D C C 2 0 4 3 – C O N T R AC T & E S T I M AT I N G

G RO U P 3

- M AT E R I A L S , G O O D S & WO R K M A N S H I P

- DA M AG E S F O R N O N - C O M P L E T I O N

MEMBERS :
1. - MUHAMMAD NABIL BIN SAMSUL BAHRI 17DKA18F1009
2. - MUHAMMAD FARHAN BIN RASHID 17DKA18F1017
3. - MUHAMMAD SYAMIL BIN ABDUL AZIZ 17DKA18F1019
4. - NURUL FARHANA BINTI AMIRUDDIN 17DKA18F1013
 QUALITY OF MATERIALS

• Article 875 of the Civil Transaction Law (Federal Law no. 5 of 1985) stipulates that if a
contractor is obliged to supply materials then the contractor is responsible to supply
materials of good quality according to the conditions of contract and, if not specified,
according to the prevailing custom.

• This obligation imposed by the law amounts to an undertaking by the contractor that
the materials supplied are of a good quality (as described in the contract and/or as
per prevailing custom)

• A contractor would only comply with such undertaking if the materials supplied are
fit for its purpose of use and free of defect.
 QUALITY OF WORKMANSHIP

• Article 877 of the Civil Transaction Law (Federal Law no. 5 of 1985) stipulates that the contractor must
complete the work according to the conditions of the contract.

• If it appears that the manner in which he performs the work is erroneous or contrary to the conditions of
contract, the employer may apply immediately to the courts for rescission of the contract if rectification
seems impossible.

• If rectification seems possible, the employer may request the contractor to rectify the work within a
reasonable period and if the contractor fails to rectify the work within that stipulated period, the employer
may apply to the courts for rescission of the contract or for permission to assign the performance of the
work to another contractor at the cost of the first contractor.

• This obligation imposed by the law amounts to an undertaking by the contractor that, in addition to any
special term or direction in the contract specifying the manner in which work is to be done, the work
would be done carefully and skilfully or, as it is sometimes expressed, in a good and workmanlike manner so
that the work will be reasonably fit for its purpose of use.
 DAMAGES FOR NON-COMPLETION

• If the contractor fails to complete the works by the date of completion or within any extended
time that has been fiven according to clause 45, the contractor shall pay the government a sum
calculated at the rate states as ‘estimated losses’ for the period of time.

• The work shall remain incomplete and the P.D may refused to pay the money for such damages tp
the contractor under this contract.

• The failing which such damages shall be recovered from ‘Performance Band’ or as a debt due from
the contractor, and the P.D shall informed the contractor in writing of such deductions.

• If the final review of the circumstances cause delay, P.D grants a relevant extension on time, the
government shall no longer be entitled to liquidated damages in respect of time extension.
• If after the liquidated damages payable in respect of any part of the works, the P.D issues
variation order under clause 27 which in the opinion of the contractor results in further
delay to that part of works, the contractor shall within 30 days after issurance of the
variation order inform the P.D in writing of such delay.

• If the P.D agree with the contractor that the variation results making delay to any parts of
the works, Government’s entitlement to liquidates damages of any parts of works shall be
suspended for such period determined by the P.D

• The P.D also inform the contractor in writing of such period of suspension , suspension
shall not invalidate any liquidated damages which the government may have any money
deducted or paid according with clause can be retained by the government.