FACULTY OF BUILT ENVIRONMENT

DIPLOMA IN TECHNOLOGY

(QUANTITY SURVEYING / BUILDING)

YEAR 2

ACADEMIC YEAR 2018/2019

ATGB3663 Building Acts and Contracts

ASSIGNMENT

No. Student Name ID. No. Assignment Mark

1. CHAN KOK XIN 17WVD03196

2. CHONG KAI DI 16WVD05774

3. LIM KUN JIE 17WVD03165

4. LIM WEI CHEAN 17WVD03399

5. LOW JIAN MING 16WVD02168

PROGRAMME : DQS2 / DBD2 (Please circle)

GROUP : 1 / 2 / 3 / 4 / 5 / 6 (Please circle)

LECTURER / TUTOR : MR. WONG FOO YEU

DATE OF SUBMISSION : 20 JULY 2018

ATGB3663 Building Acts and Contracts

Assignment – Front Cover
Page | 1 of 1

Marking Scheme (For marker’s use only)
Group assessment criteria
Definition and overview of
Standard Forms of
Contracts
The content of the report
writing (Function /
Application,
challenges/conflicts,
advantages and
disadvantages, differences)
Part 1: Report Content
Case study (Analysis of
current or past
works/projects in Kuala
Lumpur)
Discussion / Findings, and
the suitability/relevancy to
the chosen case study
Report format &
referencing (introduction,
conclusion, Turnitin, use
and consistency of caption,
heading, page number,
word count, Harvard
referencing, etc.)
ATGB3663 Building Acts and Contracts
FACULTY OF BUILT ENVIRONMENT
Very poor Poor Average Good Excellent Allocated
W/T Group Marks
(1 mark) (2 mark) (3 mark) (4 mark) (5 mark) Marks
Very minimal input for Relevant and
Irrelevant and limited Relevant but rather
definition and overview Fairly relevant but limited comprehensive
details with extensive general details in the X 2= /10%
statement or not details in the content. details given in the
mistakes in the content. content.
complete at all. content.
Irrelevant and limited Relevant and
Very minimal input for Fairly relevant but limited Relevant but rather
details with extensive comprehensive
the report writing or not details in the report general details in the X 6= /30%
mistakes in the report details given in the
complete at all. writing. report writing.
writing. report writing.
Irrelevant and limited Relevant and
Very minimal input for Relevant but rather
details with extensive Fairly relevant but limited comprehensive
the case study or not general details in the X 3= /15%
mistakes in the case details in the case study. details given in the
complete at all. case study.
study given. case study.
Irrelevant and limited Relevant and
Very minimal input for Fairly relevant but limited Relevant but rather
details with extensive comprehensive
the discussion /findings details in the general details in the X 3= /15%
mistakes in the details given in the
or not complete at all. discussion/findings. discussion/findings.
discussion/findings discussion/findings.
Not complying report and Report and referencing Report and
Report and referencing Report and referencing
referencing format, formats are almost referencing formats
formats are incomplete, formats are less
minimal effort in complete, organised are complete, X 2= /10%
unorganised with complete, organised and
compiling or not done at and with minor organised and no or
extensive mistakes. with some mistakes.
all. mistakes. minor mistakes.
Sub-total /80%
After deduct [ ] mark(s) for [ ] day(s) late /80%
Assignment – Marking Scheme
Page | 1 of 2
 FACULTY OF BUILT ENVIRONMENT

Marking Scheme (For marker’s use only)

Very poor Poor Average Good Excellent

Group assessment criteria Allocated Marks W/T Marks
(1 mark) (2 mark) (3 mark) (4 mark) (5 mark)

1. x 2= /20%
Part 2: Individual Works

2. x 2= /20%

Irrelevant and limited Relevant and

Very minimal input for Fairly relevant but limited Relevant but rather 3. x 2= /20%
Summary of the report details with extensive comprehensive 5%
summary report or not details in the summary general details in the
writing. mistakes in the details given in the
complete at all. report. summary report. 4. x 2= /20%
summary report. summary report.

