HALF DAY SEMINAR ON

PAM CONTRACT 2018

- CHANGES AND IMPLICATIONS ON QSs
On
Thursday, 8th November 2018
Presented by
Sr ONG HOCK TEK
Arbitrator/AdjudicatorIMediatorIReg.QS
Cert.ConstrPMNM Practitioner/Master Trainer
BSc(Hons) MSc MBA DipM Dip/CArb MM/M M/VMM M/VMA
FC/OB FR/CS FC/nstCES FC/Arb FSIArb FMIArb FMSAdj FRISM ICECA

Director
BK Entrusty
B{AsiaPacific
+NTRUSTY

PROGRAMME
8.30 9.00 am Registration
9.00 - 10.30 am Session A:
PAM Main Contract - Changes & Implications
10.30-10.45 am Break
10.45-11.45 am Walk Through Nippon Paint Forward Coating Expo
11.45 - 1.15 pm Session B:
PAM 2018 (With Quantities vs Without Quantities)
Session C:
PAM Subcontract 2018
1.15 - 1.30 pm Q& A Session
1.30 pm Lunch
 A. PAM Main • PAM initiated a review and improvement to its PAM Form 2006
Contract taking into consideration of feedback and issues raised by
(Changes & stakeholders and changes in the construction industry.
Implications) • The review Sub-committee, set up in Aug 15, was tasked to
- Background update and improve it.
• Several issues were raised :

r CIPAA , Determination (incl. payment)

,. EDT (incl. Relevant Event) , Retention Sum
);- Document transmission , ADR (incl. Mediation, Expert
,.. GST Determination, Adjudication &
,.. Copies of Document Arbitration)
, Performance Bond

RISM as Seminar - PAM Contract 2018 - Chanoes & ImDlications bv Sr H.T On - a Nov2018

A. PAM Main • Association of Consulting Engineers Malaysia (ACEM)

Contract
(Changes & • Royal Institution of Surveyors Malaysia (RISM)
Implications) • Real Estate Development and Housing Association Malaysia
- Responded (REHDA)
Stakeholders
• Master Builders Association Malaysia (MBAM)
• BK Entrusty
• AI-Ambia Sdn Bhd

.B{AsiaPacific
+NTRUSTY
RISM as Seminar - PAM Contract 2018 _ ChanQ9S & 1m lications bv Sr H.T On - 8 Nov 2018
4
A. PAM Main PAM Contract 2018
,
Contract !ArticI& 7(ag)
(Changes & ; Limit of Retention Fund means the
Implications) , amount as stated in the Appendix
under Clause 30.5
- Article 7 k~~~0cf~~{r~~~L>:· ,. ;T~.rt""(;&:"~"e j
<

Service Provider means any company or

Service Provider means any company body authorised to provide water,
or body authorised to provide water, electricity, telecommunication, sewerage
electricity, telephone, sewerage and and other related services;
other related services;

• Change is made on definition of Service Provider under Article 7(ay) PAM Contract
2006 (which now Articles 7(ax) of PAM Contract 2018), where the word "telephone" is
now replaced with "telecommunication"
QSDMsion , Gives a broader meaning to Service Provider roles, not only limited to telephone
but expanded to include internet, wireless system and other telecommunication
B{AsiaPacific means.
+NTRtf5TY

A. PAM Main PAM comract 2006

Contract 1 Immediately after the execution of i Within fourteen (14) Days after the award of the
(Changes & i the Contract, the Architect or Contract or on any date after the award as agreed
: Quantity Surveyor shall without between the Architect and the Contractor, the
Implications) , charge to the Contractor provide Architect or Quantity Surveyor shall without charge to
- Contract him with: the Contractorprovide him with:
Documents, . a) one of the two signed original a) two (2) copies of the Contract Drawings; and
Programme & As- copies of the Contract b) two (2) copies of the unpriced Contract Bills.
Documents; Within fourteen (14) Days after the execution of
Built Drawings
b) two (2) further copies of the; the Contract, the Architect or Quantity Surveyor
- C13.3 Contract Dra~ng~; and . shall also without charge to the Contractor
Copies of c) two (2) copies of the unpriced : provide. him with one. (1) signed copy of the
Documents Contract Bills. _ l..C=-o;:;n:.:.:t::.ta::.:ct:.;::.:D:;..::o:;..::c~u::.:m::.;e:.:.n:.::ts:::;:.
.....

• Amended cl. 3.3 (Copies of documents) where Architect and/or QS must provide

• QSOMsion

B<AsiaPacific
+NTRUSTY
Contract Drawings and unpriced Contract Bills to Contractor within 14 days after
Contract award.
Timeframe of 14 days is introduced to ensure such documents are provided to
the Contractor.
Failure or delay to do so, Contractor is entitled for Extension of Time
(cl. 23.8(e)) and Loss and Expense (cl. 24.3(a)), both are new events added.
A. PAM Main
Contract any changes to the provisions in the any changes to the provisions in the
Contract with regards to: Contract with regards to:
(Changes & d(i) any limitation of working hours; d(i) any limitation of working hours;
Implications) d(ii) working space; d(ii) working space;
- Variations, d(iii) access to or utilisation of any d(iii) access to or utilisation of any
specific part of the Site; and specific part of the Site; and
Provisional &
d(iv) the execution and completion of d(iv) the execution and completion of the
Prime Cost Sums work in any specific order; and
the work in any specific order.
- C111.1 (d) d(v) the execution of temporary
Definition of works.

• Variation definition under amended ct. 11.1 is now expanded to include

the changing of execution of temporary works.

BIj ASI·aP~r.,~·>
'",", au!
l

+NTRUSTY
·8 Nov2018

A. PAM Main PAM Contract 2018

Contract
i All Variations shall be All Variations shall be measured and valued by the Quantity!
(Changes & Surveyor. Upon completion of the Variations, the Contractor
measured and valued by
Implications) the Quantity Surveyor. shall submit complete details and particulars as required by the
- Variations, Where any recording of Architect and Quantity Surveyor for valuation of Variations.
site information and/or Where any recording of site information and/or site
Provisional & measurements are carried out at the Site, the Contractor shall
Prime Cost Sums Site measurements are provide the Quantity Surveyor with such assistance as may be
carried out at the Site,
- C111.5 the Contractor shall necessary to carry out the works and the Contractor shall be
Valuation of provide the Quantity given the opportunity to be present to take such notes and
Variations and Surveyor with such measurementsas he may require. If the Quantity Surveyor is of
assistance as may be the opinion that the details and particulars submitted by the
Provisional Sum
necessary to carry out Contractor are insufficient to enable him to carry out the
r the works and the measurementand valuation,the Quantity Surveyor shall within l
! Contractor shall be given i eight (2~) Days from of .
I the.. opportunity to be! sulomiSsion inf()fm him ()f any
uire tfie Contractor to
rt.. "i"i'''"~·\1
....i..'if:~~;;..
! present to take such!
QS~ ~n~
L~~~~ 1]"!~~suremElnt.:
j as fie may require. ..>.! :
U,"'TIC'''''''''''' within a
f . -- ----- --

B{AsiaPaciflc
+NTRUSTY
A. PAM Main • Valuation of Variation amended cl. 11.5 requires Contractor to submit
Contract complete Variation details and particulars upon completion.
(Changes &
Contractor to submit additional details, if found insufficient by OS,
Implications)
- Variations, within 28 days of its submission.
Provisional & Contractorthen to submit such details within 28 days to as.
Prime Cost Sums as shall then measure and value Variations within 30 days or
-CI11.5 extended date as agreed by Architect and Contractor.
Valuation of
No express provision of any effect if as fails to measure and value
Variations and
Provisional Sum variations within the time frame.
Apart from breach of contract term, can be implied professional
incompetenceor negligence.
All submitted Variations need to be measured and valued
progressively throughout Project period, rather than at the end of
QSDMsion
the project, as commonly practiced.
B{AsiaPac!fi;=
+NTRUSTY
RISM as Seminar- PAMContract2018· Chan es & t

A. PAM Main PAIl 2006

! The valuation of Variations and of work i I The valuation of Variations and work executed
Contract
executed by the Contractor for which a
(Changes & provisional sum is included in the Contract
Implications) and the expenditure of Provisional Sums
- Variations, (other than for work for which a tender had
been accepted under Clause 27.14) shall
Provisional & be made in accordance with the following
Prime Cost rules:
11.6(a) ...
Sums 11.6(f) in respect of Provisional Quantity,
- CI11.6(f) the quantities stated in the Contract
Variation Rules Documents shall be re-measured by the
Quantity Surveyor based on the actual
quantities executed. The rates and prices
in the Contract Documentsshall determine
their valuations.
. i by the Contractor for which a Provisional
. Quantity is included in the Contract and the
i expenditure of Provisional Sums (other than for
! work for which a tender had been accepted
: under Clause 27.14) shall be made in
! accordancewith the following rules:
i 11.6(a) .....
' 11.6(f) in respect of Provisional Quantities, the
i quantities stated in the Contract Documents
! shall be re-measured by the Quantity Surveyor
I based on the actual quantities executed within
f sixty (60) Days after the said works are
i c9mpleted. The rates and prices in the
. Contract Documents shall determine their
i
, valuations.

