NAME: WONG ING SING

ASSIGNMENT 1

MBEG 1033

INTRODUCTION:
The employer has the authority to control over the whole construction process by procurement
of traditional method. In the case, Superintending Officer/Architect is an employers agent who is
engaged primarily to ensure that the works are executed effectively and economically. He owes a duty
to discharge his responsibility fairly and professionally for overall supervision and direction of the
works towards the contracting party. Thus, with the right to act on behalf of the employer, he has the
power to issue instructions to contractor and contractor is required to comply with the instructions.
In this assignment, it emphasised on the employers authority to control over the design of
whole construction process. The design means anything that is not constructing within the construction
period.
DISCUSSION:
PAM 2006
Clause 1.0- Contractors Obligations
Clause 1.1- Completion of Works in accordance with Contract Documents
The Contractor shall carry out and complete the Works in accordance with the Contract Documents and
in compliance with provide materials, goods, and standard of workmanship of the quality and standard
described in the Contract Documents and/or required by the Architect.
Clause 1.2- Temporary work and construction method
Unless designed by the Architect or Consultant, the Contractor shall be fully responsible for the
adequacy, stability and safety of all temporary works and of all methods of construction of the Works,
irrespective of any approval by the Architect or Consultant.
PWD 203A
Clause 10.0- Obligations of the Contractor
The contractor shall
(a) construct, complete, test and commission the Works in accordance with the Specifications,
Contract Drawings and any other documents specified in the Contract Documents
(b) perform the Works in a proper manner and in accordance with good management practice
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(c) take all appropriate measures expected of a contractor providing similar works to ensure that the
Works comply with the requirements of the Contract
(d) perform the Works and discharge its obligation, in performing the Works, the Contractor shall
provide well-outlined procedures in the form agreed by the Government for reporting and coordination purposes
(e) at all times perform the Works as will always safeguard and protect the Governments interest
in relation to the Works
(f) inform the Government immediately in writing of the occurrence of any factor or event, which
is likely to affect the Works
(g) provide and maintain throughout the Contract Period
(h) provide and maintain at its own cost and expense all equipment and materials
(i) instruct and supervise its staffs and sub-contractor in carrying out the Works
From the clauses above, it could be concluded that employers enjoy the authority to control
over the contractor. In both PAM 2006 and PWD 203A, the contractors obligations to carry out and
perform the works in accordance with the specifications, contract drawings and contract documents.
The contractor should manage the works and at all times protect the employers interest in relation to
the works.
PAM 2006
Clause 1.0- Contractors Obligations
Clause 1.3- Contractors design and responsibilities
If the Contractor proposes any alternative design the Works or if the Contract leaves any matter of
design, specification or choice of materials, goods and workmanship to the Contractor, the Contractor
shall ensure that the works are fit for the purpose. The copyright of the Contractors design and
alternative design belongs to contractor, but the Employer shall be entitled to use the design and
alternative design for the completion, maintenance, repair and future extension of the Works.

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PWD 203A
Clause 22.0- Design
Clause 22.1- Design Liability
(a) if Contractor is required under the Contract to undertake the design of any part of the Works
which is stand alone design as determined by the Government, the Contractor shall ensure that
such design is suitable, functional, safe, compatible and integrates with the design and
specifications of the Works and it shall be approved and endorsed by a registered professional
(b) the Contractor shall submit to the S.O all drawings, specifications, calculations and any other
relevant information pertaining to the stand alone design for approval
Clause 22.2- Design Guarantee Bond
(a) the Contractor shall provide a Design Guarantee Bond for the stand alone design issued by an
approved licensed bank or financial institution amounting to 5% of the value of that part of the
Works
From the clauses above, it could be concluded that contractor had the responsible to design if
they were requested by the employer. In PAM 2006, the contractor should ensure that the designed
works were fit for the purpose and employer should be entitled to use the designed works. However, in
PWD 203A, the contractor should ensure that the design was suitable, functional, safe, compatible and
integrates with the design and specifications of the works and it also needed to be approved and
endorsed by a registered professional. Besides, the design guarantee bond was provided in PWD 203A
only.

