 28
28

30.
30. TRANSPORT
TRANSPORT 28
28
29.1
29.1 Transport of
Transport of Contractor’s
Contractor's Plant
Plant and Equipment 28
28
29.2
29.2 Avoidance of
Avoidance of Damage
Damage to to Roads
Roads 28
28

31
31 USE OF EXPLOSIVES
USE OF EXPLOSIVES 28
28
_,I 31.1
31.1 Use of Explosives
Use of Explosives 28
28

32
32 FACILITIES FOR
FACILITIES FOR OTHER
O'IHER CONTRACTORS
CONTRACTORS 28
28
:1LJ 32.1
32.2
32.2
Opportunities for Other
Opportunities
Facilities for
Facilities for Other
Other Contractors
Contractors
Other Contractors
Contractors
28
28
29
29

17 33
33 MATERIALS AND
MATERIALS AND EQUIPMENT
EQUIPMENT SUPPLIEDSUPPLIED BY EMPLOYER
EMPLOYER 29
i 33.1 Supply aa Requirement
Supply Requirement of
of the
the Contract
Contract 29
29
33.2
33.2 Separate Supply
Separate Supply Agreement
Agreemeut between
between the
the Employer and the Contractor
Employer and Contractor 30
30

34
34 OWNERSHIP OF
OWNERSHIP OF EXCAVATED
EXCAVATED MATERIALS
MATERIALS 30
30
34.1 Ownership of
Ownership of Excavated
Excavated Materials
Materials 30
30
34.2
34.2 Disposal of
Disposal of Excavated
Excavated Materials
Materials 30
30

3355 CLEARANCE OF
CLEARANCE OF SITE
SITE 30
30
35.1
35.1 Clearance of
Clearance of Site on
on Completion
Completion 30
30
35.2
35.2 Clearance of
Clearance of Site
Site on
on Expiry
Expiry of
of Defects
Defects Liability
Liability Period
Period 30
30

', I Page iii

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Clause
Clause
Page
C

36.
36. MATERIALS AND
MATERIALS AND WORKMANSHIP
WORKMANSHIP 31
36.1 Quality of Materials
Quality of Workmanship
Materials and Workmanship 3311
36.2
36.2 Samples
Supply ooff Samples 31
36.3
36.3 Tests
Tests 31

37
37 EXAMINATION OF
EXAMINATION OF WORK
WORK BEFORE COVERING UP
BEFORE COVERING 32
32
37.1
37.1 Examination
Examination of Works
of Works 32
32
372
37 2 Uncovering of Works
of Works 32
32

38
38 REMOVAL OF
REMOVAL REJECTED WORKS
OF REJECTED 32
32
38.1
38.1 Removal
Removal ofof Rejected Works or
Rejected Works Materials
or Materials 32
38.2
38.2 Defaults in
Defaults Removal
in Removal 32
32
38.3
38.3 Contractor’s Proposal
Contractor's Proposal 33

39.
39. CONSTRUCTIONAL PLANT
CONSTRUCTIONAL PLANT AND TEMPORARY WORKS
EQUlPMENT, TEMPORARY
AND EQUIPMENT, WORKS AND MATERIALS
AND MATERIALS 33
39.1
39.1 Plant and Equipment
Constructional Plant
Constructional Equipment and Temporary Works Exclusively
Temporary Works Works
Exclusively for the Works 33
39.2
39.2 Unfixed Materials
Unfixed and Goods
Materials and Goods 33
39.3
39.3 Removal ofof any Constructional Works, Unfixed
Temporary Works,
Equipmen~ Temporary
Constructional Plant and Equipment, Unfixed Materials and Goods
Materials and 33
39.4
39.4 The Employer not Liable for
The Employer Damage
for Damage 34
39.5
39.5 Conditions Hired or
Conditions for Hired Constructional Plant
Leased Constructional
or Leased Equipment
and Equipment
Plant and 34
34
39.6 Incorporation of
Incorporation Clause into
of Clause Sub-Contracts
into Sub-Contracts 34.
34-

40.
40. COMMENCEMENT OF
COMMENCEMENT OF WORKS
WORKS 34
40.1 Date Commencement
Date for Commencement 34
34

41 SITE POSSESSION
SITE POSSESSION 35
35
41.1
41.1 Site Possession
Site Possession 35
41.2
41.2 Failure to Give Site
Failure to Possession
Site Possession 35

42.
42. SUSPENSION
SUSPENSION 36
36
42.1
42.1 Instruction Suspend
Instruction to Suspend 36
42.2
42.2 Consequences of
Consequences Suspension
of Suspension 36
42.3
42.3 Suspension
Prolonged Suspension 36

43. DATE
DATE FOR COMPLETION
FOR COMPLETION 37
37
43.1
43.1 Date Completion
Date for Completion 37
37
43.2
43.2 Entitlement to Vary
Entitlement Completion
for Completion
Vary Date for 37
37

44
44 EXTENDED DATE
EXTENDED DATE FOR COMPLETION
FOR COMPLETION 37
37
44.1
44.1 Extended Date
Extended Date for Completion
for Completion 37
37
44.2
44.2 Contractor's Notice
Contractor’s Notice 38
44.3 The Certification
Engineer's Certification
The Engineer’s 38
44.4
44.4 Certification after Date
Certification after Completion
Date for Completion 39

45 RATE CONSTRUCTION
RATE OF CONSTRUCTION 39
39
45.11
45. Slow Progress Construction
of Construction
Progress of 39
39

46 LIQUIDATED DAMAGES
LIQUIDATED DAMAGES 39
39
46.1
46.1 Liquidated Damages
Liquidated Damages 39
39
46.2
46.2 Certificate ofNon-Completion
Certificate of Non-Completion 39
39
46.3
46.3 The Common Law
Employer's Common
The Employer’s Rights
Law Rights 40

47
47 CERTIFICATE COMPLETION
CERTIFICATE OF COMPLETION 40
47.1
47.1 Notice
Notice ofof Completion ofWorks
Completion of Works 40
47.2
47.2 Certificate Completion
of Completion
Certificate of 40
47.3
47.3 The Meaning
The Meaning of Completion
of Completion 40

48
48 DEFECTS LlABILITY
DEFECTS LIABILITY ’ 41
48.1
48.1 Defects .Liability
Defects Period
Liability Period 41
48.2
48.2 Cost Make good
of Make
Cost of Defects
good Defects 41
41
48.3
48.3 Failure to Make
Failure Good Defects
Make Good Defects 41
41
48.4
48.4 Certificate Defects
of Making Good Defects
Certificate ofMaking 42
48.5
48.5 Diminution in the
Diminution Works
the Value ooff the Works ’ 42

49
49 SECTIONAL COMPLETION
SECTIONAL COMPLETION 42
49.1
49. 1 Completion Sections
Completion in Sections 42

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:. i Clause
Clause Page
Page
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50
50.1
CONTRACTOR TO
CONTRACTOR TO SEARCH
Contractor to Search
Contractor Search
SEARCH 43
43

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51
51.1
51.2
51.2
51.3
VARIATIONS
VARIATIONS

What
and Power
Duty and
What Can be
Power to Issue
Issue Variations
Variations
be Variations
Change in Quantity
Change Quantity
Variations
43
43
43
43
44
44

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:f:
51.4
51.4
51.5

52
Contractor to
Contractor
Tracking of
Tracking

VALUATION OF
VALUATION
Carry Out-Variations
to Cany
of Variations
Ou~ Variations
Variations

OF VARIATIONS
VARIATIONS
44
44
44
44

44
44

n ,-,.-)
~;'-
52.1
52.1
52,2-
52.2
52.3
52.3
52.4
52.4
Valuation Rules
Valuation

Payment of
Payment
Rules
Provisional-Rates
Provisional-Rates
of Variations
Agreement on
Agreement
Variations
on Rates
Rates
44
44
44
44
45
45
45

n
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52.5
52.5 Valuation by
Valuation Daywork
by Daywork 45
52.6
52.6 Procedure for
Procedure for Daywork
Daywork Claim
Claim 45
~;.

53. PROCEDURE FOR FOR CLAIMS

CLAIMS 45
Jj
53. PROCEDURE 45
53.1 Notice of
Notice Claim
of Claim 45
53.2
53.2 Records Keeping
Records Keeping 46
46
il<- 53.3 Substantiation of
Substantiation oftlle Claim
the Claim 46
46

r
~it: 53.4
53.4 Payment of
Payment oftlle Claim
the Claim 47
;; i 53.5
53.5 Engineer's Authority
Engineer’s Autllority 47
47
~J
3 S v)

54 ASSIGNMENT AND
ASSIGNMENT AND SUB-CONTRACTING
SUB-CONTRACTING 47
47
t·_
t-j cs

54.1 Assignment
Assignment 47
47

,,,fJ
54.2 Sub-Contracting
Sub-Contracting 47
47

55.
55. LUMP SUM WORKS
LUMPSUM WORKS AND AND REMEASURED
REMEASURED WORKS
WORKS 47
47
55.1 Works Included
Works Included in
in the
tlle Contract
Contract Sum
Sum 4477

0,,:-·
55.2
55.2
55.3
55.3
55.4
55.4
55.5
55.5
Contract Sum
Contract

Metllod of
Method
Sum and
Remeasured Works
Remeasured
and Rates
Works
Rates are All Inclusive

of Measurement
Variation of
Variation
Measurement
of Rates
Inclusive 47
47
47
47
48
48
48
48

t] -
56.
56.
56.1
PRIME COST
PRIME
Prime Cost
Prime
COST AND
AND PROVISIONAL
Sum and
Cost Sum
PROVISIONAL SUMS
Provisional Sum
and Provisional
SUMS 48
48
48
48

(l 56.2
56.2
56.3
56.3
Operation ofthe
Operation oftlle Prime
Operation of
Operation oftlle
Prime Cost
Cost Sums
Suros
Provisional Sums
the Provisional Sums
48
48
49
49
,) 56.4
56.4 Conversion of
Conversion of Provisional
Provisional Sum
Sum to Prime
Prime Cost
Cost Sum
Sum ._ 49
49

57.
57. NOMINATED SUB-CONTRACTORS
NOMINATED SUB-CONTRACTORS 49
49

ij
~7 57.1
57.2
57.2
57.3
57.4
57.4
Procedure to
Procedure
Objection to
Objection
to Nomination
Nomination
to Nomination
Nomination
Payment to Nominated
Payment
Defaults of
Defaults ofNominated
Sub-Contractors
Nominated Sub-Contractors
Sub-Contractor
Nominated Sub-Contractor
49
49
50
50
5511

µ ' 57.5
57.5

58.
Contractor's Responsibility
Contractor’s

INTERIM PAYMENT
INTERIM
Responsibility

PAYMENT CERTIFICATES
CERTIFICATES AND AND PAYMENT
PAYMENT
52
52

52
52

h~
58.1
58.2
58.2
58.3
58.4
58.4
Contractor's Interim
Contractor’s
Interim Payment
Interim
Period of
Period
Interim Payment

of Honouring
Payment Applications
Payment Certificates
Certificates
Honouring Certificates
Suspension of
Suspension of Works
Applications

Certificates
Works ififno Payment
no Payment
52
52
52
52
53
5533
58.5 Correction of
Correction of Certificates
Certificates 54
58.6
58.6 Retention Monies
Retention Monies 54
58.7
58.7 Rules Relating
Rules Relating to Retention Monies
to Retention Monies 54
58.8 Deemed Payment
Deemed Payment 5555
., ;
59. FINAL PAYMENT
PAYMENT CERTIFICATE
CERTIFICATE 55
~
59. FINAL 55
59.11
59. Contractor's Final
Contractor’s Final Payment
Payment Application
Application 55
55

ru '7
59.2
59.2

60
60.1
Issue of
Issue

EFECT
of Final

Effect of
Effect
Final Payment
Payment Certificate

EFECT OF CERTIFICATES
Certificate

CERTIFICATES
of Interim
Interim and
and Final
Final Payment
Payment Certificates
Certificates
55
55

56
56
56

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Clause Page

61 TERMINATION BY THE
TERMINATION EMPLOYER
THE EMPLOYER 56
61.1 Termination Due to Breaches
Termination Contractor
of the Contractor
Breaches of 56
61.2 Termination Due to Bankruptcy
Termination Insolvency of
Bankruptcy or Insolvency of the Contractor
the Contractor 57
61.3 Effects of the
Effects of Tennination
the Termination 558
8
61.4 Payment Tennination
Payment After Termination 58

62
Ox OX OX Ox Qx

TERMINATION BY THE
TERMINATION CONTRACTOR
THE CONTRACTOR 59
hs) bs) M tJ K)

62.1 Tennination Due to Defaults

Termination of the Employer
Defaults of Employer 59
62.2 Termination
T ermination Due to Bankruptcy of the
Insolvency of
Bankruptcy or Insolvency Employer
the Employer 60
62.3 Effects of
Effects Termination of the Contract
of Termination Contractor
Contract by the Contractor 60
60
62.4 Payment After TTermination
Payment ermination 6611

63
Ox QX OX Oh

RESOLUTION
DISPUTE RESOLUTION
CM W W OJ

DISPUTE 61
63.1 Reference to Arbitration
Reference Arbitration 61
61
63.2 Appointment of
Appointment Arbitrator
of Arbitrator 62
63.3 Powers Arbitrator
of the Arbitrator
Powers of 62

Modules
Option Modules
Option
Option Module A: Contract
Option Difference
Sum Difference
Contract Sum 63

Option Module B: Price

Option Module Fluctuation
Price Fluctuation 64

Option Termination without

Option Module C: Termination Default
without Default 66

Option Module
Option Module D: Mediation 67
67

APPENDIX TO THE
APPENDIX TO CONDITIONS OF
THE CONDITIONS CONTRACT
OF CONTRACT 68

PROFORMA OF
PROFORMA BOND
PERFORMANCE BOND
OF PERFORMANCE 70

Page vi
Page
 I EM Form
IEM Form of
of Contract
Contract IEM.CE2011
JEM.CE2011
For Civil Engineering
For Civil Works
Engineering Works

IEM Form
IEM Form ofof Contract
Contract
for Civil
for Civil Engineering
Engineering Works
Works

Articles of
Articles of Agreement
Agreement

This Agreement
This Agreement is dated
dated ....................................
. ................. .......

Parties to
Parties to Agreement
Agreement

11. . .............................................................................. (Company No.:

................................................................. (Company No.: ......................)
company incorporated
is a company incorporated in Malaysia Malaysia and and have have its its registered/business
registered/business office at

......................................................................................................... (“Employer”).
("Employer").

2.
2. . ....................................'.........................................................
........................................... (Company (Company No.:
No.: ...................... )
company incorporated
is a company incprporated in Malaysia Malaysia and and have its registered/business
registered/business office at

....................................................................................................... (“Contractor”).
("Contractor").

Background
Background

(A)
(A) The Employer
The Employer has
has appointed
appointed the
the Contractor
Contractor to
to design
design (to
(to the
the extent
extent required
required by this
this Contract),
Contract),
construct, complete
construct, complete thethe works (called
(called in this this Agreement
Agreement the the “Works”)
"Works") for

(B) The Employer,

The Employer has appointed
appointed ................................................................................... .
of .................................................................................................................. ..
of
. . . . . . .. .... . ..... . . . .. . .. . . . . . .. .. . ... .. . .. . . . . . . . ..... . ~ ..............................................................
to design
to design the
the Works
Works and
and also to
to act
act as
as the
the Engineer
Engineer for the
the purposes of the
purposes of the Contract.
Contract.

(C)
(C) The Contractor
The Contractor agrees
agrees to the appointment and undertakes
the appointment undertakes to
to complete
complete all the
the works
works required
required and
and
necessary complete the
necessary to complete the Works.
Works.

The Terms
The Terms

11.. The words used in

The in this Agreement have
this Agreement have the
the same
same meanings
meanings which are
are defined
defined in
in the
the Conditions
Conditions of
of
Contract.
Contract.

2.
2. The Contract
The Contract Sum
Sum is Ringgit
Ringgit Malaysia
Malaysia ....................................................................... .
...................................................................... RM
RM ( ...................................))only
only
and this
and this sum cannot
cannot be changed
changed unless thisthis is expressly
expressly provided for in the
provided for the Contract.
Contract.

3.
3. following documents
The following documents shall form
form the
the Contract:
Contract:

(a) Letter of
Letter of Acceptance;
Acceptance;
(b) Articles of
Articles of Agreement;
Agreement;
(c) Conditions of
Conditions of Contract;
Contract;
d)
((d) Drawings;
Drawings;
(e)
(e) Specifications;
Specifications;
(f) of Quantities;
Bills of Quantities;
(g) other documents,
other documents, letters,
letters, addenda
addenda and
and others
others which
which are specifically
specifically specified
specified and
and
identified by
identified by the
the parties
parties as forming
forming the Contract.
Contract.

© The Institution
© The Institution of
of Engineers,
Engineers,
Malaysia
Malaysia
 (
IEM Form of
IEM Form of Contract
Contract IEM.CE2011
IEM.CE 2011

1
For Civil
For Civil Engineering Works
Engineering Works

(
•“!'
Signed by
Signed by ]

-
authorised representative
authorised representative ]
of the
of the Employer
Employer ]

~
in the
in the presence of
presence of ]

!
C-
(— I
Name
Name Name
Name
LC. No.
LC. No. LC. No.
No.

F— !
F“ 3
Signed by
Signed ]l
authorised representative
authorised representative ]l
of the Contractor
of the Contractor ]l

J'
in the
in the presence of
presence of ]l

r
--
-L
Name
Name Name
Name

-j
LC. No.
LC. No. LC. No.
LC. No.

.
...J

—
7
■ ■■ ,
r..,,..,
. . .•
....

The Institution of
© The of Engineers,
Engineers,
Malaysia
Malaysia
jfrv
1]
n
IEM Fonn of
IEM Form Contract
of Contract IEM.CE2011
IEM.CE 2011
For Civil
For Civil Engineering
Engineering Works

IEM Form
IEM Form ofof Contract
Contract
0 for Civil
for Civil Engineering
Engineering Works
Works

Conditions of
Conditions of Contract
Contract

11 DEFINITIONS AND
DEFINITIONS AND INTERPRETATIONS
INTERPRETATIONS

1.1
1.1 Definitions
Definitions

Th_e following
The followi~g _words expressions have
words and expressions have the meanings given to
meanings given when used_
to them when ~n this
used in this Contract
Co~tra~t unless
unless the
context requires
context requll'es ·otherwise:
otherwise: -

(I)
(1) "Appendix" means
“Appendix” means the
the appendix
appendix to
to these
these Conditions.
Conditions.

(2)
(2) "Approved" means
“Approved” means approved
approved in writing by
in writing the Engineer
by the Engineer including
including subsequent
subsequent written
written confirmation
confirmation
of oral
of oral approval;
approval; “approval”
"approval" means
means approval
approval in writing
writing and includes confirmation of
includes confirmation of oral
oral approval.
approval.

(3)
(3) "Bills of
“Bills of Quantities”
Quantities" means
means and
anµ comprises
comprises collectively
collectively the
the following
following documents:
documents:

(a) Bill A:
Bill A: Preliminaries
Preliminaries
(b)
(b) Bill B:
Bill B: Bill of
of Quantities
Quantities for Remeasured
Remeasured Works;
Works;
(c) Bill Schedule of
Bill C: Schedule of Prices
Prices for Lump
Lump Sum
Sum Works;
(d)
(d) Bill D: Schedule
Bill Schedule of
ofRates Lump Sum
Rates for Lump Sum Works;
(e)
(e) E: Schedule
Bill E: Schedule of
of Prime
Prime Cost
Cost and
and Provisional
Provisional Sums;
Sums;
(f) Bill F:
F: Daywork
Daywork Schedule;
Schedule; and
(g)
(g) Bill G: Summary
Bill Summary of of Contract
Contract Sum.
Sum.

(4)
(4) "Certificate of
“Certificate Completion" means
of Completion” means the certificate issued by the
certificate issued the Engineer under Clause
Engineer under Clause 47.2.

(5)
(5) "Certificate of
“Certificate of Default”
Default'' means
means a certificate
certificate issued
issued by
by the Engineer nnder Clause
Engineer under Clause 61.1(1).
61.1 (I).

(6)
(6) "Certificale of
“Certificate of Making
Making Good
Good Defects”
Defects" means
means the
the certificate
certificate issued
issued by
by the Engineer under
the Engineer under Clause
Clause
48.4.
48.4.

(7)
(7) "Conditions" means
“Conditions” means the Conditions
Conditions of
of Contract
Co:ntract for
for Civil
Civil Engineering
Engineering Works and Option
Works and Option Modules
Modules
specified in the
specified the Appendix.
Appendix.

(8)
(8) "Contract'' or
“Contract” or “Contract
"Contract Document”
Document'' means
means

(a)
(a) Letter of
Letter of Acceptance;
Acceptance;
(b) of Agreement;
Articles of Agreement;
(c)
(c) Conditions of
Conditions of Contract;
Contract;
(d)
(d) Drawings;
Drawings;
(e) Specifications;
Specifications;
(f) Bills of
Bills of Quantities;
Quantities; and
and
(g)
(g) other documents,
other documents, letters,
letters, addenda
addenda and
and others
others which
which are
are specifically
specifically specified
specified and
and
identified by
identified the parties
by the fanning the Contract.
parties as forming Contract.

(9)
(9) "Contract Sum”
“Contract Sum" means
means the sum
sum set
set out
out in the Letter of Acceptance
Letter of Acceptance and
and is
is fixed
fixed subject
subject only
only to
to
adjustments expressly
adjustments expressly provided
provided by the
the Conditions.
Conditions.

(10)
(10) "Contractor'' means
“Contractor” means the person, firm
the person, corporation identified
firm or corporation identified in the Articles
Articles of
of Agreement
Agreement whose
whose
Tender has
Tender has been accepted by the
been accepted the Employer.
Employer.

(! I)
(11) "Constrnctional Plant
“Constructional Plant and
and Equipment"
Equipment'' means
means the equipment,
equipment, apparatus,
apparatus, plant,
plant, machinery,
machinery, and
and
things of
things of whatsoever
whatsoever nature required by the
nature required the Contractor
Contractor for the
the construction
construction and
and completion
completion of
of the
the
Works (including the making
Works (including making good
good of
of any defects)
defects) but not
not intending
intending to
to be
be part of the
part of the Works.
Works.

(12)
(12) "Costs" means
“Costs” means and
and includes
includes

(a)
(a) the direct
the direct relevant
relevant costs
costs of
of Constructional
Constrnctional Plant
Plant and
and Equipment,
Equipment, materials,
materials, goods
goods and
and
labour actually
labour actually incurred
incurred on
on Site
Site by the Contractor;
Contractor; and
and

The Institution
© The of Engineers,
Institution of Engineers, Page 11 of
Page of70
70
Malaysia
Malaysia
/EM Fonn of
IEM Form ofContract
Contract IEM.CE2011
IEM.CE2011
For Civil Engineering
For Civil Works
Engineering Works

(b) costs of
costs of an overhead
overhead nature
nature actually
actually and
and necessarily
necessarily incurred
incurred on
ori Site
Site by the
the Contractor;
Contractor;
and
and

(c) the amount

the amount equivalent
equivalent to the percentage
percentage stated
stated in
in the
the Appendix
Appendix ofof the sum
sum ofof the costs
costs
referred to in (a)
referred (a) and
and (b)
(b) above,
above, this
this amount
amount is taken
taken to
to include
include head
head office
office or
or other
other
administrative overheads
administrative overheads and
and financing
financing charges.
charges.

It is the
It the intention
intention of
of the parties
parties that
that “Costs”
"Costs" excludes
excludes profit.
profit

(13)
(13) "Date for Commencement”
“Date Commencement" means
means the date
date fixed
fixed for
for the
the commencement
commencement of
of the
the Works
Works and
and this
this is
date determined
the date determined in accordance
accordance with
with Clause
Clause 40.1(1).
40.1(1).

(14)
(14) “Date for Completion”
"Date for Completion" means
means the
the date
date on
on or
or before which the Contractor
before which Contractor must
must complete
complete the Works
Works
this date
and this date is fixed and
and can
can only
only be extended or
be extended or varied
varied in with the
accordance with
in accordance the express
express provisions
provisions
of these
of these Conditions.
Conditions:

(15)
(15) "day'' means a calendar
“day” calendar day.

(16)
(16) "Defects Liability
“Defects Liability Period”
Period" means
means a period
period the duration of
the duration of which
which is stated
stated in
in the
the Appendix and
Appendix and
during which the Contractor
during Contractor must
must make
make good all defects
good all defects notified
notified to
to him by the
the Engineer.
Engineer.

( I 7)
(17) "Drawings" means
“Drawings” drawings referred
means the drawings referred to
to in the
the Contract
Contract including
including those
those drawings
drawings issued
issued from
from
time to
time to time by the
the Engineer.
Engineer.

(18)
(18) "Employer'' means
“Employer” means the
the person, firm, corporation
person, firm, corporation identified
identified in
in the of Agreement
the Articles of Agreement who
who has
has
accepted the
accepted the Tender.
Tender.

(19) "Engineer'' means

“Engineer” means the person identified in the
person identified Articles of
the Articles of Agreement for the purposes
Agreement for purposes of
of the
the
Contract
Contract

(20)
(20) "Engineer's Representative”
“Engineer’s Representative" means
means the
the person appointed by the
person appointed the Engineer
Engineer and
and notified
notified to
to the
the
Contractor under
Contractor Clause 2.4(1).
under Clause 2.4(1 ).

(21)
(21) "Letter of
“Letter of Acceptance" means the formal
Acceptance” means formal acceptance
acceptance of
of the
the Tender
Tender by the
the Employer.
Employer.

(22)
(22) "Lump Sum
“Lump Sum Works”
Works" means
means those
those items
items of
of works
works shown
shown onon the
the Drawings
Drawings oror described
described m
in the
the
Specifications and
Specifications and which
which are
are described
described and
and designated
designated in the
the Bills
Bills of
of Quantities
Quantities for
for Lump Sum
Works.
Works.

(23)
(23) "Option Module”
“Option Module" means
means the
the Option
Option Module
Module appearing
appearing at
at the of these
the end of these Conditions.
Conditions.

(24)
(24) "Permanent Works"
“Permanent means works
Works” means works of
of aa permanent nature to be constructed
permanent nature constructed in accordance with
in accordance the
with the
Contract.
Contract.

(25)
(25) "Remeasured Works”
“Remeasured Works" means
means those
those items
items of
of works
works shown
shown onon the
the Drawings
Drawings oror described
described in the
the
Specifications and
Specifications and which
which are
are described
described and
and designated
designated in the
the Bills
Bills of
of Quantities
Quantities for
for Remeasured
Remeasured
Works.
Works. ·

(26)
(26) "Schedule of
“Schedule
describing
as Prime
as
orPrices for Lump
Prices for
describing works
works which
Prime Cost
Cost or
Lump Sum
which are
Sum Works"
are neither
or Provisional
Provisional Sums.
Sums.
means the schedule
Works” means
Remeasured Works
neither Remeasured
schedule included
included in
nor those
Works nor
in the
the Bills
Bills of
those works described
of Quantities
Quantities
described and designated
designated ·'·[': ,..
·_::.··••

?t
__

(27)
(27) "Section" means
“Section” means an
an identified
identified and
and specific
specific part of
of the Works
Works in respect
respect of
of which
which aa corresponding
corresponding
date for
date for completion
completion and
and liquidated
liquidated damages
damages are specified in the Appendix.
are specified Appendix:

(28)
(28) "Specifications" means
“Specifications” means the
the Specifications
Specifications included the Contract
included in the Contract together
together with
with any later
later
modification or
modification or amendment
amendment which
which the Engineer
Engineer may issue
issue or
or approve
approve from time
time to time.
time.

(29)
(29) "Site" means
“Site” means the
the land
land and
and other
other places on, under, in
places on, in or
or through
through which the Works
Works are
are to
to be
constructed and
constructed and can
can where
where applicable
applicable include
include

(a) lands designated

lands designated or provided
provided by the
the Employer
Employer for the
the purposes of the
purposes of the Contract;
Contract; and
and

(b) lands proposed

lands proposed by the
the Contractor
Contractor and agreed
agreed to by the
the Engineer
Engineer for
for the purposes
purposes of
of the
the
Contract.
Contract.

© The
© Institution of
The Institution of Engineers,
Engineers, Page22 of
Page of70
70
Malaysia
Malaysia
 IEM Form
IEM Form of Contract
ofContract IEM.CE2011
IEM.CE2011

C For Civil Engineering

For Civil

(30)
(30)
Works
Engineering Works

Works" means all temporary

"Temporary Works”
“Temporary temporary works of every
works of required for the carrying
every kind required the
of the
carrying out of
which would be removed after
and which
Works and of the Works.
completion of
after the completion

(31)
(3 1) “Tender” Contractor's priced
the Contractor’s
"Tender" means the offer to
priced offer the Employer
to the completion and
construction, completion
Employer for the construction,
maintenance of the
maintenance of accordance with the provisions
the Works in accordance of the Contract
provisions of Contract

(32) "Works" means collectively

“Works” Permanent Works
collectively the Permanent and Temporary
Works and Temporary Works.

1.2
1.2 Singular and Plural

(1)
(1) are used
Words which are include the plural
also include
only also
used in the singular only context
versa where the context
plural and vice versa
·requires.
requires.

1.3 Headings
Headings

(I)
(1) The headings in these
The headings Conditions of
these Conditions Contract are
of Contract not aa part
are not part of the Contract
of the not to be taken
Contract and are not taken
into consideration in
into consideration in the inteipretation Contract
of the Contract
interpretation of

1.4
1.4 Clauses
Clauses

(!)
(1) Clauses, Appendix and
References to Clauses,
References Modujes are references
Option Modules
and Option references to clauses, appendix and
clauses, appendix
of these
option modules of
option Conditions.
these Conditions.

1.5
1.5 Joint and Several Liability
Several Liability

(!)
(1) If any
If Contract is a partnership,joint
party to the Contract
any party partnership joint venture or consortium,
venture or is a term of
consortium, it is Contract
this Contract
of this
individual persons,
that the individual
that persons, entities or companies
entities or that party
comprising that
companies comprising party are severally
jointly and severally
are jointly
liable to party under
other party
to the other under this Contract.
this Contract.

(2)
(2) Either party
Either party to its absolute
Contract may, in its
to the Contract absolute discretion, commence arbitral or legal proceedings
discretion, commence proceedings
against any or
against or all of individual persons,
of the individual persons, entities -companies comprising
or companies
entities or other party
the other
comprising the in
party in
respect
respect of obligations arising
of the obligations under this
arising under Contract
this Contract

(3) The party

The commencing the arbitral or
party commencing under this Contract
actions under
or legal actions obliged to make any
Contract is not obliged
claim against all the persons,
claim against persons, entities companies comprising
or companies
entities or the other party.
comprising the party.

22 ENGINEER AND
ENGINEER ENGINEER’S REPRESENTATIVE
AND ENGINEER'S REPRESENTATIVE

2.1 Duties of
Duties EnginCer
of Engineer

(!)
(1) The Engineer must
The Engineer carry out
must carry specified in or
duties specified
out the duties Contract
which can be implied from the Contract
or which

2.2 Authority of the Engineer

Authority of

(1) Engineer may

The Engineer
The may exercise authority specified
exercise the authority necessarily to be implied
in or necessarily
specified in Contract
the Contract
implied from the

(2)
(2) Unless expressly stated
Unless it is expressly stated in the Contract, authori1y to amend the
Engineer has no authority
Contract, the Engineer or
Contract or
the Contract
to relieve
relieve the Contractor of
the Contractor of his obligations
of any of Contract.
obligations under the Contract.

(3)
(3) The giving of
The giving consent or approval by or
of any consent or on behalf
behalf of does not in any way relieve
Engineer does
of the Engineer relieve
Contractor of
the Contractor of his
of any of obligations under
his obligations the Contract.
under the The giving
Contract. The of any
giving of consent or
any consent approval
or approval
will also not relieve
will also relieve the Contractor of his duty to
Contractor of ensure the correctness
to ensure of the matter
accuracy of
correctness or accuracy matter or
thing which
thing subject of
which is the subject approval.
consent or approval.
of the consent

2.3
2.3 Individual
Named Individual

(I)
(1) Engineer is
If the Engineer
If is not individual, the
not an individual, within 14 days of
Engineer must within
the Engineer of the Letter Acceptance
of Acceptance
Letter of
notify to the
notify to Contractor in writing
the Contractor writing the name of
the name the individual
of the who will
individual who on his behalf
act on
will act carry out
behalf to carry
the duties
the orto
duties or to exercise the authority
exercise the of the Engineer
authority of for the pmposes
Engineer for purposes of Contract.
the Contract.
of the

(2)
(2) The Engineer may
The Engineer change the
may change named Engineer
the named change can only
Engineer but this change after the
effect after
only take effect
Contractor notified in writing
been notified
Contractor has been of the
writing of change.
the change.

(3)
(3) person who is
No person appointed to act
subsequently appointed
is subsequently entitled to
Engineer is entitled
act as the Engineer to disregard overrule
or overrule
disregard or
any
any certificate,
certificate, opinion, approval or
decision, approval
opinion, decision, given earlier
instruction given
or instruction the Engineer whom he
earlier by the
I ,,
'
replaces.
replaces.

© The Institution
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of Engineers, of70
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Malaysia
Malaysia
IEM Form of
IEM Form ofContract
Contract IEM.CE20ll
IEM.CE2011
For Civil
Civil Engineering Works
Engineering Works

2.4
2.4 Engineer's Representative
Engineer’s Representative

(1)
(1) The Engineer’s
The Engineer's Representative
Representative may
may be appointed
appointed by and
and be responsible
responsible to
to the Engineer.
Engineer. TheThe
Engineer must
Engineer must notify
notify the
the appointment
appointment of
of the
the Engineer’s
Engineer's Representative
Representative to the
the Contractor
Contractor in writing.
writing.

(2) The Engineer’s

The Engineer's Representative
Representative assists
assists the
the Engineer
Engineer to watch
watch and supervise
supervise the
the construction
construction and
completion of
completion of the
the Works
Works and the
the making
making good
good of
of any defects
defects in
in the Works.
Works.

(3)
(3) The Engineer’s
The Engineer's Representative
Representative does
does not
not have any authorities
have any under the
authorities under the Contract
Contract·except which
except those which
are expressly
are expressly delegated
delegated to
to him
him by the
the Engineer.
Engineer.

2.5
2.5 Delegation of
Delegation of Authorities
Authorities by the Engineer
Engineer

(!)
(1) Subject to Clause
Subject Clause 2.5(4),
2.5(4), the
the Engineer
Engineer may
may delegate
delegate to
to the
the Engineer’s
Engineer's Representative
Representative any
any of
of the
authorities
authorities vested in
in the Engineer: The
tffe· Engineer. Toe·· Engineer also atat ·any
Engineer may also tiine amend
any time a:mena or revoke the
or revoke tlie
delegation.
delegation.

(2)
(2) The delegation
The delegation of
of any authorities
authorities by the
the Engineer
Engineer to
to the
the Engineer’s
Engineer's Representative
Representative must
must be notified
notified
to the
to the Contractor
Contractor in This delegation
writing. This
in writing. delegation can
can only
only take effect
effect after
after aa written
written notice
notice of
of the
delegation has
delegation has been
been received the Contractor.
received by the Contractor. -

(3) The authorities

The authorities delegated
delegated to
to the
the Engineer’s
Engineer's Representative
Representative continue
continue to
to be in force
force until the
the Engineer
Engineer
notifies the
notifies the Contractor
Contractor inin writing
writing that
that the
the delegation
delegation has
has been revoked.
revoked.

(4) The Engineer

The Engineer must not delegate the
not delegate the making
making ofof any decision,
decision, the exercise
exercise of
of any authority
authority or the
issue of
issue of any
any certificate
certificate under
under Clauses
Clauses 44.3,
44.3, 46.2,
46.2, 48.4,
48.4, 59.2,
59.2, 61.1,
61.1, 61.4
61.4 and
and 62.4.
62.4.

(5) If the Contractor

If Contractor is not satisfied with any decision
not satisfied decision of
of the
the Engineer’s
Engineer's Representative,
Representative, he
he may
may refer
refer
the decision
the decision to the Engineer.
Engineer. The The Engineer
Engineer must
must confirm,
confinn, reverse
reverse or
or vary
vary the
the decision
decision within
within 14
14
days after
days after the
the Contractor
Contractor has
has referred
referred it to
to him.

2.6
2.6 Appointment of Assistants
Appointment of Assistants

(1)
(1) The Engineer
The Engineer may appoint
appoint any
any number
number ofof persons
persons to
to assist
assist the
the Engineer’s
Engineer's Representative in
Representative in
carrying out
carrying out his functions
functions under
under Clause
Clause 2.4(2).
2.4(2). He
He must
must notify
notify the
the Contractor
Contractor in
in writing
writing of
of this
appointment and
appointment and the
the notice must also
notice must also specify
specify the
the scope
scope of
of responsibilities
responsibilities of
of such
such persons.

(2)
(2) The assistants
The assistants do not have
have any
any authority
authority to issue
issue any
any instructions
instructions to the
the Contractor
Contractor except
except for those
directions that
directions that are
are necessary to enable
necessary to enable them
them to carry out their
carry out their duties
duties in ensuring that
in ensuring that the materials,
materials,
goods or
goods or works
works are
are in
in accordance with the
accordance with the Contract.
Contract.

2.7
2.7 Impartiality, Reasonableness
Impartiality, Reasonableness and Timeliness
Timeliness

(1) The Engineer

The Engineer must
must act
act impartially
impartially within
within the
the terms
terms ofof the
the Contract
Contract having
having regard toto all
all the
circumstances. Die
circumstances. Toe Engineer
Engineer must act impartially,
must also act reasonably and timely in exercising
impartially, reasonably exercising all or
any of
any of the authorities vested
the authorities vested in him under the Contract
under the Contract.

(2)
(2) Similarly, the Engineer’s
Similarly, the Engineer's Representative
Representative must
must also
also act impartially, reasonably
act impartially, reasonably and
and timely.
..
•.·.', .'..•·•.[-'
' .
33 ENGINEER'S INSTRUCTIONS
ENGINEER’S INSTRUCTIONS j;',
.:·.,,~-'- ....,
3.1
3.1 Instructions to be
Instructions be in Writing

(1)
(1) All instructions
All instructions issued
issued by the
the Engineer
Engineer must
must be in writing.
writing.

(2)
(2) Any instruction
Any issued by the
instruction issued the Engineer
Engineer which
which is not
not in writing
writing is of effect..■
of no effect.

(3)
(3) The provisions
The of this
provisions of Clause 3.1 apply
this Clause apply equally
equally to instructions
instructions given
given by the Engineer’s
Engineer's
Representatives.
Representatives.

(4)
(4) The Contractor
The Contractor must
must comply
comply with
with all instructions
instructions properly issued by the
properly issued the Engineer.
Engineer.

(5) Minutes of
Minutes of meetings on any
meetings on any matters
matters must not be taken
must not taken~ instructions in
as instructions in writing.
writing.

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3.2
3.2 Confirmation
Confirmation of Instructions
of Oral Instructions

(1) Confirmation in
Confirmation writing of
in writing of any oral instructions by the
oral instructions the Engineer minutes of
Engineer or minutes of meeting, whether
before
before or after carrying out of
after the carrying instruction, is aa properly
the instruction,
of the properly issued instruction within
issued instruction within the meaning
meaning
3.1.
of Clause 3.1.
of

(2)
(2) The Contractor may,
The Contractor before or after
may, either before of an instruction
carrying out of
after the carrying in
other than in
instruction given other
writing,
writing, confirm lllstruction in writing
such instruction
confirm sucb writing with the Engineer. If
the Engineer. If this confirmation
confirmation is not
contradicted within 77 days by the
contradicted within the Engineer, then aa properly
Engineer, it is then issued instruction
properly issued within the
instruction within
meaning
meaning ofof Clause 3. I.
Clause 3.1.

3.3 Failure to Comply with Engineer’s Instructions

Engineer's Instructions

(I)
(1) If Contractor does
If the Contractor instruction properly
comply with an instruction
does not comply issued by the Engineer
properly issued after
days after
Engineer 14 days
his-receipt-of-such
his receipt of such instruction (or such longer period as may be extended
instruction-{or-suchfonger-period-as the Engineer),
extended by the or Defore
Engineer), or before
date of
aa date compliance that
of compliance instruction,
specified in the instruction,
that is specified

(a) Employer can then

the Employer then employ other persons
employ other persons to do whatever that is necessary
whatever that necessary to give
to give
instruction; and
effect to the instruction;
effect

(b) the Employer is entitled

the Employer deduct or set-off
entitled to deduct from any payment
set-off from payment due to the Contractor
under Contract for
under the Contract direct cost,
for any direct the Employer
which the
expenses and damages which
cost, losses, expenses Employer
suffers or incurs
suffers consequence.
incurs as aa consequence.

44 CON1RACT DOCUMENTS
CONTRACT DOCUMENTS

4.1 Contract
Documents forming the Contract

'- ((I)
1) The following are
The following documents forming
the documents
are the Contract:
forming the Contract:

(a) Letter of
Letter Acceptance;
of Acceptance;
(b)
(b) Articles of Agreement;
Articles of Agreement;
(C)
(c) Conditions of
Conditions Contract;
of Contract;
(d)
(d) Drawings;
Drawings;
(e)
(e) Specifications;
Specifications;
(f) Bills
Bills of and
Quantities; and
of Quantities;
(g) other documents,
other letters, addenda
documents, letters, which are specifically
others which
addenda and others specified and
specifically specified
parties as forming
the parties
identified by the
identified Contract.
forming the Contract.

4.2
4.2 Documents Mutually Explanatory
Documents Mutually

(!)
(1) All the documents forming the Contract taken as mutually
Contract are to be taken explanatory and be read as a
mutually explanatory
whole.

(2)
(2) If there is any conflict,
If there or ambiguity within
inconsistency or
conflict, inconsistency or between
within or between the forming the
documents forming
the documents
Contract, conflict, inconsistency
such aa conflict,
Contract, such inconsistency oror ambiguity must Engineer by issuing
must be resolved by the Engineer
an instruction explain and adjust
instruction to explain such aa conflict,
adjust such inconsistency or ambiguity.
conflict, inconsistency ambiguity.

(3)
(3) In resolving
resolving any such conflict, inconsistency or
conflict, inconsistency Engineer must treat
ambiguity, the Engineer
or ambiguity, of
Letter of
treat the Letter
Acceptance, the Articles
Acceptance, Articles of Conditions of
of Agreement and the Conditions this order
Contract (in this
of Contract of priority)
order of priority) as
prevailing over those
prevailing over other documents
those other documents forming Contract
fonning the Contract

4.3
4.3 Additional Costs Incurred
Costs Incurred

(I)
(1) If
If the
the Contractor
Contractor incurs Costs in
additional Costs
incurs additional complying with the instruction
in complying Engineer
issued by the Engineer
instruction issued
under Clause
under 4.2(2), and as a direct
Clause 4.2(2), consequence there
direct consequence there is delay of the Works,
completion of
to the completion
delay to

(a) these
these Costs then be recovered
Costs may then Contractor under Clause
recovered by the Contractor 53; and
Clanse 53;

(b)
(b) the Engineer delay into
take the delay
Engineer must take into consideration exercising his
consideration in exercising authority with
his authority
respect Clause 44 of
respect to Clause Conditions.
these Conditions.
of these

4.4
4.4 Custody of
Custody Documents
Contract Documents
of Contract

(!)
(1) The Contract Documents is to remain in the
of the Contract
originaJ set of
The original custody of
the custody Employer.
of the Employer,

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IEM.CE201I
Civil Engineering
For Civil Works
Engineering Works

(2)
(2) Within 14 days after
Within the execution
after the of the
execution of Contract, the
the Contract, Engineer must
the Engineer of the
must arrange a duplicate set of
Contract for the
Documents for
Contract Documents Contractor at no charge
the Contractor Contractor.
charge to the Contractor.

4.5
4.5 Confidentiality of Contract Documents
Confidentiality of Documents

(l}
(1) The Contractor
The use the Contract Documents
Contractor must use subsequent documents issued to him by
Documents and all subsequent
only for the purposes
Engineer only
the Engineer Contract
of the Contract
purposes of

(2) Unless of the Engineer

consent of
Unless the written consent Engineer is obtained, Contractor must not disclose
obtained, the Contractor or make
disclose or make
available to a third party
available Contract Documents
party the Contract details and information
Documents and all the details contained
infonnation contained
within the Contract Documents.
Contract Documents.

4.6 Language and Law

Language Law

(1)
(I) The Contract
The been prepared
Documents have been
Contract Documents prepared in the English Language
the English of t!ie
language of
Language and the language the
English.
Contract is English.
Contract

(2)
(2) This Contract Malaysian law.
subject to Malaysian
Contract is subject z_;_;c-
T
., _j
55 DRAWINGS
DRAWINGS

5.1 of Drawings
Supply of Drawings

(1)
(l) In addition to the Engineer
4.4(2),.the
to Clause 4.4(2),. Engineer must make of the
available to the Contractor two sets of
make available
Drawings within
Drawings reasonable time after
within aa reasonable issuance of
after the issuance of Acceptance.
Letter of
of the Letter Acceptance. These of
sets of
These two sets
Drawings must
Drawings supplied without
must be supplied any extra
without any Contractor.
extra charge to the Contractor.

(2) If the Contractor

If Contractor requires copies of
requires further copies Drawings, these
the Drawings,
of the obtained from the Engineer.
must be obtained
these must Engineer.
Engineer may
The Engineer
The impose reasonable
may impose charges for
reasonable charges providing to the Contractor
for providing these further copies
Contractor these of
copies of ,
Drawings.
the Drawings.

(3)
(3) One set
One of the Drawings
set of Contractor under
supplied to the Contractor
Drawings supplied under Clause together with
Clause 5.1(1) together with a copy of
copy of
Specifications must be
Specifications be kept on SiteSite by the Contractor.
Contractor. The Engineer or his authorised
The Engineer authorised
representatives can
representatives inspect this set
can inspect of the Drawings
set of the Specifications
Drawings or the Site at all reasonable
Specifications on Site reasonable
times.
times.

5.2 Further Drawings

Further Engineer
Drawings by the Engineer

(l}
(1) The authority under the
Engineer has authority
The Engineer the Contract issue from time to time before
Contract to issue of
completion of
before the completion
the Works
the Works further drawings Contractor. These
drawings to the Contractor. must be issued
drawings must
These further drawings to the
issued to
Contractor by way
Contractor of instructions.
way of instructions. ·-7
(2)
(2) The provisions
The provisions of Clauses 3.
of Clauses 3.3 apply
3.11 and 3.3 apply to these instructions issued
these instructions 5.2(1).
issued under Clause 5.2(1). j
5.3 Requests for
Requests Further Drawings
for Further

(!)
(1) If the Contractor
If Contractor considers drawings are
that further drawings
considers that are necessary
necessary for and
execution and
for the proper execution ,)

of the
completion of
completion Works, he
the Works, he must serve a notice
must serve notice to that effect to the Engineer.
that effect Engineer.

(2) The notice served 5.3(1) must

served under Clause 5.3(1) details:
following details:
must include the following

(a) descriptions drawings required;

of the drawings
descriptions of required; and
(b) of why
infonnation of
information why and drawings are required.
when the drawings
and by when required.
-,

(3)
(3) Further requirements of
Further to the requirements the notice
5.3(2), the
Clause 5.3(2),
of Clause notice must be served reasonable time
served within a reasonable
such that
that

(a) the plarming

the execution of
planning or execution not be delayed
Works will not
of the Works affected; and
delayed or affected;

(b)
(b) can respond
Engineer can
the Engineer necessary and required
notice and instruct the necessary
the notice
respond to the drawings to
required drawings
issued.
be issued.

