A Study on the Effects of the “Extension of Time” Clause between PAM 1998 and PAM 2006 Form of Building Contract

Chiew, Jenn Hoong (2020) A Study on the Effects of the “Extension of Time” Clause between PAM 1998 and PAM 2006 Form of Building Contract. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Some said time is equals to money. Yet, time is not necessary equivalent to money under contractual terms. There are various grounds provided in the contract that allow the Contractor to claim for time with/without money if such a delay is caused by natural disaster, agent’s or Employer’s default. PAM Contract happens to be the most famous Standard Form of Contract (SFOC) and the latest version of the PAM Contract is launched to replace the previous version in July 2007. Therefore, the risk allocation for time, money, matters, quality issues and dispute resolution between the Contractor, Employer and Consultant team has been shifted significantly in the latest version of PAM Form. Besides, such reallocation of risk proportionately increase the Employer’s exposure and burden in terms of claims and payment while providing more possible ground for disputes between the Contractor and Employer. The objectives for this research is to determine whether the changes of Extension of Time (EOT) clause between PAM Contract 1998 and 2006 edition are for the betterment of the construction industry or otherwise; to determine the effects of the changes to both the Employer and Contractor. The research methodology of this research includes literature reviews, data collection, and analysis. Data is gathered from the response of questionnaire survey with the Professional Quantity Surveyors. The research findings showed out that the additional provision in revision of Extension of Time (EOT) by the Architect is not betterment for the construction industry. This research also highlighted that the changes in the time frame for submission and additional provision in changes to law/terms of authority/services as Relevant Events are in the favor to the Employer; the additional provision in instruction for insufficient information and revision of granted Extension of Time (EOT) by Architect, execution of work under a Provisional Quantity and Suspension by the Contractor as Relevant Events are in the favor to the Contractor. As a recommendation, the relevant parties should organize more seminars or forum regarding Revised Extension of Time (EOT) provision under PAM Contract, to deliver the knowledge of the legal studies of the changes to the construction parties in order to make sure they are aware on the changes in the revised Extension of Time (EOT) clause under PAM Contract.