PROBLEM
STATEMENT
It is common to notice nowadays that almost all construction
projects do not finish in their original contractual finish date. This happen
due to so many reasons which may come from the contractor’s own mistake,
neutral events, other third party and employer’s act of prevention. When delay
was due to Contractor and Nominated Sub-Contractor’s mistake, the Architect
will be quick to issue CNC and the Employer will not hesitate to immediately
impose LAD. This happen because the contract does not impose strict and tedious
procedures for the Employer to deduct LAD.
On the other hand, if delay was due to Employer’s act of
prevention, the contract stipulated endless and tedious process and procedures
which must be complied with by the Contractor and Nominated Sub-Contractor’s
before they can succeed in their claim for EOT and Loss and Expense from the
Employer. Unfortunately, not many Contractor and Nominated Sub-Contractor are
aware about this endless and tedious procedures which was purposely included in
the construction contract. Due to this poor understanding and awareness, a lot
of Contractor and Nominated Sub-Contractor have lost their right to a fair EOT
and Loss and Expense which they are supposed to be entitled to. There was a
dispute with regard to this issue and eventually referred to the Court. The
poor Contractor claim for Loss and Expense from the Employer in the amount of
RM 12 million. The Court however rejected the whole of the Contractor’s claim.
The main reason for that rejection was because the Contractor had failed to
comply with the tedious claiming procedures stipulated by the contract.
It is believed that there are many more cases where
the Contractor and Nominated Sub-Contractor failed to claim for EOT
and Loss and Expense. This has cause them to lose money which they are supposed
to be entitled to had they complied with the contract. Loss and Expense is a
claim for reimbursement for cost which they have incurred due to Employer’s
mistake during the delay period. Losing this claim shall mean they have to pay
for other party’s mistake and thus reduce their profit or increased their loss.
To overcome the problem, it is imperative for
the Contractor and Nominated Sub-Contractor to wake up and equip
themselves with knowledge which can benefit the company, especially the
knowledge on how to succeed in claiming for a fair EOT and Loss and Expense.
They have to start sending their project team members to Seminar that offers
the relevant contractual knowledge.
COME AND JOIN OUR SEMINAR
SEMINAR
OBJECTIVE
The objective of this seminar is to guide contractors and
sub-contractors (NSC) on how to manage claim for time and costs in a more
strategic, systematic and structured approach based on requirements set
under PAM 2018 (MC) & PAM Sub-Contract 2018 (NSC) form of
contract. Effective management will enhance the clarity and persuasiveness
of their claims and at the same time will ensure compliance with the procedures
set by the contract. A well-organized claim document, supported by relevant detailed
particulars of the events and costs and comply with the contract procedures
will avoid the claim from being disputed and rejected by the Architect and
Employer. At the same time, a systematic and structured claim presentation
which comply with the procedures will expedite the approval process and
payment. This will enhance good and stable project cash-flow.
WHAT
PARTICIPANT WILL GAIN
In this seminar, participants will be guided on how to
prepare a systematic and structured claim which complies with the strict
process and procedures set under the contract, for the following type of
claims:
i. Additional
expenses caused by Variation Works under clause 11.7 of PAM 2018 (MC) &
clause 12.3 of PAM Sub-Contract 2018 (NSC).
ii. Extension
of Time under clause 23 of PAM 2018 (MC) & clause 21 of PAM Sub-Contract
2018 (NSC).
iii. Loss
and Expense under clause 24 of PAM 2018 (MC) & clause 22 of PAM
Sub-Contract 2018 (NSC).
It must be noted that based on the contract provision,
strict compliance to all of these process and procedures are “condition
precedent” to a successful claim. As such, any failure to strictly comply with
any of the conditions (process and procedures) stipulated by the contract, will
render the claim to be invalidated and rejected. Any rejection will cause the
poor contractor and sub-contractor to suffer in which they will lose
money which they have already spent due to other’s fault.
Important to note, that the process and procedures set under
PAM Sub-Contract 2018 (NSC) is slightly differ and a little bit more cumbersome
as compared to those under PAM 2018 (MC). Claims under PAM Sub-Contract 2018
(NSC) requires the Nominated Sub-Contractor to request contractual cooperation
from the Main Contractor. This requires the Sub-Contractor to effectively
communicate with Main Contractor within the short time frame stipulated by the
contract. Poor communication will lead to poor cooperation and poor cooperation
will jeopardize the claim and will eventually create contractual dispute
between the parties.
HOW THIS
SEMINAR WILL BE CONDUCTED
To further clarify the strict process and procedures, in
this seminar, we will also discuss and highlight common mistakes and
non-compliances which industry players did in the management of the above type
of claim as reported and pronounced in the ground judgment of a few local case
laws. Based on these pronounced cases, there were mistakes made by contractors
and sub-contractors (NSC) and also there were mistakes made by Architects and
consultants with regard to the compliance with the process and procedures set
under PAM 2018 (MC) & clause 21 of PAM Sub-Contract 2018 (NSC). These
mistakes must be avoided.
In order to avoid all of these mistakes, participant will be
guided on how to build proper claim templates which aligned with the
requirement stipulated by PAM 2018 (MC) & PAM Sub-Contract 2018 (NSC). Few
ready-made templates will be discussed and pass as seminar notes.
The seminar will be held in an interactive way. Participant
will be encouraged to interact and engage with the speaker at any time during
the course of the seminar. This is to ensure that every participant understand
the content of the seminar well and able to practice what they have learned for
the benefit of their company and their own professional career development.
LECTURER
This seminar will be led by Tn Hj Ismail Hj
Omar. He has served in the public and private sectors both locally
and abroad. Throughout his career, he has managed several large projects and
involved in various construction methodologies for the construction of
buildings, highways, treatment plants, railroad tracks and industrial parks, to
name a few. As a Project Manager, he has proudly head, managed and accomplished
projects worth more than RM 900 million.
In the course of his career as Project Manager, he has
managed a few types of construction contracts including PWD 203 series of
standard form of contracts, PAM 2006 and FIDIC standard forms. Based on his
wide experience and expertise in Project Management he has authored four
e-books for Correspondences Templates based on terms and conditions under PWD
203A, 203N, PAM 2018 & PAM Sub-Contract 2018. He also acts as Claim
Consultant for contractor who wish to bring their dispute to CIPAA or
Arbitration.
