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15.5 Loss or Damage Occasioned by Insured Risk

(c) In the event of any damage or loss occurring during the performance of this Contract, the
Contractor shall repair, replace or make good such damage or loss from the amount of insurance
claimed, if sufficient, or if insufficient, using his own resources.

16.0 INDEMNITIES TO GOVERNMENT IN RESPECT OF CLAIMS BY WORKMEN

16.1 Workmen Compensation

(a) The Contractor shall be liable for and shall indemnify and keep indemnified the
Government and its officers or servants from all liabilities arising out of claims by any
workman employed by the Contractor in and for the performance of this Contract for
payment of compensation under or by virtue of the Workmen's Compensation Act 1952
and the Employee's Social Security Act 1969 or any other law amending or replacing
such law and from all costs and expenses incidental and consequential thereto.

(b) The Contractor shall effect and maintain throughout the Contract Period a 'Workmen
Compensation Insurance" or any other applicable insurance for its personnel, servants,
agents or employees required under the laws of Malaysia.

17.0 EMPLOYEES' SOCIAL SECURITY ACT, 1969

17.1 Registration with SOCSO

Without prejudice to his liability to indemnify the Government under clause 16. the Contractor
shall register or cause to register all local workmen employed in the execution of the Works and
who are subject to registration under the Employee's Social Security Scheme ("the SOCSO
Scheme") in accordance with the Employee's Social Security Act 1969 or any subsequent
modification or re-enactment of the said Act. For the purpose of this sub-clause, the term "local
workmen" shall include workmen who are Malaysian citizens and those who have permanent
resident status.

17.2 Contribution to SOCSO

The Contractor shall submit the Code Number and Social Security Numbers of all the workmen
registered under the SOCSO scheme to the S.O. for verification. The Contractor shall make
payment of all contribution from time to time on the first contribution day on which the same
ought to be paid and until the completion of this Contract and it shall be the dUty of the
Contractor to produce to the S.O. contribution statement or payment vouchers as evidence of
payment of such contribution, whether demanded or not.

17.3 Default in Complying with SOCSO

If the Contractor fails to comply with the terms of this Clause, the Government or the S.O. on its
behalf may without prejudice to any other remedy available to the Government for breach of any
terms of this Contract:

(a) withhold an amount from any money which would otherwise be due to the Contractor
under this Contract and which in the opinion of the S.O. will satisfy any claims for
compensation by workmen that would have been borne by SOCSO Scheme had the
Contractor not made default in maintaining the contribution; and/or

(b) pay such contributions as have become due and remain unpaid and deduct the amount
of such contributions including On-Cost Charges (calculated by applying the Percentage
of On-Cost Charges stated in Appendix to the contributions paid), from any money due

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 or to become due to the Contractor under this Contract, and failing which such
contributions shall be recovered from the Performance Bond or as a debt due from the
Contractor.

18.0 INSURANCE OF WORKS

18.1 Taking of Insurance

(a) The Contractor shall in the joint names of the Government and the Contractor insure
against loss and damage by fire, lightning, explosion, storm, tempest, flood, ground
subsidence, bursting or overflowing of water tanks, apparatus or pipes, aircraft and other
aerial devices or articles dropped therefrom, riot and civil commotion, all work executed
and all unfixed materials and goods, delivered to. placed on or adjacent to the Works
and intended therefore (but excluding temporary buildings, plant, tools and equipment
owned or hired by the Contractor or any sub·contractor, nominated or otherwise) to the
full value thereof (plus any amount which may be specifically stated in Appendix or
elsewhere in the Contract Documents) and shall keep such work, materials and goods
so insured until the completion of the whole of the Works, notwithstanding any
arrangement for Sectional Completion or Partial Occupation by the Government under
this Contract. Such insurance policy or policies shall provide expressly for payment in
the first place to the Government of any insurance monies due under the policy or
poliCies. .

(b) The said insurance with or without an excess clause as specified in Appendix hereto
shall be effected with an insurance company approved by the S.O. and it shall be the
duty of the Contractor to produce to the S.O. the said policy or pOlicies and the receipts
in respect of the premium paid. Where an excess clause is specified in Appendix, the
Contractor shall bear the amount of such excess.

