Clause 16.

0 Partial possession By Employer

16.1

Partial Possession By Employer

Accordance the proviso of this clause, the employer may take possession or occupy
certain part of the work which had completely done although there is no specific date for
completion of that part stated in the contractor unlike Sectional Completion Dates
under clause 21.3 which had specifically Completion Date of each section in the
contract. The Employer may possess occupy any part of completed work provided that
the parts had achieve the requirement for issuance of Certificate of Completion (CPC)
after obtain the consent of the contractor, which consent of the contractor cannot be
unreasonable delayed. After employer take possession on the part of the Works, the
proviso provided under sub clause 16.1(a), 16.1(b), 16.1(c), 16.1(d), 16.1 (e), 16.1(f)
should be apply.
Similar

to

clause

42.1

in

P.W.D

203(A)

16.1(a) Within fourteen 14 days from the date of possession of Occupied part has
taken by employer, the Architect should issue Certificate of Partial Completion
to the Occupied Part of the work which will serve the same purpose as
Certificate Of Practical Completion (CPC) under clause 15.0 .The certificate of
Partial Completion should including the approximate total value for the
occupied part which is estimated by the Architect for all the purpose of clause
16.0. The value stated in Certificate of Partial Completion deemed to be the
total value of the occupied part.
Example:
The Employer had taken possession for a part building on 1/4/2016, and the
estimated value for the occupied part of building is about RM1,500,000. The
Architect had issued the Certificate of Partial Completion on 13/4/2016, with
amount of RM 1,500,000 included in the certificate

Clause 16.0 Partial possession By Employer (contd)

16.1

Partial Possession By Employer (contd)

16.1(a)
Cont,d

Comparison between PAM 2006 and P.W.D 203A

PAM 2006
Clause

P.W.D 203 A
16.1(a) Clause

42.1

(a)

Within fourteen (14) Days from the date Within seven (7) day from the date of
of partial possession, the Architect shall partial possession by Government, the
issue

Certificate

of

Partial Superintending Officer (SO) shall issue a

Completion.

Certificate of Partial Occupation.

16.1 (b) The Defect Liability Period for Occupied part shall be commenced on the date
of employer taken possession of the occupied part instead of commence on
completion date stated in the contract for the purposes of Clauses 15.4, 15.5
and 16.1(f).
Similar to clause 42.1(b) in P.W.D 203(A)
Example:
The original completion data stated in the contract was 1/10/2016, but the
Certificate Of Partial Completion has been issue to the Occupied Part By
employer on 1/4/2016, the Defect Liability Period for the Occupied part
should be commencing on 1/4/2016 instead of 1/10/2016.

Clause 16.0 Partial possession By Employer (contd)

16.1

Partial Possession By Employer (contd)

16.1(C)

Upon issuance of Certificate of Partial Completion to the Occupied Part by

the employer, the Liquidated Damages under Clause 22.1 on this contract
should be reduce proportionally to the ratio of the total value of the Occupied
part

to

the

Similar

to

clause

total

contract

42.1(d)

in

sum.

P.W.D

203(A)

Example

The

Contract

Sum

of

the

contract

The

certified

value

of

Occupied

is

Part

RM
is

1,000,000

RM

200,000

The Liquidated Damage per Day stated in contract = RM 500 per day
RM
RM

200,000/
500-

RM
0.2x

1,000,000=
RM500)

0.2

RM

400

The new liquidated Damage per day after partial completion = RM 400 per
16.1(d)

day
Within 14 day upon issuance Certificate of Partial completion for the
Occupied Part by employer, the architect should issue the certificate to release
half of the Retention Fund which is equal to 2.5% of estimated value for the
Occupied part. Upon issuance of certificate to release retention fund by
Architect, the payment should release to the contractor within the Period of
Honouring Certificate as stated in the contract. Beside, limit of retention fund
that will retain from interim certificate payment to the contractor should be
reducing proportionally accordance to the ratio of value of occupied part to
the

total

contract

amount

of

This Clause is peculiar in PAM 2006 (With Quantities).

the

contract.

