MBAM SECTION

Your Contractual Question Answered

What are Preliminaries and How to Evaluate Them?

By The Entrusty Group Entrusty Group, a multi-disciplinary group of companies, of which, one of their specialisation is in project, commercial and contractual management, has been running a regular contractual questions and answers section for Master Builders member in the Master Builder Journal

In this instalment of this series, Entrusty Group will provide the answer to another frequently asked question:What Are Preliminaries and How to Evaluate Them?

Introduction In the construction industry, Bill of Quantities (BQ) is a part and common feature in many tender and/or contract documents for construction projects. Traditionally, BQ is prepared by the consulting quantity surveyors (QS), particularly under traditional or conventional building procurement system, usually following the Standard Method of Measurement published by the Institution of Surveyors, Malaysia (ISM) for building projects. A BQ typically comprises of preliminaries, preambles and measured works. When there is a disruption or delay in the project, which often leads to prolongation period of the construction contract, it is usual for

additional preliminaries to be claimed over the prolongation period by the Contractor under prolongation costs, which essentially is a loss and expense claim, as provided under the relevant contract clause/s of he standard forms of construction contract in Malaysia. In this article, Entrusty aims to provide readers with a better understanding of Preliminaries, by answering the following: What are preliminaries ? ; The relevant provisions under the common standard forms of building/construction contract in Malaysia; Case studies/scenarios; Methods in assessing additional costs of Preliminaries .

What are preliminaries ? The purpose of Preliminaries section in BQ is to provide information, particulars, general obligations and liabilities, etc of the project concern to tenderers, who should then price for the various items provided under this section. The Preliminaries section, which form part of the BQ is normally priced by the tenderers separately from trade or elemental bills , which are integral parts of the BQ. In the Standard Method of Measurement 2 in Malaysia, items under Preliminaries are grouped into 13 listed categories, as follows-

80

MBJ Volume 1 2009

MASTER BUILDERS JOURNAL

MBAM SECTION

Q&A

1 2

3 4 5 6 7

9 10

11 12

13

Project, parties and consultants - name, nature and location of the project; general description of works; names and addresses of the Employer and Consultants to be named in the contract. Description of site - information to indicate the boundaries of the site, the means of access and the position of the works; any drainage, water, gas and other mains or power services known to exits on or over the site; any adjancent or abutting buildings; information to facilitate visiting the site Drawings and other documents Form, type and conditions of contract Contractor's liability Employer's liability Obligations and restrictions imposed by the Employer - access to and possession or use of the site; limitations of working space; limitations of working hours; the use or disposal of any material found on site; hoardings, fences, screens, temporary roofs, temporary name/sign boards and advertising rights; the maintenance of existing live drainage, water, gas and other mains or power services on or over the site; the execution or completion of the work in any specific order or in sections or phases; maintenance of specific temperature and humidity levels; temporary accommodation and facilities for the use of the Employer including air-conditioning, lighting, furnishing and attendance; the installation of telephones for the Employer and the cost of his telephone calls; any other obligation or restriction such as restriction upon the employment of labour, restriction on the use of radios by employees, restriction on the felling of trees, car parking arrangements for the employees, etc Works by Nominated Sub-Contractors - The name of the firm to be nominated together with a description of the sub-contract work; attendance on nominated sub-contractor where required shall be described and given as an item in each case for special scaffolding additional to the Contractor's standing scaffolding, the provision of temporary access roads and hard standings in connection with structural steelwork, precast concrete components, piling, heavy items of plant, unloading, distribution, hoisting, placing in position giving in the case of significant items the weight and/or size, the provision of covered storage and accommodation including lighting and power thereto, maintenance of specific temperature or humidity levels,etc Goods and materials from Nominated Suppliers - The name of the supplier to be nominated; particulars shall be given where the Contractor is required to pay the costs of conveying goods and materials to the site and/or of any special packing or similar requirements Works by government or statutory authorities - works which are to be carried out by a government or statutory authority in accordance with statutory obligation shall be described, stipulating the scope and timing of the work and its effect on the Contractor's operations Works or goods and materials by the Employer - a description shall be given of works by others directly engage by the Employer; a description shall be given of good and materials provided by or on behalf of the Employer Pricing - Plant, tools, vehicles, scaffolding, site administration and security, transport for workpeople, protection of work in all sections, water for the works, lighting and power for the works, temporary roads, hard standings, crossings, temporary accommodation for the use of the Contractor, temporary telephones for the use of the Contractor, traffic regulations, safety, healthy and welfare for the workpeople, disbursements arising from the employment of workpeople, maintenance of public and private roads, removing rubbish, protecting casings and coverings and cleaning the works on completion, drying the works, temporary fencing, hoardings, screens, fans In monthly progress payment planked footways, guardrails, gantries, control of noise, pollution, all other statutory obligations, surety or valuations, the priced items in the performance bond, shop drawings, co-ordination and record drawings, schedules, charts and the like showing Preliminaries section are normally the progress, organisation of trades, progress photographs, etc divided into three categories, namely Contingencies initial, recurring and final costs by the

