Must the Contractor submit his Interim Payment claims before the Superintending Officer certifies for Payment
Payments are major concerns to Contractors and Employers. As the duration of the construction projects are usually long, contract sums involved are large and payments are only progressively paid rather then on delivery, thus the payments are lifeblood of the Construction Industry. In common law and in the absence of any provision in the contract […]
Can a Letter of Intent be construed as an enforceable contract?
Letters of Intent are a common feature in the construction and engineering industry such that it is a useful tool for both parties while negotiating a formal contract or agreement, allows one party to begin work on the basis of a Letter of Intent before the formal contract or agreement is concluded. In circumstances where […]
What is a Quantum Meruit Claims?
This is a topic for those parties who intend to create a contract and/or requested the service provider to execute the services/works at the expense of other parties or being benefited from the other parties with no agreed terms as to price or payment. It is quite frequently occurs in construction industry that due to […]
Can a contractor claim for compensation for extra work when there is no S.O. instruction?
This topic of claiming for extra work without a formal instruction is very topical. Strictly, where there is a change or deviation to the Works, be it design, material or workmanship from the original contracted documents, such a change shall constitute a variation to the Works. However, in the construction industry, there are bound to […]
What are the obligations of the Contractor during Defect Liability Period?
Defect Liability Period (DLP) is a common feature in all the standard form of construction contracts in Malaysia, i.e. PAM06 / PAM98 / JKR PWD 203/ IEM 2011/ CIDB 2000. During the DLP, the Contractor is obliged and liable to rectify defects that appear between the period the Certificate of Practical Completion (CPC) is issued […]
‘Float’ in the programme of works, who owns it?
In this issue, we will look at the situation when the programme of works contains ‘float’ and who actually owns it if both the Employer and the Contractor respectively delayed the project. Before answering this question, let us define what actually ‘float’ is in the programme of works. ‘Float’ is basically the time available to […]
Is the Contractor still entitled to Extension of Time when there is concurrent delay?
Before we attempt to answer this question, let us understand what it is meant by the phrase ‘concurrent delay’. As the phrase ‘concurrent delay’ suggests, it is basically where two or more delaying events occurring at the same time. In the context of the construction industry practice, it is where two or more delaying events […]
Is Contractor obliged to apply for Extension of Time?
Construction contracts usually have a fixed time frame for the Contractor to complete the works (i.e. time is of the essence – time being a fundamental term of the contract). PAM 06 Clause 21.1, PAM 98 Clause 21 (1), JKR/PWD 203A Clause 38.2, IEM CE 2011 Clause 40.1 (1), CIDB cl 17.1 JKR PWD DB/T […]
What is the recent position on Retention Sums in Malaysia?
The practice of holding back or setting aside a portion of monies due to the Contractor by the Client (normally referred to as the Employer under construction contracts) is an entrenched practice within the construction industry the world over. This monies held back is referred in the industry as Retention Sum, which is it normally […]
What is a Performance Bond, its purpose and implications?
Bonds are provided as useful means of creating financial security for the Employer for the Contractor’s failure to perform his contractual obligations. Generally, a bond is an arrangement under which the performance of one party (A) to another party (B) is backed up by a third party (C). What happens is that C promises to […]
