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PERBADANAN KEMAJUAN EKONOMI NEGERI PERLIS

MEMORANDUM OF AGREEMENT
BETWEEN
PKENPs
AND
NRS ASSOCIATES
FOR
DETAILED ENGINEERING DESIGN
FOR
CADANGAN MEMBINA DAN MENYIAPKAN 16 UNIT
KEDAI PEJABAT TIGA TINGKAT DI ATAS PELOT PT
5970-5979 DAN PT5988-5993 KAWASAN TEBUS GUNA
TANAH, MUKIM KUALA PERLIS, PERLIS.

No 173-191, Taman Kemajuan,


Jalan Raja Syed Alwi,
01000 Kangar, Perlis.
Tel: 04 9761 088
Fax: 04 9762 181

A-1-5 Blok A,
Jalan Medan Selayang 1,
Medan Selayang,
68100 Batu Caves, Selangor.
Tel: 03 6186 2934
Fax: 03 6185 5624

CADANGAN MEMBINA DAN MENYIAPKAN 16 UNIT KEDAI PEJABAT TIGA


TINGKAT DI ATAS PELOT PT 5970-5979 DAN PT5988-5993 KAWASAN TEBUS
GUNA TANAH, MUKIM KUALA PERLIS, PERLIS.

TABLE OF CONTENTS
SECTION A
1.
2.
3.
4.

Memorandum of Agreement (Form A Revised 1998)


Letter of Appointment
Letter of Acceptance
Letter to Start Work

SECTION B
1.
2.
5.
6.
7.
8.

Project Team
Breakdown of Fees & Reimbursable Cost
Registration with MOF
Registration with Profesional Board
Govt service Tax Liscene
Companies Commision of Malaysia (Form D)

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MEMORANDUM OF AGREEMENT
This MEMORANDUM OF AGREEMENT is made this _________day of
__________20______
between Perbadanan Kemajuan Ekonomi Negeri Perlis , with an office at No 173-191,
Taman Kemajuan, Jalan Raja Syed Alwi, 01000 Kangar, Perlis (hereinafter called the
PKENPs) of the one part.
AND

NRS ASSOCIATES (Consultant Engineers)

Practising as engineer(s) at

A-1-5 Block A,
Jalan Medan Selayang 1,
Medan Selayang, 68100
Batu caves, Selangor.

(hereinafter called the Consultant Engineer) which expression includes the legal
representatives successors in title and permitted assigns) of the other part.
WHEREAS the PKENPs intends to construct and complete
(description of intended works)
CADANGAN MEMBINA DAN MENYIAPKAN
16 UNIT KEDAI PEJABAT TIGA TINGKAT DI ATAS PELOT PT 5970-5979 DAN
PT5988-5993 KAWASAN TEBUS GUNA TANAH, MUKIM KUALA PERLIS,
PERLIS.
(hereinafter called the Project)
AND WHEREAS the PKENPs is desirous of appointing the Consultant Engineers to
provide professional engineering services in connection with (description of intended
works) CADANGAN MEMBINA DAN MENYIAPKAN 16 UNIT KEDAI PEJABAT
TIGA TINGKAT DI ATAS PELOT PT 5970-5979 DAN PT5988-5993 KAWASAN
TEBUS GUNA TANAH, MUKIM KUALA PERLIS, PERLIS.
(hereinafter called the Works)

NOW IT IS HEREBY AGREED as follows: -3-

1.

The PKENPs hereby appoints the Consultant Engineer to provide the professional
engineering services for the Works subject to and in accordance with the
Conditions of Engagement hereinafter set out and the Consultant Engineer hereby
accepts the appointment for the purpose of providing the professional services for
the same subject to and in accordance with Conditions of Engagement.

2.

This Memorandum of Agreement, the Appendix to the Conditions of Engagement


and the schedule to the Conditions of Engagement (hereinafter called the
Schedule) shall together constitute the Agreement between the PKENPs and the
Consultant Engineer.

3.

For the basic professional services described in Clause 1 of Part A of the Schedule
the PKENPs shall pay the Consultant Engineer in accordance with:
Clause 1(1) of Part B of the Schedule

4.

For the additional professional services not included in basic services described in
clause 2 of Part A of the Schedule the PKENPs shall pay the Consultant Engineer
in accordance with :(i)
(ii)
(iii)

Clause 2 (a) of Part B of the Schedule, and the multiplier shall be 2.7
Clause 2 (b) of Part B of the Schedule, and the multiplier shall be 2.1
Clause 2 (d) of Part B of the Schedule

5.

In addition to the above, the PKENPs shall pay the Consultant Engineer the
payments described in Part C of the Schedule.

6.

The intervals of payment shall be in accordance with Clause 3 of Part B, Schedule


of Fees.

7.

The amount referred to in Clause 5(iv) of the Conditions of Engagement on


variation works shall be RM nil

8.

Estimated fee for Basic Professional Services as prescribed in Clause 3 of


Memorandum
of
Agreement
is
Ringgit
Malaysia
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
___

9.

The whole of the works shall be completed within _________________________

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IN WITNESS WHEREOF the parties hereto have hereunto caused this Agreement
to be duly executed on the day and year first above written.
For and on behalf of
PERBADANAN KEMAJUAN EKONOMI NEGERI PERLIS
By

: .

Name : .
Designation

Departments Seal & Cop

In the present of:


..
Name: ..
Ic No: ...
For and behalf of :
NRS ASSOCIATES
By

: .

Name : .
Designation

Departments Seal & Cop

Registration No with Board of Engineers Malaysia :


Registration No with Ministry of Finance Malaysia: :
In the presence of :
..
Name: ..
Ic No: ...

_______________________________________________________________________
_
Delete if not applicable
-5-

GENERAL CONDITIONS
1.

DEFINITIONS
In this Agreement unless the context otherwise requires, the following expressions
shall have the meanings hereby assigned to them:
Consulting Engineer means the engineer engaged by the PKENPs to perform
the professional services;
Contractor means any person or persons, firm or company under a contract with
the PKENPs to perform the Works or to supply goods in connection with the
Works or both and includes a Sub-Contractor;
Cost of Work includes the cost to the PKENPs of the Works however incurred
(before deduction of any liquidated damages or penalties payable by the
Contractor to the PKENPs); a fair valuation of any labour, material, manufactured
good, machinery or other facilities provided by the PKENPs, and of the full
benefit accruing to the Contractor from the use of construction plant and
equipment belonging to the PKENPs which the PKENPs has required to be used
in the execution of the Works; the market value, as if purchased new, of any
secondhand materials, manufactured goods and machinery incorporated in the
Works; the cost of geotechnical investigations and other investigations related to
the Works; and a fair proportion of the total cost to the the PKENPs of any work
in connection with the provision or diversion of public utilities systems which is
carried out, other than by the Contractor, under arrangements made by the
Consultant Engineer, assessed with reference to the costs incurred by the
Consultant Engineer in making such arrangements. The costs of works shall not
include administrative expenses; costs incurred by the PKENPs under this
Agreement between the Consultant Engineer and the PKENPs interest on capital
during construction, and the costs of raising money required for carrying out the
construction, and the costs of raising money required for carrying out the
construction of the Works; costs of land way-leaves; and price variation arising
from escalation of prices;
Multiplier includes a factors derived from the elements covering annual salary;
fringe benefits including bonuses, Employees Provident Fund and staff saving
funds, subscriptions to professional institutions, leave, medical aid and
insurances, seminars, conferences and workshops; office administrative charges
and expenses including rentals, promotion, training and scholarships, transport
costs, legal and audit fees, bank charges, idle time and profit; but in the case of
site staff recruited specially for the project, the multiplying factor shall be derived
from the elements covering only the annual salary, gratuity, Employees Provident
Fund, medical aid, insurances, overheads and profits only;
Project means the project for which the PKENPs has engaged the
professional services of the Consultant Engineer and of which the Works form a
part;
-6-

Salary Cost means the annual salary of any person employed by the
Consulting Engineer divided by 1,800 (being deemed to the average annual total
of effective working hours of an employee) and multiplied by the number of
working hours spent by such person in performing any of the services in respects
of which payment is to be made to the Consulting Engineer upon the basis of
salary cost; and for the purpose of this definition, the annual salary of a person for
a period of less than a full year shall be calculated pro rata to such persons salary
for such lesser period;
Schedule means the schedule of Fees annexed to these Conditions of
Engagement; and
Works means the works in connection with which the PKENPs have engaged
the Consultant Engineers to perform professional services.
2.

