Contract Extension

1. Who is the authority for contract extension?
  The authority for an extension of contract is the Procurement Board that has accepted or decided on the original tender or the Quotation Committee that has accepted or decided the original quotation.
   
2. What are the conditions that enables a contract to be extended?
  Changes or extension of supplies / services contract for the Federal procurement can be approved by the approving authority of the original tender with the following conditions:
  (a) The contract is in force (expired contract cannot be extended);
  (b) Does not involve changes in price;
  (c) The extension is given only once and not more than 2 years; and
  (d) Quantity/value increase does not exceed 50% of the original contract subject to a maximum of RM7.5 million and provided that this additional amount and the original contract value (cumulative total) does not exceed RM25 million.
     
3. What are the conditions to enable a contract extension that was managed through quotation?
  Change or extension of supplies/services contract for the Federal procurement can be approved by the approving authority of the original quotation with the following conditions:-
  (a) The contract is in force (expired contract cannot be extended);
  (b) Does not involve changes in price;
  (c) The extension is given only once and not more than 2 years; and
  (d) Quantity/value increase does not exceed 50% of the original contract subject to a maximum of RM250,000 and provided that this additional amount and the original contract value (cumulative total) does not exceed RM750,000.
     
4. Can an extension of time can be considered for works contract?
  Normally, an extension of time for works contract should not be given. This is because certain contractors were selected for their ability to complete the project early and possibly a higher bid was selected by the same reason. However, an extension of time for the completion of work may be permitted in accordance with the terms of the contract. Normally consideration can be given based on reasons that cannot be avoided by the contractors:
  (a) Force Majeure;
  (b) Delay or damage caused by any of the unexpected referred to in the contract;
  (c) Instructions given by the Superintending Officer resulting in delay of the project;
  (d) Delays caused by the Superintending Officer arising from the instructions, drawings, naming of sub-contractors/suppliers provided in the contract or delay caused by the Government in implementing the skilled work that are not part of the contract;
  (e) Delay in giving possession of site construction according to contract;
  (f) Any action resulting from the unionisation of local workers or a strike or the door close; and
  (g) The Contractor is unable for reasons beyond control and reasonably foreseeable.