5. x 2= /20%

Total Marks (Part 1 & Part 2)

No. Student Name(s) Preparation Topic(s)
P1 P2 TOTAL

1. CHAN KOK XIN 1.

2. CHONG KAI DI 2.

3. LIM KUN JIE 3.

4. LIM WEI CHEAN 4.

5. LOW JIAN MING 5.

ATGB3663 Building Acts and Contracts Assignment – Marking Scheme

Page | 2 of 2
 FACULTY OF BUILT ENVIRONMENT

Marking Scheme (For marker’s use only)

Comment (if any):

ATGB3663 Building Acts and Contracts Assignment – Marking Scheme

Page | 3 of 2
ATGB 3663 Building Acts & Contracts

Coursework Declaration

Semester: 2018/2019 Semester 1 Course Code & Title: ATGB3663 Building Acts and Contracts

Declaration

I/We confirm that I/we have read and shall comply with all the terms and condition of Tunku
Abdul Rahman University College’s plagiarism policy.

I/We declare that this assignment is free from all forms of plagiarism and for all intents and
purposes is my/our own properly derived work.

I/We further confirm that the same work, where appropriate, has been verified by anti-
plagiarism software Turnitin (please insert).

No. Name Signature Date

CHAN KOK XIN
1.
CHONG KAI DI
2.
LIM KUN JIE
3.
LIM WEI CHEAN
4.
LOW JIAN MING
5.

4
ATGB 3663 Building Acts & Contracts

Table of Contents
1.0 INTRODUCTION ................................................................................................................................. 6
2.0 Definition/Content of the chosen Standard Form of Contracts ....................................................... 7
2.0.1 Construction Industry Development Board (CIDB) .................................................................... 7
2.0.2 Public Work Department (PWD) ................................................................................................ 7
2.0.3 The Institution of Engineers, Malaysia (IEM) ............................................................................. 7
3.0 Function/Application of the chosen Standard Form of Contracts .................................................... 8
3.0.1 Public Work Department (PWD) ................................................................................................ 8
3.0.2 Construction Industry Development Board (CIDB) .................................................................... 8
3.0.3 Institution of Engineer, Malaysia (IEM) ..................................................................................... 9
4.0Challenge/Conflicts of the usage of the chosen Standard Forms of Contracts ............................... 10
4.0.1 PWD FORM CONTRACT ............................................................................................................ 10
4.0.1 CIDB CONTRACT ....................................................................................................................... 10
4.0.3 IEM CONTRACT ........................................................................................................................ 11
5.0Advantages and disadvantages of practising the Standard Forms of Contracts selected ............... 12
5.0.1 Advantages of CIDB .................................................................................................................. 12
5.0.1.1 Disadvantages of CIDB .......................................................................................................... 12
5.0.2 Advantages of PWD ................................................................................................................. 12
5.0.2.1 Disadvantages of PWD .......................................................................................................... 12
5.0.3 Advantages of IEM ................................................................................................................... 13
5.0.3.1 Disadvantages of IEM............................................................................................................ 13
6.0 Any differences between the chosen Standard Form of Contracts should be included ................ 14
7.0 DISCUSSION..................................................................................................................................... 15
10.0 INDIVIDUAL ASSESSMENT ............................................................................................................. 19
NAME: LIM KUN JIE ........................................................................................................................... 19
NAME: CHONG KAI DI ....................................................................................................................... 20
NAME：CHAN KOK XIN .................................................................................................................... 21
NAME: LOW JIAN MING .................................................................................................................... 22
NAME: LIM WEI CHEAN .................................................................................................................... 23
REFERENCES .......................................................................................................................................... 24
References ............................................................................................................................................ 24

5
ATGB 3663 Building Acts & Contracts

1.0 INTRODUCTION
Standard Form of Contracts are the agreements that utilize standardized, non-negotiated
provisions, usually in pre-printed forms. Standard Form of Contract sometimes we call that
"boilerplate contracts," or "contract of agglutination" or "take it or leave it contracts." The
terms and conditions constantly describe in detailed print, are drawn up by or on behalf of
one party to the business deal, the parties with exceptional haggle power who routinely
undertake in such business deal. With a few exceptions, these provisions do not apply to
consumers.

For the assignment of this subject which is Building Acts & Contracts, our lecturer required
us to choose three types of Standard Form of Contract to complete the assignment. Three type
of Standard Form of Contract that we choose for this assignment which is PWD, CIDB, and
IEM. The PWD is Public Work Department or Jabatan Kerja Raya, JKR. It has produced a
number of standard forms for use in public or government sector works, both covers for
building works and civil engineering works. Second is CIDB, Construction Industry
Development Board, an organization to develop the capacity and capability of the
construction industry through the enhancement of quality and productivity by placing great
emphasis on professionalism, innovation and knowledge in the endeavour to improve the
quality of life in Malaysia. Third is IEM, The Institute of Engineers, Malaysia. Standard
forms currently are only for domestic for the use in private sector civil engineering and M&E
Engineering works but the use is diminishing and now they are used primarily for
substructure works and infrastructure works on larger developments.

