Radical Changes To Standard Forms of Contract To Adress Problems In The Malaysian Construction Industry
| dc.contributor.author | Leng, Chan Kar | |
| dc.date.accessioned | 2016-07-18T02:07:03Z | |
| dc.date.available | 2016-07-18T02:07:03Z | |
| dc.date.issued | 2004-04 | |
| dc.description.abstract | The construction industry in Malaysia has been plagued by the rising of claims, disputes and litigation. Malaysia has recently seen an increase numbers of 'claim-artist' (claim consultant) ever ready to serve the Contractors. The economic changes over the last decade also had its impact on the contractors. Competitions are now greater and profit margins are leaner. Employers on the other hand, want buildings to be built and handed over faster. At the same time, new building technologies and products ripples through the industry leaving Architects and Engineers trying hard to grapple the changes. Design and bidding documents are seldom adequately complete prior to the tendering · · exercise. Hence, tender documents. and conditions of contracts were 'tinkered' in an amateurish way· loading substantial amount of risk on to the Contractor. All these in tum, precipitated certain notable changes in attitude of Contractors towards cost recovery and claims. On the legislation front, the Act 520 [The Lembaga Pembangunan lndustri Pembinaan Malaysia Act 1994] was enacted to pave way for the establishment of Construction Jndustry Development Board (CIDB) and empowerment of CIDB to regulate the industry. CIDB is entrusted with the responsibility to address pertinent issues and problems faced by the industry. CIDB has drafted and issue a Standard Form of Contract in year 2000. Meanwhile, Pertubuhan Arkitek Malaysia (PAM) issued a revised Standard Form of Contract in year 1998 to replace the old 1969 PAM Form that has been used for over 30 years by the private sector. Currently PAM is in the final drafting of Revised PAM Form of Contract 2003 to address shortfall in PAM Form 1998. Stakeholders and constituents of the industry are of the opinion that improved contracts or further tightened of clauses in a contract will better govern the projects and control of disputes. In line with this development in standard forms of contracts in Malaysia, this survey attempts to understand contractual problems in Malaysia and promote the tenets of New Engineering Contract (1 81 Edition -1993) issued under the sanction of The Institution of Civil Engineers in United Kingdom. This research is to establish that what the industry urgently requires is flexibility in management structures which is essential in dealing with complex and changing business environment. NEC is said to be a solid testament to good sense, effective project management and shall replaces o_ld techniques of spinning out arguments over variations at the end of project hoping to cash in during final account period. This survey attempts to investigate on probability of philosophy of NEC being implemented to address some long standing contractual problems. The survey concluded that the industry is generally not ready for the radical changes stated in NEC. Nevertheless, the industry showed encouraging response to certain aspect in NEC such as adjudication providing rooms for further development in Malaysia | en_US |
| dc.identifier.uri | http://hdl.handle.net/123456789/2247 | |
| dc.subject | Construction Industry | en_US |
| dc.title | Radical Changes To Standard Forms of Contract To Adress Problems In The Malaysian Construction Industry | en_US |
| dc.type | Thesis | en_US |
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