MASTER BUILDERS JOURNAL

MBJ Volume 1 2009

81

MBAM SECTION
Q&A
claim for loss and/or expense suffered resulting from the Employers own breach of contract i.e. delay and/or non-payment, wrongfully termination of the contract, etc. The Contractor may choose to claim under the relevant provisions in the contract or bring legal action in arbitration/litigation for damages resulting from the breach of contract. In simple terms, loss and expense items may include the following ; i. ii. iii. iv. v. vi. vii. Prolongation costs Disruption costs Additional Preliminaries Overheads Profit Finance charges Other additional costs/expenses not reimbursable under the contract.

Notwithstanding, the Preliminaries section in most BQs, comprises typically of the following headed items:1 2 Preliminaries particulars - project and contract details, works, goods &materials by others, contractual obligations and liabilities, etc Plant, tools and vehicles Scaffolding Site administration and security Transport for work people Protection of work Water, lighting and power Temporary telephone 12 13 Safety, health and welfare Maintenance of publ and private roads Removal of rubbish, debris, etc Control of noise, pollution, etc Statutory compliance and obligations Surety or performance bond Insurances Shop drawings, co-ordination and record drawings Progress photographs and reports Schedules, charts, etc showing progress of trades, works, activities. Clearing, cleaning and handover

3 4 5

6 7 8

14 15 16

Temporary roads, hardstandings, crossings, etc 10 Temporary accommodation 11 Traffic regulations

17 18 19

20 21 22

In monthly progress payment valuations, the priced items in the Preliminaries section are normally divided into three categories, namely initial, recurring and final costs by the usually by the project consulting QS, in consultation with the Contractor. The proportion of initial and final costs are usually fixed and payable upon commencement and at completion, while the recurring costs are then spread evenly over the project completion period. The Relevant Provisions Under The Common Standard Forms Of Building/Construction Contract In Malaysia ? Many standard forms of construction contract allow loss and expense to be claimed by the Contractor and ascertained by the Superintending Officer (or the Architect / Engineer /PD/QS, depending on the form applicable) for payment by the Employer. In the Royal Institution of Chartered Surveyors (RICS), UK (1987) had defined Loss as Any monies that the contractor should have received,

but which he did not receive, because of one or more of those events listed in the conditions of the relevant contract, which entitle him to reimbursement of direct loss and /or expense and Expense as Any cost to the contractor which is more than it would otherwise have been, because of the events referred to above The word direct loss and expense, means the direct consequence of the act giving rise to the claim (A & B Taxis Ltd v The Secretary of State for Air 1922) or that which flows naturally from the breach, without other intervening cause and independently of special circumstances (Saintline Ltd v Richardsons, Westgarth & Co Ltd 25 BLR140, 1940). In essence, for loss and expense to be admissible, it cannot be costs arising from indirect, remote, consequential or contributory causes. The Contractor is usually entitled to claim for loss and/or expense suffered if the work is disrupted/ affected /delayed due to certain specific causes or events, which are of no fault of their own. In addition, he can also