QSOivIsion • ,~------------------------~
Amended cl. 11.6(f), Valuation Rules in respect of Provisional Quantities, requires
QS to re-measure based on actual quantities executed within 60 days after the
B{AsiaPacific said works are completed.

+NTRUSIY • Extent of Provisional Quantities works will determine time required to complete the
re-measurement, whether within 60 days is sufficient.
A. PAM Main PAM COntract 2018
Contract As soon as the Architect and Quantity
As soon as the Architect has
(Changes & ; ascertained the amount of Surveyor have ascertainedthe amount of
Implications) Variations and/or additional Variations and/or additional expenses
- Variations, expensesclaimedby the Contractor claimedby the ContractorunderClause11.7,
Provisional & under Clause 11.7, the amountso the amountso ascertainedshall be addedto
Prime Cost Sums ascertainedshall be added to the the Contract Sum. When an Interim
- C111.9 Contract Sum. When an Interim Certificate is issued after the date of
Variations and CertifjC<:ite
is issuedafterthe dateof ascertainment, suchamountshallbe included
additional expenses ascertainment,such amount shall in thecertificate.
added to Contract be includedin the certificate.

• Amended cl. 11.9, is now added OS in addition to Architect in

ascertained the Variation amount.
QSOMsion
• Recognised the OS role in ascertainment of Variations and/or
B{AsiaPacific Additional Expenses claimed by the Contractor.

+NTRUSTY

A. PAM Main PAMC~2006

Contract (Changes When the whole Works are Practically: When the whole of the Works are Practically
& Implications) Completed, the Contractor shall forthwith . I Co~pleted, the Contractor shall.forthwith give wri.tt~n
- Practical give written notice to that effect to the ,notice to that effect to the Architect who shall Within
Architect who shall within fourteen (14) Days : fourteen (14) Days do either one of the following:
Completion & do either one of the following: !
Defect Liability 1 15.2(a) if the Architect is of the opinion that the

- CI1S.2(a) 15.2(a) if the Architect is of the opinion that i Works are not Practically Completed under Clause
the Works are not Practically Completed i 15,.1" tile Architect shall give written notice to, the
Certificate of under Clause 15.1, the Architect shall, give i Contractor with copy extended to the Nominated
Practical written notice to the Contractor with copy I SutJ:.Contractorsstating the reasons for his opinion
Completion extended to the Nominated sub-contractors I and specifying the works that are incomplete
~
stating the reasons for his opinion; or I and/or the conditions
~;~:c~o~m~e~li~e~d~w~it~h~;o~r
that have not been
____

• Under amended cl. 15.2(a), now requires Architect to "specifying the

works that are incomplete and/or the conditions that have not: been
complied with" in addition to previous requirement of giving reason f()r
~~ Qi,S..9l?lnion
for the non-completion.
B{AsiaPacific ,_. Eliminates/reduces ambiguity and better/clear details by stating works are
incomplete and which conditions not complied with.
• NTRUSTY ,_. Lessen the difference/dispute arising from CPC.
A. PAM Main
Contract If at any time before Practical Completion of the Works,
(Changes & the Employer wishes to take possession and occupy
any part of the Works("the Occupied Part") and the
Implications) consent of the Contractor (whose consent shall not be
- Partial unreasonably delayed or withheld) has been obtained,
then notwithstanding anything expressed or implied
Possession By elsewhere in the Contract, the Employer may take
Employer possession of the Occupied Part and the following shall
apply:
-CI16.1(d) 16.1(a) ...
Possession of 16.1(d) upon the issuance of the Certificate of Partial
Completion, the Architect shall within fourteen (14)
Occupied Part Days issue a certificate to release half the amount of the
with consent Retention Fund in the ratio of the estimated value of the
Occupied Part to the Contract Sum. The Contractor
shall be entitled to payment within the Period Honouring
Certificates. The amount of the Limit of Retention
Fund shall then be reduced by the same amount; >(
Note: The highlighted--~~~Te~~~~~~di~PAM 20'06is-d~l~tedin PAM 2018
PAIl Contract 2018
. If at any time before Practical Completion of the·
Works, the Employer wishes to take possession
and occupy any part of the Works ("the Occupied
,Part") and the consent of the Contractor (whose
consent shall not be unreasonably delayed or
withheld) has been obtained, then notwithstanding
anything expressed or implied elsewhere in the
Contract, the Employer may take possession of
the Occupied Part and the following shall apply:
16.1(a) ...
16.1(d) upon the issuance of the Certificate of
Partial Completion, the Architect shall within
fourteen (14) Days issue a certificate to release
half the amount of the Retention Fund in the ratio
of the estimated value of the Occupied Part to the
Contract Sum. The Contractor shall be entitled to
payment within the Period of Honouring
Certificates;
-",.----~.-----'-..

QSDMsion
• No longer have limit to Retention Fund (usually 5%). /
B{AsiaPacr • Only one percentage of total value works, materials and goods in Appendix of
Percentage of Certified Value Retained. /
• See also cl. 30.5 on Retention Fund.

A. PAM Main PAM contract 2OD6

Contract (Changes
& Implications) When the Contractor has submitted sufficient
the Contractor has
particulars for the Architect's consideration, the
- Extension of particulars for the Architect's consideration, the
Architect shall subject to Clauses 23.5, 23.6 and
Architect shall subject to Clause 23.5, 23.6 and 23.8,
Time (EOT) consider the Contractor's submission and shall either
23.8, consider the Contractor's submission and
shall either reject the Contractor's application with
- CI 23.4 reject the Contractor's application or issue a Certificate
reasons or issue a Certificate of Extension of Time
of Extension of Time within six (6) Weeks from the
Certificate of receipt of sufficient particulars. The Architect may
with details within six (6) Weeks from the receipt of
Extension of Time sufficient particulars. The Architect may issue the
issue the written notice of rejection or the Certificate of
written notice of rejection or the Certificate of
Extension of Time before or after the Completion Date.
- CI. 23.6 Extension of Time before or after the Completion
Contractor to Date.

prevent delay The Contractor shall constantly use his best

ende?~our to prevent or reduce ~7lay i? the. progress
oftp.~ Wqrks, and to do all that may reasqnably

•
re9Pi[t3,d.10i the satisfaction of !he.i Architect to
Pl'E!vert.and reduce delay or further. ~Ellay in the
completion of the Works beyond the Completion Date.

QSDMsion • Amended cl, 23.4 requires Architect to provide reasons of his rejection of Contractor's EOT
submission. ".
B{AsiaPacific ;.. If Architect issue a Certificate of EOT, he/she needs to provides details.
• Amended cl, 23.6 - no longer requires Contractor to prevent or reduce delay to the satisfaction of
+NTRUSTY the Architect.
A. PAM Main
Contract Where a Relevant Event occurs after the
Where a Relevant Event occurs after
(Changes & issuance of the Certificate of Non-
the issuance of the Certificate of
Implications) Completion, the Architect shall, subject
Non-Completion, the Architect shall
- Extension of Time to Clauses 23.1 to 23.7, grant an
grant an extension of time. The
(EOT) extension of time. The extension of time
extension of time granted shall be
- C123.9 '.granted shall be added to the
added to the Completion Date of the
Extension of time 'Completion Date of the Works or any
Works or any section of the Works.
after the issuance of : section of the Works.
Certificate of Non-
Completion • Amended cl, 23.9 expressly provides for granting EOT subject to cl. 23.1 to
23.7, which includes:
CI. 23.1 - Submission of notice and particulars for extension of time;

• QSDMsion

B{AsiaPacific
+NTRUSTY
CI. 23.2 - Delay by Nominated Sub-Contractor;
CI. 23.3 - Insufficient information;
CI. 23.4 - Certificate of Extension of Time;
CI. 23.5 - Other consideration for extension of time;
CI. 23.6 - Contractor to prevent delay; and
CI. 23.7 - Notification to Nominated Sub-Contractors
RISM as Seminar- PAMContmct2018 - Cha

