2009 Paper 2: Question 2

The project is a city centre mixed development consisting of the following components:

Phase 1 – 3 level basement car parks
Phase 2 – Shopping mall in 4 storey common podium block
Phase 3 – 18 storey Serviced Apartment – Block A
Phase 4 - 18 storey Serviced Apartment – Block B
Phase 5 – 20 storey office Block c


The Developer has decided to develop each phase under a different contract. For Phase 1 and 2 the PAM Form of Contract 1998 was used.

a) Upon completion of Phase 1 works, the Phase 2 Contractor’s Land surveyor found several column positions out of alignment. The phase 2 contractor has submitted a VO for realignment of beams and column head adjustments. The Developer has refused to pay for the VO. He pointed out that as he had entrusted the entire construction to the consultants, the extra cost would be deducted from the Professional Fees.

Explain how you would resolve this problem. (5 marks)


My answer:

The architect shall write to the clients on the following salient points:

1. The issuance of CPC and even the Final certificate does not relieve the first contractor from their contractual obligation due to default in their works.

2. According to clause 5.1 the consultant’s is only responsible to provide accurately dimensioned drawings for the contractor to carry out the works.

3. The first contractor is responsible on the error on inaccurate setting out.

4. If the DLP period has not lapsed, Architect (according to clause 15.6) shall issue instruction to Phase 1 contractor to realign the columns and beams head within a reasonable time specified by the Architect.

5. If the Phase 1 Contractor failed to do so in the specified time, the developer may employ other person i.e. Phase 2 Contractor to carry out the works and the cost incurred shall be set off from the Phase 1 contractor’s account under clause 30.4