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7/29/2019 Presentation Law Latest

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GROUP MEMBERS :

AIMI SARA BT ISMAILFATIN MAHIRAH BT AHMAD MARZUKI INTAN FATIN SYAZWANI BT AZINAL

ABIDIN


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Termination of contract is to terminate anexisting agreement/contract between twoparties.

A termination notice must be in writing.


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1. Contractors Obligation2. Problem occur during the

contract period


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Fails to commence works at the site within2 weeks after the date for possession.

Suspends or abandons the carrying out

the works without reasons for a continuousperiod

Fails to proceed regularly and diligentlywith the performance of his obligations.

Fails to execute the works in accordancewith the contracts


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Purposely neglects to carry out his

obligations under the contract.Refuses or purposely neglect to comply

with a written notice from the S.O in

relation to any defective work or equipmentFails to comply with the provisions ofclause 47

Fails to comply with any terms and

conditions of this contract.


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The contractor becomes bankruptThe contractor becomes insolvent or

compounds with or enters into anarrangements or compositions with itscreditors

Order for winding up of contractor


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A provisional liquidator, receiver ormanager of its business or undertakingduly appointed , or possession taken by or

on behalf of creditors or debenture holders


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CONTRACTOR SHALL : Discontinue all operations of works Carry out any protection works to secure

the Site, equipment, goods, and materialsfrom any losses or damages.

Remove all personnel and workmen from

Site. Pay to the Government for any losses and

damages.


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CONTRACTOR SHALL : terminate all third party contracts

or supply materials or goods to the

Government without any costs orexpenses.

or allow the third party to enter contract with

the Government.


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CONTRACTOR SHALL : Vacate the site within the time instructed by

S.O., remove all temporary buildings, plant,tools, equipment, goods and unfixedmaterials which have not been paid by theGovernment.

Hand over all plans, designs, specificationand other relevant documents to

Government. Not be released from any of its obligations

under the Contract.


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GOVERNMENT SHALL : Demand Performance Bond or

Performance Guarantee Sum. Enter and repossess the Site.

Carry out and complete the works on itsown or employ other party.

Claim from the Contractor for any losses,costs, expenses and damages.


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Notwithstanding, any provision of thiscontract, the government may terminatethis contract by giving not less than 30days written notice to that effect to thecontractor if the government considers thatsuch termination is necessary for national

interest.


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Payment obligations incurred by the

Government and the Contractor aredetermined.

Apply Clause 51.1(c)(i) and Clause51.1(c)(ii)(B) & (C)


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Without prejudice to any other rights of thegovernment, of the company, its personnelor employees is convicted by a court of law

for corruption or unlawful or illegalactivities in relation to this contract or anyother agreement that the contractor mayhave with the government, the governmentshall be entitled to terminate this contractat any time, by giving immediate writtennotice.


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Government shall be entitled to claim all

losses, costs, damages and expensesincurred by the Government.

Apply Clause 51.1(c)(i) &(ii)

Contractor shall not be entitled to claimany form of losses.


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Surat amarankemungkiran

kontraktor

Kontraktormeneruskan

kemungkiran kontrakTiada tindakan

Notis penamatanpengambilan kerja

kontraktor

Kontraktormeneruskan

kemungkirankontrak

Penamatan pengambilankerja kontraktor

Tiada tindakan

Kontraktor mengulangikemungkiran

14 hari

Ya

Tidak

Tidak

Ya


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PAYMENTSUPON

SUSPENSION &TERMINATION

ON NATIONALINTEREST

EVENTS &

CONSEQUENCES OF DEFAULT

BY THEGOVERNMENT

CLAUSE 54

CLAUSE 55

CLAUSE 56

CERTIFICATEOF

TERMINATIONCOSTS


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CLAUSE 54Payments upon suspension & termination

on national interest


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CLAUSE 54.1

CLAUSE 54.1 (a) Value of work that have be donebefore the termination.

CLAUSE 54.1 (b) Amounts payable ;

1. Any preliminaries items sofar as the work or servicehas been carriedout/performed

2. A proper proportion of anyitems which have been

partially carried out.


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CLAUSE 54.1 (c)The cost of materials thatneeded in the construction

which have been delivered tothe contractor or contractor islegally liable to accept delivery.