A. PAM Main PAM Contract 2018

Contract The Architect may (but not obliged to) within twelve I
The Architect may within twelve (12) Weeks after the i
(Changes & (12) Weeks after the date of Practical Completion I
date of. Practical Completion review and fix a!
review and fix a Completion Date later than that : Completion Date later than that previously fixed, if in
Implications) previous fixed, if in his opinion the fixing of such later i
his opinion the fixing of such later Completion Date is
_Extension of Time Completion Date is fair and reasonable having regard i
fair and reasonable having regard to any of the
(EOT) to any of the Relevant Events, whether upon reviewing ; Relevant Events, whether upon reviewing a previous
a previous decision or otherwise and whether or not a j decision or otherwise and whether or not a Relevant
- CI 23.10 Relevant Event has been specifically notified by the 1 Event has been specifically notified by the Contractor
Architect's review of Contractor under Clause 23.1.No such final review of i under Clause 23.1. No such final review of extension
extension of time ; extension of time shall result in a decrease in any I
of time shall result in a decrease in any extension of
after Practical ; extension of time already granted by the Architect. In I
time already granted by the Architect. In the event
I the event the fixing of such later Completion Date ] the fixing of such later Completion Date affects the
Completion . affects the amount of Liquidated Damages the I amount of Liquidated Damages the Employer is
I !
Employer is entitled to retain, he shall repay any L:nt1tl~d to.r.elain, he shall repay any surplus amount
I surpl~s amount to the Contractor within the Period of ; lt~.~~
..
Contractor within the Period. of Honouring
I HOfl9~ring·sertifica.tes! • •.... • ,j t~~~~tes. >{>. ... .'
Note: The highlighted sentence in red in PAM 2006 is deleted in PAM 2018 . . - ..
• Underamendedcl. 23.10,Architectmay reviewEOT after PracticalCompletion.
QSDMsIM
;;.. The deletedword "but not obliged to" which has no significantchange on
Q{AsiaPacific the provisionmeaningas the word "may"itself carry similarmeaning.
However,with such omission, it can suggest that PAM may want to move
+NTRUSTY closerto ensurethe Architectcarriesout the EaT review.
A. PAM Main • PAM Contract 2018 added a new Relevant Event to the
Contract
Extension of Time and Loss and Expense Clauses, as follow;
(Changes &
Implications) CI. 23.8(e) the Contractor not having received in due time the
- Extension of Time necessary documents under Clauses3.3(a) and 3.3(b);
(EOT) &
Loss and/or
Expense CI.24.3(a) the Contractor not having received in due time the
necessary documents under Clauses3.3(a) and 3.3(b);

QSDMsion

B{AsiaPac::fic
+N"rRUSTY
RISM as Seminar - PAM Contract 2018 -Chan as & tmcrcetcne bv SrH.T oee . 8 Nov 2018 17

PAM Contract 2018

A. PAM Main
the Contractor shall allow or pay to the
Contract
Employerall cost incurred to complete the
(Changes & Works including all loss and/or expense
Implications) suffered by the Employer. Until after the
completion of the Works under Clause
- Determination 25.4(a),the Employershall not be bound by
- CI 25.4(d) any provision in the Contract to make any
furtherpaymentsto the Contractor,including
Rights and paymentswhich have been certified but not
duties of yet paid when the employment of the
Contractor was determined. Upon
Employer and
completionof the Works, an account taking ,
Contractor in considerationthe value of works carried
out by the Contractor and all cost incurred
by the Employer to complete the Works
the Contractorshall allowor pay to the Employer
all cost incurredto completethe Works including
all loss and/or expense suffered by the
Employer. Until after the completion of the
Works under Clause25.4(a),the Employershall
not be boundby any provisionin the Contractto
make any further payment to the Contractor,
including payments which have been certified
but not yet due but excluding payments
which have been certified and are due but
remain unpaid when the employment of the
Contractorwas determined.Upon completionof
the Works, an accounttaking into consideration
the value of works carriedout by the Contractor
and all cost incurred by the Employer to

•
including loss and/or expense suffered by complete the Works including loss and/or
the Employershall be incorporatedin a final expense suffered by the Employer shall be
accountprepaidin accordancewith Clauses incorporated in. a final account prepared in
25.6. accordancewith Clause25.6.
QSOMsion

B'" ASi":!lO;::<~ifir-
~""V'" ia! '_",_.:
{'~
• Amended cl. 25.4(d) gives clarification of the amounts payable to Contractor upon
determination, in line with recent Court Judgement (Econpile (M) Sdn Bhd v IRDK
Venture Sdn Bhd [2017J 7 MLJ 732).
A. PAM Main Econpile (M) Sdn Bhd v IRDK Venture Sdn Bhd [2017] 7 MLJ 732
Contract • High Court held
(Changes & , CIPAA Section 35, ·conditional payment" is not restricted to the two instances described in
Implications) section 35(2) as Parliament had chosen to state a general principle, first in section 35(1) and
- Determination has couched it to be all- encompassing by using the expression "any conditional payment
- CI 25.4(d) provision".
Rights and r more expansive interpretation has to be adopted as Parliament did not use the expression
duties of u·A conditional payment provision within the meaning of sub-so (2) ... is void." ".
Employer and , Parliament had left it to the court to determine on a case by case basis as to whether a
Contractor conditional payment term would be defeating the purpose of CIPAA.
, PAM Contract 2006 cl. 25A(d) is a conditional payment clause within CIPAA Section 35
which renders it void and unenforceable .
• Clause 25A(d) provides that:
"... Until after the completion of the Works under Clause 25.4(a), the Employer shall not be
bound by any provision in the Contract to make any further payment to the Contractor,
QS Division including payments which have been certified but not yet paid when the employmentof the
Contractor was determined. Upon completion of the Works, an account taking into
B{.Asia consideration the value of works carried out by the Contractor and all cost incurred by the
AN··.·-···,.''~..
~ i~~-t..)")j y
'.~..... Employer to complete the Works including loss and/or expense suffered by the Employer
shall be incorporatedin a final accountprepared in accordance with Clause 25.6"
RISMQS Seminar- PAMContract2018- Chances & ImDlicationsbv Sr H.T Dna - 8 Nov2018 19

A. PAM Main Econpile (M) Sdn Bhd v IRDK Venture Sdn Bhd [2017] 7 MLJ 732
Contract • Section 35 CIPAA effectively takes away the contractual right of the
(Changes & paying party to pay only upon the satisfaction of certain conditions and
Implications) replaced the same with a default payment provision under Section 36
- Determination CIPAA which provides that:
- CI 25.4(d)
Rights and "Section 36(3)
duties of The frequent of progress payment is
Employer and (a) Monthly, for construction work and construction consultancyservices;

Contractor and
(a) Upon the delivery of supply, for the supply of construction materials,

•
equipment or works in connection with a constructioncontract.
Section 36(4)
QSDMsion
The due date for payment under subsection (3) is thirty calendar days
B{I\siaPacific from the receipt of the invoice."
.~[rFit:STY
RISM os Seminar- PAM contract 2018- ChanQ8s& Implicationsbv SrH.T OnC!- 8 Nov2018 20
A. PAM Main
Contract
The Architect or Quantity Surveyor
(Changes & shall within six (6) Months on
Implications) completion of the Works, submit to
- Determination the Employer and Contractor for their
- C125.6 agreement, a final account for all cost
incurred to complete the Works
Final Account
including the sums previously
upon certified to the Contractor before the
determination date of determination, Liquidated
Damages, set-off and all other loss
and/or expenses suffered.
PAIl Contract 2112
i The Architect or Quantity Surveyor
shall within three (3) Months on
the availability of the final cost
incurred to complete the Works
! submit to the Employer and
Contractor for their agreement, a
final account for all cost incurred to .
complete the Works including the
sums previously certified to the
Contractor before the date of
determination, Liquidated

•
Damages, set-off and all other loss
and/or expense suffered
as Division • Amended cI. 25.6 bring forward the final account (final cost) incurred to
complete the works from 6 months on completion of the Works to 3 months
on the availability of said final cost.
This speeds up overall dispute issues, including payment.

A. PAM Main PAM Contract 2018

Contract I If the Architect wishes to make final
If the Architect wishes to make final
(Changes & , payment to any Nominated Sub-Contractor payment to any Nominated Sub-
Contractor before final payment is due to
1mpllcatlons] before final payment is due to the
the Contractor, and if the Nominated
Contractor, and if the Nominated Sub-
-NSC Sub-Contractor has indemnified the
Contractor has indemnified the Contractor
- C127.7 against all of his liabilities under the
! Contractor against all of his liabilities
: under the Nominated Sub-Contract the
Final payment to Nominated Sub-Contract, the Architect
shall issue a certificate to the Contractor
i Architect shall issue a certificate to the
Nominated Sub-
and the Contractor shall pay to such
i
Contractor and the Contractor shall pay
Contractors Nominated Sub-Contractor the amount so
1 to such Nominated Sub-Contractor the

certified less any retention and deductions

i amount so certified less any retention
expressly provided under PAM Sub-
i
and deductions expressly provided
Contract 2006. Upon such final payment,
I
under PAM Sub-Contract 2018. Upon

•
, such final payment, the Retention' Fund
the amount stated in the Appendix as
Limit of Retention Fund shall be reduced .
! shall be reduced by the sum of the
: by the sum of the retention released to the
! retention .released to the Nominated
as Divi$iotI • Nominated Sub-Contractor.
! Sub-Contractor.