(4) Further drawings referred to in Clause 5.3

drawings referred The provisions
of instructions. The
issued by way of
5.3 must be issued of
provisions of
Clauses 3.1
Clauses also apply to these
3.l and 3.3 also instructions.
these instructions.

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IEM.CE2011

[ For Civil E1Jgineering

For Civil Works
Engineering Works

5.4 Delay in Issuing

Delay Drawings
Further Drawings
Issuing Further

(I)
(1) If the
If the Engineer is unable
or is
Engineer fails or to issue
unable to the required
issue the required drawings time reasonable
within the time
drawings within in all
reasonable in
Contractor suffers
circumstances, and the Contractor
circumstances, to the completion
delay to
suffers delay Works and
of the Works
completion of Costs,
incurs Costs,
and incurs
then

(a)
(a) taken into consideration
such delay must be taken Engineer in
consideration by the Engineer in determining any new
determining any Date
new Date
to which
Completion to
for Completion Contractor may be entitled
which the Contractor under Clause
to under
entitled to 44; and
Clause 44;

(b)
(b) Costs may be recovered
• the Costs Contractor under
recovered by the Contractor under Clause 53.
Clause 53.

(2)
(2) The provision
The 5.4(1) is subject
provision in Clause 5.4(1) having fulfilled the requirements
Contractor having
subject to the Contractor of
requirements of
Clause 5.3(3).
Clause 5.3(3).

6 CONTRACTOR'S-DESIGN-
CONTRACTOR’S DESIGN

6.1 Permanent Works

Permanent Contractor
Designed by Contractor
Works Designed

. (1) If
If it is aa requirement
requirement of Contract that
of the Contract that certain Works must
certain Permanent Works designed by the
must be designed
Contractor, the Contractor
Contractor, must proceed
Contractor must proceed with of these
design of
with the design Works and must
Pennanent Works
these Permanent must
submit such
submit design for the approval
such design Engineer.
of the Engineer.
approval of

(2)
(2) The Contractor must submit
The Contractor design referred
submit the design to in Clause
referred to reasonable time
6.1 (l) within a reasonable
Clause 6.1(1) time

(a) Engineer to assess

to allow the Engineer design; and
check the design;
assess and check

(b)
(b) planning and construction
so that the planning of these
construction of Permanent Works and all other
these Permanent related and
other related
associated works will not be
associated be affected delayed.
or delayed.
affected or

(3) The must not proceed

Contractor must
The Contractor proceed with construction of
with the construction Permanent Works
these Permanent
of these Works unless approval
unless approval
to the Contractor's design is obtained
Contractor’s design Engineer.
obtained from the Engineer.

(4)
(4) The Engineer may discuss
The Engineer Contractor on
discuss with the Contractor aspects of
on aspects instruct that
desigo and instruct
of the design that the design
the design
be amended revised. Notwithstanding
amended or revised. Engineer must
Notwithstanding this, the Engineer approve the Contractor’s
must approve design
Contractor's design
within 21
within submission and receipt
of its submission
21 days of Engineer unless
the Engineer
receipt by the unless the Engineer has before
Engineer has that
before that
instructed amendments and
instructed for amendments and revisions
revisions to design.
to be made to the design.

(5)
(5) The design submission
The design Contractor must
of the Contractor
submission of following:
must include the following:

(a)
(a) drawings sketches or
drawings or sketches combination of
or aa combination both;
of both;
(b)
(b) specifications;
specifications;
(c)
(c) calculations; and
calculations;
(d)
(d) information as may be
such information
other such
any other necessary and required for the Engineer
be necessary assess
Engineer to assess
suitability, adequacy,
the suitability, integrity and safety
adequacy, integrity design.
of the design.
safety of

(6)
(6) or required,
Wher~ practical or
Where Contractor's design
required, the Contractor’s also include
submission must also
design submission and
operation and
include operation
maintenance manuals. These
maintenance manuals must be in sufficient
These manuals details to enable
sufficient details Employer to
enable the Employer to
operate, dismantle, reassemble
maintain, dismantle,
operate, maintain, incorporating the design.
Works incorporating
reassemble and adjust the Permanent Works

(7)
(7) AU designs submitted
AU designs must be
Contractor must
submitted by the Contractor be formally Professional Engineer
endorsed by a Professional
formally endorsed Engineer
registered Lembaga Jurutera
registered with Lembaga Malaysia in the discipline
Jurutera Malaysia which relates
discipline which designs.
relates to the designs.

6.2
62 Amendment or Modification of Contractor’s
Modification of Works
Design on Permanent Works
Contractor's Design

(I)
(1) The Contractor may, with the
The Contractor the written consent of
written consent Engineer, amend or
of the Engineer, or modify
modify the design of the
design of
Permanent Works which the Engineer
Permaneot has earlier
Engineer has approved under
earlier approved under Clause (4).
Clause 6.1 (4).
'' (2)
(2) If of the design
modification of
If the amendment or modification Clause 6.2(1)
in Clause
design in results in extra
6.2(!) results extra costs expenses
costs and expenses
. _) ' incurred by the Contractor,
incurred by such costs
Contractor, such expenses are to
and expenses
costs and borne by the
solely borne
to be solely Contractor.
the Contractor.

) (3)
(3) If however there
If however there are any savings, these
any savings, these savings must be
savings must be shared equally between the Employer and
shared equally
' i
Contractor. The
the Contractor. of the savings
The amount of agreed between
be agreed
savings must be the Engineer
between the Contractor
Engineer and the Contractor
before the
before Engineer gives his
the Engineer approval to
his approval design.
to the amended or modified design.

(4)
(4) The Employer
The set-off from
Employer may set-off any payments
from any payments due to the Contractor the savings
the Contractor which are
savings which agreed in
are agreed
between the Engineer
writing between
writing Contractor in Clause 6.2(3).
Engineer and the Contractor

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For Civil Works
Engineering Works

(5)
(5) The Contractor’s
The Contractor's amended modified design
amended or modified design must
must be approved
approved by
by the
the Engineer
Engineer and Clauses 6.
and Clauses 6.1(2)
1 (2)
to (7)
to are applicable
(7) are applicable to
to this
this amended or modified
amended or modified design.
design.

6.3
6.3 Temporary Works
Temporary Works Designed
Designed by Contractor
Contractor

(!)
(1) The Contractor
The Contractor must
must at
at his own expense
expense design
design the
the Temporary
Temporary Works. The design
The design of
of these
these
Temporary Works must
Temporary must be
be approved
approved by the
the Engineer.
Engineer.

(2) The provisions

The provisions of
of Clauses
Clauses 6.1 (2)
(2)- inclusive and
- (5) inclusive and Clause
Clause 6.1(7) which govern
6.1(7) which govern the design
design of
of the
the
Pennanent Works also
Permanent also govern the
the design
design and,
and, when
when the Contractor
Contractor chooses,
chooses, the amended
amended oror •.
modified design,
modified design, of
of the
the Temporary
Temporary Works.
Works. ~~
·.·.·c·.·.·.··
__J

6.4
6.4 Delay in Approving
Delay Approving Design
Design

(I)
(1) the Engineer
If the
If Engineer has delayed the approval of
the' approval the design
of the design submitted
submitted by the
the Contractor
Contractor· fiillier Clauses
under Clauses
and the Contractor
6.1 or 6.3 and
6.1 Contractor incurs
incurs delay
delay in meeting
meeting the
the Date
Date for
for Completion
Completion and
and additional
additional Costs
Costs
as aa direct
direct consequence,
consequence,

(a)
(a) the Engineer
the Engineer must take
take the delay
delay into
into consideration
consideration in
in determining
determining any
any extended
extended Date
Date for
for -·c.:'
.

Completion to which the

Completion the Contractor
Contractor may
may be entitled
entitled under
under Clause
Clause 44; and
and

(b)
(b) the Engineer
the Engineer must certify the additional
must certify additional Costs
Costs m accordance with the
in accordance the provisions
provisions of Clause
of Clause
53.
53.

6.5
6.5 Responsibility Unaffected
Responsibility Unaffected by Approval
Approval
f[' 'I'
,.t
(!)
(1) The Contractor
The Contractor retains
Works and
Works
retains at all times
the Temporary
and the
times responsibility
Temporary Works.
responsibility with
Works. AnyAny approval
respect to his
with respect
approval given
his designs
designs of
given by the Engineer
of both the Permanent
Engineer under
under Clause
Permanent
Clause 6.1(4)
6.1(4) will
will
--l _)
not
not relieve the Contractor
relieve the Contractor of
of this
this responsibility.
responsibility.

(2)
(2) Any approval
Any approval given
given by the Engineer
Engineer under
under the
the Clause 6.1(4)
Clause 6.1 above must
(4) above must not
not be
be used
used as aa ground
ground to
to
limit the
limit the Engineer’s
Engineer's authority
authority to instruct
instruct variations
variations to the
the Works
Works under
under Clause
Clause 51 even ifif such
such
variations may
variations require changes
may require changes to the
the Temporary
Temporary Works which
which have already been approved.
have already approved.

(3)
(3) Further to
Further to Clause
Clause 6.5(2),
6.5(2), ifif the
the instructed
instructed variation
variation requires
requires changes
changes to the Temporary
"I:emporary Works,
Works, the
the
Contractor may include
Contractor include in his valuation
valuation of the variation
of the variation instructed
instructed the value
value of
of the
the works
works
necessitated by the
necessitated the changes
changes to thethe Temporary
Temporary Works.
Works.

6.6
6.6 Intellectual Property
Intellectual Property Rights
Rights

(!)
(1) The Contractor
The Contractor retains
retains intellectual
intellectual property rights to
property rights to all designs
designs submitted
submitted by the
the Contractor
Contractor to
to the
the
Engineer but
Engineer Contractor irrevocably
but the Contractor irrevocably grants
grants to
to the Employer
Employer licence
licence to use
use such
such rights
rights for all
all
matters
matters relating to the
relating to the Works.

(2) It is aa condition
It condition of the Contract
of the Contract that
that for
for all designs
designs submitted
submitted by thethe Contractor,
Contractor, the Contractor
Contractor
undertakes that
undertakes that the designs must
the designs must not
not infringe
infringe any
any pre-existing intellectual property
pre-existing intellectual rights belonging
property rights belonging
to any
to any third
third party.
party. TheThe Contractor
Contractor further
further indemnifies
indenmifies the
the Employer
Employer and thethe Engineer
Engineer against
against any
any
actions, damages, claims
actions, damages, claims and
and others for anyany infringement
infringement of intellectual property
of any intellectual property rights
rights
belonging
belonging to to aa third
third party.
party.

(3) The intellectual

The intellectual property
property rights
rights referred
referred to
to in this
this Clause
Clause include
include patent
patent rights, trademarks,
rights, trademarks,
[
copyrights and
copyrights and any
any other
other protected
protected rights.
rights.

77 EMPWYER'S GENERAL
EMPLOYER’S GENERAL OBLIGATIONS
OBLIGATIONS

7.1
7.1 Employer's General
Employer’s General Obligations
Obligations

(I)
(1) The following
The following are
are the
the Employer’s
Employer's general
general obligations
obligations under
uuder this
this Contract:
C?ntract:

(a) The Employer

The Employer must
must give
give the right
right of
of access
access to and
and possession
possession of the Site
of the Site in
in accordance
accordance
with Clause
with I I.
Clause 11.

(b) The Employer

The Employer must
must ensure
ensure that
that the
the land
land use
use of
of the Site
Site has been correctly
correctly categorised
categorised and
and
approved for the Works.
approved Works. ·

(c)
(c) The Employer
The Employer must obtain development or planning
obtain development plauning-approvals including where
approvals including where applicable
applicable
building plan
building plan approval
approval and
and such
such other
other necessary approvals. from the
necessary approvals the relevant
relevant statutory
statutory

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authorities or
authorities or service
service providers
providers relating to the
relating to the Works.
Works. These
These approvals
approvals must
must be obtained
obtained
before the Date
before the Date for
for Commencement.
Commencement.

(d)
(d) The Employer
The Employer must not obstruct
must not obstruct nor
nor interfere
interfere the
the Contractor’s
Contractor's performance
perfonnance of
of the
the
Contract unless
Contract such obstruction
unless such obstruction or
or interference
interference is provided
provided for in the Contract.
in the Contract.

(e)
(e) Toe Employer
The Employer must
must not
not interfere,
interfere, influence
influence or
or obstruct
obstruct the
the Engineer
Engineer in his
bis certification
certification
duties under
duties the Contract.
under the Contract.

(f) The Employer

' The Employer must
must appoint
appoint another
another Engineer
Engineer ifif the
the Engineer
Engineer dies oror for any reason
reason
cannot fimction
cannot :function as the Engineer
Engineer under
under the Contract.
Contract. Such
Such appointment
appointment must
must be made
made
within 30
within 30 days ofof the
the Engineer’s
Engineer's death
death or
or his
his inability
inability to
to function
function as the
the Engineer
Engineer under
under
the Contract.
the Contract.

(2) The Engineer

The Engineer appointed by the Employer
appointed by Employer under
under Clause
Clause 7. (! )(f) must
7.11(l)(f) must not
not overrule
overrule the
the decisions
decisions and
and
the certifications
the certifications of
of the
the former
former Engineer.
Engineer.

(3) The Employer’s

The Employer's general
general obligations
obligations listed
listed in Clauses to (f) (inclusive)
Clauses 7.1 (a) to (inclusive) must
must not be taken to
be taken to
limit the
limit the obligations
obligations of
of the
the Employer
Employer both
both under
under the
the Contract
Contract and
and in law.

88 CONTRACTOR'S GENERAL
CONTRACTOR’S OBLIGATIONS
GENERAL OBLIGATIONS

8.1 Contractor's General

Contractor’s General Obligations
Obligations

(!)
(1) The Contractor
The Contractor must, with
with due
due care and
and diligence,
diligence,

(a) design the Works

design Works to the extent
extent required
required by the
the Contract;
Contract;
(b) set out,
set out, construct
construct and
and complete
complete the
the Works; and
(c)
(c) remedy all defects
remedy defects

accordance with the

in accordance the provisions of the Contract.
provisions of Contract.

(2) fulfilling his

In fulfilling his obligations
obligations set
set out in Clause
Clause 8.1(1),
8.1(1), the
the Contractor
Contractor must
must folly
fully provide
provide

(a) management and

management and technical
technical know-how;
know-how;
(b)
(b) supervision;
supervision;
(c)
(c) labour;
labour;
(d)
(d) Constructional Plant
Constructional Plant and Equipment;
Equipment;
(e)
(e) materials aud goods;
materials and goods;

and all other

other things
things whether
whether of
of aa temporary
temporary or permanent
permanent nature
nature as he
he may require.
require.

(3) The Contractor

The Contractor must
must at
at all
all times
times be fully responsible
responsible and
and take
take foil
full measures
measures to
to ensure
ensure and maintain
maintain
the adequacy,
the adequacy, stability
stability and
and safety
safety of
of all operations
operations on
on Site.
Site.

(4)
(4) Contractor's general
The Contractor’s general obligations
obligations listed Clauses 8.1 (1)
listed in Clauses (l) to (3) (inclusive)
(inclusive) must
must not
not be taken
taken to
limit the obligations
lhnit the obligations of
of the Contractor
Contractor both wider the
both under the Contract
Contract and
and in law.

99 NOTICES
NOTICES

9.1
9.1 Notices
Notices

(!)
(1) Notices to either
Notices either the
the Employer
Employer or the Contractor
Contractor must
must be served
served to
to the respective
respective address
address stated
stated in
in
the Articles
the Articles of
of Agreement.
Agreement.

(2)
(2) The Employer or
The Employer or the Contractor
Contractor may
may amend
amend the
the address
address stated
stated in the
the Articles
Articles of
of Agreement
Agreement and
and the
the
amendment can only
amendment can only take
take effect
effect after the
the notice of the
notice of the change
change is received the other
received by the other party.

(3)
(3) Unless there
Unless there are express
express provisions
provisions relating
relating to aa particular
particular mode of serving
mode of serving notices,
notices, notices can
can be
served in
served in either
either of
of the
the following
following manners:
maimers:

(a)
(a) by hand
hand delivery
delivery to
to the
the authorised
authorised representative
representative of
of the
the Employer
Employer oror the Contractor
Contractor or
or his
his
Site Manager
Site Manager (in the
the case
case of
of the
the Contractor)
Contractor) with the
the receiving
receiving person acknowledging
person acknowledging
receipt;
receipt;

(b)
(b) by courier
courier to
to the
the address
address stated
stated in the
the Articles
Articles of
of Agreement
Agreement and
and with
with the
the
acknowledgement receipt
acknowledgement obtained; or
receipt obtained;

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(c)
(c) by AR
AR Registered
Registered Post
Post to the
the address stated
stated in
in the
the Articles
Articles of
of Agreement
Agreement

10
10 PERFORMANCE SECURITY
PERFORMANCE SECURITY

10.1
10.1 Submission of
Submission of Performance
Performance Security
Security

(1)
(1) If itit is aa requirement
If under the Contract
requirement under Contract that
that the
the Contractor
Contractor must
must provide
provide aa performance security,
performance security,
the Contractor
the Contractor must obtain
obtain and
and provide to the
provide to the Employer
Employer such
such security
security within
within 1414 days
days of
of the
the Date
Date for
Commencement or
Commencement or an
an extended
extended date
date as the
the Employer
Employer may
may agree
agree to
to in writing.
in writing.

(2)
(2) The performance
The performance security
security must be in
in the form
form of
of a guarantee
guarantee or
or bond.
bond.

(3)
(3) The performance
The performance security
security must
must be the amount
be in the amount equivalent
equivalent to
to the
the percentage of the
percentage of the Contract
Contract Sum
Sum
stated in the Letter
stated Letter of
of Acceptance
Acceptance or Appendix
Appendix to these
these Conditions.
Conditions.

(4)
(4) The Contractor
The Contractor must the same
must at the same time
time of
of the
the submission
submission of of the
the performance security to the
performance security the
Employer also
Employer also provide
provide to the
the Engineer
Engineer with
with a certified
certified true
true copy
copy of the performance
of the security
performance security
submitted.
submitted.

(5)
(5) If the
If the Contractor
Contractor fails or is unable
unable to
to produce the performance
produce the security, then
performance security, then the
the Employer
Employer may
retain any
retain any payment
payment due to the Contractor
Contractor under the Contract
under the Contract to the amount
to the amount required of the
required of
•· performance
performance security.
security.

(6)
(6) Both the Employer
Both Employer and the Contractor
and the Contractor agree
agree that
that the
the arbitrator
arbitrator appointed under
under Clause
Clause 63.2 of these
63.2 of
Conditions will
Conditions will have the jurisdiction
have the on all
jurisdiction on all matters related the performance
to the
related to performance security
security to
to the
the extent
extent
allowed by Arbitration
allowed Arbitration Act
Act 2005.
2005.

10.2
10.2 Requirements of
Requirements of Performance
Performance Security
Security

(I)
(1) The performance
The performance security
security mentioned Clause 10.1
mentioned in Clause I 0.1 must
must satisfy
satisfy the
the following
following requirements:
requirements:

(a)
(a) It
It must
must be substantially in the
be substantially the form
form and
and content
content as
as per the Proforma
per the Proforma ofof Performance
Performance Bond
Bond
of IEM
of Form of
IEM Form of Contract
Contract for Civil
Civil Engineering
Engineering Works
Works oror m such other
in such other form
form and
and content
content
may be
as may agreed between
be agreed between the
the Employer
Employer and
and the
the Contractor.
Contractor.

(b)
(b) It must be
It must issued by a bank
be issued bank or
or other
other financial
financial institution
institution approved
approved by the
the Employer.
Employer.

(c)
(c) It must
It be valid
must be valid at all
all times
times until the
the Date
Date for
for Completion
Completion or
or any
any extension of date.
extension of date.

(2)
(2) The performance
The performance security
security must
must be provided at the
be provided the expense of the
expense of the Contractor.
Contractor.

10.3
103 Extension of
Extension of Validity
Validity

(1)
(1) If it appears
If appears that
that the
the Contractor
Contractor will not
not be able
able to
to complete the Works
complete the Works by the Date
by the Date for
for Completion,
Completion,
the Contractor
the Contractor must extend the
must extend the validity
validity of
of the
the performance
perfonnance security
security such
such that he fulfils his
that he
obligation under
obligation under Clause
Clause 10.2(l)(c).
I0.2(1)(c).

(2)
(2) The extension
The extension of of the
the validity
validity of
of the
the performance
performance security
security mentioned
mentioned in
in Clause
Clause 10.3(1)
10.3(1) must
must be
effected at
effected least 30
at least 30 days
days before the expiry
before the expiry of
of the
the submitted
submitted performance security.
performance security. 7

_)
(3)
(3) The costs
The costs involved
involved in extending
extending such
such performance
performance security
security may
may be
be recovered Contractor as
recovered by the Contractor
Costs under
Costs under Clause
Clause 53 of
of these Conditions if
these Conditions if the
the delay
delay to
to the
the Completion
Completion is not
not due
due to the
the acts or
or
omissions of
omissions of the
the Contractor.
Contractor.

10.4
10.4 Call on Performance
Call Performance Security
Security

(I)
(1) Before the
Before the Employer
Employer can
can make
make aa claim
claim under the performance
under the security, the
performance security, the Engineer
Engineer must
must have
already issued
already issued the Certificate
Certificate of
of Default.
Default.

(2)
(2) All claims
All claims or
or calls
calls to
to the
the bank
bank or
or financial
financial institution
institution by the
the Employer
Employer on the
the performance security
performance security
must be
must accompanied by
be accompanied by the Certificate
Certificate of
of Default.
Default.

(3)
(3) The Certificate
The Certificate of
of Default
Default is the
the only
only condition
condition precedent for any
precedent for call or
any call or claim
claim on
on the performance
performance
security.
security. ·

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10.5 Utilisation of
Utilisation of the
the Proceeds
Proceeds of
of the
the Performance
Performance Security
Security

.,[ (!)
(1) The Employer
The Employer may
costs, damages
costs,
may use
damages or
use such
or losses
such amount
losses which
amount of
which he
of the proceeds
may have
he may
of the performance
proceeds of
have suffered
security to set-off
performance security
suffered as aa direct consequence
consequence of
set-off any
of the Contractor’s
Contractor's
fundamental breach
breach or
or breaches of the Contract
breaches of Contract for
for which the
the Engineer
Engineer has issued
issued the Certificate
Certificate of
of
Default.
Default.

(2)
(2) If there is any
If there any balance amount remaining
balance amount of the proceeds
remaining of oftbe
proceeds of the perfonnance security after
performance security after the
the set-
set-
off mentioned
off mentioned in Clause
Clause 10.5(1),
10.5(1), such
such balance must be to
balance must to the account
account of
of the Contractor
Contractor and thethe
Contractor must
Contractor be reimbursed
must be accordingly.
reimbursed accordingly.

11 THE SITE
THE SITE

11.1
11.1 Possession of
Possession of the Site
Site

(1) Contractor must

The Contractor not use
must not the Site
use the or any part
Site or ofit
part of any purpose
it for any purpose or activity
activity not connected with
not connected with
the Works.
the
·.•[·_•·,_
' '

·- .; (2)
(2) Possession of
Possession of the Site
Site by
by the
the Contractor
Contractor must
must not be taken to
not be to be for
for the sole
sole and
and exclusive
exclusive use
use of
of the
the
Contractor. Such
Contractor. Such possession of the Site
possession of Site granted by
by die
the Employer
Employer to to die
the Contractor
Contractor constitutes
constitutes
nothing more than
nothing than aa revocable licence granted,
revocable licence where it is
granted, where is legally
legally- possible
possible so to do,do, by
by the
the
Employer to the
Employer the Contractor.
Contractor.

(3)
(3) In that
In that part of
of the
the Site
Site not
not legally
legally owned
owned by the Employer
by the Employer oror to which
which other
other person or persons
person or not
persons not
connected with
connected the Works
with the Works can
can have continual
continual access
access and use,
use, the
the Contractor
Contractor is deemed
deemed to have
have been
been
granted the
granted the possession
possession ofof that
that part
part of
of the Site
Site at the
the Date
Date for
for Commencement
Commencement provided that
provided that

(a) relevant local,

the relevant local, state
state or
or federal
federal authorities
authorities have
have agreed to
to their
their use for
for the
the purposes
purposes of
of
the Works;
the Works; and
and

(b) Contractor must

the Contractor must ensure
ensme the continual access and
the continual and use of
of this
this part of the Site
part of Site by those
those
persons
persons not connected with
not connected with the Works.

11.2
11.2 Designated Site
Designated Site

(I)
(1) The Contractor
The Contractor may
may request
request the
the Engineer’s
Engineer's approval
approval to designate
designate any land
land adjacent
adjacent to, or
or in the
the
vicinity of
vicinity of; the Site
Site as
as forming
forming part of the Site.
part of Site.

(2)
(2) The Engineer
The Engineer may,
may, before giving his approval
before giving approval to the
the Contractor’s
Contractor's request,
request, require such undertakings
require such undertakings
from die
from the Contractor as the
Contractor as the circumstances
circumstances of
of the Contractor’s
Contractor's request
request or
or the
the status
status of
of the land
land may
may
require.
require.

(3)
(3) Engineer retains
The Engineer retains the absolute
absolute discretion
discretion in giving, withholding or revoking
withholding or revoking any approval
approval to the
Contractor's request
Contractor’s request under
under Clause
Clause 11.2(1).
11.2(1 ).

111.3
13 Contractor to
Contractor to Keep
Keep Site
Site Clear
Clear

(!)
(1) The Contractor
The Contractor must
must keep
keep the Site
Site free
free from all uunecessary obstructions during
unnecessary obstructions during the
the execution
execution of
of
Works.
the Works.

(2)
(2) The Contractor
The Contractor must
must remove from the
remove from the Site
Site any materials and
any materials and Temporary
Temporary Works
Works which
which are
are no longer
longer
required for
required for the Works
Works together
together with
with rubbish any other
rubbish and any other unwanted
unwanted materials.
materials.

(3)
(3) In removing
In removing any rubbish
rubbish or unwanted
unwanted materials
materials from the Site,
Site, the Contractor
Contractor must
must keep
keep the
Engineer informed
Engineer informed of
of the location,
location, ownership
ownership and
and other
other details
details of
of the dumping
dumping grounds where the
grounds where
rubbish or
rubbish or unwanted
unwanted materials
materials will
will be
be dumped.
dumped.

11.4
11.4 Inspection of
Inspection of the
the Site
Site

(I)
(1) If the
If the Site
Site has
has been made available
been made available to
to the
the Contractor
Contractor for any
any reasonable
reasonable period
period for his inspection
inspection
and examination
and examination before
before his submission of
his submission of the Tender,
Tender, then itit is aa condition
condition of
of the Contract
Contract that
that the
Contractor has satisfied
Contractor has himself as to
satisfied himself to the following infonnation and conditions
following information conditions about
about the Site:
Site:

(a) the form and

the and nature
nature of
of the Site including
the Site including existing
existing ground
ground levels;
levels;
(b) the form and nature
the of the subsurface
nature of subsurface conditions;
conditions;
(c)
(c) hydrological conditions
the hydrological conditions ofof the Site;
Site;
(d)
(d) climatic conditions
the climatic conditions ofof the
the Site;
Site;

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(e)
(e) the means and
the and access
access to the
the Site;
Site;
(f) the locations
the locations and routes ofof the
the existing
existing services,
services, mains
mains or other
other utilities;
utilities;
(g) the existence
the existence ofof any
any vegetation
vegetation or
or foliage;
foliage;
(h) the risk of
the risk of injury or
or damage
damage toto property
property within,
within, adjacent
adjacent to
to or
or in the
the vicinity
vicinity of
of the
the Site
Site or
or to
to
the occupier
the occupier ofof such property;
property; and
and
(i) the availability
the availability of
of labour,
labour, energy
energy sources,
sources, materials and others
materials and others necessary
necessary for the
the construction
construction
and completion
and completion of of the
the Works.
Works.

(2)
(2) Other than
Other than the
the provisions
provisions of
of Clause
Clause 111.4(1),
1.4(1), itit is also
also aa condition
condition of
of this
this Contract
Contract that
that the
the Contractor
Contractor
consulted, inspected
has consulted, inspected and
and obtained
obtained all published
published data data regarding information of
regarding the information of the
the Site
Site and
and
the construction
the cOnstruction ofof any works
works on
on the
the Site.
Site.

(3)
(3) The Employer
The Employer and the the Engineer
Engineer are
are not
not bound
bound and are under
and are under no obligation
obligation to provide
provide any
information, data
information, data or details
details about
about the
the Site
Site to the Contractor.
to the Contractor. IfIf any
any such
such information,
information, data
data or details
details 7
are givercw-tne-conrractor;·eitner
&tr given to the Contractor, either Defore-or•aftef·tne· suoffiissioni ·o-rtlie
before of after the submission renaer; tliis
of the Tender, this must not
not be
be _J
taken as
taken as relieving
relieving the
the Contractor
Contractor of
of his obligations stated
his obligations stated in
in Clauses
Clauses 111.4(1) and (2).
1.4(1) and

(4)
(4) The information,
The information, data
data or details
details referred
referred to in Clause
Clause 111.4(3) include those provided
1 .4(3) include provided

(a)
(a) by the Employer,
by the Employer, the
the Engineer or their
Engineer or their employees;
employees; and
and
(b)
(b) Contract Documents
in the Contract Documents

the Employer
and the Employer and thethe Engineer
Engineer do
do not warrant the
not warrant the accuracy
accuracy or
or the
the correctness of the
correctness of the
information, data
information, data or
or details
details so
so provided
provided and
and the
the Contractor
Contractor is duty
duty bound
bound to independently
independently verify
verify
the same.
the same.

12 SUFFICIENCY OF
SUFFICIENCY OF TENDER
TENDER AND
AND ADVERSE
ADVERSE PHYSICAL
PHYSICAL CONDITIONS
CONDITIONS

12.1
12.1 Sufficiency of
Sufficiency of Tender
Tender

(1)
(1) The Contractor
The Contractor must
must satisfy
satisfy himself
himself as
as to
to the
the correctness
correctness and
and sufficiency
sufficiency of
of the
the Tender
Tender including
including
rates and prices
the rates prices in the
the Bills
Bills of
of Quantities.
Quantities. The
The Contractor
Contractor must
must also ensure
ensure that
that the
the Contract
Contract
Sum covers
covers all
all his obligations
obligations under
under the
the Contract
Contract

(2) Toe Contractor must ensure

The Contractor ensure that the
the Contract
Contract Sum has taken into
has taken into consideration
consideration the
the extent
extent and
and
nature of the
nature of the works
works and
and materials
materials necessary for the
necessary for the construction
construction and
and completion
completion of
of the
the Works and
and
the making
the making good of any defects.
good of defects.

12.2
12.2 Adverse Physical
Adverse Physical Conditions
Conditions

(1) If the
If the Contractor
Contractor encounters
encounters any
any conditions about the
conditions about the Site
Site (other
(other than
than climatic
climatic conditions)
conditions) which
which
directly or indirectly
have directly indirectly caused
caused the
the delay
delay of
of the
the Works
Works beyond
beyond the
the Date
Date for
for Completion,
Completion, and
and the
the
Contractor has incurred
Contractor incurred Costs
Costs as aa consequence,
consequence,

(a)
(a) the Engineer
the must take
Engineer must take the delay
delay into
into consideration
consideration in determining any
in determining any extended
extended Date for
Completion to
Completion to which
which the
the Contractor
Coµtractor may be entitled
may be entitled under
under Clause
Clause 44;
44; and
and

(b) the Engineer

the Engineer must certify the
must certify the additional
additional Costs
Costs in
in accordance
accordance with the provisions
provisions of
of Clause
Clause
53.

(2) The conditions

The conditions referred to
to in
in Clause
Clause 12.2(1)
12.2(1) above
above include
include the
the conditions
conditions listed
listed in Clause
Clause 111.4(1)
1.4(1)
for which
for which the
the Contractor
Contractor could
could not
not have anticipated given
have anticipated given the
the time available
available in
in preparing
preparing his Tender
Tender
and the
and the nature
nature of
of the
the conditions
conditions encountered
encountered in relation to the
relation to the Works.
Works. 7

12.3
12.3 Taxes and Custom
Taxes Custoni Duties
Duties

(1) The Contractor

The Contractor must
must pay all taxes
taxes which
which are
are payable under Malaysian
payable under Malaysian laws including
including the
the payment
payment
of any
of any service
service tax to any
tax to any specialist
specialist designers
designers whom
whom he employs.
he employs.

13 WORKS TO
WORKS IN ACCORDANCE
TO BE IN ACCORDANCE WITH CONTRACT
WITH CONTRACT

13.1
13.1 Works to be in Accordance
Works Accordance with
with Contract
Contract

(1)
(1) The Contractor
The Contractor must
must construct
construct and
and complete
complete the the Works
Works and make good
and make good any defects
defects in the
the Works in
accordance with
accordance with the Contract
Contract unless itit is
is legally
legally or
or physically
physically impossible
impossible to
to do so.
so.

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Engineering Works

(2) legal or
The legal impossibility referred
physical impossibility
or physical referred to in Clause 13.1(1) includes any
Clause 13.1(1) supervening
or supervening
auy initial or
impossibility.
impossibility.

(3) If
If the lega! or
the legal impossibility is of
physical impossibility
or physical temporary in nature
interim or temporary
of interim days,
exceeding 90 days,
nature not exceeding
then such
then impossibility is to
physical impossibility
such legal or physical treated as
to be treated suspended in
as if the Works have been suspended
accordance with the proV'isions
accordance of Clause
provisions of Clause 42. Contractor's entitlements
case the Contractor’s
42. In such a case also in
entitlements are also
with those
accordance with
accordance those stated 42.
stated in Clause 42.

13.2
13.2 Contractor Comply with
Contractor to Comply Engineer's Instructions
with Engineer’s Instructions

{I)
(1) The Contractor comply with and adhere
Contractor must comply Engineer's instructions
strictly to all Engineer’s
adhere strictly or
instructions touching or
which are properly
concerning the Works which
concerning properly issued accordance with the Contract
issued in accordance Contract

(2) The Contractor must take

The Contractor Engineer or where
only from the Engineer
instroctions only
take instructions Engineer's
where the Engineer’s
Representative so delegated
Hi" so
Representative is with the relevant
deiegarea with autliorities~ from
relevant authorities, tlit\Engmeer·s
from the Raj)iesentatiVe.
Engineer’s Representative.

14 CONTRACTOR’S SUBMISSIONS
CONTRACTOR'S SUBMISSIONS

14.1
14.1 Documents
Documents to Submitted
be Submitted
to be

(1)
(I) The must submit to the Engineer
Contractor must
The Contractor documents (collectively,
following documents
Engineer the following "Contractor's
(collectively, “Contractor’s
Submissions") 'within
Submissions”) within 14 Letter of
of the Letter
14 days of Acceptance, or
of Acceptance, auy extended
or any by the
approved by
extended time approved the
Engineer:
Engineer:

(a) an construction program

overall construction
au overall program (“Master showing the construction
Program") showing
("Master Program”) and
constroction and
completion of
completion or before
the Works on or
of the the Date
before the Completion;
Date for Completion;

(b)
(b) a general statement (“General
general method statement Statement") of
Method Statement”)
("General Method the Works;
of the

(c) organisation chart (“Organisation

an organisation Chart'');
("Organisation Chart”);

(d) curves (“S

'S' curves
‘S’ Curves") showing
("S Curves”) respectively the planned
showing respectively physical progress
planned financial and physical progress
of the
of Works;
the Works;

(e)
(e) a plant utilisation program
plaut utilisation ("Plant Utilisation
program (“Plant Program"); and
Utilisation Program”);

(f) of the
forecast of
a forecast labour requirements
the labour requirements (“Labour Forecast").
("Labour Forecast”).

(2) None of Contractor's Submissions

of the Contractor’s Document. This provision
Contract Document.
Submissions is aa Contract provision continues apply
continues to apply
even of the Contractor’s
even ifif any of Submissions are
Contractor's Submissions together with other documents
are bound together fonning the
documents forming
Contract and referred
Contract referred to as such.

14.2
14.2 The Program
Master Program
The Master

(I)
(1) Program prepared
Master Program
The Master
The Contractor must
prepared and submitted by the Contractor must

(a) be in such form as the Engineer reasonably require;

Engineer may reasonably require;

(b)
(b) sufficient details
be in sufficient nature of
the nature
details as the Works requires;
of the Works requires; and

(c) identify construction activities

highlight any construction
identify or highlight are critical to
activities which are the completion
to the the
of the
completion of
Works including
Works applicable the float time of
including where applicable those non-critical
of those activities.
non-critical activities.

(2) The
The Master must also
Master Program must indicate the rate
also indicate rate of of major
construction of
of construction major activities of the Works
activities of Works
which are
which reasonably required
are reasonably Engineer.
the Engineer.
required by the

(3)
(3) The Engineer may require
Engineer may amendments to be made to the Master
require amendments Program submitted by the
Master Program
instruct for its re-submission
Contractor and instruct
Contractor if there
re-submission if errors, inconsistencies
are errors,
there are incoherence
inconsistencies and incoherence
the Master
within the Program.
Master Program.

(4)
(4) If the Engineer
If Engineer is of opinion that
the opinion
of the actual progress
that the actual progress of the Works
of the does not conform
Works does to the
confonn to
Program, the Engineer
Master Program,
Master for revision
Engineer may instruct for be made to
revision to bC to the Master Program. The
Master Program.
Contractor produce aa revision
must produce
Contractor must revision to the Master Programme within
Master Programme within 14 days he issued with a
he is issued
Certificate of
Certificate Extended Date
of Extended Completion under
Date for Completion Clause 44.3(3).
under Clause 44.3(3).

(5)
(5) The revised
revised Master Program must
Master Program

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(a)
(a) indicate that it is aa revised
indicate that Master Program with the appropriate
revised Master revision number; and
appropriate revision

(b)
(b) take into consideration
take progress of
consideration the progress the Works
of the Works and the Works completed
Works remain to be completed
Contract
under the Contract,

(6)
(6) If it is practical
If practical and Engineer so instructs,
when the Engineer
and when Contractor must prepare
instructs, the Contractor programs of
prepare programs shorter
of shorter
duration in any
duration particular period
any particular greater details
period in greater which amplify
and which
details and indicated on the
activities indicated
amplify the activities _;
Master Program in that
Master that period.
period.

14.3
143 General Statement
General Method Statement

(!)
(1) The General
The Statement must generally
General Method Statement arrangement, sequence and method
describe the arrangement,
generally describe of
method of
construction of
construction Works, or
of the Works, major items which
or major which comprise the Works.
comprise the

(2)
(2) The
The General
General Method Statement riot necessarily
indicate, but hot
Statement must also indicate, limit to,
necessarily limit to,

(a)
(a) the manpower;
the manpower;
(b)
(b) machinery
machinery and equipment;
and equipment;
(c)
(c) materials; and
materials;
(d)
(d) methodology
methodology

to be employed
employed by
by the Contractor construct and
Contractor to construct the Works, or
complete the
and complete items which
or the major items
case may be.
comprise the Works as the case
comprise

14.4
14.4 Organisation Chart
Organisation Chart

(1)
(I) The
The Organisation
Organisation Chart Contractor's personnel
indicate the Contractor’s
Chart must indicate involved in the Works in
personnel involved
order of
descending order
descending seniority and the line of
of seniority communication or
of communication or reporting to the most of
most junior level of
supervisory staff
supervisory Site.
staff on Site.

(2)
(2) The
The Contractor undertakes to update the Organisation
Contractor undertakes if there
Organisation Chart if there are any changes
are any personnel
to its personnel
changes to
involved the Works
involved in the submit a copy
.and to submit
Works.and such updated
of such
copy of Organisation Chart
updated Organisation Engineer.
the Engineer.
Chart to the

14.5
14.5 ‘S’ Curves
'S' Curves

(I)
(1) The ‘S’
The prepared for both the scheduled
'S' curves prepared financial progress
scheduled financial progress and scheduled physical progress
scheduled physical
ooff the Works sequence and
Works must reflect the sequence of the
timing of
and timing the activities items indicated
activities or work items indicated on the
Master Program.
Master

(2)
(2) The discuss and agree
Contractor must discuss
The Contractor Engineer on
with the Engineer
agree with made and the method
assumptions made
on the assumptions
of preparing the
of preparing the ‘S’ curves prior
'S' curves prior to their submission to the Engineer.
their submission Engineer.

(3)
(3) Engineer may use the
The Engineer
The the ‘S’ curves as aa means of
'S' curves monitoring the progress
of monitoring of the Works.
progress of

14.6
14.6 Plant Utilisation Program

(1)
(I) The Plant
The Plant Utilisation Program must
Utilisation Program must indicate number, type, model, rated
indicate the number, rated capacity of
make of
capacity and make
the and equipment
the plant and the Contractor
equipment to be used by the construction and completion
the construction
Contractor in the of the
completion of
Works.

(2)
(2) The Plant Utilisation
The Plant Program must also have
Utilisation Program have indication the plant
if the
indication if plant and equipment indicated is
equipment indicated
owned or
absolutely owned
absolutely Contractor.
or hired by the Contractor.

(3)
(3) In
In preparing Plant Utilisation
preparing the Plant Utilisation Program, Contractor must
Program, the Contractor consideration the
take into consideration
must take
duration and type
sequence, duration
sequence, of activities
type of on the Master
indicated on
activities indicated Program.
Master Program.

14.7
14.7 Lahour Forecast
Labour Forecast -,
!
(I)
(1) The Forecast must generally
The Labour Forecast generally indicate category and nUillber
indicate the category number of staff and
of the various staff
labour (skilled, un-skilled personnel)
(skilled, semi-skilled and un-skilled personnel) required for the construction completion
and completion
construction and
of the Works
of accordance with the Master
Works in accordance Program.
Master Program. 7

14.8
14.8 Report
Monthly Report

(1)
(I) Before the seventh day of
Before each month,
of each Contractor must
month, the Contractor must prepare Engineer a
the Engineer
prepare and submit to the
monthly
monthly report
report (“Monthly showing the progress
Report”) showing
("Monthly Report") and .financial
progress and financial status of the
of the Works of
status of
preceding
preceding month.

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(2) The Monthly Report

The Monthly Report must following documents
incorporate the following
must incorporate information:
documents and information:

(a) features of
salient features
salient Works;
of the Works;
(b)
(b) . the ‘S’ corresponding actual
Curves with the corresponding
'S' Curves financial progress
physical and financial
actual physical indicated;
progress indicated;
(c) weather report;
· weather report;
(d)
(d) plant utilisation;
plant utilisation;
(e)
(e) manpower and labour returns;
manpower
(f) major items
major items of completed;
Works completed;
of the Works
(g) a listing of all instructions
listing of issued; and
instructions issued;
(h) • such other infonnation and details
other information Engineer may reasonably
details as the Engineer require.
reasonably require.

14.9
14.9 Contractor of Duties
Relieved of
Contractor not Relieved Duties

(I)
(1) The Engineer of
comments by the Engineer
and any comments
The submission to and any of
of any Submissions and
Contractor's Submissions
of the Contractor’s
the Monthly Report do
Monthly Report not ielievethe
ao riot Coritracfor ofaiiy
relieve the Contractor of any of his duties
of his Contract.
duties under the Contract.

(2)
(2) The information in the
contents and information
The contents the Contractor’s Submissions and Monthly
Contractor's Submissions including any
Report, including
Monthly Report,
revisions made to those
revisions those submissions, constitute any notices
submissions, do not constitute which-the
notices which Contractor is required
the Contractor required
to serve under any provisions
serve under provisions of Contract
the Contract
of the

14.10
14.10 Contractor Make Revisions
to Make
Contractor to

(I)
(1) The promptly make any revision to the ‘S’
Contractor must promptly
The Contractor Plant Utilisation
Curves, the Plant
'S' Curves, Program
Utilisation Program
Labour Forecast
and the Labour if and
Forecast if when aa revision
and when or update
revision or Master Program.
update is made to the Master Program.

(2)
(2) The provision
The provision ofof Clause applies irrespective
14.10(1) applies
Clause 14.10(1) if the revision
irrespective if revision or Master
of the Master
or update of
Program initiated by
is initiated
Program is Contractor or is instructed
by the Contractor Engineer.
instructed by the Engineer.

15 SITE ADMINISTRATION
SITE ADMINISTRATION

15.l
15.1 Contractor's Supervision
Contractor’s Supervision

(I)
(1) Contractor must provide
The Contractor
The all necessary
provide all during the construction
necessary supervision during Works and
of the Works
construction of
also as the Engineer
long as
also as long consider it necessary
Engineer may consider for the
necessary for proper perfonnance
the proper of the
performance of
Contractor's obligations
Contractor’s Contract
obligations under the Contract

(2) The Contractor

The Contractor must provide
provide and on the
employ on
and employ the Site only such technical
experienced technical
such skilled and experienced
personnel who
personnel competent to give proper supervision
who are competent the Works.
of the
supervision of

15.2
15.2 The Site Manager
The

(1)
(I) The Contractor
The designate aa competent
Contractor must designate who must
representative who
competent representative must be for the
site full time for
be on site
of the Works.
supervision of
supervision This representative
Works. This of the Contractor
representative of be referred
may be
Contractor may referred to on Site, in
on Site, m all
correspondences and in these
correspondences these Conditions the Site Manager.
as the
Conditions as Manager.

(2) The Site

The Site Manager Contractor to receive
authorised by the Contractor
Manager is authorised receive on behalf all instructions
on his behalf instructions from the
Engineer and any instruction
Engineer and received by the Site
instruction received instruction issued
Manager is an instruction
Site Manager Contractor.
issued to the Contractor.

(3)
(3) The Manager must
Site Manager
The Site Engineer. If
approved by the Engineer.
must be approved If the Engineer does not
the Engineer approve the
not approve
Contractor's
Contractor’s choice Manager, or
Site Manager,
of the Site
choice of anytime after having
or at anytime having given revoke the
approval revoke
given approval
approval, he must
approval, must state his reasons
state his reasons for doing The non-
so. The
doing so. non- approval or the revoking
approval or revoking of approval
of any approval
unreasonable.
not be unreasonable.
must not

(4)
(4) The Manager must be proficient
Site Manager
The Site English Language
proficient in the English Bahasa Malaysia.
Language or Bahasa Malaysia.

(5)
(5) If
If the approval of the
approval of Site Manager
the Site is revoked
Manager is Engineer, the
revoked by the Engineer, soon as
Contractor must, as soon
the Contractor
practicable, Manager from
practicable, remove the Site Manager replace him by another
from the Site and replace another representative
representative
Engineer.
approved by the Engineer.
approved

15.3
15.3 Employees
Contractor's Employees
The Contractor’s

(1)
(I) The Contractor
The Contractor must provide and employ Site only suitably
on the Site
employ on skilled and experienced,
suitably skilled experienced, semi-
skilled and unskilled
skilled which are necessary
labour which
unskilled labour necessary for and completion
construction and
for the construction the Works
of the
completion of
and to make
and make good any Works.
any defects to the Works.

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(2)
(2) The Engineer
The Engineer has the
the power object to
power to object to and
and require
require the Contractor
Contractor to remove
remove from the
the Site
Site any
any of
of
the Contractor’s
the Contractor's employees
employees and
and the
the Contractor
Contractor must
must remove cause to be removed
remove or cause removed these
these
employees from the
employees the Site.