DURATION OF ENGAGEMENT

2.1

The appointment of the Consultant Engineer shall commence from the date of the
Memorandum of Agreement or from the time when the Consultant Engineer shall
have begun to perform for the PKENPs any of the professional services described
in this Agreement, whichever is the earlier.

2.2

The Consultant Engineer shall not, without the consent of the PKENPs, assign the
benefit or in any way transfer the obligation of this Agreement or any part thereof.

2.3

If at any time the PKENPs decides to the Works, the PKENPs shall, by notice in
writing to the Consulting Engineer terminate his appointment under this
Agreement, provided that the PKENPs may, in lieu of so terminating his
appointment require the Consultant Engineer in writing to suspend the carrying
out of his professional services under this agreement for the time being. In such
event, the Consultant Engineer shall be paid in accordance with Clause 6 of Part
of the Schedule.

2.4

If the PKENPs does not have required the Consultant Engineer to resume the
performance of his professional services in respect of the postponed Works within
a period of 12 months from the date of the PKENPs requirement to Consulting
Engineer to suspend the carrying out of his professional services, the Works shall
be considered to have been abandoned and this Agreement terminated.

2.5

If the PKENPs fails to comply with any of its fundamental obligations under this
Agreement, the Consultant Engineer may by not less than sixty (60) days notice
in writing to the PKENPs terminate his appointment under this Agreement,
provided that in lieu of so terminating his appointment, the Consultant Engineer
may :

-7-

(a) Forthwith upon any such failure suspend the carrying out of his professional
services hereunder for a period of sixty (60) days provided that he shall as soon as
practicable inform the PKENPs in writing of such suspension and the reason
thereof;
(b) at the expiry of such period of suspension either continue with the carrying out of
his professional services under this Agreement or, if any of the reasons for the
suspension the remain, forthwith in writing to the PKENPs terminate his
appointment under this Agreement.
2.6

The Consultant Engineer shall immediately notify the PKENPs in writing of any
situation or occurrence of any event beyond the reasonable control of the
Consultant Engineer to carry out his obligations hereunder. If the PKENPs agrees
in writing of any such situation or avert exists, the PKENPs may terminate this
Agreement by giving not less than thirty (30) days written notice and shall pay
such charges due to the Consulting Engineer up to the date of termination of this
Agreement as still outstanding at the time of the situation or event.
In the event of disagreement between the parties as the existence of such situation
or event, the matter shall be submitted to arbitration in accordance with Clause 4.

2.7

The Consultant Engineer shall, upon receipt of any notice or requirement in


writing in accordance with sub-clause (3) or the termination by him of his
appointment in pursuance of Sub- clause (5), proceed in an orderly manner but
with all reasonable speed and economy to take such steps as are necessary to
bring to an end his professional services under this Agreement.

2.8

Unless terminated under this clause the Consultant Engineer appointment under
this Agreement shall terminate when the Consultant Engineer shall issue the
certificate authorizing the final payment to the Contractor. Provided always that in
the event of arbitration or other proceeding after the completion of construction, if
so required by the PKENPs, the Consultant Engineer shall assist the PKENPs in
any manner whatsoever under the same conditions of engagement as are
applicable to this Agreement.

2.9

Notwithstanding any provision in this Agreement, the PKENPs may terminate this
Agreement at any time by giving thirty (30) days written notice and without
assigning any reason.

2.10

Any termination of the Consultant Engineers appointment under this Agreement


shall not prejudice or affect the accrued rights or claims of either party to this
Agreement.
(a) If any accident, failure or other event occurs due to any cause whatsoever to,
in or in connection with the Works or any part thereof either during the
execution of the Works or during the Defect Liability Period/Period of
Maintenance the Consultant Engineer shall immediately report the accident,
failure or event to the PKENPs, and unless otherwise directed by the PKENPs
-8-

generally or in any particular respect, conduct a full investigation into the said
accident, failure or event in order to determine the cause or reason for the
accident, failure or event and submit a report thereon to the PKENPs.
(b) The Consultant Engineer shall not, however, because remedial work to be
carried out in respect thereof until directed to do so by the PKENPs in writing.
And upon being so directed by the Consulting Engineer shall proceed with the
remedial works within fourteen (14) days from the date of such direction.
(c) Where the PKENPs, its employee or any person or body appointed or
authorized by it carries out any investigation in relation to such accident,
failure or event, the Consultant Engineer shall render all such necessary
assistance and facilities as may be required by the PKENPs, its employee or
such person or body, including the giving of access to all specifications,
designs, records and other available information relating to the works.
Nothing in this Sub-clause, and nothing done under this Sub-clause, shall in
any manner be construed as derogating from the liabilities of the Consultant
Engineer under Sub-clauses (a) and (b).
3.

PROPRIETARY RIGHTS OF THE DATUK BANDAR IN DOCUMENTS

3.1

All reports and relevant data such as maps, diagrams, plans, drawings, statistics
and supporting records or materials compiled or prepared in the course of this
agreement shall be the absolute property of the PKENPs throughout their
preparations and at all times thereafter. The Consultant Engineer shall deliver all
these documents to the PKENPs upon the completion or earlier termination of this
agreement. The Consultant Engineer may retain a copy of such documents for his
own record but shall not use any confidential information therein for purpose
unrelated to this Agreement without the prior consent of the PKENPs.

3.2

The Consultant Engineer may with the consent of the PKENPs, which consent
shall not be unreasonably withheld, publish alone or in conjunction with any other
person any article, photograph or other illustration relating to the works.

3.3

The PKENPs reserves the right to make use of all documents including drawings
and specifications relating to the projects at any time it so wishes.

4.

SETTLEMENT OF DISPUTES

4.1

If at any time any question, dispute or difference of opinion shall arise between
and the PKENPs the Consultant Engineer upon or in relation to or in connection
with this agreement or any part thereof either party may forthwith give to the
other notice in writing to the existence of such question, disputes or difference of
opinion and the same shall be referred to the arbitration of a person
to be mutually agreed upon or failing agreement within two (2) months from the
date of the notice then to some person appointed by the president of the Board of
engineers, Malaysia and such reference shall be deemed to be submission under
the Arbitration Act 1952, and any statutory modification or re-enactment thereof
-9-

for the time being and the award of the arbitration shall be final and binding upon
the parties. Pending the award of the arbitration, the Consultant Engineer, upon
being directed by the PKENPs at any time, shall continue to perform the
remaining part of the services in accordance with the programme as set out in the
work schedules and no payment the liability for which is not in issue or
contingent upon the result of the proceedings shall be withheld on account of such
proceedings.
4.2

The arbitration shall be held t the Regional Centre for Arbitration at Kuala
Lumpur using the facilities and assistance available at the Centre.

5.

OBLIGATIONS OF CONSULTING ENGINEER

5.1

The Consultant Engineer shall exercise all reasonably skill, care and diligence in
the discharge of his professional services. If in the performance of his
professional services the consulting Engineer has discretion exercisable as
between the PKENPs and the Contractor, the Consultant Engineer shall exercise
his discretion fairly.