6
ATGB 3663 Building Acts & Contracts

2.0 Definition/Content of the chosen Standard Form of Contracts

2.0.1 Construction Industry Development Board (CIDB)
Was generally acknowledged under the Construction Industry Development Board Act 520.
They act to facilitate and provoke the extension, development, and improvement of the
construction industry in Malaysia. CIDB, a mechanism act to increase the nature of
livelihood for Malaysia's citizen through improvement of the productivity and quality of
performing the professional, innovation and also the knowledge. CIDB has now heightened
the fight or we can say competitiveness of the construction industry in Malaysia. CIDB
promote more services include Contractor's registration, provide healthy and safe and to
maintain the normalization of materials and costs of construction. CIDB Standard Form of
Contract for Building Works (2000 Edition) and CIDB Standard Form of Sub-Contract for
Nominated Sub-Contractor are two main types of Standard Form of Contract that published
by CIDB.

2.0.2 Public Work Department (PWD)

There are a number of standard forms that use for public sector works like Highway which is
for civil engineering work and also building works that produced and published by the Public
Work Department (PWD). It also is widely used by private sector contracts, and not all the
public sector work will go with the PWD 203 contract, for example, the WORLD BANK
follows the FIDIC forms of contract. The standard form included ：

JKR/PWD 203 (Rev 10/83) – without quantity

JKR/PWD 203A (Rev 10/83) – with quantities

JKR/PWD 203N (Rev 10/38) – for Nominated Sub-Contractor

2.0.3 The Institution of Engineers, Malaysia (IEM)

IEM was published in 1959 and tends to stimulate and push on the Engineering Science and
also its professional and tends to promote the sharing and exchange of idea and information
concerned to Engineering. Except for the IEM Conditions of Contract for Mechanical and
Electrical Works (M&E Works) will go with the relevant to FIDIC contract, other than that
will follow the hybrid forms. Malaysia's government shall commend to IEM because of IEM
is the unique use of standard form contracts for private sector civil engineering works and
M&E works in Malaysia.

7
ATGB 3663 Building Acts & Contracts

3.0 Function/Application of the chosen Standard Form of Contracts

3.0.1 Public Work Department (PWD)
 The development projects and infrastructure conservation which builds up by PWD for
differences administration of department, ministries, state governments and statutory
bodies (like airports or buildings).
 The remission work occurred during the famine or floods.
 Conceited for the maintenance of roads and construction repairing.
 Repair and renewal work of National Highway.
 Tends to monitor the construction, operation, toll handling and maintenance of the
tolled expressways
 To plan and coordinate human resource and financial (administration and development)
of Ministry of Work and Public Work Department.
 To monitor departments and agencies under its purview.
 To monitor the implementation of the development projects of the Client Ministries
carried out by Public Work Department.
 To give advice and support services to CIDB in the development of the country’s
construction industry and skilled workforce.

3.0.2 Construction Industry Development Board (CIDB)

 Heightened competitiveness of the construction industry in Malaysia.
 Promote more services include Contractor's registration, provide healthy and safe and
to maintain the normalization of materials and costs of construction.
 Act to facilitate and provoke the extension, development, and improvement of the
construction industry.
 To increase the nature of livelihood for Malaysia's citizen through improvement of the
productivity and quality of performing the professional, innovation and knowledge.
 Tends to push forward, to simulate the consider in regular time and to facilitate and
assist in the export of service.
 Provided some management consultancy and advisory services to the customer.
 Provided a system to maintain the information system, tends to facilitate, to stimulate
a training program experienced workers or supervisors.

8
ATGB 3663 Building Acts & Contracts

3.0.3 Institution of Engineer, Malaysia (IEM)

 Tends to preserve and protect the registration case.
 Registration should include the names, addresses and other details of professional
engineers, graduate engineers., Professional Engineers with Practising Certificate,
Inspectors of Works.
 To register the process application to assess the nature of the experience.
 Guarantee every registration of the process application must comply with the Act and
IEM policies, even if Graduate Engineers, Professional Engineers with Practising
Certificate, Engineering Consultancy Practices, Engineering Technologists and
Professional Engineers.

