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Cost-Related Issues in Malaysian Construction Contracts

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Proceedings of the 2nd International Colloquium of Art and Design Education Research (i-CADER 2015)

Abstract

Time, cost, and quality are the three main challenges of the construction industry. This research chapter focuses on the different contractual obligations between the Public Works Department (PWD) standard form of contract and Persatuan Arkitek Malaysia (PAM)’s form of contract. Comparative studies of the cost-related clauses (the PAM and PWD Contract, With Quantities) have been carried out. The research aimed to investigate the cost-related issues faced by the construction parties by focusing on the applications and principles applied by the courts for disputes brought to courts by the suffering parties. This chapter deduces important lessons that must be fulfilled to avoid and minimise the cost-related disputes in the construction industry.

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References

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Acknowledgment

The authors would like to acknowledge the support funding from the Research Management Institute (RMI), Universiti Teknologi MARA Malaysia under the Research Intensive Faculty (RIF) grant. Special thanks also go to the reviewers for their valuable comments on this chapter.

Author information

Authors and Affiliations

  1. Centre of Studies for Quantity Surveying, Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia

    Sharifah Nur Aina Syed Alwee, Halim Hashim, Mysarah Maisham, Noor Aisyah Asyikin Mahat & Norizan Ahmad

Authors
  1. Sharifah Nur Aina Syed Alwee
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  2. Halim Hashim
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  3. Mysarah Maisham
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  4. Noor Aisyah Asyikin Mahat
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  5. Norizan Ahmad
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Corresponding author

Correspondence to Sharifah Nur Aina Syed Alwee .

Editor information

Editors and Affiliations

  1. Universiti Teknologi MARA, Shah Alam, Malaysia

    Shahriman Zainal Abidin

  2. Universiti Teknologi MARA, Shah Alam, Malaysia

    Rafeah Legino

  3. Universiti Teknologi MARA, Shah Alam, Malaysia

    Harrinni Md Noor

  4. Universiti Teknologi MARA, Shah Alam, Malaysia

    Verly Veto Vermol

  5. Universiti Teknologi MARA, Shah Alam, Malaysia

    Rusmadiah Anwar

  6. Universiti Teknologi MARA, Shah Alam, Malaysia

    Muhamad Fairus Kamaruzaman

Appendix—List of Cases

Appendix—List of Cases

  • Attorney General for the Falkland Islands v Gordon Forbes Construction (Falklands) Ltd. [2003] BLR 280

  • Bukit Cerakah Development Sdn. Bhd. v. L’Grande Development Sdn. Bhd. [2008] 2 AMR 597

  • Crittall Windows v T.J. Evers [1996] 54 Con LR 66

  • Cygal Bhd. v Bandar Subang Sdn. Bhd. [2004] 4 AMR 252 and Bakti Insani Sdn. Bhd. v Pembinaan BT Sdn. Bhd. & Anor OS D24 NCC 174-2011

  • Esal (Commodities) Ltd. & Reltor Ltd. v. Oriental Credit Ltd. & Wells Fargo Bank NA [1985] AC 546

  • Fasda Heights Sdn Bhd. v. Soon Ee Sing Construction Sdn Bhd [1999] 4 MLJ 199

  • Gilbert-Ash (Northern) Ltd. Modern Engineering (Bristol) Ltd. [1973] 71 LGR 162

  • Harrington & Co. Ltd. v Wooder [1914] AC 71

  • Hick v. Raymond & Reid [1983] AC 22

  • Kah Seng Construction Sdn. Bhd. v. Selsin Development Sdn. Bhd. [1997] 1 CLJ Supp 448

  • LEC Contractors Sdn. Bhd. v Castle Inn Sdn. Bhd. [2000] 3 AMR 2625

  • London Borough of Merton v. Stanley Hugh Leach [1985] 32 BLR 51

  • Lojan Properties Pte. Ltd. v. Tropicon Contractors Pte. Ltd.[1991] 2 MLJ 70

  • L’ Grande Development Sdn. Bhd. v. Bukit Cerakah Development Sdn. Bhd. [2007] 4 MLJ 518

  • Nafas Abadi Holdings Sdn. Bhd. v Putrajaya Holdings Sdn. Bhd. [2004] 1 LNS 127

  • Newacres Sdn. Bhd. v. Sri Alam Sdn. Bhd. [2000] 2 MLJ 353

  • Pembenaan Leow Tuck Chui & Sons Sdn. Bhd. v. Dr. Leela Medical Centre Sdn. Bhd. [1974] 2 MLJ 14

  • Rayack v. Lampeter Meat Co. Ltd. [1979] 12 BLR 30

  • Syarikat Panon Sdn. Bhd. v. Platinum Best Engineering Sdn. Bhd. [2011] 1 LNS 520

  • Thiam Electrical Construction Sdn. Bhd. v. Merino Odd Sdn. Bhd. [2009] 1 LNS 645

  • Tuck Sin Engineering & Construction Sdn. Bhd. v. Tee Hen Manufacturing (M) Sdn. Bhd. [2007] MJLU 416

  • Wates Construction (London) Ltd. v. Franthom Property Ltd. [1991] 53 BLR 23). Clause 30.6 (c)

  • Winstech Engineering (M) Sdn. Bhd. v. ESPL (M) Sdn. Bhd. [2011]1 LNS 811

  • Wright Ltd. v. P.H. & T (Holdings) Ltd. [1968] 13 BLR 26.

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Alwee, S.N.A.S., Hashim, H., Maisham, M., Mahat, N.A.A., Ahmad, N. (2016). Cost-Related Issues in Malaysian Construction Contracts. In: Abidin, S., Legino, R., Noor, H., Vermol, V., Anwar, R., Kamaruzaman, M. (eds) Proceedings of the 2nd International Colloquium of Art and Design Education Research (i-CADER 2015). Springer, Singapore. https://doi.org/10.1007/978-981-10-0237-3_47

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  • DOI: https://doi.org/10.1007/978-981-10-0237-3_47

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  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-10-0235-9

  • Online ISBN: 978-981-10-0237-3

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