5.2

The Engineer shall not divulge any confidential information communicated to or


acquired by him in the course of carrying out the work, duties and obligations
under the terms of this agreement. Such information shall not be used by the
Consultant Engineer on other projects without the written approval of the
PKENPs.

5.3

The Consultant Engineer shall not have any direct or indirect interest in any of the
construction or supply contracts for the Works that are the subject of this
agreement without first divulging his interest to the PKENPs and obtaining the
written consent of the PKENPs.

5.4

Except as the PKENPs shall otherwise specifically agree in writing, the


Consulting Engineer shall not permit his staff or subsidiary or associates to
engage in any activities related to the project other than the specified professional
services.

5.5

The Consultant Engineer shall not accept any tender in respect of the Work unless
shall the have given him instruction in writing to do so, and any acceptance so
made by the Consultant Engineers on the instructions of the PKENPs shall be on
behalf of the PKENPs.

5.6

The Consultant Engineer shall not without the prior written approval of the
PKENPs give any instruction which in the opinion of the Consultant Engineer is
likely to increase the cost of the works by more than that stated in Clause 7 of the
Memorandum of agreement unless the variations are of an emergency nature and
any delay in carrying such variations works can cause claims against the PKENPs
or involve danger to life and property and in the circumstances it is impracticable
for the Consultant Engineers to obtain such approval. In such circumstances, the
Consulting Engineer shall seek the approval of the PKENPs as soon as possible of
such variation works.

5.7

The Consultant Engineer shall obtain the written consent of the client before
commencing his basic and additional services as specified herein.
- 10 -

6.

REQUIREMENT FOR ADDITIONAL PROFESSIONAL SERVICES


The Consultant Engineer, whenever he sees fit, shall advise the PKENPS as to the
need for the PKENPs to be provided with any of the additional professional
services not included in the basic services as described in clause 2 of Part A of the
Schedule.

7.

ARRANGEMENTS FOR ADDITIONAL PROFESSIONAL SERVICES AND


FEES.
Where any of the professional services described in clause 2(b) of Part A of the
schedule are in the opinion of the Consultant Engineer shall obtain the prior
agreement of the PKENPs to the arrangements which he proposes to make on the
PKENPs behalf for the provision of such professional services. The PKENPs shall
be responsible to any person providing such professional services for the cost
thereof. The fees for such professional services shall be the fees to be agreed upon
between the PKENPs and the Consultant Engineer.

8.

SUPERVISION ON SITE

8.1

If in the opinion of the Consultant Engineer the nature of the Works, including the
carrying out of any geotechnical investigation pursuant to clause 1(a) (iii) of Part
A of the Schedule, warrants full time or part-time engineering supervision on site
the PKENPs shall not unreasonably object to the appointment of such site staff.

8.2

Persons appointed pursuant to Sub-clause (1) shall be either employed by the


Consultant Engineer or, if the PKENPs and the Consultant Engineers shall so
agree, provided by the PKENPs directly.

8.3

The terms of services of all site staff to be employed by the Consultant Engineer
shall be subject to the approval of the the PKENPs, which approval shall not be
unreasonably withheld.

8.4

The PKENPs shall ensure that the Contracts of employment of site staff employed
by the PKENPs shall stipulated that the person employed shall act upon
instructions of the Consultant Engineer with regards to all matters connected with
the execution of the Works under the administration of the Consultant Engineer.

8.5

Site inspection visits by the Consultant Engineer as describes in Clause 1(d) (vii)
of part A of the Schedule are entirely distinct from the continuous and or detailed
Supervision which would be secured by the employment of full-time and part
time engineering supervisors on the site.

8.6

Only the Consultant Engineer or his representative shall have authority to give
instructions to the Contractor, resident engineer, superintending engineer, clerk of
work and/or inspectors with regard to all matters connected with the execution of
- 11 -

the Works under the administration of the Consultant Engineers. All instruction
from the the PKENPs shall be given to the Consultant Engineer or his
representative.
9.

DELIVERY OF DOCUMENTS TO DBKL ON TERMINATION BY THE


CONSULTANT ENGINEER
In the event of the termination of this agreement by the Consultant Engineer and
upon the payment of the sums determined under Clause 7 of part C of the
schedule, the Consultant Engineer shall deliver to the the PKENPs such
completed drawings, specifications and other similar documents relevant to the
Works as are in the possession of the Consultant Engineers who shall be permitted
to retain copies of any documents so delivered to the the PKENPs

10.

OBLIGATIONS OF THE PKENPs

10.1

PKENPs shall, upon request, supply to the Consultant Engineer, without charge
and within a reasonable time, all necessary and relevant data and in information in
the possession of the PKENPs and shall give such assistance as shall reasonably
be required by the Consultant Engineer in The Performance of his professional
services under this Agreement.

10.2

Any data, report, map, photograph, plan drawing, record or information given or
forwarded by the PKENPs to the Consultant Engineers shall not relieve the
Consultant Engineer of his obligation under Clause 5(1). The PKENPs gives no
warranty in any manner whatsoever for the data, report, map, photograph, plan,
drawings, record or other information either as to the accuracy or sufficiency or as
to how the same should be interpreted and the Consultant Engineer, when makes
use of and interprets the same, shall do so entirely at his own risk and shall not
constitute a breach of obligation on the part of the PKENPs under Sub-clause (1)
is such data, reports, map, photograph, plan, drawings, record and information is
not accurate or sufficient for the purpose of performing the Consultant Engineers
obligations under this Agreement.

10.3

The PKENPs shall gives its decision on all sketches, drawings, reports,
recommendations, tender documents and matters properly referred to it for
decision by the Consultant Engineer in such reasonable time so as not to delay or
disrupt the performance by the Consultant Engineer of his professional services
under this Agreement.

11.

TYPES OF SERVICES AND PAYMENTS

11.1

The Consultant Engineer may be engaged for the performance of any or all of the
professional services in Part A of the schedule.

- 12 -

11.2

The fees applicable to the relevant professional services rendered by the


Consultant Engineer shall be as described in Part B and Part C of the schedule.

11.3

Where professional services of the Consultant Engineer are rendered, the


Consultant Engineer shall be paid in accordance with either Clause 1(1), 1(2),
1(3) of Part B of the Schedule.

11.4

Whenever payment is made on the basis of salary cost times multiplier as


described in Clause 1(3) of part B of the Schedule, the Consultant Engineer shall
submit to the PKENPs at the Time of Submission of the Monthly Accounts such
supporting data as may be required by the PKENPS.

11.5

For the purpose of determining the payment due to the Consultant Engineer under
Clause 6(1) (a) of part C of the Schedule following the termination or suspension
by the PKENPs of the Works in which it is necessary to access the payment to be
made by reference to the cost of the Works, then to the extent that such cost is not
known, the assessment shall be made upon the basis of the Consultant Engineer
best estimates of cost to be agreed to by the PKENPs.

11.6

Where the Consultant Engineer is of the opinion that site staff should not be
appointed, or where the necessary site staff is not available at site due to sickness
or any other reasonable cause, the Consultant Engineer, shall subject to Clause
1(3) of Part B of the schedule be paid in accordance with Clause 2 of part B of the
Schedule for site visits which would have been unnecessary but the absence or
non-availability of site staff.

11.7

All sums due to the Consultant Engineer in accordance with the terms of this
agreement, unless the Consultant Engineer of his accounts shall pay disputes by
the PKENPs, within forty two (42) days of the submission to the PKENPs.

11.8

If any item or part of any item of an account rendered by the Consultant Engineer
is disputed or subject to question by the PKENPs the payment by the PKENPs in
respect of the undisputed amount shall not be withheld on those grounds and
provision of Sub-clause (7) shall apply to such amount.