B{AsiaPacific • Amended cl. 27.7 deletes "amount stated in the Appendix as Limit of'.
+NTRtJSTY
A. PAM Main
Contract Where the Contractor carries
Where the Contractor carries out works for which
P.C. Sums and Provisional Sums are included in
(Changes & out works for which P.C. Sums
the Contract Bills, the Contractor shall be
Implications) and Provisional Sums are
permitted to tender for the same. If the tender of
included in the Contract Bills,
- NSC the Contractor shall be
the Contractor for such work is accepted, it shall
- C127.14 be considered as a Variation and the Contractor
permitted to tender for the
shall not be entitled to profit and attendance
Contractor same. If the tender of the
charges as priced under the relevant P.C. Sum,
permitted to Contractor for such work is
notwithstanding the provision of Clause 30.11(c).
accepted, it shall be considered
tender for P.C. as Variation and the Contractor
Sums The Architect may omit any P.C. Sums, which
shall not be entitled to profit and
are included in the Contract Bills, provided
attendance charges as priced
prior consent of the Contractor has been
. under the relevant P.C. Sum,

•
obtained. The Employer shall only be
notwithstanding the provision of
permitted to award the works related to such
Clause 30.11(c).
P.C. Sums to any other contractors with the
QSDMsion

B{AsiaPaci Ie
~~~~------------
consent of the Contractor .
.
• Amended cl. 27.14 is now requires Contractor's consent prior to omission for any

•
.... 17,
1'If! c
lCl'"y
.~L'
"A{ P.C. Sums or its award to others.

RISM as Seminar- PAMContract2018- Cha

A. PAM Main PAM Contract 2018

Contract
Any set-off by the Employer shall be Any set-off by the Employer shall be recoverablei
(Changes & recoverablefrom the Contractoras a debt or from the Contractor as a debt or from any monies
Implications) from any monies due or to become due to the' due or to become due to the Contractor under the
Contractorunder the Contractand/or from the Contractand/or from the PerformanceBond.
- Certificates PerformanceBond. If the Contractor after receipt of the written notice
And Payment If the Contractor after receipt of the written from the Employer or the Architect on his behalf,
notice from the Employer or the Architect on disputes the amount or part of the amount of set-
- C130.4 his behalf, disputes the amount of set-off, the off, the Contractorshall within twenty one (21) Days
Set-off by . Contractor shall within tWentyone (21) Days of receipt of such written notice, send to the
, of receipt of such written notice, send to the Employerdelivered by hand or by registeredpost a
Employer i Employer delivered by hand or by registered statement setting out the reasonsand particularsfor
: post a statement setting out the reasons and such disagreement. If the parties are unable to
' particulars for such disagreement. If the i agree on the amount or part of the amount of set-
l parties are unable to agree on the amount of i off within a further twe~ty one (21) Days after the'
I
'set-Rff within a further twenty one (21) Days receipt of the Sq~tr,!ctor's response, eitn~r.p<:l.rty i

I §!~~LtbE!.r~seipt ofthe Co.n.t@st0r'n~~P9.I)§E!'

i either party may refer the di,sJiute' to t 36.0.
I may refer the dispute to. adjudication under Clause i
" .. - ' ,,', ' " ~
a.dJllqi~ti()n ,,'under ClaUSE! .~~'1:" The I The Employer s~.~II,,~mlybe entithad,>toset-off i
j E",~Ic:iiershali not be e~titl'~.i9C~t~elc!~e: 1 the amountor~~~.tthe
I
; any set·off unless the amount has been
amount notdiSPllted ;
by .the Contrac::t<)t:'cTtleEmpfoyet shalt opt'be !
B<AsiaPacific i agreed by the ContraCtor, or the i entl,tled to set,off,th~ ~isputed amount until t.he i
i adjudicator has Issued his decision. , ' adjudicator has issued his decision. ' ,
AJ... n'~i
VI.".! ,dJ.",,_ iH,TY ..~~~~--.-"~.;.,,_--~---,-,
.----~~,."'~, --------~~-,-"---- ~-"--~-----~_.;..;_.
 Employer can set-off amount (or its part) not disputed by Contractor instead of agreed amount
A. PAM Main •
only.
Contract • Employer cannot set-off disputed amount by Contractor, unless decided by Adjudicator
(Changes & • List of set-ofts expressly provided under the contract:
, C1.2.4- Failure of Contractor to comply with AI
Implications) - CI. 4.4 - Fees, levies and charges
- Certificates , CI. 5.1 - Setting out
And Payment _ CI. 6.5(e) - Work not in accordance with Contract (with Employer's consent to leave any such works,
materials, goods or workmanship subject to an appropriate set-off).
- CI 30.4 _ CI. 6.7 - Failure of Contractor to comply

Erne
Set-off by , CI. 14.4 - Warranty of title of goods and materials
, CI. 15.3(b) - Contractor's failure to comply with undertaking (Employer employ and pay other Person
to execute any work which may be necessary to give effect to said undertaking)
, CI. 15.3(c) - Contractor's failure to comply with undertaking (accept to leave all or any such works
and defects of a minor nature in the Works subject to an appropriate set-off )
, CI. 15.4 - Schedule of Defects
- CI. 15.5 - Instruction to make good Defects
as Division _ CI. 19.5 - Placing of insurance with licensed insurance companies (Insurance Against Injury To
Person And Loss And/Or Damage Of Property)
B,j As,-aD-',-,fir-
.~ d'_:l,;_ i
, CI. 20.A.3 - Placing of insurance with licensed insurance companies (Insurance Of New
BuildingslWorks - By The Contractor)
.NTRUSTY
RISM as Semner - PAM Contract 2018 - Chances & 1m lications bv Sr H,T Dna - 8 Nov 2018 25

A. PAM Main PAM Contract 2018

Contract ! The Employer may retain the percentage of the i The Employer may retain the i
j total value of the work, materials and goods percentage of the total value of!
(Changes &
11

j referred to in Clause 30.2, which is stated in the l the work, materials and goods:
Implications) 'Appendix as Percentage of Certified Value ! referred to in Clause 30.2, which; ! ' , !

- Certificates Retained. When the sum of the amounts so ',is stated in the Appendix as:
retained equals the amount stated in the ; Percentage of Certified Value.
And Payment Appendix as Limit Retention Fund or that I Retained.
- C130.5 amount as reduced under Clause 16.1(d) and
16.1(f) and/or Clause 27.7, as the case may :
Retention Fund I be, then no further amounts shall be retained . i
I by virtue of this clause. :
--------------------~
Note: The highlighted sentence in red in PAM 2006 is deleted in PAM 2018

• QSOivision
•

•
Amended cl. 30.5 (Retention Fund), removes the "Limit of Retention Fund" and
replaces it with a single percentage of value of amount due in Interim Certificate (as
per cl. 30.2).
No more of 10% Certified Value Retained and 5% limit of Retention Fund,
practiced under previous forms.

A. PAM Main
Contract . Notwithstanding Clause 34.0 of these
(Changes & • Conditions, upon the written agreement
: of both the Employer and Contractor, the
Implications) parties may refer any dispute for
- Mediation mediation. If the parties fail to agree on a
mediator after twenty one (21) Days from
- C134.1 the date of the written agreement to refer
Mediation the dispute to mediation, any party can
under PAM apply to the President of Pertubuhan
Akitek Malaysia to appoint a mediator.
rules Upon appointment, the mediator shall
initiate the mediation in accordance with
,~, ~ ~ .
PAIl 2118 (cl. 34.'1)
i Upon the written agreement of both the'
! Employer and Contractor, the parties may
i refer any dispute for mediation. If the
i parties fail to agree on a mediator after
twenty one (21) Days from the date of the
written agreement to refer the dispute to
mediation, any party can apply to the
; President of Pertubuhan Akitek Malaysia
i to appoint a mediator. Upon appointment,
: the mediator shall initiate the mediation in
! accordance with the current edition of
I the • PAM ME!diation Rul~s or any

•
j the PAM Mediation Rules or any j modification or revision to such rules.
: modification or revision to such rules

QSDMsion • In PAM Contract 2018, Mediation provision is now cl. 34 (previously was cl, 35 in
PAM 2006), no change to Mediation provision except PAM Contract 2018 requires
B{AsiaPacific party to refer to current edition of PAM Mediation Rules for mediation process .
• NTRUSTY

A. PAM Main
Contract
(Changes &
Implications)
- CI. 35
Expert
Determination

~siaPatific • process.

+mRUSTY
• involves use of an independent Expert to investigate (fact-finding) and give his/her
expert opinion on any matter referred to him/her by disputing parties.
 - '
A. PAM Main PAM Contract 2018
Contract
Ccl. 36.1)
(Changes & Reference to adjudication is a condition'
Reference to adjudication is a
Implications) condition precedent to arbitration for precedent to arbitration for disputes under
- Adjudication disputes to under Clause 30.4.The Clause 30.4. Any dispute under Clause 30.4
parties by written agreement are after the date of Practical Completion shall be
- CI 36.1
free to refer any other disputes to referred to arbitration under Clause 37.0.
Set-off disputes
adjudication. Any dispute under
referred to Clause 30.4 after the date of Practical
adj ud ication Completion shall be referred to
arbitration under Clause 34.5.
Note: The highlighted sentence in red in PAM 2006 is deleted in PAM 2018

• PAM Contract 2006 cl. 34, Adjudication and Arbitration is now separated into two
provisions in PAM Contract 2018, which are cl. 36 (Adjudication) and cl. 37
QSDMsion
(Arbitration).

B{AsiaPaclfic • "The parties by written agreement are free to refer any other disputes to
adjudication." under cl. 34.1 of PAM Contract 2006 is deleted under cl. 36.1 of PAM
Contract 2018.
+N'1'RUS'fY

A. PAM Main • PAM 2018 Arbitration provision (cl. 37) is similar to PAM 2006
Arbitration provision (cl. 34.5 to cl. 34.11) except for a minor addition to
Contract
PAM 2018 cl. 37.3, as follow;
(Changes &
Implications) PAM Contract 2118 (cl. 37.3)
I
- Arbitration Upon appointment, the arbitrator i Upon appointment, the arbitrator shall j

- C137. 3 shall initiate the arbitration i initiate the arbitration proceedings in

proceedings in accordance with i accordance with the provisions of the
Arbitration Act I
the provisions of the Arbitration Act Arbitration Act 2005 or any statutory
and Rules 2005 or any statutory modification i modification or re-enactment to the Act
I
or re-enactment to the Act and the and the current edition of the PAM
I
PAM Arbitration Rules or any Arbitration Rules or any modification or
modification or revision to such I revision to such rules.
rules.
I

• P
B r""Sla
~A
acnTic
.NTRUSTY
A. PAM Main
Contract CI; 36;t:NCJti!;e
Any written notice or other document to lie given under the ContraCt· ,.; ~~~~~~~2:'-:'::=::-:'~~'~':~;:-;=:<::;;-"~=~~
shall be given or sent by:
(Changes & 36.1(a) hand;
36.1 (b) ordinary mail or registered post; or
Implications) 36.1(c) facsimile transmission.

- Notice . CI.~;~.R~,~Eocj .__ ._ _.._. .._

Any written notice or other document shall be deemed to have been
duly served upon and received by the addressee:
36.2{a) if delivered by hand, at the time of deHvery;
36.2(b) if sent by ordinary mail or registered post, after three (3)
days of posting; or
36.2( c) if transmitted by way of facsimile transmission, at time
of transmission.
duly served upon and received by the addressee:
38.2{a) if delivered by hand, at the time of de6very;
38.2(b) if sent by ordinary man or registered post, after three (3)
days of posting;
38.2( c) if transmitted by way of facsimile transmission, at time
of transmission; or
382(d) if transmitted by way of electronic transmission, at
time of transmission.

in of the Sub-Contract. it shaH be sufIicient to show:

show: 38.3{a) in the case of hand delivery, a signed acknCMAedgernent of
36.3{ a) in the case of hand delivery, a signed acknCMAedgement of receipt;
receipt; 38.3{b) in the case of registered post, a receipt of posting from the
36.3(b) in the case of registered post, a receipt of posting from the Post Office; or
QSOMsion Post Office; or 38.3(c) in the case offacsimie transmission, that the facsimHe
36.3( c) in the case of facsimHe transmission, that the facsimHe transmission was duly transmitted from the dispatching
B{AsiaPacifi transmission was duly transmitted from the dispatching
terminal, 8S ~del1Ced by a transmission report generated
terminal, as evidenced by a transmission report generated by
the transmitting equipment; or
by the transmitting 8quipmenl. . 38.3( d) in the case of electronic transmission, that the electronic
+NTRUSTY transmission was duly transmitted from the dispatching
terminal, as evidenced by a transmission report
generated by the transmitting equipment.

A. PAM Main • Amended cl, 38.1 allows for any written notice or other document to be given
Contract under the Contract via electronic transmission and deemed to have been duly
served upon and received by the addressee at the time of transmission (cl,
(Changes &
38.2(d»
Implications)
Managing emails in construction contracts can be challenging.
- Notice SCL Protocol 2ndEdition (2017) provides guidelines in managing email as

1.33
Emails are frequently used
between parties.
convenient way to
fOrmal

QS

B{AsiaPacific
4WrnUSTY
A. PAM Main PAIl ContraCt 2018 (ct. 39.5)
Contract (Changes In the event the Employer determines the Inthe eventthe Employerdeterminesthe employment