9
ATGB 3663 Building Acts & Contracts

4.0Challenge/Conflicts of the usage of the chosen Standard Forms of Contracts

4.0.1 PWD FORM CONTRACT
Between Malaysian Standard Form of Contract, merely PAM Form Contract and CIDB
Contract announced that the requirement of arranging and prepare the working programme
while PWD 203A Contract doesn't incorporate to this matter. It is announced that under
Clause 3.4 of the PAM Form Contract and also in CIDB Contract under Clause 5.1, must
prepare the working programme. However, the working programme requirements are banned
by clause 3.5 of the PAM Form Contract and Clause 5.2 of the CIDB Contract because it
having some official meaning over contract duties. The contractor who fails to submit a valid
and actual working programme will put himself at a harm on certification of entitlement to
the extension of time and be able to lower the number of expressed conditions operating
when the contractor related in delays event when it occurred.

Because working programme cause contractor to notice if the duration of the client that has
to prescribe is achievable because no clients want to gain a construction project with an
unacceptable duration. It also can help the contractor to calculate some overhead costs such
as running cost, supervision cost and also the management costs. The working programme
can also help the contractor to calculate and certainly check the tender estimate. The
contractor can also submit the working programme together with the tender schedule with
their tender price, this will help contractor to strengthens their tender price as it illustrates to
the clients that contractor already knows how to construct the project through the working
programme.

4.0.1 CIDB CONTRACT

There are a number of examples stated that the use of the CIDB Contract had not lead to
overall contentment and may have really been less generative than common contracts. CIDB
Contract has been confederate in the past events with low-quality projects, leakage, crippled
projects and other such disadvantages conveyed by the contractor. There were also some
examples where some projects confer and constructed by the contractor using CIDB Contract
but conduce to the building project postpone and low-quality. Contractors also not good
workmanship, especially in using the waterproofing materials, column and also the beam
calibration.

The greater part of the contractor related in CIDB Contract received from poor productivity
and monetary performance. This is related to the events that the contractor needed to pay the

10
ATGB 3663 Building Acts & Contracts

supplier first to purchase some components. It is a high resource investment where 30% of
the amount of the building project is to be paid first. Delay in the payment means that the
component that supplied will be delay also, will also influence the productivity of the
building projects. During 2008, Malaysia's government made the employ of CIDB Contract
compulsory in all recently constructed public building. The significance of competent
contractor to build up the public building has increased. But there are still finite numbers of
the contractor in Malaysia fall upon CIDB Contract that can engage the CIDB projects.

To become an expert in CIDB Contract, the contractor needed to provide themselves with
essential knowledge and information in implementing the CIDB Contract. Their organized
system also requires some changing with some best regards to their procedure, practice,
program and management to enfold CIDB Contract.

4.0.3 IEM CONTRACT

Clause 10 Unfixed Materials and Goods stated that fixed materials and goods or fixtures do
not need any negotiation because in the law of the property stated that there is the property of
fixed property owner (Employer), but this is not good for both parties, and it is impossible to
understand the contract in detail. Not unusual regarding certain Standard Forms of Contract
to award the belongings of goods and materials belong to the employers or brought goods and
materials to the site. There is a part of the clause is quite a distinct, stated that belongings of
the materials and goods can only convey to the employer after contractor paid pursuant under
Clause 47 Payment to Contractor and Interim Certificates. (KHENG, 1992)

Due to the payment to the Contractor of unfixed materials and goods, the sale is settled and
belongings handle from Contractor to the Employer. But a Stable Law stated that belongings
handle at the same time with hazard but this Clause appears to state that only belongings and
not the liability of the hazard, or hazard themselves. Needed to observe of this Clause in
detail to find out the actual meaning and scope altogether with its efficiency. But the title
retention effect of this Clause is useless. Transfer from place of the site to another place does
not need any signature of the engineer, to reward so would force much bureaucratic
enforcement to the disadvantages of all parties worried. However, the Clause of unfixed
materials and goods should be regulated accordingly. (KHENG, 1992)

11
ATGB 3663 Building Acts & Contracts

5.0Advantages and disadvantages of practising the Standard Forms of Contracts selected

5.0.1 Advantages of CIDB
 Tended to pushing the Malaysian construction industry to the world.
 developing and improve the development of the construction industry through CIDB
 Tends to facilitate and provoke extension, improvement and also the development of
Malaysia's construction industry.
 Consort the needs of Malaysia's construction industry
 Planning for the future direction of the construction industry
 Tends to solve the problem that faced by the construction industry

5.0.1.1 Disadvantages of CIDB

 Having a length and legal complexity means too long than others contract
 Includes the hidden condition in one form of contract.
 Most of the customers do not want to read the standard form because of its length and
legal complexity
 Short and easy construction work is often considered complicated by both parties.

