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In a building project, the Architect, as the S.O is expected to make decision throughout the
Contract Period in accordance with the provisions of PAM’s Agreement and Conditions of
Building Contract, which empowers the Architect to act in the implementation of the Building
Contract.
How would you advise on the following cases with a brief explanation for each:
(b) Is the Main Contractor responsible for the defects of the Nominated Sub-contractor? (3 marks)
Yes. Under Pam Contract sub-clause 27.9, the contractor shall be fully responsible to ensure all
NSC carry out the sub-contract works in accordance to Nominated Sub-Contract.
(c) The Main Contractor’s works is delayed by several domestic sub-contractors and as a result,
the Main Contractor has to pay Liquidated Damages (LD) to the employer.
Can the Main Contractor request the Architect to apportion the amount of LD that he has to pay
among the defaulting domestic Sub-contractor? (3 marks)
(d) What are the roles of the architect under the building contract? (3 marks)
The architect has to ensure that the contract is administered fairly between both Contractual
Parties. For an instance, if there are any errors in the contract bills, either in terms of
description, quantity or by omission, architect has to correct such errors. At this point, architect
should be the administrator of the contract between both parties. Apart from administering the
Building Contract to ensure that works get completed according to plan, the most important task
of an Architect is is in conceptualizing the building followed by producing and managing the
information required to construct the works.
(e) If there is an obstruction on site, list the steps to be taken and the architect’s advice to his
client. (4 marks)
When the employer fails to give possession of the site to the contractor on or before the date
stated within the contract, it is a breach of contract and, if the failure to give possession
continues for any significant time, it will be a material of the contract. This is because without
possession of the site the contractor cannot execute the works under the contract. Therefore, the
contractor could claim damages at common law for any loss actually incurred. At this point,
architect could issue a postponement or similar instruction under the contract.
Under sub-clause 21.1, if there is a delay by the employer in giving possessions of the site to
contractor, architect shall grant an extension of time under clause 23.8(F).
(g) Which clause empower architect to instruct contractor to work diligently; in the event the
contractor is behind schedule? And what to do if contractor failed to do so? (3 marks)
Under clause 2.0 Architect’s Instruction, the contractor shall subject to sub-clause 2.2 and 2.3
forthwith comply with all instructions issued to him by the Architect in regards to any matter in
respect of which the Architect is expressly empowered by these conditions to issue instructions.
Besides, the sub-clause 2.4 failure of contractor to comply with AI, if the time of compliance
(which shall not less than days from receipt of AI) is stated by architect in the AI, the contractor
may posses under the contract, employ and pay other person to execute any work which may be
necessary to give effect to such instruction. The cost of employing other person and any
additional cost in this connection shall be set-off by the employer under clause 30.4.
The sub-clause 6.7 failure of contractor to comply, if the contractor fails or refuses to comply
with a written instruction of the architect issued under sub-clause 6.5, the employer may employ
and pay other person to carry out the subject matter of written instruction. All costs and loss
shall be set off.
Variation works define as any work alteration may simply be an addition to an existing order in
terms of alterations to design, quantity, quality, modification in sequencing of work, and
working condition alterations including adding, omit, substitute or remove of works. Variation
orders affect not only the cost of the project, and may affect completion dates as well. All
variation works need instruction by the architect through Architect’s Instruction (AI). Under
clause 11.1, the term “variation” means the alterations or modification of design, quality or
quantity of the works including:
a) addition, omission or substitution of any work
c) removal from Site any work executed or materials and goods brought thereon for the purposes
of the Works
iv) the execution and completion of the work in any specific order
i. Client comes to you and wanted to add extra items to a list of final defects you issued 2 days
before expiry of DLP. Should you entertain your client? (3 marks)
Under the PAM contract sub-clause 15.3, it allows the Architect to issue instructions requiring
any defects, shrinkages or other faults appearing within DLP due to materials or workmanship
not in accordance with the Contract. Such instruction for rectifying defects, shrinkages or other
faults can no longer be issued after 14 days from expiry of the DLP. Therefore, yes, we should as
architect may at any time during the Defects Liability Period issue an AI requiring any critical
defects under PAM contract sub-clause 15.4.
ii. After having issued the defects list but before the issuance of the Certificate of Making Good
Defects, further latent defects came into light. What would be your action? (5 marks)
(b) In drafting a letter of Award, state the main components and specific conditions to be included
in making the award binding based on the standard PAM Form of Agreement and Conditions of
Building Contract with Quantities. (8 marks)
In drafting a letter of award, the main components in in making the award binding based on the
standard PAM Form of Agreement and Conditions of Building Contract with Quantities are:
vii) Insurances
- All insurance taken out under the Contract shall strictly adhere to the full
requirements provided in the Tender Documents including maintenance of the
Defects Liability Period from the Date of Practical Completion.
The Agreement and Conditions of PAM Contract 2006 (with or without quantities) states that
Practical Completion or Practically Completed means the state of completion described in Clause
15.1 of the Conditions of Contract and that a Certificate of Practical Completion means a
certificate issued under Clause 15.2 of the Conditions of Contract.
The Certificate of Practical Completion is the document which also initiates such events as the
release of the first moiety of retention, exclusion of liability for Liquidated and Ascertained
Damages and changes in obligations in respect of insurance for the Works is by no means a
coincidence in the frequency of disputes which question the date the works did indeed reach
practical completion.
iii. Architect’s issuance of the Certificate of Completion and Compliance (CCC) for the building
(3 marks)