(3)
(3) The
The Engineer can only
Engineer can only exercise
exercise the
the power
power referred in Clause
referred to in Clause 15,3(2)
15.3(2) if
if the
the Engineer
Engineer finds
finds that
that the
the
Contractor's employee
Contractor’s employee who is sought
sought to be
be removed from Site
removed from Site

(a)
(a) misconducted himself;
has misconducted himself; or
(b)
(b) incompetent or
is incompetent or negligent
negligent in the
the performance of his duties
performance of duties

and such
and such misconduct, incompetence or negligence
misconduct, incompetence has caused
negligence has caused an adverse
adverse and
and negative
negative impact
impact upon
upon
the Works.
the Works.

(4)
(4) The Contractor
The Contractor must
must ensure that any
ensure that any person
person who has
has been removed under Clause
removed under Clause 15.3(2)
15.3(2) is not
not
alloWed·tooe
allowed involvcil in
to be involved iifthe without the approval
the Works without approval of
of the
the Engineer.'
Engineer. -)
(5)
(5) If the Contractor
If the Contractor replaces or substitutes
replaces or substitutes the
the person
person so removed, such replacement
removed, such replacement or substitution
substitution is
entirely at
entirely at the
the Contractor’s
Contractor's own
own costs
costs and
and expenses.
expenses.
_J
(6)
(6) The Contractor
The Contractor must ensure that
must ensure his personnel
that all his Site must
personnel on Site must be Malaysian
Malaysian citizens
citizens or
or those
those who
are in possession
are in of valid
possession of valid working
working permits
pennits if
if they
they are
are foreigners.
foreigners.

15.4
15.4 Days and
Days Hours of
and Hours of Working
Working

(I)
(1) The Contractor
The Contractor must
must not carry out any
not cany any construction
construction works
works at
at night or
or on
on public holidays unless
public holidays unless prior
prior
approval obtained from
approval is obtained from the
the Engineer.
Engineer. The
The Engineer
Engineer must
must not
not unreasonably
unreasonably withhold
withhold any
any such
such
approval.
approval.

(2)
(2) The restriction
The restriction of
of working days and
working days and hours
hours does
does not
not apply
apply if
if there
there is
is situation
situation such
such that
that the
the works to
to
carried out
be carried out at night
night or
or on
on public holidays are
public holidays are

(a)
(a) unavoidable or
unavoidable or necessary
necessary for the
the saving
saving of
oflife
life or property;
property;

._(b)
(b) unavoidable or necessary
unavoidable necessary for the
the safety
safety of
of the
the Works; or
or

(c)
(c) by their
their nature
nature require to be
require to be executed
executed in multiple
multiple or
or continuous
continuous shifts.
-,
such an instance,
In such
In instance, the Contractor
Contractor must infonn the
must inform the Engineer
Engineer of
of his actions at
his actions earliest possible
at the earliest possible I
opportunity.
opportunity.

(3)
(3) The Contractor must
The Contractor must assume responsibilities if
assume all responsibilities if the
the Engineer
Engineer grants
grants approval
approval to
to work
work at
at night
night or
or
on public
on public holidays. The Contractor
holidays. The Contractor must
must comply
comply with all relevant
relevant requirements
requirements imposed
imposed by
relevant authorities
relevant authorities and the cost of
the cost of such
such compliance
compliance mustmust be solely borne
be solely bome by the Contractor.
by the Contractor.

(4)
(4) For the
For the purpose of this
purpose of this Clause
Clause 15.4,

(a)
(a) ''night'' means
“night” means the
the time
time from
from 8.00
8.00 p.m. to
to 8.00
8.00 am.;
a.m.; and
and

(b) "public holiday”

“public holiday'' means
means the
the gazetted
gazetted public holidays in the
public holidays the State
State where
where the
the Works are
are
constructed in addition
constructed addition to any
any public
public holidays
holidays as
as may be gazetted
gazetted by the
the Malaysian
Malaysian
Government.
Government.

16
16 SUPPLEMENTARY SOIL
SUPPLEMENTARY SOIL INVESTIGATION
INVESTIGATION -,
16.1
16.1 Additional Boreholes
Additional Boreholes

(!)
(1 ) If the Engineer
If Engineer considers
considers at
at any
any time
time during
during the
the execution
execution of
of the Works that
that additional soil data
additional soil data are
are
required, the
required, the Engineer
Engineer may
may instruct
instruct the
the Contractor
Contractor to drill
drill boreholes or
or to cany exploratory
carry out exploratory
excavation.
excavation. ·

(2)
(2) The Contractor
The Contractor is entitled
entitled to be paid
paid for the
the carrying out of
carrying out of such
such boreholes or exploratory
boreholes or exploratory works by
by
ofDayworks
way of Dayworks under Clause 52.5 unless
under Clause item or aa Provisional
unless an item Provisional Sum in respect
respect of
of such
such work
work is
already included
already included in
in the Bills
Bills of
of Quantities.
Quantities.

© TThe Institution of
h e Institution
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Malaysia
of Engineers,
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For Civil Engineering Works
Engineering Works

17 SETIINGOUT
SETTING OUT

17.1
17.1 Accurate Setting
Accurate Setting Out
Out

(!)
(1) The Contractor
The Contractor must
must

(a)
(a) accurately and correctly
accurately correctly set
set out the Works;
Works;

(b) ensure the correctness

ensure correctness of
of the
the positions,
positions, levels,
levels, dimensions,
dimensions, and
and alignment
alignment of
of all parts
parts of
of
■ the
the Works;
Works; and

(c)
(c) provide all necessary
provide necessary instruments,
instruments, equipment,
equipment, apparatus,
apparalns, labour
labour and
and suitably
suitably qualified
qualified or
or
experienced surveyors
experienced surveyors and
and survey
survey technicians
technicians m
in fulfilling
fulfilling his obligations
obligations in (a) and
and (b)
above.
above.

(2) The Contractor

The Contractor must
must also ensure
ensure that
that he
he has
has all
all the
the original
original reference
reference points,
points, lines
lines and
and levels
levels which
which
are necessary
are necessary for him
him to commence
commence thethe setting
setting out works.
works.

(3) If file
If the Contractor
Contractor considers
considers that
that he does
does not
not possess original reference
possess all the original points, lines
reference points, lines and levels
levels
mentioned in
mentioned in Clause
Clause 17.1(2),
17.1 (2), he
he must
must immediately
immediately notify
notify the Engineer
Engineer in writing
writing for the details
details to
be provided.
be provided.

(4) Upon the

Upon the receipt
receipt of
of the notice
notice from the
the Contractor
Contractor under
under Clause
Clause 17.
17.1(3), the Engineer
1(3), the Engineer must
must within
within 7
days
days furnish toto the
the Contractor
Contractor the
the necessary
necessary information writing if
infonnation in writing if he
he considers
considers that
that the
information is necessary
information the Contractor
necessary for the Contractor to
to begin the setting
begin the setting out of
of the
the Works.
Works.

(5)
(5) Jfthe
If Engineer delays
the Engineer delays in providing the information
providing the information required
required for the
the Contractor
Contractor to
to begin
begin the setting
setting
out of
out of the Works
Works and
and such
such delay
delay has contributed
contributed to the
the delay
delay of
of the
the Contractor
Contractor to complete
complete the
the
Works before
Works before the Date
Date for Completion
Completion and
and the
the Contractor
Contractor incurs
incurs Costs
Costs as aa consequence,
consequence, then
then

(a)
(a) the Engineer
tire Engineer must
must take
take the
the delay into consideration
delay into consideration in determining
determining any
any extended
extended Date
Date for
Completion which the Contractor
Completion to which Contractor may
may be entitled
entitled under Clanse 44;
under Clause 44; and
and

(b)
(b) the Engineer
file Engineer must
must certify
~ertify the
the additional
additional Costs
Costs in
in accordance
accordance with the
the provisions
provisions of
of Clause
Clause
53.
53.

(6)
(6) The Contractor
The Contractor must
must not be held responsible
be held responsible if if any
any error
error or
or inaccuracy
inaccuracy in setting
setting out is
is due to the
the
incorrect or inaccurate
incorrect inaccurate original reference points,
original reference points, lines
lines and
and levels
levels provided
provided by
by the
the Engineer.
Engineer. In this
this
case, the Contractor
case, Contractor is toto be treated as
be treated as ifif he
he had been
been delayed
delayed in being given the necessary
in being necessary
inforroation and
information and details
details and
and Clause
Clause 17.1(5)
17. I (5) accordingly
accordingly applies.
applies.

17.2
17.2 Errors in Setting
Errors Setting Out
Out

(I)
(1) The Contractor
The Contractor must make good
must make error in the
good any error the positions, dimensions or
positions, levels, dimensions or alignment of the
alignment of
Works irrespective
Works irrespective of
of the cause
cause of
of such
such error.
error.

(2) If the
If the cause
cause of
of such
such error
error is aa direct
direct consequence
consequence of of wrong
wrong data
data or
or information
infonnation provided
provided by the
the
Engineer in writing
Engineer writing or
or in the
the Drawings,
Drawings, and
and such
such errors
errors cause
cause the delay
delay of
of the
the Works
Works beyond the
beyond the
Date for
Date for Completion
Completion and
and the
the Contractor
Contractor incurs
incurs Costs,
Costs, then
then

(a)
(a) Engineer must
the Engineer must take
take the
the delay
delay into
into consideration
consideration in determining
deterroining any
any extended
extended Date
Date for
for
Completion to which
Completion which the Contractor
Contractor may be entitled under
be entitled under Clause
Clause 44;
44; and
and

(b)
(b) Engineer must
the Engineer must certify
certify the
the additional
additional Costs
Costs in
in accordance
accordance with the
the provisions of Clause
provisions of Clause
53.
53.

(3)
(3) If however the
If however the cause
cause of
of the error is aa direct
error is direct consequence
consequence of
of the
the Contractor’s
Contractor's own
own negligence
negligence or any
any
other failings,
other failings, then the Contractor
Contractor is solely
solely responsible
responsible for
for the
the time
time and
and cost
cost implications
implications of
of the
the
making good
making good of of any such error.
any such error.

17.3
173 Approval of
Approval of Setting
Setting Out

(I)
(1) Contractor must
The Contractor must make
make good
good any
any setting
setting out of the Works
out of checked and approved
Works which are checked approved by
by
the Engineer
the Engineer but
but which
which are
are subsequently
subsequently found
found to
to be inaccurate
inaccurate or
or incorrect
incorrect

(2)
(2) The time
The time and
and cost
cost implications
implications of
of the making
making good
good of
of any
any setting
setting out
out errors
errors will
will be
be governed by
governed by
either
either Clause 17.2(2) or
Clause 17.2(2) or Clause
Clause 17.2(3).
17.2(3).

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(3)
(3) The Contractor must provide
The Contractor provide all the necessary
necessary assistance,
assistance, apparatus and
and instruments
instruments for the
Engineer to check
Engineer check the Contractor’s
Contractor's setting
setting out of
of the Works
Works or any part of
of the Works.

18. ACCESS FOR

ACCESS FOR THE
THE ENGINEER
ENGINEER

18.1
18.1 Access for
Access for the Engineer
.)
(!)
(1) The Engineer
The Engineer and
and his representatives
representatives must
must have all reasonable
have at all reasonable times
times access
access to the Works and the
the
Site. This right
Site. of access
right of access to the Engineer
Engineer also
also applies
applies to any place
place and any
any workshops outside the
workshops outside
Site where
Site where works are are being prepared fabricated for incorporation
prepared or fabricated incorporation into the
the Works or where
preparatory
preparatory works areare being carried
carried out in relation to
to the Works.
Works.

(2)
(2) In ensuring
In ensuring the
the Engineer's
Engineer’s right of access
right of access mentioned
mentioned in Clause 18.1(1),
18.1(1), the Contractor must do all
the Contractor
things and
and provide
provide the means of
of access required
required to facilitate
facilitate such access
access by the
the Engineer.
Engineer.

19. SITE SAFETY

SITE SAFETY AND
AND SECURITY
SECURITY

19.1
19.1 Site Safety
Site Safety
_,
(1) The Contractor
Contractor must
must at
at all times before the
the issue
issue of
of the Certificate
Certificate of
of Making
Making Good
Good Defects
Defects under
under
48.4 ensure that
Clause 48.4 that
7
(a)
(a) safety of
the safety of all persons entitled
entitled to be on Site is not endangered;
endangered; and __J

(b)
(b) the Site is maintained
maintained in an orderly state and in a manner that all aspects of
orderly state of safety
safety are
are not
not
compromised.
compromised.

(2) Notwithstanding
Notwithstanding the general
general obligations
obligations of
of the Contractor to comply
comply·with the Contractor
with all laws, the Contractor is
to comply with
with the
the provisions of
provisions of

(a)
(a) Factories and
Factories Machinery Act 1967;
and Machinery 1967; and
(b)
(b) Occupational Safety and
Occupational Safety and Health
Health Act 1994

or any amendments
or amendments to oror re-enactment
re-enactment of these acts
of these acts of
of parliament. Contractor's obligations in
The Contractor’s
parliament. The
this clause
clause also
also extend
extend to and include ail
all the
the regulations
regulations and bylaws
bylaws made under these acts of
under these of
parliament.
parliament.

(3) The Contractor must appoint

The Contractor appoint aa suitably qualified
qualified and
and experienced
experienced person safety officer
person as safety officer whoSe
whose
main duties are
main duties are to ensure
ensure the compliance
compliance by the Contractor
Contractor with safety requirements
with all safety requirements relating to
the execution
execution of
of the
the Works.
Works.

(4)
(4) The appointed
The safety officer
appointed safety officer must duly document
document and report
report all breaches of safety
breaches of safety and accidents
accidents and
injuries or
injuries or death
death to any workmen
workmen to the Contractor
Contractor who must
must then inform the
then inform the Engineer
Engineer in writing.
writing.

(5)
(5) The Contractor
The Contractor must ensure
ensure that all his personnel
personnel and workers
workers including those of his
those of bis sub-contractors
sub-contractors
properly understand
properly understand aod comply with the
and comply the provisions
provisions of
of this
this Clause.
Clause.
_,
(6)
(6) costs incurred by the Contractor
Any costs Contractor in ensuring
ensuring the safety of
the safety of the Site
Site are
are deemed
deemed to
to be included
included in
the Contract
the Contract Sum.

19.2 Security
Site Security
. ,_,,
(1) The Contractor
Contractor must at his own costs
costs and expenses
expenses provide security measures
provide all security measures including but not
limiting to all lights, guards,
guards, fencing, warning
warning signs and watching for the
watching for the protection of the
protection of the Works,
persons
persons entitled to be on Site
Site and also for the
the convenience
convenience of
of the public.

(2)
(2) Where when they
Where and when they are necessary
necessary or
or required,
required, the security
security measures in Clause
measures in Clause 19.2(1)
19.2(1)

((a)
a) be instructed
may be instructed by the Engineer; or
Engineer; or

(b)
(b) must be implemented
must implemented by the Contractor if
the Contractor if they are the requirements of
they are of any duly
constituted authority including any
authority including any service
service provider.

I __,•

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19.3
19.3
ofContract
Contract
For Civil Engineering
Engineering Works

Employer's Responsibility
Employer’s Responsibility on
on Safety
Safety and Security
Security
IEM.CE2011
IEM.CE201I

(1) If the Employer

If Employer requires
requires other
other persons
persons to
to carry
carry out
out works
works on
on the
the Site
Site which
which are
are not
not part
part of
of the
the
Works, then
Works, then the
the Employer
Employer must
must ensure that
that these
these other
other persons
persons must similarly
similarly comply
comply with
with the
the
provisions of
provisions of this
this· Clause.
Clause.

(2)
(2) The
The Employer
Employer must
must also
also ensure
ensure that these
these other persons must
other persons must coordinate and liaise,
coordinate aod liaise with
with the
the
Contractor on
Contractor on all aspects
aspects of
of site
site safety
safety and security.
security.

(3)
(3) Withont limiting
Without limiting the
the general
general obligations Clause 19.3(2),
obligations in Clause 19.3(2), the Employer
Employer must
must also
also require
require these
these
other persons
other persons to
to comply with all
comply with all safety
safety and
and security
security measures
measures initiated
initiated and
and implemented
implemented by the
the
Contractor.
Contractor.

20.
20. CARE OF
CARE OF THE
THE WORKS
WORKS

20.1
20.1 Care of
Care of the Works
Works

(1) The Contractor

The Contractor must
must take responsibility for
take full responsibility for the
the care
care of
of the
the Works oror any
any Section
Section of
of the Works
Works
during the period
during the from the Date
period from Date for
for Commencement
Commencement to to the date of
the date of issue
issue of
of the
the Certificate
Certificate of
of
Completion.
Completion.

(2) For the

For the purpose
purpose of
of this
this Clause,
Clause, the Contractor’s
Contractor's responsibility
responsibility extends
extends to include
include anyany·.-works
works
executed or completed
executed completed by
by others
others which works the Contractor
works 1he Contractor has
has taken
taken over
over as part of the
part of the Works.
Works.

(3) Despite the provisions

Despite provisions of
of Clauses
Clauses 20.
20.1(1) and (2),
1(I) and

(a) the
the Contractor
Contractor is not
not liable
liable for the
the care
care of
of the Works after
after the issue of
of Certificate
Certificate of
of
Completion even
Completion even though
though the Employer
Employer is
is not occupation of
not in occupation of the
the Site
Site or
or has
has not
not
commenced the
commenced the use of the
use of the Works;
Works; and

(b)
(b) the Contractor
the Contractor continues
continues to be responsible
responsible for
for the
the care
care of
of 1hose outstanding works
those outstanding works which
which
he has undertaken
he undertaken toto complete
complete during
during the
the Defects
Defects Liability
Liability Period
Period until
until such
such time
time the
the
works have
works have been
been completed accordance with
completed in accordance the Contract
with the Contract

20.2
20 22 Contractor's Responsibility
Contractor’s Responsibility to
to Make
Make Good
Good Damage or
or Loss
Loss

(I)
(1) If there
If there is any damage
damage or loss
loss to
to the
the Works,
Works, or
or any part
part of
of the
the Works
Works during
during the
the period
period mentioned
mentioned in
Clause 20.
Clause 20.1(1), the Contractor
1(1), the Contractor must
must make good
good such
such loss
loss or damage
damage to
to the
the Works so that the
so that the Works
confonn the requirements
conform to the requirements ofof the
the Contract.
Contract.

(2) The making

The making good
good works
works in Clause 20.2(1)
m Clause 20.2(1) must
must be carried out without
carried out without delay
delay and at the
the Contractor’s
Contractor's
own costs
own costs and
and expenses.
expenses.

(3) If however the damage

If however or loss
damage or loss to
to the
the Works isis caused
caused by aa risk, or a combination
combination of
of risks which
which are
are
among the Employer’s
among Employer's Risks
Risks listed Clause 20.4,
listed in Clause 20.4, then
then the provisions
provisions ofof Clause
Clause 20.3
20.3 is applicable.
applicable.

20.3
20J Damage or
Damage or Loss
Loss Due
Due to
to Employer’s
Employer's Risks
Risks

(1) If the damage

If the damage or loss
loss is caused
caused by an Employer’s
Employer's RiskRisk or
or a combination
combination of
of such
such risks,
risks, the
the
Contractor must
Contractor must make good such
make good such damage
damage oror loss
loss to
to the
the extent
extent instructed
instructed by the
the Engineer.
Engineer. The
The
additional Costs
additional Costs for
for the
the making
making good
good of
of such
such risks
risks are
are to
to be certified
certified by
by the Engineer
Engineer under
under Clause
Clause
53.
53.

(2) If damage
If damage oror loss
loss to the Works and their making
the Works making good
good have
have caused
caused delay
delay to
to the
the Works beyond lhe
Works beyond the
Date for
Date for Completion
Completion of of the
the Works, the Engineer
Works, the Engineer must take such
must take such delay
delay into
into consideration
consideration in
determining any
determining any extended
extended Date
Date for
for Completion
Completion which
which the
the Contractor
Contractor may
may be entitled
entitled under
under Clause
Clause
and certify
44 and certify Costs
Costs incurred
incurred which the Contractor
which tire Contractor may
may be entitled under
be entitled Clause 53.
under Clause 53.

20.4
20.4 Employer's Risks
Employer’s Risks

(I)
(1) The following
The following are
are the
the Employer’s
Employer's Risks:
Risks:

(a)
(a) war (irrespective
war (irrespective ifif lhe
the war
war is declared or not)
declared or not) or hostilities, invasion and act
hostilities, invasion act of
of foreign
foreign
enemies;
enemies;

(b)
(b) acts of
acts of terrorism;
terrorism;

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Works

(c) riots (other

riots (other than
than that
that caused
caused byby the
the Contractor’s
Contractor's own
own employees
employees and those
those of
of his
his sub-
contractors'), commotion or
contractors’), commotion or disorder
disorder or
or civil
civil war;
war;

(d)
(d) any operation
any operation of
of the forces
forces or
or nature
nature which
which an
an experienced
experienced contractor
contractor could
could not have
have
reasonably foreseen or priced
reasonably foreseen for.
priced for.

N.B.
N.B. *• Either oftlte
Either of the following Clause 21A
following Clause or 21B
21A or is to
21B is to apply.
apply.

21A
21 A INSURANCE OF
INSURANCE OF WORKS*
WORKS*

21A.1
21A.1 Contractor's AU
Contractor’s All Risks Insurance Policy
Risks Insurance Policy

(l)
(1) The Contractor
The Contractor must take
take out
out and
and maintain
maintain aa Contractor’s
Contractor's All
All Risks
Risks Insurance
fusurance Policy
Policy comprising
comprising
3:~t
insurances against
insurances

(a)
(a) damage to
damage to the
the Works;
Works; and
and
(b) third party
party liability.
liability.

(2)
(2) The Contractor’s
The Contractor's All Risks
Risks Insurance
Insurance Policy
Policy must
must be maintained from
be maintained from the
the Date
Date for Commencement
Commencement
the issue
until the
until issue of
of the Certificate
Certificate of
of Completion
Completion by the
the Engineer.
Engineer.

(3)
(3) The Contractor’s
The Contractor's All Risks
Risks Insurance
Insurance Policy
Policy must
must be
be in the
the joint names of
joint names of the
the Employer,
Employer, the
Contractor, the
Contractor, the Engineer
Engineer and
and the
the sub-contractors.
sub-contractors. j

(4)
(4) The Contractor
The Contractor must insure the replacement
must insure replacement value
value of
of the
the Works
Works (“Insured
("Insured Sum”)
Sum") which
which is taken
taken to
be Contract Sum
be Contract Sum less the non-
non-Work items in the Bills
Work items Bills of
of Quantities.
Quantities. The
The Insured
Insured Sum
Smn must
must be stated
stated
in the Appendix.
in Appendix.

(5)
(5) The Contractor
The Contractor must
must insure
insure against
against third
third party
party liability
liability for
for aa sum
sum not
not less than that stated
less than stated in the
Appendix.
Appendix.

21A.2
21 A.2 Principal Terms
Principal of the
Terms of the Contractor’s All Risks
Contractor's AU Insurance Policy
Risks Insurance Policy

(I)
(1) The scope
The scope of
of cover
cover of
of the
the Contractor’s
Contractor's All Risks Insurance
Insurance Policy
Policy must
must include
include damages
damages to the
Works caused
Works caused by all risks which
which are
are not
not specifically
specificaliy excluded
excluded or
or which
which are not
not Employer’s
Employer's Risks.

(2) The extensions

The extensions of
of the
the Contractor’s
Contractor's All
All Risks
Risks Insurance
Insurance Policy
Policy against
against damage
damage to the
the Works
Works must
include
include

(a)
(a) costs and
the costs and expenses
expenses of
of debris
debris removal;
removal;
(b)
(b) professional fees
professional fees incurred
incurred in.
in.the reinstatement of
the reinstatement of the
the Works; and
and
(c)
(c) overtime expenses
overtime expenses (including
(including night
night and
and public
public holiday works)..
holiday works)

(3)
(3) The scope
The of cover
scope of cover of
of the
the third
third party liability must
party liability must include
include indemnity
indemnity in
in respect
respect of
of the legal
legal liability
liability
of the
of the insured
insured parties the following:
parties for lhe following:

(a) accidental death

accidental death or bodily injury to
bodily injury to any person;
person; and
and
(b)
(b) accidental loss
accidental loss or
or damage
damage to
to property.
property.

(4)
(4) The indemnity
The indemnity provided
provided and
and insured
insured against
against must include any
must include any costs
costs and
and expenses
expenses incurred
incurred in
defending any
defending any claim,
claim, action
action or proceedings made or
proceedings made or taken
taken by the
the injured
injured party or the
party or the owner
owner of
of the
injured or
injured or damaged
damaged property.
property.

21A.3
2IA.3 Evidence of Insurance
Evidence of Insurance Policy
Policy

(l)
(1) The Contractor
The Contractor must
must produce
produce aa certified
certified copy
copy of
of the
the Contractor’s
Contractor's All Risks Insurance Policy
Risks Insurance Policy to
to the
the
Engineer before
Engineer the commencement
before the commencement of of any
any works
works on Site.
Site. '
(2)
(2) the Contractor
If the
If Contractor is not
not able
able to produce
produce aa certified
certified copy
copy of
of the
the Contractor’s
Ccintractor's All Risks
Risks Insurance
Insurance
Policy, the
Policy, the Engineer
Engineer can
can then
then accept
accept aa cover
cover note evidencing
evidencing that
that such an
an insurance
insurance policy
policy has been
effected for the purpose
effected of the
purpose of the commencement
commencement of of any
any works
works. on Site.
Site. The
The Contractor
Contractor must
must as soon
soon
as a certified
as certified copy
copy of
of the
the policy
policy is available
available forward
forward a copy
copy toto the
the Employer
Employer with
with aa copy
copy to
to the
Engineer.
Engineer.

(3)
(3) The Contractor
The Contractor must
must produce
produce the
the original
original or
or certified
certified true
true copy
copy of
of the
the original
original copies
copies of
of the
the receipt
receipt
of payment
of payment of
of the
the premium paid for the
premium paid the maintenance
maintenance of of the
the Contractor’s
Contractor's All Risks Insurance
All Risks Insurance Policy.
Policy.

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21A.4
21A.4 Failure to Insure
Failure Insure

( 1)
(1) If the
If the Contractor
Contractor fails
fails to effect
effect and maintain
maintain in force the
the Contractor’s
Contractor's All Risks
Risks Insurance
Insurance Policy
Policy
within 45 days of
within of the
the Date
Date for
for Commencement,
Commencement, the the Employer
Employer may then
then effect
effect and maintain force
maintain in force
such aa policy
such policy as required
required of Contractor under
of the Contractor Contract.
under the Contract.

(2) Further to Clause

Further Clause 21A.4(1), Employer may
21A.4(1), the Employer may recover
recover any
any premium paid for the effecting
paid for effecting and
and
maintenance of the
maintenance of the policy
policy mentioned from any
mentioned from any payment due or to
payment due to become
become due to the Contractor
to the Contractor
under the
under the Contract.
Contract.

(3) The Employer’s

The Employer's initiative
initjative in
in taking
taking out and
and maintaining
maintaining the Contractor’s
Contractor's All Risks
Risks Insurance
Insurance Policy
Policy
when the Contractor
when Contractor fails to
to do so is without prejudice
prejudice to
to the
the Employer’s
Employer's rights
rights under the Contract
under the Contract
and in law.

21A.5
21 A.5 Contractor Liable
Contractor for Deductibles
Liable for Deauctitiles

(1) Subject to the provisions

Subject provisions of
of Clause
Clause 21A.6,
21A.6, the
the Contractor
Contractor is fully responsible
responsible and liable
liable for
for any
any
deductibles stipulated in the
deductibles stipulated the Contractor’s
Contractor's All Risks
Risks Insurance
Insurance Policy
Policy unless the loss
unless the loss or
or damage
damage is
caused by the
caused the acts
acts or
or omissions
omissions of
of either
either the Employer
Employer oror the Engineer.
Engineer.

(2) The Contractor

The Contractor may own cost
may at his own cost and expense
expense take
take out such
such additional insurances as he
additional insurances considers
he considers
necessary.
necessary. ·

21A.6
21A.6 Compliance With
Compliance With Policy
Policy Conditions
Conditions

(1)
(1) In the event
In event that
that the
the Contractor
Contractor or the
the Employer
Employer fails
fails to comply
comply with
with any conditions imposed by
conditions imposed the
by the
Contractor's All Risks
Contractor’s Risks Insurance
Insurance Policy,
Policy, each
each must
must indemnity
inderunity the
the other
other against a1i losses
against all losses and
and claims
claims
arising from such
arising such failure.

(2) If there
If any loss
there is any loss or
or damage
damage to
to the
the Works
Works or incident
incident which
which may give
give rise
rise to third
third party
party liability
liability
against Employer, the Contractor
against the Employer, Contractor (and
(and his sub-contractors)
sub-contractors) or the
the Engineer,
Engineer, such
such damage
damage or loss
loss
or incident
or incident must first be reported
must first reported to the insurer with whom
the insurer whom the Contractor’s
Contractor's All
All Risks
Risks Insurance
Insurance
Policy is effected
Policy effected and maintained.
maintained.

21B
21B INSURANCE OF
INSURANCE OF WORKS*
WORKS*

21B.1
21B.1 Employer’s All Risks
Employer's All Insurance
Risks Insurance

(1)
(1) The Employer
The Employer must
must insure
insure in
in the joint names of
joint names of the
the Employer,
Employer, the
the Contractor,
Contractor, the sub-contractors
sub-contractors
and the
and the Engineer to their
Engineer to their respective obligations under
respective obligations under the
the Contract law an All
Contract and in law All Risks
Risks
Insurance Policy
Insurance Policy against
against

(a) damage to
damage to the
the Works;
Works; and
and
(b)
(b) third party
third liability.
party liability.

(2)
(2) The minimum
The minimum period of coverage for
period ofcoverage for the
the Employer’s
Employer's All Risks
Risks Insurance
Insurance must commence from the
commence from
Date for
Date for Commencement
Commencement and
and such
such aa policy
policy must be maintained
must be maintained until
until the
the issue
issue of
of the Certificate
Certificate of
of
Completion.
Completion.

(3) The sum insured

The sum insured for insurance
insurance against
against damage
damage to
to the Works must
the Works must not
not be than the
be less than the Insured
Insured Sum.
Sum.

(4)
(4) The sum insured
The sum insured against
against third
third party liability must
party liability not be
must not be less
less than that
that stated
stated in
in the
the Appendix.
Appendix.

(5)
(5) The taking
The taking out
out and maintenance of
and maintenance of the
the Employer’s
Employer's All
All Risks
Risks Insurance
Insurance Policy
Policy does not
not limit
limit the
Contractor's responsibility
Contractor’s responsibility under Clauses 20 and
under Clauses and 22 of these
22 of Conditions.
these Conditions.

21B.2
21B.2 Principal Terms
Principal Terms of
of the
the Employer’s
Employer's Arranged
Arranged AH Risks Insurance
All Risks Insurance Policy
Policy

(1)
(1) The scope
The scope of
of cover of the Employer’s
cover of Employer's All Risks Insurance
Ali Risks Insurance Policy
Policy must
must include
include damages
damages to the
Works caused by
Works caused by all risks which are not
which are not specifically
specifically excluded
excluded and
and these
these must include
include Employer’s
Employer's
Risks.
Risks.

(2)
(2) The extensions
The of the
extensions of the Employer’s
Employer's All Risks
Risks Insurance
Insurance Policy
Policy against
against damage
damage to the Works
Works must
must
include
include

(a)
(a) the costs and
the costs and expenses
expenses of
of debris
debris removal;

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(b) professional incurred in

professional fees incurred in the
the reinstatement
reinstatement of
of the
the Works;
Works; and
and

(c) overtime expenses

overtime (including night
expenses (including night and
and public holiday works).
public holiday .J

(3)
(3) The scope
The of cover
scope of cover of
of the
the third
third party liability must
party liability must include
include indemnity
indemnity in respect
respect of
of the
the legal
legal liability
liability
of the
of the insured
insured parties
parties for
for the following:
following:

(a) accidental death

accidental death or
or bodily injury to
to any
any person;
person; and
and

(b)
(b) accidental loss or damage
accidental damage to
to property.
property.

(4) The indemnity

The indemnity provided
provided and
and insured
insured against
against must include any costs
must include costs and
and expenses
expenses incurred
incurred in
defending any
defending claim, action
any claim, action or proceedings
proceedings made taken by
made or taken by the injured
injured party the owner
party or the owner of
of the
the
injure_d or
injured damagedJJrOperty.
or damaged property.

21B.3
21B.3 Production of
Production of Employer’s
Employer's All
All Risks Insurance Policy
Risks Insurance Policy

(1)
(1) The Employer
The Employer must
must make
make aa copy of the Employer’s
copy of Employer's All
All Risks
Risks Insurance
Insurance Policy
Policy available
available to the
Contractor before
Contractor the Date
before the Date for Commencement.
Commencement.

(2)
(2) If the Contractor
If the Contractor is
is not
not satisfied
satisfied with
with the
the terms
terms and
and conditions
conditions of
of the
the Employer’s
Employer's All Risks
Risks
Insurance Policy,
Insurance Policy, the
the Contractor
Contractor may
may at his own costs
his own costs and
and expenses
expenses effect
effect and maintain
maintain any
any
additional or
additional or other
other insurance
insurance policies as he
policies as considers necessary.
he considers necessary.

(3)
(3) If the Employer
If the Employer fails
fails to
to effect
effect and
and maintain
maintain the
the Employer’s
Employer's All Risks
Risks Insurance
Insurance Policy
Policy under
under Clause
Clause
21B.l, the
21B.1, Contractor may
the Contractor may consider
consider that
that Clause
Clause 21
21A then applies.
A then The Engineer
applies. The Engineer must
must certify
certify the
the
additional Costs
additional Costs incurred
incurred by the
the Contractor
Contractor in accordance
accordance with
with the provisions
provisions of
of Clause
Clause 53.
53.

(4)
(4) If the failure
If the failure of
of the
the Employer
Employer in effecting
effecting the Employer’s
Employer's All Risks
Risks Policy
Policy has delayed the 7
commencement
commencement of of the
the Contractor’s
Contractor's execution
execution of
of the
the Works,
Works, and such delay
and such delay has caused
caused delay
delay to
to the
Date for
Date for Completion,
Completion, the
the Engineer
Engineer must
must then
then determine
determine aa new Date for
new Date for Completion
Completion which thethe
Contractor is entitled
Contractor entitled under
under Clause
Clause 44
44 and
and Costs
Costs which
which the Contractor
Contractor is entitled
entitled under Clause
Clause 53.
53.

21B.4
21B.4 Contractor Liable
Contractor Liable for
for Deductibles
Deductibles

(1)
(1) Except
Except for losses or
for losses or damages
damages caused
caused by
by Employer’s
Employer's Risks
Risks or
or for which the Employer
which the Employer is
is responsible
responsible
due to his acts
due acts or
or omissions,
omissions, the Contractor
Contractor is responsible
responsible for
for the
the amount
amount ofof any
any deductibles
deductibles under
under
the Employer’s
the Employer's All Risks
Risks Insurance
Insurance Policy.
Policy.
J
(2)
(2) If losses or
If any losses or damages
damages toto the Works are claimable
claimable under the Employer’s
under the Employer's All Risks
Risks Insurance
Insurance
Policy, then
Policy, then the
the Contractor
Contractor isis not entitled to any
not entitled payment in
any payment in respect of the
respect of the costs
costs and
and expenses
expenses in
reinstatement of the Works
reinstatement of Works other
other than
than the
the monies
monies received received under
received or to be received such aa policy.
under such policy.

(3)
(3) Clause 21B.4(2)
Clause 21B.4(2) does
does not apply
apply if
if the
the cause
cause or
or causes
causes of
of the
the losses
losses or
or damages
damages to the
the Works are
are
attributable to Employer’s
attributable Employer's Risks
Risks in which
which case Contractor's is entitled
case the Contractor’s entitled to the
the full amounts
amounts of
of
monies
monies received under the
received under the insurance
insurance policy.
policy.

(4)
(4) If the monies
If the monies received
received from
from the insurance policy
the insurance less than
policy are less the costs
than the incurred by the
costs incurred the Contractor
Contractor
in the
the reinstatement works, the
reinstatement works, the Contractor
Contractor may
may claim
claim for the
the balance
balance as
as Costs
Costs under
under Clause
Clause 53.

21B.5
21B.5 With Policy
Compliance With Policy Conditions
Conditions

(1)
(1) Contractor must
The Contractor
The comply and
must comply and must also ensure
must also ensure that
that his sub-contractors
sub-contractors comply
comply with
with the
the terms
terms
and conditions
and conditions of
of the
the Employer’s
Employer's All Risks Insurance Policy.
Risks Insurance Policy.

(2)
(2) The Contractor
The Contractor must
must not
not do
do anything, or omit
anything, or omit to do anything,
anything, that can render
that can render the Employer’s
Employer's All
All
Risks Insurance
Risks Insurance Policy
Policy voidable increase in the premium
an increase
voidable or an payable.
premium payable.

(3)
(3) The Contractor
The Contractor must
must fully comply
comply with
with any
any notice
notice procedures for claims
procedures for claims and
and the
the administrative
administrative
procedures for
procedures for such
such claims
claims under Employer's All Risks
under the Employer’s Insurance Policy.
Risks Insurance Policy.

22
22 INDEMNITY
INDEMNITY

22.1
22.1 Injury to
Injury Persons and
to Persons and Damage
Damage to
to Property
Property

(1)
(1) Contractor must
The Contractor
The must indemnify
indemnify and
and keep
keep the
the Employer
Employer indemnified
indemnified against
against all losses,
losses, expenses,
expenses,
costs, damages,
costs, damages, liability
liability and claims
claims in respect
respect of
of

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(a)
(a) death or
death or injury
injury to any
any persons;
persons; and
and

(b)
(b) loss of
loss of or damage
damage to any personal
personal or
or real property (other than
property (other than the
the Works)
Works)

which arise
which arise out of
of the
the Contractor’s
Contractor's execution
execution of
of the Works
Works and making good of
and the making of any defects
defects to
to
the Works.
the Works.

(2) The indemnity

The indemnity mentioned
mentioned in
in Clause
Clause 22.1(1)
22.1(1) does not apply in the
not apply the following
following situations:
situations:

(a)
(a) the permanent
the use or occupation
permanent use of the
occupation of the Works
Works or
or any part of the Works by
part of by the
the Employer;
Employer;

(b)
(b) unavoidable consequence
the unavoidable consequence of
of the
the Contractor’s
Contractor's execution
execution of
of the
the Works or the making
making
good of
good of any
any defects
defects of the
the Works in accordance
accordance with
with the Contract;
Contract;

(c)
(c) the act or neglect
act or of the
neglect of the Employer
Employer or his agents or other
agents or other contractors
contractors employed
employed by the
the
Employer.
Employer.

22.2
22.2 Indemnity by the
Indemnity the Employer
Employer

(1) The Employer

The Employer must
must indemnify
indemnify thethe Contractor against all losses,
Contractor against losses, expenses,
expenses, costs, damages, liability
costs, damages, liability ·
and--claims
and claims in respect of the
respect of the situations
situations referred
referred to in Clause
Clause 22.1(2).
22.1(2).

22.3
22.3 Contribution
Contribution

(I)
(1) The Contractor’s
The Contractor's liability
liability to
to indemnify
indemnify the
the Employer
Employer under
under Clause
Clause 22.1 is
is reduced
reduced in proportion
proportion to
the extent
the extent that
that the Employer
Employer or or his
his agents
agents or
or other
other contractors
contractors employed
employed by the Employer
Employer are
responsible and contributed
responsible and contributed to the death or or injury
injury to
to the
the persons
persons or
or loss
loss of
of or damage
damage toto the
property.
property.

(2) The indemnity

The indemnity given
given by Contractor in Clause
by the Contractor must not
Clause 22.1 must not be defeated by
be defeated by reason
reason of
of any
any
negligence or
negligence or omission
omission of
of the
the Employer,
Employer, the Engineer
Engineer or
or any other
other person for whom
person for whom the
the Employer
Employer
ot the
of the Engineer
Engineer is responsible.
responsible.

(3) The negligence

The negligence or omission
omission referred
referred to in Clause
Clause 22.3(2)
22.3(2) above
above includes
includes but not limited
but is not limited to
to the
following:
following:

(a) failure of
failure of the
the Engineer to supervise
Engineer to supervise the
the execution
execution of
of the
the Works;

(b) failure of
failure of the
the Engineer
Engineer to
to detect any defect
defect in the Works;
in the Works; and

(c)
(c) failure of
failure of the
the Engineer to properly
Engineer to control the
properly control the Contractor’s
Contractor's site
site operations
operations and
and methods
methods of
of
working.
working.

22.4
22.4 Contractor to Make
Contractor Make Good
Good Damage
Damage to Property
Property

(!)
(1) Despite the Contractor’s
Despite Contractor's liability
liability to indemnify
indemnify thethe Employer
Employer under
under Clause
Clause 22.1
22.l(l)(b),
(l)(b), the
Contractor must
Contractor must make
make good
good any
auy damage
damage to anyany property (not forming
property (not forming part of the
part of the Works)
Works) to to the
the
satisfaction of
satisfaction of the
the Engineer
Engineer or the
the satisfaction
satisfaction of
oflegal owner of
legal owner of such
such property.
property.

(2) Notwithstanding any

Notwithstanding any provisions
provisions of these Conditions,
of these Conditions, the
the Engineer
Engineer has the
the jurisdiction to instruct
jurisdiction to instruct the
the
Contractor to
Contractor to make
make good damage to
good any damage to any
auy property
property not
not forming
forming part
part of
of tire
the Works.
Works.

(3) If the
If the cause of the damage to
cause of to the
the property is caused
properly is caused by
by the
the negligence or omission
negligence or omission of
of the Employer,
Employer,
Engineer or
the Engineer or any
any other
other person for whom
person for whom the the Employer
Employer oror the
the Engineer
Engineer is
is responsible,
responsible, the
proportionate costs
proportionate costs of
of such
such making
making good
good is claimable as Costs
claimable as Costs under
under Clause
Clause 53.
53.

22.5
22.5 Failure of
Failure of Contractor
Contractor to
to Make
Make Good Damage
Damage to Property
Property

(1)
(1) If the
If the Contractor
Contractor fails
fails to
to make
make good
good any damage
damage toto property
property (not
(not forming
forming part
part of
of the Works)
Works) or
or fails
to comply
to comply with
with an
an instruction
instruction of
of the
the Engineer
Engineer issued
issued under
under Clause
Clause 22.4(2),
22.4(2), then
then the
the Employer
Employer is
entitled to employ
entitled employ other
other persons to make
persons to make good
good the
the damage.
damage.

(2) The Employer

The Employer may recover the
may recover the costs incurred in such
costs incurred such making good works from
making good from any monies or
monies due or
become due
to become due to the
the Contractor
Contractor under
under the
the Contract.
Contract.

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(3)
(3) Before the Employer
Before Employer can
can set-off
set-off any monies due or to become
monies due become due to the Contractor
to the Contractor in
in Clause
Clause
Employer must
22.5(2), the Employer
22.5(2), must furnish to the
the Contractor evidence of
Contractor evidence of payments
payments to the other
other persons
persons
who have
who have been employed to
been employed to cany
carry out and complete
complete the
the making good works.
making good works.

23
23 INSURANCE FOR WORKMEN
INSURANCE FOR WORKMEN

23.1
23.1 SOCSO for
SOCSO for Malaysian
Malaysian Workmen
Workmen

((I)
1) The Contractor
The Contractor must
must register and ensure
register and ensure that
that all his
his sub-contractors
sub-contractors register
register all Malaysian
Malaysian workmen
employed in
employed the execution
in the execution ofof the
the Works
Works who are are subject
subject to
to registration
registration under the Employees’
Employees'
Social Security
Social Security Scheme
Scheme (“SOCSO”)
("SOCSO'') in accordance
accordance with
with Employees’
Employees' Social
Social Security 1969 or
Security Act 1969
any amendment or re-enactment
any amendment re-enactment ofof the
the Act.

(2)
(2) For the
For the purpose
purpose ofof this
this Clause,
Clause, “Malaysian
"Malaysian workmen”
workmen" are those are Malaysian
those who are citizens and
Malaysian citizens and
tb.Ose wli6
those are-pennaneilfres1dents
who are of Malaysia.
permanent residents of Malaysia

(3)
(3) The Contractor
The Contractor must
must submit
submit the
the code
code number and the
number and the social
social security
security number of all
number of all those
those who are
are
registered under
registered uoder SOCSO
SOCSO to thethe Engineer
Engineer together
together with
with evidence
evidence of of payment of the
payment of the necessary
necessary
contributions.
contributions.

(4)
(4) The responsibility
The responsibility of
of the Contractor
Contractor to
to comply
comply with the
the provisions
provisions of
ofthls Clause and
this Clause and any SOCSO’s
SOCSO's
requirements extends fem
requirements extends from the Date
Date for
for Commencement
Commencement to the issue of
the issue of Certificate
Certificate of
of Making
Making Good
Good
Defects.
Defects.

(5)
(5) The contractor’s
The contractor's compliance
compliance with
with the provisions of this Clause
provisions of Clause is without prejudice to his
without prejudice
responsibility to
responsibility to indemnify
indemnify the
the Employer
Employer under Clause 22.1(1).
under Clause 22.1(1).

23.2
23.2 Workmen's Compensation Insurance
Workmen’s Compensation Insurance for
for Non-Malaysian
Non-Malaysian Workmen
Workmen

(I)
(1) The Contractor
The Contractor must take out
must take out and
and maintain
maintain aa Workmen’s
Workmen's Compensation
Compensation Insurance Policy in
Insurance Policy the
in the
joint
joint names of the Employer
names of Employer and the
the Contractor
Contractor for
for all
all non-Malaysian
non-Malaysian workers under Workmen's
workers under Workmen’s
Compensation Act
Compensation Act 1952,
1952, Workmen's Compensation (Foreign
Workmen’s Compensation (Foreign Workers’
Workers' Compensation
Compensation Scheme)
Scheme)
(Insurance) Order
(Insurance) 1998 or
Order 1998 or any
any amendment
amendment or or re-enactment of the
re-enactment of the Act
Act or
or Order.
Order.

(2)
(2) The Contractor
The Contractor must
must ensure
ensure his
his obligation
obligation in
in Clause
Clause 23.2(1) is also
23.2(1) is also satisfied
satisfied by
by his sub-contractors
his sub-contractors
who have
who have non-Malaysian
non-Malaysian workmen employed for the execution
workmen employed execution of
of the
the Works.
Works.

(3)
(3) Contractor must
The Contractor ensure that
must ensure that all the Workmen’s
Workmen's Compensation
Compensation Insurance
Insurance Policies
Policies are
are
maintained from
maintained from the Date
Date for Commencement
Commencement to the date
date of
of the
the issue of
of Certificate
Certificate of
of Make
Make Good
Good
Defects under
Defects under Clause
Clause 48.4.
48.4.

(4)
(4) The Contractor
The Contractor must
must place
place with Employer and the
with the Employer the Engineer
Engineer each
each aa certified
certified copy of
of the
Workmen's Compensation
Workmen’s Compensation Insurance
Insurance Policy
Policy or Policies.
Policies.

(5)
(5) The Contractor
The Contractor and/or
and/or his
his sub-contractors
sub-contractors must
must produce
produce certified
certified true
true copies
copies of
of the receipts in
the receipts in
respect of
respect of the
the payment of premiums
payment of premiums paid
paid under such policy
under such policy or
or policies.
policies.