Under the standard forms of building / construction contract commonly used in Malaysia, the relevant loss and expense clauses are briefly described and discussed below. PAM Forms (1998 & 2006) Under PAM Form of Building Contract, there are two provisions that enable the Contractor to claim for additional preliminaries. However, such claim must fall under the specific circumstances provided under Clause 24 Loss and Expense for both PAM 98 and 06 and Clause 11.6 Variation for PAM 98 and Clause 11.7 Variation for PAM 06. In order to succeed in the claim for loss and expense (in this case, additional preliminaries), the Contractor must notify the Architect in writing if the regular progress of

82

MBJ Volume 1 2009

MASTER BUILDERS JOURNAL

(Continued On Page 84)

MBAM SECTION
Q&A
(Continued from Page 82)

Works has been or is likely to be materially affected, which he had incurred or is likely to incur direct loss and/or expense. Thereafter, the Contractor needs to submit together with the loss and expense claim, the relevant information and details to substantiate his claim to the Architect for his ascertainment, accordingly. CIDB Form (2000) Under the CIDB Form of Contract, the contract provisions concerning loss and expense claim are Clause 1.1 Definition, Clause 31 Claims for Loss and Expense and Clause 32 Procedure for Claims. In Clause 1.1 Definitions, Loss and Expense comprise of actual costs and percentage of the said costs. Loss and expense may comprise of:i. the direct relevant costs of labour, Equipment, materials, or goods actually incurred on the Site by the Contractor; and costs of an overhead nature actually and necessarily incurred on the Site by the Contractor; and the amount equivalent to the percentage named in the Appendix of such cost referred to in (a) and (b) above, such amount shall be deemed to be inclusive of any profits, head office or other administrative overheads, financing charges (including foreign exchange losses) and any other costs, loss or expense of whatsoever nature and howsoever arising. The percentage shall exclude interest payable pursuant to sub-clause 42.9(b).

Clause 32.6

Failure to Comply

Under the CIDB Form, it is a condition precedent that the Contractor should notify the Superintending Officer within thirty (30) days, if he intends to claim for Loss and Expense. JKR/PWD Form 203A (Rev. 10/83 & Rev. 2007) Under JKR/PWD Form, the Contractor is entitled to claim for additional preliminaries under Clause 44 Loss and Expense caused by delays, and/or under Clause 5 (d) Claims for compliance with the Superintending Officers (SO) instructions a provided in JKR 203 (Rev. 10/83) and for Loss and Expense claims under Clause 44 of JKR 203 (Rev. 2007). Similar to other aforesaid forms, the Contractor is required to notify the SO in writing of his intention to claim if the regular progress of Works has been materially affected which he has incurred direct loss and/or expense due to the following specific reasons:-

ii. i.

JKR 203 (Rev. 10/83) Clause 44 (c) by reason of directions given by the SO

consequential upon disputes with neighbouring owners provided the same is not due to any act, negligence or default of the Contractor or any sub-contractor, nominated or otherwise, or

44 (f) by reason of the Contract not having received in due tme necessary instructions, drawings, levels contractors and/or suppliers provided in this Contract, from the SO due to any negligence or default of the SO and for which he shall have specifically applied n writing on a date which in the Appendix to theseConditions or to any extension of time then fixed under this having regard to the Date for Completion stated Conditions, was neither unreasonably distant or instructions in regard to the nomination of sub-

The events which entitle the Contractor to claim for Loss and Expense are stipul;ated under Sub-Clause 31.1 Reasons for Loss and Expense Claim. Clause 32 of CIDB Form of Contract set out the procedures to claim for Loss and Expense, as follows; Clause Clause Clause Clause 32.1 32.2 32.3 32.4 Notice of Claim Contemporary Records Substantiation of Claims Access to Contractors Books and Documents Payment of Claims

from nor unreasonably close to the date on which it was necessary for him to receive the same, 44 (i) by delay on the part of artists, tradesman or work not forming part of this Contract.