This is due to ;Any payment made for the

materials belong to theproperty of the Government

CLAUSE 54.1 (d) A sum being the amount of any

expenditure reasonablyincurred by the contractor

In so far as such expenditurehas not been recovered by anyother payment.


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CLAUSE 54.1 (e)The reasonable cost of anyprotection works and removal ofequipment & site facilities

pursuant to termination asprovided under this contract.

CLAUSE 54.2

Base on this clause, for avoidance of doubt, the parties hereby agreethat contractor not entitled to any loss of profit, damages, claims orwhatsoever other than stated in clause 54.1(a) (e)

CLAUSE 54.3

Base on this clause, a final account need to be prepared and issuedby S.O upon termination of this contract under clause 50 & 52


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CLAUSE 55Events and consequences of default by the

government

CLAUSE 55 (a)Events of defaults

Base on this clause, if government without reasonable cause fails toperform of fulfill any of its obligations which affect the works,

The contractor may issue a notice specifying the default bygovernment& requiring the government to remedy the same within the period

specified (taking into account the nature of the remedy to be carriedby government / such other period as may be agreed by both partiesfrom the date of receipt of such notice)


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CLAUSE 55 (b)Termination

Base on this clause, if government fails to remedy the default periodspecified in such noticed issued under clause 55(a),

The contractor has the right to terminate the contract by giving awritten notice to that effect.

CLAUSE 55 (c)Consequenced of

Termination

(i) Base on this clause, if the contract is terminated under clause 55(b), the government should pay to the contractor ;

55(c) (i) - (a) to (d) = same as in clause 54.1 (a) to (d)

(ii) For the avoidance of doubt, the parties hereby agree thatcontractor shall not entitled to any other form of losses including lossof profit , damages, claims or whatsoever upon termination of thiscontract.


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CLAUSE 56.1

1. Base on this clause, S.O need to make a reasonably accurateassesment of the ultimate cost to the government & the amount ofdirect loss and/or damage caused to the government.

2. S.O need to issue a certificate call Certificate of TerminationCosts stating the Completion Cost and Final Contract Sum

CLAUSE 56Certificate of termination Costs


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CLAUSE 56.2

Base on this clause, the Completion Cost comprises the followingsums,costs or expenditure ;

(a) The sum previously paid to the contractor by the government(b) the sums paid or payable to other contractor engaged by the

government to complete the work(c) any sums paid to sub- contractors or suppliers under clause 61(d) any cost expenditue incurred or to be incurred including On-Cost

charges incurred by the government in completing the works(e) the amount of direct loss and/or damage caused to the

government due to the termination


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CLAUSE 56.3

Base on this clause, the Final Contract Sum comprises the followingamounts or sums ;

(a) The amount which would have been payable under contract oncompletion in accordance with the contract, allowing any variationspr other matters which would have resulted in an adjustment of theoriginal contract sum

(b) any other sum which the government might be entitled under theterms of the contract to deduct from the original contract sum

CLAUSE 56.4

Base on this clause, The Certificate of Termination Cost shall statethe difference between Final Contract Sum & Completion Cost.

If the Final Contract Sum is less than Completion Cost, the differenceshall be a debt payable by contractor to the government & vice versa


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CLAUSE 56.5

Base on this clause, the Certificate of Termination Cost shall bebinding and conclusive on the contractor as to the amount of suchloss or damage specified therein.

CLAUSE 56.6

Base on this clause, in the event of completion of works beingundertaken departmentally , allowance shall be made, whenascertaining the amount to be certified as costs & expense incurredby government (for cost of supervision,interest, depreciation on plant& all other overhead charges and profit as would be incurred by othercontractors/persons.


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LIBENHAM FIDELITIES & INVESTMENT CO.LTD. V SOUTH PEMBROKESHIRE DISTRICTCOUNCIL & WIGLEY FOX PARTNERSHIP

CONTRACTORLIBENHAM FIDELITIES &INVESTMENT CO. LTD.

CLIENTSOUTH PEMBROKESHIRE

DISTRICT COUNCIL &WIGLEY FOX PARTNERSHIP


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S.O had mistakenly advice the client tocharge LAD towards the Contractor due tothe defects occur during constructionperiod.

Contractor argued the Clients action and

abandoned the works on site.Client decided to terminate the contract.Court held that Contractor had no right to

abandon the Site and termination ofcontract by Client is legal.

Clause 51.1(a)(ii)

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