Professional Documents
Culture Documents
IN MALAYSIA
Issues and Challenges
The becoming construction industry in Malaysia from the late eighties to 1997 has
seen many mega projects being implemented and in many of these, contracts have
been drafted to tailor suit the particular need and desires especially of the promoters
of the projects. These projects include Kuala Lumpur International Airport,
Putrajaya, Projek Lebuhraya Utara-Selatan (PLUS) and others. Some common
features of these contracts are that the allocation of risks are very much inclined in
favour of the Employer, professionals are answerable to what are known as the
Employers Representative and others. These contracts more often than not are
substantially and extensively amended versions of FIDIC Standard Forms.
What has been discussed above is an overview of the use of standard construction
contracts in Malaysia. What follow below is a discussion of some aspects of
standard construction contracts.
The various IEM Standard Forms and PWD 203 Forms require the submission of a
performance bond by the Contractor.23 PAM 98 does not require the submission of
a performance bond but, from the writers experience, there is invariably a
provision in the letter of award (which is expressed to be part of the contract) or in
the bills of quantities (in what is called Preliminaries) that requires its submission.
In the CIDB Form, the requirement for the submission of performance bond is
optional.24 In PWD 203 Forms, this is required via Clause 37.
23
Clause 37 for IEM. CE 1/89 Form, Clause 23 for IEM. ME 1/94 Form, Clause 24 for IEM. CES 1/90 Form, and Clause
37 of PWD 203 Form.
24
Option Module F.