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PAM 2006
Clause 2.0- Architects Instructions (AI)
Clause 2.1- Contractor comply with AI
The Contractor shall comply with all instructions issued to him by the Architect in regard to any matter
in respect of which the Architect expressly empowered to issue instruction.
Clause 2.4- Failure of Contractor to comply with AI
If the time of compliance (not be less than 7 days from receipt of the AI) is stated by the Architect in
the AI and the Contractor does not comply therewith then the Employer may 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.
PWD 203A
Clause 5.0- S.Os Instruction
Clause 5.1
S.O may from time to time issue further drawings, details and/or written instructions in regard to
(a) the Variation
(b) any discrepancy in or between the Contract Documents
(c) the removal from the Site of any materials or goods brought by the Contractor and substitutions
of any other materials or goods
Clause 5.3
If within 7 days after receipt of a written notice from the S.O. requiring compliance of any instruction
and the Contractor does not comply, then the S.O without prejudice to any other rights or remedies to
the Government, undertake the work departmentally or employ and pay another Contractor to execute
any work which may be necessary to give effect to such instruction.
From the clauses above, it could be concluded that architect and S.O were the representatives of
the employer, the contractor should comply with the Architects Instruction or S.Os Instruction. They
should execute any works which were given the effect to the instructions from time to time. If the
contractor failed to comply with, thus, the employer would have the authority to employ and pay
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another contractor to execute the said works, and the cost of employing other contractor or any
additional cost in this connection should be set-off by the employer.
PAM 2006
Clause 3.0- Contract Documents, Programme and As-built Drawings
Clause 3.2- Custody of tender documents
The original tender documents shall remain in the custody of the Architect or Quantity Surveyor so as
to be available at all reasonable times for inspection by the Employer and Contractor.
Clause 3.8- Availability of documents
The Contractor shall keep a copy of the Contract Drawings and the unpriced Contract Bills on the Site
to be available to the Architect and Consultant and their authorised representatives at all reasonable
times.
PWD 203A
Clause 8.0- Contract Documents
Clause 8.1 (d)
The Contractor shall keep one copy of the Contract Drawings, the Specification, unpriced Bills of
Quantities, priced Bill of Quantities and other documents on the Site and the S.O shall at all reasonable
times have access to the same.
From the clauses above, it could be concluded that only PAM 2006 mentioned on custody of
tender documents. However, for both PAM 2006 and PWD 203A, the availability of contract drawings
and documents on the site were important for employer and the consultant teams to make the inspection
at all times.

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PAM 2006
Clause 3.0- Contract Documents, Programme and As-built Drawings
Clause 3.5- Works Programme
Within twenty one (21) Days from receipt of the Letter of Award (or within such longer period) as may
be agreed in writing by the Architect), the Contractor shall provide to the Architect for his information,
six (6) copies of the Works Programme showing the order in which he proposes to carry out the Works.
The Works Programme shall comply with any requirements specified in the Contract Documents. If the
Works or any part of the Works is delayed for whatever reason, the Architect may instruct the
Contractor to revise the Works Programme. The Contractor without charge to the Employer, shall
provide the Architect from time to time with similar number of copies of any revised Works
Programme.
PWD 203A
Clause 12.0- Programme of Work
Clause 12.1
Within 14 days from the receipt of the Letter of Acceptance by the Government, the Contractor shall
submit to the S.O, a work programme for carrying out of the Works, arrangement and methods of
construction
Clause 12.2
The S.O shall approve, reject or request the Contractor to supply further information to clarify after
receipt of the Contractors programme
From the clauses above, it could be concluded that the contractor should submit their work
programme to employer for approval before they could carry out the works. In PAM 2006, it allowed
more days for contractor to prepare the information on work programme and the method statement as
compared to PWD 203A which stated 14 days only. For both PAM 2006 and PWD 203A, the architect
and S.O had the right to approve, reject, make clarify and instruct the contractor to revise the work
programme from time to time.

