List and explain the difference and similarity between the

following clauses in the PAM standard form of Building

Contract 2006 (with quantities) and the JKR Building Contract
with Bills of Quantity, Form 203A.
a) Contract Document
The Contract Documents as aforesaid shall remain in the custody of the S.O. and shall be
produced as and when required by the Contractor.
Copies of Contract Documents

One certified true copy of the Contract Documents

Two copies of the Contract Drawings
Two copies of the unpriced Bills of Quantities

S.O. shall have two copies of such further working drawings or details as are reasonably
necessary either to explain and amplify the Contract Drawings or the Specification.
Contractor shall keep one copy of the Contract Drawings, the Specification (if any), unpriced
Bills of Quantities and documents on the Site and the S.O. shall at all reasonable times have
access to the same.
Return to the S.O. all drawings, details, specifications, unpriced copy of Bills of Quantities
and other documents of like nature after completion of work.
None of the documents hereinbefore mentioned shall be used by the Contractor for any
purpose other than this Contract.

PWD Form 203A

Relevant clauses

Clause 8.0 Contract Documents

Clause 8.1 Custody of the Contract
Documents

PAM Contract 2006

Clause 3.0 Contract Documents,
Programme and As-built Drawings
Clause 3.1 Contract Documents

Clause 8.2 Sufficiency of Contract

Documents

Clause 3.2 Custody of Tender

Documents

Clause 12.0 Programme of Work

Clause 3.3 Copies of Documents

Clause 3.4 Further drawings or
details
Clause 3.5 Work Programme
Clause 3.6 Programme not part of
Contract
Clause 3.7 Architects acceptance of
Programme
Clause 3.8 Availability of Documents
Clause 3.9 Limitation of use of

Documents
Clause 3.10 As-built Drawings

The Similarity between PWD Form 203A and PAM Contract 2006
PWD Form 203A

Contract
Documents

PAM Contract 2006

Form of Tender

Letter of Award

Letter of Acceptance of Tender

Articles of Agreement

Contract Drawings

Conditions of Contract

Bills of Quantities

Contract Drawings

Specifications

Contract Bills

Treasurys instructions

Following descending order, i.e. Letter

of Award, etc. Therefore, pay more
attention to the drafting of Letter of
Award.

Documents required in 2 sets, one

original with S.O. and contractor.

Original shall remain with consultants.

Contractor shall return to S.O. all

drawings, details, specification and
unpriced / price Bills of Quantities.

2 sets of original copy shall signed and

kept by S.O. / QS and Contractor.
2 sets copy of Contract Drawings kept
by Contractor.
2 sets copy of unpriced Contract Bills
give to Contractor.

Custody of
Documents

2 sets copy of Working Drawings,

further drawings and details drawing
give to Contractor to enable contractor
can carry out the works on time.
Contractor will keep 1 copy of
Contract Drawings, Specification,
unpriced Bills of Quantites on the site
and S.O. have access to the same.

The Difference between PWD Form 203A and PAM Contract 2006
Sufficiency of
Contract
Documents

PWD Form 203A

PAM Contract 2006

S.O. will issue instruction regarding any

discrepancies in the Contract Document

Not stated.

Copies of
Tender
Documents

Not stated.

One original signed copy to Contractor

Not stated.

Contractor to request in sufficient time

to enable the Architect to issue
instructions within a period which
would not materially delay the progress
of the affected works having regard to
the Completion date.

A programme of works is not provided

by the S.O., the contractor shall within
fourteen days after the date of the Letter
of Acceptance, contractor must submit it
to the S.O. to get his approval for the
work in such forms and details as the
S.O. reasonably determined.

Standard time period is 21days from

receipt of LA

Not stated.

Not constitute part of contract even

physically incorporated into Contract
Documents.

Not stated.

The acceptance by the Architect does

not relieve the Contractor from
responsibilities under the Contract

Not stated.

