Standard Form of Contract Note

STANDARD FORM OF
CONTRACT
PROF MADYA NGAH YAHYA EMBONG
FORMS OF CONTRACT
 Standard forms
 Model forms
 Modified forms
 Ad hoc [because of situation / not planned in
advance]
 Bespoke [specially drafted/ according to the
needs of individual project]
STANDARD FORM OF CONTRACT
WHAT IS STANDARD FORM OF CONTRACT?
DEFINATION
Building Contract Dictionary (Blackwell Science, third edition) defines

standard form as :
A PRINTED FORM OF ONTRACT CONTAINING STANDARD CONDITIONS WHICH ARE

APPLICABLE (OR CAN BE MADE APPLICABLE BY THE USE OF ALTERNATIVE) TO A
WIDE RANGE OF PROJECTS. THEY ARE PREFERABLE TO SPECIALLY DRAFTED
CONTRACTS BECAUSE THEY ARE INTENDED TO BE COMPREHENSIVE & AVOID
MOST OF THE PITFALLS WHICH SURROUND CONTRACTUAL RELATIONS IN THE
BUILDING INDUSTRY.
CHARACTERISTICS
Arrived at through a process of consultation & negotiation between representatives of
various sectors of the industry like professional institutions & contractors associations
The form set out the terms & conditions on which the contract between the parties are to be
executed
The terms & condition are generally suitable for a wide range of common projects or jobs
ADVANTANGES OF STANDARD FORM
Familiarity
Fair to all parties
Less ambigious
Cost & time saving
TYPES OF STANARDS FORMS

In Malaysia, the two (2) most commonly used are :
JKR (PWD) Standard Form of Contract
PAM Standard Form of Contract
The forms are widely used for government projects
(public sector) & the latter for private projects.
Figure 1 completes the picture on the use of standard
form of contracts locally & internationally
STANDARD FORMS OF CONTRACT
GOVERNMENT/PUBLIC PRIVATE SECTOR INTERNATIONAL

SECTOR CONTRACTS
FIDIC Conditions
ICE Conditions
JKR/PWD MISCELLANEOUS
IEEE Conditions
203 (Rev 2007) CIDB Form for
building contracts ImechE Conditions
without quantities 2000 Edn
JCT Conditions
203A (Rev 2007) Modified JKR/PWD
Forms, e.g. LPK,
For NSC MHA etc.
203P (Rev 10/83) BUILDING WORKS CIVIL ENGINEERING M&E WORKS
WORKS
For Nominated
Suppliers PAM 2006-Without
Quantities IEM Conditions IEM Conditions
PWD form DB/T (2000
Edn) for Design & Build PAM 2006-With -IEM.CE 1/89 -IEM.ME 1/94
Turnkey Contract Quantities
-IEM.CES 1/90 TNB Conditions, etc
PWD (2010) ? Latest PAM NSC 2006
revison
Figure 1 : Standard Form of Contract (Part II)
Source: Adapted from, Harban Singh KS, “ Engineering and Construction Contracts
Management; Law and Principle”, 2002
BACKGROUND
Historically, the initial set of Standard Forms were
drafted by the various government agencies for works in
the public sector i.e. earlier version of PWD form
modeled on the RIBA Form of Contract 1931 and the
latest revisions coming in 1983.
Due to progress of development projects, many other

professional bodies published their own version of
standard forms to suit the current development and
modernisation and variation of procurement methods i.e.
IEM was first published in 1989 and PAM in 1969 (Lian,
Im and Kheng, 2000).
6
GOVERNMENT / PUBLIC SECTOR
Public Works Department

 PWD Form 203 (Rev 2007) without
quantities.
 PWD Form 203A (Rev 2007) with quantities.
 PWD Form 203N (Rev 2007) for Nominated
Sub-Contractors.
7
Government / Public Sector
Public Works Department (cont’d)

