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S 80/71


(15th April 2002)






1. Citation.

2. Interpretation.

3. Terms and condition of public contracts set out in theSchedule.




Rules under section 121



1. These Rules may be cited as the Labour (Public Contracts)Rules.


2. In these Rules, unless the context otherwise requires —

“Government” means the Government of Brunei Darussalam andincludes such Public Authorities, Municipal Boards or local authorities as theMinister may from time to time specify;

“Public contract” means any contract which fulfils the followingconditions —

(a) that one party to the contract is the Government or has enteredinto the contract with assistant from the Government by way of grant, loan,subsidy, licence, guarantee or other similar form of assistance;

(b) that the execution of the contract involves —

(i) the expenditure of Government funds; and

(ii) the employment of workers by the other party to the contract;

(c) that the contract is a contract for —

(i) the construction, alteration, repair or demolition of public works;or

(ii) the manufacture, assembly, handling or shipment of materials,supplies or equipment; or

(iii) the performance or supply of services;

(d) that the contract is awarded by a duly authorised officer of the Government; and

(e) that the contract involves the expenditure of Government fundsof an amount of not less than $10,000.

Terms and condition of public contracts set out in the Schedule.

3. There shall be implied in every public contract entered into on or after the commencement of these Rules the terms and conditions set out in the Schedule hereto and it shall be the duty of every contractor who enters into any such contract to observe and comply with such terms and conditions in the execution of such contract.



1. The contractor shall, in respect of the workers employed in theexecution of a public contract, pay rates of wages and observe hours andconditions of work not less favourable than those established for work of thesame character in the trade or industry concerned in the district where the workis carried out by any written law or by collective agreement or other recognised machinery of negotiation or arbitration between employers andtrade unions representatives respectively of substantial proportions of theemployers and workers engaged in the trade or industry in such district(hereinafter referred to as “established rates and conditions”).

2. In the absence of established rates and conditions in the trade orindustry in the district, the contractor shall observe established rates andconditions in other districts where the trade or industry is carried on undersimilar general circumstances.

3. In the absence of any established rates and conditions as defined in paragraphs 1 and 2 of this schedule the contractor shall pay rates of wages and observe hours and conditions of work which are not less favourable than the general level of wages, hours and conditions observed by other employers whose general circumstances in the trade or industry in which the contractor is engaged are similar.

4. Before being allowed to tender for any public contract thecontractor shall certify that to the best of his knowledge and belief the wages,hours of work and conditions of work of all workers employed by him in the tradeor industry in which he is offering himself as a contractor are fair andreasonable having regards to the provisions of this Schedule.

5. In the event of any differences or dispute arising (as to whatwages ought to be paid, or what hours or other working conditions ought to beobserved in accordance with the provisions of this Schedule, it shall, if not otherwise disposed of, be referred by the Commissioner of Labour toan independent tribunal, for decision. In arriving at its decision the tribunal,in the absence of any established rates and conditions in the trade or industryconcerned as specified in paragraph 1 of this Schedule, shall have regard to anyagreement, custom practice or award that may be brought to its notice relatingto the wages, hours or conditions of work of persons employed in a capacitysimilar to that of the persons to whom the difference or dispute relates intrades or industries carried on under similar general circumstances.

6. A sub-contractor shall be bound in all cases to conform to theconditions of the main contract and the main contractor shall be responsible forthe observance of all contract conditions on the part of sub-contractors.

7. Contractors and sub-contractors shall recognise the freedom oftheir workers to be members of registered trade unions.

8. The Commissioner of Labour may require any contractor concerned in the execution of a public contract to file a certificate —

(i) showing the rates of wages and hours of work of the various classes orworkers employed in the execution of the public contract;

(ii) whether any wages in respect of the said work remain in arrears;and

(iii) that all the conditions of work of the public contract have been dulycomplied with.

9. The contractor shall also from time to time furnish to theCommissioner of Labour such further detailed information and evidence as theCommissioner may deem necessary in order to satisfy himself that the conditionsof this Schedule have been complied with.

10. In the event of default being made in payment of any money inrespect of wages of any worker employed on the public contract or in respect ofany money due to such worker under any law relating to Workmen’sCompensation and if a claim thereafter is filed in the office of theCommissioner of Labour and proof thereof satisfactory to the Commissioner isfurnished, the Commissioner may, failing payment, by the contractor arrange for the payment of such claim out of the monies at any time payableunder the said contract and the amount so paid shall be deemed payment to thecontractor.

11. Any contractor or sub-contractor who is found to be in breach ofthe conditions of this Schedule shall cease to be awarded contracts for suchperiod as the Minister may determine after consultation with the Commissioner ofLabour and duly authorised officer of the Government by whom the contract wasawarded.

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