Contractor must keep a copy of

Contract Drawings and the unpriced
Contract bills on the site to make sure
Architect and Consultant and their
authorised representatives at all
reasonable times.

Not stated.

According to Clause 3.1, the contractor

shall use the contract document all the
time other than use contract. Except for
the purpose of the Contract, all parties
shall not disclose any of rates and price
in the Contract Bills

Not stated.

Contractor must supply As-built

drawings
and
operation
and
maintenance
manuals
to
any
Nominated Sub-Contractor as specified
in the Contract Document. When these
are not specified, contractor shall
supply and ensure that the nominated
sub contractor supplies four copies of
the above items before the completion

Further
Drawings or
details

Works
Programme

Programme not
part of Contract
Architects
acceptance or
programme

Availability of
document

Limitation of
use of
documents

As-built
drawings and
operation and
maintenance
manuals

Standard requirement is six copies,

unless require more
Shall provide to the Architect for his
information from time to time

date.

b) Performance Bond
A performance bond, also known as a contract bond, is a surety bond issued by an insurance
company or a bank to guarantee satisfactory completion of a project by a contractor. A job
requiring a payment and performance bond will usually require a bid bond, to bid the job.
When the job is awarded to the winning bid, a payment and performance bond will then be
required as a security to the job completion.
For example, a contractor may cause a performance bond to be issued in favor of a client for
whom the contractor is constructing a building. If the contractor fails to construct the building
according to the specifications laid out by the contract (most often due to the bankruptcy of
the contractor), the client is guaranteed compensation for any monetary loss up to the amount
of the performance bond.
Performance bonds are commonly used in the construction and development of real property,
where an owner or investor may require the developer to assure that contractors or project

managers procure such bonds in order to guarantee that the value of the work will not be lost
in the case of an unfortunate event (such as insolvency of the contractor). In other cases, a
performance bond may be requested to be issued in other large contracts besides civil
construction projects. Another example of this use is in commodity contracts where the seller
is asked to provide a Bond to reassure the buyer that if the commodity being sold is not in fact
delivered (for whatever reason) the buyer will at least receive compensation for his lost costs.
One of the performance bonds is Performance Bond/Performance Guarantee Sum in PWD
Form 203A and Performance Bond in PAM Contract 2006.
PWD Form 203A
Clause 13.0 Performance Bond/Performance
Guarantee Sum
Clause 22.2 Design Guarantee Bond
Clause 42.1(f) Performance Bond Not
Affected

PAM Contract 2006

Clause 37.0 Performance Bond
Clause 37.1 Submission of Performance Bond
Clause 37.2 Form of Performance Bond
Clause 37.3 Validity of the Performance Bond
Clause 37.4 Failure of the Performance Bond
Clause 37.5 Payments from the Performance
Bond
Clause 37.6 Return of Performance Bond

The Similarity between PWD Form 203A and PAM Contract 2006
Similarity

PWD Form 203A

PAM Contract 2006

Documents

The Performance Bond is the

compulsory document which must
be submitted by the Contractor under
clause 13.1(a).

The Performance Bond is the

compulsory document that the
Contractor require submit to the
Employer under clause 37.1.

Amount
and
function
of
Performance
Bond

The sum of Performance Bond shall

be equivalent to five percent of the
total Contract Sum as specified in
Appendix to secure the due
performance of the obligation under
this Contract by the Contractor under
clause 13.1(a).

The sum of Performance Bond shall

equivalent to the percentage stated in the
Appendix (if not stated is 5% of the
Contract Sum) as a security for
performance and observance by the
Contractor of his obligation under
Contract up to Practical Completion of
the Work under 37.1.

Extend validity

The Contractor shall extend the valid

period of the Performance Bond due
the delayed Defect Liability Period
or the issuance of the Certificate of
Completion of Making Goods
Defects

The Contractor shall before the expiry of

the Performance Bond, extend the
duration of the Performance Bond to
expire three Months after the projected
Practical Completion of Works under
clause 37.3.