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PAM 2006
Clause 4.0- Statutory Obligations, Notice, Fees and Charges
Clause 4.1- Statutory Requirement
The Contractor shall comply with and submit all notices required by any laws, regulations, by-laws,
terms and conditions of any Appropriate Authority and Service Provider
Clause 4.4- Fees, levies and charges
The Contractor shall pay and indemnify the Employer against any liability in respect of any fees, levies
and charges including any penalties which may arise from the Contractors non-compliance with any
laws, regulations, by-laws terms and conditions of any Appropriate Authority and Service Provider in
respect of the execution of the Works and all temporary works.
PWD 203A
Clause 21.0- Compliance with the Law
Clause 21.1
The Contractor shall comply in all respects with any law, regulation or by-law, or any order or directive
issued by any public authority, relating to the Works. The Contractor shall submit to the S.O all
approvals received by the Contractor. The Contractor shall keep the Government indemnified against
all penalties and liability of every kind for breach of any Statutory Requirements.
Clause 79.0- General Duties and Performance Standard
Clause 79.1- Industry Practice
The Contractor shall provide and perform the Works in a proper manner in accordance with good
management and best industry practice and to the best advantage of the Government and shall comply
with all law, statues and any guidelines or direction issued by the Government.
From the clauses above, it could be concluded that PAM 2006 and PWD 203A emphasised the
contractor to comply with and submit all notices required by any laws, regulations, by-laws, terms and
conditions. Besides, the contractor should keep the employer from any breach of non-compliance with
statutory requirements. Besides, in PWD 203A, it stated the contractor should manage and practice by
complying with all laws, statues and guidelines issued by authority.
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PAM 2006
Clause 5.0- Levels and Setting out of the Works
Sub-Clause 5.1- Setting Out
The Architect shall determine all levels which may be required for the execution of the Works and shall
provide the Contractor with drawings and information to enable the Contractor to set out the Works.
The Contractor shall at his own cost rectify any errors arising from inaccurate setting out.
PWD 203A
Clause 19.0- Setting Out
Clause 19.1
The Contractor shall be responsible for the true and proper setting out of the Works and for the
correctness of the positions, levels, dimensions and alignments of all parts of the Works and the
provisions of all necessary instruments, appliances and labour.
From the clauses above, it could be concluded that in PAM 2006, the architect should assist the
contractor for setting out the works. However, if there were any errors arising from incorrect setting
out, the contractor should rectify at his own cost. In PWD 203A, it emphasised that the contractor
should responsible for the proper setting out of the works and ensured that the sufficient instruments,
appliances and labour were available.
PAM 2006
Clause 6.0- Materials, Goods and Workmanship to Conform to Description, Testing and
Inspection
Clause 6.1- Standards of works, materials, goods and workmanship
All works, materials, goods and workmanship shall be of the respective quality and standard described
in the Contract Documents and required by the Architect.
Clause 6.2- Provision of vouchers
The Contractor shall upon the request of Architect, provide him with vouchers or such other evidence
to prove that the materials and goods comply with Contract Documents.

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Clause 6.3- Inspection and testing