& Implications) employment of the Contractor in accordance with of the Contractorin accordancewith Clause25.0, or if
Clause25.0, or if there is any breachof the Contract, there is any breachof the Contract,and subjectto the
- Performance the Employermaycall on the PerformanceBondand Architectcertifyingsuch breachby the Contractor,the
Bond utilise and make paymentsout of or deductionfrom Employer may call on the Performance Bond and
the PerformanceBond for the completionof and/or utilise and make paymentsout of or deductionfrom
- C139.5 rectificationof the Works and reimbursementof loss, the PerformanceBond for the completion of and/or
Payments from the and/or expense suffered by the Employer. On rectificationof the Works and reimbursementof loss,
completion of the Works, any balance of monies and/or expense suffered by the Employer. On
Performance Bond remaining from the Performance Bond shall be completion of the Works, any balance of monies
- CI. 39.6 refundedto the Contractorwithoutinterest. remaining from the Performance Bond shall be
refundedto the Contractorwithout interest.
Return of
Performance Bond In the event the Contractor determines his own PAM Contract 2018(cl. 39.6)
employment in accordance with Clause 26.0, the In the event the Contractor determines his own:
Employershall within twenty eight (28) Days retum ; employment in accordance with Clause 26.0, the
the Performance Bond to the Contractor for : Employershall within fourteen (14) Days retum the
cancellation. ! PerformanceBondto the Contractorfor cancellation.

• Amended cl. 39.5 is now requires Architect to certify Contractor's breach or determination of
Contractor prior Employer's action to call on Performance Bond.
B{AsiaPac:t This provides due protection for Contactor and avoid Employer unilaterally calling on the
Performance Bond without default or by its own action/decision.
Eliminates On Demand Bond, a notorious practice .
• Amended cl 39.6 shorten the period of returning the Performance Bond from 28 days to 14 days.
RISM as Semilar - PAM Contract 2018 - Cha as & 1m licatbns b Sr HT On - 8 Nov2018

A. PAM Main
Contract
(Changes &
Implications)
- Summary

QSDMsIon

B<.AsiaPac"
+NTRUSTY
 TEA BREAK

RISMQS Seminar- PAMContract2018 - Changes& Implicationsby Sf H.T On9 ·8 Nov2018

B. PAM 2018 • General differences between With and Without Quantities of PAM
With Quantities Contract 2016 Forms are removal of QS role in Without Quantities
vs Without Form.
Quantities ,- Replacing QS for Consultant under:
- Background • CI. 11.8 (Access to Contractor's books and documents);
• CI. 24 (Loss and/or Expense caused by matters affecting the
Regular Progress of the Works);
• CI. 25.5 (Records of Work) which under Determination of
Contractor's Employment by Employer provision; and
• CI. 30.10 (Final Account) under Certificates and Payment
provision.
asiJi..Mion • The above differences are similar to the differences between
B-<AsiaDacific PAM Contract 2006 With and Without Quantities Forms.
B. PAM 2018
With Quantities Article 7 (ag) deleted As per PAM-WQ
- Limit of Retention Fund
vs Without Replacing word "telephone" with As per PAM-WQ
2 Article 7(ax)
Quantities - Service Provider "telecommunication"
CI. 3.3 Architect or QS must provide Contract Similar to PAM-WQ but
- Background 3
- Copies of Documents Drawings, unpriced Contract Bills and signed excludes QS.
Contract Documents to Contractor within 14

4 CI. 11.1 Variation definition is now includes change in As per PAM-WQ

- Definition of Variations execution of temporary works.

5 C1.11.5 Contractor now required to submit complete All Variations submission is to

- Valuation of Variations Variation details and particulars upon Architect only. Measurement
and Provisional Sums completion and time frame for valuation of and valuation of Variations are
Variations is introduced. by Architect

6 CI. 11.6(f) QS now to re-measure based on actual Similar to PAM-WQ but

- Valuation rules quantities executed within 60 days after work Architect to do re-
completed for Provisional Quantities. measurement. Rates and
prices are referred to Schedule
QSDMsion of Rates instead of Contract
Bills

B{Asia CI. 11.9 QS is now added in, addition to Architect in Similar to PAM-WQ but
- Variations and additional ascertainment of Variation amount. excludes QS
+N'f"RtJS'Y

B. PAM 2018
With Quantities 8 C1.15.2 Architect now required to specify As per PAM-WQ
- Certificate of Practical incomplete works and/or non-compliance
vs Without Completion conditions that, when giving notice of
Quantities 9 CI.16.1(d} No longer have limit to ReterrtionFund As per PAM-WQ
" Possession of Occupied Part
- Background with consent
10 CI. 23.4 Architect now to provide reasons for his As per PAM-WQ
- Certificate of Extension of Time rejection for EOT application and details
for EOT issuance.
11 C1.23.6 longer to prevent or As per PAM-WQ
- Contractor to prevent delay satisfaction of Architect.

12 CI. 23.8 Added in new Relevant Event on As per PAM-WQ

- Relevant Events (EOT) Contractor not having received
document under CI. 3.3(a) & (b)

13 C1.23.9 Confirmation of granting EOT for As per PAM-WQ

- Extension of time after the Relevant Event occurs after CNC
issuance of Certificate of Non- issuance, subject to CI. 23.1 to 23.7
Completion
QSDivision As per PAM-WQ
14 C1.23.10 Revision strikes out explicit qualification
B{Ac;iaD-.,-:;:;r
:':7~_:!
__ i i:_
- Architect's review of extension
of time after Practical
that Architect "is not obliged" to review
anyEOT
15 CI>24.3(a) Added in new Event on Contractor not As per PAM-WQ
+NTRt _"Jl,::;',y
- ~"'., _~
lJ ~ - - Matters materially affecting the having received document under CI.
regular progress of the Works 3.3(a) & (b).
B.PAM 2018
With Quantities 16 CI. 25.4{d) Revision on payment which Employer is As per PAM-WQ
required/entitled to paylwithhold if
vs Without - Rights and duties of Employer
and Contractor Contractor's employment being determined.
Quantities 17 C1.25.6 Revision on Final ACCOuntsubmission time Similar to PAM-WQ
- Final Account upon frame to 3 months from availability of final but excludes as.
- Background determination cost.
18 CI. 27.7 Reference to 'amount stated in the Appendix As per PAM-WQ
- Final payment to Nominated as Limit of is omitted.
Sub-Contractors
19 CI.27.14 Any omission to PC Sum and award of PC As per PAM-WQ
-Contractor permitted to tender Sum to others now requires Contractor's
for P.C. Sums Consent.
20 CI.30.4 Employer can set-off amount (or its part) not Similar to PAM-WQ
- Set-off by Employer disputed by Contractor instead of agreed but excludes QS.
amount only.

21 CI.30.5 Removes the 'Limit of Retention Fund" and As per PAM-WQ

- Retention Fund replaces it with a single percentage of value
of amount due in Interim Certificate
QSDMsion
22 CI.34 Originally CI. 35 in PAM Contract 2006 As per PAM-WQ
B{AsiaP.:l,~:fif~ ~ "-'I ..._ i 1 " __
- Mediation
23 CI. 35 New ADR provision. As per PAM-WQ
+NTFllST'Y
3. ,,-;_":_..--- " Expert Determination

B. PAM 2018
With Quantities
vs Without
Quantities 25 of "the parties by \YIitten As per PAM-WQ
- Background "''',ii>e.m",nt are free tor~e(l3ny
n'r,~rnl!':.nlllt~'" to adjudicati()n"

26 CI. 37 Originally part of CI. 34 of PAM As per PAM-WQ

- Arbitration 2006, but now is separated to CI.
37 of PAM 2018
27 CL38 Allows for the use of "electronic As per PAM-WQ
- Notice transmission"

28 CI. 39.5 Requires Architect to certify As per PAM-WQ

- Payments from the Contractor's breach or
PerfonmanceBond Contractor's detenmination, prior
to Employer's call on Performance
Bond.
~~20~--------~t ~77 ~~~~ __ ~~~~~

B-{AsiaPacific
.NTRfJSTY
B. PAM 2018 PAM 2018 (With Quantities) PAM 2018 (Without Quantities)
With Quantities Article 7(q)
vs Without Contract or Contract Documents comprise Contract or Contract Documents comprise the
following documents:
Quantities the following documents:
(i) the Letter of Award;
(i) the Letter of Award;
• Article 7 (ii) the Articles of Agreement; (ii) the Articles of Agreement;
(iii) the Conditions of Contract; (iii) the Conditions of Contract;
(iv) the Contract Drawings; (iv) the Contract Drawings;
(v) the Contract Bills; and (v) the Contract Bills; and
(vi) other documents incorporated in the (vi) other documents incorporated in the
Contract Documents, unless expressly Contract Documents, unless expressly
stated to be excluded therefrom; stated to be excluded therefrom;

Article 7(r) Article 7(r)

Contract Bills comprise the following
documents (as may be applicable):
(i) Instructions to Tenderers;
(ii) Conditions of Tendering;
(iii) Form of Tender;
QSDmsion
(iv) Preliminaries;
B~ J\sl·aD=li~:f>- (v) Preambles and Specification;
'"",,, r ~\_" ! \_. J4"Bilis of Quantities; and
" rn:H i,yy (vii) any other documents specifically mentioned
• 1'1 j 1",.),,# , in any of the above documents;
Contract Bills comprise the following documents
(as may be applicable):
(i) Instructions to Tenderers;
(ii) Conditions of Tendering;
(iii) Form of Tender;
(iv) Preliminaries;
(v) Preambles and Specification;
MSummary of the Tender (or Contract Sum);
I Schedule of Rates
(viii)any other documents specifically mentioned in
any of the above documents;

B. PAM 2018 PAM 2018 (With Quantities)

With Quantities
where work is a
vs Without where work is of a similar character to, is executed under similar conditions as,
Quantities executed under similar conditions as, and does not significantly change the quantity of work as set
not significantly change the quantity of work as out in the Contract Documents, the rates and
• CI11 set out in the Contract Documents, the rates and prices in the SChedu~f Rates shall determine
Variations, prices in the Contract Docyments shall the valuation;
determine the valuation; V
Provisional And
CI. 11.6(b)
Prime Cost where of a similar character to work as set
where work is of a similar character to work as out in the Contract Documents but is not executed
Sums set out in the Contract Documents but is not under similar conditions or is executed under
• Valuation rules executed under similar conditions or is executed similar conditions but there is a significant change
under similar conditions but there is a significant in the quantity of work carried out, the rates and
change in the quantity of work carried out, the prices in the Schedule of Rates shall be the

•
rates and prices in the Contract Documents
shall be the basis for determining 1he valuation
which shall include a fair adjustment in the rates
to take into account such difference;
as DIvision
where work is not of a similar character to work
as set out in the Contract Documents, the
valuation shall be at fair market rates and prices
determined by the Quantity ""n/P'VOI
basis for determining th1i'valuation which shall
include a fair adjustment in the rates to take into
account such difference;
where work is not of a similar character to work as
set out in the Contract Documents, the valuation
shall be at fair market rates and prices determined
by the Architect;
B. PAM 2018 PAM 2018 (With Quantities) PAM 2018 (Without Quantities)
With Quantities CL 11.6(d) CL 11.6(d)
vs Without where work cannot be properly measured and valued in where work cannot be properly measured and
accordance with Clause 11.6(a), (b) or (c), the valued in accordance with Clause 11.6(a), (b) or (c),
Quantities Contractor shall be allowed: the Contractor shall be allowed:
- CI11 CL 11.6(d) (i)
CL 11.6 d i
the daywork rates in the Schedule of Rates; or
Variations, the daywork rates in the Contract Documents; or
Provisional And CL 11.6(d) (ii)
Prime Cost ~--~~------------------~
where there are no such daywork rates in the Contract
where there are no such daywork rates in the
Schedule of Rates, at the actual cost to the
Documents, at the actual cost to the Contractor of his
Sums materials, additional construction plant and scaffolding,
Contractor of his materials, additional construction
plant and scaffolding, transport and labour for the
- Valuation rules transport and labour for the work concerned, plus fifteen work concerned, plus fifteen (15) percent, which
(15) percent, which percentage shall include for the use percentage shall include for the use of all tools,
of all tools, standing plant, standing scaffolding, standing plant, standing scaffolding, supervision,

•
supervision, overheads and profit.
In either case, vouchers specifying the time spent daily
upon the work, the workers' names, materials,
additional construction plant, scaffolding and transport
QSDMsion used shall be signed by the Site Agent and verified by
B{AsiaPacf1c ;h:d S~~a~~~~ a~~r~:;~rb:t d;~~~~di~~~~sA:~t~it~~~
final records delivered not later than fourteen (14) Days
after the work has been completed;
overheads and rofit.
In either case, vouchers specifying the time spent
daily upon the work, the workers' names, materials,
additional construction plant, scaffolding and
transport used shall be signed by the Site Agent and
verified by the Site Staff and shall be delivered to the
Architect at weekly intervals with the final records
delivered not later than fourteen (14) Days after the
work has been com leted;

B. PAM 2018 PAM 2018 (With Quantities)

With Quantities CI. 11.6(e)
vs Without the rates and prices in the SchedUle of