(6)
(6) The Contractor’s
The Contractor's compliance with the
compliance with the provisions
provisions of
of this
this Clause
Clause is without
without prejudice to his
prejudice to
responsibility to
responsibility to indemnify
indenmify the
the Employer
Employer under
under Clause
Clause 22.1(1).
22. !(!).

23.3
233 Insurance for
Insurance Malaysian Workmen
for Malaysian not subject
Workmen not SOCSO
subject to SOCSO

(1)
(1) The Contractor
The Contractor must take out
must take out and
and maintain
maintain an insurance
insurance policy
policy in
in the joint
joint names of the Employer
names of Employer
and the Contractor
and Contractor (including
(including any
any sub-contractors)
sub-contractors) for Malaysian
Malaysian workmen
workmen who are are not subject
subject to
SOCSO in accordance
SOCSO accordance with
with the requirements of Social
requirements of Social Security
Security Act 1969 or
Act 1969 or any
any amendment
amendment or re-re-
enactment of
enactment of the
the Act
Act.

(2)
(2) The insurance
The insurance policy
policy in
in Clause
Clause 23.3(1) must be maintained
23.3(1) must the Date
maintained from the Date for
for Commencement
Commencement to
to the
the
issue of
issue of Certificate
Certificate of
of Make
Make Good
Good Defects.
Defects. ·

(3)
(3) The Contractor
The Contractor must place
place with the
the Employer
Employer and
and the
the Engineer
Engineer each
each aa certified
certified copy
copy of
of the
insurance policy
insurance effected under
policy effected under Clause
Clause 23.3(1).
23.3(1).

(4)
(4) The Contractor
The Contractor must produce certified true
produce certified true copies of th'e
copies of receipts in
the receipts in respect of the
respect of the payment of
payment of
premiums
premiums paid
paid under policy.
under such policy. r
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(5) The contractor's

The contractor’s compliance with the
compliance with the provisions
provisions of
of this
this Clause prejudice to his
without prejudice
Clause is without his
responsibility to
responsibility to indemnify
indemnify the Employer
Employer under
under Clause
Clause 22.
22.l(l).
1(1).

23.4
23.4 Defaults in Compliance
in Compliance

(I)
(1) If the Contractor
If the Contractor does
does not comply
comply with
with the
the provisions of Clauses
provisions of Clauses 23.1,
23.1, 23.2 and 23.3,
23.2 and Employer
23.3, the Employer
may (without
may (without prejudice to any
prejudice to any other
other rights
rights or
or remedies
remedies available)
available) pay
pay on
on behalf of the
behalf of the Contractor
Contractor
such premiums
such or contributions
premiums or contributions as they
they become and remain
become due and unpaid.
remain unpaid.

(2) The Employer

The Employer can deduct the
can deduct the amounts
amounts equivalent
equivalent to the
the sum
sum of
of all premiums or contributions
premiums or contributions paid
paid
on behalf
on of the
behalf of the Contractor
Contractor from
from any
any payment due or
payment due or to become due to
become due to the
the Contractor
Contractor under
under the
the
Contract
Contract

(3) The Employer

The Employer must
must produce to the
produce to the Contractor
Contractor before
before effecting
effecting the deductions in Clauses 23.4(2)
deductions in 23.4(2)
receipts for the
receipts for premiums or contributions
the prerhiuniS cOhtriDUtiOi:f:fas evidence-of
as evidence of their
their payment by the Employer.
payment by Einj:i1o)'er.

24 COMPLIANCE WITH
COMPLIANCE WITH LAWS
LAWS

24.1
24.1 Contractor to
Contractor to Comply
Comply with
with Laws
Laws

{l)
(1) The Contractor
The Contractor must
must comply
comply in all respects
in all with the
respects with the provisions of all
provisions of all written
written laws,
laws, regulations,
regulations,
orders and bylaws
orders bylaws (collectively,
(collectively, “Laws”)
"Laws") which
which are
are applicable
applicable to the Works.
Works.

(2) Without undermining

Without undermining the
the general
general provision in Clause
provision in Clause 24.1(1), the Contractor
24.1(1), the must give
Contractor must give notices
notices and
and
pay fees and charges
pay all fees charges required
required to be given
given or
or paid under any
paid under any of
of the Law relating
the Law relating to
to the Works.
Works.

(3)
(3) The charges
The charges to
to be paid under in
paid under in Clause
Clause 24.1(2) above include
24.1(2) above include the
the levies
levies to
to be paid
paid by
by the Contractor
Contractor
to the
to the Construction Industry Development
Construction Industry Development Board,
Board, Malaysia.
Malaysia.

(4)
(4) The Contractor
The Contractor must
must indemnity
indemnity the
the Employer
Employer and keep the Employer
Employer indemnified
indemnified against
against any
breach of
breach of the
the provisions of the Laws.
provisions of Laws.

(5) The Contractor’s

The Contractor's obligations
obligations in this Clause
Clause extend
extend to
to the compliance with all the
compliance with the regulations
regulations and
and
requirements of
requirements of the
the service
service providers
providers and
and to pay
pay all fees
fees and
and charges
Charges required
required for
for the
the installation
installation of
of
permanent connections to the
permanent connections the supply
supply systems
systems maintained
maintained by them.
by them.

(6)
(6) The Employer must
The Employer must reimburse
reimburse the
the Contractor
Contractor the
the fees and charges
charges paid
paid by the
the Contractor under
Contractor under
Clause Costs under
24.1 (5) as Costs
Clause 24.1 under Clause unless such
Clause 53 unless such costs
costs have
have already
already been included in the
been included the
Contract and provided
Sum and
Contract Sum provided for
for in
in the
the Bills
Bills of
of Quantities.
Quantities.

24.2
24.2 Employer to
Employer to Obtain
Obtain Planning
Planning Approval
Approval and
and Pay
Pay Capital
Capital Contributions
Contributions

(!)
(1) The Employer
The responsible to
Employer is responsible to obtain
obtain any
any planning
planning approval,
approval, zoning
zoning and
and other
other similar
similar permissions
permissions
which
which are required for the Works.
required for Works.

(2)
(2) The Employer
The Employer must
must pay capital contributions
pay all capital contributions and
and security
security deposits
deposits to any
any public
public authority
authority or
or
service provider
service provider for
for the
the installation
installation of
of permanent
permanent connections
connections toto the supply
supply systems
systems maintained
maintained by
them.
them.

(3)
(3) If Employer fails
If Employer fuils or delays
delays in
in paying the capital
paying the capital contributions
contributions or
or security
security deposits
deposits in in Clause 242
Clause 2412
(2) and
(2) and this
this failure
failure or
or delay
delay has
has delayed
delayed the
the Contractor completing the
Contractor in completing the Works
Works before the Date
before the Date for
for
Completion and the
Completion and the Contractor incurs Costs
Contractor incurs Costs as
as aa consequence,
consequence, then

(a)
(a) the Engineer
the Engineer must
must take
take the
the delay
delay into
into consideration
consideration in
in determining
determining any
aoy extended
extended Date
Date for
for
Completion
Completion to which the Contractor
which the may be entitled
Contractor may entitled under Clause 44;
under Clause 44; and
and

(b)
(b) the Engineer
the must certify
Engineer must certify the
the additional
additional Costs accordance with
Costs in accordance with the
the provisions
provisions of
of Clause
Clause
53.
53.

24.3
24.3 Changes in Law
Changes Law after
after Submission
Submission of
of Tender
Tender

(!))
(1 If there is any
If there any change
change m
in the
the Laws
Laws after
after the
the Contractor
Contractor has submitted
submitted his
his Tender and this
Tender and this change
change has

(a) necessitated the

necessitated the variation
variation of
of the
the Works;
Works;

(b)
(b) required the
required the provision of any temporary
provision of temporary works; or

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(c) the compliance

the of which has required
compliance of required (a) and
and (b) above;
above;

the Contractor
the Contractor must,
must, before he effect to such
he gives effect such aa change,
change, write
write to
to the Engineer
Engineer requiring
requiring him
him to
issue an
issue an instruction
instruction under
under Clause
Clause 51.
51.

(2)
(2) If the amount
If the amount of
of fees and
and charges
charges required
required to be paid
paid by the Contractor under
the Contractor under any
any Laws
Laws is
is increased
increased
after the
after the Contractor
Contractor has submitted
submitted his Tender,
Tender, the Contractor
Contractor can
can then
then recover increased amount
recover the increased amount
Costs under
as Costs under Clause
Clause 53.
53.

25
25 PATENT RIGHTS
PATENT RIGHTS AND
AND ROYALTIES
ROYALTIES

25.1
25.1 Patent Rights
Patent Rights and Other
Other Protected
Protected Rights
Rights

(I)
(1) The Contractor
The Contractor must defend
defend and
and indemnify
indemnify the Employer
Employer from and against
against all claims,
claims, costs,
damages, charges
damages, and proceedings
charges and proceedings for any infringement of any
any infringement of
any -patent
patent rights, trademarks or
rlglits, trademarks or any
any _)

protected
protected rights in respect of any
respect of any Constructional
Constructional Plant
Plant and
and Equipment,
Equipment, materials,
materials, goods
goods or
or designs
designs
(as prepared
(as submitted by
prepared and submitted by the Contractor)
Contractor) used connec~on with or
in connection
used for, in or for
for incorporation
incorporation into,
into,
the Works.
tile Works.

(2)
(2) The Contractor
The Contractor is not responsible
responsible if
if the
the infringement
infringement ofof any protected
protected rights
rights stated
stated in Clause
Clause
25(1)(1) is a consequence
25(f)(1) cousequence of
of the Contractor’s
Contractor's execution
execution ofof the Works inin accordance
accordance with the
the
Contract or
Contract or in complying
complying with an
an instruction
instruction of
of the
the Engineer.
Engineer. ·

25.2
252 Royalties
Royalties

(1)
(1) The Contractor must
The Contractor must pay
pay all tonnage, royalties,
all tonnage, royalties, rent and any
rent and any other
other payments
payments or compensation
compensation
whatsoever for obtaining
whatsoever obtaining aggregates,
aggregates, sand,
sand, gravel,
gravel, clay
clay or any other
or any other materials
materials required
required for the
the
Works.
Works.

(2)
(2) The obligation
obligation of
of the
the Contractor
Contractor to
to pay
pay in Clause 25.2(1) applies
Clause 25.2(1) applies even
even if
if the
the materials
materials are
are not
not to
to be
incorporated into
incorporated into the
the Works.

26
26 ANTIQUITIES AND
ANTIQUITIES AND FOSSILS
FOSSILS

26.1
26.1 Ownership of
Ownership of Discovery
Discovery

(I)
(1) All fossils,
fossils, coins,
coins, structures,
structures, relics
relics or
or articles
articles of
of value
value or
or antiquity
antiquity and any other
other remains
remains or things
things
of geological,
of historical or
geological, historical or archaeological
archaeological interests
interests discovered
discovered onon the
the Site
Site belong,
belong, as between
between the
Employer and
Employer and the
the Contractor,
Contractor, to the
the Employer.
Employer.

26.2
26.2 Protection of
Protection of Discovery
Discovery

(!)
(1) The Contractor
The Contractor must
must ensure that all
ensure that all reasonable
reasonable precautions taken so that his workmen
precautions are taken workmen and
and those
those
of his
of his sub-contractors’
sub-contractors' or
or any other
other persons do not
persons do remove from
not remove from the Site
Site or
or damage
damage anything
anything
referred to
referred to in Clause 26.1(1).
Clause 26.1(1). .7

(2)
(2) Upon the
Upon the discovery
discovery of
of anything
anything referred
referred to in Clause 26.1(1), the
Clause 26.1(1), the Contractor
Contractor must
must immediately
immediately
inform the
inform the Engineer. If the discovery
Engineer. If discovery is something
something which
which is of
of immediate danger, the
immediate danger, the Contractor
Contractor
must also lodge
must also lodge aa report
report with the
the police.
police.

(3)
(3) The Engineer
The Engineer must give an instruction
must give instruction as
as to the
the next course of
next course of action with respect
action with respect to
to any
any such
such J
discovery. If
discovery. complying with
If complying such an
with such an instruction
instruction is the
the cause
cause of
of the
the delay
delay beyond the Date
beyond the Date for
for
Completion and
Completion and the Contractor
Contractor incurs additional
additional Costs,
Costs, then
then

(a)
(a) the Engineer
the Engineer must take the
must take the delay
delay into
into consideration
consideration in determining
determining any
any extended
extended Date
Date for
Completion to which
Completion which the Contractor
Contractor may be entitled
may be entitled under
under Clause 44; and
44; and

(b) the Engineer

the Engineer must
must certify the additional
certify the additional Costs
Costs in accordance
accordance with the provisions
with the of Clause
provisions of Clause
53.
53. .

27
27 ENVIRONMENTAL MANAGEMENT
ENVIRONMENTAL MANAGEMENT AND
AND QUALITY
QUALITY ASSURANCE
ASSURANCE

27.1
27.1 Environmental Matters
Environmental Matters

(!)
(1) The Contractor
Contractor must
any subsequent
any
must fully comply
subsequent amendments
comply with
amendments to
with the
the provisions
provisions of
to or re-enactment
of Environmental
Enviromnental Quality
of this Act.
re-enactment of Act.
Quality Act
Act 1974
1974 including
including
[
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Civil Engineering
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Engineering Works

(2) If the Employer

If environmental impact
carried out an environmental
Employer has carried
IEM.CE20JJ
IEM.CE20H

audit and the report

assessment audit
impact assessment of such
report of
audit is made available
audit prior to the closing
Contractor prior
available to the Contractor of the Tender,
closing of Contractor must
Tender, the Contractor
restrictions, provisions
all restrictions,
abide by ail provisions and conditions in the report.
conditions in report.

(3) In factors relating

Contractor is bound by all factors
general, the Contractor
In general, relating to environmental aspects
to the environmental Works
of the Works
aspects of
if the
as if himself the Employer.
Contractor is himself
the Contractor Employer.

(4)
(4) Without limiting the
Without limiting of Clause 27.1(3),
the general provision of 27.1(3), if it is a requirement
ifit of the Contract
requirement of Contract that
the Contractor is to provide
provide an environmental protection plan,
environmental protection Contractor must then provide
plan, the Contractor provide such
aa plan
plan within days of
within 14 days Commencement.
Date for Commencement.
of the Date

(5) The Contractor must

The Contractor must take all reasonable
talce all reasonable steps to protect
steps to protect the environment off the Site. He
either on or off
environment either He
must also avoid
must also damage or
avoid any damage nuisance to the public
or nuisance public as consequence of
as aa consequence of his execution of
his execution of the
the
Works.
Works.

(6) The Contractor must also carry

The Contractor cany out without unreasonable
the Works without
out the noise, disturbance or pollutions.
unreasonable noise,

27.2
27.2 Quality Plan
Quality

(I)
(1) If it is aa requirement
!fit Contract that
of the Contract
requirement of Contractor must
that the Contractor submit a Quality
must submit this must be
Plan, this
Quality Plan,
submitted by
submitted by the Contractor Engineer within
Contractor to the Engineer of the Date
within 28 days of Commencement.
Date for Commencement.

(2) The
The Engineer may comment
Engineer may submitted by the Contractor
Plan submitted
comment on the Quality Plan Contractor
Contractor and the Contractor
may take into consideration
take into Engineer's comments
consideration the Engineer’s and to revise
comments and accordingly.
revise the plan accordingly.

(3)
(3) If Employer has
If the Employer has itself instituted certain
itself instituted Quality Plan
certain Quality of this is
Plan and aa copy of or relevant
is ((or relevant details of
details of
available to the Contractor
which are) made available before the close
Contractor before of Tender,
close of Contractor must then as
Tender, the Contractor
far as possible
possible adhere Quality Plan
Employer's Quality
adhere to the Employer’s Plan (or the disclosed
(or the details of
disclosed details of the Plan) such an
to such
Plan) to
extent Employer will not
that the Employer
extent that of bis
not be in breach of Plan.
his own Plan.

(4) The
The submission of any
Contractor of
submission by the Contractor subsequent comments
Quality Plan, and any subsequent
any such Quality on itit
comments on
given
given by Engineer, cannot
by the Engineer, relieve the Contractor
taken to relieve
cannot be taken of his
of any of
Contractor of under the
obligations under
his obligations
Contract
Contract

(5) Contractor must

The Contractor implement the quality procedures
must implement submitted Quality Plan
procedures in any submitted close all
Plan and close
non-conforming reports.
non-conforming reports.

(6) The Contractor must

The Contractor must appoint suitably qualified
appoint a suitably experienced person
and experienced
qualified and person to act as Quality
act as Officer
Quality Officer
Site whose main duty is
on Site is to ensure compliance and
ensure the compliance implementation of
smooth implementation
and smooth of the Quality
Contractor.
submitted by the Contractor.
Plan submitted

28 LABOUR
LABOUR

28.1
28.1 of Workmen
Employment of Labour
Workmen and Labour

(I)
(1) The unless it is provided
must, unless
Contractor must,
The Contractor otherwise in the
provided otherwise Contract, make
the Contract, for
arrangement for
make his own arrangement
employment of
the employment of all labour for their
labour and for accommodation, welfare,
salaries or wages, accommodation,
their salaries food and
welfare, food
transport.
transport.

(2)
(2) In there are
In there foreigners being
are foreigners being employed, Contractor must
employed, the Contractor own costs
must at their own obtain
expenses obtain
costs and expenses
permits and in general
working pennits
valid working
valid ensure that
general ensure relevant laws and regulations
that all relevant regulations are complied
are complied
with.
with.

28.2
28.2 Returns of Labour
Returns of

(I)
(1) If required by the
If required the Engineer, deliver to the Engineer
Contractor must deliver
Engineer, the Contractor showing
detailed return showing
Engineer aa detailed
the number the various
of the
number of classes of
various classes Jabour from
of labour time to time
from time employed by
time employed the
Contractor on the
by the Contractor
Site.
Site.

(2)
(2) The return
The return required 27.2(1) must be in
Clause 27.2(1)
required in Clause in aa form and must be submitted
and must as
intervals as
submitted in the intervals
the Engineer prescribe (if
may prescribe
Engineer may the period
(if the for their
period for their submission already prescribed
is not already
submission is prescribed in the
Contract).
Contract).

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29
29 INTERFERENCE WITH
INTERFERENCE WITH TRAFFIC
TRAFFIC

29.1
29.1 Interference with
Interference with Traffic
Traffic _,
(I)
(1) The Contractor
The Contractor must ensure that his construction
must ensure construction operations
operations must
must not
not unnecessarily
unnecessarily or improperly
improperly
interfere with
interfere

(a)
(a) the convenience
the convenience of
of the
the public; or
public; or

(b)
(b) and occupation
the access to, use and occupation of
of any roads
roads irrespective
irrespective whether
whether the roads
roads are
are in the
the
possession of the
possession of the Employer
Employer or
or any other
other person not connected
person not the Works.
with the
connected with Works.

(2) The Contractor

The Contractor must
must indemnify
indemnify thethe Employer
Employer in respect
respect of
of all
all claims,
claims, proceedings, damages, costs,
proceedings, damages, costs,
charges, and
charges, and expenses
expenses arising
arising out
o_ut of
of_~e_Contracto(s ob!ig~tio?s referred
the Contractor’s obligations refe~ed_to Claus~ 29.1(1).
to in Clause ?9.1(1).

30
30 TRANSPORT
TRANSPORT

30.1
30.1 Transport of
Transport of Contractor’s
Contractor's Plant
Plant and Equipment
and Equipment

(I)
(1) The Contractor
The Contractor is solely responsible
responsible for the delivery
delivery and
and transport
transport to
to Site
Site of
of all
all Constructional
Constructional Plant
Plant
and Equipment,
and Equipment, machinery and pre-constructed
machinery and pre-constructed or
or pre-fabricated
pre-fabricated parts of the
parts of the Works.
Works.

(2)
(2) The responsibility
The responsibility in Clause
Clause 30.1(1)
30.l(l) extends
extends to paying fees, charges,
paying any fees, tolls and
charges, tolls and all
all costs
costs incurred
protecting and
in protecting and strengthening
strengthening any roads
roads or
or bridges
bridges (if
(if required).
required).

30.2
30.2 Avoidance of
Avoidance of Damage
Damage to Roads
Roads

(1)
(1) If the
If the Contractor
Contractor requires using any roads
requires using roads or bridges outside the
bridges outside the Site
Site for its
its construction
construction traffic, the
the
Contractor must
Contractor ensure that
must ensure applicable permits
that all applicable permits are
are first
first obtained.
obtained.

(2)
(2) using the
In using the roads
roads or bridges for its construction
bridges for construction traffic,
traffic, the
the Contractor
Contractor must
must ensure
ensure that
that

(a)
(a) the roads
the roads and
and bridges are not
bridges are not damaged
damaged in any way; and
and 7

(b) the convenience

the convenience of
of the public
public is not unnecessarily
unnecessarily or improperly
improperly interfered
interfered with.

(3)
(3) The Contractor
The Contractor must
must indemnify Employer in respect
indemnify the Employer respect of
of all
all claims,
claims, demands,
demands, proceedings,
proceedings,
damages, costs,
damages, costs, charges
charges and
and expenses
expenses irrespective
irrespective of
of how
how they arise in using the
they arise the roads
roads and
and bridges.
bridges.

(4)
(4) For the
For the purpose of Clause
purpose of Clause 30.2,
30.2, “roads”
"roads" includes
includes highways
highways (whether
(whether privatised otherwise) and
privatised or otherwise) and
rivers.
rivers.

31 USE OF EXPLOSIVES
USE EXPLOSIVES

31.1
31.1 Use of
Use Explosives
of Explosives

(1)
(1) The Contractor
The Contractor must
transport, security
transport,
must purchase
security and
purchase his
and storage of all
storage of
own explosives
his own explosives and
explosives which
all explosives
and be responsible
which he
he requires
responsible for
requires for
for the
for the
the use,
the execution
execution of
use, handling,
of the
handling,
the Works.
C
1
(2)
(2) No explosives
explosives of
of any kind
kind can
can be used by the Contractor
Contractor unless
unless itit is legally
legally procured.
procured. The
The
Contractor must
Contractor must follow the the requirements
requirements and
and regulations
regulations laid
laid down
down by the relevant
relevant authorities
authorities
including but
including not limiting
but not to Polis
limiting to Polis Diraja
Diraja Malaysia
Malaysia and
and the
the Engineer
Engineer in using
using any explosives.
explosives.

(3)
(3) The Contractor
The Contractor must
must have
have an experienced
experienced and
and licensed
licensed shotfirer
shotfirer on
on site
site to supervise or
to supervise or physically
physically
carry out
carry out the works each
the works each time
time explosives
explosives are
are to be used in
be used in connection
connection with the Works.
with the Works.

32
32 FACILITIES FOR
FACILITIES FOR OTHER
OTHER CONTRACTORS
CONTRACTORS

32.1
32.1 Opportunities for
Opportunities for Other
Other Contractors
Contractors

(!)
(1) The Contractor
The Contractor must
must accord
accord all reasonable
reasonable opportunities
opportunities to other
other contractors
contractors or
or the
the Employer’s
Employer's
workmen who carry
workmen carry out
out works on
on the
the Site
Site which
which do not
not form
form part of
of the
the Works.

(2)
(2) The Contractor’s
The Contractor's obligation in Clause
obligation in Clause 32.1(1)
32.1(1) extends
extends toto any
a!ly authorities
authorities or
or service
service providers who
providers who
may be employed
may employed to cany out works
cany out works on
on or near
near the
the Site.
Site.
[
Institution of
© The Institution
Malaysia
Malaysia
of Engineers,
Engineers, Page28
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 I
l : ,\
,.

/EM Form of
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Contract IEM.CE2011
IEM.CE2011
For Civil
For Civil Engineering
Engineering Works

(3)
(3) The Contractor
The Contractor must work
work in hannony, liaise and
harmony, liaise and coordinate
coordinate with these
these other
other contractors
contractors or
or
workmen and plan
workmen plan the
the execution
execution of
of the
the Works
Works such
such that
that the
the progress of the Works will
progress of will not
not be
be
affected by
affected by affording
affording such
such opportunity.
opportunity.

32.2
32 J Facilities for
Facilities for Other
Other Contractors
Contractors

(I)
(1) The Contractor
The Contractor must
must give
give all reasonable
reasonable facilities
facilities to
to other
other contractors
contractors or
or the
the Employer’s
Employer's workmen
worlanen
who carry out
who cany works which are
out works not part
are not of the Works.
part of Works.

(2)
(2) The Engineer
The Engineer may, in his absolute
absolute discretion,
discretion. instruct that the
instruct that the Contractor
Contractor must
must make available
available any
facilities belonging
facilities belonging to
to the Contractor
Contractor to other
other contractors
contractors oror the
the Employer’s
Employer's workmen
worlanen (including
(including
service providers)
service who execute
providers) who execute works
works not
not forming
fanning parts of the
parts of the Works.

(3)
(3) If the
If the Contractor
Contractor incurs
incurs additional
additional Costs
Costs in complying
complying with
with Clauses
Clauses 32.2(1)
32.2(1) and
and (2), then
then the
Erigineer muSt
Engineer certify the
must certify the additional
additional Costs
Costs in accordance
ilcCOidance with the J)rOvisiOns
with the Of Clause
provisions of Clause 53.

33
33 MATERIALS AND EQUIPMENT
MATERIALS EQUIPMENT SUPPLIED
SUPPLIED BY
BY EMPLOYER
EMPLOYER

33.1
33.1 Supply a Requirement
Supply Requirement of
of the
the Contract
Contract

(I)
(1) The following
The following sub-clauses
sub-clauses to Clause
Clause 33.1 are
are applicable
applicable where
where it is an express
express requirement
requirement of
of the
the
Contract that
Contract that certain
certain plant, equipment or materials
plant, equipment materials (collectively
( collectively and severally, “Employer’s
and severally, "Employer's
Supplied Materials”)
Supplied Materials") required the execution
required for the execution of
of the
the Works
Works or or for
for incorporation
incorporation into
into the
the Works
are to be supplied
are supplied by the Employer.
by the Employer.

(2)
(2) The express requirement
The express requirement must
must indicate
indicate the
the quantities
quantities and
and types
types ofof the
the Employer’s
Employer's Supplied
Supplied
Materials to
Materials to be supplied and delivered,
be supplied delivered, the
the procedure for their
procedure for delivery and
their delivery and receipt,
receipt, the
the rates
rates or
or
prices of such
prices of such Employer’s
Employer's Supplied
Supplied Materials.
Materials.

(3)
(3) The
The payment tenns for
payment terms for the
the Employer’s
Employer's Supplied
Supplied Materials
Materials must
must correspond that of
correspond to that of the Period
Period of
of
Honouring Certificates
Honouring Certificates in Clause
Clause 58.3.

(4)
(4) The
The Contractor
Contractor must
must prepare
prepare a schedule
schedule of
of the
the delivery
delivery of
of the Employer’s
Employer's Supplied
Supplied Materials
Materials and
and
Employer must
the Employer must comply
comply where
where applicable
applicable with the
the requirements of this
requirements of this schedule.
schedule.

(5)
(5) Despite the
Despite the provision of Clause
provision of Clause 33.1(4),
33.1(4), the
the Contractor
Contractor must
must liaise
liaise directly
directly with
with the
the designated
designated and
authorised
authorised representative
representative of
of the
the Employer
Employer on on all the
the logistical
logistical aspects
aspects of
of the
the Employer’s
Employer's Supplied
Supplied
Materials including
Materials including their
their required
required quantities,
quantities, time and
and place
place of
of delivery.
delivery.

(6) The Contractor’s

The Contractor's request
request for the
the delivery
delivery of
of the Employer’s
Employer's Supplied
Supplied Materials
Materials must
must be
be made in
in
writing with
writing with aa copy of
of such
such request
request copied
copied to
to the
the Engineer.
Engineer.

(7) The Contractor

The Contractor is not
not responsible
responsible if
if the
the Employer’s
Employer's Supplied
Supplied Materials
Materials do not
not comply
comply with the
requirements of
requirements of the
the Contract
Contract or
or are
are damaged
damaged prior
prior to
to their
their acceptance the Contractor.
acceptance by the Contractor.

(8)
(8) immediately upon
Immediately upon receipt of Employer’s
receipt of Employer's Supplied
Supplied Materials
Materials which
which do
do not comply
comply with
with the
requirements of
requirements of the Contract,
Contract, the
the Contractor
Contractor must
must inform
infonn the
the Employer in writing.
Employer in writing. The
The Engineer
Engineer
must similarly
must similarly be informed.
informed.

(9)
(9) If the
If the Employer
Employer delays
delays in delivering
delivering the
the Employer’s
Employer's Supplied
Supplied Materials
Materials to the Contractor
Contractor and
and this
this
has resulted
has resulted delay
delay to
to the
the completion
completion ofof the
the Works,
Works, then

(a)
(a) the Engineer
the Engineer must
must take the delay
delay into consideration
consideration in
in determining
determining any
any extended
extended Date
Date for
Completion to which
Completion which the
the Contractor
Contractor may
may be entitled under
be entitled under Clause
Clause 44; and
and

(b)
(b) the Engineer
the Engineer must
must certify
certify the
the additional
additional Costs
Costs in accordance
accordance with the provisions
with the of Clause
provisions of Clause
53.
53.

(IO)
(10) The Employer
The Employer must
must remove
remove from
from the Site
Site at his
his own
own costs
costs if
if any
any Employer’s
Employer's Supplied
Supplied Materials
Materials
delivered to
delivered to the
the Site
Site are
are not in compliance
not in compliance with the the requirements of the
requirements of the Contract
Contract or
or which
which are
damaged before
damaged their acceptance
before their acceptance byby the
the Contractor.
Contractor.

(II)
(11) Contractor must
The Contractor
The must accord
accord all reasonable
reasonable opportunities
opportunities including
including access
access within
within the Site
Site for
for the
delivery of
delivery of the
the Employer’s
Employer's Supplied
Supplied Materials
Materials to their
their designated
designated locations.
locations.

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IEM.CE2011
For Civil
Civil Engineering Works
Engineering Works

(12)
(12) deliveries of
All deliveries of the Employer’s
Employer's Supplied
Supplied Materials
Materials must
must be accompanied
accompanied by delivery
delivery orders
orders and
and
the delivery
the delivery orders
orders must
must be acknowledged and
be acknowledged sign~d by the
and signed the Contractor’s
Contractor's authorised
authorised representative
representative
his receipt
upon his of the
receipt of the deliveries.
deliveries.

(13)
(13) The Employer
The Employer must
must agree
agree with
with the
the Contractor
Contractor and
and submit
submit his claim
claim for all payments
payments for the supply
for the supply
and delivery of
and delivery Employer's Supplied
of the Employer’s Supplied Materials
Materials to
to the
the Engineer
Engineer with aa copy to the
copy to the Contractor
Contractor in
the same
the same manner
manner the
the Contactor
Contactor prepares
prepares and
and submits
submits his Interim
Interim Payment
Payment Application
Application in
accordance with Clause
accordance Clause 58.
58.

(14)
(14) The Employer’s
The Employer's Supplied
Supplied Materials
Materials remain
remain at all
all times
times the
the property of the
property of the Employer
Employer and
and these must
these must
not
not be removed from the
removed from the Site
Site without written permission
the written
without the permission of
of the Employer.
Employer.

(15)
(15) Except for
Except for the
the provisions
provisions in this this Clause
Clause 33.1
33.1 with
with respect
respect to Employer’s
Employer's Supplied
Supplied Materials,
Materials, the
the
Contractor 1:10~ relieved
Contractor is not ~e_li~_~e_d from any _?~~-s
fro~_~)' of his duties
duties and r~~:ponsi~i!_i~_es_ un?~r
~d responsibilities under the
the Contract.
Contract.
_.J
33.2
33.2 Separate Supply Agreement
Separate between the Employer
Agreement between Employer and
and the Contractor
Contractor

(!)
(1) The following
The following sub-clauses
sub-clauses to
to Clause
Clause 33.2
33.2 are
are applicable
applicable where
where the
the Contractor
Contractor has
has a separate
separate
agreement with the
agreement the Employer
Employer for the
the delivery
delivery of
of any plant, equipment
any plant, equipment or materials
materials ((collectively
collectively and
and
severally, “Contractor’s
severally, "Contractor's Requested
Requested Materials”)
Materials") which
which the
the Contractor
Contractor requires
requires for execution of
for the execution of
the Works or for
the for incorporation
incorporation into
into the
the Works.
Works.

(2) aspects of
All aspects of the
the delivery
delivery and
and supply
supply of
of the
the Contractor’s
Contractor's Requested
Requested Materials
Materials by the
the Employer
Employer are
are
treated in the same
treated same manner
manner as if the Contractor
if the Contractor is
is making his own
making his own arrangement
arrangement to
to secure
secure the
the supply
supply
and delivery
and delivery of
of these
these Contractor’s
Contractor's Requested
Requested Materials.
Materials.

(3)
(3) The Employer may
The Employer may deduct
deduct from anyany payment
payment due or to become
become due
due to
to the
the Contractor
Contractor under
under the
Contract for
Contract for the
the supply
supply and
and delivery
delivery of
of these
these Contractor’s
Contractor's Requested
Requested Materials
Materials only
only on
on such
such terms
tenns
and rates as
and as may
may have
have been
been agreed between the
agreed between the Employer
Employer and
and the
the Contractor.
Contractor.

(4)
(4) The Employer
The Employer must
must produce copies all
produce copies all delivery
delivery orders
orders of
of the
the Contractor’s
Contractor's Requested
Requested Materials
which are duly
which are duly signed
signed receipt by the
receipt by the Contractor’s
Contractor's authorised
authorised and
and designated
designated representative
representative as
evidence of
evidence of the
the supply
supply and
and delivery
delivery of
of the
the Contractor’s
Contractor's Requested
Requested Materials
Materials before
before the
the Employer
Employer
■' can
can effect any
any deduction
deduction of
of any
any payment due or
payment due or to become due to the
become due the Contractor.
Contractor.

34
34 OWNERSHIP OF
OWNERSHIP OF EXCAVATED
EXCAVATED MATERIALS
MATERIALS

34.1
34.1 Ownership of
Ownership of Excavated
Excavated Materials
Materials
1

(!)
(1) All materials
All materials or
or things
things of
of any
any kind
kind obtained
obtained from
from excavations
excavations or
or found
found on
on or
or beneath the Site
beneath the Site
belong, between the Employer
belong, between Employer and the Contractor,
and the Contractor, to the
the Employer.
Employer.

(2)
(2) Contractor may
The Contractor may use
use the
the materials
materials excavated if they
excavated if they are
are suitable
suitable and
and comply the
comply with the
requirements of the
requirements of the Contract.
Contract.

34.2
34.2 Disposal of
Disposal of Excavated
Excavated Materials
Materials

(I)
(1) The Contractor must
The Contractor must obtain
obtain the
the written approval of
written approval of the
the Engineer
Engineer ifif he
he wants to
to dispose any the
dispose any the
excavated materials
excavated materials from
from the
the Site.
Site. i

(2) The approval

The approval of
of the
the Engineer
Engineer given
given under
under Clause
Clause 34.2(1)
34.2(1) does
does not
not relieve
relieve the
the Contractor
Contractor from any
of his responsibilities
of responsibilities under the Contract.
under the Contract.
7
35
35 CLEARANCE OF
CLEARANCE OF SITE
SITE

35.1
35.1 Clearance of
Clearance of Site
Site on
on Completion
Completion

(!)
(1) On the completion
On completion of of the
the Works,
Works, the
the Contractor
Contractor must clear and
must clear and remove from the
remove from the Site
Site all surplus
surplus
materials, rubbish and
materials, Temporary Works
and Temporary Works of
of any
any kind.
kind. The Contractor
Contractor must
must generally leave the
generally leave the
whole of
whole of the
the Site
Site and the
the Permanent
Pennanent Works clean
clean to
to the satisfaction
satisfaction of
of the
the Engineer.
Engineer.
-"':

35.2
35.2 Clearance of
Clearance of Site
Site on Expiry
Expiry of
of Defects
Defects Liability
Liability Period
Period

(!)
(1) The Contractor
The Contractor may retain
retain certain
certain equipment,
equipment, materials
materials arid Temporary
Temporary Works
Works which are required
which are required
by the Contractor
by the fulfilling his obligations
Contractor in fulfilling obligations during
during the
the Defects
Defects Liability
Liability Period.
Period.

The Institution
© The Institution of
Malaysia
Malaysia
of Engineers,
Engineers, Page30
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.

[
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__J -~

r:j :- .
IEM
For
Form of
IEM Form of Contract

(2)
Contract
avil Engineering
For Civil Works
Engineering Works

(2) Further to
Further to Clause
Clause 35.2(1
35.2(1), Engineer may
), the Engineer may instruct
instruct and designate
designate locations
locations within
IEM.CE2011
IEM. CE 2011

within the Site

Site for
for the
the

n. -•
•i

36
36
storage of
storage
impair

MATERIALS AND
MATERIALS
of the
the Contractor’s

WORKMANSHIP
AND WORKMANSHIP
Contractor's equipment,
impair or obstruct
obstruct the
equipment, materials
the functional
:functional use
use of
materials and Temporary
of the Permanent
Temporary Works.
Pennanent Works.
Works .
Works. This storage must not
This storage

36.1
36.1 of Materials
Quality of Materials and Workmanship
Workmanship

(I)
(1) the materials
All the materials for
for incorporation
incorporation into the Permanent
Permanent Works
Works and workmanship
workmanship must be
must be

(a)
(a) of the
of the kind
kind described
described or specified
specified in the
the Contract;
Contract;
(b) in accordance with the Engineer’s
accordance with Engineer's instructions;
instructions; and
and
(c)
(c) subjected to such
subjected such tests
tests as the Engineer may require.
the Engineer require.

(2) The tests referred

The tests referred to
to in Clause
Clause 36.1(c)
36.l(c) may be carried out
be carried out at
at the place of manufacture,
place of manufacture, fabrication
fabrication or
preparation or on
preparation or on the Site.
Site.

(3)
(3) The Contractor
The Contractor must
must provide assistance in
provide all assistance the form of
in the of provision
provision of the instruments,
of the instruments, machines,
machines,
labour and materials
labour which are normally
materials which nonnally required for examining,
required for examining, measuring
measuring and
and testing
testing of
of the
the
materials.
materials.

36.2
36 2 Supply of
Supply of Samples
Samples

(I)
(1) The Contractor
The Contractor must
must supply
supply samples
samples of
of any materials
materials for
for testing
testing by the
the Engineer
Engineer before their
before their
incorporation into
incorporation into the
the Works.
Works.

(2) Unless the

Unless the Engineer
Engineer decides
decides otherwise,
otherwise, the samples
samples must taken in
must be taken the presence
in the under the
presence or under the
supervision of
supervision of the
the Engineer.
Engineer.

(3)
(3) The Engineer
The Engineer may
may decide
decide on
on the
the selection
selection of
of the
the samples
samples and frequency
frequency for their
their testing if such
testing if such
· frequency
frequency is not
not already
already provided in the
provided for in the Specifications.
Specifications.

(4) Except for

Except for the
the provision of Clause
provision of Clause 16,
16, all samples
samples must supplied by
must be supplied by the
the Contractor
Contractor at
at his
his owo
own
cost
cost

36.3
363 Tests

(1) The Contractor

The Contractor must
must at his own cost
his own cost carry
carry out
out all tests
tests which
which are
are provided for in the
the Specification
Specification or
which are intended
which intended by
by the Contract.
Contract.

(2) Before carry

Before cany out the tests in Clause
the tests Clause 36.3(1),
36.3(1), the
the Contractor
Contractor must give reasonable
must give reasonable notice to the
notice to
Engineer to
Engineer to enable
enable him toto attend.
attend.
,.,~ ..J·
' '
(3) The tests
The tests must
must be carried out
be carried out under supervision or
under the supervision or in the
the presence of the Engineer.
presence of Engineer.
" ··.
(4)
(4) The Contractor
The Contractor must
must keep
keep aa complete
complete record
record of
of all tests
tests carried out
out and
and their
their results.
results. The
The test
test
records
records must
must be duly signed
be duly signed by
by the
the personnel who cany
personnel who out the tests
carry out tests and
and these
these must
must also
also be signed
signed
by the
the Engineer’s
Engineer's representative who witnesses
representative who witnesses the
the tests.
tests.

(5) The format

The format of
of the
the records of test
records of test results
results must
must be approved
approved by the
the Engineer.
Engineer.
,.-
~"
i:;
,..
(6)

(7)
The signing
The
imply the
imply

The Engineer
The
of the
signing of the test
the Engineer’s

Engineer may
clearly intended
intended by
test results
results in Clause
Engineer's acceptance
acceptance of

instruct tests
may instruct tests to
the Contract
Contract In
Clause 36.3(4)
36.3(4) by any
of the materials
materials or

to be carried out
In this
representative of
any representative
or workmanship.
workmanship.

even ifif the

out even
this case, the Contractor
of the

the tests are

the Engineer

are not
Contractor is entitled
Engineer does not

not provided
entitled to
not

provided for or
to treat the tests
or are not
not
tests as variation
variation
clearly hy the treat the
to the
to the Contract
Contract under
under Clause
Clause 551.
1.

(8) If however
If however thethe tests
tests ·in Clause 36.3(7)
in Clause 36.3(7) reveal
reveal that
that the
the materials
materials or workmanship
workmanship fail to to comply
comply with
with
i i the provisions
the provisions ofof the
the Contract,
Contract, then
then the
the Contractor
Contractor must
must bear the cost
cost for
for the
the carrying
carrying out
out of
of the
the
tests. The
tests. The Contractor
Contractor must also bear
must also costs of
bear the costs of any additional
additional tests required as aa consequence
required as consequence of
of
this failure.
this failure.

(9) The provisions

The provisions of
of Clause
Clause 36.3
36.3 do not apply to tests
apply to to determine
tests to determine the
the load
load bearing
bearing capacity of piles;
capacity of piles;
these tests
these tests must
must be
be itemised
itemised in the Bills
Bills of
of Quantities.
Quantities.

© The Institution of
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Engineers, Page31
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Malaysia
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IEMForm
TEM Form of Contract
of Contract IEM.CE201J
IEMCE201I
For
For Civil
Civil Engineering Works
Engineering Works

37
37 EXAMINATION OF WORKS
EXAMINATION WORKS BEFORE
BEFORE COVERING
COVERING UP
UP

37.1
37.1 Examination of
Examination of Works

(!)
(1) The Contractor
The Contractor must
must not
not cover
cover up any Works
Works or
or part of
of the
the Works
Works without
without first
first giving the
the Engineer
Engineer
aa reasonable
reasonable opportunity
opportunity to inspect
inspect them. The
The Contractor
Contractor must also give reasonable
must also reasonable notice
notice to the
the
Engineer when any
Engineer any works are ready for
works are for examination
exarninatioh and
and inspection
inspection before
before they
they are
are to
to be covered
be covered
up.

(2) For the

For the purpose
purpose of
of this
this clause,
clause, the notice
notice is reasonable
reasonable when
when

(a)
(a) itit has specified
specified the
the works which
which are
are to
to be inspected
inspected and
and which covered up; and
which are to be covered and

(b) itit has given

given the Engineer
Engineer sufficient
sufficient time
time to
to inspect
inspect the
the works.
works.

(3) The Engineer

The Engineer must
must inspect
inspect the
the work
work specified
specified in
in the
the notice
notice without
without unreasonable
unreasonable delay
delay unless
unless he
he
informs the Contractor
informs Contractor in writing
writing that the inspection of the works specified
inspection of specified will not be necessary.
necessary.

(4)
(4) The Engineer
The Engineer may
may instruct
instruct for
for any
any works so so covered
covered up in breach of Clause
breach of Clause 37(1)
37(1) to be opened
opened up
for his inspection.
for inspection. Any
Any cost
cost so incurred
incurred as
as aa consequence
consequence of
of the Engineer
Engineer so instructs is to
to be fully
borne the Contractor
borne by the Contractor irrespective
irrespective if
if the
the Engineer
Engineer subsequently accepts or rejects the
subsequently accepts the works
works
inspected.
inspected.

37.2
372 Uncovering of
Uncovering of Works
Works

(!)
(1) Despite the provisions
Despite provisions ofof Clause
Clause 37.1, the Engineer
37.1, the Engineer may
may from time
time to
to time before the
the expiry
expiry of
of
Defects Liability
Defects Liability Period
Period instruct
instruct the
the Contractor
Contractor toto uncover
uncover any part or
or parts of
of the Works which
which
have been covered
have been covered up oror to make opening
opening in
in or through
through them.

(2)
(2) such instruction
Any such
Any instruction given
given to the
the Contractor
Contractor in Clause
Clause 37(1) deemed to
37(1) is deemed to be inclusive
inclusive of
of the
the
reinstatement works after
reinstatement works after the
the uncovering or opening
uncovering or opening up of
of the
the works.
works.

(3)
(3) If any part
If part or part ofof the
the Works
Works are
are found
found to
to be not
not in
in accordance
accordance with the
the Contract
Contract upon being
being
discovered subsequent
discovered subsequent to thethe instruction
instruction given
given under Clause 37.2(1),
under Clause the Contractor
37.2(1), the Contractor must
must then
then fully
bear the cost
bear the cost of
of the
the opening
opening up or making
making opening,
opening, reinstatement
reinstatement works
works as well as the
the removal
removal and
and
re-construction
re-construction ofof the
the works
works concerned.
concerned.

(4) If however
If however the works
works areare found
found to
to be with the requirements
compliance with
be in compliance of the Contract,
requirements of Contract, the
the
Engineer must
Engineer certify the
must certify the additional
additional Costs
Costs in accordance
accordance with
with the provisions
provisions of
of Clause 53.

38
38 REMOVAL OF
REMOVAL OF REJECTED
REJECTED WORKS
WORKS

38.1
38.1 Removal of
Removal of Rejected
Rejected Works
Works or Materials
Materials

(I)
(1) The Engineer
The Engineer has
has the
the authority
authority before the Date
Date for
for Completion
Completion to
to instruct
instruct the removal
removal from
from the
the Site
Site
of any
of any Works or materials
Works or if they are
materials if are not
not in accordance
accordance with
with the
~e requirements
requirements ofof the
the Contract
Contract

(2)
(2) The Engineer’s
The Engineer's instruction
instruction given
given under Clause 38.1(1)
under Clause 38.1(1) may
may include proper substitution
include the proper substitution or
or
replacement of the works.
replacement of works.

(3)
(3) The authority
The authority of
of the
the Engineer
Engineer in Clause
Clause 38(1)
38(1) extends
extends to those
those works constructed in accordance
works constructed accordance
with the
with the designs
designs which
which the
the Contractor
Contractor is responsible.
responsible.

(4)
(4) exercising his authority
In exercising authority under Clause
Clause 38.1(1),
38.1(1), the
the Engineer
Engineer must same time
must at the same time notify
notify the
the
Contractor the
Contractor the reasons and the
reasons and the requirements
requirements of
of file
the Contract
Contract which have
have been breached.
breached.