5.0.2 Advantages of PWD

 Provide the most basic information and services to customers.
 Services provided by PWD are reliable because programs and systems are the most
standards.
 Offer a property management service.
 Increase the currently engineering expertise and develop the human resource and new
competency.
 Tends to cultivate a great relationship with the community.
 Preserving the environment in service delivery.

5.0.2.1 Disadvantages of PWD

 Just used in public or government sector works, building works and civil engineering
works
 No way such a contract is able to cover all the various situations envisaged in the
industry.
 Using of PWD forms will restrict the chances of the contractor to offer a price with
their own opinion of the works and risk valuation.

12
ATGB 3663 Building Acts & Contracts

5.0.3 Advantages of IEM

 Provide professional development programs for graduate engineers.
 Professional engineers are provided with a Continuous Professional Development
program to meet the requirements of IEM to update their physical education curriculum.
status.
 Provides engineering advancement training for IEM members and the public.
 Exhibitions, secretariat services, publications and other activities management.
 Promote and impart knowledge and provide any other solutions.

5.0.3.1 Disadvantages of IEM

 The development of the construction industry is dynamic, subject to constant changes
in new technologies/laws, some are required.
 Each time a revision is made, must carefully study the new version or revision to
determine if it used or changes needed.
 The contract manager is the engineer and all risks and responsibilities belong to them.

13
ATGB 3663 Building Acts & Contracts

6.0 Any differences between the chosen Standard Form of Contracts should be included

PWD IEM CIDB

- for use in
public/government sectors
work.
-cover for building works
and civil engineering works.
-Standard form:
JKR/PWD 203(Rev 10/83) – sector civil engineering and
without quantity
JKR/PWD 203A (Rev
10/83) – with quantities
JKR/PWD 203N (Rev
10/38) – for nominated Sub-
Contractor
JKR/PWD (Rev 10/38) – for
Nominated Suppliers
PWD Form DB/T (Rev
1/2010) – for Design and
Building Turnkey Contracts
- hybrid forms of the
Institute, except for the
Mechanical and Electrical
standard which follows
FIDIC standard form.
-for domestic use in private
M&E Engineering works
-Standard forms:
-IEM Conditions of Contract
for Works mainly of Civil
Engineering Construction
-IEM Standard Conditions
of Sub-Contract
IEM Conditions of Contract
for Mechanical and
Electrical Works
-emphasis on professional,
innovation and knowledge
to improve the quality of life
in Malaysia
-enhance the
competitiveness of the
construction industry
- for building works whether
in government or private
sector
-Standard forms:
-CIDB Standard Form of
Contract for Building Works
(2000 Edition)
-CIDB Standard Form of
Sub-Contract for Nominated
Sub-Contractor

14
ATGB 3663 Building Acts & Contracts

7.0 DISCUSSION

There are a number of Standard Form of Contract that have been wisely used in Malaysia,
which is Institution of Engineers, Malaysia, Public Work Department, Construction Industry
Development Board and Pertubuhan Arkitek Malaysia.

After completed partical of the assignment, we have got some discussion. Now Standard
Form of Contract has been widely used in Malaysia. The purpose of our use of Standard
Form of Contract is to allow both parties to trade under legal conditions, because Standard
Form of Contract is very binding on both sides. Of course, Malaysia's Standard Form of
Contract is almost up to the international standards, and even a small number of Standard
Form of Contract have been used in foreign countries, and they have received many praises.
Standard Form of Contract gives one of the parties the right to receive compensation in the
event of loss, or to obtain the rights that should be obtained, and the responsibilities.

Of course, the use of Standard Form of Contract is also limited and constrained by the
conditions in the contract, which are often the source of failure for both parties. The length of
the contract provisions, the legal provisions are quite complicated. Signing a contract without
carefully reading the contents of the contract can cause great losses. This has always been one
of the reasons for the failure of cooperation and can cause huge losses to both parties.

