Thursday, February 24, 2011

Independent Certifier in PWD contract

The PWD contract was drafted with the intention to have an independent certifier intact. A typical PWD contract would mention the client as the Government of Malaysia. The officers empowered to execute the contract should be the person named in the Government Contract Act 1949 i.e. Works Minister, Director of Works etc.

The SO however, may or may not be another officer with an official designation in the relevant department who must act fairly and impartially in performing his duties.

In Perini Corporation v Commonwealth of Australia (1969) it was held that the Director of Works, who was the certifier under the contract, in making his decision was entitled to consider departmental policy but would be acting wrongfully if he were to consider himself as controlled by departmental policy.It was implied that the Commonwealth should not interfere with the Director of Works' duty as a certifier.