PWD and position of S.

O as controversial
Contract permit S.O can delegate power to representative in doing this S.o can still act on the same
matter in parallel./ If contractor unhappy with rep decision, contractor can complain to S.O who can
reverse and change his rep decision/ These can cause misunderstand and uncertainties for all
concerned.

NSC- any case must follow NSC agreement(sub con agreement)

1.NSC argument is not acceptable/ 2. Nsc is bound by contract once he signed the contract regarding
of the tender length or even the signees are illiterate, etc
Clause 2.1 Subcontractor obligation- 2.1 sub contractor shall carry out and complete the works
accordance with contract document But
Clause 5.2. If any sub contractor find any discrepancy in between any of sub contract document
issued by contractor and architect. He should written notice in sufficient time before commencement
of construction of affected works.

Contractor refused to follow instruction to make good

Architect must issue interim payment certificate within 21 days of receiving the cotreatment
claim,failing to do so breach of contract./ Have valued and certified work that are implemented
properly and deduct out improper work.

Contractor failed to complete certain outstanding work despite engineer instruction:

Engineer instruct is not valid/ engineer should issue cpc if there were major outstanding work

Contractor refused to make contribution to cost of work

-Reasonable competent contractor should have reported to defect to client/ contractor implied
obligation to exercise reasonable care./ Contractor should have informed the employer of design
defect eg the architect drawing non-load bearing wall
Contractor made strong argument assessment of LD had to release when substantial completion
Yes, assessment of LADD should cease upon the substantial completion of the project,the contractor
could stress LAD should be considered only up to completion date.

Contractor strong protest employer due to late rejection of his EOT claim
Preserve right to claim constructor obligated to serve written notice of any potential claim/
notice should be served within the time limit stipulated in the conflict to ensure claim remain
open./ P.W.D Form 203A, under clauses 10.0 obligation of the contractor state that contractor
shall construct, complete, test and commission the works in accordance with the specification,
contract drawings and any other documents specified in the contract document.

Appointed NSC for highway however there is discrepancy between main and sub contract.
Take note that relation between NSC and the main contractor is through sub contract agreement/
Therefore, NSC should follow the sub contract provision

Contractor delayed due to employer change different material

Delay may relucted in contractor incurring additional cost, which extend to recover from employee,
either under term of contract or common law damages/ Odd situation may arise contractor lose a
dispute to Eot, the pay award to employer but the delay cost will be incurred.

If any contractor not undeerstand term of contract, due to that the project will delay. As a project
manager what u should say/do to contractor. Is this justify?
Position of nsc very clear- cannot complain did not understtand the term- time not enough, ld too
high, contract not clear, if sign cannot complain. If not clear must complain before sign, if late LD, if
not finish CNC.

Wihout cnc, LD did not start. Given case study(if the work delay but no CNC, is the architect justify to
charge LD to contractor)
LD will not start without CNC, architect must be firm saying work is not complete with the certificate
As a contractor, if some delay happen what he should do?
Highlight matter to S.O to get written approval of EOT. If not approval it will given certificate of non
completion and subject to LD. If CNC not given so no need penalty for LD.
EOT: Clause 23.8 Relevant Clauses (a) “Force Majeure”; (b) exceptionally inclement weather; (c)
damages resulting to insurance claim relevant to Clause 20.A, 20.B, or 20.C {not Contractor’s default};
(e) not having received in due time necessary AI, etc… (i) specifically applied in writing “in sufficient
time”, (ii) not due to Contractor’s or NSC’s default Clause (f) delay by Employer in giving possession of
Site or any section, in accordance with Clause 21.1 and 21.2; (g) compliance with AI under Clauses 1.4,
11.2 & 21.4; - 1.4 discrepancies in Contract Documents; - 11.2 instructions requiring a Variation;
(h) delay on the part of NSC for reasons as per Clauses 21.4(a) to 21.4(w);- NSC entitle to EOT only if
sub-contract works was affected by such reasons and follow procedures (i) re-nomination of NSC as
set out in Clause 27.11; (j) delay on the part of craftsmen, etc. employed by the Employer to execute
works not forming part of Contract or failure to execute such works; (k) delay or failure in the supply
of materials and goods which the Employer had agreed to supply;

*Load bearing wall- implide coalition(must explain)

Architect show the wall in drawing is non-load bearing wall,but contractor know that wall is load
bearing wall/contractor demolish that particular wall,causes the building to collapse/ Client bring case
to court the judge consider the contractor had implied knowledge to know the wall is load bearing
and should inform architect about the error made on drawing.