(5) The failure

The failure of
of the Engineer
Engineer to
to disapprove
disapprove any
any works
works must
must not be
be construed
construed as
as the
the Engineer
Engineer waiving
waiving
his authority
his authority to subsequently
subsequently exercise
exercise the
the power in Clause
power in Clause 38.
38.1(1).
1(1). ··•··•.t.n
~~-·L
38.2
382 Defaults in Removal
Defaults Removal

(!)
(1) If the
If the Contractor
Contractor fails to
to comply
comply with
with the
the instruction
instruction which the Engineer
Engineer has properly
properly given in
given in
accordance with Clause
accordance Clause 38.1,
38.1, and after
after the
the Engineer
Engineer has given
gi":en due notice the Contractor,
notice to the Contractor,

(a) the Employer

the Employer or the
the instruction
the
the Engineer
instruction given
Engineer on
given by the
on his behalf
the Engineer;
Engineer;
entitled to
behalf is entitled to engage
engage aa third party to
to carry
carry out
out
[
Institution of
© The Institution
©
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Malaysia
of Engineers,
Engineers, Page32
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1EM.CE 2011

IJ For Civil
For Civil Engineering

(b)
Works
Engineering Works

the Engineer
the Engineer must determine
determine the
the costs
costs consequent
consequent or incidental to
or incidental to the
the carrying
carrying out
out of
of the
the
instruction, such
instruction, such determination
determination must be
be notified
notified to both the Employer
both the Employer and the
the Contractor;
Contractor;

0 (c) the Employer

the Employer may thereafter
the Contractor
the Contractor the
deduct or set-off
thereafter deduct
the amount
amount so determined
set-off from
de'tennined by the
from any monies
the Engineer.
Engineer.
monies due
due or
or to
to become
become due to
to

·n!
',--::)
38.3
383 Contractor's Proposal
Contractor’s Proposal

(!)
(1) The Contractor may
The Contractor may submit proposal or alternative
submit proposal alternative relating to the
relating to the subject
subject matter
matter of of the
the Engineer’s
Engineer's
instruction issued
instruction jssued under
under Clause
Clause 38.1. TheThe proposal
proposal or alternative
alternative submitted
submitted must
must be accompanied
be accompanied
by such technical,
by such technical, financial
:financial or other
other information and considerations
information and considerations such
such that
that itit is possible
possible for the
the
Engineer to
Engineer to study and
and evaluate
evaluate the
the proposal alternative.
proposal or alternative.

(2) The Engineer

The Engineer may
may at
at his discretion accept or
discretion accept or reject such proposal
reject such proposal or
or alternative.
alternative.

(3) accepting any

In accepting any such
such proposal the Contractor
proposal from the Contractor under Clause 38.3(1),
under Clause 38.3(1), the
the Engineer
Engineer may impose
may impose
such conditions
such conditions as he
he may consider reasonable
may consider and fair.
reasonable and fair.

39
39 CONSTRUCTIONAL PLANT
CONSTRUCTIONAL PLANT AND
AND EQUIPMENT,
EQUIPMENT, TEMPORARY
TEMPORARY WORKS
WORKS AND
AND MATERIALS
MATERIALS

39.1 Constructional Plant

Constructional Plant and
and Equipment Temporary Works
Equipment and Temporary W.o.i:ks Exclusively
Exclusively for
for the
the Works
Works

0 (!)
(1) The Contractor
The Contractor must
Works which
Works which he
must only
only bring
he requires
bring to
to the Site
Site the
exclusively for the
requires exclusively
the Constructional
Constructional Plant
the execution
execution of
Plant and Equipment
of the Works.
Works.
Equipment and
and Temporary
Temporary

0 (2)
(2) The Contractor
The Contractor must
Temporary Works
Temporary
do so after.he
do
must not
Works out
not remove
out of
after.he has obtained
remove or demobilise
of the
the Site
demobilise any
Site after he
obtained aa prior
any Constructional
he has brought
prior written
Constructional Plant
brought them onto
written approval
approval from
onto the
Plant and
the Site.
from the Engineer.
Engineer.
Site. The
and Equipment
Equipment and
Contractor can
The Contractor
and
can only
only

0 (3) The Engineer

The Engineer must
approval under
approval
the same
the same time
must not

time in giving
unreasonably withhold
not unreasonably
under Clause
Clause 39.1(2).
39.1(2). If
giving the
If the
the disapproval
withhold any approval
the Engineer
disapproval state
approval when
Engineer refuses
when the Contractor
refuses to give
state his reason
give the
reason or reasons
Contractor requests
the requested
requests· for the
requested approval,
for so doing.
reasons for doing.
approval, he
he must
the
must atat

'
D
'
39.2
392 Unfrxed Materials
Unfixed

(I)
(1)
Materials and Goods

The
unless
Goods

The Contractor
Contractor must
they are
must similarly
similarly not
are required
not remove
remove any
to be removed
any unfixed
unfixed materials
materials and
and goods
goods delivered
delivered to the Site
Site
unless they required to removed by an express
express provision of the Contract.
provision of Contract.

(2)
(2) The provisions
The provisions of
of Clauses
Clauses 39.1(2)
39.1(2) and (3)
(3) will also
also apply
apply with
with respect
respect to unfixed
unfixed materials
materials and
goods delivered
goods delivered to the Site.
Site.

(3)
(3) The legal ownership
The legal ownership of
of any
any unfixed
unfixed materials
materials and
and goods
goods will pass
pass to
to the Employer after
the Employer after the
the unfixed
unfixed
materials and
materials and goods
goods have
have been
been certified
certified to
to be paid
paid under any Interim
under any Interim Payment
Payment Certificate
Certificate issued
issued by
the Engineer.
Engineer.

(4)
(4) The Engineer may require
The Engineer require the
the Contractor
Contractor to
to give
give a confirmation
confinnarion or declaration
declaration that
that he is
is the
the legal
legal
owner of
owner of the unfixed
unfixed materials
materials or
or he has folly
fully paid
paid for
for them before
before the Engineer
Engineer certifies
certifies the
the values
values
of the
of the unfixed
unfixed materials
materials and
and goods
gpods to be included
included inin any Interim
Interim Payment
Payment Certificate.
Certificate.

39.3
393 Removal of
Removal of any Constructional
Constructional Plant
Plant and Equipment,
Equipment, Temporary
Teri:tporary Works,
Works, Unfixed
Unfixed Materials
Materials and
and
Goods
Goods

(!)
(1) No Engineer's approval
No Engineer’s approval is necessary if the Contractor
necessary if Contractor intends
intends to
to remove
remove or
or demobilise
demobilise from
from the Site
Site
the Constructional
the Constructional Plant
Plant and Equipment,
Equipment, Temporary
Temporary Works,
Works, unfixed
unfixed materials
materials and goods after the
and goods the
Engineer has
Engineer has issued
issued the
the Certificate
Certificate of
of Completion.
Completion.

(2)
(2) The Contractor
The Contractor must
must however consider his
however consider his outstanding
outstanding obligations
obligations after
after the issue
issue of
of Certificate
Certificate of
of
Completion before
Completion he begins
before he the removal
begins the removal and
and demobilisation
demobilisation of
of any Constructional
Constructional Plant
Plant and
Equipment, Temporary
Equipment, Temporary Works,
Works, unfixed materials
materials and
and goods.
goods.

(3)
(3) If the
If the Contractor
Contractor fails to to remove
remove the Constructional
Constructional Plant
Plant and
and Equipment,
Equipment, unfixed
unfixed materials and
materials and
goods after
goods after the
the issue
issue of
of Certificate
Certificate of
of Completion,
Completion, and
and there are no outstanding
there are outstanding works
works remaining
remaining to
be completed
completed byby the Contractor
Contractor which
which require
require the
the use
use of
of such
such Constructional
Constructional Plant
Plant and Equipment,
Equipment,
unfixed materials
unfixed materials and goods,
goods, then
then the Employer
Employer may,
may, after
after prior notice has been
prior notice given to the
been given the
Contractor by the
Contractor the Engineer,
Engineer, sell or cause
cause to
to sell the
the Constructional
Constructional Plant
Plant and
and Equipment,
Equipment, unfixed
unfixed
materials and
materials goods. The
and goods. The Employer
Employer must carry
carry out any
any such
such sale
sale with
with good
good faith.
faith.

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Engineering Works

(4) The Employer

The Employer must
must account
account for
for the
the sale
sale and
and return
return the
the proceeds
proceeds of
of the
the sale
sale to the Contractor
Contractor less
administrative charges
any administrative charges which
which the
the Employer
Employer and
and the
the Engineer reasonably impose.
Engineer may reasonably impose.

39.4
39.4 Employer not
The Employer not Liable
Liable for
for Damage
Damage

(I)
(1) The Employer
Employer is notnot liable
liable to the
the Contractor
Contractor m
in any
any way and at any
any time
time for any damages
damages caused
caused to
the Constructional
the Constructional Plant
Plant and
and Equipment,
Equipment, Temporary
Temporary Works,
Works, unfixed materials and
unfixed materials and goods
goods which
which the
the
Contractor brought onto
Contractor has brought onto the
the Site.
1
(2) The Contractor
The Contractor may
may in his
his own
own discretion
discretion consider
consider any
any insurance
insurance coverage
coverage as he may in his own
may in own
opinion consider
opinion consider necessary
necessary and
and appropriate
appropriate for the
the Constructional
Constructional Plant
Plant and
and Equipment,
Equipment, Temporary
Temporary
Works, unfixed
Works, unfixed materials
materials and
and goods
goods which the
the Contractor
Contractor has
has brought to the
brought to the Site.
Site.
'.7
(3) Con_tractor is solely
The Contractor solely to bear the premium
bear the premium of
of any
any such i_~surance policy
$UC1). insurance or policies
policy or policies taken
t!lk:en out
oµt
under Clause
under Clause 39.4(2).
39.4(2).

39.5
39.5 Conditions for
Conditions for Hired
Hired or Leased
Leased Constructional
Constructional Plant
Plant and Equipment
Equipment

(1) The Contractor

The Contractor must
must not bring the Site
bring to the Site any Constructional
Constructional Plant
Plant and Equipment
Equipment and
and Temporary
Temporary
Works which
which are hired
hired or leased
leased unless
unless this fact
fact is made
made known to the
known to Engin~er.
the Engineer.

(2) The Engineer

The Engineer may
may require
require the
ihe Contractor
Contractor to inform
inform and
and state
state the
the legal ownership
ownership of
of the
the
Constructional Plant
Constructional Plant and Equipment
Equipment and
and Temporary
Temporary Works
Works which
which he
he has brought and mobilised
brought and mobilised to
to - -/
Site.
the Site.
7

(3) The Engineer

The Engineer may
may atat his discretion
discretion approve
approve the
the Contractor
Contractor to
to bring
bring to
to the
the Site
Site the
the Constructional
Constructional
Plant and
Plant and Equipment
Equipment and Temporary
Temporary Works which the Contractor
which the Contractor does
does not
not legally
legally own
own subject
subject to
to
the Contractor
the Contractor satisfying
satisfying or
or causing
causing to
to satisfy
satisfy the
the following
following conditions:
conditions:

(a)
(a) the legal
the legal owner
owner of
of the
the Constructional
Constructional Plant
Plant and
and Equipment and Temporary
Equipment and Temporary Works mustmust
enter into
enter into an agreement with the
agreement with the Employer
Employer to allow Employer to
allow the Employer to continue
continue to use
use the
Constructional Plant
Constructional Plant and
and Equipment
Equipment and
and Temporary
Temporary Works
Works after
after the termination
termination of
of the
the
Contract;
Contract;

(b) the agreement

the agreement must
must take
take the
the form of
of aa hiring
hiring of
of the
the Constructional
Constructional Plant
Plant and
and Equipment
Equipment
by the
the Employer
Employer from
from the
the legal
legal owner;
owner;

(c) the agreement

the agreement must contain aa condition
must contain condition precedent
precedent that
that the agreement
agreement will only
only come
come into
into
effect upon
effect termination of
upon the termination of the Contract
Contract and the
the Employer
Employer notifies legal owner
notifies the legal owner in
writing of
writing of its commencement;
commencement;

(d) an agreement
such an agreement must
must contain
contain an
an Employer’s
Employer's undertaking
undertaking to account
account and pay for the
hire charges
hire charges for
for the
the use of
of the Constructional
Constructional Plant and
and Equipment
Equipment

(4) If the Engineer

If Engineer gives his approval
gives his approval under
under Clause
Clause 39.5(3),
39.5(3), the
the Constructional
Constructional Plant
Plant and
and Equipment
Equipment
and Temporary
Temporary Works
Works will similarly
similarlyb.e
be subject the provisions
subject to the of Clause
provisions of Clause 39.
39.1.
1.

39.6
39.6 Incorporation of
Incorporation of Clause
Clause into Sub-Contracts
Sub-Contracts

(I)
(1) .The Contractor
.The Contractor must incorporate
incorporate the
the whole
whole of
of Clause
Clause 39
39 when he he enters
enters into
into any sub-contract
sub-contract so
so
that the
that the provisions of Clause
provisions of Clause will equally
equally apply
apply as ifif lhe
the sub-contractor
sub-contractor is the Contractor
Contractor with
respect to
respect the Constructional
to all the Constructional Plant
Plant and
and Equipment,
Equipment, Temporary
Temporary Works, unfixed materials
Works, unfixed materials and
goods which
goods sub-contractor will bring
which the sub-contractor and mobilise
bring and mobilise onto
onto the
the Site.
Site.

40
40 COMMENCEMENT OF
COMMENCEMENT OF WORKS
WORKS

40.1
40.1 for Commencement
Date for Commencement

(1) The Date

The Date for
for Commencement
Commencement is

(a) the date

the date specified
specified in the
the Letter
Letter of
of Acceptance
Acceptance or the Appendix as the
Appendix as the Date for
Commencement; or
Commencement;

(b) if no date
if is specified
date is specified in the Letter
Letter of
of Acceptance or the
Acceptance or the Appendix,
Appendix, the
the date specified in
date specified
writing
writing by the
the Engineer
Engineer to
to be
be the Date
Date for
for Commencement;
Commencement; in this case,
case, and
and unless agreed
unless agreed
to by the Contractor,
to the Date
Contractor, the Date for
for Commencement
Commencement must not be more
must not more than
than 30
30 days after
after
the receipt
the receipt by the Contractor
Contractor of
of the Letter
Letter of
of Acceptance;
Acceptance; or
or

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of Engineers,
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Engineering Works
IEM.CE2011
IEM.CE2011

(c)
(c) other date as may agreed to
may be agreed between the Employer
writing between
to in writing Contractor.
Employer and the Contractor.

(2) The Contractor must start

The Contractor the construction
start the of the Works as
construction of reasonably practical
as soon as is reasonably after the
practical after
Date Commencement and
Date for Commencement continue with the execution
and continue of the Works regularly and diligently.
execution of diligently.

(3)
(3) The provision
The Clause 40.1(2)
provision in Clause subjeci to
40.1(2) is subject
_J

(a)
(a) Contractor having submitted evidence
the Contractor evidence of insurance policy
of insurance cover note
policy or cover if Clause
note if
2-IA.3
24 applicable;
A.3 is applicable;

(b)
(b) the Contractor having had Workmen’s
Contractor having Compensation Insurance
Workmen's Compensation Policy or SOCSO in
Insurance Policy
place;
place; and
7

(c) the provisions

provisions of Clause 41.1-.
of Clause 41.1.
_J

41 SITE POSSESSION
SITE POSSESSION

J 41.1 Site

(I)
(1)
Possession
Site Possession

The Contract
The following:
provide the following:
may provide
Contract may

J (a)
(a) the extent
or
to time; or
to
of portions
extent of of the
portions of Site which
the Site Contractor is to be given
which the Contractor possession from time
given possession

(b) the which the portions

in which
the order in portions of available to
the Site are to be made available
of the Contractor; or
to the Contractor;

(c) the availability and the nature

the availability nature of if the provision
access if
of the access of such access
provision of access is the
responsibility of
obligation and responsibility
obligation or
Employer; or
of the Employer;
17
I (d). „ the sequence of
the sequence of the Works.
construction of
of the construction
_I
(2)
(2) The provisions
provisions in Clause 41.1(1) must be made known
Clause 41.1(1) before the submission
Contractor before
known to the Contractor of
submission of
Tender.
the Tender.

(3) provisions in
The provisions m Clause 41.1(1) must
Clause 41.1(1) the provisions
conjunction with the
must be read in conjunction II.I.
Clause 11.1.
provisions in Clause

u (4)
(4) Subject
Subject to Clause and Clause
41.1(1) and
Clause 41.1(1)
Commencement the
Date for Commencement
the Date
obligation and responsibility
obligation
the whole
I.I,
Clause 1I1.1, the Employer
of the Site
whole of
Employer.
of the Employer.
responsibility of
Contractor on or before
give to the Contractor
Employer must give
if the provision
access if
Site and full access of access
provision of
before
access is the

[l (5)
(5) Notwithstanding
Notwithstanding thethe provision
provision of this Clause,
of this Site or
Clause, the Site that part
access or that
or access part of the Site
of the (if
access (if
or access
Site or
the provision
provision of the responsibility
access is the
of the access responsibility of Employer) must
the Employer)
of the be made
must be available to the
made available
to enable
Contractor to
Contractor the Contractor
enable the construction of
Contractor to begin with the construction Works.
of the Works.

0 (6)
Contractor
must thereafter
Employer must
The Employer thereafter give
regularly with the
to proceed regularly
Contractor to the construction
part or parts
Contractor further part-or
the Contractor
give to the parts of
of the Works.
completion of
construction and completion Works.
Site to enable the
the Site
of the

u
41.2
41.2 Failure to Give
Failure to Site Possession
Give Site Possession

(I)
(1) If the
If the Contractor suffers delay
Contractor suffers delay from failure on the part
froin the failure of the Employer
part of give possession
Employer to give of
possession of
Site where applicable
or where
Site or access in
applicable access accordance with the provisions
in accordance provisions of delay has
Clause, and such delay
of this Clause, has
indirectly caused
directly or indirectly
directly delay of
caused the delay the Date
beyond the
of the Works beyond Completion, and the
Date for Completion,

[J Contractor has incurred

Contractor

(a)
Costs as aa consequence,
incurred Costs consequence,

take the delay into

Engineer must take
the Engineer into consideration in determining
consideration in extended Date for
deterntlning any extended
Completion to which
Completion Contractor may be entitled
which the Contractor Clause 44; and
uoder Clause
entitled under

(b) the Engineer additional Costs

Engineer must certify the additional the provisions
accordance with the
Costs in accordance provisions of Clause
of Clause
53.
53.

(2)
(2) If the
If Employer fails to give possession
the Employer of Site
possession of where applicable
Site or where accordance with the
access in accordance
applicable access the
provisions
provisions ofof this Clause, Contractor may by notice
Clause, the Contractor Engineer requestthat
notice to the Engineer that part
request that that of the
part of
Works affected by the failure
affected ·by give possession
failure to give of the Site
possession of Site or access be suspended
access be accordance
suspended in accordance

C.·
the provision
with the provision of 42.1..
Clause 42.1
of Clause
.

[ The Institution
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For Civil Works
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(3)
(3) Engineer may issue instruction
The Engineer or that
Works or
suspend the Works
instruction to suspend of the Works
that part of Works ifif the Employer
fails give possession
to give
fails to of Site
possession of that part of the Site
Site or that or where
Site or where applicable Site to the
access to the Site
applicable access the
Contractor Contractor to proceed
Contractor to enable the Contractor Works. Such
proceed with the Works. effect as ifit
takes effect
instruction takes
Such instruction if it _,
been issued under Clause
has been
has 42.1.
Clause 42.1.

42
42 SUSPENSION
SUSPENSION

42.1
42.1 Instruction Suspend
Instruction to Suspend

(I)
(1) The Engineer
The instruction to the
Engineer may by written instruction the continuing perfonnance
suspend the
Contractor suspend
the Contractor of
performance of 7
the Works
the of the
Works or part of Works. The
the Works. forthwith comply
Contractor must forthwith
The Contractor instruction.
comply with such instruction.

(2) The instruction given by the Engineer

The instruction 42.1 (I) must
Clause 42.1(1)
Engineer under Clause specify that:
must specify

(a)
(a) the suspension
the issued under
suspension has been issued under Clause 42.1(1);
Clause 42.1(1);
(b) the period of suspension
period of or an estimate
suspension or of such a period;
estimate of period; and
(c)
(c) the part or parts of
the part which are
Works which
of the Works suspended.
are to be suspended.

(3)
(3) The Contractor is under no obiigation
The Contractor to suspend
obligation to Works or any part or
the Works
suspend the except
of the Works except
or parts of
instruction under
when an instruction Clause 42.1(1)
under Clause issued.
been issued.
42.1(1) has been

(4)
(4) The during the period
Contractor must during
The Contractor of the suspension
period of steps to properly
take steps
suspeilsion take secure and protect
properly secure protect :
the Works or of the Works which
or part of have been suspended.
which have Contractor must
suspended. The Contractor must discuss with and
discuss with ,__l
obtain the approval
obtain the the Engineer
of the
approval of steps or measures
Engineer for any steps secure and protect
taken to secure
measures taken protect the Works
the Works
or part
or of the
part of the Works.

42.2
42.2 Consequences Suspension
of Suspension
Consequences of

(!)
(1) If the suspension
If the Works or part
of the
suspension of part of the Works
of the caused the
Works has caused of the Works
delay of
the delay beyond the
Works beyond
Date for Completion
Date for the Contractor
and the
Completion and then
Costs, then
incurs Costs,
Contractor incurs i
·. __)
(a)
(a) the
the Engineer take the delay
Engineer must take consideration in determining any extended
into consideration
delay into Date for
extended Date
the Contractor
Completion to which the
Completion Clause 44; and
entitled under Clause
Contractor may be entitled

(b)
(b) the Engineer certify the
must certify
Engineer must the additional Costs in accordance
additional Costs with the provisions
accordance with Clause
of Clause
provisions of
53.
53.
l.,
(2)
(2) The of Clause
provisions of
The provisions applicable ifif the
are not applicable
Clause 42.2 are suspension is
the suspension
iJ
(a)
(a) already provided
already provided for m Contract; or
in the Contract;

(b) necessary breach or breaches

necessary due to breach breaches of Contract by the Contractor;
the Contract
of the or
Contractor; or

(c)
(c) caused event which
an event
caused by an obligation of
properly the responsibility or obligation
which is properly Contractor; or
the Contractor;
of the

(d)
(d) for of the
safety of
for the safety the Works
of the
the Works or any part of Works as a direct of the
consequence of
direct consequenec
inaction; or
Contractor's action or inaction;
Contractor’s

(e)
(e) for the safety
for of the Works
safety of Works or any part
or any part of Works which
of the Works other
consequence other
which is a direct consequence
than an Employer’s Risk or aa combination
Employer's Risk ofEmployer's
combination of Risks.
Employer’s Risks.

42.3
423 Suspension
Prolonged Suspension

(I)
(1) !fthe
If the suspension such that
instructed is such
suspension instructed that

(a) it will have the pro~ess

suspended the
have suspended progress of Works or part
of the Works part of than 3
more than
of the Works for more
calendar months;
calendar months; or '

(b) resume the

instruction to resmne
instruction Works or
the Works or part
part of not given by the
suspended is not
of the Works suspended the
Engineer within a period
Engineer within period of months;
calendar months;
of 3 calendar

serve aa notice
Contractor may then serve
the Contractor Engineer requesting
notice to the Engineer resumed within 14
Works be resumed
requesting that Works 14
receipt by the
of receipt
from the date of
days from the Engineer such aa request.
of such
Engineer of request.

(2)
(2) If the
If the Contractor
suspended
not received
Contractor has not
after having
suspended after
received instruction
served the
having duly served notice in Clause
the notice
Works or
resume the Works
instruction to resume the part
or the part or parts
Contractor may
42.3(1), the Contractor
Clause 42.3(1),
parts of
may
the Works
of the '\~tJ·,
,,.-,,,

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7 _)
For Civil
For Civil Engineering Works
Engineering Works

(a) in the case

in case where
where the
the suspension
suspension only
only affects
affects part or
or parts
parts of
of the
the Works,
Works, elect
elect to
to treat
treat such
such
part or parts
part or having been omitted
parts as having omitted from the
the Works
Works under Clause 551;
under Clause or
1; or

(b) in the case

in case where
where the suspension
suspension affects
affects the
the whole
whole of the Works,
of the Works, terminate
terminate the
the Contract
Contract
under Clause
under Clause 62
62 as
as if
if the
the Employer
Employer has
has committed
committed a default
default under
under Clause 62.11(1).
Clause 62. (I).

.I
I_J
43
43 DATE FOR
DATE FOR COMPLETION
COMPLETION

43.1
43.1 Date Completion
Date for Completion

(!)
(1) The Contractor
The Contractor must construct and
must construct and complete
complete the Works
Works on or before
before

(a) the Date

the Date for -Completion
,Completion or such other
other extended
extended date as may be determined the
determined by the
Engineer under
Engineer under Clause
Clause 44; or ·

(b)
(b) such varied
such varied Date
Date for Completion as may be
for Completion fixed by the
be fixed the Engineer
Engineer under
under Clause
Clause 43.2.
43.2.

43.2
43.2 Entitlement to
Entitlement to Vary
Vary Date
Date for Completion
for Completion

(!)
(1) Jfthe
If Engineer wishes
the Engineer wishes in in good
good faith to advance
advance or
or postpone the Date
postpone the Date for
for Completion,
Completion, he may
may after
consultation with the Contractor
consultation Contractor determine
determine and
and fix the
the varied
varied Date
Date for Completion.
Completion. The
The Engineer
Engineer
must confirm
must confirm this to
to the
the Contractor
Contractor in writing.
writing.

(2) part of
As part of the
the consultation
consultation process, the
the Contractor
Contractor must after being
must after being notified
notified by the
the Engineer,
Engineer,
produce in reasonable
produce in time to
reasonable time to the
the Engineer
Engineer

(a)
(a) a revised construction
construction programme taldng into
programme taking into considerations
considerations of
of the
the advanced
advanced or
or
postponed Date for
postponed Date for Completion;
Completion; and
and

(b)
(b) any increase
any increase or decrease
decrease in Costs.
Costs.

(3) The Engineer

The in determining
Engineer in determining and fixing the
the varied
varied Date
Date for Completion
Completion under
under this
this Clause
Clause may
may also
also
notify the Contractor
notify the Contractor of
of the
the increase
increase in Costs
Costs which
which he entitled.
is entitled.
he is

(4)
(4) The provision
The of this
provision of this Clause
Clause is
is separate
separate and
and distinct
distinct from
from the
the provision
provision of
of Clause
Clause 44.

44 EXTENDED DATE
EXTENDED DATE FOR
FOR COMPLETION
COMPLETION

D 44.1
44.1 Extended Date
Extended Date for
for Completion
Completion

(I)
(1) The Engineer
The Engineer may
may certify extension to Date
certify extension Date for
for Completion
Completion of
of the
the Works
Works by fixing
fixing an extended
extended
Date for
Date for Completion
Completion if
if there delay to the completion
there is delay completion of
of the
the Works
Works which
which has been
been caused
caused by any
any
of the
of the following
following events
events or
or aa combination
combination of
of them:

(a)
(a) any variation
any variation instructed
instructed under
under Clause
Clause 551;
1;
nl
_J (b) any circumstance occurrence entitling
circumstance or occurrence entitling the
the Contractor
Contractor to an extended
to an extended Date
Date for
for
Completion by
Completion by reason of an
reason of an express
express provision of the
provision of Contract;
the Contract;

n
'
u '
(c)
(c) the occurrence of
the occurrence of an
an Employer’s
Employer's Risk
Risk or aa combination
combination of
of these
these risks;

(d)
(d) the relocation
the of any buried
relocation of services or
buried services or mains which are
mains which are not
not shown
shown on
on the
the Drawings;
Drawings; or

(e) act of
any act of prevention
prevention or
or breach
breach of
of Contract
Contract by the
the Employer.
Employer.
! J
(2)
(2) The certificate
The certificate issued
issued under
under Clause 44.1
44.1 isis referred
referred toto as Certificate
Certificate of
of Extended
Extended Date
Date for
Completion for the
Completion the purposes of the
purposes of the Contract.
Contract. This
This Certificate
Certificate must issued to the Contractor
be issued
must be Contractor with
with
a copy to the
copy to the Employer.
Employer.

(3)
(3) The Certificate of
The Certificate ofExtended Date for
Extended Date for Completion
Completion must

0 (a)
(a) certify the
certify the extended
Works;and
Works; and
extended date
date on
on or
or before
before which
which the
the Contractor
Contractor is
is required
required to complete
complete the
the

(b)
(b) state the
state the events
events listed
listed in
in Clause
Clause 44.1(1)
44.1(1) which
which the
the Engineer
Engineer has
has relied on certifying
on in so certifying
including stating
including stating where
where applicable
applicable the
the relevant
relevant express
express provision
provision or provisions of the
provisions of the
Contract or
Contract or the
the act
act of
of prevention
prevention or breach
breach of
of the
the Contract.
Contract.

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(4)
(4) The Engineer
The Engineer may take the following
following factors consideration before
into consideration
factors into before certifying the extension to
certifying the
Completion:
Date for Completion:
the Date

(a)
(a) reasonable efforts and steps taken by the Contractor
the reasonable mitigate the effects of
Contractor to mitigate any
of any
event or events listed
delay caused by the event Clause 44.1(1);
listed in Clause 44,1(1); and

(b)
(b) whether the Contractor
whether Works regularly
executing the Works
Contractor has been executing diligently.
regularly and diligently.

(5) ''Date for

“Date Clause also
Completion" used in this Clause
for Completion” includes where
also includes applicable an
where applicable for
extended Date for
an extended
Completion.
Completion,

44.2
442 Contractor's Notice
Contractor’s Notice

(I)
(1) ff
If 1he
the Contractor considers that
Contractor considers there will be
that there has· been
be or has delay to
been delay the completion of the Works
completion of
beyond the
beyond caused by 1he
are caused
Completion which are
the Date for Completion the events listed in Clause
events listed must
Clause 44.1(1), he must
then serve
then notice to the Engineer.
serve aa notice Engineer.

(2) The notice referred to in Clause

notice referred 44.2(1) must include the following
Clause 44.2(1) information:
following information:

(a)
(a) the appropriate provision
the appropriate Clause 44,1(1)
provision in Clause applicable including
which is applicable
44.1(1) which express
the express
including the
provision of the Contract
provision of of Clause
case of
Contract in the case or the details of
44.l(l)(b) or
Clause 44.1(l)(b) of
of the act of
of Clause
case of
prevention in the case (I)(e); and
44.1l(I)(e);
Clause 44.

(b) the estimated extended Date for

extended Date Completion which
for Completion considers that he is properly
which he considers properly
entitled to
entitled which he requires
or which
to or to complete
requires to Works.
complete the Works.

(3) The
The Contractor must act
Contractor must wi1h reasonable
act with reasonable despatch notice required
serving the notice
despatch in serving required in Clause 44.2(1).
in Clause

(4) If the delaying

If delaying event still operating
event is still serves the notice
Contractor serves
operating when the Contractor Clause
notice referred to in Clause
44.2(1),
44.2(1), the Contractor nevertheless wi1hin
Contractor must nevertheless 28 days
within 28 event stops
of the event
days of operative update
stops being operative
or revise
or submitted earlier.
details which he has submitted
revise the details earlier.

44.3
443 Certification
Engineer's Certification
The Engineer’s

(1)
(!) If
If the Engineer that he requires
considers 1hat
Engineer considers information and details
requires further information Contractor to
details from the Contractor
enable him to proper
enable him proper consider an extension
certify an
consider and certify of the
extension of Date for
the Date Engineer
Completion, the Engineer
for Completion,
request the Contractor
may request information. The
Contractor to supply such information. Engineer must
The Engineer must convey such aa request
convey such request
in after the receipt
time after
reasonable time
m reasonable receipt of Contractor's notice
of the Contractor’s notice referred Clause 44.2(1). The
referred to in Clause
must comply
Contractor must
Contractor with such request
comply with

(2) The
The Engineer notify the Contractor,
Engineer must notify Contractor, within the receipt
of the
within 14 days of receipt of Contractor's notice
of the Contractor’s
given under
given under Clause 44.2(1) or further information
Clause 44.2(1) details from the Contractor
information and details Clause
Contractor under Clause
44.3(1),
44.3(1), whether in his opinion the Contractor
his opinion entitled to any
Contractor is entitled extension to the Date for
aoy extension
Completion. '

(3) If
Completion and
Completion also notified
aod he has also
"
considered that the Contractor
Engineer has considered
If the Engineer
notified the Contractor 44.3(2), the Engineer
Clanse 44.3(2),
Contractor under Clause
Date for
extension to the Date
entitled to an extension
Contractor is entitled
must then
Engineer must
within a further 30 days
wifuin issue the Certificate
days issue Extended Date
ofExtended
Certificate of Date for Completion.
for Completion.

(4) If 1he
If the delaying
delaying event
event onon which Engineer has certified
which the Engineer Completion is
extended Date for Completion
certified the extended
continuing, may nevertheless
Engineer may
continuing, the Engineer an interim
nevertheless issue an Certificate of
interim Certificate Extended Date for
of Extended
Completion. The
Completion. The interim of Extended
Certificate of
interim Certificate for Completion
Date for
Extended Date Completion must expressly the
state that the
expressly state
granted is on
extension so granted
extension an interim basis.
on an
■J
(5)
(5) The
The Engineer take the following
Engineer must take consideration before
factors into consideration
following factors extended
certifies the extended
before he certifies
Completion:
Date for Completion:

(a) the extension to the Date

extension to Completion previously
Date for Completion previously certified any;
cei:tified ifif any;

(b) the effect

effect of aoy works
of any omitted from
works omitted Contract by the provision
the Contract
from the provision of Clause 551;
of Clause 1 ; and

(c) the effect

effect of decrease in the
substantial decrease
aoy substantial
of any for any
the quantity for item of
any item Works
Remeasured Works
of Remeasured
which has aa critical C9mpletion.
impact on the Date for Completion.
critical impact

(6)
(6) Further
Further to Clause 44.3(5), the
Clause 44.3(5), Engineer must not
the Engineer his certification
not consider in his of any
certification of of the
extension of
any extension
for Completion
Date for
Date effect of
Completion the effect events due to
of the events to the Contractor’s operate
Contractor's fault which operate
concurrently any of
concurrently with any the events
of the Clause 44.1(1):
events listed in Clause 44.1(1);

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(7) In certifying extension to any

Date for Completion due to
extension to the Date Clause 44.1(1)
listed in Clause
event listed
auy event which is
44.1(1) which
Date for
operative after the Date
operative extension certified
Completion, the extension
for Completion, such that
must be such
certified must Date
extended Date
that the extended
for Completion continue from the Date
Completion must continue Completion and not from the date
Date for Completion date the event stops
event stops
operative.
being operative.

44.4 Certification after

Certification Completion
Date for Completion
after Date

(1) The before he

Engineer may, before
The Engineer Final Payment
issues the Final
he issues Certificate under
Payment Certificate under Clause aud
Clause 59.2, and
irrespective if
irrespective notice has
if any notice served by the
has been served under Clause
Contractor under
the Contractor consider and
44.2(1), consider
Clause 44.2(1),
review ~ents known
review all events known toto him which
which are among those
are among those listed Clause 44.1 and which have
listed in Clause caused
have caused
delay to the completion
delay of the
completion of before the Date
the Works before Completion.
Date for Completion.

(2)
(2) If consideration and review
If upon such consideration review the Engineer that the Contractor
considers that
Engineer considers entitled to an
Contractor is entitled
extension of
extension Date for Completion, he must
of the Date must accordingly issue aa Certificate
accordingly issue of Extended
Certificate of for
Extended Date for
Completion similar
Completion Clause 44,1(2),
that in Clause
similar to that 44.1(2).
J.
(3)
(3) The Engineer must
The Engineer must not certify auy extended
certify any Date for Completion
extended Date earlier than
Completion earlier notified
that already notified
thau that
the Contractor
to the consideration and review.
Contractor in this consideration review.
,_j
45 RATE CONSTRUCTION
OF CONSTRUCTION
RATE OF

45.1 Progress of
Slow Progress Construction
of Construction

(1) The Engineer

The may notify
Engineer may the Contractor
notify the ifhe
Contractor if considers that
he considers rate of
that the rate construction of
of construction is
of the Works is
meet the Date
not able to meet Date for Completion or
for Completion or extended for Completion.
Date for
extended Date notice can be
This notice
Completion. This be sent
when

(a) the Engineer considers Contractor is not

that the Contractor
considers that entitled to any extension
not entitled for
extension to the Date for
Completion; or
Completion;

(b) the served any notice

has not served
Contractor has
the Contractor notice for any extension Date for
extension to the Date Completion
for Completion
Clause 44.2(1).
under Clause 44.2(1).

0 (2)
(2) Upon the receipt
Upon
all steps
the Works.
of the
receipt of notice referred
the notice
considers necessary
which he considers
steps which
Clause 45.1(1),
referred to in Clause
necessary and which
Contractor must
45.1(1), the Contractor
Engineer may approve
which the Engineer
immediately take
must immediately take
progress of
expedite progress
approve to expedite of

n (3)
(3) The Contractor
The entitled to claim Costs
Contractor is not entitled expedite progress
steps to expedite
taking any steps
Costs for taking subsequent to
progress subsequent
LJ the issue by the Engineer
entitled to claim Costs
entitled
notice referred
of the notice
Engineer of to in
referred to
he incurs additional
Costs ifif he
Clause 45.1(1).
m Clause
consequence of
expenditure as aa consequence
additional expenditure
similarly not
Contractor is similarly
The Contractor
45.1(1). The
Engineer
of the Engineer
steps which
approving the steps
approving Contractor has proposed
which the Contractor take under Clause
proposed to take 45.1(2).
Clause 45.1(2).

46 LIQUIDATED DAMAGES
LIQUIDATED DAMAGES -

46.1 Liquidated Damages

0 (1)
(1) If the Contractor
If
Completion as
for Completion
complete the Works by the
to complete
Contractor fails to
case may be,
as the case
or by
Completion, or
the Date for Completion, by any extended Date
auy extended Date

D (a)
(a) the Employer
the Employer is then entitled
Liquidated Damages
Liquidated
demand; or
demaud from
entitled to demand
Contract and the
Damages in the Contract
~
designated as
the sum designated
Contractor the
from the Contractor
must pay to the Employer
Contractor must
the Contractor such
Employer on such

(b)
(b) the Employer
the set-off from
entitled to set-off
Employer is entitled Contractor the sum
from the Contractor Liquidated
designated as Liquidated
sum designated
Damages payment due or which
Damages any payment which will become
become due Contractor under the
due to the Contractor
Contract.
Contract.

(2) The total amount of

The total Damages payable
Liquidated Damages
of Liquidated payable by the Contractor Employer must be
Contractor to the Employer be
calculated at
calculated at the rate stated in the Appendix
rate stated period from the
Appendix for the period Date for
the Date (or any
Completion (or
for Completion

. extended Date for

extended Date
the Engineer.
by the Engineer.
for Completion) date that
Completion) to the date Contractor has completed
that the Contractor certified
completed the Works as certified

0 .
., 46.2
46.1 Certificate of
Certificate Non-Completion
of Non-Completion

(1) It before the Employer

condition precedent before
It is a condition Employer can exercise his option
cau exercise Clause 46.1(1)
option in Clause 46.1(1) that the
Engineer must have certified
Engineer must that in his opinion
certified that reason why the Contractor
there is no reason
opinion there ought not to
Contractor ought

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have
have completed Works. The
completed the Works. The certificate Engineer under this clause
issued by the Engineer
certificate issued this
clause is called in this
Contract the Certificate
Contract Certificate ofNon-Completion.

(2)
(2) The issue the Certificate
Engineer must issue
The Engineer Non-Completion to the Contractor
of Non-Completion
Certificate of to the
copy to
Contractor with a copy
Where the delay to
Employer. Wbere
Employer. to the completion of the Works has
completion of caused by the Nominated
has been caused Nominated
Sub-Contractor, aa copy
Sub-Contractor, of the Certificate
copy of Non-Completion must
of Non-Completion
Certificate of copied to the Nominated
must also be copied Nominated
Sub-Contractor.
Sub-Contractor.

(3)
(3) The Engineer must
The Engineer properly consider
must properly if the
circumstances and factors if
consider all the circumstances fairly
Contractor is fairly
the Contractor
entitled to an extension
entitled the Date
of the
extension of Completion before he issues
for Completion
Date for of Non-
Certificate of
issues the Certificate Non-
Completion.
Completion.

46.3
46.3 The Employer’s Rights
Common Law Rights
Employer's Common

(!)
(1) If
If for whatever the Employer
whatever reason the enforce his right
chooses not to enforce
Employer chooses 46.1(1), or the
Clause 46.1(1),
right under Clause
Employer has for whatever
Employer whatever reason exercise his right
entitled to exercise
reason not entitled Clause 46.1(1),
under Clause
right under the
46.1(1), the
still retains
Employer still his right
retains his right to from the Contractor
to claim from loss, expense
Contractor such loss, other
expense and any other
damages entitled·under
which he is entitled
damages which under Common Law.
Common Law.

47
47 CERTIFICATE COMPLETION
OF COMPLETION
CERTIFICATE OF

47.1
47.1 Notice of Works
of Completion of
Notice of

(!)
(1) When Contractor considers
the Contractor
Wben the that the Works
considers that Works have completed, be
have been completed, serve a notice
may serve
he may notice
(“Completion effect to the
Notice”) to that effect
("Completion Notice") the Engineer. Completion Notice
Engineer. The Completion also takes
Notice also effect as
takes effect
the request
the the Engineer
Contractor to the
request by the Contractor certifying the completion
certificate certifying
issue aa certificate
Engineer to issue completion of the
of the
Works.
Works.

(2)
(2) The Contractor
The Contractor must include in
must include Completion Notice
in the Completion following undertakings:
Notice the following undertakings: '7

(a) that the Contractor complete with

undertakes to complete
Contractor undertakes works which
minor works
expedition any minor
with due expedition which IJ
not yet completed;
are not
are and
completed; and
~,
(h) make good
undertakes to make
Contractor undertakes
the Contractor complete with
good and complete expedition any
with due expedition
(b) that foe
which the
defects which
defects the expiry
Engineer may notify him before foe
the Engineer expiry of the Defects
of foe Liability
Defects Liability I~I
Period.
Period.

47.2
47.2 Certificate of Completion
Certificate of i_J
(I)
(1) The Engineer must, within
Engineer must, within 14 of his receipt
days of
14 days of foe
receipt of Completion Notice
the Completion either of
Notice do either the
of the
following:
following:

(a) Engineer must

The Engineer issue foe
must issue Certificate of
the Certificate certifying that
Completion certifying
of Completion in his opinion
that in
Contract.
the Contract.
of foe
the
opinion foe
u
have been
Works have accordance with foe
completed in accordance
been completed requirements of
the requirements

(h)
(b) The Engineer must reply stating
The Engineer that in
stating that view foe
in his view have not been
Works have
the Works been completed. The
completed. The
Engineer must
Engineer also specify in his
must also reply foe
his reply following:
the following:

(i) the detailed

the of foe
detailed list of works which
the works completed; and
which remain to be completed;

(ii) foe of works

list of
detailed list
the detailed works which are not constructed
which are the
accordance with foe
constructed in accordance
requirements of the Contract
requirements of acceptable.
thus not acceptable.
Contract and are thus -,
I
(2) The Contractor may
The Contractor may submit again Completion Notice
the Completion
again foe after he
Notice after he considers completed
that he has completed
considers that
the Works including those
foe listed by the Engineer
those listed issued in
instruction issued
Engineer in his instruction in accordance Clause
accordance with Clause
47.2(I)(h).
47.2(l)(b).

(3)
(3) The Certificate of
The Certificate Completion must
of Completion must certify that the Works are.completed
certify that on foe
are.completed on date of
the date receipt
of his receipt
of Completion Notice
the Completion
of foe or foe
Notice or date of
the date receipt -of the re-submitted
his receipt•ofthe
of his Completion Notice
re-submitted Completion as the
Notice as
case maybe.
case may be.

47.3
473 The Meaning Completion
of Completion
Meaning of <

(!)
(1) For foe
For of this
the purpose of this Contract, 'completion' means
Contract, ‘completion’ means

(a)
(a) that the Works
that foe Works can used to their
operational and used
can be operational satisfy the purposes
extent to satisfy
their full extent purposes and
functions to which
functions Works were designed
which the Works intended;
designed and intended;

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(b)
(b) of any
are free of
that the Works are which are readily
defects which
any defects observed and recognised;
readily observed recognised;

(c)
(c) that contain some
even if the Works contain
that even the Engineer
defects, the
some defects, considers that
discretion considers
Engineer in his discretion that

(i) the pUiposes,

purposes, functions, safety and integrity
safety and of the Works
integrity of affected or
Works are not affected
compromised by these
compromised defects; and
these defects;

(ii)
(ii) the defects are otherwise minor;
otherwise minor,

and

(d)
(d) the tests
have passed all the
the Works have if such tests are required
tests if Contract
required by the Contract

48
48 DEFECTS LIABILITY
DEFECTS LIABILITY

48.1 Defects Liability

Defects Period
Liability Period

(I)
(1) The phrase
The 'Defects Liability Period’
phrase ‘Defects means the period
Period' means stated in
period stated calculated from the
the Appendix calculated
in the
D of Completion.
of
Contractor has completed
date when the Contractor and the Engineer
Works and
completed the Works certified this
Engineer has certified Certificate
this in Certificate

n (2) The
The Engineer

(a)
must notify the Contractor
Engineer must
good. The
made good.

before
Contractor must
The Contractor

before the end

of any
Contractor of defects, minor
any defects,
good all these
must make good
minor or otherwise, that are required to be
or otherwise,
notified to him
defects notified
these defects

Liability Period;
of the Defects Liability
end of Period; or
him
be

D (b) soon as practicable

as soon expiry of
after the expiry
practicable after Defects Liability
the Defects
of the Period.
Liability Period.

(3)
(3) The notice
The notice referred in Clause
referred to in must be issued
Clause 48.1(2) must or before
Contractor on or
issued to the Contractor the expiry
before the of
expiry of
Liability Period.
the Defects Liability Period.
[] (4) For the pUipose
For the purpose of means works
'defects' means
Contract, ‘defects’
of this Contract,

(a)
(a) which are not
which constructed to the expressed
not constructed implied requirements
or implied
expressed or requirements of or
Contract; or
of the Contract;
D (b) which have
which through the neglect
deteriorated through
have deteriorated neglect of Contractor.
of the Contractor.

0 48.2
482 Cost

(l)
(1) The
Defects
Good Defects
of Making Good
Cost of

Contractor is
The Contractor responsible and to bear all expenses
solely responsible
is solely costs incurred
expenses and costs him in making
incurred by him making
good notified to him by the Engineer
defects notified
good any defects under Clause 48.1(2).
Engineer under 48.1(2).

[J (2)
(2) Contractor considers
If the Contractor
If
meaning of
the meaning Clause 48.1
of Clause 48.1(4), rectification of
claim the rectification
(4), he may then claim these defects as
of these
defects within
which he is required to make good are not defects
works which
considers that the works
as Variations
Variations in
case the provisions
which case provisions ofCiause applicable.
51 will be applicable.
of Clause 51

0 48.3
48.3 Failure to Make
Failure Defects
Good Defects
Make Good

u
(I)
(1) If
If the Contractor fails within
the Contractor reasonable time
within a reasonable commence and the making good
time to commence defects
of the defects
good of
notified to
notified Engineer, the Employer
to him by the Engineer, behalf is then
Engineer on his behalf
Employer or the Engineer entitled to
then entitled
employ and pay
employ other persons
pay other carry out the making
persons to carry making good of the defects.
good of

u
(2) The Employer
The to recover
entitled to
Employer is entitled costs and expenses
recover the costs incurred in employing
expenses incurred and paying
employing and other
paying other
persons to make good the notified
persons defects if
notified defects to do so by
Contractor fails to
if the Contractor

(a)
(a) that the amount
demanding that the costs
of the
amount of expenses so incurred
costs and expenses paid by the
incurred be paid
or
Contractor; or
Contractor;

[J (b)
(b) setting-off such
setting-off
the Contract.
the Contract.
amount due or to become
any amount
such amount from any become due to Contractor under
to the Contractor under

u (3) Employer must provide

The Employer
The

(a)
provide all details and substantiations
details and

making the demand in Clause 48.3(2)(a);

when making
when 48.3(2)(a); or
Contractor
the Contractor
substantiations to the

u (b) before setting-off the

before setting-off amount due
the amount become due to the Contractor
to become
due or to Clause 48.3(2)(b).
Contractor in Clause 48.3(2)(b).