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PART A
PROFESSIONAL SERVICES
1.(1)

BASIC SERVICES
Basic Professional Services (for civil and structural engineering works other
than structural engineering works in buildings, mechanical engineering
works and electrical engineering works other than the engineering systems in
buildings)
The professional services to be rendered by the Consultant Engineer in this clause
include the provision of all expert technical advice and skills, which are normally
required for the Class of Works for which the Consultant Engineer has been
engaged.
(a) Preliminary Stage
The professional services to be provided by the Consultant Engineer at this stage
include :(i)

investigating data and information relevant to the Works and considering


any report relating to the Works;

(ii)

advising the PKENPs on making any further topographical survey of the


proposed site of the Works which may be necessary to supplement
available topographical information;

(iii)

advising the PKENPs on the need to carry out any geotechnical


investigation which may be necessary to supplement the available
geotechnical information, arranging for such investigation, certifying the
amount of any payment to be made by the PKENPs to the persons, firms
or companies carrying out such investigation under the Consultant
Engineer direction, and advising the PKENPs on the results of such
investigation;

(iv)

Advising the PKENPs on the need for arrangements to be made, in


accordance with Clause 2 of this Part, for the carrying out of special
surveys, special investigations or model tests and advising the PKENPs of
the results of any such surveys, investigations or tests carried out;

(v)

consulting any local or other approving authorities on matters of principle


in connection with the works.

- 14 -

(vi)
(vii)

consulting any architect appointed by the client in connection with the


architectural treatment of the works: and
preparing such reports and documents as are reasonably necessary to
enable the PKENps to consider the Consultant Engineer proposals,
including alternatives for the construction of the Works in the light of the
investigations carried out by him at this stage, and to enable the PKENPs
to apply for approval in principle for the execution of the Works in
accordance with such proposals from the appropriate authorities.

(b)

Design Stage
The professional services to be provided by the Consultant Engineer at
this stage comprise all or any of the following as may be necessary in
particular case:

(i)

preparing designs including reinforced concrete and structural steel works


designs, and tender drawings in connection with the works: and

(ii)

preparing such conditions of contract, specifications, schedule and bills of


quantities as may be necessary to enable the PKENPs to obtain tenders or
otherwise award a contract for carrying out the Works.

(c)

Tender Stage
The professional services to be provided by the Consultant Engineer at
this stage include advising the PKENPs as to the suitability for carrying
out the Works of the person, firms or companies tendering and as to the
relative merits of tenders, including relative merit of alternative tenders,
prices and estimates received for carrying out the Works.

(d)

Construction Stage
The professional services to be provided by the Consultant Engineer at
this stage include:-

(i)

advising on and preparing normal contract document, including Letter of


Acceptance for carrying out the Works or part thereof:-

(ii)

inspecting and testing during manufacture and installation such electrical


and mechanical materials, machinery and plant supplied for incorporation
in the Works as are usually inspected and tested by the Consultant
Engineer, and arranging and witnessing acceptance tests;

(iii)

advising the PKENPs on the need for special inspection or testing other
than that referred to in Sub-clause (ii);

- 15 -

1.(2)

(iv)

advising the PKENPs on the appointment of site staff in accordance with


Clause 3 of this Part;

(v)

preparing any further designs and drawings relating to the works:

(vi)

examining and approving the Contractors proposal and workings


drawings;

(vii)

making such visits to site as the Consultant Engineer considers necessary


to satisfy himself as to the performance of any site staff appointed
pursuant to Clause 3 of this Part and to satisfy himself that the Works
executed generally according to the contract and otherwise in accordance
with good engineering practice;

(viii)

giving all necessary instructions to the Contractor;

(ix)

issuing all certificates as required in the contract;

(x)

performing any duties which the Consultant Engineer may be required to


carry out in any contract for the execution of the Works;

(xi)

delivering to the PKENPs on the completion of the works such records


and manufacturers manuals as are reasonably necessary to enable the
PKENPs to operate and maintain the works; and

(xii)

deciding any dispute or difference arising between the PKENPs and the
Contractor referred to the Consultant Engineer for his decision provided
that this professional service shall not extend to advising the PKENPs
following the taking of any step in or towards any arbitration or litigation
in connection with the Works.

Basic Professional Services (for structural engineering works in buildings)


The professional services to be rendered by the consulting engineer in this
paragraph comprise the provision of all technical advice and skills which are
normally required for the works for which the consultant engineer has been
engaged.

(a)

Preliminary Stage
The professional services to be provided by the consultant engineer at this stage
comprise all or any of the following as may be necessary in a particular case:

(i)

investigating data and information relevant to the works and considering any
reports relating to the works;

(ii)

advising the PKENPs on making any further topographical survey of the proposed
site of the works which may be necessary to supplement available topographical
information;
- 16 -

(iii)

advising the PKENPs on the need to carry out any geotechnical investigation
which may necessary to supplement the available geotechnical information,
arranging for the investigation, certifying the amount of any payments to be made
by the PKENPs to the persons, firms or companies carrying out the investigation
under the consultant engineer direction, and advising the PKENPs on the results
of such investigation;

(iv)

advising the PKENPs on the need for arrangements to be made, in accordance


with subparagraph 2(2) of this Part, for the carrying out of special surveys, special
investigations or model tests and advising the PKENPs of the results of any the
surveys, investigations or tests carried out;

(v)

consulting any local or other approving authorities on matters of principle in


connection with the works

(vi)

consulting the architect appointed by the PKENPs


architectural treatment of the works

(vii)

providing sufficient structural information to enable the architect to produce his


sketch plans; and

(viii)

preparing such reports and documents as are reasonably necessary to enable the
PKENPs to consider the consultant engineer proposals, including alternative
proposals, for the construction of the works in the light of the investigations
carried out by him at this stage, and to enable the PKENPs to apply for approval
in principle from the appropriate authorities for the execution of the works in
accordance with the proposals.

(b)

Design Stage

in connection with the

The professional services to be provided by the consultant engineer at this stage


comprise all or any of the following as may be necessary in a particular case:
(i)

developing the design of the works in collaboration with the architect and others,
preparing calculations, drawings and specifications for the works to enable a bill
of quantities to be prepared by others, consulting any local or other approving
authorities in connection with the design of the works, and preparing typical
details and calculations; and

(ii)

preparing such calculations and details relating to the works as may be required
for submission to any appropriate authority, preparing all other drawings in
sufficient details to enable construction to be carried out, and advising on
conditions of contract and specifications relevant to the works and on forms of
tender and invitations to tender invitations to tender as they relate to the works.

(c)

Tender Stage
The professional services to be provided by the consulting engineers at this stage
comprise advising the PKENPs as to the suitable for carrying out the works of the
persons, firms or companies tendering and as to the relative merits of
- 17 -

tenders, but excluding relative merits of alternative tenders, prices and estimates
received for carrying out the works.

(d)

Construction Stage

The professional services to be provided by the consultant engineer at this stage comprise
all or any of the following as may be necessary in a particular case:
(i)

advising on the preparation of formal contract documents relating to


accepted tenders for the works;

(ii)

advising the PKENPs on the appointment of site staff in accordance with


paragraph 3 of this Part;

(iii)

preparing any further designs, specifications and drawings to enable the


contractor to carry out the works but shall not include the preparation of
any shop details relating to the works or any part of them;

(iv)

examining and approving the contractors proposals and working drawings


relating to the works;

(v)

checking shop details for general dimensions and adequacy of members


and connections;

(vi)

approving the contractors testing procedures and inspecting the works on


completion;

(vii)

advising the PKENPs or the architect as to the need to vary any part of the
works;

(viii)

making such visits to site as the consulting engineer considers necessary to


satisfy himself as to the performance of any site staff appointed pursuant
to paragraph 3 of this Part and to satisfy himself that works are executed
generally according to contract or otherwise in accordance with good
engineering practice;

(ix)

giving all necessary instructions relating to the works to the contractor ;

(x)

advising on certificates of payment to the contractor;

(xi)

inspecting and testing during manufacture and installation such materials


supplied for incorporation in the works as are necessary where the
inspection and test are within the technical competence of the consulting
engineer, and arranging and witnessing the acceptance tests;

(xii)

performing any duties which the consultant engineer may be required to


carry out under any document which he has prepared for the execution of
the works;
- 18 -

(xiii)

advising the PKENPs on the need for special inspection or test other than
that referred to in sub-sub-subparagraph I (2)(d)(xi) of this Part;

(xiv)

advising the PKENPs on the need for special inspection or test other than
manufacturers manuals as are reasonably necessary to enable the
PKENPs to operate and maintain the works; and

(xv)

delivering any dispute or difference arising between the PKENPs and the
contractor in connection with the works and submitted to the consulting
engineer for his, decision, provided that this professional service shall not
extend to advising the PKENPs following the taking of any step in or
towards any arbitration or litigation in connection with the works.