the rates and prices in the Contract
Quantities Documents shall determine the valuation of Rates shall determine the valuation of
- CI11 items omitted. If omissions substantially items omitted. If omissions substantially
Variations, vary the conditions under which any vary the conditions under which any
remaining items of work are carried out, the remaining items of work are carried out,
Provisional And prices of such remaining items shall be the prices of such remaining items shall
Prime Cost valued under Clause 11.6(a), (b) or (c); and be valued under Clause 11.6(a), (b) or
Sums (c); and
- Valuation rules CI. 11.6(f)
~--~~------------------~ in respect of Provisional
in respect of Provisional Quantities, the quantities stated in the ("''''nt'''''' ....t
quantities stated in the Contract shall be re-measured by the Architect
Documents shall be re-measured by the based on the actual quantities executed
Quantity Surveyor based on the actual within sixty (60) Days after the said works
quantities executed within sixty (60) Days are completed. The rates and prices in
after the said works are completed. The the Schedule of Rates shall determine
rates and prices in the Contract their valuations.
Documents shall determine their
valuations.
B. PAM 2018 PAM 2018 (With Quantities)
With Quantities
CI. 11.8 : Access to Contractor's books
vs Without and documents
Quantities The Contractor shall keep contemporaneous
- CI11 records to substantiate all his claims for
additional expenses under Clause 11.7, and
Variations, shall submit all particulars to the Architect and
Provisional And Quantity Surveyor. The Architect and
Quantity Surveyor shall have access to all
Prime Cost books, documents, reports, papers or records in
Sums the possession, custody or control of the
Contractor that are material to the claim and the
Contractor shall provide free of charge a copy
each to the Architect and Quantity Surveyor
when requested. All such documents shall
remain available in accordance with this clause
until all claims have been resolved. The
Contractor shall use his best endeavour to
QSDivision ensure that all such similar documents in the
possession, custody or control of sub-contractors
and/or suppliers that are material to the claim are
similarly available.
The Contractor shall keep contemporaneous
records to substantiate all his claims for
additional expenses under Clause 11.7, and
shall submit all particulars to the Architect
and Consultant. The Architect and
Consultant shall have access to all books,
documents, reports, papers or records in the
possession, custody or control of the
Contractor that are material to the claim and
the Contractor shall provide free of charge a
copy each to the Architect and Consultant
when requested. All such documents shall
remain available in accordance with this
clause until all claims have been resolved.
The Contractor shall use his best endeavour
to ensure that all such similar documents in
the possession, custody or control of sub-
contractors and/or suppliers that are material
to the claim are similarly available.

B. PAM 2018 PAM .2018(With Quantities)

With Quantities CI. 12 : Contract Bills
vs Without CI. 12.1 : Measurement of building
Quantities works
- CI. 12 The quality and quantity of the work
included in the Contract Sum shall be
deemedto be those which are set out in
the Contract Bills and unless otherwise
expressly stated, shall be prepared in
accordance with the principles of the
Standard Method of Measurement of
Building Works sanctioned by the Royal
Institution of Surveyors Malaysia and
currentlyin force.
CI. 12.2 : Correction of errors or
omissions
Unless otherwise expressly provided,the
contract is a Lump Sum Contract. Any
QSDMsion error in description, quantity or
omission of items in the Contract Bills
shall not vitiate the Contract and shall
be corrected by the Architect or
Consultant.
The quality and quantity of the work included in the
Contract Sum shall be deemed to be those which are
shown upon the Contract Drawings and/or set out in
the Contract Bills. Unless otherwise expressly stated,
the measurements of Variations and Provisional
Quantities shall be carried out in accordance with the
principles of the Royal Standard Method of Measurement
of Building Works sanctioned by the Institution of
SurveyorsMalaysiaand currentlyin force
Unless otherwise expressly provided, the contract is a
Lump Sum Contract and shall be deemed to include all
ancillary and other works and expenditure, which may
or may not have been specifically mentioned or
described in the Contract Documents, but which are
either indispensably necessary to be carried out to
bring the Works to completion or which may
contingently become necessary to overcome
difficulties before completion.
B. PAM 2018 PAM 2018 (With Quantities)
With Quantities CI. 30.1 : Payment application and issuance of
vs Without Architect's certificate
The Contractor shall submit a payment application at the
Quantities Interim Claim Interval stated in the Appendix with
complete details and particulars as required by the
- CI30 Architect and Quantity Surveyor, to enable them to
Certificates And consider and ascertain the amount to be included in an
Interim Certificate. Upon receipt of the Contractor's
Payment details and particulars, the Architect after having
received the payment valuation from the Quantity
Surveyor shall, within twenty one (21) Days from the
date of receipt of the Contractor's application, issue an
Interim Certificate to the Employer with a copy to the
Contractor, and the Employer shall thereafter pay the
amount certified to the Contractor within the Period of
Horrourinq Certificates. Any failure by the Contractor to
submit a payment application shall be deemed to be a
waiver of his contractual entitlement for that Interim
Certificate, and the Architect mayor may not issue an
Interim Certificate under the circumstances. After the
issuance of the Certificate of Practical Completion,
Interim Certificates shall be issued as and when further
amounts are ascertained by the Architect and Quantity
Surve or as a able to the Contractor b the Em 10 er.
The Contractor shall submit a payment application at
the Interim Claim Interval stated in the Appendix with
complete details and particulars as required by the
Architect, to enable him to consider and ascertain
the amount to be included in an Interim Certificate.
Upon receipt of the Contractor's. details and
particulars, the Architect shall, within twenty one
(21) Days from the date of receipt of the Contractor's
application, issue an Interim Certificate to the
Employer with a copy to the Contractor, and the
Employer shall thereafter pay the amount certified to
the Contractor within the Period of Honouring
Certificates. Any failure by the Contractor to submit a
payment application shall be deemed to be a waiver
of his contractual entitlement for that Interim
Certificate, and the Architect mayor may not issue
an Interim Certificate under the circumstances. After
the issuance of the Certificate of Practical
Completion, Interim Certificates shall be issued as
and when further amounts are ascertained by the
Architect as payable to the Contractor by the
Employer.

C.PAM PAM Contract 2018

Subcontract =:!~~ ~ ~ ~~~ r • ~~~;:~~\¥~::<~~:::~~~
2018 Contract or Contract Documents comprise the
following documents:
(i) the Letter of Award;
(ii) the Articles of Agreement;
(iii) the Conditions of Contract;
(iv) the Contract Drawings;
(v) the Contract Bills; and
(vi) other documents incorporated in the
Contract Documents, unless expressly
stated to be excluded therefrom;

Contract Bills comprise the following documents

(as may be applicable):
(i) In~tri.JcUQnsto Tend~rers;
(ii) Conditions of Tendering;
(iii) Form gf l"El~der;
(iv) Prelirnin1!ri~s;
(v) PreamblEfs arfdSpecification;
(vi) Bills of Quantities; and
(vii) any other documents specifically mentioned
in any of the aobve documents;
C.PAM PAM 2018 PAM Subcontract 2018
Subcontract t~~lC~hOO" o,;~;:,;',', ~J:;... , 'J ~:.~ ~..__~ .~~-;,-:.:_'ff;:' ~i~~;;~E~~t~~~~
i Service Provider means any company or :
2018 ; body authorised to provide water,'
. ServicePrg~i(jef me~ms any company Or
bpdy authorised to provide water,
• electricity, telecommunication,
electricity, telecommunication, sewerage
sewerage and other related services;
and other related services;

any changes to the provisions in the

Contract with regards to: any chcmg7s to the provisions in the Sub-
d(i) any limitation of working hours; Contract with regards to:
d(ii) working space; dO) any limitation of working hours;
d(iii) access to or utilisation of any d(ii) working space;

•
specific part of the Site; and
d(iv) the execution and completion of the
work in any specific order; and
d(v) the execution of temporary
works.
d(iii) access to or l!tili~ation of any
specific part of the Site; and
d(iv) the execution and completion of the
work in any specific order; and
d(v) the execution of temporary
works.

C.PAM
Subcontract
in respect of Provisional Quantities, the
2018 quantities stated in the Contract Documents
shall be re-measured by the Quantity
Surveyor based on the actual quantities
executed within sixty (60) Days after the
said works are completed. The rates and
prices in the Contract Documents shall
determine their valuations.

soon the and

. Surveyor have ascertained the amount
i Variations and/or a~ditiomll exp~nses.; 1.i'!rnO'.L!l1t.
claimed by the Contractor .ul1~er qIflL!se '
QSDilIision 11.7, the. amovnt. so. ascertc:iin~d shc:ill.·.be
to the Contract Sum.When an Interim
B'" A • D
,V"SIa. aor.-. r",r+;"~~~·~ issued after the' d~te of an Interilll Certificate
such amount shall be date of ascertainment,
+NTRUSTY shall be included in the
 PAM Subcontract 2018
C. PAM --- - - - -_. -~- _ .• _----- - - --;- ='~

Subcontract : g~q~~~~fractjc:c!tCQ~ j ~~:;

:~.:~
: if the Architect is of the opinion that the Works'
2018 are not Practically Completed under Clause
15.1, the Architect shall give written notice to
the Contractor with copy extended to the
Nominated Sub-Contractorsstating the reasons
for his opinion and specifying the works that
are incomplete and/or the conditions that
have not been complied with; or
_-~~-- -_~-
:-:::~~::.
:_
-~~~:-~
-~i~~
if the Arcrntect is of the opinion that the Sub-
ContraciWorks are not PraCtiCallyCompleted
under Clause 17.1, the Architect shall give
written notice to the Contractor(with a copy to
the Sub-Contractor)stating the reasonsfor his
opinipl1 ~f1cJ specifying the works that are
incOmplete and/or the conditions that have
not been complied with; or

When has submitted sufficient

particulars for the Architect's consideration,the
Architect shall subject to Clauses 23.5, 23.6
T
and 23.8, consider the Contractors submission
and shall either reject the Contractor's
• application with reasons or issue a Certificate
as Division : of Extension of Time with details within six (6)
. .. i
Weeks from the receipt of sufficient particulars.
B{AslaPaclt!1 The Architect may issue the written notice of
: rejection or the Certificate of Extensionof Time
+N''fRUSTY ! before or after the Completion Date.
I/Jflifn °th'e'·.Su15~C()ntrador"'
••haS "submitted
sl.Jffidenf -,particulars for, the Contractor's
consider;ltion under Clause 21.5, the
C()ntractor shall not later than six (6) Weeks
from receipt of the Sub-Contractors complete
particulars, either reject the Sub-Contractor's
application with reasons or issue the
Certifica~eof Extension of Time with details
to thE!Sub-Contractor.

C.PAM
Subcontract
2018 ... Until after the completionof the Works under: in Clause 23.4(a),
Clause 25.4(a), the Employershall not be bound' be bound,by any provision
by any provision in the Contract to make any Jh,e.._~gb-C:O[ltralct to mClke any further
further payment to the Contractor, including SUb-Contractor, including
paymentswhich have been certified but not yet heen certifiedbut not yet
due but excluding payments which have been due .bU1:~)~j(~ludlfng paynltmts which have
certified and are due but remain unpaid when due.byt remain unpaid
the employment of the Contractor was mnlnVITI"",t of the Sub-Contractor
determined....

asDlvirion
6<.AsiaPac·
C. PAM
Subcontract PAM Contract 2018
-~
PAM Subcontract 2018
~ -~-J -~-- __

2018
Employer may
percentage of the total value of the
work, materialsand goods referred to
in Clause 30.2, which is stated in the
Appendix as Percentage of Certified
Value Retained.
i~ - _:_~;~~,~~4~t.~~~~
~~.: _~:
The Contractorshall retain from the
payment certificate the Retention
Fund which shall be held by the
Employer under Clause 30.5 of the
Main Contract Conditions, an
amount equal to the Percentage of
Certified Value Retained as stated
in Appendix 'C.

QSDivision

C. PAM PAM Sub-Contract 2018 d. 28 (Mediation)

• In PAM Sub-Contract 2018, Mediation provision is now cl. 28.
Subcontract • Originally it was cl. 30 in PAM Sub-Contract 2006.
2018 • No changes are made to this provision.

PAM Sub-Contract 2018 cl. 29 (Expert Determination)

• PAM Sub-Contract 2018 cl. 29 is a new provision which is "Expert Determination".
• This provision is similar to cl. 35 (Expert Determination) of PAM Contract 2018

PAM Contract 2018 PAM Subcontract 2018

':::\~',,-:::~,i;':;:~:~~f~
,~ ~ -,- ~ r~ ~_ _ - - - - - "7

