Procedure and Effects of Delayed Possession of Site under PAM 2006

Where 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. All standard forms of contract used in Malaysia including PAM 2006, provide for a specific date for possession of the site. Failure to give possession of the site is a breach not only of the express terms of a contract but also a breach of a term that would be implied at common law in the absence of such an express term.

As a result of the Employers default in giving possession of site being a material breach of the contract, a protracted failure by the Employer to give possession of site, and any subsequent acceptance by the Contractor of the Employer’s breach, may entitle the Contractor to accept the repudiation and to commence an action for damages, which could include the loss of the profit that it would otherwise have earned. (See Wraight Ltd v PH&T Holdings Ltd [1968]). In Malaysia most Contractors would balk at taking such drastic action, but they may claim damages at common law for any loss actually incurred. (more)

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Contractors Head Office Overheads Entitlement for Delays

MALCONLAW as added four Articles on the subject of Contractors entitlement to Head Office Overheads and the three main formula adopted to calculate the entitlement as an alternative to the Contractor proving his actual Head Office Overheads where the courts allow.

The articles added are:

Remember entitlement would only exist where the Contractor can:

Establish delay was due to the Employers obligations or risks under the contract or common law.

The Delays resulted in Contractor suffering losses.

The Contractor was prevented from taking on new work as a result of the delay.

 

We hope you find the Articles useful.

MALCONLAW

 

Procedure and Effects of Delayed Possession of Site under PAM 2006

Procedure and Effects of Delayed Possession of Site under PAM 2006

Where 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. All standard forms of contract used in Malaysia including PAM 2006, provide for a specific date for possession of the site. Failure to give possession of the site is a breach not only of the express terms of a contract but also a breach of a term that would be implied at common law in the absence of such an express term…..more

 

Must the Architect give the Contractor detailed reasons to explain an Extension of Time Determination under PAM 2006.

Must the Architect give the Contractor detailed reasons to explain an Extension of Time Determination under PAM 2006. 

Under the PAM 2006 Standard Forms of Building Contract it requires the Contractor to give notice of delay to the Works as soon as it becomes reasonably apparent. The Contractor is also required to provide details of the delaying event and its likely effect and to provide the Architect with such further information as reasonably required…..more

Contractors Claims for Disruption

Contractors Claims for Disruption

 

Disruption Claims have always been very difficult to establish with any precision and even more difficult to ascertain in financial entitlement, as a result the vast majority of Contractors’ claims are based on prolongation of the contract period which is easier for the parties understand and a more straightforward claim to establish and reach a settlement on, although not if all parties are acting strictly in accordance with the terms of the PAM or similar standard forms of contract…… more