The Contractor shall provide samples of materials and goods for testing before incorporation into the
Works.
Clause 6.5(a) - Work not in accordance with the Contract
If the Architect finds any works, materials, goods or workmanship which is not in accordance with the
Contract, the Architect shall instruct the Contractor in writing for removing and not to bring such
materials and goods into the Site.
Clause 6.7- Failure of Contractor to comply
If the Contractor fails or refuses to comply with the written instruction of the Architect, the Employer
may employ and pay other Person to carry out the subject matter of the written instruction. All costs
incurred including any loss and expense shall be set-off by Employer.
Clause 6.8- Warranties in respect of materials and goods
If the Contract requires any manufacturer, sub-contractor or supplier to give a warranty or guarantee in
respect of any proprietary systems, materials and goods supplied, the Contractor shall procure such
warranties or guarantees and submit to Employer.
Clause 14.0- Materials and Goods
Clause 14.1- Materials and goods not to be removed
Materials and goods delivered to the Site for incorporation into the permanent works shall not be
removed until completion of the Works.
PWD 203A
Clause 35.0- Materials, Goods and Workmanship
Clause 35.1- Materials, Goods and Workmanship
All materials, goods and workmanship shall be of the respective kinds and standard described in the
Specification and of good quality and in accordance with the standard of the workmanship in the
industry. The Contractor shall prove to the S.O that the materials and goods comply with the
Specification.
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Clause 80.0- Restriction and Procedure on Use of Imported Materials and Goods
Clause 80.1
The Contractor shall use local goods/materials as listed in the Senarai Bahan/ Barangan Buatan
Tempatan issued by IKRAM QA or SIRIM QA Services Sdn Bhd. If the Contractor fails to comply
with this requirement, the Government may reject the goods/materials which are found to be not in
compliance with the requirement.
From the clauses above, it could be concluded that in both PAM 2006 and PWD 203A, the
employer focused on the supplied materials, goods and workmanship should be complied with the
kinds and standard described in the specification and of good quality. In PAM 2006, if the materials,
goods and workmanship was not in accordance with the Contract, the Architect should instruct the
contractor in writing for removing and not to bring the materials and goods into the Site. However, it
was found more strict in PWD 203A, the contractor should make sure the local goods/materials as
listed in the Senarai Bahan/ Barangan Buatan Tempatan, if contractor fails to comply, the employer
could reject the goods and materials.
PAM 2006
Clause 7.0- Royalties and Intellectual Property Rights
Clause 7.1- Indemnity to Employer
The Contractor shall indemnify the Employer against all claims, proceedings, damages, costs and
expenses which may be brought against the Employer or to which he may be subjected to by reason of
the Contractor infringing or being held to have infringed any such intellectual property rights.
PWD 203A
Clause 64.0- Intellectual Property Rights
Clause 64.1- Intellectual Property Rights
The Copyright and all other proprietary rights in the Works and other material developed and supplied
by the Contractor shall vest in and shall be the sole property of the Government; the Contractor shall
not during or at any time after completion of Works question or dispute the ownership of the
Government.

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From the clauses above, it could be concluded that in PAM 2006, the employer focused on the
additional claims and expenses which brought to him due to being held to have infringed of any
intellectual property rights. However, in PWD 203A, the employer focused on the ownership of the
property.
PAM 2006
Clause 8.0- Site Agent
Clause 8.1- Site Agent
The Contractor shall appoint a competent person to be the Site Agent. The Site Agent for the purposes
of the Contract shall be deemed to be the Contractors authorised site representative and necessary to
execute the Works efficiently and satisfactorily.
PWD 203A
Clause 59.0- Site Agent and Assistants
The Contractor shall keep constantly on the Site a competent, efficient, suitability qualified,
experienced and good character site agent and his assistants as may be necessary who must be capable
of receiving instructions in Bahasa Malaysia.
From the clauses above, it could be concluded that in both PAM 2006 and PW 203A, the
contractor should appoint a competent site agent to execute the works and receive instructions from the
employers representatives.
PAM 2006
Clause 9.0- Access to the Works
Clause 9.1- Access to the Works
The Architect, Consultant and their authorised representatives shall at all times have reasonable access
to the Works and to the factories, workshops or other places where any construction plant, materials,
goods and work are being fabricated, prepared or stored for the Contract. The Contractor shall ensure
that all sub-contracts contain provisions entitling Architect, Consultant and their authorised
representatives to have the access.