Clause 16.0 Partial possession By Employer (contd)

16.1

Partial Possession By Employer (contd)

16.1(d) Example

Contd

Sum=

The

Original

The

limit

The

value

contract

of

retention
of

fun,

occupied

Rm

5%

work

=
=

1,000,000
RM
RM

50,000
500,000

The amount of retention fund release for occupied part ,2.5%

2.5%

RM

500,000

RM

12,500

The new limit of retention fund, after Certificate of Partial Completion before
CMGD
=

RM

50,00-

RM

12,500

= RM 37,500
16.1(e ) The Defect liability period for the Occupied Part of building will start upon
issuance of Certificate of Partial Completion to the Occupied part. Upon
expiration of Defect Liability Period for the occupied part, if in the
justification of architect all the defect in occupied part that required making
good that specified under Clause 15.4 and Clause 15.5 have been made good,
the Architect shall issue the Certificate of Making Good Defect (CMGD)
under

clause

15.6

to

the

Occupied

Part

of

building.

Similar to clause 42.1(c) in P.W.D 203(A)

Example:
On 4/1/2017 which is the end of the Defect Liability Period for Occupied part,
the architect had justify all the defect in occupied part that required making
good that specified under Clause -+15.4 and Clause 15.5 have been made
good. In this case, the architect will issue the Certificate of Making Good
(CMGD) under Clause 15.6 for the occupied part of building although other
part of building may still under the Defect Liability Period (DLP).

Clause 16.0 Partial possession By Employer (contd)

16.1

Partial Possession By Employer (contd)

16.1 (f) Within fourteen (14) days upon issuance of the Certificate Of Making Good
Defects to the Occupied part of building, the architect shall issue the
certificate to release the another half of retention fund which is equal to 2.5%
of estimated value of the occupied building. The payment should be release to
the contractor within the Period of Honouring Certificate as stated in the
contract. Upon Issuance of CMGD for the occupied part, the liability and
responsibility of the contractor under clause 15.3, 15.4,15.5 for the Occupied
Part has been ended
This Clause is peculiar in PAM 2006 (With Quantities).
Example:
The Defect Liability Period for Occupied part which have the value of RM
1,000,000 is ended on 1/3/2016, the architect had site inspection and certify
that every defect in occupied part that required to made good that specified
under Clause 15.4 and Clause 15.5 have been made good. The architect shall
issue Certificate of Making Good Defects to the contractor and also a
certificate to release another half retention fund which is equal to 2.5% of
value of the work. In this case, the contractor entitled payment with the
amount of RM 25,000 from the retention fund after issuance of Certificate Of
Making Good Defect (CMGD).

Clause 16.0 Partial possession By Employer (contd)

16.2

Possession of Occupied Part without consent

The Employer take over the part which has been completed in the building without the
consent of contractor under Clause 16.1 as long such possession does not prejudice to
any other right and remedies which he may possess under the contract and the condition
provided under sub clause 16.2(a) and 16.2(b) has been fulfilled.
This Clause is peculiar in PAM 2006 (With Quantities).
Example:
In a contract, the Certificate of Non Completion has been issue to the contractor due to
delay of completion beyond the completion date stated in the contract without Extension
Of Time (EOT) granted. In this case, the employer may take possession of completed
part without consent of the contractor as long the possession of the works would not
disturb the remaining work progress of contractor as stated in clause 16.2(b)
16.2 (a)

The completion of work has been delayed by the contractor without Extension
of time (EOT) provided and the Certificate Of Non Completion under clause
16.1 has been Issue by Architect to the contractor.
This Clause is peculiar in PAM 2006 (With Quantities).

16.2 (b) The partial possession by the employer will not affect the progress of
contractors remaining work in the site and cause any delay to the remaining
work of contractor.
This Clause is peculiar in PAM 2006 (With Quantities).

Clause 16.0 Partial possession By Employer (contd)

Contractor to remove equipment
If the Employer had taken Partial possession of the Occupied Part under Clause 16.1 or
16.3

clause 16.2, the contractor shall clear and remove site facilities, construction plant or
equipment, materials and goods from the occupied part when written instruction has
been

issue

by

the

This Clause is peculiar in PAM 2006 (With Quantities).

Architect.