QUESTION 3 - PAM 2018 (CONTRACTOR'S LIABILITY, ARCHITECT'S POWERS, & CONTRACTUAL REMEDIES)

Clause 1.1

Completion of works in accordance with contract documents

• The contractor has an express dual obligation to carry out & complete works in compliance with the Contract Document

Clause 6.1

Standards of works, materials, goods, & workmanship

• All works, materials, & workmanship must comply with the quality & descriptions stated in the contract document

Clause 6.4

Contractor’s obligations are not relieved

• Previous inspections/testings by the Architect does not relieve the contractor from their obligation to execute work perfectly

Clause 2.2

The architect must issue instructions in writing to be legally binding

Clause 6.5

Works not in accordance with Contract

• If the Architect finds that works are not complied with the Contract, he may issue an AI to deal with the non-compliance

Clause 6.5(a) & 6.5(b)

A - Can instruct the contractor to remove defective materials from site & demolish & reconstruct works

Clause 6.5(d)

A - Can instruct Contractor to submit a method statement proposing how works can be rectified (≤ 7 days of receipt of AI)

Clause 6.5(e)

A - Can accept defective works to remain as they are with the Employer’s consent

Clause 6.6

No compensation for time & cost

• The contractor is not entitled to any EOT/DLE for extra costs incurred if forced to comply with defect rectification instructions

Clause 2.4

Failure of AI compliance

• If the contractor fails to comply ≤ 7 days of AI receipt, the Employer can employ and pay a 3rd party contractor to execute rectification works and set-off deductions (cl. 30.4)

Clause 30.4

Set-off by the Employer

• The employer/architect deliver a written notice specifying intention to deduct costs ≤ 28 days before actual deduction occurs