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PWD 203A
Clause 46.0- Access For Works
Clause 46.1- Access for S.O.
(a) the S.O and any S.O representatives shall at all times have access to the Works and to the
factories, workshops or other places of the Contractor or any sub-contractor or supplier where
any equipment, materials, goods or work are being manufactured, fabricated, assembled,
prepared or stored for the Contract.
From the clauses above, it could be concluded that in both PAM 2003 and PWD 203A, the
employers representatives and consultant teams should at all times have the authority to access to the
works, factories, workshops, and other places such as stores.
PAM 2006
Clause 11.0- Variations, Provisional and Prime Cost Sums
Clause 11.4- AI on P.C Sums and Provisional Sums
The Architect shall issue AI in regard to the expenditure of P.C Sums and Provisional Sums included in
the Contract Bills.
PWD 203A
Clause 34.0- Prime Cost/ Provisional Sums
Clause 34.3
Any work to be executed, or materials or goods to be supplied for which Provisional Sums are provided
in the Bills of Quantities may, if S.O decides, be treated as P.C Sums items and should be substituted
the amount provided in the Contract with the actual amount.
From the clauses above, it could be concluded that in both PAM 2003 and PWD 203A, due to
architects instruction and S.Os instruction to the contractor, the actual P.C Sums and Provisional
Sums should substitute the original amount, and to be included in the contract bills.

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PAM 2006
Clause 12.0- Contract Bills
Clause 12.1- Measurement of building works
The quality and quantity of the work included in the Contract Sum shall be deemed to be set out in the
Contract Bills and unless expressly stated, shall be prepared in accordance with the principles of the
Standard Method of Measurement.
PWD 203A
Clause 26.0- Bill of Quantities
Clause 26.4 Standard Method of Measurement
The Bills of Quantities, shall be deemed to have been prepared in accordance with the principles of the
Standard Method of Measurement of Building Works.
From the clauses above, it could be concluded that in both PAM 2003 and PWD 203A, the
employer controlled the bills of quantities by ensuring the bills were prepared based on Standard
Method of Measurement of Building Works.
PAM 2006
Clause 18.0- Injury to Person or Loss and/or Damage of Property and Indemnity to Employer
Clause 18.2- Contractors Indemnity against loss and/or damage
The Contractor shall be liable for and shall indemnify the Employer against any damage, expense,
liability, loss, claim or proceedings due to loss and/or damage of any kind whatsoever to any property
real or personal, including the Works and any other property of the Employer.
PWD 203A
Clause 9.0- Representations, Warranties and Undertakings of the Contractor
Clause 9.1
The Contractor represents and warrants to the Government that
(a) it is a corporation validly existing under the laws of Malaysia
(b) the contractor has obtained valid registration with the Construction Industry Development
Board
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(c) it has the corporate power to enter into and perform its obligations under the Contract
(d) it has taken all necessary corporate actions to authorize the entry into and performance of the
Contract
(e) nor performance by it of the Contract will violate any provision of its Memorandum and
Articles of Association or other agreement
(f) no litigation, arbitration, tax claim, dispute or administrative proceeding is present, current or
pending, to its knowledge, threatened
(g) this Contract constitutes a legal, valid and binding obligation of the Contractor
(h) it has necessary financial and technical capability to undertake the Works
From the clauses above, it could be concluded that in PAM 2003, contractor should be liable for
and indemnify the employer against any damage, expense, liability, loss, claim or proceedings due to
damages to the property of employer. However, in PWD 203A, the contractor should indemnify the
employer from other aspects, such as valid corporation, valid registered with CIDB, financial and
technical capability.
PAM 2006
Clause 25.0- Determination of Contractors Employment by Employer
Clause 25.1 (a) - Defaults by Contractor
The Employer may determine the employment of the Contractor if the Contractor without reasonable
cause, he fails to commence the Works in accordance with the Contract.
Clause 25.1 (d) - Defaults by Contractor
The Employer may determine the employment of the Contractor if the Contractor without reasonable
cause, he persistently refuses or neglects to comply with an AI
PWD 203A
Clause 51.0- Events and Consequences of Default by the Contractor
Sub-Clause 51.1- Default of Obligations/ Events of Default
(a) Events of Default
i.

