SEMINAR PART 2: Construction Contracts
We now have suites of contracts from PWD, PAM 2006, IEM, KLRCA 2017, numerous international construction contracts like FIDIC 2017, JCT, NEC4 2017 and a couple of construction industry endorsed contracts published by the CIDB including STCC 2015 (the first standard form of construction contract in the world to attain the Plain Language Commission UK’s Clear English Standard accreditation) and MTCC for Subcontract Works 2007.
Are they all fully fit for the purposes of their users as we head towards 2020?
Consider the following:
- Are they all consistent and compatible with the provisions in the Construction Industry Payment and Adjudication Act 2012 (CIPAA)?
- Are they all flexible and comprehensive enough to suit the ever-demanding needs of their users – the client and contractor or the contractor and subcontractor?
- Are they all lean enough so that they may be administered more efficiently?
- Are they all sustainable enough so that they don't need to be updated too frequently or even replaced too soon?
- Do they represent what might be in the construction industry’s best interest?
- Are the concepts and clauses provided in the contracts modern enough and keeping in line with new procurement methods internationally?
- Are the contracts written in modern plain language that best serves the users’ needs in keeping with modern international standards?
- Is the content written in clear unambiguous language that can help prevent unwarranted disputes?
- Are the contracts user-friendly?
- Are the contracts focused on dispute avoidance and are the dispute resolution processes encouraging amicable resolution of disputes?
These form the basis of the review of standard forms of construction contract currently used in Malaysia and what further innovations may be needed to further improve current