1. (3) Basic Professional Services (for engineering systems in buildings)


The professional services to be rendered by the consulting engineer in this
paragraph comprise the provision of all technical advice and skills which are
normally required for the works for which the consulting engineer has been
engaged.
(a)

Preliminary Stage
The professional services to be provided by the consulting engineer at this stage
comprise all or any of the following as may be necessary in a particular case:
(i)

consulting any local other approving authorities on matters of principle in


connection with the design of the works;

(ii)

providing sufficient preliminary information and approximate estimates


based on unit volume, unit surface area or similar bases of estimation)
regarding the works to enable the PKENPs or the architect to prepare
architectural sketch plans and budget estimates for the project;

(iii)

investigating data information relevant to the works and considering any


reports relating to them;

(iv)

consulting the architect and other appointed by the PKENPs in connection


with the architectural treatment of the works; and

(v)

preparing such reports and documents as are necessary to enable the


PKENPs to consider the consultant engineer proposals, including the
alternative proposals for the installation of the works in the light of the
investigations carried out by him at this stage, and to enable the PKENPs
to apply for approval in principle from the appropriate authorities for the
execution of the works in accordance with the proposals.

- 19 -

(b)

Design Stage
The professional services to be provided by the consulting engineer at this stage
comprise all or any of the following as may be necessary in a particular case:

(c)

(i)

preparing designs and tender drawings, and providing information as to


plant rooms, main service ducts and other similar elements to be
incorporated in the building structure, and information as to the
approximate weights of items of heavy plant and equipment which are to
be incorporated in the works; and

(ii)

advising on conditions of contract, preparing specifications and schedules


as may be necessary to enable the PKENPs to obtain tenders or otherwise
award a I contact for carrying out the works, and preparing such
calculations and details relating to the works as may be required for
submission to any appropriate authorities.

Tender Stage
The professional services to be provided by the consulting engineer at this stage
comprise advising the PKENPs as to the suitability for carrying out the works of
the persons, firms or companies tendering and as to relative merits of tenders, but
excluding relative merits of alternative tenders, price and estimates received for
carrying out the works.

(d)

Construction Stage
The professional services to be provided by the consultant engineer at this stage
comprise all or any of the following as may be necessary in a particular case:
(i)

advising on the preparation of formal contact documents relating to


accepted tenders for carrying out the works or any part of them

(ii)

advising the PKENPs on the appointment of site staff for the purpose of
paragraph 3 of this Part;

(iii)

providing the contractor with such further information as are necessary, in


the opinion of the consulting engineer, to 1 enable the installation
drawings to be prepared;

(iv)

examining the contractors proposals;

(v)

making such visits to the site as the consulting engineer considers


necessary to satisfy himself as to the performance of any site staff
appointed pursuant to paragraph 3 of this Part and to satisfy himself that
the works are executed generally according to his designs and
specifications or otherwise in accordance with good engineering practice;
- 20 -

2.(1)

(vi)

checking shop details and installation drawings;

(vii)

giving all necessary instructions to the contractor;

(viii)

advising the PKENPs or the architect as to the need to vary part of the
works;

(ix)

approving the contractors commissioning procedures and performance


tests and inspecting the works on completion;

(x)

advising on interim valuation, issuing certificates for payment to the


contractor where appropriate and advising on the settlement of the
contractors final accounts;

(xi)

performing any services which the consulting engineer may be required to


carry out under any document which he has prepared in relation to the
works;

(xii)

delivering to the PKENPs on completion of the works, copies of records


drawings, contractors operating instructions, manufacturers manuals, and
where appropriate, the certificate of works tests, and arranging for the
delivery of spares and tools, if necessary;

(xiii)

deciding any dispute of difference arising between the PKENPs and the
contractor in connection with the works and submitted to the consulting
engineer for his decision, provided that this professional service shall not
extend to advising the PKENPs following the taking of any step in or
towards any arbitration or litigation in connection with the works;

(xiv)

inspecting and testing during manufacture and installation such materials


and equipment supplied for incorporation in the works where the
inspection and test are within the technical competency of the consulting
engineer, and arranging and witnessing acceptance tests; and

(xv)

advising the PKENPs on the need for special inspection or test other than
that referred to in sub-sub-subparagraph 1(3)(d)(xiv) of this Part.

Additional Professional Services Not Included In Basic Services (for civil and
structural engineering works other than structural engineering works in
buildings, and mechanical engineering works and electrical engineering
works other than engineering systems in buildings)
The additional professional services to be provided by the consulting engineer, if
requested or consented to by the PKENPs, include the following:

(a)

(i)

preparing any report other additional documents required for consideration


of proposals for the carrying out of alternative works;

- 21 -

(ii)

carrying out work consequent upon a decision by the PKENPs to seek or


comply with amendments to existing laws affecting the works;

(iii)

carrying out work in connection with any application made by the


PKENPs for any order, sanction, license, permit or other consent, approval
(not including the normal approval required from the relevant technical
authorities, such as building authorities, water-works authorities,
electricity authorities and telecommunications authorities) or authorization
necessary to enable the works to proceed;
(iv)carrying out work arising from the failure of the PKENPs to award a
contract in due time;

(b)

2.(2)

(v)

preparing details for shop fabrication of ductwork, metal, plastic and


timber framework;

(vi)

carrying outwork consequent upon any abandonment of a contract by the


contractor or upon the failure of the contractor to properly perform any
contract or upon delay by the PKENPs in fulfilling his obligations or in
taking any other step necessary for the due execution of the works;

(vii)

carrying out work in conjunction with others employed to provide any of


the services specified in sub-subparagraph 2(1)(b) of this Part;

(viii)

providing project management services; and

(ix)

carrying out such other additional services, if any, as are specified in the
Memorandum of Agreement.

(i)

obtaining specialist technical advice on any abnormal aspects of the


works;

(ii)

obtaining architectural, legal, cost consultancy, financial and other


professional services;

(iii)

providing services in connection with the valuation, purchase, sale or


leasing of land and the obtaining of wayleaves;

(iv)

carrying out of marine, air and land surveys other than those referred to in
sub-sub-subparagraph 1(1)(ii) of this Part and making model tests or
special investigations; and

(v)

carrying out special inspection or test advised by the consulting engineer


under sub-sub-subparagraph 1(1)(d)(iii) of this Part.

Additional Professional Services Not Included In Basic Services (for


structural engineering works in building)
The additional professional services to be provided by the consulting engineer, if
requested or consented to by the PKENPs, include the following:
- 22 -

(a)

(b)

2.(3)

(i)

preparing any report or other additional documents required for


consideration of proposals for the carrying out of alternative works;

(ii)

carrying out work consequent upon a decision by the PKENPs to seek or


comply with amendments to existing laws affecting the works;

(iii)

carrying out work in connection with any application made by the


PKENPs for any order, sanction, license, permit, consent

(iv)

checking and advising on any part of the project not designed by the
consulting engineer;

(v)

carrying and advising on any part of the project not designed by the
consulting engineer;

(vi)

carrying out work arising from the failure of the PKENPs to award a
contract in due time;

(i)

obtaining specialist technical advice on any abnormal aspects of the


works;

(ii)

surveying the site or existing works and installations;

(iii)

providing investigation on the nature and strength of existing works and


the making of model tests or special investigations;

(iv)

providing services in connection with the valuation, purchase, sale or


leasing of land and the obtaining of wayleaves;

(v)

carrying out marine, air and land surveys and making model tests or
special investigations; and

(vi)

carrying out special inspection or test advised by the consultant engineer


under sub-sub-subparagraph 1(2)(d)(xiii) of this Part.