The Difference between PWD Form 203A and PAM Contract 2006
Difference

PWD Form 203A

PAM Contract 2006

Submission of
Performance
Bond

The Contractor shall provide the

Performance Bond on the date of the
possession of Site under clause
13.1(a).

The Contractor shall submit the

Performance Bond to the Employer
before the Date of Commencement under
clause 37.1.

Form
of
Performance
Bond

Performance Bond shall be in the

form as in Appendix issued by an
approved licensed band or financial
institution incorporated in Malaysia
according to the Clause 13.1(a).

Performance Bond shall be in the form as

specified unless approved by Employer
under Clause 37.2.

Validity
of
Performance
Bond

The Performance Bond shall remain

valid and effective until twelve
months after the expiry of the Defect
Liability Period or the issuance of
the Certificate of Completion of
Making Goods Defect under clause
13.1(a).

The Performance Bond shall be

remaining valid until three months after
the Completion Date. Contractor has the
duty to extend the duration to expire after
the projected Practical Completion of the
Works under clause 37.3.

Failure
to
extend validity

If the Contractor fail to submit the

Performance Bond on the date of
possession of Site, will deduction of
ten percent shall be make for the
first
interim
payments
and
subsequent interim payment until the
total amount deducted aggregate to
sum equivalent to five percent of the
Contract Sum under clause 13.2.

If the contractor fails to submit or

maintain the validity of Performance
Bond, Employer shall be entitled to
withhold or deduct an amount equal from
Contractors progress payments under
Clause 37.4

According to the Clause 13.3, the

Government shall be entitled at any
time to call upon the Performance
Bond, the contractor fails to perform
their obligations under the Contract
and such failure is not remedied in
accordance with this Contract.

Not stated.

Under the Clause 13.4, if the

payment is made to the Government
pursuant to any claim under the
Performance Bond, the contractor
shall issue a further security in the
form of additional performance bond
or bonds for an amount not less than
the amount so paid to Government
on or prior to the date of such

Not stated.

payment so that the total sum of the

Performance
Bond
shall
be
maintained at all times.

Difference

PWD Form 203A

PAM Contract 2006

Payment from According the Clause 13.6, in the

Performance
event that this Contract is terminated
Bond
under Clause 51 (Event and
consequences of default by the
contractor)
hereof
the
said
Performance Bond or any balance
thereof shall be forfeited.

Based on the Clause 37.5, in the event

the
Employer
determines
the
employment of the Contractor, the
Employer may call on the Performance
Bond and utilize such amount to
complete the Works and recover his loss
and/or expenses and refund only the
balance to Contractor upon completion
of Work.

Return
of
Performance
Bond

It is divides the portion of money

retained into half and refund back to
contractor one during the issuance of
certificate of Practical Completion and
the other one during the issuance of
certificate of Making Good Defects.

After the completion of making good

of defect and giving of the
Certificate of Completion of Making
Good Defects, the Performance
Bond may be released or refunded to
the Contractor under Clause 13.5.

In the event the Contractor determines

his own employment, the Employer shall
within 28 days return the Performance
Bond to Contractor for cancellation.

For the PWD Form 203A Clause 22.2 and 42.1 (f) didnt mention in the PAM Contract 2006,
it is the difference between this two forms of contract for performance bond.
Clause 22.2 Design Guarantee Bond
The Contractor shall provide a design guarantee bond issued by the licensed bank or financial
institution before the issuance of Certificate of Practical Completion, the amount of design
guarantee bond still be 5% of the value of the said part of the works as stated in the appendix.
The design guarantee bond still remain valid for 5 years from the date of practical completion
of works.
If the defect or damage occur to that particular part of works as the result of any defect, fault,
insufficiency or inadequacy in the design including workmanship, materials and equipment
which has become defective due to design default. The government have the right to claim the
design guarantee bond according to the amount losses by the government. If the design

guarantee bond is not provided, the government have the right to claim on the performance
bond which is equal to the 5% of the value of the said part of Works that provided by the
contractor.
Clause 42.1 (f) Performance Bond Not Affected
The Performance Bond or balance will safety released or refunded to contractor on the
completion of Making Good Defect. It will more similar with the Clause 13.5.