18.2 Default in Insuring

If the Contractor fails to effect or renew such insurance as are necessary under this clause, the
Government or the S.O. on its behalf may renew such insurance and pay the premium in respect
thereof and deduct the amount so expended including On·Cost Charges (calculated by applying
the 'Percentage of On-cost Charges' stated in Appendix to the premiums paid). from any money
due or to become due to the Contractor under this Contract, and failing which such premium
shall be recovered from the Performance Bond or as a debt due from the Contractor. .

18.3 Payment of Insurance in the Event of any Loss/Damage

Upon the occurrence of any loss or damage to the Works or unfixed materials or goods prior to
the date the Works has been certified as practically completed by the S.O. in the Certificate of
Practical Completion, the Contractor shall notwithstanding that settlement of any insurance claim
has not been completed, with due diligence restore, replace or repair the same, remove and
dispose of any debris and proceed with the carrying out and completion of the Works. All money
if and when received from the insurance under this clause shall be paid in the first place to the
Government and then (less any such amounts as are specifically required in Appendix or
elsewhere in the Contract Documents) be released to the Contractor by instalments on the
certificate for payment issued by the S.O., calculated as from the date of receipt of the money in
proportion to the extent of the work of restoration. replacement or repair and the removal and
disposal of debris previously carried out by the Contractor. The Contractor shall not be entitled to
any payment in respect of the work of restoration, replacement or repair and the removal and
disposal of debris other than the money received under the said insurance.

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18.4 Cancellation of Insurance Policy

The Contractor shall ensure that any insurance policy effected hereto shall only be cancelled by
the insurer after the expiry of thirty (30) days from the date of receipt by the Government of a
written notice from the insurer advising of such impending cancellation PROVIDED THAT the
Contractor has been issued with the Certificate of Making Good Defects in accordance with
clause 48.

19.0 SETriNG OUT

19.1 The Contractor shall be responsible for the true and proper setting out of the Works and for the
correctness of the positions, levels, dimensions and alignments of all parts of the Works and for
the provisions of all necessary instruments, appliances and labour in connection therewith.

19.2 If at any time during the progress of the Works any error in the positions, levels, dimensions or
alignments of any part of the Works is discovered, the Contractor shall at his own expense rectify
such error unless such error is based on incorrect data supplied in writing by the S.O.'s
Representative in which case the expense of rectifying shall be borne by the Government.

19.3 If at any time during the progress of the Works, any error shall appear or arise in the setting-out
required to construct the Works or in the position, levels, dimensions or alignment of any part of
the Works, the Contractor, on being required to do so by the S.O., shall at his own expense
rectify such error to the satisfaction of the S.O. The checking of any setting out of or of any line or
level by the S.O. shall not in any way relieve the Contractor of his responsibility for the
correctness thereof and the Contractor shall carefully protect and preserve all things used in the
setting-out required for the construction of the Works until the S.O. agrees that the said things
may be abandoned.

19.4 The Contractor shall give to the S.O. without charge such information as may be required by the
S.O. to enable him to check the setting-out required for the construction of the Works including
interpreting any marks made by the Contractor for the purpose of setting out.

20.0 UNFIXED MATERIALS AND GOODS

Unfixed materials and goods delivered to, placed on or adjacent to the Site and intended for
incorporation therein, shall"not be removed except for use upon the Works, unless the S.O. has
consented in writing to such removal. Where the S.O. has included the value of such materials or
goods in any certificate in accordance with clause 28, under which the Contractor has received
payment, such materials and goods shall become the property of the Government, but the
Contractor shall remain responsible for loss or damage to the same.

21.0 COMPLIANCE WITH THE LAW

21.1 The Contractor shall comply in all respects (including the giving of all notices and the paying of
all fees required) with any law, regulation or by-law, or any order or directive issued by any public
authority or public service company (hereinafter referred to as "Statutory Requirements"), relating
to the Works or, in the case of public authority or public service company, with those systems the
same are or will be connected. The Contractor shall submit to the S.O. all approvals received by
the Contractor in connection therein. The Contractor shall keep the Government indemnified
against all penalties and liability of every kind for breach of any such Statutory Requirements.

21.2 If after the Date of Tender (as speCified in Appendix) there is any change or amendment in any
written law, regulations and by-laws which necessitates any variation to the Works, the

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Contractor shall, before making such variation, give to the S.O. a written notice specifying and
giving the reason for such variation and apply for the S.O.'s instruction in respect of the matter.