Clause 32.5

other engaged b the Government in executing

84

MBJ Volume 1 2009

MASTER BUILDERS JOURNAL

MBAM SECTION

Q&A

JKR 203 (Rev. 2007) Clause 44 (c) suspension of works under Clause 50; 44 (d) directions given by the SO, consequential upon d i s p u t e s with neighbouring owners provided the same is not due to any act, negligence or default of the Contractor or any sub-contractor,nominated or otherwise; 44 (e) SO's instruction issued under Clause 5 hereof, PROVIDED THAT such instructions are not issued due to any act, negligence, default or breach of this Contract by the Contractor or any sub-contractor, nominated or otherwise;

JKR 203 (Rev. 2007) Clause 44 (f) the Contractor not having received in due time instructions in regard to the nomination of sub-contractors and/or suppliers provided in this Contract, necessary instructions, drawings or levels for the execution of the Works from the SO due to any negligence or default of the SO PROVIDED THAT the Contractor shall have specifically applied in writing on a date which having regard to the Date for Completion stated in Appendix or to any extension of time then fixed under this clause, was neither unreasonably distant from nor unreasonably close to the date on which it was necessary for him to receive the same;

44 (h) delay on the part of artists, tradesmen or others engaged by the Government in execting work not forming part of this Contract

IEM Form (1989)

Additional preliminaries claim will fall under Clause 43 and 5 (d), which is similar to JKR Clause 44, except in IEM Form, which provides an additional clause, Clause 43 (g) to cover for reason of delay in giving possession of the Site as provided under Clause 38 (b) (i).

The following are the grounds for claims under loss and/or expense as provided in the aforesaid PAM 1998/2006, CIDB 2000, JKR 203A and IEM 89.
Grounds for Loss and/or Expense 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Late drawings, information, confirmations and/or instructions Ditto, in regard to P.C. Sums & Provisional Sums Failure or delay in giving possession of site Compliance with the contract administrators instructions, eg. to resolve discrepancies Variation Postponement of any work by Contract Administrator Suspension of works by the Contract Administrator Delays by artist, tradesmen or others employed by the Employer Delay or failure supply of goods and materials by the Employer Test and Inspection Any acts of prevention or breach of contract by the Employer Contract Administrator's instruction on antiquities and fossils Appointment of a replacement Architect/Engineer/QS/Specialist Consultant Dispute with neighbouring owners Reason of the execution of work for Provisional Quantity which the Architect is not a reasonably accurate forecast of the quantity of work required Failure of the Employer to give access to site in time or any passage to the site which is in possession or control of the Employer Suspension of works by the Contractor due to late payment and the withdrawal of the Architect and/or Consultant Suspension of works by the Authority but not due to the Contractor's/Nominated Sub-Contractor's negligence, omission, default and/or breach of contract Any other ground for Loss and Expense mentioned in the Contract One or more of the Excepted Risk PAM 2006 24.3(a) 24.3(a) 24.3(b) 24.2(iii) 24.3(c) 24.3(c) 24.3(d) 24.3(e) 24.3(f) 24.3(g) 24.3(h) 24.3(i) 24.3(j) 24.3(k) 24.3 (l) 24.3 (m) 24.3 (n) 31.1 (j) 31.1 (a) 85 24.2 (vii) Contract Clasue PAM JKR IEM 1998 203A 1989 24.2(i) 43(f) 43(f) 43(g) 5(d) 24.2(v) 5(d) 5(d) 31.1(c) 5(d) 43(i) 5(d) CIDB 2000 31.1(b) 31.1(e) 31.1(h) 31.1(g) 31.1 (f) 31.1(d)

24.2 (iv) 43(i) 24.2 (vi) 24.2(ii) 5(d) 24.2 31.1(i)

