Question 1 (25 marks)

In a building project, the Architect, as the S.O is expected to make decision throughout the
Contract Period in accordance with the provisions of PAM’s Agreement and Conditions of
Building Contract, which empowers the Architect to act in the implementation of the Building
Contract.

How would you advise on the following cases with a brief explanation for each:

(a) What are preliminaries? (3 marks)

The purpose of preliminaries section in BQ is to provide information, particulars, general

obligations and liabilities, etc of the project concern to tenderers, who should then price for the
various items provided under this section. Thus, preliminaries are normally priced by the
tenderers separately from trade or elemental bil, which are integral parts of the BQ.

(b) Is the Main Contractor responsible for the defects of the Nominated Sub-contractor? (3 marks)

Yes. Under Pam Contract sub-clause 27.9, the contractor shall be fully responsible to ensure all
NSC carry out the sub-contract works in accordance to Nominated Sub-Contract.

(c) The Main Contractor’s works is delayed by several domestic sub-contractors and as a result,
the Main Contractor has to pay Liquidated Damages (LD) to the employer.

Can the Main Contractor request the Architect to apportion the amount of LD that he has to pay
among the defaulting domestic Sub-contractor? (3 marks)

(d) What are the roles of the architect under the building contract? (3 marks)

The architect has to ensure that the contract is administered fairly between both Contractual
Parties. For an instance, if there are any errors in the contract bills, either in terms of
description, quantity or by omission, architect has to correct such errors. At this point, architect
should be the administrator of the contract between both parties. Apart from administering the
Building Contract to ensure that works get completed according to plan, the most important task
of an Architect is is in conceptualizing the building followed by producing and managing the
information required to construct the works.
(e) If there is an obstruction on site, list the steps to be taken and the architect’s advice to his
client. (4 marks)

(f) What happen if there is a delay in site possession? (3 marks)

When the employer fails to give possession of the site to the contractor on or before the date
stated within the contract, it is a breach of contract and, if the failure to give possession
continues for any significant time, it will be a material of the contract. This is because without
possession of the site the contractor cannot execute the works under the contract. Therefore, the
contractor could claim damages at common law for any loss actually incurred. At this point,
architect could issue a postponement or similar instruction under the contract.

Under sub-clause 21.1, if there is a delay by the employer in giving possessions of the site to
contractor, architect shall grant an extension of time under clause 23.8(F).

(g) Which clause empower architect to instruct contractor to work diligently; in the event the
contractor is behind schedule? And what to do if contractor failed to do so? (3 marks)

Under clause 2.0 Architect’s Instruction, the contractor shall subject to sub-clause 2.2 and 2.3
forthwith comply with all instructions issued to him by the Architect in regards to any matter in
respect of which the Architect is expressly empowered by these conditions to issue instructions.
Besides, the sub-clause 2.4 failure of contractor to comply with AI, if the time of compliance
(which shall not less than days from receipt of AI) is stated by architect in the AI, the contractor
may posses under the contract, employ and pay other person to execute any work which may be
necessary to give effect to such instruction. The cost of employing other person and any
additional cost in this connection shall be set-off by the employer under clause 30.4.

The sub-clause 6.7 failure of contractor to comply, if the contractor fails or refuses to comply
with a written instruction of the architect issued under sub-clause 6.5, the employer may employ
and pay other person to carry out the subject matter of written instruction. All costs and loss
shall be set off.

(h) What is variation order? (3 marks)

Variation works define as any work alteration may simply be an addition to an existing order in
terms of alterations to design, quantity, quality, modification in sequencing of work, and
working condition alterations including adding, omit, substitute or remove of works. Variation
orders affect not only the cost of the project, and may affect completion dates as well. All
variation works need instruction by the architect through Architect’s Instruction (AI). Under
clause 11.1, the term “variation” means the alterations or modification of design, quality or
quantity of the works including:
a) addition, omission or substitution of any work

b) alteration of kind or standard of any materials and goods

c) removal from Site any work executed or materials and goods brought thereon for the purposes
of the Works

d) any changes to the provisions in the contract with regards to:

i) any limitation of working hours

ii) working space

iii) access to or utilization of any specific part of the Site

iv) the execution and completion of the work in any specific order

Question 2 (25 marks)