15
ATGB 3663 Building Acts & Contracts

8.0 CASE STUDY

The passed project that we have selected for our case study which is “THE NEST”, a
residential condominium located at SETAPAK (Jalan 2/23D, Off Jalan Genting Klang, 53200
Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur). This residential is now complete and
the project gross development value which is around RM300 million and the total area of this
residential is 8217.06 m².

CLIENT: SIERRA CUBE SDN BHD,

MAIN CONTRACTOR: Pembenaan Leow Tuck Chui & Sons SDN BHD.

SUB_CONTRACTOR: ABADI Piling SDN BHD, Arkitek L2CA SDN BHD, Jurutera
Perunding Sejahtera, LMC Consult SDN BHD and ZAK Aria-LEE and Partners SDN BHD.

NOMINATED SUB-CONTRACTOR: ABADI Piling SDN BHD, LMC Consult SDN BHD
and Jurutera Perunding Sejahtera.

The building's recommendation for the area is a mixed-use building with work/living space.
There are 3 blocks of apartment services below the apartment, including the A, B and C
areas, which will have some office work areas. Area A consists of 21 levels, Area B consists
of 26 levels, and Area C consists of 32 levels, with a total of 330 units. Each building has a
5th floor podium parking lot and a 2nd floor underground car park. According to the project,
the best suitability or relevance standard form of Nest residential buildings is the CIDB
standard contract form. CIDB is suitable for construction projects in private sector employers
or government departments. Therefore, the CIDB standard contractual form can serve as an

16
ATGB 3663 Building Acts & Contracts

agreement between the parties to provide a basic legal framework that demonstrates the legal
relationship between the parties, including obligations, obligations and rights.

And CIDB tends to increase the competitiveness of development of construction industry in

Malaysia, and tends to pushing CIDB to the World Class. CIDB can also help contractors
apply for extended time and liquidated damages. Construction contracts typically allow for
extension of the construction period if the delay is not a contractor's failure contractor.
Liquidated damages are damage suffered by the employer when it is not completed. This is a
form of monetary compensation, starting from the date of completion. (Onn, 2018)

17
ATGB 3663 Building Acts & Contracts

9.0 CONCLUSION

After completed this assignment, after we handed it to the lecturer, we discussed and got
some ideas. We did quiet a lot of research from internet, some books related to Standard
Form of Contract, asking some experienced senior that we meet at college, and also asking
some experienced contractor or employers. From this research, we learned more about what
actually a Standard Form of Contract.

Standard Form of Contract actually a contract that binding between contractor and also the
employers during construction of building, its is vary legally. A Standard Form of Contract is
a protocol supported on or based on a commitment or acceptance. All or most of the terms
and conditions should not be negotiated individually. Terms and conditions can be on the rear
of the bill, quote, terms and conditions of the transaction, and also the invoice. The three type
of Standard Form of Contract that we choose to complete this assignment which is PWD,
CIDB, and IEM.

Public Work Department, these are accustomed forms of contract based on drawings and
specifications 203 or bills of quantities 203A generated for use in the common sector and
cabinets projects in both building and civil engineering contracts. The Construction Industry
Development Board has generated two Standard Form of Contract. The first is the CIDB
Standard Form of Sub-Contract for Nominated Sub-Contractor. It is accepted that they are
counting on distributing Standard Form of Contracts in the esteem of design, build and also
civil engineering works tomorrow. The Institute of Engineers, Malaysia forms of Contract are
not widely used as construction contracts in Malaysia's construction industry except for an
uncommon case where the contract is finite in range to sub-structure works or infrastructure
works concerned with the growth of a non-government nature.

18
ATGB 3663 Building Acts & Contracts

10.0 INDIVIDUAL ASSESSMENT

NAME: LIM KUN JIE
STUDENT ID: 17WVD03165

Standard format contracts (sometimes referred to as additional contracts, contractual

contracts, accepting or leaving contracts or model contracts) are contracts between two
parties, where the terms or conditions of the contract are stipulate by each party and the other
party has a little or no authority to negotiate. The favourable terms are therefore placed in the
"accept or leave" position. Although these types of contracts are not illegal in their own right,
there are very unreasonable possibilities. Moreover, if there is ambiguity, this ambiguity will
be resolved against the party drafting the contract language.

