GOVERNMENT OF MALAYSIA STANDARD FORM OF DESIGN & BUILD / TURNKEY CONTRACT (PWD FORM DB/T)

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1 GOVERNMENT OF MALAYSIA STANDARD FORM OF DESIGN & BUILD / TURNKEY CONTRACT (PWD FORM DB/T)

2 CONDITIONS OF CONTRACT FOR DESIGN & BUILD AND TURNKEY PROJECTS (PWD FORM DB/T) This form has been approved by Attorney General s Chambers (Reference: PN. (Adv) 250)

3 GENERAL CONDITIONS OF CONTRACT Table of Contents ARTICLES OF AGREEMENT CONDITIONS OF CONTRACT AA/1 1. Interpretation, definitions, etc Method of reference to s Articles etc. to be read as a whole Definitions Singular and Plural Terms Marginal Headings or Notes 3 2. Contractor's Obligations Contractor s General Obligation Design Guarantee Any reference to Contractor's design to include design proposed by others Contractor s Design Responsibility Quality Assurance Contractors duties, etc not relieved Statutory Checks Contractor responsible for safety Care of the works Excepted Risks Duties of the Contractor to inform of any accident, and failure etc No remedial works by the Contractor unless directed Contractor to render necessary assistance Urgent Repairs 6 ii

4 Table Of Contents (Cont'd) Employment of Consultants Proposed Consultants Employment of Consultants with the consent of the P.D Bumiputera Participation List of Bumiputera organization Default by Contractor Contractor s obligations unchanged Programmed of works to be furnished Action by the P.D Modified Programmed or Further Information Programmed to be Revised Contractor to remain responsible 9 3. P.D.'s right to take action 10 Officer empowered to act on behalf of Government and to approve variations P.D.'s Instructions Compliance with P.D.'s instructions Action of P.D. in the event of non-compliance with instructions P.D.'s instruction to be in writing Notices Custody and Supply of Contract Documents Custody of Contract Documents Copies of Contract Documents Drawings etc. of the Contractor. 11 iii

5 6.4 Availability of documents on site Supply by Contractor of `as built' drawings etc Use of documents Contractor's plans and specifications to use S.I. Units Sufficiency of Contract Documents Contractor to provide everything necessary Conditions to prevail Discrepancies Discrepancies within Contractor s Proposals Materials, goods and workmanship Standards and Codes of Practice Quality of materials, goods and workmanship Vouchers of materials and goods Checks and Tests Removal from Site - work, materials or goods Tests Cost of tests Further tests Restriction and Procedure on Use of Imported Materials and Goods Contractor to use materials of Malaysian Origin Substitution of imported materials etc. with local materials Procurement based on FOB and use of Government s MTO Documentary evidence of compliance 15 iv

6 10. Construction Plant, Equipment, Vehicles and Machineries Payment of Port Dues Administration of Customs Authorities Importation by Agent Application of custom duties Landing Charges Customs Clearance Contractor to Supply Information Non-removal of Materials and Equipment on site Statutory obligation, notices, fees and charges Statutory Requirements Compliance with Statutory Requirements Divergence between Statutory Requirements and Contract Documents Emergency Compliance with Statutory Requirement Fees, charges, rates or taxes Effects of changes in Statutory Requirements after date of tender Changes in Statutory Requirements requiring amendments to Contractor s Proposals Custom Dues and Taxation Custom Dues Payment of tax on profit Payment of Income Tax by non-malaysian Personnel Antiquities Effects of find of antiquities P.D.'s instructions on antiquities found Direct loss and/or expense 19 v

7 15. Copyright, royalties and patent rights Treatment of royalties etc., indemnity to Government P.D.'s instructions, treatment of royalties etc Payment of royalties, etc Site boundaries and setting out Inspection of Site Employment of Workmen Malaysian citizens Ratio of workmen Particulars of labor Source of labor Sub-contractors to comply Compliance with Employment Act 1955 etc Epidemics and Medical Attendance Epidemic Medical attendance Days and hours of working Days and hours of working Contractor to bear costs Contractor's Project Manager Employment of Contractor's Project Manager Instructions given to Contractor's Project Manager Wages books and time sheets Default in payment of wages 24 vi