Additional Professional Services Not Included In Basic Services (for


engineering systems in building)
The additional professional services to be provided by the consultant engineer, if
request or consented to by the PKENPs, include the following:

(a)

(i)

preparing any report or other additional documents required for


consideration of proposals for the carrying out of alternative works;

(ii)

carrying out work consequent upon a decision by the PKENPs to seek or


comply with amendments to existing laws affecting the works;

- 23 -

(iii)

carrying out work in connection with any application made by the


PKENPs for any order, sanction, license, permit, consent, or other
approval
(not including the normal approval required from the relevant technical
authorities such as building authorities, waterworks authorities, electricity
authorities and telecommunications authorities), or authorization
necessary to enable the works to proceed;

(iv)

checking and advising upon any part of the project not designed by the
consultant engineer;

(v)

negotiating and arranging for the provision or diversion of utility services;

(vi)

negotiating any contract or sub-contract with a contractor selected


otherwise than by competitive tendering including checking and agreeing
on the quantities and nett cost of materials and labour, arithmetical
checking and agreeing on the added percentages to cover overhead cost
and
profit;

(vii)

carrying out work arising from the failure of the PKENPs to award a
contract in due time;

(viii)

carrying out work consequent upon any abandonment of a contract by the


contractor or upon the failure of the contractor to properly perform any
contract or upon delay by the PKENPs in fulfilling his obligations or in
taking any other step necessary for the due execution of the works;

(ix)

carrying out special cost investigations or detailed valuations including


estimates or cost analysis based on measurement or forming an element of
cost planning service;

(x)

providing manuals and other documents describing the design, operation


and maintenance of the works;

(xi)

advising the PKENPs and carrying out work following the taking of any
step in or towards any litigation or arbitration relating to the works;

(xi)

carrying out work in conjunction with any other persons employed to


provide any of the services specified in sub-subparagraph 2(3)(b) of this
Part;

(xiii)

providing project management services;

(xiv)

preparing builders work drawings, records drawings or any detailed


schedules where necessary; and

(xv)

carrying out such other additional services, if any, as are specified in the
Memorandum of Agreement;
- 24 -

(b)

(i)

obtaining specialist technical advice on any abnormal aspects of the


works;

(ii)

obtaining architectural, legal, cost consultancy, financial and other


professional services;

(iii)

3.

surveying the site or existing works and installations;


(iv)

carrying out special inspection or test advise by the consulting engineer


under sub-sub-subparagraph 1(3)(d)(xv) of this Part; and

(v)

carrying out commissioning procedures or performance tests.

Supervision On Site
(1)

Unless otherwise agreed to by the approving authorities concerned, the


consultant engineer shall be in full control of, and be responsible for,
construction supervision of the works on site.

(2)

If in the opinion of the consultant engineer the nature of the work


including the carrying out of any geotechnical and other investigations,
topographic survey, and tests warrants full-time or part-time supervision
on site in addition to the site visits made by the consultant engineer under
to sub-sub-subparagraphs 1(1)(d)(vii), 1(2)(d)(viii) and 1(3)(d)(v) of this
Part, whichever is applicable, he shall advise the PKENPs of the fact and
also the desired qualification and experience which the site staff shall
possess.

(3)

All site staff shall be under the control of, and take instruction from, the
consultant engineer only.

- 25 -

PART B
SCALE OF FEES
1.

Scale Of Fees For Basic Professional Services


The consultant engineer in performing the professional services described in
subparagraphs 1(1), 1(2) and 1(3) of Part A shall be paid in accordance with only
one of the following modes or remuneration as described in subparagraphs 1(1)
and 1(2) of this Part.
(1)

Payment Depending Upon the Cost Of The Works


(a) The fee to be paid to the consultant engineer shall be an amount equal
to the product of the total cost of the works times the percentage
determined from the Scale of Fees set out in sub-subparagraph I(I)(b)
of this Part.
(b) The Scale of Fees referred to in sub-subparagraph I(I)(a) of this Part
shall be as follows:
Total Cost Of Components Of The
Works In The Respective Type in RM P (max)

P (min)

100,000 & below


250,000
500,000
1,000,000
2,500,000
5,000,000
10,000,000
20,000,000
25,000,000
50,000,000
75,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000,

8.25%
7.45%
6.85%
6.30%
5.65%
5.20%
4.75%
4.25%
4.10%
3.80%
3.70%
3.60%
3.40%
3.25%
3.10%
3.00%
2.90%

10.00%
8.65%
7.60%
6.80%
6.00%
5.50%
5.00%
4.65%
4.50%
4.25%
4.10%
3.95%
3.70%
3.55%
3.40%
3.30%
3.20%

- 26 -

Total Cost Of Components Of The


Works In The Respective Type in P (max)
RM

P (min)

400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
900,000,000
1,000,000,000 & above

2.80%
2.70%
2.60%
2.50%
2.40%
2.33%
2.28%

3.10%
2.95%
2.85%
2.75%
2.67%
2.60%
2.54%

Intermediate values shall be interpolated linearly from the adjacent


percentages of P (max or P (min), as the case may be.
The actual percentage to be used in sub-subparagraph 1(1)(a) of
this Part shall be a value within the range P (min) to P (max), and
shall be agreed to between the PKENPs and the consultant
engineer prior to the engagement. Selection of the actual
percentage shall be based on the complexity of the works.
(c)

If bar bending schedules for reinforced concrete work are prepared


and furnished by the consultant engineer he shall be paid an
additional fee calculated at (three quarters) percent of the cost of
the reinforced concrete work for which the bar bending schedules
are prepared and furnished. In this context, reinforced concrete
work comprises concrete, reinforcements, prestressing tendons and
anchorages, formwork, inserts and all labor, together with the
relevant portion of the preliminaries.

(d)

If the works are to be constructed in more than one phase and as a


consequence the services which the consultant engineer has to
perform under subparagraphs 1(1), 1(2) and 1(3) of Part A have to
be undertaken by the consultant engineer separately in respect of
each phase, then these provisions for payment shall apply
separately to each phase as if the expression the works as used in
this paragraph means the works comprised in each phase.