~~~'
,~;;~t~~~:,,~'-~ ~~~~:'>:';;:;'_i~~~~~:~;::';~~
~~:,
~; ~~~~~fi
'.':~;~~j~
Reference to adjudication is a condition R~f~r~.nte
to J~jUdication is j §h8~ti()n
precedent to arbitration for disputes to preCedent to arbitration for disputes unaer
under Clause 30.4. The parties by Clauses 22.5,'22:6 and 26.13 before practical
..·.·rittenagreement are free to refer any completion of the Main Contract Works. The
QS Division other disputes to adjudication. Any parties by writ!en agreement are free to refer
~ A - D . +=; r dispute under Clause 30.4 after the date any. other. di~putl!s to adjudication. Any
B""sla; aC!: !\...I of Practical Completion shall be referred dispute under Cla~ses 22.5, 22.6 and 21'>'13
after practical cornpletion of the Main Contract
"'!'T'O 'S-'-y
+ ''IIu,;,tL I
to arbitration under Clause 37.0.
Works shall be· referr~d to arbitration under
Clause31.1.
 PAM Subcontract 2018
C. PAM ci38.~"bIOfiC8 iii:~~¢~~~·,~=~~1.?~Y~
_,,~;-~,--~~~Ti~~
Subcontract h'An"'"y""wn:':'i~·~~~;_Cn:C_0"::ti"'"ce"'"o.c,rC:;·~"'·ihe-",'~.c.d70~cument
to be given und:rthe Contr8c( document to be given under the Contract
shall be given or sent by:
20 18 38,l(a)
38.1(b)
hand;
ordinary mail or registered post;
38.1(c) facsimile transmission; or
38.1(d) by electronic trans ..m..i",ss~i:"l0n",'=::"7=~=""""""'''''''~=-'
.,.~~"¥~~"
Any written notice or other document shall be deemed to have been
.,'j

