Standard Form of Contract 1

5/12/2018 Sta nda rd For m of Contra c t 1 - slide pdf.c om
STANDARD FORM OF
CONTRACT
PROF MADYA NGAH YAHYA EMBONG
http://slide pdf.c om/re a de r/full/sta nda rd-for m-of-c ontra c t-1 1/24

FORMS OF CONTRACT
 Standard forms
 Model forms
 Modified forms
 Ad hoc [because of situation / not planned in
advance]
 Bespoke [specially drafted/ according to the
needs of individual project]

STANDARD FORM OF CONTRACT

WHAT IS STANDARD FORM OF CONTRACT?
DEFINATION
Building Contract Dictionary (Blackwell Science, third edition) defines

standard form as :
A PRINTED FORM OF ONTRACT CONTAINING STANDARD CONDITIONS W HICH ARE

APPLICABLE (OR CAN BE MADE APPLICABLE BY THE USE OF ALTERNATIVE) TO A
WIDE RANGE OF PROJECTS. THEY ARE PREFERABLE TO SPECIALLY DRAFTED
CONTRACTS BECAUSE THEY ARE INTENDED TO BE COMPREHENSIVE & AVOID
MOST OF THE PITFALLS WHICH SURROUND CONTRACTUAL RELATIONS IN THE
BUILDING INDUSTRY.
CHARACTERISTICS
Arrived at through a process of consultation & negotiation between representatives of
various sectors of the industry like professional institutions & contractors associations
The form set out the terms & conditions on which the contract between the parties are to be
executed
The terms & condition are generally suitable for a wide range of common projects or jobs

ADVANTANGES OF STANDARD FORM

Familiarity
Fair to all parties
Less ambigious
Cost & time saving
TYPES OF STANARDS FORMS

In Malaysia, the two (2) most commonly used are :
JKR (PWD) Standard Form of Contract
PAM Standard Form of Contract
The forms are widely used for government projects
(public sector) & the latter for private projects.
Figure 1 completes the picture on the use of standard
form of contracts locally & internationally

STANDARD FORMS OF CONTRACT
GOVERNMENT/PUBLIC PRIVATE SECTOR INTERNATIONAL

SECTOR CONTRACTS
FIDIC Conditions
ICE Conditions
JKR/PWD MISCELLANEOUS
203 (Rev 2007) CIDB Form for IEEE Conditions

building contracts ImechE Conditions
without quantities 2000 Edn
JCT Conditions
203A (Rev 2007) Modified JKR/PWD
Forms, e.g. LPK,
For NSC MHA etc.
203P (Rev 10/83) BUILDING WORKS CIVIL ENGINEERING M&E WORKS
WORKS
For Nominated
Suppliers PAM 2006-Without
Quantities IEM Conditions IEM Conditions
PWD form DB/T (2000
Edn) for Design & Build PAM 2006-With -IEM.CE 1/89 -IEM.ME 1/94
Turnkey Contract Quantities
-IEM.CES 1/90 TNB Conditions, etc
PWD (2010) ? Latest PAM NSC 2006
revison
Figure 1 : Standard Form of Contract (Part II)
Source: Adapted from, Harban Singh KS, ³ Engineering and Construction Contracts
Management; Law and Principle´, 2002

B ACKGROUND
Historically, the initial set o f S tandard Forms were
drafted by the va rious government agencies for works in
the public sector i.e. earlier version of PWD f orm
modeled on the RIBA Form of Contract 1931 and the
latest revisions coming in 1983.

Due to progress of development projects, many other
prof essional bodies published their own version of
standard forms to suit the current development and
modernisation and variation of procurement methods i.e.
IEM was first published in 1989 and PAM in 1969 (Lian,
Im and Kheng, 2000).
6
GOVERNMENT / PUBLIC SECTOR
Public Works Department
 PWD Form 203 (Rev 2007) without

quantities.
 PWD Form 203A (Rev 2007) with quantities.
 PWD Form 203N (Rev 2007) f or Nominated
Sub-Contractors.
7

Government / Public Sector
Public Works Department (cont d) ·
 PWD Form 203P (Rev 10/83) f or Nominated

Suppliers.
 PWD Form DB/T f or Design and Build
Turnkey Contracts.