43(c) 43(c)

Grounds for Loss and/or Expense provided under the various Standard Forms of Constructions Contracts in Malaysia MASTER BUILDERS JOURNAL

MBJ Volume 1 2009

MBAM SECTION
Q&A

thereupon also be determined and the Contractor shall be entitled to be paid (in so far as such amounts or items have not already been covered by payments on account made to the Contractor) as follows:(i) The value of the Contract Works completed at the date of the determination, such value to be calculated according to Clause 17 hereof; or The value of work begun and being executed but not completed at the date of such determination, such value to be calculated according to Clause 17 hereof; or

(ii)

Case Studies / Scenarios Additional preliminaries is actually a part of loss and expense claim. The Contractor is entitled to loss and expense claim under Hadley v Baxendale (1854) 9 Ex341 first limb, i.e. may fairly and reasonably be considered to have arisen naturally, that is according to the usual course of things.. Usually, the Contractors claim for additional preliminaries should be evaluated based on actual cost incurred, in the absence of any expressed method of evaluation. Notwithstanding, there are cases or scenarios whereby the evaluation of the additional preliminaries does not necessary have to be based on the actual cost incurred, as it depends on the provisions of the contract or project circumstances or conduct of the contracting parties. In such cases, the knowledge and skills of a QS to value the preliminaries is called for. The following are a few typical cases/scenarios, whereby additional preliminaries have been

assessed/evaluated based on different methods from the usual actual cost method. In a case where the contract is terminated by the Employer due to the Contractors default or breach, the Employer had contended that all the preliminaries items incurred should be evaluated as loss and expense and therefore be based upon actual costs incurred instead of valuing them as work done. Was the Employer correct in evaluating all the additional costs of Preliminaries incurred based on actual costs ? To answer this question, lets investigate the provision of this contract for termination/determination. The provision states that, inter alia: If for any reason the Employer's employment under the Main Contract is determined (whether due to any default of the Employer or otherwise), then the employment of the Contractor under this Contract shall

(N.B. The Clause 17 referred above is for Valuation of Variation which is similar to JKR Clause 25) From the above provision, the Contractor is entitled to be paid by the Employer based on the following valuation procedure:(i) The value of the Contract Works completed at the date of the determination. Such completed work to be valued based on the stipulated contract price or rate and is accordingly to be valued under the rules for valuation of variation works. (ii) The value of work begun and being executed but not completed at the date of the determination. Such uncompleted work is considered to fall under the rules for valuation of variation works.

As mentioned earlier, Preliminaries is a part of the Bills of Quantities relating to the contract work. So, it should be valued as work done for the works executed up to the date of the

86

MBJ Volume 1 2009

MASTER BUILDERS JOURNAL

MBAM SECTION
Q&A

termination/determination instead of based on actual costs. The QS for this project should undertake this valuation task, accordingly. Quoting from Hudsons Building and Engineering Contracts, 11th Edition, p 1602 explains the person who is appointed to undertake this valuation task; It has been held that if a man is, on account of his skill in such matters, appointed to make a valuation, in such manner that in making it he may, in accordance with the appointment, decide solely by the use of his eyes, his knowledge and his skill, he is not acting judicially: he is using the skill of a valuer, not of a judge. In the same way, if two persons are appointed for a similar purpose, they are not arbitrators but only valuers. They have to determine the matter by using solely their own eyes and with knowledge and skill.

