Flowchart Action By Reference Refer SPP 5/2006 Ref

(1)

Chapter 16 – DETERMINATION

16-1 Revision 0 : March 2009

Flowchart Description Action By Reference

1. Establish the ground(s) for the determination

SOR

2. Issue 1^stwarning letter SOR

3. Contractor continues default or repeats the default?

4. Issue 2^ndwarning letter SOR

5. Prepare report for determination, and submit to JKPPS for approval

SOR Refer SPP

5/2006

6. SO to issue ‘Notis Kemungkiran Kontraktor’

SOR

7. Contractor continues default or repeats the default?

8. Officer Named in Contract to issue Notice of Determination

SOR/ Officer Named in

Contract

9. Forfeit Performance Bond or Advance Payment Bond

SOR/CAO

10. Issue stop work order and evaluate the works done

SOR Ref: Sample of Sch. of Activities prior to Tender

11. Re-tendering exercise CAO See Chapter

6 – 8 12. Settlement of Final

Account

See Flowchart 16.2 Note: For bankruptcy or insolvency, SOR may go straight to step 8 – 12

Flowchart 16.1 – Determination of the Employment of the Contractor No

1

2

4

5

7 3

End 6

8

9 Yes

Yes

No

10

11

12

Refer SPP 8/2009

April 2010

(2)

Step Procedures / Tasks Action By

/ Reference 1 Establish the Grounds for Determination

Establish / Verify the grounds for the determination:

(a) The Contractor fails to submit Performance Bond or Insurance Policies

(b) The Contractor fails to expedite the works after receiving Letter of Acceptance

(c) Any of the ground stated in Conditions of Contract, such as

x Suspending the carrying out of works without reasonable cause

x Not carrying out the works diligently

x Failing to execute the works in accordance with the contract or neglecting to carrying out his obligation under the Contract

x Subletting the whole or any part of the works without prior consent of S.O./PD

x Contractor went to insolvency, winding up or liquidation

Insolvency of Contractor

If the Contractor becomes insolvent or bankrupt, issue the Notice of Determination; no warning letter(s) is required.

Action By:

SOR

2 Prepare 1^stWarning Letter

Upon established the ground for determination, the intention for determination via a warning letter is issued with a reason to stop the employment. A time frame, normally fourteen (14) days is given to Contractor for reaction.

Refer to Sample of Warning Letter.

Action By:

SOR

3 & 4 Contractor Continues/ Repeats Defaults?

Prepare 2^ndWarning Letter

If no compliance made by the Contractor, the 2^ndwarning shall be issued.

If the Contractor repeats and fail to comply the reminder (within fourteen days), the proposal /report shall be made by PM/ CA to Authorised Officer to stop the employment.

Action By:

SOR

(3)

/ Reference 5 & 6 Prepare Report and Issue the ‘Notis Kemungkiran

Kontraktor’

(a) Prepare a report on the determination, and submit to Jawatan Kuasa Penyelamat Projek Sakit (JKPPS) for approval.

Other than the recommendation, the report shall include the short listed tenderers for execution the defect works and the recommend the appropriate procurement option.

If the report is complete and deemed satisfactory by the Authorised Officer, the SO shall issue a notice of non-performance (Notis Kemungkiran Kontraktor). A period of fourteen days is given to Contractor to take the necessary action.

(b) The SO shall report to Authorised Officer on the action (or inaction) of the Contractor prior the issuance of Notice of Determination.

Refer to Sample of ‘Notis Kemungkiran Kontraktor’.

** if the Contractor is in default under Fasal 51(b) Syarat- Syarat Kontrak (Bankruptcy or insolvency), the SO may submit the report without issuing any warning letters or default notice.

Action By:

SOR

7 & 8 Contractor Continues/ Repeats Defaults?

Issuance of Determination Notice

If the Contractor does not comply with the warning letter or default notice, or if the Contractor repeats and fail to comply the reminder (within fourteen days), issue the Determination Notice.

Refer Section 16.6.2 - Notice for Determination

Action By:

SOR/ Officer Named in Contract

9 Forfeit Performance Bond or Advance Payment Bond To forfeit Performance Bond and/or Advance Payment Bond of the Contractor immediately after issuance of Notice of Determination.

Refer to Sample of Letter for Calling off Performance Bond

Action By:

SOR / CAO

April 2010

16.4.2

/ 51.2(a)

(4)

/ Reference 10 Issuance of Stop Work Order and Evaluate Works Done

If the Contractor fails to evacuate from the site, issue a Stop Work Order.

Evaluate the works done, including computing the value of works done (for finalisation of accounts purposes) and schedule of defects and out-standing works.

Action By:

SOR

Refer: Sample of Sch.

Of Activities prior to Tender

11 Re- tendering Exercise Refer to Chapter 6 to 8.

Action By:

CAO

12 Settlement of Final Account

Refer to Flowchart and Procedures of Settlement of Final Account.

Government Procurement Guideline

April 2010

** Clause 51(b) - For PWD FORM 203/203A (REV. 10/83) Clause 51.2(a) - For PWD FORM 203/203A (REV. 2007)