Contractor fails to commence works at the Site within two weeks after the Date for
Possession
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Then the Government shall give written notice to the Contractor specifying the default, and requiring
the Contractor to remedy the default within 14 days of the receipt of the default notice
(b) Termination
If Contractor fails to remedy the breach within the period, the Government shall have the right to
forthwith terminate the Contract
From the clauses above, it could be concluded that in PAM 2003, the employer had the right to
determine the employment of the contractor if the contractor without reasonable cause, he failed to
commence on site or he persistently refused or neglected to comply with an AI, it was known as
determination. However, in PWD 203A, if the contractor failed to do so, the employer gave the
contractor 14 days to remedy the default, if the contractor failed to remedy the breach, he was
terminated, it was known as termination.
PAM 2006
Clause 27.0- Nominated Sub-Contractors
Clause 27.1- P.C Sums and Provisional Sums- Nominated Sub-Contractors
A Person to be nominated by the Architect to supply and fix materials and goods or to execute works
where P.C Sums are included in the Contract Bills or arise as a result of an AI given in regard to the
expenditure of Provisional Sums.
Clause 28.0- Nominated Suppliers
Clause 28.1- P.C Sums and Provisional Sums- Nominated Sub-Suppliers
A Person to be nominated by the Architect to supply any materials and goods to be fixed by the
Contractor where the P.C Sums are included in the Contract Bills or arise as a result of an AI given in
regard to the expenditure of Provisional Sums.

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PWD 203A
Clause 63.0- Responsibilities of Contractor to Nominated and/or Sub-Contractors or Suppliers
Sub-Clause 63.1
The Contractor shall be fully responsible to ensure that the Nominated Sub-Contractor or Suppliers
shall conform to the terms and conditions of the Contract and shall be fully responsible for the acts,
defaults or breach of the Contract; the Government shall in no circumstances be liable to the Contractor
for those default
From the clauses above, it could be concluded that in PAM 2003 and PWD 203A, the
nominated sub-contractor and nominated suppliers were appointed by employer or employers
representatives to be fully responsible by the contractor on the P.C Sums and provisional sums and any
defaults and breach of contract.
PAM 2006
Clause 37.0- Performance Bond
Clause 37.1- Submission of Performance Bond
The contractor shall before the Date of Commencement of the Works, submit to the Employer a
Performance Bond for a sum equivalent to the percentage stated as a security for the due performance
and observance by the Contractor of his obligations under the Contract up to Practical Completion of
the Works.
PWD 203A
Clause 13.0- Performance Bond/Performance Guarantee Sum
Clause 13.1
The Contractor shall, on the date of possession of Site, provide a Performance Bond for a sum
equivalent to 5% of the total Contract Sum. The Performance Bond shall remain valid and effective
until 12 months after the expiry of the Defect Liability Period.
Clause 13.3
The Government shall be entitled at any time to call upon the Performance Bond, wholly or partially, in
the events that the Contractor fails to perform or fulfil its obligations under this Contract.
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From the clauses above, it could be concluded that in PAM 2006 and PWD 203A, the
performance bond for a sum equivalent to 5% of the total Contract Sum should be submitted to the
employer before or during the date of commencement of the works. However, in PAM 2006, the
performance bond should valid up to 3 months after practical completion of works. In PWD 203A, the
performance bond should valid up to 12 months after expiry of defect liability period.
PWD 203A
Clause 68.0- Safety at the Site
Clause 68.2- Submission of Safety Programme
(a) Within 14 days from the receipt of the Letter of Acceptance, the Contractor shall submit to the
S.O a safety programme to ensure that all construction activities required for the execution of
the Works are carried out in a safe manner and in compliance with Safety Requirements.
Clause 68.4- Safety Measures
(a) The Contractor shall ensure that the constructional plant with all other tools and equipment use
in the execution of the Works are in a safe, sound and good condition and capable of
performing the functions
(b) The Contractor is responsible for instituting a safe method of construction on Site for all the
workers and his sub-contractors
From the clauses above, it could be concluded that in PWD 203A, the contractor should be
responsible to the employer by submitting the S.O a safety programme to ensure the works carried out
in a safe manner and in compliance with safety requirements.
CONCLUSION:
In conclusion, some of the clauses in both PAM 2006 and PWD 203A stated the employers had
same levels of authority to the design, such as the access for works. However, it was obviously, most of
the clauses stated the employers were more powerful and more authority to control over the design, for
examples, the design guarantee bond, performance bond and so on.

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