It is often very difficult to value to what extent of the preliminaries items or works that had been executed. In valuing preliminaries, one would wonder whether the Contractor had priced the cost for example a tower crane spread across the trade rates or in the preliminaries items. A distinction has to be made as to the Contractors fixed costs (e.g. mobilisation and demobilisation); time related costs (e.g. site management, plant and equipment, etc.) or quantity related costs (utilities, protection, etc.). In the Singapore Institute of Architect (SIA) form of contract, for example, the Contractor is required to indicate in his tender price for preliminaries items in the form of quantity related, time related or fixed cost so that any additional expenses for the preliminaries items, the indicated tender price of the preliminaries items shall be used as the basis for valuation and adjustment. Consequently, when evaluating the

Contractors preliminaries claim, a good knowledge and understanding of the cost structure and pricing of contract is essential to enable a fair and reasonable valuation to be made, accordingly. Methods In Assessing Additional Costs Of Preliminaries In practice, it is common to use recurring costs based upon estimation or prorated time basis or formula method or negotiated basis from the priced preliminaries in BQ. Can this practice apply in evaluating the additional preliminaries? The following are a few methods employed in evaluating additional preliminaries. On Amended Contract Basis In the Malaysian construction industry, the standard form of contract used are often subject to addendum/ supplementary /modification/

MASTER BUILDERS JOURNAL

MBJ Volume 1 2009

87

MBAM SECTION
Q&A

amplification/special provisions or conditions to suit the circumstances prevailing on the project concern. An example of an Addendum to PAM98 Clause 24, is as follows: The Contractors claim for loss and/or expense (if any) under this Clause shall be confined only to those recurring cost of Preliminaries items which have been priced for this Contract and only for those Preliminaries items which are deemed applicable. The Contractor shall not be entitled to claim on any other basis other than the aforesaid basis as he shall be deemed to have allowed for all other loss and/or expense (excluding the recurring Preliminaries expenses) directly or indirectly incurred by him caused by disturbance of regular progress of Works under this Clause. On Formula Basis Another example is the JKR 203A Clause 5(d), 44 & 48(d) and JKR

PWD DB/T Clause 45.2 & 46 under Special Provisions, which is based on the Special Formula for calculation of compensation for Loss and Expense claim under Preliminaries and General Requirement, as follow: a) Cost of Extension of Insurance Policies A x CEP/TDP = Amount of premium paid for the whole duration of the extended insurance period as provided under the Contract CEP = Total Claimable Extended Period TDP = Total Delayed Period A b) Cost of Extension of Performance Bond/Performance Sum Guarantee

Bond/Performance Sum Guarantee, of the Contract Value OC = Original Contract Value CEP = Total Claimable Extended Period BLR = Base Lending Rate per annum as on Date of Original Completion of Work c) Other Items (i) For Building Works: 14% x PL x CEP/OP (ii) For Civil Engineering Works: 20% x PL x CEP/OP

5% x OC x CEP x BLR/365 5% = Maximum amount of percentage Performance

PL = Amount of Preliminaries Work and General Requirement in the Contract not inclusive of Provisional Sum and specific items for the Contract (e.g. Design and supervision fees, Traffic management plan, Environmental management plan, I-Supervision, Aerial survey, Digital slope mapping, Permanent diversion of services, KTMBs flagging and inconvenience charges, Road

88

MBJ Volume 1 2009

MASTER BUILDERS JOURNAL

MBAM SECTION
Q&A

maintenance during construction and other similar items) subjected to a maximum amount not exceeding 6% of the value of Builders Work for the Contract (less the value of Preliminaries Work & General Requirement) CEP = Total Claimable Extended Period OP = Original Contract Period (in days) .. JKR had adopted the aforesaid formula method for the following reasons; i) In accordance with JKRs contract, the Final Account needs to be prepared not more than six (6) months after practical completion of the Works. However, the preparation of Final Account is often delayed for the Contractor who has made a claim particularly on additional preliminaries upon issuance of Certificate of Delay and Extension of Time for the project concern.

the valuation, certification and approval process for this compensation claim, a decision had been to allow the Special Formula to be adopted for valuation and certification of the claim concern. The above formula method was adopted and practised until February 2006, when JKR had decided to move away from the above formula method to revert to documentary evidence based on actual costs for such claims. On Negotiation/Agreement Basis In some cases, the contracting parties settle their claim for additional preliminaries by negotiation. They would agree to base on recurring cost or formula method as the basis to assess the value preliminaries items in lieu of actual costs. Such method would avoid the tedious and time consuming process, i.e. to collate and provide the necessary documentary evidence for evaluation and verifying the actual costs, which can lead to

ii)