Work Programme
Work programme is a document for showing how the work will be carry out and showing the
duration of different task. Thought this work programme, the Main Contractor will plan the
labour force for different period, when to bring in the machinery and when the suppliers
require to supply the materials. Furthermore, the Quantity surveyor can plan the schedule of
percentage work done and schedule of issue interim certificate based on work programme.
PWD Form 203A

Clause 12 Programme of Work

PAM Contract 2006

Clause 3.5 Works Programme

Clause 3.6 Programme not part of
Contract
Clause 3.7 Architects acceptance of
programme

The Similarity between PWD Form 203A and PAM Contract 2006
Similarity

PWD Form 203A

PAM Contract 2006

Documents

Programme of Work is a compulsory

document which must be issued and
approved by S.O., after the Contractor
receive the Letter of Acceptance.

Work Programme is the compulsory

document which must be issue to
Architect after Contractor receive the
Letter of Award.

Purpose

It is the document for S.O. to

monitoring the progress of work, it is
also the basis for assess the extension
of time and effect of delay to the
progress of work.

It is the document for Architect to

monitoring the progress of work, and
Architect can use it as a basis for
assessment the extension of time and
the effect of the delay to work progress.

Revised of
Work
Programme

If the actual work progress and

programme of work are different, the
Contractor shall provide a revised

If the Works or any part of the Works is

delayed for whatever reasons, the
Architect may instruct the Contractor to

programme
of
work
showing
necessary ratification to ensure the
project is complete within date of
completion or any extended time.

revise the Work Programme.

The Difference between PWD Form 203A and PAM Contract 2006
Difference

PWD Form 203A

PAM Contract 2006

Date of
Submission

If the programme of work is not

provide by the S.O., the contractor
shall provide within 14 days after
receive letter of acceptance and
submit to S.O. for approval for
execute the work.

The contractor shall provide at least 6

copies of work programme to Architect
within 21 days after receive letter of
award.

Consideration
for Part of
Contract

Not stated.

The Work Programme shall not be

constitute part of the Contract, whether
physically or not into the Contract
Drawings.

Fees of Extra
Document for
Client

Not stated.

If the Architect require the Contractor

to provide a revised work programme
due to the work is delayed in whatever
reasons, the Contractor shall provide
the work programme to the Architect
from time to time without charging the
client.

c) Insurance Work/Insurance of new building/work by the contractor

Insurance Works is a common requirement and is a must in a building contracts. The purpose
of this insurance is to cover the building works in progress, should loss or damage occur
during construction. It is necessary for the public sector project or private project. It also
guarantee for the client in case the contractor default in insuring. Insurance can be arranged
specifically for each project or as an annual policy covering all projects undertaken with the
insurance premium paid on works turnover.

PWD Form 203A

Relevant clauses

Clause 18.0 Insurance of Works

Clause 18.1 Taking of Insurance
Clause 18.2 Default in Insuring
Clause 18.3 Payment of Insurance in
the event of any Loss/Damage
Clause 18.4 Cancellation of Insurance
Clause 42.1(e) Insurance of Works

PAM Contract 2006

Clause 20.A Insurance of New
Buildings/Works by the Contractor
Clause 20.A.1 Contractors riks
new buildings/works
Clause 20.A.2 Additioinal riks to be
covered under the insurance
Clause 20.A.3 Placing of insurance
with licensed insurance companies
Clause 2.A.4 Application of insurance
claim proceeds

The Similarity between PWD Form 203A and PAM Contract 2006

Payment
Insurance

of

PWD Form 203A

PAM Contract 2006

If any occurrences of loss or damage to

Work prior to the completion of the

Contractor start to restore loss / damage

work while waiting for insurance

Default
Insuring

Risk Covered

in

Works, the Contractor shall restore the

damaged work even before the pay out
by the insurance company has been
made. All monies received from the
insurance shall be paid to the
Government first and then be released
to the Contractor by installments on the
certificate for payment issued by S.O.
under Clause 18.3.

payment so long as all necessary

investigation have been completed.

