Design and Build_2

Dr Khairuddin Abdul Rashid

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Session 2

PWD Form DB/T (2002)

Articles of AgreementArticles of Agreement

Conditions of Contract

Clause 1 – 15


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PWD Form DB/T 2002

Prepared by a Technical Committee set up in 1996

Chair – JKRChair – JKR

Members – representatives from JKR, JPS, DBKL, JPN, KKR, Treasury and MAMPU

1st – 2000

2nd Edition – 2002


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PWD Form DB/T 2002

Contents

� Articles of Agreement

� First to Fourth Recital� First to Fourth Recital

� Article 1 to 4

� Conditions of Contract

� Clause 1 to 58

� Special Conditions Clause

59 to 62

� Appendices


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PWD Form DB/T 2002

Subsidiary forms

� Form of Tender PWD Form

DB/T-A2002

� Addendum No 1 (Amendments

no. 1 to 10)

� Addendum No 2 (Amendments

no. 1 to 25) for Deferred

Payment only

Also a guide on the use of the form


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PWD Form DB/T 2002

Salient points

� Old concepts

Turnkey – contractor design &

supervise

D & B – contractor design,

JKR supervise

� New concepts

Turnkey – contractor design,

supervise & equipt

D & B – contractor design &

supervise


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PWD Form DB/T 2002

Salient points

� Design bond no longer required

� DLP 24 months

� 30% Bumi participation

� Bumi consultants only if project value <RM50 m<RM50 m

� Bumi + Non-Bumi JV of local consultants if project value >RM50 m

� Direct payment to contractor’s consultants

� Used when:

No expertise in JKR

Specialist design

Emergency

� Requires Treasury’s approval if to be called on direct negotiation or selective tender


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PWD Form DB/T 2002

Articles of Agreement

� Contract No / Expenditure

� Date of signing

� Parties – Government & the � Parties – Government & the contractor

� 1st Recital – project title

� 2nd Recital – Contractor’s Proposal

� 3rd Recital – Contract Sum Analysis

� 4th Recital – meeting the Government’s requirements


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PWD Form DB/T 2002


� Article 1 – Contractor agrees to

design and construct

� Article 2 – Government agrees

to pay … Contract Sum

� Article 3 – Government’s

requirements, the Contractor’s

Proposal, the Contract Sum

Analysis, the Contract

Schedule of Rates… signed

and appended


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PWD Form DB/T 2002


� Article 4 – Contract documents

i. Articles of Agreement

ii. Conditions of Contract and ii. Conditions of Contract and

Appendices

iii. Government’s Requirements

iv. Contractor’s Proposal

v. Contract Sum Analysis

vi. Schedule of Rates

vii. Form of Tender

viii. Letter of Acceptance


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PWD Form DB/T 2002


� Signature of parties

i. Contractor and witness

ii. Government and witness


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PWD Form DB/T 2002


Clause 1

� Interpretation, definitions

� Reference to clauses of the

conditions

� Documents read as a whole

� Definitions – see Cl. 1.3 (a) to (r),

p1-3

� New sub-clauses (s) to (x) on

‘deferred payment’


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PWD Form DB/T 2002


Clause 2 Contractor’s Obligations

Key obligations

� Cl. 2.1(a) Design, construct

and complete the works

� Cl. 2.2 Fully responsible for

the design, execution and

maintenance and guarantee

the Government

� Cl. 2.3.2 Novation

� Cl. 2.4.1 QA System


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PWD Form DB/T 2002


Clause 2 Contractor’s Obligations

Key obligations

Cl. 2.7.1 Care of the works up to Practical Completion or Partial Practical Completion or Partial Occupation subject to Cl. 2.7.2 (a) to (f) ‘excepted risks’

� Cl. 2.9 Employ local, regd consultants (PD’s consent)

� Cl. 2.10 Engage Bumiputera as sub-contractors (30% [40%] of CS)

� Cl. 2.11 Submit programme


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PWD Form DB/T 2002


Clause 3 PD’s Rights to Take

Action

� Cl. 3 (i) any matter related to:� Cl. 3 (i) any matter related to:

� Cl. 40 (mutual termination)

� Cl. 45 (Delay and EoT)

� Cl. 54 (Determination)

� Cl. 55 (War or Earthquake) or

� Cl. 56 (Arbitration)

is reserved for the Officer

named in Appendix 1


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PWD Form DB/T 2002


� Clause 3 (ii) PD’s rights to

issue instructions requiring a

variation under Cl. 27.2 is

subject to the financial limits as subject to the financial limits as

set out in Appendix 1

(Treasury Instructions 202)