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48.4 Certificate of Making

Certificate of Defects
Good Defects
Making Good

(1)
(!) satisfied that
Engineer is satisfied
When the Engineer that all defects notified to the Contractor in
defects notified accordance with Clause
in accordance
have been
48.1 (2) have
48.1(2) Contractor, he must
been made good by the Contractor, certificate to
issue a certificate
must issue that effect. Such a
to that
certificat,: is
certificate this Contract
called in this
is called Making Good
of Making
'Certificate of
Contract ‘Certificate Defects'.
Good Defects’.

(2)
(2) The Certificate of
The Certificate Good Defects must be issued
Making Good
of Making Contractor with aa copy to the
issued to the Contractor
Employer.
Employer.

(3)
(3) The Certificate of
The Certificate Defects signals
Making Good Defects
of Making that
signals that

(a)
(a) the Contractor discharged from physically
Contractor is fully discharged attending to the Works for the making
physically attending
good of
good defects;
of defects;

(b)
(b) the Contractor permitted to demobilise
Contractor is permitted Constructional Plant
remammg Constructional
demobilise any remaining and
Plant and
Site without
Equipment from the Site requiring to
without requiring to secure approval of
secure the approval Engineer;
of the Engineer;

(c)
(c) the Contractor remain on Site upon
allowed to remain
Contractor is only allowed consent of
written consent
upon the written Engineer
of the Engineer
Employer.
or the Employer.

(4)
(4) The
The Certificate
Certificate of discharge the Contractor
Making Good Defects does not discharge
of Making liability
Contractor from any liability

(a) incurred prior to the issuance

incurred prior Certificate; and
of the Certificate;
issuance of

(b) regard to
in regard are not readily
which are
to any defects which readily observed or recognised.
observed or recognised.

48.5
48.5 Diminution in the of the Works
Value of
the Value

(!)
(1) defects which the Contractor is required
If the defects
If that, in the view of
such that,
required to remedy are such Engineer,
of the Engineer,

(a)
(a) directly or indirectly
affect directly
they do not affect safety, integrity
indirectly the safety, or aesthetics
integrity or of the Works;
aesthetics of

(b) the Works or part of

the may be further damaged in the
of the Works may course of
the course the
of making good the
defects;
defects;

(c)
(c) good of
the making good in relation
complex in
of the defects is relatively complex relation to of the
to the nature of
defects;
defects;

(d)
(d) the making good of
making good defect will take
of the defect considerable time and which will disrupt and
take considerable
inconvenience functional use
inconvenience the functional of the Works;
use of Works;

the Engineer may then,

the Engineer discretion, or
absolute discretion,
then, in his absolute application by
an application
or upon an instruct
Contractor, instruct
by the Contractor,
made good.
defects be not made
that the defects

(2)
(2) In issuing
In Clause 48.5(1),
pursuant Clause
instruction pursuant
issuing the instruction 48.5(1), the Engineer may determine and include
the Engineer an
include an
amount of the Works by
representing the reduction in the value of
amount representing leaving the defects as they
by leaving This
they are. This
is deemed variation (omission)
deemed aa variation for waiving
(omission) for strict requirements
waiving the strict requirements of Contract.
of the Contract.

49 SECTIONAL COMPLETION
SECTIONAL COMPLETION

49.1 Completion Sections

Completion in Sections

(!)
(1) With Section of
respect to each Section
With respect of the Works, the provisions of the clauses
provisions of in Clause 49.1
identified in
clauses identified
applicable as
(2) are applicable
(2) subject of
is the subject
as ifif each Section is and distinct
separate and
of a separate contract between the
distinct contract
Contractor.
Employer and the Contractor.
Employer

(2)
(2) The Clauses are as follows:
relevant Clauses
The relevant

(a)
(a) Clause Completion;
on the Date for Completion;
Clause 43 on
(b) Clause 44 on Extended
Clause 44 Completion;
Date for Completion;
Extended Date
(c)
(c) Clause Construction;
of Construction;
Clause 45 on Rate of
(d)
(d) Clause 46 on
Clause of Non-Completion
Certificate of
Damages, Certificate
on Liquidated Damages, Non-Completion and common law
and common law
rights;
rights;
(e)
(e) Clause 47 on the
Clause 47 the Certificate of Completion; and
Certificate of
(f) Clause 48
Clause Liability.
on Defects Liability.
48 on

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50 TO
CONTRACTOR T
CONTRACTOR SEARCH
O SEARCH
l
i 50.I
50.1 Contractor to Search
Contractor
_J-
(1) The Engineer may at
Engineer may before the
at any time before the issue of the Certificate
issue of of Making
Certificate of Making Good instruct
Defects instruct
Good Defects
Contractor to carry out tests, trials
the Contractor trials or any measures necessary and required
which may be necessary
measures which required to
search and ascertain the cause
· search of any defects.
cause of

(2)
(2) If the Contractor
If liable for
Contractor is liable defects nnder
these defects
for these Contract, the cost
under the Contract, cost of carrying out the tests,
of carrying tests,
measures are to be fully borne
trials or measures Contractor including
borne by the Contractor costs and expenses
including the costs incurred
expenses incurred
remedying the defects.
Contractor in remedying
by the Contractor

(3) If however the Contractor

If however Contractor is not liable for the defects Contract, then the instruction
under the Contract,
defects under issued
instruction issued
T under Clause instruction for a Variation.
50.1(1) is an instruction
Clause 50.1(1)
and remedying
searching and of the-defects.
The scope
Variation. The Variation includes the
of this Variation
scope of the

J expenses both
expenses both in searching remedying of the-defects.

51. VARIATIONS
VARIATIONS
7
_, 51.I
51.1 Duty and Power to Issue Variations
Issue Variations

(1)
(1) Engineer must issue
The Engineer
The instructions for Variation
issue instructions any part of
Variation for any Works if
of the Works Variation is
the Variation
if the
7 necessary for
necessary completion of
for the completion the Works.
of the
_,i
(2)
(2) The Engineer may
The Engineer issue instruction
may issue for Variation
instruction for for any part
Variation for part of Works ifif
of the Works

1 (a) he is of that the Variation

the opinion that
of the Variation is desirable Works; or
for the Works;
desirable for

(b)
(b) if the Variation
if Variation is in any way aa result
result of original intent
change in the original
of any subsequent change of
intent of
Contract.
the Contract.

] (3) V.ariation will not

Engineer's instruction for Variation
The Engineer’s
The in any way nullify
not in Contract.
nullify the Contract.

(4)
(4) The Contractor
Die comply with
Contractor must comply all instructions
with all requiring Variations
instructions requiring Variations and to all works
complete all
to complete
comprising the Variations
comprising Variations before
before the Date Completion or any extended Date
Date for Completion Date for If
for Completion. If
however Variations is issued
however the instruction for the Variations the-Engineer
issued by the Date for
Engineer after the Date Completion or
for Completion
extension to this date, the Contractor
any extension Contractor must then complete comprising the Variation
works comprising
complete the works Variation
within a reasonable
reasonable time following the issue
time following instruction.
of the instruction.
issue of

51.2
51.2 Can be Variations
What Can Variations

(1)
(1) A Variation relating to the Works
incidental and relating
Variation which must be incidental in any of
be in
Works can be following
of the following
-~.
manner
manner or form or a combination of them:
combination of them:
i'
(a)
(a) an decrease in the quantity of
increase or decrease
an increase Works or any part
of the Works ofi~
part of it;

D (b)
(b)

(c)
(c)
an omission any part
of any
omission of of the Works;
part of

in the character
change in
aa change quality of
or quality
character or any part
of any part of Works;
of the Works;

Drawings;
change in the Drawings;
10 (d)

(e)
(e)
a change

required demolition
any required of any part
removal of
demolition or removal part of Works as a consequence
of the Works of a
consequence of
change in the Drawing;
change and
Drawing; and
fl
lJ (t)
(f) a change in any
change in sequence or
specified sequence
any specified of construction
timing of
or timing of any
construction of of the Works.
part of
any part Works.

(2)
(2) instruction which
An instruction which is issued necessitated by, a breach
cure, or which is necessitated
to cure,
issued to of the Contract by the
breach of
Contractor
Contractor cannot rise to any
cannot give rise Variation.
any Variation. ·

(3)
(3) cannot be
There cannot be any Variation without a written
Variation without instruction to that
written instruction effect by the
that effect Engineer. A
the Engineer. A
confirmation of
confirmation instruction wider
of verbal instruction under Clause 3.2 is aa properly
Clause 3.2 properly issued within the
instruction within
issued instruction the
r7. meaning of
meaning Clause.
of this Clause.
Lt
(4)
(4) The Engineer cannot
The Engineer instruction omitting
of an instruction
cannot by way of any part
omitting any of the Works
part of omitted
award the omitted
Works and award
works to
works person. The
other person.
to any other Contractor is entitled
The Contractor claim for the loss
entitled to claim of profit
loss of of this
reason of
profit by reason
1 omission.
omission.
[_J'

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51.3 Change in
Change Quantity
in Quantity

(!)
(1) If there
If there is any increase
increase oror decrease in the quantity
decrease in quantity of
of works for any Remeasured
works for Remeasured Work
Work which is a
result of the
result of the quantity
quantity exceeding
exceeding oror being
being less
less than
than the quantity
quantity stated
stated in the corresponding
in the item in
corresponding item in
the Bill of
the Bill of Quantities
Quantities for
for Remeasured
Remeasured Works, then then no instruction
instruction is
is necessary to effect
necessary to effect any
any such
such
Variation.
Variation.

51.4
51.4 Contractor to Carry
Contractor Carry Out Variations
Variations

((!)
1) The Contractor
The Contractor must
must give
give effect
effect and
and implement
implement all
all instructions
instructions giving
giving rise to
to Variations.
Variations.

51.5
51.5 Tracking of Variations
Tracking Variations

(!)
(1) The Engineer
EngiI1""1'_1]1~st_~signto ea_i:h Variation
must assign to each Variation aanmnberfor ea_se of
number for ease of tracking
tracking and monitQriJJ.g.
monitoring. This
designation of
designation of the
the Variation
Variation must
must be notified
notified to
to the
the Contractor.
Contractor.

(2) Upon so notified, the

Upon the Contractor
Contractor must
must follow
follow the
the same
same numbering
nmnbering system
system used
used and
and assigoed
assigned by the
the
Engineer in
Engineer in all his correspondence
correspondence and
and claims
claims submissions
submissions relating
relating to
to the Variation.
Variation.

52
52 VALUATION OF
VALUATION OF VARIATIONS
VARIATIONS

52.1 Valuation Rules

Valuation Rules

(I)
(1) following are
The following are applicable
applicable to all Variations
Variations instructed
instructed under
under Clause 51.
Clause 51.

(a)
(a) If Engineer considers
If the Engineer considers that
that the
the works
works of
ofa Variation are
a Variation are such
such that
that they
they are
are similar,
similar, and
are executed
are executed under similar conditions,
under similar conditions, to corresponding
corresponding items
items in the
the Bill
Bill of
of Quantities
Quantities for
Remeasured Works or
Remeasured or Schedule
Schedule ofof Rates
Rates for
for Lump
Lump Sum Items,
Items, then
then the rates
rates in those
those
items are applicable
applicable and must used to value
must be used value the
the works
works of
of the Variation.
Variation.

(b) If Clause 52.1(l)(a)

If the rule in Clause 52.l(l)(a) is not
not applicable,
applicable, then
then reasonable
reasonable rates
rates in
in the
the Bills
Bills of
of
Quantities are
Quantities are to
to be used
used as
as aa basis or
or guide
guide in aniving
arriving at rates of
of the
the works the
works for the
Variation.
Variation.

(c)
(c) If Engineer considers
If the Engineer considers that
that the rules
rules in
in both
both Clauses
Clauses 52.1
52.l(l)(a) and (b) are
(l)(a) and are not
not
applicable, he
applicable, must then
he must then fix
fix rates
rates which
which are appropriate, fair
are appropriate, fair and
and reasonable.
reasonable.

(2)
(2) If the
If the Contractor
Contractor considers
considers that
that the
the actual
actual executed
execnted quantity
quantity of
of any item in
in 1he Bill of
the Bill of Quantities
Quantities for
for
Remeasured Works
Remeasured Works isis such
such the rate
rate for
for that
that item is rendered
rendered unreasonable inapplicable, he
unreasonable or inapplicable, he may
may
by notice to the
notice to the Engineer
Engineer request
request the
the Engineer
Engineer to to fix aa rate which fair and reasonable
which is fair reasonable under
under
valuation rule in
valuation in Clause
Clause 52.1(l)(c).
52.l(l)(c). Within
Within 14 days
days of
of1he Engineer's receipt
the Engineer’s receipt of
of the
the Contractor’s
Contractor's
notice, the Engineer
notice, the Engineer must notify tire
must notify the Contractor
Contractor that
that he
he

(a) objects to
objects the Contractor’s
to the Contractor's request rates ifif he considers
request to fix rates considers that
that the
the valuation
valuation rule
rule in
either Clause
either Clause 52.1(l)(a)
52.l(l)(a) or
or (b) is applicable;
applicable; or
or

(b) agrees to
agrees fix rates under
to fix under the
the valuation
valuation rule
rule in Clause
Clause 52.
52.l(l)(c).
i(l)(c).

(3)
(3) The Contractor must
The Contractor include in
must include in his notice
notice in Clause
Clause 52.1(2)
52.1 (2) the
the following
following information:
information:

(a) his reasons

reasons for requiring new rates and
requiring new and his
his proposed
proposed revised rates including
revised rates including how he has
how he
arrived at
arrived at those
those revised
revised rates; and
rates; and

(b) the documents

the documents oror records
records which he
he intends
intends to
to maintain
maintain or keep
keep to
to substantiate
substantiate the
the
proposed
proposed revised rates.
revised rates.

(4) The rates

The rates in
in the
the Bill
Bill of
of Quantities
Quantities for
for Remeasured
Remeasured Works
Works or
or the
the Schedule
Schedule of
of Rates for Lump
Rates for Lump Sum
Sum
Items must
Items be used
must be used for
for the valuation
valuation of
of works omitted
omitted from
from the Contract.
Gontract.

52.2
52.2 Provisional Rates
Provisional Rates

(!)
(1) If the Engineer
If the Engineer requires
requires time
time to fix rates
rates in
in accordance
accordance with valuation rule
with the valuation rule in Clause
Clause 52.
52.l(l)(b)
1(1 )(b)
or (c),
or (c), he determine provisional
he may determine provisional rat~s
rates to en~le the Contractor
enable the Contractor to include
include the
the completed
completed
Variations in Interim
Variations Interim Payment
Payment Applications
Applications submitted
submitted under
under Clause
Clause 58.1.
58.1.

(2)
(2) These provisional
These rates may
provisional rates may be used in
in all Interim
Interim Payment
Payment Applications
Applications by the
the Contractor
Contractor until the
relevant
relevant rates are finalised
rates are finalised or
or fixed
~ed by the
the Engineer.
Engineer.

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7 For Civil Engineering
For Civil Works
Engineering Works
)
(3) The rates finalised or fixed
rates finalised provisional rates.
not be less than the provisional
fixed must not

52.3 Payment of Variations

of Variations

(1) The
The Contractor entitled to include
is entitled
Contractor is Variations or identifiable
completed Variations
include the completed in his
of them in
identifiable part of his
Payment Applications
Interim Payment
Interim submitted under
Applications submitted 58.1.
under Clause 58.1.

(2) is entitled
Contractor is
In doing so, the Contractor either the rates
entitled to use either accordance with the valuation
rates valued in accordance valuation
rules in
rules in Clause 52.1(1) or the provisional
Clause 52.1(1) determined in
provisional rates determined accordance with Clause 52.2.
in accordance

52.4
52.4 Rat'c'
Agreement on Rates
Agreement

(1) Despite the valuation

Despite valuation rules in Clause Engineer and
Clause 52.1, the Engineer Contractor may, in the Engineer's
and the Contractor Engineer’s
agree on rates to
discretion, agree
discretion, VariationS.
value Variations.
to be used to value

(2) attempting to agree

In attempting any rates to
agree on any Engineer may require
Variations, the Engineer
to value any Variations, Contractor
require the Contractor
quotations prior
to submit quotations any negotiation
to any
prior to to agree
negotiation to any rates to be used.
agree on any
1
j' 52.5
52.5 Valuation by Daywork
Daywork

(1) Despite the valuation

Despite Clause 52.1,
valuation rules in Clause Engineer may
52.1, the Engineer include in his instruction
may include for
instruction for
,-. Variations that the Variations
Variations that daywork basis.
on aa daywork
Variations must be valued on basis.
I
J used.
Schedule must be used,
Daywork Schedule
the Daywork
(2) In valuing
In valuing Variations daywork basis, the rates
Variations on aa daywork included in the
rates included
subject to
subject any terms
to any terms set in the Daywork
out in
set out Schedule.
Daywork Schedule.

[l (3) If the execution

If execution and completion of the Variations
completion of include materials
Variations include
Contractor must furnish to
Schedule, the Contractor
Daywork Schedule,
the Daywork
rates are not
materials whose rates included in
not included in
vouchers
Engineer such receipts and vouchers
to the Engineer
are necessary
which are
which to prove
necessary to actually incurred
amoUilts actually
prove the amounts Contractor must
Contractor. The Contractor
incurred by the Contractor. must

[1
obtain the approval
also obtain quotations before
of any quotations
approval of Variations which
materials for Variations
orders any materials
before he orders are to
which are
valued on aa daywork
be valued basis.
daywork basis.
J
52.6
52.6 Procedure for Daywork
Procedure for Claim
Daywork Claim

0 (1) The Contractor must,

The Contractor
to the Engineer
the Engineer
during the progress
mus~ during the Variations,
executing the
of executing
progress of deliver at
Variations, deliver each day
of each
at the end of

(a)
(a) an exact of the names, job
list of
exact list job classifications and the
classifications and actual hours
the actual of work
hours of work of workmen
of all workmen
the execution
involved in the
involved works for
of the works
execution of on that
Variations on
for the Variations day;
that day,

(b)
(b) an exact of the descriptions
exact list of of all materials
descriptions of materials and their quantities
and their incorporated into the
quantities incorporated
'[7_·,- for the
works for the Variations on that
Variations on that day; and
J (c)
(c) exact list
an exact Contractor's Constructional Plant
of the Contractor’s
list of Plant and Equipment (including
and Equipment of
(including names of
models and the rated capacity) which
the models which are deployed in the execution of the
and used in
deployed and

C (2)
(2) The lists
The
for the Variations
works for

be submitted
lists to be
their actual
and their
Variations and of works on that
hours of
actual hours

Clause 52.6(1)
Contractor under Clause
submitted by the Contractor 52.6(1) above
day.
that day.

submitted in
must be submitted
above must in
duplicate.
f
LJ
l (3)
(3) The Engineer must
The Engineer sign these
must sign are correct,
these lists submitted ifif they are or when they
correct, or subsequently
they are subsequently
agreed with
agreed with the Contractor copy of the signed
Contractor and aa copy will be given
lists will
signed lists Contractor.
given to the Contractor.

l
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(4)
(4) The Contractor is entitled
The Contractor
and Equipment
Plant and Equipment used
submitted under
submitted Clause 58.1.
under Clause
include aa priced
to include
entitled to statement of
priced statement
execution of
used in the execution
labours, materials
of labours,
Variations in
of any Variations
materials and Constructional
and the Constructional
Payment Applications
in Interim Payment Applications

u 53
(5) The priced statements
The priced
52.6(3), the corresponding
52.6(3),

PROCEDURE FOR
PROCEDURE CLAIMS
FOR CLAIMS
based on the signed
statements must be based
relevant terms stated
rates and any relevant
corresponding rates
Engineer under
returned by the Engineer
lists returned
signed lists
Schedule.
Daywork Schedule.
stated in the Daywork
Clause
under Clause

53.1
53.1 of Claim
Notice of
Notice Claim

(1) If the Contractor

If Contractor intends clause of these
Costs under any clause
intends to claim for Costs Conditions which
these Conditions expressly
which expressly
entitles
entitles him condition precedent
must as aa condition
him to do so, he must precedent to such claim give notice
such aa claim notice of to
intention to
of his intention
the Engineer.

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of Engineers,
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(2)
(2) The notice
The of claim
notice of claim must
must be served
served to
to the
the Engineer
Engineer as soon
soon as the
the Contractor can reasonably
Contractor can reasonably foresee
foresee
an event
event occurring
occurring which
which will give
give rise
rise to
to the
the claim
claim for
for Costs. The notice must be served not
not later
later
an
than 28 days after
than after the
the commencement
commencement of of the
the event
event giving
Costs. The
giving rise
rise to
to the
notice must
the claim.
claim. j
(3) The Contractor
The Contractor must
must include
include in his
his notice
notice of
of claim for
for Costs the following:
Costs the following:

(a)
(a) the clause
the clause of
of these
these Conditions
Conditions which
which entitles
entitles him the claim;
him to the claim;

(b)
(b) the details of
the of the circumstances
circmnstances which give
give rise
rise to the
the claim;
claim;

(c)
(c) the details
the of the records
details of records which
which the
the Contractor
Contractor intends to
to maintain to
to substantiate
substantiate his
entitlement to
entitlement to the claim; and

(d)
(d) the amount
the or e_s_tiDlllte_d
amount QI estimated amount of till<
amount of c!Jrim.
the claim.

(4)
(4) Upon the
Upon the receipt
receipt of
of the
the Contractor’s
Contractor's notice,
notice, the
the Engineer
Engineer must assign aa designation
must assign designation number
number to the
the
claim for the
claim the ease
ease of
of tracking andand monitoring.
monitoring. TheThe Contractor
Contractor must
must use
use and
and include
include such
such
designated number
designated all his correspondence
number in all correspondence and
and submissions
submissions relating
relating to
to the
the claim. ,'

(5)
(5) The Engineer
The Engineer must,
must, within
within 21 _days of
of the
the receipt of the
receipt of the Contractor's notice, inform
Contractor’s notice, inform the
the Contractor if
Contractor if
the Contractor
the Contractor is entitled
entitled to the
the claim
claim for Costs.
Costs.

53.2
53.2 Records Keeping
Records Keeping

(!)
(1) The Engineer
The Engineer may instruct
instruct the Contractor
Contractor to maintain
maintain any records
records that
that are
are not
not mentioned
mentioned by the
Contractor in his notice
Contractor notice of
ofclaim under Clause
claim under Clause 53.1(3)(c).
53.1(3)(c).

(2)
(2) maintenance of
The maintenance of these
these records
records instructed
instructed by the
the Engineer
Engineer must
must be at
at the
the Contractor’s
Contractor's expense.

(3)
(3) The mere
The mere fact of
not by
not by that
of the
that feet
the Engineer’s
fact alone
Engineer's instruction
alone suggest
to the Contractor
instruction to
suggest that
that the Contractor
Contractor to
Contractor is
is entitled
entitled to
maintain any additional
to maintain
to the
the claim.
additional records does
does
J
(4)
(4) The Contractor
The must pennit
Contractor must Engineer to
permit the Engineer to inspect
inspect the
the records
records so
so instructed to be maintained
instructed to maintained at
at any
time during
time during office
office hours
hours by the
the Engineer’s
Engineer's giving
giving prior
prior notice of the
notice of the intended
intended inspection.
inspection.

(5) The Contractor

The must make
Contractor must and deliver
make and deliver copies
copies of
of all the records
all the records maintained
maintained by the Contractor
Contractor to the
the
Engineer for
Engineer for the
the purposes
purposes of the claim ifif the
of the the Engineer
Engineer so
so instructs.
instructs.

53.3
53.3 Substantiation of
Substantiation of the
the Claim
Claim

(!)
(1) Within 30
Within 30 days
days of
of the
the completion
completion of
of the
the event
event giving
giving rise
rise to
to the
the claim,
claim, or
or such
such other
other longer period
period as
the Engineer
the Engineer may
may allow,
allow, the Contractor
Contractor must submit to
must submit to the
the Engineer
Engineer an
an account
account of
of the
the claim.

(2)
(2) The account
The account submitted
submitted byby the
the Contractor
Contractor must
must include
include all
all particulars and substantiations
particulars and substantiations which
which the
the
Contractor believes
Contractor believes will
will prove entitlement together
prove his entitlement together with aa summary
summary ofof the
the amount
amount claimed.
claimed.

(3)
(3) If however
If however the
the event
event giving
giving rise
rise to
to the
the claim
claim has aa continuing
continuing effect,
effect, this not on
this does not on that
that feet
fact alone
alone
preclude the
preclude the Contractor submitting to
Contractor from submitting to the
the Engineer
Engineer an
an account
account ofof the
the claim
claim provided thatthat this
this
account must
account must be considered as an
considered as an interim
interim account.
account. This
This interim
interim account
account must
must include
include all particulars
particulars
and substantiations
and substantiations which
which the
the Contractor
Contractpr believes will prove
believes will prove his
his entitlement
entitlement of
of the claim.

(4)
(4) The Contractor
The Contractor may send
send at intervals
intervals to
to be agreed
agreed with
with the Engineer
Engineer further interim
interim accounts
accounts giving
giving
all cases
in all cases the
the accumulated
accumulated amount
amount of of all the interim
interim accounts.
accounts.

(5)
(5) The Contractor must
The Contractor submit a final
must submit final account
account to the Engineer
Engineer 30
30 days
days after
after the
the completion
completion of
of all the
the
works relating
works relating to the claim
claim or
or the event
event giving
giving rise to the
the claim
claim stops
stops being operative.
being operative.

(6) The Contractor

The Contractor must state in all the accounts
must state accounts submitted
submitted the
the relevant
relevant claim
claim number designated
designated by the
the
Engineer and whether
Engineer and account is aa final
whether the account final or
or an interim
interim account.
accowit. ~

(7)
(7) The Engineer
The Engineer must,
must, within of receipt
within 28 days of receipt of
of any final accoun~ determine
final account, determine the
the amount
amount which the
Contractor entitled for the claim.
Contractor is entitled claim.

(8)
(8) The Engineer
The Engineer may also
also determine
detennine any
any provisional
provisional value
value of
of any interim
interim accounts
accounts submitted
submitted provided
provided
that the
that the Engineer approve a value
Engineer must not approve value less than
than the
the provisional
provisional value
value when
when he
he makes aa final
determination.
determination. ·

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For Civil
avil Engineering Works
Engineering Works

53.4
53.4 Payment of
Payment of the
the Claim
Claim

(!)
(1) The Contractor
The Contractor is entitled
entitled to include
include the
the accounts
accounts of
of the claim
claim (either
(either interim
interim or
or final)
final) in his Interim
Interim
Payment Applications
Payment Applications submitted
submitted under
under Clause
Clause 58.1.

53.5
53.5 Engineer's Authority
Engineer’s Authority

(1)
(1) The Engineer retains
The Engineer retains the power to detennine
(he power determine the amount
amount ofof the claims
claims even
even ififhe considers that
he considers that the
the
Contractor has
Contractor has not complied in full with
not complied with the
the provisions
provisions ofof this
this Clause.
Clause. The
The Engineer
Engineer may
may make
make aa
detennination with whatever
determination whatever information he has at the
information he the time
time of
of making
making the
the determination.
determination.

54 ASSIGNMENT AND
ASSIGNMENT AND SUB-CONTRACTING
SUB-CONTRACTING

54.I
54.1 Assignment
Assignment

(I)
(1) The Employer
The Employer oror the
the Contractor
Contractor cannot
cannot assign
assign the
the benefits or
or interests
interests of
of the
the Contract
Contract unless
unless the
the
assigning party requests
assigning party and receives
requests and receives written
written permission
permission from
from the
the other
other party to do so.
party to so.

(2)
(2) If permission
If requested by
permission is requested by one
one parly according to
party according to Clause
Clause 54.1(1), other party
54.1(1), the other parly must
must not
not
unreasonably withhold giving
unreasonably withhold giving the
the permission
permission unless there are
unless there are good
good reasons for him
reasons for to do so.
him to so.

54.2
54.2 Sub-Contracting
Sub-Contracting

(!)
(1) The Contractor
The Contractor must
must obtain
obtain the
the Engineer’s
Engineer's written
written approval
approval ififhe wants to sub-contract
he wants sub-contract identified
identified
parts of
parts of the
the Works.
Works.

(2)
(2) The Engineer may
Hie Engineer may request the Contractor
request the Contractor to provide details of
provide details of the
the proposed
proposed sub-contractors
sub-contractors
including their
including their experiences, technical competence,
experiences, technical competence, financial
financial standing
standing and
and other
other relevant information
relevant information
before he considers
before considers giving
giving approval
approval in Clause
Clause 54.2(1).
54.2(1).

(3)
(3) The Contractor
The Contractor does
does not need to
not need to obtain
obtain the
the approval of the
approval of the Engineer
Engineer ififhe engages labour-only
he engages labour-only sub-
sub-
contractors.
contractors.

(4)
(4) The Contractor
The Contractor remains
remains fully responsible
responsible for the
the works if the
works even if the Engineer
Engineer has given
given his approval
approval
for those
for those works
works to
to be carried
carri~d out
out by sub-contractors.
sub-contractors.

(5) The Contractor

The Contractor is similarly
similarly fully .responsible acts, neglects
responsible for all the acts, or defaults
neglects or defaults of
of his
his sub-
sub-
rr
I r.-
contractors.
contractors.
.i
(6)
(6) The Contractor
The Contractor must
must incorporate sub-contracts provisions
in all sub-contracts
incorporate in the effect
provisions to the effect that
that the
the sub-contracts
sub-contracts
are automatically terminated
are automatically terminated when the Contract
when flic Contract is terminated.
terminated.
l
I
I
55
55 LUMP SUM
LUMP SUM WORKS
WORKS AND
AND REMEASURED
REMEASURED WORKS
WORKS

., I
55.1
55.1 Works Included
Works Included in the Contract Sum
the Contract

j (!)
(1) "Lump Sum
“Lump Sum Works"
Works" means includes those
means and includes those works to be performed or goods
performed or goods and services
services to
to be
supplied which
supplied which are
are referred
referred to
to in the Schedule
m the Schedule of
of Prices
Prices for
for Lump
Lump Sum
Sum Items
Items and
and which
which are
are not
not
Remeasured Works.
Remeasured Works.

0 (2)
(2) "Remeasured Works”
“Remeasured
supplied which
supplied
Works" means
which are
and includes
means and
are referred
referred are
includes those
are described
those works
in die
described in
works to be
the Bills of
performed or
be performed
of Quantities
or goods
goods and
Quantities for Remeasured
and services
services to
Remeasured Works.
Works.
to be

(3)
(3) With the
With the exception
exception ofof the
the Bills
Bills of
of Quantities
Quantities for
for Remeasured
Remeasured Works, all information
Works, ail information and
and statements
statements
on any
on any quantities
quantities of
of works
works dodo not
not form
form part of the
part of the Contract.

u
55.2
552 Contract Sum and Rates
Contract Rates are
are All
All Inclusive
Inclusive

(1)
(1) The Contract
The Contract Sum, the
the rates the various
rates for the of Remeasured
various items of Remeasured Works and and the
the rates prices in
rates and prices in
the Schedule
the Schedule of
of Rates
Rates for
for Lump Sum
Sum Works
Works include
include all works,
works, materials
materials and
and expenditure
expenditure which
which are
indispensably necessary
indispensably necessary for
for the
the Contractor
Contractor to
to complete
complete file
the Works
Works described
described in or
or inferred
inferred from
from the
the
Contract.
Contract.

55.3
55.3 Remeasured Works
Remeasured Works

(I)
(1) The quantities set
The set out
out in
in the
the Bill of
of Quantities
Quantities for Remeasured
Remeasured Works
Works are
are estimated quantities only.
estimated quantities

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(2) The quantities indicated

The quantities indicated in the
the Bill
Bill of
of Quantities
Quantities for Remeasured
Remeasured Works
Works are
are not
not the
the actual
actual quantities
quantities
of Remeasured
of Works which
Remeasured Works which the
the Contractor
Contractor is required
required execute
execute and complete him to
complete for him to fulfil his
obligations under
obligations under the
the Contract
Contract in relation the Remeasured
relation to the Remeasured Works.
Works.

(3)
(3) The actual
Hie actual quantities
quantities of
of the
the Remeasured
Remeasured Works executed
executed by the
the Contractor, the value
Contractor, and the value of
of the
Remeasured Works,
Remeasured Works, will
will be
be measured, ascertained, determined
measured, ascertained, detennined and
and valued
valued in accordance
accordance with the
provisions of Clause
provisions of Clause 55.4.
55.4.

55.4
55.4 Method of Measurement
Method Measurement

(!)
(1) The method
The method of
of calculating
calculating the
the actual
actual quantity
quantity of
of Remeasured
Remeasured Work
Work executed and completed
executed and completed by
by the
Contractor must
Contractor must be carried
carried out
out in accordance with
in accordance with the
the Method
Method of
of Measurement
Measurement

(2) The Method of

The Meth<>d Measurement forms
<>flvleasllfem_ent forms part of Bills of
of the Bills Quantities.
of_Quantities.

(3)
(3) Except where the
Except the Engineer
Engineer has
bas instructed
instructed under
under Clause
Clause 55.4(4),
55.4(4), all
all Remeasured
Remeasured Works
Works must
must be
measured the Drawings.
measured from the Drawings.

(4)
(4) If the Engineer
If Engineer is
is of
of the
the opinion
opinion that
that physical
physical measurement is necessary,
measurement is necessary, the
the physical measurements
physical measurements
must then
must then be jointly carried out
jointly carried out by the
the Engineer
Engineer and
and the Contractor.
Contractor.

(5) The Engineer

The Engineer must
must give the Contractor
give the Contractor reasonable
reasonable notice
notice to be present if he
present if he requires
requires physical
measurement of the
measurement of the Remeasured
Remeasured Works.
Works.

(6) the Contractor

If the
If Contractor fails to be present the appointed
present at the appointed time for
for physical
physical measurement
measurement ofof the
the
Remeasured Works
Remeasured Works despite
despite notice having been
notice having been given to him under
under Clause
Clause 55.4(5),
55.4(5), the Contractor
Contractor
must then
must then accept
accept whatever
whatever measurement
measurement results obtained
obtained by the
the Engineer.
Engineer.

55.5
55.5 Variation of
Variation Rates
of Rates

(I)
(1) Subject to
Subject to Clause 52.1(2),
52.1(2), the
the rates
rates in
in the
the Bill
Bill of
of Quantities
Quantities for Remeasured
Remeasured Works
Works must notnot be
increased or
increased or decreased
decreased in any
any way duedue to
to the
the actual
actual executed
executed quantities
quantitieS of
of work being greater
work being greater or
or less
than the
than the estimated
estimated quantities
quantities shown
shown in in the
the Bill
Bill of
of Quantities
Quantities for Remeasured
Remeasured Works.
Works.

(2) Clause
Clause 55.5(1) will
will apply
apply even
even ifif the
the actual
actual executed
executed quantities
quantities of
of works
works are
are greater
greater or
or less than
than the
estimated quantities
estimated quantities shown
shovm in the the Bill
Bill of
of Quantities
Quantities for
for Remeasured
Remeasured Works
Works as aa result
result of
of an
instruction issued
instruction issued under Clause 51.1.
under Clause 51.1.

(3) Any rate

rate revision
revision as aa result
result of
of an
an instruction
instruction issued
issued under Clause 51.1
under Clause 51.1 will be carried out
be carried out in
accordance with
accordance with the
the provisions of Clause
provisions of Clause 52.1
52.1..

56
56 PRIME COST
PRIME COST AND
AND PROVISIONAL
PROVISIONAL SUMS
SUMS

56.1
56.1 Prime Cost
Prime Cost Sum
Sum and Provisional
Provisional Sum
Sum

(I)
(1) "Prime Cost
“Prime Cost Sum”
Sum" means
means a sum
sum provided in the Schedule
provided in Schedule of
of Prime
Prime Cost
Cost and
and Provisional
Provisional Sums of
of
the Bills
the Bills of
of Quantities
Quantities for
for works
works to
to be executed or materials
be executed and services
materials and services to be supplied
supplied by a
Nominated Sub-Contractor.
Nominated Sub-Contractor.

(2)
(2) "Provisional Sum”
“Provisional Sum" means
means aa sum
sum provided
provided in thethe Schedule
Schedule ofof Prime
Prime Cost
Cost and Provisional
Provisional Sums of of
the Bills
the Bills of
of Quantities
Quantities for
for execution
execution ofof works
works or supply
supply of
of materials
materials and
and services
services which
which are
are at the
at the
of the Tender
time of Tender not designed, not
not designed, confirmed to
not confirmed to be
be required,
required, not foreseen or
not foreseen or is in such
such aa way that
the Contractor
the Contractor was not
not able to price it prior
able to prior to the submission
to the submission of
of the
the Tender.
Tender.

56.2
56.2 Operation of the
Operation Prime Cost
the Prime Cost Sums
Sums

(I)
(1) In respect
In respect of
of every
every Prime
Prime Cost
Cost Sum
Sum in the
the Schedule
Schedule of
of Prime
Prime Cost
Cost and
and Provisional
Provisional Sums
Sums in the Bills
Bills
of Quantities,
of Quantities, the
the Engineer
Engineer may instruct
instruct the
the Contractor
Contractor to enter
enter into
into aa sub-contractor
sub-contractor nominated
nominated by
the Employer.
the Employer. ·

(2)
(2) The sub-contractor so
The sub-contractor so nominated
nominated by the Employer
by the Employer under
under Clause 56.2(1) is the Nominated
Clause 56.2(1) Nominated Sub-
Contractor and the
contractor the contract
contract entered
entered is the
the Nominated Sub-Contract for
Nominated Sub-Contract for the purposes of the
purposes of the Contract.
Contract.

(3)
(3) Nominated Sub-Contracts
All Nominated Sub-Contracts must
must be modelled and based
be modelled based on
on the
the Form
Form of
of Nominated
Nominated Sub-
Sub-
Contracts published by
Contracts published The Institution
by The Institution of
of Engineers,
Engineers, Malaysia.
Malaysia.

The Institution
© The of Engineers,
Institution of Engineers, Page48
Page of70
48 of 70
Malaysia
Malaysia
 IEM Form
Form of Contract
of Contract IEM.CE20II
IEM.CE 2011
•~-.'.· .
.•.
Civil Engineering
For Civil Works
Engineering Works

[f
: --,:
(4)
(4) The following principles
The following
Nominated
apply to the Prime
principles apply
Sub-Contracts:
Nominated Sub-Contracts:
Cost Sums,
Prime Cost Sub-Contractors and the
Nominated Sub-Contractors
Sums, the Nominated

(a) the Engineer

Engineer must instruction to omit the relevant
issue instruction
must issue Cost Sum
Prime Cost
relevant Prime (together with
Sum (together
any
any associated profit and attendance
associated profit which the Contractor
attendance which Contractor is entitled
entitled to) from the
Contract;
Contract;

(b) the
the omitted Prime Cost Sum
Prime Cost amount due to the Nominated Sub-
Smn will be substituted by the amount
Contractor under the Nominated
Contractor Sub-Contract; and
Nominated Sub-Contract;

(c)
(c) the corresponding
corresponding amount
amount due to the Contractor for profit
Contractor for attendance will also have to
profit and attendance
be included.

(5)
(5) The
The Engineer may, with the consent
Engineer may, the Contractor
of the
consent of agreement with regard to
subject to any agreement
Contractor and subject
rates Contractor himself
instruct the Contractor
rates and prices, instruct himself in of the Nominated
in lieu of Nominated Sub-Contractor execute
Sub-Contractor to execute
works
works or supply
supply of materials and services
of materials in respect
services in of aa Prime
respect of Prime Cost Sum. the
this case, the
Sum. In this
attendance.
Contractor will not be entitled to any profit and attendance.
Contractor

(6)
(6) In the case of Clause
case of 56.2(5), the value
Clause 56.2(5), of the works
value of works executed must be determined
executed must in
measured in
determined and measured
accordance the provisions
accordance with the provisions of Clause 55.
Clause 51 and Clause
of Clause

(7) The Engineer may in

Engineer may in his discretion
discretion allow the the Contractor submit his tender for
Contractor to submit for the
the works
comprised
comprised inin any Prime
Prime Cost Sums. If
Cost Sums. If the tender for the
Contractor's tender
the Contractor’s of any Prime
the works of Sum
Cost Sum
Prime Cost
is accepted, will not
Contractor will
accepted, the Contractor not then any profit and attendance
entitled to any
then be entitled attendance charges he
which he
charges which
would otherwise
would if aa Nominated
entitled if
otherwise be entitled Sub-Contract is
Nominated Sub-Contract awarded.
is awarded.

56.3 of the Provisional

Operation of Provisional Sums

(1)
(l) In respect of every
respect of Provisional Sum in the
every Provisional Schedule of
the Schedule Cost and Provisional
Prime Cost
of Prime Provisional Sums the
Smos in the
Bills of Quantities, the
of Quantities, the Engineer instruct for
Engineer may instruct expenditure.
for its expenditure.

(2) When the Engineer instruction for the expenditure

Engineer issues an instruction of the Provisional
expenditure of Sum, the works
Provisional Sum,
executed
executed must per the provisions
must be valued as per provisions of Clause 52.1
of Clause Contractor must be paid
52.1 and the Contractor paid
7 accordingly.
accordingly.
I i
_J
(3) The instruction
The instruction issued expenditure of
issued for the expenditure Provisional Sum
of Provisional ifit
like manner as if
Sum is treated in the like it is
issued under
issued Clause 51. The
under Clause instruction takes
The instruction takes effect Sum and
Provisional Sum
effect in omitting the Provisional and
-r substituting itjt with
substituting Variation whose
with aa Variation value is to be determined
whose value 52.
with Clause 52.
accordance with
determined in accordance
I' 'i,·
! _,i -.
56.4
56.4 Conversion of Provisional
Conversion of Prime Cost
Provisional Sum to Prime Cost Sum

(1)
(l) The Engineer
The Engineer may if if he thinks fit and proper
thinks fit instruct that
proper instruct that the included in the
Provisional Sum included
the Provisional
Schedule
Schedule of of Prime Provisional Sums
Cost and Provisional
Prime Cost in the Bills
Sums in Bills of Quantities be treated
of Quantities if
operated as if
treated and operated
Prime Cost
it is aa Prime Sum.
Cost Sum.

(2) If the Engineer

If Engineer so 56.4(1), the provisions
Clause 56.4(1),
so instructs in Clause of Clause
provisions of apply.
accordingly apply.
Clause 56.2 will accordingly

57 NOMINATED SUB-CONTRACTORS
NOMINATED SUB-CONTRACTORS

57.1
57.1 for Nomination
Procedure for
Procedure

(I)
(1) The Employer
The Employer oror the his behalf
Engineer on his
the Engineer may first obtain
behalf may tenders or quotations
obtain tenders from various
quotations from various
contractors for
contractors works relating
of works
execution of
for the execution relating to the Prime
to the Prime Cost Sum included in the Schedule of
Cost Sum of
Prime Cost Sums in the
Provisional Sums
Cost and Provisional Bills of
the Bills Quantities.
of Quantities.

(2)
(2) Upon the selection
Upon selection of
of the contractor either from the
contractor either exercise in Clause
the exercise otherwise, the
57.l(l) or otherwise,
Clause 57.1(1)
Engineer
Engineer will then
then instruct
instruct the
the Contractor
Contractor to enter contract (“Nominated
into a contract
enter into with
Sub-Contract'') with
(''Nominated Sub-Contract”)
contractor (“Nominated
selected contractor
the selected Sub-Contractor'').
(''Nominated Sub-Contractor”).

(3)
(3) The Sub-Contract may be based on the IEM
Nominated Sub-Contract
The Nominated IEM Form of Nominated
Forro of Nominated Sub-Contract for
Sub-Contract for
Engineering Works to be published
Engineering Works of Engineers,
Institution of
published by The Institution Malaysia.
Engineers, Malaysia.

(4)
(4) The Contractor enter into the Nominated
Contractor is not required to enter Nominated Sub-Contract with the Nominated
Sub-Contract with Nominated Sub-
Contractor
Contractor if
if the Nominated Sub-Contractor
the Nominated refuses the Nominated
Sub-Contractor refuses Nominated Sub-Contract based on the
Sub-Contract to be based
IEM
IEM Form
Form of Nominated Sub-Contract
ofNominated Sub-Contract for Engineering Works to be published
Engineering Works The Institution
published by The of
Institution of
Engineers, Malaysia. The Contractor
Engineers, Malaysia. report any such refusal to the Engineer.
must report
Contractor must Engineer.

The Institution of
© The Engineers,
of Engineers, Page49 of70
Page 49 of 70
Malaysia
Malaysia
IEM Form of
IEM Form Contract
ofContract IEM.CE2011
IEM. CE 2011
Civil Engineering
For Civil Works
Engineering Works

57:i
572 Objections to Nomination
Objections Nomination

(1)
(1) The Contractor
The Contractor is not required to enter
not required enter into
into aa Nominated Sub-Contract if
Nominated Sub-Contract ifhe
he has made reasonable
has made reasonable
objections on
objections on the
the following grounds which the
grounds which the Contractor
Contractor considers
considers that, having
having regard
regard to
to the
nature and extent
nature and extent of
of the
the works required,
required,

(a)
(a) Nominated Sub-Contractor
the Nominated Sub-Contractor is in poor financial standing
poor financial standing or solvency;
solvency;

(b)
(b) the Nominated Sub-Contractor lacks
Nominated Sub-Contractor lacks the
the required
required technical
technical competence;
competence; or

(c)
(c) the Nominated
the Sub-Contractor lacks the necessary
Nominated Sub-Contractor necessary plant,
plant, machinery
machinery and
and specialist
specialist j
manpower.
manpower.

(2)
(2) The;_ Engineer
The Engitleer__ may nevertheles~_ iilstruct the Contractor
nevertheless instruct C()ntra~_or _to enter_ into a Nominat_ed
to enter Sub-:Contract
Nominated Sub-Contract
despite reasonable
despite reasonable objections
objections iiave
have been raised by
been raised by the
i:he Contractor
Contractor llll<ler-Clause 57.2(1). .
under Clause 57.2(1).

(3)
(3) If the Engineer
If the Engineer so instructs under
under Clause
Clause 57.2(2),
57 .2(2), the
the Employer
Employer must indemnify die
must then indemnify the Contractor
Contractor
against any
against any loss,
loss, expense,
expense, damages
damages or
or claims
claims incurred by the
incurred by the Contractor
Contractor on
on the
the non-performance
non-performance of of
the Nominated Sub-Contractor due to the
Nominated Sub-Contractor the ground
ground or or grounds
grmmds on
on which the
the Contractor
Contractor has
has raised
raised
objections.
objections.