I think that The Construction Industry Development Board (CIDB) is the best suitable
Standard Form of Contract that available in Malaysia’s construction industry. Construction
Industry Development Board was generally acknowledged under the Construction Industry
Development Board Act 1994 (Act 520) to adjust, exploit and promote the construction
industry all along to measure up entire competitiveness.

The main objective of CIDB is “to exploit them the ability and skill of the construction
industry through the enhancement of quality and outputs by establishing the largest focal
point on professional, innovation and information in the strain to make the quality of life
much better.” The Board advised the Federal and the State Governments, and also the others
stakeholders in trouble touching or linked with the construction industry. CIDB is now
attracting attention and has been widely used in the construction industry.

The Perumahan Penjawat Awam 1Malaysia (PPA1M) project at Metropolitan Kepong

(MRR2) was established proud history by receiving a QLASSIC score of 76% out of 100%.
It is the primary cabinet residential project for civil employees to evaluate with the Quality
Assessment System in Construction (QLASSIC) rating system. The Perumahan Penjawat
Awam 1Malaysia (PPA1M) project is cabinet's inexpensive housing program for civil
employees, specifically those who with lower incomes.

The PPA1M project at Metropolitan Kepong (MRR2), which lay over an area of 8.20 acres,
is situated next to Kepong Metropolitan Park. The project consists of two thirty-six storey
blocks with an overall of 1230units. There is four class of units available, ranging from 850-
square feet to 1500-square feet. It is developed by JL99 Group and the primary contractor for
the project is Binastra Construction (M) Sdn Bhd.

19
ATGB 3663 Building Acts & Contracts

NAME: CHONG KAI DI

STUDENT ID: 16WVD05774

Throughout this assignment I have done much research about the standard form contracts
use in construction projects. Standard Form Contracts are agreements that employ
standardized, non-negotiated provisions, usually in preprinted forms. These are sometimes
referred to as “boilerplate contracts,” "contracts of adhesion," or "take it or leave it" contracts.
Besides, I also understood about there are few categories of standard forms such as public or
government sector and private sector.

By and large, it seems clear that the selection forms of contract are a crucial factor in the
performance of a construction project. It shows that the use of contract documents either
PAM or PWD 203A is dependent on the project owner or employer, type of project as the
nature of a project and financing involved. The understanding of the contents of forms of
contract can assist the parties who involved in managing projects to be more effective and
efficient. So, consciousness understanding the problem is caused by legalese. From this
study, it was found that the Standard Form construction contracts provide a basic legal
framework for identifying the rights, obligations and duties of the parties as well as establish
the ambit of the powers and duties by the contract administrator.

20
ATGB 3663 Building Acts & Contracts

NAME：CHAN KOK XIN

STUDENT ID：17WVD03196

In my opinion, I consider Construction Industry Development Board (CIDB) is the most

appropriate to the Malaysian construction industry because the standard form of construction
contract has greatly contributed to the development of Malaysian architecture. The
Construction Industry Development Board (CIDB) is an association to build up the limit and
capacity of the development business through the upgrade of value and profitability through
the enhancement of quality and productivity by placing great emphasis on professionalism,
advancement and information in the undertaking to enhance the personal satisfaction in
Malaysia.

The CIDB has many completed development projects. The projects include the Refinery and
Petrochemical Integrated Development (Rapid) in Pengerang, east coast rail line from Port
Klang to Tumpat, high-speed rail from Kuala Lumpur to Singapore, Pan Borneo Highway in
Sabah and Sarawak, Damansara-Shah Alam elevated highway, light rail transit from Bandar
Utama to Johan Setia, West Coast Expressway from Banting to Taiping and mass rapid
transit line 2. In addition, there are commercial real estate projects which will boost
construction demand even further such as Bandar Malaysia and Cyberjaya City Centre.

There is no basic answer for the making of the ideal development get, this is nothing
unexpected, given that it has been watched that "significant development ventures are the
most complex circle of human undertaking shy of fighting". Accordingly, it is just judicious
that those going to set out on such an undertaking should give an equivalent measure of
thought to the planning of the record that will oversee the course of that undertaking.

21
ATGB 3663 Building Acts & Contracts

NAME: LOW JIAN MING

STUDENT ID: 16WVD02168

PWD was usually for the public and government sector work and it is represented
government. The contract administrator normally will be the superintending officer. Like
under the clause 51(a) PWD 203A Form, the contractor fails to proceed regular with the
work. The employer can through by the clause and determinate the contractor and ask the so
to send the notice for the contractor. The Contract administrator of the IEM normally is
engineer. When the sector work or project happen any case of rise or liability falls. All the
responsibility is under the engineer. The standard forms of IEM are very similar, and many
contracts will place into the sector work.