Mitigation way to PWD 5 step(remember)

1. Explain main way to mitigate in through negotiation and communication with S.O

**Contractor proceed with work with claim that architect issue a verbal instruction but after work
the architect denied, as project manager what is the advice.
1. Try to verify verbal instruction with architect
2. Arrange negotiation between architect and contractor to discuss for complete works
3. Look significant work, verify the acceptance of architect in terms of quality and cost of additional
works
4. Negotiate claim of additional work with contractor

Architect wan to issue cpc, but as a project manager realise there is major defects. What is advice?
Don issue CPC, make sure contractor finish repair. Major repair before cpc, after CPC is minor repair.
Clause 25 Contractor default: if without reasonable cause, fails to commence the Works in
accordance with the Contract; 25.1 Defaults by Contractor (b) if without reasonable cause, “wholly or
substantially” suspends the Works before completion; (c) if he fails to proceed regularly and/or
diligently with the Works;(d) if he persistently refuses or neglect to comply with an AI; 25.2 Procedure
for determination - Employer or Architect will issue on behalf as per 25.2 specifying which grounds
under 25.1. - if Contractor shall continue the default for another 14 days from receipt of the notice,
the Employer may within 10 days from the expiry of the notice, determine the employment by a
further written notice 25.4 Rights and duties of Employer and Contractor a) upon determination, the
contractor shall vacate the site and return possession whereby the Employer may employ other
Person to complete the Works including rectification of defects.

During construction, Contractor and Employer have a difference of opinion. Refer to the agreement,
check the specification stated in contract./ Both of them should open communication to discussed
the problem.
Clause 24 25 define and explain
-under clause 5 of pwd allowed so to issue variation to contrator(not the big decision-over budget, big
variation order and etc.)
Variation: S.O. may issue instructions requiring a Variation in a form of a Variation Order. No
variation required by the S.O. shall vitiate this Contract. Upon the issuance of such Variation Order,
the Contractor shall forthwith comply with the Variation Order issued by the S.O.
The term ‘Variation’ means a change in the Contract Document which necessitates the alteration or
modification of the design, quality or quantity of the Works as described by or referred to therein and
affects the Contract Sum, including:
the addition, omission or substitution of any work;/ the alteration of the kind or standard of any of
the materials, goods to be used in the Works; or/ the removal from the Site of any work executed or
materials or goods brought thereon by the Contractor for the purposes of the Works other than work,
materials or goods which are not in accordance with this Contract.
All variations instructed in writing by the S.O. in accordance with clause 24 hereof shall be measured
and valued by the S.O. The valuation of Variations, unless previously or otherwise agreed, shall be
made in accordance with the following rules 25 A, B, C.
Clause 5 All instructions issued by the S.O. shall be in writing. The Contractor shall forthwith comply
with all instructions issued to him by the S.O. If such instruction is given orally, the S.O. shall then
issue a written instruction within seven (7) days from the date of such oral instruction is given.

What is advantage of ADR- why better for ADR

TDR- Litigation: Dispute resolution procedure govern by the statutewhich takes place in the courts
and involves third parties and a judge. The process is carried out in public and has to follow the
procedural requirements of the courts.
Advantages: A legally qualified judge /Achieve finality / Effective
Disadvantages: Adversarial in nature – damage business relationship/ Expensive and lengthy process/
Intimidated and in pressure
Arbitration- Is the settlement of dispute by a tribunal made up of one, two or three arbitrators whose
award is legally binding and enforceable by the courts
Without hearing- 1. Submission of written statement to the other party and arbitrator 2. Inspection
by arbitrator 3. Arbitrator may seek clarification 4. Decision
• With hearing: 1. After necessary inspection or clarification oral/ submission to arbitrator and
arbitrator may question the parties and witnesses- 2. Decision
Arbitration / Advantages:Faster than litigation/Cheaper than litigation/Privacy/Flexible/
Disadvantages:Getting more procedural