8 25. Discharge of Workmen Access for P.D. to the Works Variations Definition Instructed variation Variations for the purpose of suitability, functionality and safety Cost to be borne by Contractor Contractor s obligations unchanged Valuation of Variations Valuation of instructed Variation Valuation of omission of work Allowance for site administration etc Day works Variation by Contractor affecting other works Fair Valuation No allowance to be made for loss or expense Adjustment of Contract Sum Provisional Sums Definition Adjustment of Contract Sum in respect of Provisional Sums Contract Sum Adjustment of Contract Sum to be in accordance with the Conditions Adjustment of Contract Sum to be accounted for in the Interim Payments 28 vii

9 31. Sub-letting and Assignment Sub-letting of design Sub-letting of Works Determination of Sub-contract Employment of Sub-Contractor Assignment of benefit Artists and Tradesmen Government's Indemnity in respect of Injury to Persons and Damage to Property Injury to persons Damages to Property Negligence of Government or P.D Insurance against Injury to Persons and damage to Property Insurance for personal injury or damage to property Insurance Liability etc. of Government Production of Policies Default in insuring Indemnities to Government in respect of claims by Workmen Employees Social Security Act, Registration with SOCSO Scheme Payment of Contribution Default by Contractor 32 viii

10 37. Insurance of Works Risks to be insured Production of policies Default in renewing insurance Application of insurance money Performance Bond a) Condition precedent and validity of Banker s/insurance Guarantee 34 b) Performance Guarantee Sum in lieu of Banker s/insurance Guarantee Application Release of Performance Bond Forfeiture Possession of Site Condition precedent to commencement of work Date for possession Possession by stages Delay in giving possession of whole, sections or parts of the Site a) Delay in giving possession of whole of the Site beyond ninety (90) days 35 b) Delay in giving possession of section or parts of the site beyond ninety (90) days Postponement Mutual Termination 40.1 Notice of Termination 37 ix

11 40.2 Removal and disposal of Contractor s Equipment etc Payment on Termination Works practically completed Final account upon termination Contract to Continue in force Completion of the Works Date of completion Certificate of Practical Completion Time, the essence of Contract Damages for non-completion Damages for Non-completion and written notification to the Contractor Reimbursement of Liquidated Damages Intervention of Variations Sectional completion Partial Occupation/Taking over by Government 40 (a) Certificate of Partial Occupation 40 (b) Defects Liability 40 (c) Certificate of Completion of Making Good Defects 40 (d) Insurance of Works 40 (e) Reduction of Liquidated and Ascertained Damages 40 (f) Performance Bond not affected 41 x

12 45. Delay and Extension of Time Delay and Extension of Time Claims for Loss and/or Expense due to delay Procedure for Claims Notice of Claims Submission of claims Testing and Commissioning of Mechanical, Electrical and Other Services Requirements for Testing and Commissioning Failure to pass tests Notice of tests Further Adjustments to Controls Records of tests Commissioning of Equipment Defects After Completion Defects Liability Period Schedules of Defects Default of the Contractor Diminution in the value of the Works due to defects etc Certificate of Completion of Making Good Defects Unfulfilled Obligations Interim Payments a) Interim Payments based on Payment Schedule 46 b) Interim Payments based on Valuation of Works Application for Interim Payments 47 xi

13 50.3 a) Interim Certificate based on Payment Schedule 47 b) Interim Certificate based on Valuation of Works 48 c) Honoring of Interim Certificate Final Account and Final Certificate Final Account Final Certificate Contractor s delay in submission of final account Final certificate to be conclusive Right of deduction by Government Condition Precedent to Final Payment Effect of P.D s Certificates and Payment by Government Deduction from Money Due to Contractor Determination of Contractor Employment Defaults of Contractor Bankruptcy or insolvency Effect of determination of Contractor s Employment Effect of War or Earthquake Arbitration Reference to the Officer named in Appendix 1 for a decision Decision of the Officer named in Appendix 1 to be binding until completion of Works Reference to the Arbitrator Reference to Arbitrator shall not be commenced until after completion of the Works Powers of the Arbitrator 55 xii

14 56.6 Discretion of the Arbitrator in respect of costs and award Award of Arbitrator is final Appointer of Arbitrator Arbitration Act Law Governing this Contract Malaysian Law Contractor to accept the decision of Malaysian Court or Arbitrator Enforcement of any decision or award in Contractor s country of domicile Stamp Duty 56 SPECIAL CONDITIONS *59. Maintenance of Works and Services 57 *60. Direct Payments and Consultancy Agreement with Contractor s Consultants 58 * Delete whichever is not applicable xiii

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