22
ATGB 3663 Building Acts & Contracts

NAME: LIM WEI CHEAN

STUDENT ID: 17WVD03399

Standard form of contract is a form which are usually in a printed form. This form is
published by an institution and organization of industry. The term or conditions set out by
standard form on which the contract between the parties are to be carried out. It will consider
to be agreed and not subject to any negotiation and amendment. Standard forms are usually
appropriate for a wide range of common works and projects. (HAN, n.d.) The standard form
of contract is produced by four institution and organization in Malaysia which is the Institute
of Engineers, Malaysia (IEM), Pertubuhan Arkitek Malaysia (PAM), Jabatan Kerja Raya
(JKR) / Public Works Department (PWD) and Construction Industry Development Board
(CIDB).

The standard form of contract that I selected to be my explanation is Construction Industry

Development Board (CIDB).The Government through CIDB Malaysia is responsible for
developing and enhancing the development of the construction industry in Malaysia. It will
promote and stimulate the development, improvement and expansion of the construction
industry. Coordinating the needs and wants of the Construction Industry. Planning the
direction of the Construction Industry. Besides, addressing the pertinent issues and problems
faced by the Construction Industry. After that, making recommendations in the formulation
of policies for the Construction Industry.

Apart of that, one of the construction projects in Malaysia under the CIDB is Kuala Lumpur
Sports City. Its high-quality construction, adhering to primary prerequisites of quality, safety
and professionalism, makes it a model project to emulate. Cited as a "one of its kind" stadium
complex, KLSC has garnered CIDB 5-star award and an ISO award from Hong Kong. It was
also shortlisted for World Architecture Festival 2017 in Berlin.

In my opinion, I think Construction Industry Development Board (CIDB) is the best suitable
to the construction business. This is due to the service of CIDB also include registration of
contractor, CIDB green card, provide courses on health and safety, standardization of
construction cost and materials.

23
ATGB 3663 Building Acts & Contracts

REFERENCES
References
FAIR CONTRACT. (N.D., N.D. N.D.). FAIR CONTRACT.ORG. Retrieved from FAIR
CONTRACT.ORG WEB SITE: http://faircontracts.org/problem

KHENG, I. O. (1992, OCTOBER 27). I.E.M CONDITIONS OF CONTRACT . A

COMMENTARY, pp. 17,18.

KHENG, O. C. (2002, MAY 31). STANDARD CONSTRUCTION CONTRACTS IN

MALAYSIA Issues and Challenges. Advocates and Solicitors STANDARD
CONSTRUCTION CONTRACTS IN MALAYSIA, pp. 1-17.

MACDONA IDILLING ATTORNEYS. (2010, JULY 31). MACDONA IDILLING

ATTORNEYS. Retrieved from MACDONA IDILLING ATTORNEYS WEB SITE:
https://www.macdonaldillig.com/understanding-the-pros-and-cons-of-standard-form-
construction-co.html

Nicholas Gould, P. (N.D., N.D. N.D.). Con ict avoidance and dispute resolution. Con ict
avoidance and dispute resolution, pp. 1-3.

Onn. (2018, july 12). STANDARD CONSTRUCTION CONTRACTS IN MALAYSIA.

Retrieved from STANDARD CONSTRUCTION CONTRACTS IN MALAYSIA
WEB SITE: http:/www.academia.edu

PETURSSON, B. K. (2015, JANUARY). DISPUTES AND CONFLICTS WITHIN

CONSTRCUTION CONTRACTS IN THE CONSTRUCTION INDUSTRY.
DISPUTES AND CONFLICTS WITHIN CONSTRUCITON CONTRACTS IN THE
CONSTRUCTION INDUSTRY, pp. 1-68.

Rajoo, P. D. (2014, NOVEMBER 11). AIAC INTERNATIONAL ARBITRATION CENTRE.

Retrieved from AIAC INTERNATIONAL ARBITRATION CENTRE WEB SITE:
https://aiac.world/news/82

Zuhairah, A.A.G. ,Azlinor, S. ,Rozina, M.Z. (N.D., N.D. N.D.). Alternative Dispute
Resolution in the Malaysian. Alternative Dispute Resolution in the Malaysian, pp. 51-
74.

24