(4)
(4) As an
As an alternative
alternative remedy
remedy to the
the Contractor
Contractor under
under Clause
Clause 57.2(3),
57 .2(3),

(a)
(a) Engineer must
the Engineer must take
take any
any delay
delay into
into consideration
consideration in determining
determining any
any extended
extended Date
Date for
Completion which
Completion which the
the Contractor
Contractor may
may be entitled under Clause
entitled under Clause 44; and
44; and 7

(b)
(b) Engineer must
the Engineer must certify
certify the additional
additional Costs
Costs in accordance
accordance with
with the
the provisions of Clause
provisions of Clause
53.
53.

(5)
(5) The Contractor
The Contractor is not allowed
allowed to
to make any objections
make any objections against
against any Nominated Sub-Contractor ifif
Nominated Sub-Contractor

(a)
(a) the Nominated
the Sub-Contractor is named
Nominated Sub-Contractor any of
named in any of the
the documents
documents comprising
comprising the
the Tender;
Tender;
or

(b)
(b) the Nominated
the Nominated Sub-Contractor
Sub-Contractor is among
among thethe contractors
contractors agreed
agreed between the Employer
between the Employer or
or
the Engineer
the Engineer and
and the
the Contractor
Contractor before the call
before the call for tenders
tenders under
under Clause
Clause 57.1(1).
57.1 (I).

(6)
(6) the Engineer
If the
If Engineer considers
considers that
that the
the Contractor
Contractor has
has raised
raised valid
valid and
and reasonable
reasonable objections
objections under
under
Clause 57.2(1),
Clause 57.2(1), then
then the Engineer
Engineer may
may do any
any of
of the
the following:
following:

(a)
(a) nominate an
nominate an alternative
alternative Nominated Sub-Contractor;
Nominated Sub-Contractor;

(b)
(b) invoke the
invoke the operation
operation of
of Clause
Clause 56.2(5);
56.2(5); or

(c)
(c) where possible
where and practical,
possible and omit the Prime
practical, omit Prime Cost
Cost Sum from the
the Contract.
Contract.

(7)
(7) If the Engineer
If the Engineer has chosen either
has chosen either of
of the
the options
options m
in Clause
Clause 57.2(6)(a)
57.2(6)(a) or (b),
(b), then

(a)
(a) Engineer must
the Engineer take the
must take the delay
delay into
into consideration
consideration in determining any extended
in determining extended Date
Date for
for
Completion the Contractor
Completion which the Contractor may
may be
be entitled
entitled under
under Clause
Clause 44; and
and

(b)
(b) the Engineer
the Engineer must certify the additional
must certify additional Costs
Costs in
in accordance with the
accordance with the provisions
provisions of
of Clause
Clause
53.

57.3
573 Payment to Nominated
Payment Nominated Sub-Contractors
Sub-Contractors

(I)
(1) The Contractor
The Contractor must
must include
include the
the amounts
amounts claimed
claimed by
by the
the Nominated Sub-Contractor in respect
Nominated Sub-Contractor respect of
of
any works executed
any works executed and completed
completed or
or materials
materials and services
services supplied
supplied by the
the Nominated Sub-
Nominated Sub-
Contractor in the
contractor the Interim Payment Application
futerim Payment Application submitted
submitted under
under Clause
Clause 58.1.
58.1.

(2)
(2) In respect
In respect of
of each
each of
of the
the Interim
Interim Payment
Payment Application
Application which
which includes
includes the
the amounts
amounts claimed
claimed by
by the
the
Nominated Sub-Contractor, the
Nominated Sub-Contractor, the Engineer
Engineer must
must issue
issue aa certificate
certificate separately
separately the amount
amount duedue to each
each
of the
of the Nominated Sub-Contractor.' This
Nominated Sub-Contractor? This certificate
certificate will
will be
be known and referred
referred to in this Contract
Contract as
the NSC
the NSC Payment
Payment Certificate.
Certificate. ·

(3) The Engineer must-issue

The Engineer must-issue the
the NSC Payment Certificate
NSC Payment Certificate to
to the
the relevant
relevant Nominated
Nominated Sub-Contractor
Sub-Contractor
with aa copy
with copy to the
the Employer
Employer and
and the
the Contractor.
Contractor.

© The
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Engineers, Page 50 of
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Malaysia
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 /EM Form of
lEMForm of Contract
Contract IEM.CE 2011
IEM.CE2011
For Civil Engineering
For Civil Works
Engineering Works

(4) The Engineer

The Engineer must issue the relevant
must issue relevant NSC Payment Certificate
NSC Payment Certificate at
at the
the same
same time
time he issues
issues the
the
Contractor's Interim
Contractor’s Interim Payment
Payment Certificate.
Certificate.

(5) The Contractor

The Contractor must
must pay
pay to
to the Nominated
Nominated Sub-Contractor
Sub-Contractor the
the amount
amount certified
certified on
on the
the NSC
NSC
Certificate within
Payment Certificate within the
the period
period for
for honouring
honouring NSC
NSC Payment
Payment Certificate
Certificate stated
stated in
in the
the
Nominated Sub-Contract
Nominated Sub-Contract

(6)
(6) The Contractor
The Contractor is entitled
entitled to set-off
set-off or
or deduct
deduct from from any
any amounts
amounts due to to the
the Nominated
Nominated Sub-
I
Contractors on
contractors on any NSC Payment Certificates
NSC Payment Certificates ififthere are express
there are express provisions the Nominated
provisions in the Nominated Sub-
Contractor allowing
Contractor allowing him
him toto do so.

(7) Before issuing

Before issuing each Interim Payment
each Interim Payment Certificate
Certificate under
under Clause
Clause 58.2
58.2 and
and the
the Final
Final Certificate
Certificate under
under
Clause 592,
Clause 59.2, the
the Engineer entitled to
Engineer is entitled instruct the Contractor
to instruct Contractor to
to show
show proof that the payments
proof that payments due
on the previous NSC
the previous Payment Certificates
NSC Payment Certificates have
have been
been paid to the
paid to the various
various Nominated Sub-
Nominated Suh-
Contractors; -
Contractors.

(8)
(8) If
If the Contractor
Contractor has
has not
not paid
paid to the Nominated
to the Sub-Contractor on
Nominated Sub-Contractor on the
the previous NSC Payment
previous NSC Payment
Certificates, he
Certificates, he may nevertheless explain
may nevertheless explain to
to the
the Engineer
Engineer m writing:
in writing:

(a)
(a) that
that he
he has reasonable
reasonable cause
cause for withholding
withholding or refusing
refusing to make
make such payment; and
such payment; and
7
r (b)
(b) he
he has in writing
writing informed
informed the Nominated
Nominated Sub-Contractor
Sub-Contractor of
of such
such withholding
withholding or
or refusal.
refusal.
L
_J
(9)
(9) If the Contractor
If the Contractor has
has not
not given
given any proof
proof after
after he
he has
has been so instructed
been so instructed by the Engineer
by the Engineer under
under
57.3(7), or the
Clause 57,3(7), the Engineer
Engineer considers
considers that the
the Contractor
Contractor has no reasonable cause for
reasonable cause for

l-_ ... '

withholding
withholding or
given
given under
copy of
copy of such
or refusing
refusing to make payment
under Clause
Clause 57.3(8),
such notice
notice given
payment to
57.3(8), the Engineer
to the Contractor.
given to Contractor.
the Nominated
to the
Engineer may notify the
Sub-Contractor despite
Nominated Sub-Contractor
may notify the Employer
despite the
Employer accordingly
accordingly in
the explanation
explanation
in writing
writing with
with a

(10)
(10) Upon receipt
Upon receipt of
of the
the Engineer's notice under
Engineer’s notice under Clause
Clause 57.3(9),
57.3(9), and
and before making payment
before making payment onon any
any
Interim Payment
Interim Payment Certificate,
Certificate, the
the Employer
Employer is entitled
entitled (but
(but is not
not under
under an
an obligation
obligation to do so) to
to do to
make payments
make payments directly
directly to
to the
the Nominated Sub-Contractor the
Nominated Sub-Contractor the amounts
amounts which
which remain
remain not
not paid
paid by
the Contractor.
the Contractor.
'l
I I
I_J (11) The amounts
The amounts so so paid directly to
paid directly to the Nominated
Nominated Sub-Contractor
Sub-Contractor under
under Clause
Clause 57.3(10)
57.3(10) by
by the
the
Employer are
Employer are to be deducted from
be deducted from any
any payment or to
payment due or to become
become due from
from the
the Employer
Employer to
to the
the
Contractor.
Contractor.
7
Ii
.__J (12)
(12) The
The decision
decision by the
the Employer
Employer to to effect
effect direct payment to
direct payment to aa Nominated
Nominated Sub-Contractor
Sub-Contractor does not on
does not on
that fact
that fact alone
alone gives
gives rise
rise to
to any
any contract
contract between the Employer
between the Employer and
and the
the Nominated Sub-Contractor.
Nominated Sub-Contractor.
,-1
I. 57.4
57.4 Defaults of
Defaults of Nominated
Nominated Sub-Contractor
Sub-Contractor
__J
(1) If an
If an event
event arises
arises and
and the
the Contractor
Contractor is of
of the
the opinion
opinion that
that the
the event
event justifies the termination
justifies the termination of
of the
the
Nominated Sub-Contract, he
Nominated Sub-Contract, he must
must before starting any
before starting any procedure
procedure to
to terminate the Nominated
terminate the Nominated Sub-
11 )
Contract notify the
Contract the Engineer
Engineer accordingly
accordingly in
in writing.
writing.

(2)
(2) The Contractor
The Contractor must state in his written
must state written notice to the Engineer
notice to Engineer his
his justification for intending
justification for intending to
to
terminate the
terminate the Nominated Sub-Contract.
Nominated Sub-Contract
7
J (3)
(3) If the Engineer
If the Engineer agrees
contract, he must
Contract,
agrees with
with the
the Contractor
with despatch
must with
Contractor on
despatch inform
inform the
on his intended
the Contractor
intended termination
Contractor in writing
termination of
writing of
of the
of his consent
the Nominated
Nominated Sub-
consent to such termination.
termination.

(4) With the

With the consent
consent from the
the Engineer
Engineer given
given under
under Clause
Clause 57.4(3),
57.4(3), the
the Contractor
Contractor may
may then
then evoke
evoke the
the
termination provision
termination provision in the Nominated
in the Suh:·Contract.
Nominated Sub-Contract.

(5) After the

After the Nominated Sub-Contract has been terminated,
Nominated Sub-Contract terminated, the
the Contractor
Contractor may
may proceed
proceed to complete the
to complete the
' works of
works of the
the Nominated Sub-Contract himself
Nominated Sub-Contract himself: Alternatively,
Alternatively, the
the Contractor
Contractor may request
request the
the
j Engineer to
Engineer to make another nomination.
make another nomination.

rUJ· 1_-__ ·-
(6) In any
In any such
such termination,
the Nominated
the
termination, the
the Contractor
Contractor will
Sub-Contract which
Nominated Sub-Contract
will only
only be
be entitled
not completed
which are not
paid the
entitled to be paid
completed together
together with
the amount
amount of
with any profit
of the
the works in
works in
profit and attendance
attendance
charges if
charges ifhe decides to
he decides to complete
complete those
those works himself.
himself.

(7)
(7) The Contractor
The Contractor must
must take
take all necessary
necessary steps
steps and
and actions
actions available
available to him toto recover
recover the
Contractor's entitlement
Contractor’s entitlement under the Nominated
under the Sub-Contract including
Nominated Sub-Contract including any
any performance
performance security
security
provided.
provided.

The Institution
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Civil Engineering
For Civil
For Works
Engineering Works

(8)
(8) any termination
Upon any
Upon Nominated Sub-Contract
of the Nominated
tennination of which the Engineer
Sub-Contract which Engineer has given his consent,
has given

(a) Engineer must take

the Engineer consideration in detennining
delay into consideration
take the delay any extended Date for
determining any
Completion to which
Completion Contractor may be entitled
which the Contractor Clause 44; and
under Clause
entitled under

(b)
(b) Engineer must
the Engineer certify the additional
must certify Costs in
additional Costs with the provisions
accordance with
in accordance provisions of Clause
of Clause
53.
53.

57.5
57.5 Contractor's Responsibility
Contractor’s Responsibility

(I)
(1) The
The Contractor to the Employer
responsible to
Contractor is responsible for the works
Employer for carried out
works carried and the services and the
out and l
_.;
supplied by the Nominated
material supplied
material Sub-Contractors in the same
Nominated Sub-Contractors ifhe
same way as if himself has carried
he himself
out the works and supplied
works and and materials.
services,and
supplied the services materials.

58 INTERIM AND PAYMENT

CER1'1FICATES AND
INTERIM PAYMENT CERTIFICATES PAYMENT

58.1
58.1 Contractor’s Payment Applications
Interim Payment
Contractor's Interim Applications

(1) At intervals fixed in the

regular intervals
At regular Appendix to these
the Appendix these Conditions, submit to the
Contractor may submit
the Contractor
Conditions, the J
Engineer the Contractor’s
Engineer Interim Payment
Contractor's Interim Application.
Payment Application.

(2) The Engineer may decide

The Engineer the date
decide the which all
before which
on or before
date on Works properly
all Works completed by the
properly completed
Contractor can
Contractor can be included Payment Application.
Interim Payment
included in any Interim This date will be known and
Application. This
referred
referred to Contract as the Valuation
to in the Contract Valuation Date.

(3) The may prescribe

Engineer may
The Engineer format and manner
prescribe the format for( the submission
maimer for Interim Payment
of the Interim
submission of
Applications.
Applications.

(4) The Contractor must include where

The Contractor applicable in the Interim
where applicable Applications the following:
Payment Applications
Interim Payment -1
(a)
(a) cumulative of all Works
values of
cumulative values completed up to the Valuation
Works completed Date;
Valuation Date;

(b) subject to Clause 39.2(4), the percentage

Clause 39.2(4), (stated in the Appendix
percentage (stated these Conditions) in
Appendix to these
respect of the value of
respect of materials which
of unfixed materials the Contractor
which the delivered to the Site
Contractor has delivered
which are
are intended solely for incorporation
intended solely Works;
the Works;
incorporation into the

(c)
(c) the cumulative values of of all completed Variations which have
completed Variations valued by the
have been valued
Engineer (including
Engineer (including those provisional rates
which provisional
those for which have been determined) and any
rates have
Variations which
Variations Engineer has instructed
which the Engineer be valued
instructed to be Daywork ;
valued by Daywork

(d)
(d) claims for Costs
any claims Contractor considers
which the Contractor
Costs which himself to
considers himself the
to be entitled under the
and
Contract; and
Contract;
l

(e)
(e) amounts due to any Nominated
cmnulative amounts
the cumulative Nominated Sub-Contractors together with any profit
Sub-Contractors together
charges which
attendance charges
and attendance which the Contractor entitled.
Contractor is entitled.

(5) respeci to Clause 58.1(4)(a),

With respect Contractor must
the Contractor
58.1(4)(a), the must include all substantiations including but not
substaotiations including not
limiting to
limiting to measurement sheets, computations,
measurement sheets, sketches and other
quantities, sketches
computations, quantities, information
other relevant information
for all
for included in
items included
all items Applications. The
Payment Applications.
in the Interim Payment items must
The items correspond to the items
must correspond
in the Schedule
Schedule of for Lmnp
Prices for
of Prices Lump Sum Works and Bill of
Smn Works for Remeasured
Quantities for
of Quantities Remeasured Works.

(6) With respect

With Clause 58.1(4)(b),
respect to Clause Contractor must
58.1(4)(b), the Contractor include in the Interim
must not include Payment
Interim Payment
Applications any materials
Applications materials which
which are prematurely delivered to
prematnrely delivered Site.
to the Site.

58.2
58.2 Interim Certificates
Payment Certificates
Interim Payment

(1)
(I) The
The Engineer Interim Payment
issue an Interim
Engineer must issue Certificate within
Payment Certificate within 21 of receiving
2 I days of receiving the
corresponding Contractor’s
corresponding Payment Application
Contractor's Interim Payment Application irrespective whether the
irrespective whether Engineer agrees
the Engineer
or stated in
disagrees with the amounts stated
or disagrees Cofl~ctor's Interim
in the Contractor’s Payment Application.
lnterini Payment Application.

(2)
(2) To each of
To each amounts valued
of the amounts by the Contractor
valued by Interim Payment
Contractor in the Interim Application, the Engineer
Payment Application, Engineer
the amounts
must certify the which in his
amounts which opinion the Contractor
his opinion entitled.
Contractor is entitled.

(3)
(3) Engineer must certify on
The Engineer on the face of Payment Certificate
Interim Payment
of the Interim deductions from the
Certificate deductions
cumulative amounts
cumulative certified the following:
amounts certified

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i
(a) the which the Employer
cumulative amount which
the cumulative retain, thls
entitled to retain,
Employer is entitled this amount is called in
is called
these Conditions the Retention
these Conditions Monies; and
Retention Monies;

(b) cumulative amount

the cumulative certified in the preceding
amount certified Interim PPayment
preceding Interim Certificate.
ayment Certificate.

(4)
(4) Interim Payment Certificates
All Interim Certificates must be given serial number
given a serial number for consistency of reference.
consistency of reference.

(5) The Engineer must

The Engineer the same time
at the
issue at
must issue Contractor one copy
time to the Employer and the Contractor each of
copy each of all
Interim
Interim Payment Certificates.
Payment Certificates.

58.3 of Honouring
Period of Certificates
Honouring Certificates

(I)
(1) The Employer
The pay to the Contractor
must pay
Employer must Interim Payment Certificate
amount due on Interim
Contractor the amount in full on
Certificate in on
or before
or the Period
of the
before the end of Period of Certificate stated
Honouring Certificate
of Honouring Appendix.
stated in the Appendix.

(2) The Employer

Employer can set-off or deduct
can only set-off Contractor on
deduct from the payments due to the Contractor Interim
on any Interim
Payment Certificates when there
Certificates when there are express Conditions which
provisions in these Conditions
express provisions which allow the
allow the
so.
Employer to do so.
7 Employer

-"' (3) Employer must give

The Employer and the clause
details and
give full details relies upon when
reference which he relies
clause reference intends
when he intends
or deduct
set-off or
to set-off payment due to the Contractor
deduct any payment Interim Payment
Contractor on any Interim Certificate.
Payment Certificate.
7 (4)
(4) If
If the Employer Contractor according
Employer fails to pay the Contractor 58.3(1), he
Clause 58.3(1),
according to Clause then pay to the
he must then
J
Contractor additional amount together
Contractor an additional amount certified
together with the amount Interim Payment
certified on the Interim Payment
Certificate.
Certificate.
7
r._,-: (5) The amount in Clause 58.3(4)
additional amount
The additional calculated in
58.3(4) is calculated of simple interest
in the form of is based
interest and is on
based on
,I
the rate stated the Appendix.
stated in the Appendix.

7 (6)
(6) The Contractor's right
The Contractor’s to be paid
right to additional amounts
paid additional interests for late payment
amounts as interests payment of certified
of any certified
u sums must not be taken
sums must
Conditions.
these Conditions.
these
foregoing his
Contractor foregoing
taken as the Contractor rights under Clause
his rights 58.4 or Clause
Clause 58.4 of
62 of
Clause 62

58.4
58.4 Suspension of Works
Suspension of Works if no Payment
ifno

(!)
(1) If
If the Employer Contractor the
does not pay the Contractor
Employer does amount certified
the full amount on any Interim
certified on Payment
Interim Payment
Certificate thls non-payment
and this
Certificate and non-payment continues end of
after the end
continues for 14 days after the Period
of the Honouring
for Honouring
Period for
Contractor may
Certificate, the Contractor
Certificate, serve a written
may then serve notice to the Employer with
written notice copy to the
with aa copy
Engineer
Engineer expressing intention to suspend
expressing his intention the execution
suspend the of the Works.
execution of

(2) If the Employer

If the his failure to make payment
continues his
Employer continues payment after served with the notice
having been served
after having notice
\ r ·_.-
which the served upon him under Clause
Contractor has served
the Contractor 58.4(1 ), the Contractor
Clause 58.4(1), choose
Contractor may then choose
i of the following
any of
any options:
following options:
j

(b)
(b) suspend the execution
to suspend of the whole
execution of of the Works;
whole of

(c) to reduce the rate

reduce the rate of construction of
of construction Works..
of the Works

(3)
(3) Contractor must
The Contractor must inform the Employer
infonn the Engineer in writing
Employer and the Engineer if he chooses
writing if chooses either of the
either of the
n 58.4(2).
options_in Clause 58.4(2).
two options.in
LJ· (4)
(4) If Contractor chooses
If the Contractor suspend the
to suspend
chooses to of the whole of
execution of
the execution the Works,
of the treated in this
this is treated
Works, this this
similar in
Contract as similar
Contract Engineer having
effect to the Engineer
in effect issued an instruction
having issued Clause 42.1 to
instruction under Clause to
suspend the
suspend continuing performance
the continuing performance ofof the Works
Works and Clause 42.2(1) will be applicable.
Clause 42.2(1) applicable.

(5)
(5) If Contractor chooses
If the Contractor reduce the rate
chooses to reduce of construction
rate of of the Works,
construction of
o

lJ ,,-. .
(a)
(a) Engineer must
the Engineer
Completion to
Completion
take any
must take consideration in determining
delay into consideration
any delay
be entitled
Contractor may be
to which the Contractor
determining any extended
entitled under Clause 44;
under Clause 44; and
for
Date for
extended Date

(b)
(b) Engineer must
the Engineer must certify Costs in accordance
additional Costs
certify the additional with the provisions
accordance with of Clause
provisions of
53.
53.

(6) The Contractor’s

The choice of
Contractor's choice either of
of either the two
of the options in Clause
two options 58.4(2) must
Clause 58.4(2) fact alone
must not on that fact alone be
taken Contractor giving
taken as the Contractor claim for interest
rights to claim
giving up his rights Clause 58.3(4)
under Clause
interest under terminate
58.3(4) or to terminate
, Contract under
the Contract
file under Clause 62.
Clause 62.

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(7)
(7) The Contractor
The also claim for interest
may also
Contractor may suspend the execution
interest or suspend the Works if
of the
execution of if the Engineer
Engineer
does not
not issue delay in
issue or delay in issuing Interim Payment
corresponding Interim
any corresponding
issuing any Payment Certificate despite the
Certificate despite
having submitted
Contractor having Payment Application.
Interhn Payment
submitted the Interim Application.

(8) The procedure for Clause

The procedure 58.4(7) is similar
Clause 58.4(7) similar to the procedure for suspending
procedure for of the
execution of
suspending the execution
Works non-payment by the Employer.
Works for non-payment Employer.

58.5
58.5 Correction of Certificates
Certificates

(1) The any Interhn

corrections to any
Engineer may make corrections
The Engineer Interim Payment Certificate which
Payment Certificate already been
which has already
certificate when
issued. This certificate
issued. issued will
when issued will supersede the Interim
supersede the Interim Payment Certificate which
Payment Certificate which was
earlier.
issued earlier.
issued

(2) certificate issued to correct

This certificate Interim Payment Certificate
an Interirr,
correct an Certificate is called a Correction Ceitfficate in
Correction Certificate
Conditions.
these Conditions.
these

(3)
(3) must not prolong
Certificate must
Correction Certificate
A Correction Period of
prolong the Period Honouring Certificate
of Honouring Interim
of the Interim
Certificate of
Payment Certificate
Payment which it corrects.
Certificate which corrects.

(4)
(4) The Engineer issue any Correction
Engineer must not issue before the end of
Certificate 7 days before
Correction Certificate of the Period of
Period of
Honouring Certificate
Honouring of the Interim
Certificate of Payment Certificate
Interim Payment corrects.
Certificate which it corrects.

(5) A Correction
Correction Certificate same serial
given the same
Certificate must be given number as the
serial number the Interim Certificate
Payment Certificate
lnterhn Payment
which it corrects.
which end with the
serial number must however end
Its serial
corrects. Its letter ‘C’
the letter brackets, which is "(C)".
'C' in brackets, “(C)”.

(6)
(6) A Correction
A Certificate may
Correction Certificate may either increase or decrease
either increase decrease the values Payment
certified in an Interim Payment
values certified
Certificate.
Certificate.

58.6
58.6 Retention Monies
Retention Monies

(1)
(1) The Engineer must certify
The Engineer face of
certify on the face of Interim Payment Certificates
Interim Payment Certificates the amount Retention
of Retention
amount of
Monies.
Monies.

(2)
(2) The Retention Monies
The Retention must be
Monies must be calculated based on the.
calculated based the percentage stated in the Appendix and
percentage stated
applying total amount
applying it to the total certified by the Engineer
amount certified Engineer for

(a)
(a) ofWorks;
the value of Works;

(b) value of
the value Variations;
of all V and
ariations; and

(c)
(c) total value
value of for all Nominated
works for
all works
of all Sub-Contractors.
Nominated Sub-Contractors.

(3)
(3) The Retention Monies
The Retention exceed the Limit
must not exceed
Monies must Limit of Retention.
of Retention.

(4)
(4) The of Retention
The Limit of the amount
Retention is the calculated as a percentage
amount calculated of the Contract
percentage of on the
Suro based on
Contract Sum
percentage stated in the Appendix.
stated in Appendix.

58.7 Rules Relating to Retention

Rules Monies
Retention Monies

(I))
(1 The Contractor
The beneficial owner
times the beneficial
Contractor is at all times Retention Monies.
owner ooff the Retention Monies.

(2)
(2) Contractor's beneficial
Notwithstanding the Contractor’s
Notwithstanding beneficial interests Retention Monies,
interests in the Retention Employer is
Monies, the Employer
set-off or
entitled to set-off
entitled Retention Monies
deduct from the Retention
or deduct direct costs,
any direct
Monies any expenses and
losses, expenses
costs, losses,
damages which
damages which the suffers as aa consequence
Employer suffers
the Employer Contractor's breach
the Contractor’s
of the
consequence of breach of Contract.
of the Contract.

(3)
(3) can invoke
The Employer can Clause 58.7(2)
invoke Clause there is no other source
only when there
58.7(2) only source for or
amounts due or
for any amounts
to become the Contractor
become due to the Contract when
Contractor under the Contract the set-off
makes the
when he makes deduction.
set-off or deduction.

(4)
(4) The Engineer must
The Engineer issue an
must issue Interhn Payment
an Interim Certificate for the release
Payment Certificate of half
release of of the amount
half of of the
amount of
Limit of
Limit of Retention same time he issues
Retention at the same of Completion
Certificate of
issues the Certificate Contractor.
Completion to the Contractor.

(5)
(5) The Engineer must
The Engineer an Interhn
issue an
must issue Payment Certificate
Interim Payment of the remaining
Certificate for the release of half of
remaining half of the
amount
amount of Limit of
of the Limit time he issues
of Retention at the same tinie Certificate of
the Certificate
issues the of Making Good
Making Good
Defects.
Defects.

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j

58.8
58.8 Payment
Deemed Payment

(1)
(!) If Employer makes a set-off.
If the Employer or deduction
set-off.or amount due or
deduction from any amount become due to the
to become
or to the
under the
Contractor under
Contractor the Contract, the amount
Contract, the or deducted
set-off or
arilount set-off been paid by
having been
deducted is regarded as having
Employer to the Contractor
the Employer Contract
Contractor under this Contract

59
59 FINAL CERTIFICATE
PAYMENT CERTIFICATE
FINAL PAYMENT

59.1 Contractor's Final

Contractor’s Application
Final Payment Application

(1)
(I) months after
Within 33·months issue of
after the issue Certificate of
of the Certificate Making Good
of Making Contractor must
Defects, the Contractor
Good Defects, must
Engineer his proposed
submit to the Engineer account for
proposed final account for the completion of
execution and completion
the execution of
of the whole of
This proposed
Works. This
the Works. proposed final account is referred
final account referred to in these as the
Conditions as
these Conditions Payment
Final Payment
the Final
Application.

(2)
(2) Engineer may
The Engineer may prescribe format and manner
the format
prescribe the the submission
manner for the of the
submission of Payment
the Final Payment
Application.
Application.

(3) The Contractor

The must include
Contractor must where applicable
include where Payment Application
Interim Payment
applicable in the Interim following:
the following:
Application the

(a)
(a) cumulative values of
cumulative all Works
of all completed;
Works completed;
_J
(b) cumulative values of
the cumulative Variations including all Variations
of all Variations Engineer has
Variations which the Engineer has
instructed to be valued
instructed Daywork;
valued by Daywork;

(c) Option Module A is applicable,

where Option applicable, the amount of
the amount Sum;
of the Additional Sum;

(d)
(d) claims for Costs
any claims himself to be
considers himself
Contractor considers
Costs which the Contractor entitled under the
be entitled the
Contract; and
Contract;

(e) the amounts due to

cumulative amounts
the cumulative Sub-Contractors together
Nominated Sub-Contractors
to all Nominated with any profit
together with profit
charges which
a:ttendance charges
and attendance entitled.
Contractor is entitled.
which the Contractor

(4) Contractor must include

The Contractor substantiations including but not limiting to measurement
all substantiations
include all sheets,
measurement sheets,
computations, quantities,
computations, other relevant
sketches and other
quantities, sketches inforri::iation for all items included m
relevant information Final
in the Final
Payment items must
Application. The items
Payment Application. correspond to
must correspond items in
to the items in the Bills of Quantities.
of Quantities.
·l;
'j_' (5)
(5) may request
Contractor may
The Contractor of time from
extension of
request for extension Engineer for
from the Engineer of the Final
submission of
for the submission Final
Application and the
Payment Application
Payment the Engineer not unreasonably
Engineer must not withhold giving
unreasonably withhold giving the such
approval for such
the approval
request
aa request
7
r Application within the time
Account Application limit stated in
stated in
_,l (6)
(6) If does not
Contractor does
If the Contractor not submit the Final Account time limit
Clause 59.1
Clause or within
59.1 or extended time
within any extended limit given
time limit under Clause
given under 59.1(5), the Engineer
Clause 59.1(5), write
may write
Engineer may
Contractor instructing
the Contractor
to the submitted.
instructing for itit to be submitted.
~
! 1·-,
l , (7) If Contractor still does not
If the Contractor the Final Account
submit the
not submit Application 14 days after
Account Application having received
after having received
the given to him under
instruction given
Engineer's instruction
the Engineer’s under Clause Engineer may then proceed
59.1(6), the Engineer
Clause 59.1(6), to
proceed to
issue Final Payment
issue Certificate basing
Payment Certificate on whatever
basing on whatever information possession. .
information in his possession
. '
59.2
59.2 Issue Certificate
Issue of Final Payment Certificate

(!)
(1) Within months of
Within 22 months of receiving Final Payment
receiving the Final Application, the Engineer
Payment Application, to the
issue to
Engineer may issue the
Contractor a draft
Contractor account (“Draft
final account
draft final Account”) for the Contractor’s
Final Account'')
(''Draft Final agreement
Contractor's agreement
i (2) Account, he must the Engineer
then inform the of
Engineer in writing of
If Contractor agrees
If the Contractor agrees to the Draft Final Account,
Draft Final must then
agreement If
his agreement If the Contractor
Contractor does respond to the Draft
does not respond Account within
Final Account
Draft Final its
of its
within 30 days of
1,_ then considered
is then
receipt itit is
receipt, that the Contractor
considered that it.
agreed to it.
Contractor has agreed
I
(3)
(3) If the Contractor
If agree to the Draft
does not agree
Contractor does Account, he must then notify
Final Account,
Draft Final Engineer in
notify the Engineer
his disagreement.
of his
writing of
writing disagreement. He must in this notice
He must also inform the items in
notice also Draft Final
the Draft
in the Account
Final Account
disagrees.
which he disagrees.
which
0

(4)
(4) The Engineer
The Engineer may hold discussions
may hold Contractor with
discussions with the Contractor only purpose
with the only purpose ofof reaching
reaching
on the Draft
agreement on
agreement Draft Final Account Unless extended
Account Unless Engineer, all the discussions
extended by the Engineer, discussions must
within aa period
held within
be held of 60 days after the receipt
period of receipt of Contractor's notice
of the Contractor’s disagreement given
of disagreement
notice of given
59.2(3).
under Clause 59.2(3).
under

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(5) holding discussions

In holding discussions with the
the Contractor
Contractor under
under Clause
Clause 59.2(4),
59.2(4), the
the Engineer
Engineer must
must continue
continue to
exercise impartiality
exercise impartiality and
and independence
independence in arriving at or
in arriving or maintaining
maintaining the values of
of various
various items in
the Draft
the Draft Final
Final Account.
Account.

(6)
(6) The Engineer
Hie Engineer must
must issue
issue the
the Final
Final Payment
Payment Certificate
Certificate

(a)
(a) within 30 ·days
within ofreceiving
days of the Contractor’s
receiving the Contractor's written
written confirmation
confinnation of
of his agreement of
his agreement of the
the
Draft Final
Draft Final Account;
Account; or

(b)
(b) within 30
within 30 days
days of
ofreaching agreement with
reaching agreement the Contractor
with the Contractor on the
the Draft
Draft Final
Final Account;
Account; or

(c)
(c) Contractor fails
when the Contractor respond within
fails to respond within 30
30 days
days to Draft Final
to the Draft Final Account
Account and no
notice under
notice under Clause
Clause 59.2(2)
59.2(2) is served
served to the Engineer
Engineer by
by the Contractor.
Contractor.

(7)
(7) The Engineer
The Engineer must attach supporting
must attach supporting documents
documents to the Final Payment
Payment Certificate
Certificate showing
showing the _ _)

Engineer's final
Engineer’s final valuation
valuation and
and certification
certification of
of the
the Works
Works including
including Variations,
Variations, all claims that
that the
the
Contractor is
Contractor is entitled
entitled under
under the
the Contract
Contract and
and all deductions
deductions or
or set-ofis
set-offs that
that the
the Employer
Employer isis entitled
entitled
to under
to the Contract.
under the Contract. i
J
(8)
(8) The Final
The Final Payment
Payment Certificate
Certificate must
must state
state the
the balance
balance between the final
between the final certified
certified sum
sum under
under the
Contract and
Contract and die
the certified
certified cumulative
cumulative value
valµe of
of the
the preceding penultimate certificate.
preceding penultimate certificate.

(9)
(9) The Employer
The Employer must
must pay
pay to the
the Contractor
Contractor within
within the
the Period
Period for
for Honouring
Honouring Certificates
Certificates the
the amount
amount
certified on
certified on the
the Final
Final Payment
Payment Certificate.
Certificate. In making
making final
final payment
payment toto Final Payment
Payment Certificate,
Certificate,
the Employer
the Employer must
must also
also include
include full accounts
accounts of
of all payments and all deductions
payments and deductions made
made (if
(if any) from
the beginning
the of the
beginning of the Contract
Contract.

(10)
(10) If the
If the Employer
Employer considers
considers that
that the
the Final
Final Payment
Payment Certificate
Certificate reveals that there
there is outstanding
outstanding
amount owed
amount by the
owed by the Contractor,
Contractor, the Employer
Employer must then inform
must then infonn the
the Contractor
Contractor accordingly.
accordingly. The
Tue
Contractor must
Contractor must pay to the
pay to the Employer
Employer this
this outstanding
outstanding amount.
amount.

60
60 EFFECT OF
EFFECT OF CERTIFICATES
CERTIFICATES

60.1
60.1 Effect of
Effect Interim and
of Interim and Final
Final Payment
Payment Certificates
Certificates

(1)
(1) No Interim Payment
No Interim Payment Certificate
Certificate or Final
Final Payment
Payment Certificate
Certificate issued
issued by the
the Engineer
Engineer is an indication
indication
or conclusive
or evidence of
conclusive evidence of the
the acceptability
acceptability of
of any design
design (if
(if the
the design
design is
is the
the Contractor’s
Contractor's
responsibility under the
responsibility under the Contract),
Contract), or
or of
of any works, materials
materials or
or workmanship.
workmanship.

(2)
(2) No Interim
Interim Payment
Payment Certificate
Certificate or
or Final
Final Payment
Payment Certificate
Certificate issued
issued by the Engineer
Engineer can
can bebe
considered to
considered to be final and binding
binding in any
any dispute
dispute between the Employer
between the Employer and
and the
the Contractor
Contractor if
if the
dispute is
dispute is brought
brought before arbitrator or
before an arbitrator or the
the Court
Court.

(3)
(3) The Contractor’s
The Contractor's obligation
obligation to
to make
make good
good defects
defects in
in the
the Works
Works is
is not waived by the issue
by the issue of
of an
Interim Payment
Interim Payment Certificate
Certificate which
which includes
includes the
the defects.
defects.

61
61 TERMINATION BY
TERMINATION BY THE
THE EMPLOYER
EMPLOYER

61.1
61.1 Termination Due
Termination Due to Breaches of the
Breaches of the Contractor
Contractor

(1)
(1) The Engineer
Hie Engineer may
may issue
issue to
to the
the Contractor
Contractor a Certificate
Certificate of
of Default
Default if
ifhe of the
he is of the opinion that the
opinion that
Contractor has
Contractor has committed
committed the following
following one
one or
or more
more of
of the
the following
following breaches
breaches of
of the
the Contract:
Contract:

(a) wholly suspending

wholly suspending the execution of the
execution of the Works
Works or part of the
part of the Works without
without reasonable
reasonable
cause;
cause;

(b)
(b) not proceeding
not the construction
proceeding with the construction of
of the
the Works
Works regularly
regularly and
and diligently;
diligently;

(c)
(c) not beginning
not beginning the construction
construction of the
of the Works and
and there
there is no
no reason
reason why he cannot do so;
he cannot so;

(d)
(d) persistently
persistently neglects to carry
neglects to carry out
out his
his obligations
obligations under the Contract;
under the Contract;

(e) abandoning the

abandoning the Works andand demobilising
demobilising Constructional
Constructional Plant
Plant and
and Equipment,
Equipment, labours
labours and
and
workers out of
workers out of the
the Site;
Site; ·

(f)
(I) persistently ignores properly
persistently ignores issued instructions
properly issued instructions issued
issued by Engineer;
by the Engineer;

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(g) provide the required

failing to provide required perfonnance security; or
performance security; or

(h)
(h) assigning the
assigning the benefits of the
benefits of the Contract
Contract to
to aa third
third party
party without
without the
the consent
consent of
of the
the Employer.
Employer.

(2) The Certificate

The of Default
Certificate of Default must
must specify
specify the
the Contractor’s
Contractor's breaches of the
breaches of the Contract
Contract which
which have
have
prompted the
prompted the Engineer
Engineer to
to issue
issue it. The
The Certificate
Certificate of Default must
of Default must also specify
specify and state that
and state that the
Contractor must
Contractor must make
make good
good the
the breaches complained of
breaches complained of within
within 14 days of
of its
its receipt
receipt by the
the
Contractor.
Contractor.

(3)
(3) The Engineer
The Engineor must not
not issue
issue the
the Certificate
Certificate of
of Default
Default wrreasonably vexatiously.
unreasonably or vexatiously.

(4)
(4) If Contractor continues
If the Contractor continues with the
the breaches
breaches specified
specified in the
the Certificate
Certificate of
of Default
Default oror he
he does not
not
take any
any active steps
steps to
to make
make good
good the
the breaches, the Employer
breaches, the Employer may
may then
then 7 days
days after
after the
the 14-day
14-day
period
period mentioned
mentioned in Clause 61.1(2)
in Clause 61.1 (2) serve
serve aa notice to the
notice to the Contractor
Contractor terminating
tenninating the
the Contract
Contract This
This
notice called the
notice is called the “Termination
"Termination Notice" the purposes
Notice” for the of the
purposes of the Contract.
Contract.

(5) The Employer

The Employer must not issue
must not issue the
the Termination
Termination Notice
Notice unreasonably vexatiously.
unreasonably or vexatiously.

(6) The
The Tennination
Termination Notice
Notice talces soon as it is received
takes effect as soon by the
received by the Contractor
Contractor and
and the
the Contract
Contract is
immediately terminated.
immediately terminated.

(7) Both the

Both the Certificate
Certificate of
of Default
Default and
and the
the Termination
Termination Notice
Notice may
may be served
served to
to the
the Contractor
Contractor in
in either
either
of the following
of following manners:
manners:

(a)
(a) by AR Registered
Registered Post;
Post; or
or

(b)
(b) by delivering
delivering a copy
copy of the Certificate
of the Certificate of
of Default or or Termination
Termination Notice
Notice to the
to the
Contractor's notified
Contractor’s address, his
notified address, his registered office or his site
registered office site office
office with Contractor or
with the Contractor
the Site
the Site Manager
Manager acknowledging
acknowledging andand confirming
confirming receipt.
receipt.

(8) The effect

The effect of
of the Certificate
Certificate of
of Default considered to
Default is considered be temporarily
to be temporarily suspended
suspended ifif the
the Contractor
Contractor
remedies
remedies or take active
active steps remedy the
to remedy
steps to the breaches
breaches specified
specified to the
the Engineer’s
Engineer's satisfaction
satisfaction within
aa 14-day
14-day period or any extension
period or extension of
of this
this period may be
period as may be agreed
agreed in writing
writing by
by the
the Engineer.
Engineer.

(9) If however
If the Contractor
however the Contractor repeats the same
repeats the same breaches
breaches for
for which
which aa Certificate
Certificate of
of Default
Default has earlier
earlier
been issued, the Employer
been issued, Employer may then serve
may then serve to the
the Contractor
Contractor the
the Termination
Termination Notice to terminate
Notice to tenninate the
the
Contract. The
Contract. The Termination
Termination Notice takes effect
Notice takes effect immediately
immediately when
when itit is received
received by the Contractor.
Contractor.

(I 0)
(10) In invoking
In invoking Clause
Clause 61.1 to tenninate the
to terminate the Contract,
Contract, the Employer
Employer is
is at the
the same
same time
time waiving
waiving his
his
right
right to terminate the
to terminate the Contract
Contract by
by way
way of
of common
common law.

61.2
61.2 Termination Due
Termination Due to Bankruptcy
Bankruptcy or Insolvency of
or Insolvency of the Contractor
the Contractor

(I)
(1) If the Contractor
If the Contractor
.. ,
(a)
(a) (being an
(being an individual) commits an act of
individual) commits ofbankruptcy;
bankruptcy;

(b)
(b) (being aa company)
(being company) begins
begins an
an application
application to High Court
to the High Court under
under section
section 176
176 of of
Companies Act
Companies Act 1965
1965 forfor a scheme
scheme of of arrangement
arrangement with
with his
his creditors
creditors except
except ifif the
application relates to
application relates to aa scheme
scheme for
for the
the reconstruction
reconstruction or amalgamation
amalgamation of
of the
the Contractor
Contractor
_) and other
and other company
company or or companies;
companies;

(c)
(c) (being a company)
(being company) has
has a winding
winding up
up order
order issued
issued against
against him by a court
court of
of competent
competent
jurisdiction;
jurisdiction;

the Employer may then

Employer may then byby notice
notice (“Termination
("Tennination Notice") to the Contractor
Notice”) to Contractor terminating
terminating the
the
Contract. No
Contract. Certificate of
No Certificate of Default
Default is required
required to be issued by the
be issued the Engineer
Engineer in this
this case.
case.

(2)
(2) The termination
The termination of
of the
the Contract
Contract rakes effect as
takes effect soon as
as soon as the Termination
Termination Notice served to
Notice is served to and
and
received by the
received by the Contractor
Contractor and
and the Contract
Contract is immediately terminated.
is immediately tenninated.

(3)
(3) The Termination
The Termination Notice must state
Notice must state the
the ground
ground listed
listed in Clause
Clause 61.2(1) which the Employer
61.2(1) which Employer invokes
invokes
to terminate the Contract.
terminate the Contract.

(4) The Termination

The Termination Notice may be
Notice may be served
served to
to the Contractor
Contractor in either of
in either of the
the following
following maimers:
manners:

(a)
(a) by AR Registered
Registered Post;
Post; or
or

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(b)
(b) by delivering copy of
delivering a copy of Default or Termination
Certificate of
of the Certificate Notice to the
Termination Notice
Contractor's notified
Contractor’s address, his registered
notified address, registered office office with the Contractor
site office
office or his site or
Contractor or
Site Manager
the Site Manager acknowledging receipt.
confirming receipt
acknowledging and confirming

61.3
613 Effects of the
Effects of Termination
the Termination

(1)
(I) Upon termination of
Upon the termination Contrac~ aod
of the Contract, irrespective of
and irrespective of the validity or otherwise of
or otherwise of the
termination, aod irrespective
termination, and Contractor intends
if the Contractor
irrespective if challenge the validity
dispute or challenge
intends to dispute of the
validity of
termination, following rules
termination, the following will apply:
rules will

(a) The
The Employer
Employer is entitled
entitled to
to enter Contractor can
Site and the Contractor
enter the Site regarded as
longer be regarded
can no longer
having possession
having of the Site.
possession of Site.

-(b)
(b) The Coiiiriii:foi must
The' Contractor must stop his operations
stop all his Site together with his
of the Site
move out of
operations and move
labour.
personnel and labour.
personnel

(c)
(c) The
The Contractor not remove
Contractor must not remove any of Constructional Plant
of the Constructional and Equipment
Plant and and
Equipment and
unfixed materials
materials out of the Site.
of the

(d)
(d) The Engineer must within
The Engineer after the
within 77 days after the Contract terminated write to the
Contract has been terminated
attend a joint
Contractor to attend
Contractor survey of
joint survey completed, the Constructional Plant
Works completed,
of the Works and
Plant and
materials remaining
unfixed materials
Equipment and unfixed remaining on Site.
on the Site.

(e)
(e) The Contractor
Contractor can
can only
only remove
remove the Constructional Plant and Equipment and
Constructional Plant unfixed
and unfixed
materials· out
materials of the Site
out of Site after instruction from
received instruction
after he has received Engineer for their
from the Engineer
removal.

(f) If the Contractor

If Contractor fails or refuses to remove Equipment and
Constructional Plant and Equipment
remove the Constructional
unfixed materials of the Site after
materials out of has received
after he has an instruction
received an Engineer to
instruction from the Engineer
Employer may then
do so, the Employer then remove sell them in ways that
remove and sell Employer sees fit
that the Employer
and proper.
proper.

(g) The Employer must Engineer in writing

inform the Engineer
must inform the value
writing the of the proceeds
value of proceeds of made
sale made
of sale
according to Clause
according 61.3(1)(1) and any reasonable
Clause 61.3(l)(f) reasonable administrative charges which
administrative charges may
which he may
impose.
want to impose.
want

(h)
(h) Liquidated Damages
Liquidated Damages (if(if any) which continue
any) which be deductable
continue to he of termination
at the time of
deductable at termination
of Contract will immediately
of the Contract being payable.
stop being
immediately stop payable.

(2)
(2) After
After the termination of the
tenmination of Employer may
Contrac~ the Employer
the Contract, complete the remaining Works
may complete or
himself or
Works himself
may employ
Employer may
the Employer contractor or
other contractor
employ other to complete
contractors to
or contractors Works.
complete the Works.

(3) The Employer or his chosen

The Employer contractors may use
contractor or contractors
chosen contractor use the Constructional Plant
the Constructional Plant and
and unfixed materials
Equipment and
Equipment the use
materials but the use of these must be properly
of these accounted to
properly accounted Contractor.
to the Contractor.