 PWD Form 203P (Rev 10/83) for Nominated
Suppliers.
 PWD Form DB/T for Design and Build
Turnkey Contracts.
8
(cont’d)
Construction Industry Development Board
 CIDB Form for Building Contracts 2000 Edition.
 Standard Proforma for Contract
Administration (For use in conjunction with The
CIDB Standard Form of Contract for Building
Works).
9
(cont’d)
 CIDB Standard Form of Sub-contract For
Nominated Sub-Contractor [Form CIDB.B
(NSC) / 2002] (To complement the Standard
Form of Contract for Building Works).
 Model Terms of Construction Contract for
Subcontract Work (2006) [CIDB / CICC].
10
Model Terms of Construction
Contract for Subcontract Work.
Intended to be used as part of a generally ‘stand
alone’ subcontract and not ‘back to back’ to
any one main contract.
The generic drafting style and flexibility mean it

can be used as subcontract terms with any main
contract whether a one-off contract (bespoke
& ad hoc) or published “standard form” such
as the PWD, PAM, IEM, CIDB, FIDIC or JCT
contracts.
11
CIDB Forms
CIDB published its own version of Standard

Forms for building works (main contract and
sub contract). But the question is do we
need another public sector standard form?
There is presumption that CIDB will replace

PWD Standard Forms?
12
Other Public Sector Forms
Some statutory bodies and public sector

related bodies utilise the PWD Standard
Forms with slight modifications and/or
amendments.
 Drainage and Irrigation Department (DID/JPS)
 Lembaga Pelabuhan Kelang (Port Klang
Authority)
13
Private Sector
PAM
 PAM 2006 with quantities.
 PAM 2006 without quantities.
 PAM NSC 2006 to be used for NSC where the
main contract is based upon the above.
14
PAM
Origin
Rather than developing and drafting a new
standard form on its own, PAM in
collaboration with the ISM in 1969 adopted
1963 JCT Standard Form of Building
Contract (Reprinted 1968) with
modifications to be used for private sector
building works through traditional general
contracting contract procurement method
comprised:
15
PAM [Previous Version]
 PAM/ISM 1969 Standard Form of Building

Contract With Quantities.
 PAM/ISM 1969 Standard Form of Building
Contract Without Quantities.
 PAM NSC 1970 Standard Form of Contract for
Nominated Sub-Contractors to be used with
PAM/ISM 1969.
16
PAM 1998
Usage
Essentially for :
1. 1. Private sector projects
2. 2. Building works
3. 3. Contracts undertaken through Traditional
General Contracting Procurement
17
Private Sector
Civil Engineering works
 IEM Condition IEM.CE 1/89. Mainly for Civil
Engineering Construction (Second Reprint
1994).
 IEM Condition IEM.CES 1/90. Sub-contract
for use in conjunction with the IEM Condition
(First Reprint 1994).
18
Private Sector
M&E works
 IEM Condition IEM.ME. For mechanical and
electrical work (First Edition 1994).
 Sub contract? [absent]
19
IEM Forms
Origin
Due to rigorous/harsh and pitfalls of the
JKR/PWD forms and unsuitability of the
PAM forms for engineering and
infrastructure projects, construction
engineering professionals attempted to
employ UK engineering forms i.e. ICE,
IMECHE, IEE, JCT and FIDIC forms with
modifications.
20
IEM Forms
Origin (cont’d)
The “modifications” were subject to job
specific and ad hoc basis. Thus, leading to
uncertainty, inconsistency and leading to
construction disputes.
Due to that, IEM attempted to fill in the

lacuna by drafting their own Standard Forms
started in 1989 for the traditional general
contracting.
21
IEM Forms
Usage
 Private sector projects.
 Civil engineering, Mechanical and Electrical
works.
 Procured under the Traditional General
Contracting.
22
International Contracts
 FIDIC family
 JCT Family
 IEEE
 IMechE
 ECC
 PPC 2000
23
THANK YOU

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STANDARD FORM OF

Building Contract Dictionary (Blackwell Science, third edition) defines

A PRINTED FORM OF ONTRACT CONTAINING STANDARD CONDITIONS WHICH ARE

TYPES OF STANARDS FORMS

GOVERNMENT/PUBLIC PRIVATE SECTOR INTERNATIONAL

Due to progress of development projects, many other

Public Works Department

Public Works Department (cont’d)

The generic drafting style and flexibility mean it

CIDB published its own version of Standard

There is presumption that CIDB will replace

Some statutory bodies and public sector

 PAM/ISM 1969 Standard Form of Building

Due to that, IEM attempted to fill in the

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