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The Malaysian Standard Form

BUILDING CONTRACT
(The PAM 1998 Form)
cJecono O0///01
Sundra Rajoo
Malayan Law Journal
Table of contents
Page
Dedications ii
Foreword 1 & 2 v
Preface and acknowledgments xi
Table of flowcharts xix
Table of cases xxi
DIVISION 1
Introduction 1
The making of the Malaysian Standard Form of
Building Contract 7
The philosophy of the Malaysian Standard Form
of Building Contract 14
The general law relating to the Malaysian Standard
Form of Building Contract 18
DIVISION 2
The Malaysian Standard Form of Building
Contract (PAM 1998 Form 'With
Quantities' Edition) 29
ARTICLES OF AGREEMENT 32
Article 1 Contractor's obligations 36
Article 2 Contract sum 37
Article 3 Identity of architect 38
Article 4 Identity of engineer and his functions
stated 46
Article 5 Identity of quantity surveyor and
his functions stated 47
xvi Table of contents
Article 6 Identity of specialist consultant and
Page
his functions stated 50
Article 7 Definitions 51
Attestation/Signatories of the parties 53
CONDITIONS OF CONTRACT 58
Clause 1.0 Contractors obligations 60
Clause 2.0 Architects instructions 70
Clause 3.0 Contract documents 78
Clause 4.0 Statutory obligations, notices, fees
and charges 86
Clause 5.0 Levels and setting out of the Works 91
Clause 6.0 Materials, goods and workmanship
to conform to description, testing
and inspection 94
Clause 7.0 Royalties and patent rights 100
Clause 8.0 Site agent 103
Clause 9.0 Access for architect to the Works 106
Clause 10.0 Site staff 109
Clause 11.0 Variations, provisional and prime
cost sums 114
Clause 12.0 Contract bills 125
Clause 13.0 Contract sum 132
Clause 14.0 Materials and goods unfixed or
off-site 135
Clause 15.0 Practical completion and defects
liability 140
Clause 16.0 Partial possession by employer 148
Clause 17.0 Assignment or sub-letting 153
Clause 18.0 Injury to persons or property and
employers indemnity 158
Clause 19.0 Insurance against injury to persons
and property 163
Clause 20.0 Insurance of Works against fire, etc. 168
Table of contents xvii
Page
Clause 21.0 Date of commencement, dates of
commencement given for sections,
postponement and completion date 179
Clause 22.0 Damage for non-completion 190
Clause 23.0 Extension of time 201
Clause 24.0 Loss and/or expense caused by
disturbance of regular progress
of Works 232
Clause 25.0 Determination by employer 244
Clause 26.0 Determination by contractor 261
Clause 27.0 Nominated sub-contractors 271
Clause 28.0 Nominated Suppliers 287
Clause 29.0 Artists and tradesmen 290
Clause 30.0 Certificates and payment 293
Clause 31.0 Outbreak of hostilities 311
Clause 32.0 War damage 314
Clause 33.0 Antiquities 317
Clause 34.0 Arbitration 320
Clause 35.0 Mediation 331
Appendix 333
The PAM 1998 Form 'Without Quantities' edition 335
DIVISION 3
Appendix
PAM Arbitration Rules
PAM Mediation Rules
PAM 1998 Form 'Without Quantities' edition
PAM 1998 Sub-Contract Form
PAM/ISM 1969 Form
339
344
348
387
409
Index 441
Table of flowcharts
Page
Flowchart 1 The PAM 1998 Form procurement
route 17
Flowchart 2 Clause 1.1: Contractor's obligation to
carry out and complete the work 68
Flowchart 3 Clause 1.2: Contractor's obligation if he
finds any discrepancy or
divergence between contract
documents 69
Flowchart 4 Clause 2.0: Architect's instructions (AI) 77
Flowchart 5 Clause 3.0: Contract documents 85
Flowchart 6 Clause 4.0: Statutory obligations, notes,
fees and charges 90
Flowchart 7 Clause 5.0: Levels and setting out of the
Works 93
Flowchart 8 Clause 6.0: Materials, goods and workman-
ship to conform to description, testing and
inspection 99
Flowchart 9 Clause 7.0: Royalties and patent rights 102
Flowchart 10 Clause 8.0: Site agent 105
Flowchart 11 Clause 9.0: Access for architect to the
Works 108
Flowchart 12 Clause 10.0: Site staff 113
Flowchart 13 Clause 11.0: Variations, provisional and
prime cost sums 124
Flowchart 14 Clause 12.0: Contract bills 131
Flowchart 15 Clause 13.0: Contract sum 134
Flowchart 16 Clause 14.0: Materials and goods unfixed
or off-site 139
xx Table of flowcharts
Flowchart 17
Flowchart 18
Flowchart 19
Flowchart 20
Flowchart 21
Flowchart 22
Flowchart 23
Flowchart 24
Flowchart 25
Flowchart 26
Flowchart 27
Flowchart 28
Flowchart 29
Flowchart 30
Flowchart 31
Flowchart 32
Flowchart 33
Page
Clause 15.0: Practical completion and
defects liability 147
Clause 16.0: Partial possession by
employer 152
Clause 17.0: Assignment or sub-letting 157
Clause 18.0: Injury to persons or
property and employer's
indemnity 162
Clause 19.0: Insurance against injury to
persons and property 167
Clause 21.0: Date of commencement,
dates of commencement given in sections,
post-ponement and date for
completion 189
Clause 22.0: Damages for non-completion 200
Clause 23.0: Extension of time (EOT)
contractor's duties 230
Clause 23.0: Extension of time (EOT)
architect's duties 231
Clause 24.0: Loss and/or expense
contractor's duties 242
Clause 24.0: Loss and/or expense
architect's duties 243
Clause 25.0: Determination by employer 260
Clause 26.0: Determination by contractor 270
Clause 29.0: Artists and tradesmen 292
Clause 31.0: Outbreak of hostilities 313
Clause 33.0: Antiquities 319
Clause 34.0: Arbitration general
outline of sequence 330

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