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PAVITRAH A/P SEGARAN 01DKA14F2025 PRASANNA SRI A/P RAVI 01DKA14F2002 JEYASARANIYA A/P PARSURAMAN

01DKA14F2007 UMESWARAN A/L LETCHUMANAN

01DKA142008

CLAUSE 51.0 : EVENTS AND CONSEQUENCES OF DEFAULT BY THE CONTRACTOR

CLAUSE 53.0 : TERMINATION ON CORRUPTION,UNLAWFUL OR ILLEGAL ACTIVITIES

OBJECTIVE• TO UNDERSTAND ABOUT THE SPECIFIC CLAUSES IN DETAIL.• TO DETERMINE THE LEGAL SIGNIFICANCE OR THE EXTERNAL

ACTS OF THE PARTY.• TO GET TO KNOW THE RESPONSIBILITY OF EACH PARTIES

ACCORDING TO THE CLAUSES.• TO KNOW THE FLOW OF WORK ACCORDING TO THE

CLAUSES. 

PURPOSE OF CLAUSE 51.0Events and the consequences of default by the contractor.  1. So that the contractor involved can performed according to the procedures in

the clause specified in the contract. 2. To avoid any incidents or disputes or disagreements in the contract. 3. If there is any disagreements or disputes in the contract can be settled fairly

and impartially. 4. To make sure the contractor to understand the impact if the contractor fails to

follow the written procedures in clause. 5. To make sure the contractor to understand the consequences if the project is

terminated. 6. To let know the contractor on his obligations if the contract is terminated.

PURPOSE OF CLAUSE 53.0TERMINATION ON CORRUPTION,UNLAWFUL OR ILLEGAL ACTIVITIES

Termination on corruption , unlawful or illegal activities. To let the contractor know the procedure and consequences of

termination and corruption, unlawful and illegal activities.

Contractor fails to follow the written contract.

Government terminates the

contract by giving written notice.

The contractor clears the site

within given time.

The government finds a new

contractor to finish the work.

The contract pays for the any losses and damages during work.

CLAUSE 51.0 : EVENTS AND CONSEQUENCES OF DEFAULT BY THE CONTRACTOR

Corruption happens between contractor and governments employees.

Government terminates

the contract by giving written notice.

The contractor clears the site within given

time.

The government finds a new

contractor to finish the

work.

The contract pays for the any losses and damages during work.

CLAUSE 53.0 : TERMINATION ON CORRUPTION,UNLAWFUL OR ILLEGAL ACTIVITIES

OBLIGATIONS OF PARTIES CLAUSE 51.0 EVENTS AND CONSEQUENCES OF DEFAULT BY THE CONTRACTOR. Once the contract is terminated, CONTRACTOR Stop all construction works. Must make sure the safety of the site and equipment on site and cleanliness of site. Remove all his men from site. Vacate the site. Must hand over the Government all plans, designs and any other documents related to the work. Pay for any losses or damages. GOVERNMENT Call upon the Performance Bond or forfeit the Performance Guarantee Sum. Visit the site. Take responsibility on his project to continue and complete the work. Claim any losses, costs, and damages from contractor.

CLAUSE 53.0 TERMINATION ON CORRUPTION, UNLAWFUL OR ILLEGAL ACTIVITIES. 

GOVERNMENT Entitled to terminate the contract if the company, personal, servants, or employees is

convicted by a court of law for corruption. Entitled to all losses, costs, damages and expenses arising from such termination. Call upon the Performance Bond or forfeit the Performance Guarantee Sum. Visit the site. Take responsibility on his project to continue and complete the work. Claim any losses, costs, and damages from contractor. CONTRACTOR Stop all construction works. Must make sure the safety of the site and equipment on site and cleanliness of site. Remove all his men from site. Vacate the site. Must hand over the Government all plans, designs and any other documents related to

the work. Pay for any losses or damages.  

IMPACTS FROM CLAUSES

CLAUSE 51.0 EVENTS AND CONSEQUENCES OF DEFAULT BY THE CONTRACTOR.   It gives clear view for contractor on his obligations towards the

contract. The contractor understand the consequences that he will face if he

failed to follow the contract. The contractor understands the requirements of the government. There is mutual understanding between contractor and the

government so that the flow of work is efficient and relevant.  

CLAUSE 53.0 TERMINATION ON CORRUPTION, UNLAWFUL OR ILLEGAL ACTIVITIES.   It prevent corruption during tender and construction period. It make sure all the works are done according to law. New contractors stand chance to win contract. There is mutual understanding between contractor and the

government so that the flow of work is efficient and relevant.    

GLOSSARY1. Prejudice – Preconceived judgement or opinion about the client2. Termination – The actions of bringing the contract or the construction to an end.3. Obligations – A duty / commitment given to the contractor according to the clauses.4. Provisions – Amount of statements provided in the clause.5. Comply – To act according to the clauses.6. Breach – A failure to do what is required by a clause.7. Personnel – Employee or workmen of the contractor.8. Render – To provide.

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