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PWD Form DB/T 2002


Clause 4 PD’s Instructions

� Cl 4.3 must be in writing

� Cl. 4.1 Contractor shall comply

in 7 days… see Cl 4.2 (non-

compliance), Cl. 27.1

(contractor object with reasons)

� Cl. 4.2 If within 7 days, the

contractor fails to comply, PD

may employ and pay others

(deduct monies due to the

contractor)


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PWD Form DB/T 2002


Clause 5 Notices

� Cl. 5 Written notices to be left

at the contractor’s office on at the contractor’s office on

site, to be confirmed by his PM

or send to contractor’s place of

business


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PWD Form DB/T 2002


Clause 6 Contract Documents

� Cl. 6.1 PD keeps the original copy, contractor keeps the copy, contractor keeps the duplicate copy

� Cl. 6.2 Contractor submit 8 certified copies, Cl 6.3 2 copies of drawings, etc, Cl. 6.4 one copy of contract documents keep at the site

� Cl. 6.5 On completion contractor to submit as built drawings


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PWD Form DB/T 2002


Clause 7 Sufficiency of Contract

Documents

� Cl. 7.1 Contractor to provide � Cl. 7.1 Contractor to provide

everything necessary…

� Cl. 7.2 the Articles of

Agreement, the Conditions and

the Appendices shall prevail

over other documents… any

ambiguity/discrepancy to refer

to PD, contractor to rectify at

his own cost


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PWD Form DB/T 2002


Clause 7 Sufficiency of Contract

Documents

� Cl. 7.3.1 (a) and (b) Documents � Cl. 7.3.1 (a) and (b) Documents

are mutually explanatory…

between the Government’s

Requirements and the

Contractor’s Proposal, the

former prevails


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PWD Form DB/T 2002


Clause 8 Materials, Goods and

Workmanship

� Cl. 8.1 the works shall be in � Cl. 8.1 the works shall be in

accordance to the contract

� Cl. 8.4 contractor to carry out

checks and tests

� Cl 8.5 PD may issue

instructions to remove from the

site or rectify any work,

materials… not in accordance

to the contract


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PWD Form DB/T 2002


Clause 9 Restriction and Procedure

on Use of Imported Materials

and Goods

� Cl. 9.1 Malaysian materials and

goods only

� Cl. 9.2 Imported materials, etc

can only be used if approved

by the Government


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PWD Form DB/T 2002


Clause 10 Construction Plan,

Equipment, Vehicles and

Machineries

The contractor is responsible and

shall pay all port dues, prepare

and submit all documents and

abide by the requirements of

the relevant authorities, pay all

charges and expenses and

supply a list to the PD


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PWD Form DB/T 2002


Clause 11 Non-removal of

Materials and Equipment on

Site

Equipment, temporary works,

materials… intended for the

works can only be removed

from the site with the written

consent of the PD


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PWD Form DB/T 2002


Clause 12 Statutory obligations,

notices, fees and charges

� Cl. 12.1.1 The contractor shall � Cl. 12.1.1 The contractor shall

comply with statutory

requirements

� Cl. 12.2 The Contractor shall

pay/indemnify the Government

against liability of any fees,

charges…


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PWD Form DB/T 2002




� Cl. 12.1.2 Divergence to be � Cl. 12.1.2 Divergence to be

brought to attention; the

contractor shall propose

amendments (in case of

emergency see Cl. 12.1.3) and

with the PD’s consent carry out

the works at his own cost

(subject to Cl. 12.3)


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PWD Form DB/T 2002




� Cl. 12.3.1 and 12.3.2 Variation � Cl. 12.3.1 and 12.3.2 Variation

in the statutory requirements /

conformity with terms of an

authority’s approval after date

of tender leading to amendment

to contractor’s proposal is

treated as an instruction of the

PD affecting a Variation under

Cl. 27.2


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PWD Form DB/T 2002


Clause 13 Custom Dues and

Taxation

� Cl. 13.1 – 13.3 The contractor � Cl. 13.1 – 13.3 The contractor

to pay all duties and taxes and

make arrangement for their

employees to pay income tax


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PWD Form DB/T 2002


Clause 14 Antiquities

� Cl. 14.1 found on the site

becomes the property of the becomes the property of the

Government. The contractor

shall not disturb, preserve the

findings, and inform the PD

� Cl. 14.2 PD shall issue

instruction

� Cl. 14.3 Compliance with 14.2

may lead to reimbursement for

loss and or/expense


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PWD Form DB/T 2002


Clause 15 Copyright, royalties and

patent rights

� Cl. 15.1 The contractor is � Cl. 15.1 The contractor is

responsible for payment of all

royalties or other sums … of

any patented articles, etc in

respect of the works other than

those provided by the PD

� Cl 15.2 Issue on patent that

arises due to PD’s instruction,

the sum added to the contract


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End of Session 2