61.4
61.4 Payment After
Payment Termination
After Termination

(I)
(1) The Engineer must
The Engineer must after termination of
after the termination Contract issue
of the Contract financial position
certificate on the financial
issue aa certificate position
of the Contract.
of the certificate is referred
This certificate
Contract. This m these
to in
referred to Conditions as the Certificate
these Conditions Termination
of Termination
Certificate of
Cost
Cost

(2) The
The Engineer
Engineer must certify values of
certify the values items in the Certificate
following items
of the following Termination Cost:
ofTermination
Certificate of

(a)
(a) certified of all Works
sum of
certified sum Contractor up to the date
completed by the Contractor
Works completed termination
of the termination
date of
of based on the joint
Contract based
of the Contract survey conducted
j oint survey according to Clause 661.3(1)(d);
conducted according 1.3 (1 )(d);

(b)
(b) value of
certified value by the Contractor including all the V
completed by
Variations completed
of all Variations ariati011ji
Variation
■which valued by
which are to be valued Daywork;
hy Daywork; •

(c)
(c) Costs which
Costs Engineer considers
the Engineer
which the that the
considers that Contractor is
the Contractor Contract;
under the Contract;
is entitled under

(d)
(d) cumulative amounts
cumulative all Nominated
to all
amounts due to Nominated Sub-Contractors together with any profit and
Sub-Contractors together
charges which
attendance charges
attendance which the Contractor t!ntitled;
Contractor is' entitled;

(e)
(e) value of the Performance
value of that the Employer
Security that
Performance Security demand and been paid;
Employer has made demand paid;

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(0
(!) amounts Contractor for the use
due to the Contractor
amounts due use of Constructional Plant and
of the Constructional and
and Equipment and
materials under Clause
unfixed materials
unfixed 61.3(3); and
Clause 61.3(3);

(g)
(g) sale proceeds
sale proceeds (if of the Constructional
sale of
(if any) for the sale Equipment and unfixed
Constructional Plant and Equipment unfixed
material according to
material according Clause 61.3(1
to Clause )(g).
61 .3(1)(g).

(3)
(3) In 61.4(2), the Engineer
addition to the items in Clause 61.4(2),
In addition must also
Engineer must certify the values
also certify values of following
the following
of the
of Termination
Certificate of
items in the Certificate Cost:
Termination Cost:

(a)
(a) the costs of completing the remaining
of the Employer in completing Works;
remaining Works;

(b) ofnial<lng
costs of
the costs defects in
making good any defects Works;
in the Works;

(c)
(c) administrative charges
the administrative which the
charges which reasonably impose
Employer may reasonably
the Employer the
selling the
impose in selling
Constructional Plant
Constructional Equipment according
Plant and Equipment 61.3(1-)(g),
Clause 61.3(l)(g).
according to Clause

(d)
(d) any other which the Employer
costs which
other costs to claim from
entitled to
Employer is entitled express
Contractor under express
from the Contractor
Contract
of the Contract
] (4)
(4)
provisions
provisions of

The Certificate
The of Termination
Certificate of Cost must
Tennination Cost must state difference in
state the difference total value
in the total certified in
value certified Clause
in Clause
less the total value
61.4(2) less
61.4(2) Clause 61.4(3).
value certified in Clause balance will be the value
The balance
61.4(3). The certified as
value certified
payable by the Contractor
payable Employer or by the Employer
Contractor to the Employer case may be.
Contractor as the case
Employer to the Contractor

(5) The payment

The due on the Certificate
payment due of Termination
Certificate of Cost must
Termination Cost within a period
must be paid within period of of
30 days of
of 30
issue of
the issue Certificate.
of the Certificate.

(6) The Engineer must

The Engineer Certificate of
issue the Certificate
must issue Cost as soon
Termination Cost
of Termination certify
ascertain and certify
soon as he can ascertain
applicable values in Clause
all the applicable 61.4(2) and Clause 61.4(3)
Clause 61.4(2) within aa period
or within
61.4(3) or period of afier
of 66 months after
the tennination
the termination of Contract whichever
the Contract
of the later.
whichever is later.

(7) The Contractor will

The Contractor not be entitled
will not payment (if
entitled to any payment any). afier
(if any) the termination
after the termination of Contract
of the Contract
has issued the Certificate
Engineer has
until the Engineer Certificate of Cost.
Termination Cost.
of Termination

62 TERMINATION BY THE
TERMINATION CONTRACTOR
THE CONTRACTOR

62.1 Termination Breaches of

Due to Breaches
Termination Due the Employer
of the Employer

(1) The Contractor may

The Contractor may issue to the
issue to Employer a notice
the Employer specifying that
notice specifying that the Employer committed one
Employer has committed
or more
or of the following
more of breaches of
following breaches Contract:
of the Contract:

(a)
(a) the Employer does not pay
the Employer pay or not pay
does not
or does pay to the Contractor certified
amounts certified
Contractor in full the amounts
Interim Payment
in any Interim
. in Certificate;
Payment Certificate;

(b) Employer has

the Employer in any other
or in
interfered, influenced or
has interfered, obstructed the Engineer's
other way obstructed Engineer’s
certification process;
certification process;

(c)
(c) Employer does
the Employer have aa replacement
does not have replacement Engineer of the
within 30 days of
Engineer within stops
Engineer stops
the Engineer
Engineer for the pwposes
being the Engineer
being purposes of Contract.
of the Contract

(2) The Contractor to the

notice given by the Contractoi-
The notice the Employer these Conditions
known in these
Employer is known of
"Notice of
Conditions as the “Notice
Default" and this must
Default” must state the provision
state the provision in Clause 62.1(1) Contractor intends
which the Contractor
62.1(1) which invoke
intends to invoke
Contract.
terminate the Contract.
to terminate

(3) The
The Contractor not issue the Notice
Contractor must not of Default
Notice of unreasonably or vexatious]y.
Default unreasonably vexatiously.

(4) The Notice of

The Notice require the
of Default must require Employer to make good
the Employer specified breaches
good the specified within aa
breaches within
period of 14 days of
period of receipt.
of its receipt.

(5)
(5) If Employer continues
If the Employer breaches specified
continues with the breaches the Notice
in the
specified in of Default
Notice of or does not take
Default or any
take any
active steps to remedy
active steps specified breaches,
remedy the specified Contractor may then 7 days
breaches, the Contractor after the
days after 14-day
the 14-day
period mentioned
period Clause 62.1(4)
mentioned in Clause terminate the
notice to the Employer to terminate
serve aa notice
62.1(4) serve Contract. This
the Contract.
notice
notice is "Contractor's Termination
called the “Contractor’s
is called the purposes
Notice” for the
Termination Notice" purposes of Contract
of the Contract

(6) The Contractor’s

The Contractor's Termination soon as it is received
effect as soon
takes effect
Termination Notice takes Employer and the
received by the Employer the
Contract is at that time
Contract immediately terminated.
time immediately terminated.

(7)
(7) The must not issue
Contractor must
The Contractor Tennination Notice
Contractor's Termination
issue the Contractor’s Notice unreasonably vexatiously
or vexatiously
unreasonably or

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(8)
(8) Both the
Both the Notice of Default
Notice of Default and the Contractor’s
Contractor's Tennination
Termination Notice
Notice may be served to the
be served the Employer
Employer
either one
in either
in one of
of the
the following
following manners:
manners:

(a)
(a) Registered Post;
AR Registered
by AR Pos~ or
or

(b)
(b) delivering a copy
by delivering of the
copy of the Notice
Notice of
of Default
Default oror Contractor’s
Contractor's Termination
Tennination Notice
Notice to
to the
Employer's notified
Employer’s notified address, his registered office
his registered office or
or his
his site
site office
office with the
the Employer
Employer oror
agent acknowledging
his agent acknowledging andand confirming
con:finning receipt
receipt.

(9) The effect

The of the
effect of the Notice of Default is considered
Notice of considered to
to be temporarily
temporarily suspended if the Employer
suspended if Employer
remedies the breaches
remedies specified within
breaches specified within the
the 14-day
14-day period.
period.

(10)
(10) If however
If however the
the Employer
Employer repeats
repeats the
the same breaches
breaches for for which Notice of
which a Notice of Default
Default has earlier
earlier been
issued,
i~sl!~d, the
the_ Contractor may serve tq _ the
Co~~~Q~--~X--~~~~Jq____ tjl~_ Employer
-?_!I?.PJ~yer_ the
tlw Contractor’s;
Col).tract_or'_s_ Termination Notice. The
Terminatio_n __N.9tice. The
Contractor’s Termination Notice
Contractor's Termination takes effect
Notice takes effect immediately
immediately when itit is is received
received by the
the Employer
Employer andand
the Contract
the Contract is immediately
inunediately terminated.
terminated.

62.2
62.2 Termination Due
Termination Due to
to Bankruptcy
Bankruptcy or
or Insolvency
Insolvency of
of the
the Employer
Employer

(!)
(1) If the
If the Employer
Employer

(a)
(a) (being an individual)
(being individual) commits
conunits an act
act of
of bankruptcy;
bankruptcy;

(b)
(b) (being aa company)
(being company) begins
begins an application
application to High Court
to the High Court nuder section 176
under section 176 of of
Companies Act
Companies Act 1965
1965 for
for aa scheme
scheme of of arrangement
arrangement with
with his
his creditors
creditors except
except ifif the
the
application relates
application relates to
to aa scheme
scheme for
for the
the reconstruction
reconstruction or amalgamation
amalgamation ofof the
the Employer
Employer
l ,I

and other
and other company
company or or companies;
companies; )

(c)
(c) (being a company)
(being company) has
has aa winding
winding up order
order issued against him by a court
issued against court of
of competent
competent
jurisdiction;
jurisdiction;
7
J
the Contractor
the Contractor may
may then
then by Contractor’s
Contractor's Termination
Tennination Notice
Notice to the Employer
to the Employer terminate
terminate the
the
Contract immediately.
Contract immediately. No
No Notice of Default
Notice of Default is required
required to
to be issued
issued by the
the Contractor
Contractor in
in this
this case.
case.

(2)
(2) The termination
The termination of
of the Contract
Contract takes
takes effect
effect as
as soon
soon asas the
the Contractor’s
Contractor's Termination
Termination Notice is
Notice is
served to
served to and
and received
received by
by the
the Employer
Employer and
and the
the Contract
Contract is
is immediately
inunediately terminated.
terminated.

(3)
(3) The Contractor’s
The Contractor's Termination
Termination Notice
Notice must
must state
state the
the ground
ground listed Clause 62.2(1)
listed in Clause 62.2(1) which the
the
Contractor invokes
Contractor invokes to terminate
terminate the Contract
Contract

(4)
(4) The Contractor’s
The Contractor's Termination
Termination Notice may
may be served to the
be served the Employer
Employer in
in _either of the
either of the following
following
mmmers:
manners:

(a)
(a) Registered Post;
AR Registered
by AR Post; or

(b)
(b) by delivering
delivering a copy
copy of
of the
the Contractor’s
Contractor's Termination
Termination Notice to the
Notice to the Employer’s
Employer's notified
address, his registered
address, registered office
office or his site office
his site office with
with the
the Employer or his agent
Employer or agent
acknowledging con:finning receipt.
acknowledging and confirming receipt.

62.3
623 Effects of Termination
Effects of of the Contract
Termination of Contract by the
the Contractor
Contractor

(I)
(1) Upon the
Upon the termination
termination ofof the
the Contract,
Contract, and
and irrespective
irrespective of
of the
the validity or otherwise
validity or otherwise ofof the
the
termination, irrespective ifif the Employer
termination, and irrespective intends to
Employer intends to dispute
dispute or
or challenge
challenge the
the validity of the
validity of the
termination, the
termination, the following
following rules
mies will apply:
apply:

(a)
(a) The Employer is entitled
The Employer entitled to
to enter the Site
enter the Site and
and the
the Contractor
Contractor can no longer
can no longer be regarded
regarded as
having possession
having of the Site.
possession of Site.

(b)
(b) The Contractor
Contractor must move
move out
out of
of the
the Site
Site together
together with
~th his
his personnel,
personnel, labour
labour and
and all the
the
Constructional Plant
Constructional Plant and Equipment
Equipment and unfixed
nnfixed materials.
materials.

(c)
(c) The Engineer
The Engineer must within 7 days after the
must within the Contract
Contract has
has been
been terminated
teiminated write
write to
to the
the
Contractor to
Contractor to attend
attend aa joint survey of
joint survey of the
the ,Works completed, the
Works completed, the Constructional
Constructional Plant
Plant and
Equipment and unfixed
Equipment and unfixed materials
materials remaining on the
remaining on the Site.
Site.

(2) After the

After the termination
termination of
of the
the Contract,
Contract, the
the Employer
Employer may
may where
where possible complete the remaining
possible complete remaining
Works himself
Works or he
himself or may employ
he may employ other
other contractor
contractor or contractors
contractors to
to complete the Works.
complete the

© The
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of Engineers, Page 60 of
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 IEM Form
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Contract JEM.CE20IJ
IEM.CE2011
For Civil Engineering
For Civil Works
Engineering Works

62.4
62.4 Payment After
Payment After Termination
Termination

(I)
(1) Engineer must
The Engineer
The the termination
must after the termination of
of the
the Contract
Contract issue
issue aa certificate
certificate on
on the
the financial
financial position
position
of the
of the Contract.
Contract. This
This certificate
certificate is referred in these
referred to in these Conditions
Conditions as thethe Certificate
Certificate of Termination
Termination
Cost
Cost

(2) The Engineer

The Engineer must
must certify the values
certify the values of
of the
the following
following items
items in the
the Certificate
Certificate of
of Termination
Termination Cost:
Cost:

(a) certified sum

certified sum of
of all Works
Works completed
completed by the
the Contractor
Contractor up to the
the date
date of
of the
the termination
termination
of.the
of Contract based
the Contract based on
on the
the joint survey conducted
joint survey conducted according
according to
to Clause
Clause 62.3(l)(c);
62.3(l)(c);

(b) certified value

certified value of
of all Variations
Variations completed
completed by
by the Contractor
Contractor including
including all the Variations
Variations
which are
which are to
to be valued
valued by Daywork;
Daywork;

(c)
(c) Costs which
Costs which the Engineer
Engineer considers
considers that
that the
the Contractor
Contractor is
is entitled
entitled under the Contract;
under the Contract;

(d)
(d) cumulative
cumulative amounts
amounts due
due to
to all
all Nominated
Nominated Sub-Contractors
Sub-Contractors together
together with
with any profit
profit and
attendance charges
attendance charges which
which the Contractor
Contractor is entitled;
entitled;

(e)
(e) value of
value of the
the Performance
Performance Security
Security that the Employer
Employer has
has made a call according
according to Clause
Clause
110.4 of these
0.4 of these Conditions;
Conditions;

(3) addition to
In addition to the items
items in
in Clause
Clause 62.4(2),
62.4(2), the
the Engineer
Engineer must
must also
also certify
certify the values
values of
of the
the following
following
items in
items the Certificate
in the Certificate of
of Termination Cost:
Termination Cost:

(a)
(a) the costs
the costs of
of making good any defects
making good defects in
in the Works;
Works;

(b) other costs

any other costs to
to the
the Employer
Employer which
which the
the Employer
Employer is entitled
entitled to
to claim
claim from
from the
the
Contractor according
Contractor according to
to express
express provisions
provisions of
of the
the Contract.
Contract.

(4)
(4) The Certificate
The Certificate of
of Termination
Termination Cost must state
Cost must state the difference
difference in the total
total values
values certified
certified in CJause
in Clause
62.4(2) less
62.4(2) less the total
total values
values certified
certified in
in Clause 62.4(3). The
Clause 62.4(3). The balance
balance will be the value
be the certified as
value certified as
payable the Contractor
payable by the Contractor to the
the Employer
Employer or
or by
by the Employer
Employer to
to the
the Contractor the case
Contractor as the case may be.

(5) The Engineer

The Engineer must issue
issue the
the Certificate
Certificate of
of Termination
Termination Cost
Cost as soon
soon as he can ascertain
he can ascertain and certify
certify
applicable values
all the applicable values in Clause
Clause 62.4(2)
62.4(2) and Clause
Clause 62.4(3)
62.4(3) or within
within a period of 66 months
period of months after
the termination
the termination has
has taken
taken effect
effect whichever
whichever is later.

(6) The Contractor

The Contractor will
will not
not be
be entitled
entitled to
to any payment (if any)
payment (if the termination
any) after the termination of
of the Contract
Contract
until the
the Engineer
Engineer has issued
issued the
the Certificate
Certificate of
of Termination
Termination Cost.
Cost.

(7)
(7) The payment
The payment due onon the
the Certificate
Certificate of
of Termination
Termination Cost
Cost must
must be paid within
be paid within aa period of30
period of of
30 days of
the issue
the issue of
of the
the Certificate.
Certificate.

63 DISPUTE RESOLUTION
DISPUTE RESOLUTION
l
' .J 63.1 Reference to Arbitration
Reference Arbitration

(I)
(1) If there
If there is
is any dispute
dispute between the Employer
between the Employer and the
the Contractor
Contractor in any matters
matters relating
relating to or arising
to or arising
.1 the Contract,
from the Contract, either
either the
the Employer
Employer or the Contractor
Contractor must
must first
first refer
refer the
the dispute
dispute or
or difference
difference toto
J arbitration for
arbitration for its resolution
resolution before starting any
before starting any legal action
action in court.
court.

(2)
(2) Toe reference
The reference to arbitration by either
arbitration by either the
the Employer
Employer or the
the Contractor
Contractor to arbitration
arbitration is subject
subject to the
the
applicability of
applicability of Option Module D. The
Option Module The provisions of Module
provisions of Module D D if
if they
they are
are applicable
applicable will have
have to
to
be applied
be applied and
and Clause
Clause 63.
63.!1 can
can only
only be
be invoked
invoked when any of the
any of the following
following event
event first
first occurs:
occurs:

(a) if the
if the mediation not result
mediation does not result in aa settlement
settlement agreement
agreement entered
entered into between the
between the
Employer and
Employer and the Contractor
Contractor and
and the
the mediator
mediator decides
decides to
to terminate
tenninate the
the mediation process;
mediation process;
or
or

(b)
(b) either the
if either
if the Employer
Employer or the
the Contractor
Contractor decides,
decides, after
after the
the commencement
commencement of of mediation
mediation
process, not
process, not to proceed with mediation
proceed with conveys this
mediation and conveys this decision
decision to the
the other
other party in
writing; or
writing; or

(c)
(c) both Employer and
both the Employer the Contractor
and the Contractor agree in writing
agree in writing between themselves not
between themselves not to
to proceed
proceed
mediation.
with mediation.
with

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For Civil
Civil Engineering
Engineering Works

(3)
(3) The party that
The that starts
starts the
the reference
reference to arbitration must first serve
arbitration must serve aa notice
notice (“Arbitration
("Arbitration Notice")
Notice”) to
the other
the other party.
party.

(4)
(4) The Arbitration
The Arbitration Notice must be served
Notice must served in
in any
any of
of the
the method
method provided
provided in Clause
Clause 9.1 of
of these
these
Conditions.
Conditions.

(5) The Arbitration

The Arbitration Notice only be served
can only
Notice can served after
after

(a) the termination

the of the
termination of the Contract
Contract irrespective if the
irrespective if the termination
termination is challenged;
challenged; or

(b) the issue

the issue of
of Certificate
Certificate of
of Completion;
Completion; or

(c) one party claims that

party claims that the
the Works
Works have been
been completed
completed and
and this
this is denied
denied by the
the other
other
party; or
party;pr

(d)
(d) both Employer and
both the Employer and the
the Contractor
Contractor agree to refer
agree to refer the
the dispute
dispute or
or difference
difference between
between
them to
them to arbitration.
arbitration.

(6)
(6) Where Module
Where Module D D applies, agreed that
applies, it is agreed that issues
issues not
not raised mediation process
in mediation
raised in process may
may be raised
raised in
arbitration by either
arbitration either of
of the parties.
parties.

(7)
(7) The arbitration
The arbitration between Employer and
between the Employer and the
the Contractor governed by
Contractor is governed by Arbitration
Arbitration Act
Act 2005
2005 and
both the Employer
both the Employer and
and the
the Contractor
Contractor agree
agree that
that Part
Part III
III of
of Arbitration
Arbitration Act 2005
2005 applies
applies to
to the
the
arbitration.
arbitration.

(8)
(8) A dispute
A said to
dispute or difference is said have arisen
to have arisen between
between the the Employer
Employer and
and the
the Contractor
Contractor when
when one
asserts aa statement
party asserts
party statement or
or makes
makes aa claim and itit is denied,
claim and ignored, by the
denied, or ignored, the other.
other.

(9) The Employer

The Employer and
and the
the Contractor
Contractor agree
agree to
to the
the seat
seat of
of arbitration
arbitration stated
stated in
in the
the Appendix.
Appendix.

(10)
(10) The Arbitration
The Arbitration Rules
Rules published
published by
by The
The Institution
Institution of
of Engineers,
Engineers, Malaysia
Malaysia apply
apply to
to the
the arbitration
arbitration
between the
between the Employer
Employer and
and the
the Contractor.
Contractor.

63.2
63 J Appointment of
Appointment of Arbitrator
Arbitrator

(I))
(1 The arbitration
The arbitration must
must be
be held before a single
held before single arbitrator.

(2)
(2) The parties may
The may agree
agree on
on the
the choice
choice of
of the
the arbitrator
arbitrator among themselves. If
among themselves. they cannot
If they cannot agree
agree on
on the
choice of
choice of an arbitrator,
arbitrator, the party who serves
party who serves the Arbitration
Arbitration Notice
Notice must then apply to
must then to the President
President
of The
of The Institution
Institution of
of Engineers,
Engineers, Malaysia
Malaysia to
to appoint arbitrator.
appoint an arbitrator.

(3)
(3) If the President
If the President of
of The
The Institution
Institution of
of Engineers,
Engineers, Malaysia
Malaysia appoints
appoints the arbitrator,
arbitrator, it is
is considered
that the two
that two parties
parties have
have jointly agreed on
jointly agreed on the
the appointment
appointment unless there are
unless there are considerations
considerations which
prevent the
prevent the appointed arbitrator from
appointed arbitrator from acting
acting as the
the arbitrator.
arbitrator.

63.3
63.3 Powers of
Powers of the
the Arbitrator
Arbitrator

(!)
(1) The arbitrator
The arbitrator has the
the following
following powers:
powers:

(a)
(a) open up,
to open up, review
review and revise certificate, decision
any certificate,
revise any decision or
or opinion
opinion of
of the
the Engineer;
Engineer;

(b)
(b) determine and
to determine and declare
declare all disputes
disputes or
or differences
differences which
which have
have been raised
raised by both
both the
Employer and
Employer and the
the Contractor;
Contractor;

(c)
(c) award interests
to award interests including interests which are
including interests are accrued
accrued before
before and
and after
after the
the publication
publication of
of
award and
the award the rate
and the rate of
of these
these interests.
interests.

(2)
(2) The parties
The parties agree
agree that
that the
the award published
published by the
the arbitrator
arbitrator is final
fipal and
and binding on them.
binding on them.

© The Institution of
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 IEM Form of
/EM a/Contract
Contract IEM.CE2011
IEM.CE2011
For
For Civil
Civil Engineering Works
Engineering Works

Option Module
Option Module A: Contract
Contract Sum
Sum Difference
Difference

Al This
This provision
provision only applies when
when the
the Engineer
Engineer prepares
prepares the
the Final
Final Payment Certificate.
Payment Certificate.

A2 If the difference
If difference in the
the total sum
sum of
of Bill
Bill B and Bill
Band Bill C
C in the
the Final
Final Payment
Payment Certificate
Certificate is less than
than the
the total
total sum
sum
of Bill Band
of B and Bill CC in the Bills of
of Quantities,
Quantities, the Contractor
Contractor is then entitled
entitled to an additional
additional payment which is
payment which
to be
be computed using the formula
computed using-the fonnuJa in Clause
Clause A4.

A3 The
Toe following notations are used with their
following notations their corresponding meanings indicated:
corresponding meanings indicated:

51 : the
the sum for Bill B in the
the Bills of
of Quantities
Quantities in the Contract
the Contract

S2
52 : the sum for
for Bill C
C in the Bills of
the Bills of Quantities
Quantities in the
the Contract
Contract

s,
53 : for Bill B
the sum for B of
of the
the Bills
Bills of
of Quantities in the Final Payment Certificate
Payment Certificate

s,
S-i : the sum for
for Bill C
C of
of the Bills
Bills of
of Quantities
Quantities in the
the Final
Final Payment Certificate
Payment Certificate

A4 The
The Contractor
Contractor is only entitled to an additional
additional sum (“Additional
("Additional Sum”) when (S3
Sum") when + S4)
(S, + S,) is less
less than
than 0.75 x (Si
(S,
+ S2)
+ the additional
S,) and the additional sum is computed
computed as follows:

Additional Sum =-0.05

0.05 xx [0.75
[0.75 xx (Si
(S, + S2)-(S,
+ S2) - (S3 +S,)J
+S4)]

A5
AS The Engineer
The Engineer must include
include this Additional Sum payable in the Final Payment Certificate as
Payment Certificate as Costs
Costs to the
the
Contractor.
Contractor.

A6 For the avoidance

For avoidance of of doubt, the entitlement
entitlement to
to this
this Additional irrespective of
Additional Sum is irrespective of whether
whether the Contractor
Contractor
has served aa notice
has served that effect.
notice to that effect.

__ i

© The Institution
© Institution of Engineers,
Engineers, Page 63 of70
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IEM Form
IEM Form of Contract
of Contract IEM.CE2011
IEM.CE2011
Civil Engineering
For Civil Works
Engineering Works

Module B: Price
Option Module
Option Fluctuation
Price Fluctuation

Bl
Bl This module only applies
This changes in
to upward changes
applies to of the following
price of
in price materials used
following materials The
used in the Works. The
materials
materials are cement, steel
are cement, bars, bitumen
reinforcement bars,
steel reinforcement diesel.
bitumen and diesel.

B2 Where Option Module

Where Option Module B Contractor must
applies, the Contractor
B applies, include in his
must include Tender the base price
his Tender ("Base Price”)
price (“Base for
Price") for
each four materials
of the four
each of which he
materials on which Tender.
he had based his Tender.

B3 In submitting additional payment

submitting his claim for additional payment according Option Module
this Option
according to this Ccntractor must
Module B, the Contractor
produce all
produce all relevant documents to substantiate
relevant documents claim together
substantiate his claim together with detailed
detailed computations. The
computations. The
sub_s_t_antiations__ re.quired
substantiations required include where__ applicable,
include_ where purchase _orders,
applicable_ purchase delivery_ .orders,_
orders, delivery payment vouchers,
orders,, payment
receipts others.
receipts and others.

B4 The Contractor is entitled to include

The Contractor according to
claim according
include his claim this Option
to this Module B
Option Module Monthly
Contractor's Monthly
B in the Contractor’s
Application.
Application.

B5
B5 The Engineer must,
The Engineer must, when the Contractor included his
has included
Contractor has claim under
his claim under this Option Module in
this Option Contractor's
in Contractor’s
Monthly Application,
Monthly certify accordingly
Application, certify entitlement in the corresponding
Contractor's entitlement
accordingly the Contractor’s Interim Payment
corresponding Interim Payment
Certificate.
Certificate.

B6 Engineer must
The Engineer must certify Contractor's entitlement
certify the Contractor’s Option Module
according to this Option
entitlement according Costs.
as Costs.
Module as

B7
B7 The Contractor’s inclusion of
Contractor's inclusion under this
claim under
of his claim Option Module
this Option Module is on for
alone a notice to claim for
on that fact alone
Costs under the provision
Costs of Clause
provision of Conditions.
of the Conditions.
Clause 53.1 of

B8 Adjustment
Adjustment for Cement Component
for Cement

Adjustment increase in the price

Adjustment for the increase price of bought and delivered
cementitious products bought
cement or cementitious
of cement Site by
delivered to Site
Contractor must be computed
the Contractor accordance with
computed in accordance formula:
following formula:
with the following

A.
Ac = 0.85 xx (Pc/100) xx (Ci
(PJI00) C,)/C,o
(C;-- Co)/C

Where

Ac = increase in cost of
in the cost of work month under
during the month
work during under consideration changes in the
due to changes
consideration due
cement
price for cement

C;
Ci = the Base Price cement
of cement
Price of

Co
Co = the average
average purchase price for
purchase price cement or cementitious
for cement products which
cementitious products can
Contractor can
which the Contractor
the month preceding
substantiate for the
substantiate Date
Valuation Date
preceding the Valuation

Pc = percentage
percentage of cement component of
of cement work
of the work

B9 for Steel
Adjustment for Reinforcement Bars
Steel Reinforcement Component
Bars Component

increase in the price

Adjustment for the increase
Adjustment price of steel reinforcement
of steel bars bought
reinforcement bars bought and Site by the
delivered to Site
and delivered
accordance with
Contractor must be computed in accordance
Contractor foID1ula:
following formula:
with the following

A,,
A. = 00.85 Ps / 1 0 0 )xx (S;-
. 8 5x ((PJIO0) ( S i - S,)/S,
So )/So

Where

As = increase in
increase cost of
in the cost during the month under
work during
of work changes in the
consideration due to changes
under consideration
steel reinforcement
price for steel bars
reinforcement bars

S;
Si = the Base Price for
Base Price reinforcement bars
steel reinforcement
for steel

s,
So = average purchase
the average purchase price reinforcement bars which
steel reinforcement
price for steel which the Contractor can
Contractor can
substantiate month preceding
the month
substantiate for the preceding the Date
the Valuation Date

P,
Ps = percentage of steel reinforcement
percentage of work
of the work
component of
reinforcement bars component

of Engineers,
Institution of
© The Institution Engineers, of70
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 IEM Form of
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Engineering Works

BlO
BIO Adjustment Bitumen Component
for Bitumen
Adjustment for

for the increase

Adjustment for bitumen bought
of bitumen
increase in the price of bought and Site by the Contractor
delivered to Site
and delivered be
Contractor must be
computed with the
accordance with
computed in accordance the following formula:
following formula:

Ab
Ab = 0.85 (Pbi!OO) xx (Bi-
0.85 xx (Pb/100) B0 )/Bo0
(Bi - Bo)/B

Where

Ab
Ab = increase cost of
increase in the cost during the
of work during consideration due to
month under consideration
the month in the
to changes in the
price for
price bitumen
for bitumen

B,
B; = . the Base Price for bitumen
Base Price

Bo = the average bituminous products

for bitumen or bituminous
purchase price for
average purchase Contractor can
products which the Contractor can
month preceding
substantiate for the month
substantiate Date
preceding the Valuation Date

Pb
Pb = percentage ofbitumen
percentage of bitumen component work
of the work
component of

Bil
B ll Adjustment for Diesel
Adjustment Diesel

Adjustment for increase in

for the increase of diesel
the price of
in the bought and delivered
diesel bought to Site
delivered to be
Contractor must be
Site by the Contractor
accordance with the following
computed in accordance
computed fonnula:
following formula:

Ar = 0.85 xx (Pf/1
0.85 00) xx (Fi
(Pd!OO) (F; - FF,)/F,
o )/Fo

Where

Ar = increase
increase in cost of
in the cost during the
work during
of work consideration due to changes in the
the month under consideration
diesel
for diesel
price for

F,
Fi = Base Price
the Base Price for Diesel
for Diesel

F,
Fo = the average purchase price
average purchase for diesel
price for for the
Contractor can substantiate for
diesel which the Contractor month
the month
preceding
preceding the Cut-Off Date
the Cut-Off Date

Pr = percentage of
percentage of diesel component of
diesel component work
of the work

,_)

The Institution of
© The Engineers,
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IEM Form of
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IEM.CE2011
Civil Engineering
For Civil
For Works
Engineering Works

Option Module
Option Termination without
Module C: Termination Default
without Default

Cll
C The Employer is entitled
The terminate the Contract
to terminate
entitled to need to
without the need
Con1ract without to give Con1ractor by
reason to the Contractor
give any reason
giving the Contractor
giving ("Termination Notice'')
notice (“Termination
14-day notice
Con1ractor 14-day Notice”) that the Contract
that the accordance
terminated in accordance
Con1ract will be terminated
with this
with Option Module.
this Option oftllis
copy of
Module. A copy this notice Ille Engineer.
notice must be given to the Engineer.

C2 The Employer can exercise

Employer can right in tllis
his right
exercise his this Option Module at
Option Module before Ille
any time before
at any of Ille
the issue of the Certificate of
Certificate of
Completion.
Completion.

C3 The of service
The mode of notice in Clause
of the notice
service of eitller of
Cl1 can be either
Clause C following:
the following:
of the

(a)
(a) AR Registered
by AR Registered Post; or--
Post; or

(b) by copy of
delivering aa copy
by delivering Con1ractor' s notified
notice to the Contractor’s
Ille notice
of the notified address, office, his
address, his registered office,
address as it appears
address in the Articles of
appears in Agreement, or his
of Agreement, site office
his site Manager
office with the Site Manager
aclmowledging
acknowledging and confirming its receipt.
and confirming

C44
C The termination end of
at the end
termination takes effect at period after Ille
14-day period
Ille 14-day
of the the Contractor the notice.
Con1ractor has received the

C5
CS The Employer's right
The Employer’s Option Module must be exercised
right in this Option and is subject
exercised in, and Ille principle
subject to the of, good
principle of
faith.
faith.

C6
C6 The terminate the Contract
Employer must not terminate
The Employer right in this
Con1ract by invoking his right Option Module
this Option execute
order to execute
Module in order
Works himself
Ille Works
the arrange for
himself or to arrange executed by another
the Works to be executed
for Ille con1ractor.
anotller contractor.

C7 The Contractor may as soon as

The Contractor practical after the receipt
as practical receipt of Tennination Notice
of the Termination demobilise all his
Notice demobilise
Equipment, unfixed materials,
Cons1ructional Plant and Equipment,
Constructional Jabour and others
materials, tools, labour from Ille
otllers from the Site.

C88
C After this termination of the Contract,
termination of Ille provisions
Con1ract, the provisions of Clause 661.3(\)(a),
of Clause 1.3(l)(a), (b), Clause
(t), (g) and (h) and Clause
(b), (d), (f),
61.4 will apply (with
61.4 the necessary
(with the changes where applicable).
necessary changes applicable).

© The Institution of Engineers,

Institution of Page66
Page of70
66 of 70
Malaysia
Malaysia
 /EM Form
IEM Form of
o/Contract
Contract : . /EM.CE 2011
JEM.CE2011
For Civil Engineering
For Civil Works
Engineering Works

Option Module
Option Module D: Mediation
Mediation

DI Where the provisions

Where of Module D apply, Clause
provisions of Clause 63.1
63.I can
can only
only be invoked
invoked after
after any of
of the
the following
following events
events
occurs:
first occurs:

(a) after the mediation does

the mediation does not result
result in aa settlement
settlement agreement
agreement entered
entered into
into by both
both the
the Employer
Employer and
and
the Contractor
the Contractor and
and the
the mediator decides to
mediator decides to terminate
terminate the
~e mediation
mediation process;
process; or

(b)
(b) if either
if either the
the Employer
Employer and
and the
the Contractor
Contractor decides, after the commencement
decides, after commencement of of mediation
mediation process,
process,
not to proceed with mediation
proceed with conveys that decision
mediation and conveys decision toto the
the other
other party writing; or
party in writing;

(c) both the

the Employer and the
Employer and the Contractor
Contractor agree
agree in writing
writing between
oetween themselves
themselves not
not to proceed
proceed with
with
mediation.
mediation.

D2 Either the Employer

Either Employer and the Contractor
Contractor can start mediation process
start the mediation process by one party sending a notice
party sending notice to the
the
other party
other of his
party of his intention
intention of
of referring
referring any
any dispute
dispute or difference
difference between
between them resolved with the
them to be resolved the
assistance of
assistance of aa mediator.
mediator.

D3 The mode
The mode of service of
of service of the notice Clause D2 can
notice in Clause can be either
either of
of the following:
the following:

(a) by AR Registered
Registered Post;
Post; or
or

(b)
(b) delivering a copy
by delivering copy ofof the notice
notice to the
the address
address as
as it appears
appears in the Articles of Agreement,
Articles of Agreement, or
orto the
to the
other party's
other party’s registered office or the site
registered office site office with an authorised
office with authorised representative
representative acknowledging
acknowledging its
receipt.

D4
D4 The parties
The parties may
may mutually
mutually agree
agree on
on the choice
choice of
of aa mediator. If they
mediator. If they are
are unable to agree
unable to agree on
on the choice
choice of
of aa
mediator, then the President
mediator, then President of
of The
The Institution of
of Engineers,
Engineers, Malaysia
Malaysia may appoint
appoint the
the mediator the
mediator on the
request of
request of the
the party
party who starts
starts the
the mediation
mediation process.
process.

D5
D5 The parties
The among themselves
parties among themselves or
or the
the chosen
chosen mediator
mediator with the
the agreement
agreement of
of the two
two parties
parties may choose
choose
either of
either of the following
following rules govern the
rules to govern the mediation
mediation process:

(a)
(a) Mediation Rules
the Mediation Rules published Lumpur Regional
published by Kuala Lumpur Centre for
Regional Centre for Arbitration;
Arbitration; or
or

(b) Mediation Rules published

the Mediation published by Construction
Construction Indusey Development Board,
Industry Development Board, Malaysia;
Malaysia; or

(c)
(c) the Mediation
the Mediation Rules
Rules published
published by Bar
Bar Council,
Council, Malaysia.
Malaysia.

D6 issue or difference
Any issue difference which
which is the subject matter
the subject of aa settlement agreement
matter of entered into between
agreement entered between the
Employer and the Contractor
Employer Contractor after
after the
the mediation
mediation process can no longer
process can longer be considered
considered as
as aa dispute
dispute or
or
difference between
difference the two
between the two parties
parties in
in Clause
Clause 63.1.
63.1.

', _J'
'

The Institution
© The Institution of
of Engineers,
Engineers, Page 67
Page 67 of
of70
70
Malaysia
Malaysia
IEM Form of
IEM Form ofContract
Contract IEM.CE2011
IEM.CE2011
For Civil Engineering
For Civil Works
Engineering Works

APPENDIX TO
APPENDIX TO THE
THE CONDITIONS OF CONTRACT
CONDITIONS OF CONTRACT

Brief Description
Brief Description Clause
Clause Provision
Provision

of direct
% of direct relevant
relevant costs and
and overhead
overhead costs
costs Clause 1.1(12)
Clause 1.1(12) (c)
(c) ...............................
....................... %%
representing head
representing head office overheads
overbeads·and
and (6% if
(6% none is stated)
if none stated)
financing costs
financing costs

Performance Security
Performance Security in % of Contract
% of Contract Sum
Sum Clause 10.1(3)
Clause l0.1(3) ....•••••••••.•••••••••••••••• %%
........................
(5% if
(5% none is stated)
if none stated)

All Risks
All Risks Insurance
Insurance Policy Clause 20A.l(4)
Clause 20A.1(4) or
or 20B.
20B.1(3)
1(3) RM ...••••.•...•.•••••.••••••
RM
Insured Sum
Insured Sum (Contract Sum
(Contract Sum is thethe
minimum value)
minimum value)

Third Party
Third Party Liability
Liability Clause 20A.l(5)or20B.l(4)
Clause 20A.1(5) or 20B.!(4) RM .•.••••..........•.•........
RM
Insured Sum
Insured Sum (If Contract
(If Contract Sum
Sum is less
than RM
than RM 20,000,000.00,
20,000,000.00,
then coverage
then coverage amount
amount is
RM 500,000.00,
RM 500,000.00, else
else
coverage amount
coverage amount is
RM 1,000,000.00)
RM 1,000,000.00)

Date for
Date for Commencement
Commencement Clause 37.1
Clause 37.l(l)(a)
(l)(a)

Liquidated Damages
Liquidated Damages Clause 46.1 (2)
Clause 46.1(2) RM .....................
RM ............................//day
day

Defects Liability
Defects Liability Period
Period Clause 48.1 (I)
Clause 48.1(1) .......................
..................... months
months
months if
(12 months none is
if none is
stated)
stated)

Contractor's Interim
Contractor’s Interim Clause 58.1(1)
Clause 58.1(1)
Payment Applications
Payment Applications (Monthly if
(Monthly none is
if none is stated)
stated)

Contractor's Interim
Contractor’s Interim Payment
Payment Applications:
Applications: Clause 58.1(4)
Clause (b)
58.1(4) (b) .•.••...•.••..•••.••........•.•• %
..........................................
of the costs
% of of materials
costs of materials on site
site (75% if
(75% none is stated)
if none stated)

Period of
Period of Honouring
Honouring Certificate
Certificate Clause 58.3(1)
Clause 58.3(1) .........••....•. days/months
............ days/months
(30 days if
(30 days if none is stated)
stated)

Rate of
Rate of Interest
Interest for
for overdue
overdue payments
payments Clause 58.3(5)
Clause 58.3(5) , ·································%
............................................ %
(6% if
(6% none is stated)
if none stated)

Retention Monies in %
Retention Monies of Certified
% of Certified Amount
Amount Clause 58.6(2)
Clause 58.6(2) ·······························%
.......................................... %
Interim Payment
in Interim Payment Certificates
Certificates (10% if
(10% if none
none is stated)
stated)

The Institution
© The Institution of
of Engineers,
Engineers, Page68
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68 of 70
Malaysia
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 IEM Fonn
/EM Form of Contract
ofContract IEM.CE2011
IEM. CE 2011
Civil Engineering
For Civil Works
Engineering Works

% of
Retention in % Contract Sum
of Contract
of Retention
Limit of Clause 58.6(4)
Clause 58.6(4)
·······························%
(5% if stated)
none is stated)
if none
%

Seat Arbitration
of Arbitration
Seat of 63.1(9)
Clause 63.1(9)
(The Institution
(The of
Institution of
Malaysia at
Engineers, Malaysia
Engineers,
Petaling Jaya if none is
Jaya if
stated)
stated)

Option Modules
Option Modules Clause I.I (23)
Clause 1.1(23) •• ...............................

Sections
Sections 1.1(29) & 49.1
Clauses 1.1(29)
Clauses

Description
Description Date for Completion
Date for Completion Liquidated Damages
Liquidated

l
1I. ........................... ........................... .. .
] ................. ./day
RM ......................./day

2
2. ··························· ··························· ··· ................../day
RM ......................./day

33.......................... .......................... ..... . RM .................. /day

.../day

~
4 ··························· ··························· ··· ................../day
RM ......................./day
RM

55. ··························· ··························· ··· ..................

RM ....................
RM /day
.../day

D
J Institutiori of
© The Institution
Malaysia
Malaysia
Engl~l~e'rs, -. -
of Engineers, Page69
Page of70
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,.,
I EM Form
/EM Form ofofContract
Contract IEM.CE2011
IEM.CE20U
For Civil
For Engineering Works
Civil Engineering Works

IEM Form
IEM Form ofof Contract
Contract
for Civil
for Civil Engineering
Engineering Works

PROFORMA
PROFORMA OF PERFORMANCE BOND
OF PERFORMANCE BOND

This
This Agreement
Agreement is dated
dated ................................. .

Parties to
Parties to the
the Agreement
Agreement
(!)
(1) (Company No.:
(Company No.: ....................)
is a company
company in~orporated
incorporated in
in Malaysia
Malaysia and
and has its registered
registered office
office at

................................................................................................................... (“Employer").
("Employer'').

(2)
(2) .......................................................................................... (Company
(Company No.: ....................))
is a company
company incorporated
incorporated in Malaysia
Malaysia and has·
has its registered
registered office at

.......................................................................................... .- ........................ (“Guarantor”).

("Guarantor'').

Background Agreement
Background to Agreement

(A) The Employer has awarded

The Employer awarded a contract
contract to
to .................................................................. .

("Contractor") for
(“Contractor") for the
the construction
construction and completion
completion of
of the project lmown and referred
project known referred to
to as

.................................................................................(called
(called in
in this
this Agreement
Agreement the “Contract”).
"Contract").

(B)
(B) A
A requirement
requirement ofof the Contract is such that
the Contract the Contractor
that the Contractor will have
have to
to provide aa guarantee
guarantee to the
the Employer
Employer as
security for the
security the Contractor’s
Contractor's performance
performance ofof the
the Contract.
Contract.

(CJ
(C) The Guarantor
The Guarantor is aa licensed
licensed bank operating in Malaysia
bank operating Malaysia has
has agreed
agreed to
to guarantee the Contractor’s
guarantee the Contractor's perfonnance
performance
of the
of the Contract.
Contract.

The Terms
The Terms

Based on the
Based the background given above,
background given above, the
the Guarantor
Guarantor agrees
agrees with
with the
the Employer follows:
Employer as follows:

I.
1. The Guarantor
The Guarantor must must pay to to the Employer
Employer aa sum sum of of Ringgit
Ringgit Malaysia:
Malaysia: .................................... .
(RM )
················································································································(RM···························)
only ifif and
only and when therethere is aa written
written demand
demand made made by the the Employer
Employer to to the
the Guarantor
Guarantor stating
stating that
that the
the Contractor
Contractor
has failed
has failed in his perfonnance
performance of of the Contract
Contract

2. Subject to the
Subject the requirement
requirement in Clause 3 below, Guarantor must
below, the Guarantor must pay to the
pay to the Employer Employer's
Employer upon the Employer’s
demand. This
demand. This is so even
even ifif there
there is
is any
any protest or disagreement
protest or disagreement that the
the Guarantor
Guarantor must
must not make
make any
payment the Employer.
payment to the Employer.

3.
3. The only
The only requirement
requirement that
that the
the Employer
Employer must
must exhibit
exhibit in his written
written demand
demand is that
that the written demand
demand must
be accompanied
accompanied by a Certificate
Certificate of
of Default (or a certified
Default (or certified trne copy of
true copy of this) Engineer of
this) issued by the Engineer of the
the
Contract.
Contract.

4. The Guarantor
The Guarantor is not
not discharged
discharged from his
his obligation
obligation stated
stated in this
this Agreement
Agreement even ififthere are changes
there are changes to
to the
the
Contract either
Contract with or without
either with without the knowledge agreement of
knowledge or agreement of the Guarantor.
Guarantor.

5. This Agreement carmot

This Agreement cannot be revoked
revoked by the
the Guarantor.
Guarantor.

6. This Agreement
This Agreement is valid and
and is binding Guarantor until ............ 7.,......................................
binding on the Guarantor (date)
................................................. (date)
any extension
or any extension given
given by the Guarantor to continue
the Guarantor continue its validity.
validity.

7. The Employer
The Employer must
must make
make any demand
demand on this Agreement
Agreement before
before the
the validity of this Agreement
validity of expires.
Agreement expires.

Signed by authorised
Signed authorised representatives
representatives of
of the
the Guarantor:
Guarantor:

((Name:
Name: ......................................... ) (Name: ......................................... )

The Institution
© The Institution of
of Engineers,
Engineers, Page 70 of
Page of70
70
Malaysia
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Copyright©
Copyright © 2017 Institution of Engineers,
2017 The institution Malaysia
Engineers, Malaysia
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All rights
rights reserved.
reserved. No part of
of this
this publication
publication or the information contained herein reproduced, stored in
be reproduced,
herein may be
prior written
otherwise, without prior
system, oorr transmitted
in a retrieval system,
publisher.
permission from the publisher.
[
n
by any means,
means, electronic,
electronic, mechanical, photocopying, recording or
mechanical, photocopying, or otherwise, written permission
1

Bangunan Ingenieur,
lngenieur, Lots-
Published by: The Institution
Published by:
Lots 60 & 62, Jalan
Institution of
Jalan 52/4, P.O.
P.O. Box
Malaysia
Engineers, Malaysia
of Engineers,
(Jalan Sultan),
Box 223 (Jalan 46720 Petaling
Sultan), 46720 Jaya, Selangor
Peta ling Jaya,
[
j
Tel: 03-7968 4001/4002
4001/4002 Fax: 03-7957 7678
Fax: 03-7957 ·ri
-~
E-mail: [email protected]
E-mail: http://myiem.org.my
Homepage: http://myiem.org.my

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