(a) Under the PAM Form of Contract, you are required to issue the defects list to the Contractor
after the expiration of the Defects Liability Period:

i. Client comes to you and wanted to add extra items to a list of final defects you issued 2 days
before expiry of DLP. Should you entertain your client? (3 marks)

Under the PAM contract sub-clause 15.3, it allows the Architect to issue instructions requiring
any defects, shrinkages or other faults appearing within DLP due to materials or workmanship
not in accordance with the Contract. Such instruction for rectifying defects, shrinkages or other
faults can no longer be issued after 14 days from expiry of the DLP. Therefore, yes, we should as
architect may at any time during the Defects Liability Period issue an AI requiring any critical
defects under PAM contract sub-clause 15.4.

ii. After having issued the defects list but before the issuance of the Certificate of Making Good
Defects, further latent defects came into light. What would be your action? (5 marks)

(b) In drafting a letter of Award, state the main components and specific conditions to be included
in making the award binding based on the standard PAM Form of Agreement and Conditions of
Building Contract with Quantities. (8 marks)

In drafting a letter of award, the main components in in making the award binding based on the
standard PAM Form of Agreement and Conditions of Building Contract with Quantities are:

i) Title of the development proposal in Malay,

etc: CADANGAN MENDIRIKAN SEBUAH PEJABAT DAN MAKMAL 3
TINGKAT, DI ATAS LOT 15834 MEDAN BAYAN LEPAS
ii) Contract Sum
The Contract Sum shall be a fixed lump sum based on the contract drawings and
specifications.

iii) Contract Period

Possession of the site for commencement of the Works

iv) Prime Cost and Provisional Sums

v) Contract Documents & Correspondences
-the letter of award
-the article of agreement
-the conditions of contract
-the contract drawings
-the contract bills
-other documents incorporated the contract document

vi) Performance Bond

-equivalent to 5% of Contract Sum for the due performance and fulfilment of the
Contract

vii) Insurances
- All insurance taken out under the Contract shall strictly adhere to the full
requirements provided in the Tender Documents including maintenance of the
Defects Liability Period from the Date of Practical Completion.

viii) Contract Agreement

ix) Survey Requirements
x) Site Agent Employment
-You shall provide at least one (1) full time competent and experienced site agent to
be approved by the Architect
xi) Employment of Foreign Workers
xii) Other Contractors On Site
xiii) Area of Operations And Access
xiv) Safety Regulations
xv) CIDB Registration and Levy
-The Contractor is required to be registered with the Construction Industry
Development Board (CIDB) and shall be responsible to pay all fees and levies in
connection and submit a copy of the CIDB registration and receipt of fees and levies
to the Architect.
xvi) Abatement of Pollution
The works shall be carried out in such a manner as to minimise noise, vibration, dust,
smoke and other nuisance that may disturb the occupants of adjoining properties and
the public.
 xvii) Protection of adjacent Properties
You shall take all necessary precautions to protect adjacent properties from damages,
nuisance and noise and dust pollution
xviii) Acceptance of site
xix) Certificate of Completion and Compliance
You shall prepare, and shall cause all your Sub-Contractors to prepare four (4) sets of
the Certification of Completion and Compliance forms and drawings at all stages of
Works to be signed and endorsed by relevant Consultants and the Contractor in
accordance with the checklist provided in the Tender Documents.

(c) Explain the significance of the following event:

i. Architect’s Certificate of Practical Completion (3 marks)

The Agreement and Conditions of PAM Contract 2006 (with or without quantities) states that
Practical Completion or Practically Completed means the state of completion described in Clause
15.1 of the Conditions of Contract and that a Certificate of Practical Completion means a
certificate issued under Clause 15.2 of the Conditions of Contract.

The Certificate of Practical Completion is the document which also initiates such events as the
release of the first moiety of retention, exclusion of liability for Liquidated and Ascertained
Damages and changes in obligations in respect of insurance for the Works is by no means a
coincidence in the frequency of disputes which question the date the works did indeed reach
practical completion.

ii. Delivery of Vacant Possession by the Developer (3 marks)

iii. Architect’s issuance of the Certificate of Completion and Compliance (CCC) for the building
(3 marks)