(e)

If the design of any unit of works is adopted again in the


construction of subsequent units by the same client under one
works contract or under other works contracts at the same site or
other sites under the same consultancy agreement, and the
consultant engineers same drawings, specifications and other
documents are used with or without modification of foundations to
- 27 -

suit site conditions, the fees shall be reduced for each of the second
and subsequent units in accordance with the following Tables A or
B:

Unit
Concerned

First Unit

Fees as % of the full fee for all stages for First Unit
For
design Up
to
& Up to & including
copyright
including tender construction stage
only
stage

(Apply subparagraph 1(1) or 1(2) of this Part,


whichever is applicable)

Second Unit

30

35

65

Third Unit

20

25

55

Fourth Unit

10

15

45

Each of the
fifth
and
Subsequent
Units

Free of
charge

35

Unit Concerned

Fee A for Structural Fee B for Engineering


engineering Works (As Systems (As % of fee
% of fee for First Unit)
for First Unit)

First Unit

100

100

Each of the
Second to Fifth
Units

75

75

Each of the Sixth


to Tenth Units

50

50

40

40

30

30

Each of the
Eleventh
to
Twentieth Units
Each of the
Twenty First &
Subsequent
Units

- 28 -

(f)

(2)

The scale of fee for repetitive work mentioned in sub-subparagraph 1(1)(e) of this
Part shall be applied subject to the following conditions:
(i)

a block of shops, flats, apartments or condominium shall be considered as


a unit;

(ii)

the cost of a single unit shall be computed by including the apportioned


preliminaries;

(iii)

if it is necessary to modify the design of the standard unit to accommodate


the ground level for the substructure of any repetitive unit or part of any
repetitive unit due to variation in site conditions or other reasons, the
modified unit shall still be considered as a repetitive unit provided that the
additional work involved in modifying the design and preparation of
additional drawings is paid for by the PKENPs to the consultant engineer
on a time basis (i.e salary cost times a multiplier) together with relevant
disbursements as provided in paragraphs 2 and 3 of Part C; and

(iv)

if a development has units comprising different numbers of shops, flats,


apartments or condominiums of similar designs in each unit (i.e. the
intermediate shops, flats, apartments or condominiums of the units having
identical or mirror plans each to each), then for the proposed of
application of the Scale for repeated works prescribed in sub-subparagraph
1 (1)(e) of this Part, the cost of every one of the units shall be taken as
equal to the average cost of all such units of similar design including
apportioned preliminaries.

Payment On The Basis Of Salary Cost Times Multiplier


(a)

In respect of the provision by the consultant engineer of professional


Services described in the following paragraphs:
Subparagraphs 1(1), 1(2)
And 1(3) of Part A

Basic Professional Services

Subparagraphs 2(1), 2(2)


And 2(3) of Part A

Additional Professional Services


Not Included In Basic Professional
Services

Part C

Other Payments,

The consultant engineer shall be paid:


(i)

salary cost times the multiplier in respect of the time-5 spent in


providing the services by partners, consultants, and technical
supporting staff; and
- 29 -

(ii)

the fee for the use of computers or other special equipment under
paragraph 1 of Part C.

(b)The consultant engineer shall not be entitled to any payment in respect of time
spent by secretarial staff or by staff engaged on general accountancy or
administration duties in consultant engineers office.
3.

Scale Of Fee Additional Professional Services Not Included In Basic Services


Payment For additional Services
The consultant engineer who has tendered any of the additional professional
services described in subparagraphs 2(1), 2(2) and 2(3) of Part A shall be paid in
accordance with the following scale of fees:
(a) the input of partners and consultants shall be paid for at the hourly rate or
rates agreed between the PKENPs and the consultant engineer or at rates
derived from the salary cost times the appropriate multiplier:
(b) the input of technical and supporting staff shall be paid for at the rates derived
from the salary cost times the appropriate multiplier;
(c) the time spent by partners, consultants, technical and supporting staff in
traveling in connection with Additional Professional Services shall be paid for
as provided in subparagraphs 2(a) and 2(b) of this Part;
(d) consultant engineer shall not be entitled to any payment in respect of time
spent by secretarial staff or by staff engaged on general accountancy or
administration duties in the consultant engineer office;
(e) if the consultant engineer has obtained the advice of a specialist under subsubparagraphs 2(1)(b), 2(2)(b) and 2(3)(b) of part A, the consultant engineer
shall be paid by the PKENPs a coordinating fee of 5% of the specialist fee
paid to the specialist by the PKENPs provided that such coordinating fee shall
not be applicable when the method of payment for the professional services
rendered is agreed between the consultant engineer and the PKENPs to be as
described in subparagraph 1(2) of this Part.

4.

Stages of Payment of Fees


The proportions of the total fee for the works to be paid to the consultant engineer
against the relevant stages of professional services shall be as follows:

1. Preliminary Stage
2. Design Stage (i)
3. Design Stage (ii)
4. Tender Stage
5. Construction Stage

Alternative
1*

Alternative
2*

Alternative
3*

5%
15%
20%
5%
40%

20%
35%
20%
5%
15%

20%
35%
20%
5%
20%
- 30 -

6. Certificate of Fitness
7. Defect Liability Period
8. Final Account

5%
5%
5%

Unless otherwise specified or mutually agreed beforehand between the PKENPs


and the consultant engineer, the fee apportioned to each stage shall be paid in full
even if, under the circumstances in a particular case, the consultant engineer is not
required to perform some of the professional services listed under that stage in
Part A.

- 31 -

PART C
OTHER PAYMENTS
1.

Payment for Use of Computer or Other Special Equipment


If the Consultant Engineer is to be paid by the PKENPs:(a) in accordance with subparagraph 1(2) of Part B for the performance for his
basic professional services described in subparagraphs 1(1), 1(2) and 1(3) of
Part A or of any additional professional services described in subparagraphs
2(1), 2(2) and 2(3) of Part A; or
(b) in accordance with subparagraph 1(1) of Part B for the performance of his
basic the professional services described in subparagraphs 1(1), 1(2) and 1(3)
of Part A and with subparagraph 1920 of Part B for the performance of any
additional professional services described services subparagraphs 2(1), 2(2)
and 2(3) of Part A,
and in both instances computers or other special equipment had been utilized
for specialized designs and studies with the prior approval, or at the request,
of the PKENPs, the Consultant Engineer shall be paid for :-

2.

(i)

the time spent in connection with the use of the computers or other special
equipment, the development and writing of programs, and the operation of
the computers and other special equipment in trial and final runs, in
accordance with subparagraph 1(2) of Part B, whenever applicable, or in
accordance with the scale of fees described in subparagraph 2 of Part B;
and

(ii)

the actual hiring charge for the use of the computers or other special
equipment.

Disbursement
The Consultant Engineer shall in all cases be reimbursed by the the PKENPs for
the disbursement actually incurred in connection with:
(a)
(b)
(c)
(d)

the printing, reproduction and purchase of all documents, drawings, maps


and records:
telegrams, telex, facsimile, courier service and telephone calls other than
local calls;
traveling, hotel expenses and other similar disbursement;
the advertisements for tenders and for site staff;
- 32 -

(f) the provision of additional professional services to the the PKENPs


under sub-subparagraphs 2(1)(b), 2(2)(b) and 2(3)(b) of Part A.;

(g) any fees, cost or charges paid by the consultant engineer to the local
authority or other authorities in connection with the seeking and obtaining
of statutory approvals.
3.

Payment For Alteration Or Modification To Design


If after the completion by the Consultant Engineer of his professional services
under sub-subparagraphs 1(1)(a), 1(2)(a) and 1(3)(a) of Part A or, whichever is
applicable, any design whether or in progress or any specifications, drawings or
other documents prepared in whole or in part by the Consultant Engineers is
required to be modified or revised by reason of instruction received by the
Consultant Engineer from the PKENPs, or by reason of circumstances which
could not reasonably have been foreseen, the consultant engineer shall be paid an
additional payment by the PKENPs as provided in subparagraph 1(2) or Part B
calculated in accordance with paragraph 2 of Part B, and also any appropriate
reimbursement provided in paragraphs 1 and 2 of this Part for making any
necessary modification or revision and for any consequential reproduction of
documents

4.

Payment for Site Supervision


In addition to any other payments to be made by the PKENPs to the Consultant
Engineer under Part B, the consultant engineer shall be
(a)

reimbursed for all salary cost made by the consultant engineer to his own
staff seconded to the site in the discharge of the consultant engineers
responsibilities under paragraph 3 of Part A times a multiplier; and

(b)

reimbursed for all salaries and wage payments made by the consultant
engineer to site staff specially recruited by the consultant engineer in the
discharge of his responsibilities under paragraph 3 of Part A times a
multiplier, and for all other expenditures actually incurred
by
the
consultant
engineer in connection with the selection, engagement and
employment of the site staff.
(c) The consultant engineer shall also in all cases be reimbursed for the actual
cost of providing such site office accommodation, furniture, telephones,
equipment and transport as shall be reasonably necessary for the use of the
consultant engineer site staff, and for the actual running costs of the site
accommodation and other facilities including those of any stationery,
telephone calls, telegrams, telex, facsimile, courier services and postage
unless they are provided by the PKENPs.
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5.