ADR- CHARACTERISTICS OF ADR Consensual by both parties/ Must be agreement/Procedure by the

3rd party must be agreed by both partie/ Solution and decision cannot impose on parties/ The dispute
will resolved if everyone agrees to terms of settlement/ Conducted ‘without prejudice’ and
confidential basis ADVANTAGE: Cost/ Preserving/ Outcome/ Confidential and privileged.
DIsadvantage: Early disclosure can be damaging/ Outcome not binding/ Prone to error and can be
unfair/ uncertainty/ In equality
CONCILIATION: Neutral third party plays a role as a facilitator – no
Recommendation/No private meeting/ Conciliator must be absolutely independent of the parties to
the contract, bring parties together for open discussion, do not take sides, do not make decisions or
make judgement
MEDIATION- Neutral third party listens to the representations from the disputing parties and help to
formulate mutually acceptable solution to the dispute /Private sessions/ Conciliatory, not adversarial,
process/ Win-win situation sought - Intended to achieve a lasting solution to disputes/ Parties appoint
3rd party to serve as a mediator/ Relatively quicker than litigation, relatively cheaper than litigation,
Private
ADJUDICATION- Parties will present disputes to a neutral individual (adjudicator)(3rd party)/ The 3rd
party will gives a decision which bind the parties (temporarily until finally determine by
arbitration/litigation) Adjudicator is not a judge or arbitrator. /He obtain his power from agreement
between parties, where the parties agreed that the adjucator’s decision shall decide for them
ADR [PAM] Cl 34.1, disputes under cl 30.4 (set-off) to refer to adjudication before arbitration; if
after PC go to arbitration (cl34.5)/Other disputes can also be referred to adjudication/PAM
Adjudication rules apply/ Adjudicator’s decision bound up to PC (cl 34.4)…may refer to arbitration
within 6 wks of the adjudicator’s decision • Arbitration – clause 34.5 – 34.11 • Mediation – clause 35
• Not mandatory • PAM Mediation rules apply ADR

Six method manage contractual claim

1.Record keeping- factual evidence including daily report/ 2.Knowledge of contract/ 3. Preservation of
right- written of potential claim should be served within the time./ 4. Quality change order: any
change order involve extra cost/ 5. Planning and scheduling- proper planning ensure adequate
resources care on that time/ 6. Proactive action- quick response to complain from client,eot recover.

How to avoid dispute conflict in project as a project manager, what are the steps.
Project manager responsible: 1. The cost of the project must be completed at a cost that does not
exceed the budget. 2. Quality, product or output of the project must meet the required specifications
and criteria. 3. The time, the project must be done in accordance with the period and the end date
specified.
Avoid conflict: 1. Force: Impose one's views at the expense of the strength of another. 2. Smoothing:
Minimize the differences and emphasize togetherness to issues of conflict. 3. Withdrawing:
Withdrawing from the real contradictions and conflict situations. 4. Compromise: Consider the
various issues, bargaining, and look for ways of settlement or that bring satisfaction to the parties
involved in the conflict. 5. Problem solving: combining multiple the views and from several different
perspectives
In the construction industry, since differences in perceptions among the participants of the projects,
conflicts are inevitable. If conflicts are not well managed, they are quickly turn into disputes. Disputes
are one of the main factors which prevent the successfully completion of the construction project.
Methods: 1. Completion by both parties in the form of consultation and negotiation 2. Third parties,
namely: a. Mediation appointed by the parties or alternative dispute resolution institutions. b.
Conciliation. c. Arbitration institutions

Responsiblity of parties
Employer/client- In relation to the contracts of appointment of the professional consultants, this
party is commonly referred to as the “client”.
Contractor- A main building contractor is engaged by the employer to carry out and complete the
works. This contractor will usually, in turn, engage subcontractors to carry out and complete separate
parts of the works. Contactors may also take responsibility for the design of all or part of the works
they are to execute depending on the procurement method and/or contract used.
Contract administration: There is variety of types of contracts used in civil engineering projects. Each
type has its specific characteristics. Contracts may be prepared under the heading of one type but
could include characteristics of more than a single type. Many professional societies and government
agencies have done a great deal toward the standardization of construction contracts such that the
general form and content are well established for the various types of construction that may arise.

