1. Prolongation - relevant to the Extension of Time (EOT) as granted by the Architect.

2. Disruption - delay has been caused by a project activity which may not have impact on the contract completion date.

1. Verify Contract Rates – Determine whether contract rates are applicable. If yes, reference the BQ or SOR for the measured item.

2. Pro-rata Rate Consideration – If contract rates do not directly apply, check whether an appropriate contract rate can serve as the basis for a pro-rata rate.

3. Fair Valuation – If neither of the above options is feasible, conduct a fair valuation of the variation works using "star" rates.

4. Daywork Basis Assessment – For works that cannot be measured under the SMM, assess them on a daywork basis.

The Architect may issue an AI, with the Contractor’s written consent, omitting works in order to be carried out by others.

For SOQR, the order of precedence are listed as follow:

1. Articles of Agreement

2. Form of Tender

3. Special Conditions

4. General Conditions

5. Drawings

6. Specification

7. SOQR

For BQ, the order of precedence are listed as follow:

1. Articles of Agreement

2. Form of Tender

3. Special Conditions

4. General Conditions

5. Drawings, Specification, BQ

For adjustment of Contract Sum, BQ shall take precedence over Drawings and Specification.

All oral instructions e.g. CVI must be confirmed within 5 days. If the CVI requires a varation, it must be confirmed within 7 days; and if no objection within further 7 days, it shall take effect.

The Contractor shall submit, if not stated, the master programme within 42 days of acceptance of the Contractor's tender. The Contractor shall update, if not stated, the master programme at 3 months intervals and in any designated event within 28 days.

1. delivered to (adjacent to) Site

2. for permanent Works

3. not prematurely delivered

4. properly protected against weather, damage or theft

1. delivered to (adjacent to) Site

2. for permanent Works

3. not prematurely delivered

4. properly protected against weather, damage or theft

1. change in design, quality or quantity of Works

2. change of access to the Site

3. limitation of working space

4. limitation of working hours

5. change of working sequence

1. capital cost

2. running cost

3. maintenance cost

4. replacement cost

5. disposal cost

If, in the Architect’s opinion, the rate of progress of the Works is too slow, at any time, he may notify the Contractor accordingly.

The Contractor may, at his own discretion, take the measures considered necessary.

The Architect may issue instructions, at any time, up to the issue of the Final Certificate. However, the Architect may issue instructions requiring a variation before issue of the Defects Rectification Certificate.

BQ error is an error in description or in quantity and it shall be corrected and deemed to be a Variation required by the Architect and valued according to Valuation rules.

Substantial Completion is the state of completion where the Works may not be absolutely completed or entirely free from defects but it can be taken over and used by the Employer.

The DLP, unless otherwise stated, shall be 12 months from Substantial Completion. The Architect shall issue the final schedule of defects not later than 14 days after the expiry of DLP. The Contractor shall rectify the defects in the schedule within a reasonable time after receipt.

1. the Defects Liability Period has expired

2. the Contractor completed the outstanding items in Substantial Completion Certificate

3. all defects in defect schedule have been rectified

It shall be a condition precedent to the entitlement to the additional payment that the Contractor shall comply with the requirement of notice and submission. Otherwise, the claim will be deemed to have been waived.

The Main Contractor can make reasonable objection, if:

1. the NSC has poor safety record;

2. the NSC is financially or technically imcompetent;

3. the tender sum is not financial viable;

4. the programme is unreasonable

The Employer shall be entitled to pay the amount NSC and deduct it from the Main Contractor, however, it shall not make the Employer liable to do so.

If the Nominated Sub-Contract requires the sub-contract to be completed by a specified date, the Architect shall issue the Substantial Completion Certificate for the sub-contact works accordingly.

If the Nominated Sub-Contract is with no specified date for the sub-contract works to be completed, the sub-contract shall be deemed to have been completed on the day as the Substantial Completion Certificate for the main contract works. 

The Architect shall issue an interim certificate at the end of each period of interim certificate commencing not later than 42 days after the Commencement Date. 

The 10% of Contract Sum is simply a mechanism indicating the amount of bond. 

It shall not be considered whether it includes NSCs or not.

• Awarded Contract Sums

• Instructed variations

• Potential variations

• Adjustment of Provisional Sums

• Adjustment of Provisional Quantities

• Adjustment of P.C. Sums

• Adjustment of P.C. rates

• Ongoing Claims

• Budget

• Fluctuation (if any)

• Anticipated Contract Sums

• Certified payments

It enables the Employer to gain a clear understanding of the project's financial status over its duration and to proactively arrange any necessary funding in advance.

It serve as a benchmark against valuations and provide an early warning of potential financial issues if actual expenditure falls behind the forecasted projections.

To report against budgeted values and functions as an ongoing cost control measure to monitor and manage the project budget effectively.

It facilitates the reporting of contract progress in comparison to pre-contract forecasts, enabling effective monitoring of project performance.

It provides the employer with a clear understanding of any cost savings achieved or additional funding that may be required.

It should be the direct and actual loss incurred by the Contractor.

• Prolongation

• Lengthening of preliminaries 

• Disruption of plant or labour

• Non-recoverable fluctuations 

• Head office overheads

• Loss of profit

• Finance charges

It refers to Construction Floor Area.

It is the covered floor areas fulfilling the functional requirements of the building measured to the outside face of the external walls or external perimeter.

It includes partitions, columns, stairwells, lift shafts, plant rooms, water tanks, balconies, utilities platforms, vertical ducts, service floors higher than 2.2m and the like.

However, it excludes bay windows, planters projected from the building, and the areas covered by canopies, roof eaves and awnings.

The sloping surfaces such as staircases, escalators and carpark ramps have been measured flat on plan.

• There will be no fixed completion date specified.

• The Contractor is only required to complete the Works within a "reasonable time."

• Liquidated damages cannot be enforced, as there is no agreed date from which to calculate them.

• The Employer may need to demonstrate if the Contractor failed to complete the Works within a reasonable time frame.

Novation is the process by which a new contract replaces an original contract, transferring the rights and obligations of one of the original parties to a third party.

All parties involved must agree to the change, and the original contract is effectively discharged and replaced with the new one.

A guarantee provided by a surety (typically a bank or insurance company) to the Employer, ensuring that the Contractor will fulfill their contractual obligations.

If the Contractor fails to meet these obligations, the bond can be called upon, and the surety will provide financial compensation up to a pre-agreed limit.

Importantly, a surety bond does not guarantee completion of the works—it only provides financial protection. 

A Provisional Sum is an allowance included in the Bills of Quantities for work where the scope and design have not yet been fully defined, and therefore, the cost cannot be accurately determined at the time the contract sum is agreed. 

A legal mechanism through which the insurer assumes the rights of the insured, allowing the insurer to pursue any legal claims or remedies against a third party deemed responsible for the loss.

A preprinted formal document in which the tenderer completes designated blank sections, typically providing their name, address, and the monetary amount for which they propose to execute the works.  

Novation is when one party transfers both their responsibilities and benefits under a contract to someone else, with everyone's agreement. This ends the original contract and creates a new one with the new party.

Assignment is the transfer of contractual benefits from one party to another. However, it does not allow the transfer of contractual obligations or burdens—these remain with the original party.