(contd)
Construction Industry Development Board
 CIDB Form for Building Contracts 2000 Edition.
 Standard Prof orma fo r Contract

Administration (For use in conjunction with The
CIDB Standard Form of Contract for Building
Works).


(contd)
 CIDB Standard Form of Sub-contract For
Nominated Sub-Contractor [Form CIDB.B
(NSC) / 2002] (To complement the Standard
Form of Contract for Building Works).
 Model Terms of Construction Contract for
Subcontract Work (2006) [CIDB / CICC].
10

Model Terms of Construction

Contract for Subcontract Work.
Intended to be used as part of a generally stand ¶
·
alone subcontract and not back to back to ¶ ·
any one main contract.
The generic drafting style and f lexibility mean it

can be used as subcontract terms with any main
contract whether a one-off contract (bespoke
& ad hoc) or published standard f orm such ´ µ
as the PWD, PAM, IEM, CIDB, FIDIC or JCT

contracts.
11

CIDB Forms
CIDB published its own version of Standard

Forms for building works (main contract and
sub contract). But the question i s do we
need another public sector standard f orm?
There is presumption that CIDB will replace

PWD Standard Forms?
12

Other Public Sector Forms
Some statutory bodies and public sector

related bodies utilise the PWD Standard
Forms with slight modifications and/or
amendments.
 Drainage and Irrigation Department (DID/JPS)
 Lembaga Pelabuhan Kelang (Port Klang
Authority)
13

Private Sector
PAM
 PAM 2006 with quantities.

 PAM 2006 without quantities.
 PAM NSC 2006 to be used for NSC where the
main contract is based upon the above.
14

PAM
Origin
Rather than developing and drafting a new
standard form on its own, PAM in
collaboration with the ISM in 1969 adopted
1963 JCT Standard Form of Building
Contract (Reprinted 1968) with
modifications to be used for private sector
building works through traditional general
contracting contract procurement method
comprised:
15

PAM [Previous Version]
 PAM/ISM 1969 Standard Form of Building

Contract With Quantities.
 PAM/ISM 1969 Standard Form of Building

Contract Without Quantities.
 PAM NSC 1970 Standard Form of Contract for
Nominated Sub-Contractors to be used with
PAM/ISM 1969.
16

PAM 1998
Usage
Essentially for :
1. 1. Private sector projects
2. 2. Building works
3. 3. Contracts undertaken through Traditional
General Contracting Procurement
17

Private Sector
Civil Engineering works

 IEM Condition IEM.CE 1/89. Mainly for Civil
Engineering Construction (Second Reprint
1994).
 IEM Condition IEM.CES 1/90. Sub-contract
for use in conjunction with the IEM Condition
(First Reprint 1994).
18

Private Sector
M&E works
 IEM Condition IEM.ME. For mechanical and
electrical work (First Edition 1994).
 Sub contract? [absent]
19

IEM Forms
Origin
Due to rigorous/harsh and pitfalls of the
/PWD
JKR
PAM f orms for
f orms engineering of the
and unsuitability and
infrastructure projects, construction
engineering prof essionals attempted to
employ UK engineering forms i.e. ICE,
IMECHE, IEE, JCT and FIDIC forms with
modifications.
20

IEM Forms
Origin (cont·d)
The ´ modifications µ were sub ject to job
ific and ad
unccertainty,
spe hoc
inco basis.
nsisten anuds, lead
cy Th leading
ing to
construction disputes.
Due to that, IEM attempted to fill in the

lacuna by drafting their own Standard Forms
started in 1989 for the traditional general
contracting.
21

IEM Forms
Usage
 Private sector projects.
 Civil engineering, Mechanical and Electrical

works.
 Procured under the Traditional General
C
ontracting.
22

International Contracts
 FIDIC f amily
 JCT Family
 IEEE
 IMechE
 ECC
 PPC 2000
23

THANK YOU

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5/12/2018 Sta nda rd For m of Contra c t 1 - slide pdf.c om

PROF MADYA NGAH YAHYA EMBONG

5/12/2018 Sta nda rd For m of Contra c t 1 - slide pdf.c om

5/12/2018 Sta nda rd For m of Contra c t 1 - slide pdf.c om