In the previous procedure, all claims submitted by the Contractor required to be examined and verified of its validity and reasonableness. As such, a longer time may be required in the valuation and verification stage prior to JKRs Claim Committee certification and approval. Therefore, in order to expedite

iii)

MASTER BUILDERS JOURNAL

MBJ Volume 1 2009

89

MBAM SECTION
Q&A
dispute, and may end up in arbitration/litigation subsequently, thereby incurring more costs to the parties, eventually. Conclusion/Solution Whether the additional preliminaries are evaluated based upon actual cost incurred or recurring cost or negotiation/agreed basis, the contracting parties should come to an agreement at the formation of the contract or at the outset of the project on the method of evaluating the additional preliminaries to be adopted, when a prolongation/disruption situation arises. It is often a tedious, costly and time consuming process in compiling and assessing the documentary evidence (usually voluminous) in order to prove the actual costs incurred, which often leads to dispute and possibly arbitration/litigation rather than amicable settlement. It must be noted that, actual costs for additional preliminaries need not necessarily always mean a lower cost than recurring cost or formula method as determined or valued by the Architect / Engineer / SO / PD or QS, depending on the form of contract used. In some cases, actual costs are actually higher than recurring costs or formula method. Nevertheless, unless the above circumstances or conditions as described apply then the evaluation of additional preliminaries should be based on actual reasonable costs which flow from the claim event.

References/Bibliography

1. Wallace, I.N. Duncan, Hudsons Building & Engineering Contracts,11th Edition, Sweet & Maxwell, 1995.

2. Ong, H.T., Should additional Preliminaries be evaluated on recurring costs basis or actual costs incurred One Day Joint Contract Seminar: Extension of Time, Variations, Loss & Expense and Prolongation Claims jointly organised by BK Asia Pacific and Master Builders Association of Malaysia, 27 September 2007

3. References are also made to several Malaysia standard forms of contract, namely:i) PAM Forms of Building Contract (1998 & 2006) ii) JKR/PWD Forms of Contract (203A Rev 10/83 & Rev. 2007) iii) JKR PWD/Standard Form of Design & Build / Turnkey Contract (PWD Form DB/T) (2002 Edition) iv) IEM Conditions of Contract for Works Mainly of Civil Engineering Construction (1st Edition 1989) v) CIDB Form of Contract for Building Works (2000 Edition)

In the next issue of the MBAM journal the article will answer the question on What is Force Majeure and its implications? The Entrusty Group includes Entrusty Consultancy Sdn Bhd (formerly known as J.D. Kingsfield (M) Sdn Bhd), BK Burns & Ong Sdn Bhd (a member of the Asia wide group BK Asia Pacific), Pro-Value Management Sdn Bhd, Agensi Perkerjaan Proforce Sdn Bhd and International Master Trainers Sdn Bhd providing project, commercial and contractual management services, risk, quantity, quality and value management, recruitment services and corporate training programmes to various industries, particularly in construction and petrochemical, both locally and internationally. For further details, please visit website: www.entrusty.com or contact HT Ong at 22-1 & 2 Jalan 2/109E, Desa Business Park, Taman Desa, 58100 Kuala Lumpur, Malaysia. Tel: 6(03)-7982 2123 Fax: 6(03)-7982 3122 Email: enquiry@entrusty.com.my Entrusty Group provides 30 minutes of free consultancy (with prior appointment) to MBAM members on their contractual questions. The Group also provides both in house and public seminars/workshops in its various areas of expertise. Upcoming Public Seminars in 2009 Certifications and Payments. Common Contractual Issues/Problems in Malaysia. Determination/Termination of Construction Contracts in Malaysia. Pertinent Contractual Provisions in Construction Contracts

90

MBJ Volume 1 2009

MASTER BUILDERS JOURNAL