PAM – Conditions Precedent to the commencement of work

No. Clause Content Remarks

19 – Insurance Against Contractor shall take out and maintain an insurance policy in the joint Failure to insure or continue to
Injury To Person and Loss names of the Employer, Contractor, sub-contractor and all interested insure: Employer may (not
and/or Damage of Property parties in respect of personal injuries or death and injury or loss and/or obligation) to insure against any
damage of property real or personal as a result of or in the course of risks in respect of which the
the execution of the Works. default has occurred and the
amount of the premiums and any
other cost incurred or paid by the
Employer shall be set-off by the
Employer under Clause 30.4
Contractor shall register all local workmen employed on the Works and Failure to insure or continue to
who are subject to registration under the Employees’ Social Security insure: Employer may (not
Scheme (SOCSO) in accordance with Employees’ Social Security Act obligation) to insure against any
1969 and shall cause all sub-contractors to comply with the same risks in respect of which the
provisions. default has occurred and the
amount of the premiums and any
other cost incurred or paid by the
Employer shall be set-off by the
Employer under Clause 30.4
Contractor shall take out and maintain in the joint names of the The insurance shall be valid up to
Employer and Contractor and shall cause all sub-contractor to take the Completion Date.
out and maintain a similar insurance policy for local workmen who are
not subject to registration under SOCSO. Extended maintenance cover shall
be for the DLP plus a further 3
months.

Failure to insure or continue to

insure: Employer may (not
obligation) to insure against any
risks in respect of which the
default has occurred and the
amount of the premiums and any

20A – Insurance of New
Buildings/Works – by the
Contractor
20B – Insurance of New
Buildings/Works – by the
Employer
20C – Insurance of Existing
Building or Extension – by
the Employer
other cost incurred or paid by the
Employer shall be set-off by the
Employer under Clause 30.4
Contractor shall take out and maintain in the name of Contractor and The insurance shall be valid up to
shall cause all sub-contractor to take out and maintain a similar the Completion Date.
insurance policy for foreign workmen employed on the Works as
required by the Workmen’s Compensation Act 1952 and Workmen’s Extended maintenance cover shall
Compensation (Foreign Worker’s Compensation Scheme) (Insurance) be for the DLP plus a further 3
Order 1998. months.
Failure to insure or continue to
insure: Employer may (not
obligation) to insure against any
risks in respect of which the
default has occurred and the
amount of the premiums and any
other cost incurred or paid by the
Employer shall be set-off by the
Employer under Clause 30.4
Contractor shall take out and maintain in the joint names of the The insurance shall be valid up to
Employer, Contractor, sub-contractors and all interested parties a CAR the Completion Date.
Insurance policy for a value not less than the Contract Sum, plus the
sum to cover professional fees for reinstatement and the sum to cover Extended maintenance cover shall
the removal of debris all as stated in the Appendix. be for the DLP plus a further 3
months.
Employer shall take out and maintain in the joint names of the The insurance shall be valid up to
Employer, Contractor, sub-contractors and all interested parties a CAR the Completion Date.
Insurance policy for a value not less than the Contract Sum, plus the
sum to cover professional fees for reinstatement and the sum to cover Extended maintenance cover shall
the removal of debris all as stated in the Appendix. be for the DLP plus a further 3
months.
Contractor shall take out and maintain in the joint names of the The insurance shall be valid up to
Employer, Contractor, sub-contractors and all interested parties a CAR the Completion Date.
Insurance policy for a value not less than the Contract Sum, plus the
 value of the existing structure together with all the contents owned by Extended maintenance cover shall
the Employer or for which he is responsible, the sum to cover be for the DLP plus a further 3
professional fees for reinstatement and the sum to cover the removal months.
of debris all as stated in the Appendix.
37 – Performance Bond Before the Date of Commencement of Works, Contractor shall submit The PB shall remain valid until 3
to Employer a Performance Bond for a sum equivalent to the months after the Completion
percentage stated in the Appendix as a security for the due Date.
performance and observance by the Contractor of his obligations under
the Contract up to Practical Completion of the Works. Failure to provide or maintain
validity of PB will entitle Employer
to withhold or deduct an amount
equal to the PB from any payment
due to the Contractor.