If contractor failed to renew such

insurance, the Government or S.O. may
renew such insurance and pay the
premium by decuting the amount from
any monies due to the contractor. The
Government also may extent the
insurances on behalf of the contractor,
the cost of on-cost charges under Clause
18.2.

If contractor failed to insure or extend

the
insurance
coverage period,
Employer may insure against any risk
and set-off from money to contractor in
next payment certificate under Clause
20.A.3.

The Contractor shall in the joint names

of the Government and Contractor
insure against loss and damage by fire,
lightning, explosion, storm, flood,
ground subsidence and others, including
materials and goods so insured until the
completion of the whole Works but
exclude temporary buildings, plant,
tools and equipment owned or hired by
contractor under Clause 18.1.

Contractor take out Contractor All Risk

(CAR) Insurance, in the joints name of
the Employer, Contractor, subcontractors and all interested parties
and the insurance shall have
endorsements to cover against loss
and/or damagae by fire, lightning ,
explosion,
earthquake,
ground
subsidence and others and exclude
cover for construciton plant, tools and
equipment owned or hired by the
contractor unless otherwise stated
under Clause 20.A.1.

Insurance money paid to Employer

who retain portion meant for
professional fees and pay a balance to
Contractor based on progress of
satisfactory restored works certified by
Architect up to limit paid by insurance
company under Clause 20.A.4.

The Difference between PWD Form 203A and PAM Contract 2006
PWD Form 203A

PAM Contract 2006

Placing
Insurance

of The said insurance with or without an According to Clause 20.A.3, the

excess clause shall be effected with an licensed insurance company should be
insurance company that approved by the approved by Employer.
S.O. according to Clause 18.1(b).

Validation
period
Insurance

Cancellation of insurance is made 30 days

of after receipt of notice by the government.
Where claims exceed insured amount, the
surplus shall be borne by contractor. It
stipulates a notification procedure and
obligation the contractor to ensure a

According to Clause 20.A.1, insurance

will be valid after the defect. Insurance
be extended accordingly when
Extension of Time has been granted.
On the other hand, Partial Completion
or early Certificate of Completion

mandatory procedure is followed any require proportionate reduction of

cancellation process under clause 18.4.
insurance coverage.
Value
of According to Clause 18.1(a), full value
insured sum
thereof plus any amount which maybe
specifically stated in appendix or
elsewhere in the contract documents.

CAR insurances policy for a value not

less than the contract sum, plus the
sum to cover professional fees under
Clasue 20.A.1.

Extension
Insurance

of

Not stated.

Under Clause 20.A.1, the notification

for renew the insurnace should be
given one(1) month before the expiry
date of insurance.

Additional
risks to be
covered under
the insurance

Not stated.

Other than risks covered under Clause

20.A.1, additional risks required e.g.
vibration cover for piling need be
specified in Contract Bills. Besides,
the design of the building may take as
a risk because there might be problem
to the drawing in one day. Thus,
contractor can cover for additional
risks.

Insurance
Works

of According to Clause 42.1(e), Insurance of

the Works. Contractor should give a
notice to the insurer that the part of the
building is partial occupation/taking over
by the government.

Not stated.

Validation Period of Insurance;

Defect
Liability
Period

Contract period

Date of Commencement

Date of Completion

3 months of Insurance

OR,

Contract period

Date of Commencement

Defect
Liability
Period

NEW Date of
Completion
Date of Completion

3 months of Insurance