Payment When Works Are Damaged or Destroyed


If at any time before completion of the works, any part of the works or any
materials, plant or equipment whether incorporated in the works or not are
damaged or destroyed, resulting in additional work being required by the
PKENPs to be carried out by the consultant engineer, then the consultant engineer
shall be paid by the PKENPs on a time basis (i.e. salary cost times a multiplier)
for the additional works together with any reimbursements as provided in
paragraph 2 of this Part.

6.

Payment Following Termination or Suspension by Perbadanan Kemajuan


Ekonomi Negeri Perlis.
(1) In the event of the termination or suspension by the PKENPs of the works of
the consultant engineer services (unless in the case of the latter where the
termination or suspension had been occasioned by the default or negligence of
the consultant engineer), the consultant engineer shall be paid the following
sums (less the amount of the payments previously made to the consultant
engineer):
(a) a sum deductible from the stage professional services completed at the
time of termination or suspension;
(b) a disruption charge equal to one sixth of the difference between the
sum, which could have been payable to the consultant engineer under
subparagraphs 1(1) and 1(2) of Part B, whichever may be applicable
(as if the full scope of professional services has been completed by the
consultant engineer under the terms of his engagement), but for the
termination or suspension, and the sum payable under subsubparagraph 6(1)(a) of this Part, provided that the professional
services have advanced beyond the preliminary stage; and
(c) amounts due to the engineer under any other paragraphs of Part B.
(2)

If the consultant engineer id required to recommence his professional


services for the works suspended by the PKENPs, the consultant engineer
shall be paid for the performance of his professional services the sum
payable to the consultant engineer under subparagraph 1(1) and/or
subparagraph 1(2) of part B, whichever may be applicable, the payments
under subparagraphs 6(1)(a) and 6(1)(c) of this Part being treated as
payments on account, provided that the consultant engineer shall retain as
an additional payment the disruption charge referred to in subsubparagraph 6(1)(b) of this Part.
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(3)

If tendering for the works (or any part of them) is or is likely to be delayed
for more than nine months or postponed at the request of the PKENPs,
then for the propose of computing the fee to be paid to the consultant
engineer for the performance of his professional services the
cost of the works applicable shall be the estimated cost of the works (or
any relevant part of them) at the time of completion of the design.

(4)

(5)

If the works are suspended or postponed after tenders have been called,
the fees payable to the consultant engineer shall be as follows:
(a)

for the preliminary stage, design stage and tender stage, the fees
shall be computed on the lowest acceptable tender provided that if
no acceptable tender is received then the fees shall be computed on
the estimate made by the consultant engineer of the cost of the
works at the date of calling for tenders;

(b)

if the works subsequently resumed and the tenders recalled, the


total fees payable to the consultant engineer, inclusive of the fees
paid under sub-subparagraph 6(4)(a) of this Part, shall be as
follows
(i)

for the preliminary stage, design stage and tender stage be as computed in sub-subparagraph 6(4)(a) of this Part;
and

(ii)

for the construction stage the fees shall be computed on


the final contract sum of the works at the time of
completion of the works.

If the consultant engineer is required to perform any additional services in


connection with the resumption of his professional services in accordance
with subparagraph 6(2) of this Part, the consultant engineer shall be paid
for the performance of the additional professional services on a time basis
(i.e. salary cost times a multiplier) and also any appropriate
reimbursements in accordance with paragraph 2 of this Part.

Payment Following Termination by The Consultant Engineer


If there is a termination by the consultant engineer of his professional services
(unless the termination had been occasioned by the default or negligence of the
consultant engineer), the consultant engineer shall be entitled to be paid the sums
specified in sub-subparagraphs 6(1)(a) and 6(1)(c) of this Part 1 less the amount
of payments previously made to the consultant engineer.

Service Tax
The consultant engineer shall pay to the Government Services Tax upon receipt
from the PKENPs in accordance with and in the manner prescribed under the
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Services Tax laws in Malaysia and lay any regulations or procedures make under
it.

APPENDIX A
CLASSIFICATION
ENGINEERING)

OF

WORKS

GROUP

(CIVIL/STRUCTURAL

Class I
Airports with extensive terminal facilities;
Water, waste water, and solid/liquid waste treatment and disposable plants;
Bridges which are asymmetric or are otherwise complicated;
Thermal/nuclear power plants;
Large dams or complicated small dams, reservoirs and water towers;
Urban and suburban arterial streets;
Grade crossing elimination;
Highway and railway tunnels;
Pumping station;
Major incinerators;
Large intercepting and relief sewers;
Marine works and terminal facilities, dry docks, jetties, quays and wharves;
Heavy foundation, piling and coffer dams;
Large sports staid, swimming polls, grandstands, marinas and zoos;
Large hangers;
Major irrigation and drainage structure and large water distribution networks;
Oil tanks, refineries and collieries;
Off-shore installation, and satellite stations;
Underground, and defense works;
Gantries;
Silos, and tall chimneys;
Silos, and tall chimneys;
Causeways;
Shipyards;
Bulk handling installations;
Mass rapid transit works; and
Major and complicated coastal protection works;
Class II
Public and office buildings;
Industrial buildings, warehouses, garages, hangars and comparable structures;
Bridges and other structure of conventional design;
Simple water front facilities;
Railways;
Rural roads JKR 01 standard and private streets;
Embankments, flood walls and retaining walls;
Small dams and small reservoirs;
Sewer and water tunnels (free-air);
Storm sewers and drains;
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Sanitary sewers;
Water distribution lines, ad hot/cold water services;
Irrigation and drainage works, except pumping and major works under Class I;
Airports except as classified in Class I works;
Transmission and other towers; and
Light foundation including piling.

Class III
Mass earthworks and site clearing;
Dredging reclamation works;
Gravity retaining walls and gabions;
Sub-soil drainage and turfing;
Road pavements, parade grounds and hardstands;
Roadside furniture;
Minor drainage culverts;
Residential and shophouse building not exceeding 4 storeys in height;
Stand sub-stations;
Proprietary standard beams, trusses, etc;
Prefabricated structures; and
Farm roads and kampong/estate roads.

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APPENDIX B
Class I
Fire fighting and prevention systems;
Air-conditioning and mechanical ventilation system;
Refrigeration and cold stores systems;
Lighting, power and electrical distribution systems;
Generating plant installation;
Water treatment and filtration (mechanical and electrical systems)
Stage lighting systems;
Design of pressure vessels;
Plant and production systems including layout;
Pollution control systems;
Cable cars systems; and
Bulk liquid and solid handling storage systems.
Class II
Electrical load dispatching and control systems;
Abattoir plants;
Steam generating systems;
Hot and cold water systems;
Compressed air systems;
Medical vacuum piping;
Medical gas services;
Cooling water systems;
L.P. Gas systems;
Telephone distribution and intercommunication systems;
Lightning protection systems;
Electrical no break lighting systems;
Stage mechanism;
Heating and thermal installations;
Electrical sub-stations;
Street lighting;
Public address systems, personal location and call systems, and radio and TV systems;
Security systems;
Food preparation, cooling, conveying and surveying systems;
Transmission lines; and
Vacuum systems.
Class III
Lifts, hoist, dumbwaiters and escalators;
Laundry equipment and service;
Sterilizing and bed pan washing or disposal equipment;
Standby generators;
Clock installations;
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X-ray equipment;
Pneumatic tube conveyor systems;
Conveyors;
Solid waste collection and disposal systems;
Quarry and mining installations;
Surgical lighting; and
Lighting fitting.

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