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PAM Contract 2018 Major Changes from PAM Contract 2006

No. Clause no. Revisions (Major changes only)

1 3.3 Ar & QS must issue contract documents and unpriced BQ within 14
days of award of contract.
2 11.1(d)(v) Included “temporary works” as VO
3 11.5 Contractor to submit VO with complete details to Ar & QS.
QS to inform contractor within 28 days if information is insufficient.
Contractor is to submit additional info within a further 28 days.
With sufficient information, QS to review VO within 30 days.
4 11.6(f) Works under provisional quantities to be re-measured by QS within 60
days after that particular work is done.
5 15.2 Ar to specify which works are incomplete when issuing CNC (certificate
of non-completion).
6 23.4 Ar to give reasons to reject EoT or give details to accompany the cert
of EoT.
7 23.8(e) Contractor does not receive necessary contract documents within 14
days after award of contract = entitled to EoT (if contract documents
affect critical path)
8 24.3(a) Contractor does not receive necessary contract documents within 14
days after award of contract = entitled to loss and/or expense (if
contract documents affect critical path)
9 25.6 Ar & QS to submit final account within 3 months of getting final cost
10 27.14 Omission of any PC sum from the contract and the awarding of any
works related to PC sums are subject to the contractor’s consent. (If
the contractor does not give consent, the works cannot be omitted and
are to be expanded as NSC work so the contractor has control)
11 30.4 When contractor disputes set-off, employer shall only be entitled to set-
off the part of the amount not disputed by the contractor, the amount
that is disputed shall be up to the adjudicator’s decision.
12 30.5 Retention fund is a constant percentage of 5%, of work done &
certified. Limit of retention fund is deleted.
13 35.0 Expert determination (new alternate dispute resolution)
- not governed by legislation
- consensual process agreed by both parties
- specific matters, works under contract only, no legal issues
- can help on determining how many days for EoT, final account,
adequacy of drawing details, etc
- decision is of binding nature
- panel of experts appointed by PAM president, to be set up
soon, but you may find your own expert (both parties agree)
14 36.1 Adjudication is a condition precedent to arbitration for disputes
regarding set off only. Any dispute under set off after CPC shall be
refereed to arbitration.
15 38.1(d) Electronic transmission to be accepted as written notice unless
required under other clauses to provide written notice by
hand/registered post. Under acceptable electronic transmission,
Whatsapp messages accepted if sent by employer’s/contractor’s/Ar/QS
own mobile phone.
16 39.5 Ar must certify breach by contractor before employer takes out
performance bond.
17 39.6 When contractor determines his own employment, the employer shall
return the performance bond within 14 days.