duly served upon and received by the addressee:

382(a) if delivered by hand, at the time of de6very;
38.2(b) if sent by ordinary mail or registered post, after three (3)
days of posting;
i 382(c) if transmitted by way of facsimile transmission, at time
; . of transfTlission; or
: 382(d) if transmitted by way of electronic transmission, at
, time of transmission.

1 CI.38.3;:_:_~-Ot'~ ._ _- !
; In provi'lg th~
9ivi~9>of a written notice or any other document under or~
in respect of the Sub-Contract, it shaD be suflicientto show:
38.3(a) in the case of hand delivery, a signed ackno\IAedgement of
receipt
32.3(b) in the case of registered post, a receipt of posting from the
38.3(b) in the case of registered post, a receipt of posting from the
Post Office; or
Post Office; or
32.3(c) in the case of facsimile transmission, that the facsimile
38.3(c) in the case of facsimile transmission, that the facsimHe
AS ia ;::j C_I.'t',
transmission was duly transmlt!ed from the disPlitching
,'V"\.
Bej _. p., transmission was duly transmitted from the dispatching
terminal, as evidenced by a transmission report generated by
the transmitting equipment.; or
terminal, as evidenced by a transmission report generated
by the transmitting equipment.; or
in the case of electronic transmission, that the
38.3(d) in the case of electronic transmission, that the electronic
electronic transmission was duly transmitted fTom the
.N"IT~USTY transmission was duly transmitted from the dispatching
dispatching terminal, as evidenced by a transmission
terminal; as evidenced by a transmission report
report generated by the transmitting equipment.
generated by the transmitting equipment,

C. PAM
Subcontract
""_JUl~~~~*>"""
C[~ ·,·~':::s~ffO·.·
.'~,.I.j-- -
'=
-~"'-~~ -
PAM Contract 2018
.·~t!O'hli·.,'·.-

In the event the Employer determines the

---~ - 1CW1001~"~i:jk~;7-

2018 employment of the Contractor in accordance with

Clause 25.0, or if there is any breach of the
Contract, and subject to the Architect
certifying such breach by the Contractor, the
Employer may call on the Performance Bond and
utilise and make payments out of or deduction
from the Performance Bond for the completion of
and/or rectification of the Works and
reimbursement of loss, and/or expense suffered
by the Employer. On completion of the Works,
any balance of monies remaining from the
Performance Bond shall be refunded' to the
ContraCtor ,Without interest.
D. Conclusion • PAM Contract 2018 is not a new or radically changed form of contract
but with several revisions and additions meant to update and improve
the PAM Contract 2006 (12 years old !) :
,. CIPAA , Determination (incl. payment)
, EOT (incl. Relevant Event) r Retention Sum
»: Document transmission , ADR (incl. Mediation, Expert Detenmination,
, GST Adjudication & Arbitration)
, Copies of Document , Performance Bond

• Key revisions/changesthat have implications on QSs are;

»: CI. 3.3 - Copies of Document r CI. 27.14 - Contractor permitted to tender for
» CI. 11.5 - Valuation of Variations P.C. Sums
r CI. 25.6 - Final Account upon r CI. 30.4 - Set-off by Employer
Determination , CI. 30.5 - Retention Fund

• PAM Contract 2006 may still be used but the PAM Contract 2018 is
likely to be the replacement, hereon.
QS o;vision
• The AIAC Standard Form of Building Contract (2018, soon 2019 Edition)
B{Asia is being promoted as an alternative to PAM Form of Contract.
• Need for radical and fairer forms such as NEC Forms for our Malaysian
.N1HA)sry
Construction industry.

References 1. Agreement and Conditions of PAM Contract 2006 (With Quantities).

2. Agreement and Conditions of PAM Contract 2018 (With Quantities).
3. Agreement and Conditions of PAM Contract 2018 (Without Quantities).
4. Agreement and Conditions of PAM Sub-Contract 2018.
5. Econpile (M) Sdn Bhd v IRDK Venture Sdn Bhd [2017] 7 MLJ 732.
6. New EngineeringContract (NEC) 4 "Engineeringand Construction
Contract (2017)", UK.
7. SCL (2017), "Society of Construction Law - Delay and Disruption
Protocol", UK.

QSDMsion
 End of Presentation

Thank you

Qe1Jl Session

Sr ONG HOCK TEK

Panel Arbitrator/Accredited Mediator /VM Practitioner /
Reg.QS/Cert. Constr.PM/Master Trainer
BSc(Hon)MScMBA DipM DiplCArb MIVMAMIVMMMIM
FRISMICECAFRICSFCIOBFCIArbFSIArbFMIArb
Director
BK Entrusty

RISMas Seminar- PAMcontract 2018 ~Changes& Implicationsby Sr H.T Ong

-8Nov2018