Six element in binding contract: Offer/ Acceptance/ Consent/ Competency/Consideration/Legality

Standard forms are prepared jointly by professional bodies and organizations representing
contractors. PAM/ PWD/ CIDB
The standard (general) forms of conditions. For example, FIDIC general conditions of contract
comprise clauses that cover the following items: Definitions and interpretations.• Engineer and
Engineer's representative.• Assignment and sub-contracting.• Contract documents.• General
obligations.• Labor, Materials, plant, and workmanship.• Suspension.• Commencement and delays.

Seven Principles of Effective Cost Management

Provide Clear, Consistent Performance Objectives/Provide Knowledge, Tools To Succeed/Understand
True Costs/Excellence: The Only Acceptable Performance Target/Reduce Organizational Complexity
Commit to Broad-Based, Knowledge-Driven Involvement/Management Decisions Impact
Organizational Cost
Cost control includes monitoring cost, task completion, and time. Earned value management (EVM) is
an effective technique for tracking costs and examining project expenditures relative to completed
work.
Value management- A clear definition of what the owners and end users mean by value, thus
providing a precise basis for making decisions throughout the project. /Optimising the balance
between differing stakeholder needs and expectations. /A basis for ensuring the project is the most
effective way of delivering business benefits and satisfying business needs.

Nature and purpose of financial statement

Prtiodic cost which show financial status of project result internal during construction stage/ give
necessary cost information to employer,architect and other relevant parties to enable the project
team to control the cost of project.
Cost effect in final statement: cost of such anticipated variation are usually constructed based on
prelimary sketch and automation for architect/ important that injunction on which estimate has been
based should be clearly spent out in decription of each anticipate variation item in financial statement
to avoid misunderstand.

Contractor some delay to happen in project (what he should do to the SO?) For EOT or given
certificate non completion. Contractor must give evidence proof that the delay is not caused by
them./ Contractor must get approval from S.O before the work start./Contractor should write a
written agreement to S.O for his intention to do the work for EOT./ Contractor should state the
reason why the project need EOT./(EOT is sometimes compensable or non-compensable because of
the owner are because of another factor. E.G: bad weather, political issue)

Mitigation ways for the Contractor (negotiation) Contractor must give evidences proof that the delay
is not caused by him/ Contractor must get approval from SO before the work start/ Contractor should
make written agreement to SO for him intention to do work for EOT/ Contractor should state the
reason why the project need EOT.

How should the contractor do the reserve his rights to claim for any delay. Delayed by an event that
impact on the completion date, but not fault by contractor, then contractor may be granted on EOT
and able to make a claim for loss and expenses/ If default by client, contractor need to prove the
default not by him. Then the contract become time-at-large and not provision of EOT, which the initial
construction date is no longer importance, contractor is allow to complete the work within the
reasonable time.

CPC and CCC CPC is issued by the Architect to the Contractor while the CCC is issued by the Architect
to the client or owner./ CCC confirms that the project is completed and has met all statutory
requirements with regards to health and safety aspects and is ready to be occupied with all essential
utilities services connected./ CPC on the other hand confirm that the contractor has completed all the
works required under the contract. /Once CPC issued, no more work from Architect, only minor
repair.
Explain if the Employer delay the tests by more than weeks. Employee is considered to have taken
possession of the completed works on the date; it is schedule to be completed./ Engineer shall issue a
Taking-Over Certificate to the contractor to certify the taking-over./ Contractor cannot test the
equipment unless engineer gives instruction.

Reason for the use of nominated subcontractor include Employee chooses the company or form to
be nominated./ Employee is able to choose a subcontractor without the decision having to be based
on price./ The timing of the involvement and appointment of the subcontractor is wholly the
employer’s decision./ If the employee requires, the subcontractor will be made a fully involved part of
the contracting team, utilising its design expertise and contract knowledge./ Contractual liability is
established early, providing a clear line of responsibility to the employer