Pam Standard Form of Contract 2018 in Relation to Loss and Expenses

The PAM Standard Form of Contract 2018 is a commonly used agreement within the Malaysian construction industry. One of the key provisions within this agreement is the allocation of loss and expenses among parties involved in the construction process.

The main objective of the PAM Standard Form of Contract 2018 is to provide a fair and reasonable allocation of risks and responsibilities among the parties involved in a construction project. This includes the allocation of loss and expenses in the event of delays or disruptions to the project.

Loss and expenses refer to any additional costs incurred by the contractor due to unforeseen events or circumstances that are beyond their control. These may include delays caused by weather conditions, changes in design or scope of work, or disputes with other parties.

Under the PAM Standard Form of Contract 2018, the contractor is typically entitled to claim for loss and expenses in certain circumstances. For example, if the project is delayed due to the actions of the employer or other contractors, the contractor may claim for additional costs associated with the delay.

However, the contractor will not be entitled to claim for loss and expenses if they have caused the delay or disruption themselves. This includes situations where the contractor has not met their obligations under the contract, such as failing to provide adequate resources or completing work within the agreed timeframe.

It is important to note that the PAM Standard Form of Contract 2018 also places an obligation on all parties to mitigate any losses that may arise during the construction process. This means that parties must take reasonable steps to minimize costs and avoid unnecessary delays.

Overall, the allocation of loss and expenses under the PAM Standard Form of Contract 2018 is designed to ensure that all parties involved in the construction process are fairly compensated for any additional costs incurred due to unforeseen circumstances. By understanding these provisions, contractors and employers can work together to manage risks and ensure the successful completion of construction projects.

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