22.0 DESIGN

22.1 Design Liability

(a) Notwithstanding any design and specifications supplied by the Government, if the
Contractor is required under this Contract to undertake the design of any part of the
Works which is a stand alone design as determined by the Government, the Contractor
shall ensure that such design shall be suitable, functional, safe and compatible with the
design and specifications of the Works and that it shall be undertaken and approved and
endorsed by a competent and registered professional.

(b) The Contractor shall submit to the S.O. all drawings, specifications, calculations and any
other relevant information for approval. No work shall commence without prior written
consent of the S.O.

(c) The Contractor shall be fully responsible for the design, execution and maintenance of
the Works or part thereof for which his design has been accepted by the Government,
and shall absolutely guarantee the Government independent of fault, that the design,
materials and workmanship for the Works or part of the works is suitable, functional, safe
and compatible with the requirements of the Government.

(d) The approval by the S.O pursuant to sub-clause (b) shall not relieve the Contractor of
any of his responsibilities under sub-clause (c).

22.2 Design Guarantee Bond

(a) The Contractor shall provide a Design Guarantee Bond for the said part of the Works
issued by an approved licensed bank or financial institution of the sum of Ringgit

(RM .................................) amounting to 5% of the value of the said part of the Works
substantially in the form as in Appendix [ ...... ] upon or before the issuance of the
Certificate of Practical Completion of the Works. Such Design Guarantee Bond shall
remain valid for a period of 5 years from the date of practical completion of the Works.

(b) If any defect or damage shall occur to that particular part of the works as a result of any
defect, fault, insufficiency or inadequacy in the deSign including workmanship, materials
or eqUipment which has become defective arising directly from design fault then the
approved licensed bank or financial institution issuing the Design Guarantee Bond
pursuant to sub-clause (a) above will indemnify and pay the Government, on demand by
the Government in writing notwithstanding any objection by the Contractor or any third
party, the sum of .............................................................................................
being equal to 5% of the value of the said part of the Works.

(c) If the Design Guarantee Bond is not deposited with the Government in accordance with
sub-clause (a) above, the Government shall have the right to claim from the
Performance Bond the sum of Ringgit ...................................................................
(RM ..................................) being 5% of the value of the said part of the Works.

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23.0 EMPLOYMENT OF WORKMEN

23.1 Workmen

(a) The Contractor shall employ, in the execution of this Contract, only Malaysian citizens as
workmen.

(b) If in any particular trade or skill required to complete the Works, the Contractor can show
to the satisfaction of the S.O. that Malaysian citizens are not available, then the
Contractor may employ non-Malaysian citizens subject to the approval of the
Government.

(c) The Contractor shall on the commencement of the Works furnish to the Jabatan Tenaga
Kerja of the State in which this Contract is performed all particulars connected with this
Contract and such returns as may be called for from time to time in respect of labour
employed by him on for the execution of this Contract, in accordance with the
requirements of the Employment Act 1955, Employment (Restriction) Act 1968, and
Internal Security (Registration of Labour) Regulation 1960 or any subsequent
modification or re-enactment thereof.

(d) The Contractor shall maintain on the Site at all times during the progress of the Works an
up to date register containing particulars of all workers employed by him.

(e) The Contractor shall cause his sub-contractors (including 'labour only' sub-contractors)
and Nominated Sub-Contractors to comply with the provisions of this clause.

23.2 Compliance with Employment Act 1955, etc.

In the employment of workmen for the execution of this Contract, the Contractor shall comply,
and shall cause his sub-contractors (including "labour only" sub-contractors) and Nominated
Sub-Contractors to comply with all the requirements of the Employment Act 1955, Employment
(Restriction) Act 1968, Employee's Provident Fund Act 1951, the Industrial Relations Act 1967
and any other law relating to the employment of workmen, or any subsequent modification or re­
enactment thereof. PROVIDED THAT the Contractor shall not be entitled to a~y claim for
additional costs and payments whatsoever in respect of his compliance with this clause.

23.3 Days and Hours of Working

No work shall be done on:

(a) the weekly day of rest;

(b) any public holiday which is recognised in the state where this Contract is being carried
out; or

(c) between the hours of six in the evening and six in the following morning;

without the written permission of the S.O. PROVIDED THAT when such written application of the
Contractor is approved by the S.O., the Contractor shall comply fully with all the requirements of
the Employment Ordinance 1955 in regard thereto or any subsequent modification or re­
enactment thereof and shall bear any costs for compliance therewith, and any extra costs
incurred by the Government in connection with the supervision of the Works.

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