The construction industry is a complex industry with many parties involved in its process and operations, often brought together to work for a particular project.

In this article, BK Entrusty aims aims to provide readers with a better understanding of the terms Fitness for Purpose and Suitability, by answering the

“Life is uncertain, death is”. We all live in a world of uncertainties and risks, and this happens right from the very first day we

Entrusty continues to discuss on defects by focusing on the relevant provisions in the standard forms of building/construction contracts commonly used in Malaysia and contractual

In the construction industry, defects are common occurrences when the construction works of a building and/or civil engineering project is completed by the Contractor. Whilst

The construction industry is always known to be a complicated and fragmented industry, where external factors that are beyond the control of the parties involved

In the construction industry, Bill of Quantities (“BQ”) is a part and common feature in many tender and/or contract documents for construction projects. Traditionally, BQ

In almost all construction projects, changes or variations are common occurrences during the design and construction phases. It is therefore not surprising that in most

We often hear cash flow is the lifeblood of the construction industry. Yet, late payment is an endemic feature and a root cause of many

One of the common problems in the construction industry which usually has serious implications on the project and the parties concerned is termination of contract

Payments are major concerns to Contractors and Employers. As the duration of the construction projects are usually long, contract sums involved are large and payments

Letters of Intent are a common feature in the construction and engineering industry such that it is a useful tool for both parties while negotiating

This topic of claiming for extra work without a formal instruction is very topical. Strictly, where there is a change or deviation to the Works,

Defect Liability Period (DLP) is a common feature in all the standard form of construction contracts in Malaysia, i.e. PAM06 / PAM98 / JKR PWD

In this issue, we will look at the situation when the programme of works contains ‘float’ and who actually owns it if both the Employer

Before we attempt to answer this question, let us understand what it is meant by the phrase ‘concurrent delay’. As the phrase ‘concurrent delay’ suggests,

Construction contracts usually have a fixed time frame for the Contractor to complete the works (i.e. time is of the essence – time being a

The practice of holding back or setting aside a portion of monies due to the Contractor by the Client (normally referred to as the Employer

Bonds are provided as useful means of creating financial security for the Employer for the Contractor’s failure to perform his contractual obligations. Generally, a bond

Preliminaries is that part of the Bills of Quantities which describes the project and contract particulars, lists the contractor’s general obligations, states works, goods, materials

Having discussed what is Loss and/or Expense in the last article, we now will look at the requirement of notice in relation to claiming for

There are many misconceptions about what is Loss and / or Expense under construction contracts. These misconceptions arise mainly due to lack of understanding or

Most standard forms of construction contract provide for submission and/or preparation of Final Account for the project. Finality of the said Account and/or its subsequent

It is common in the Malaysian construction industry that many Contractors sub-let their works to their Sub-contractors on pay-when-paid/pay-if-paid basis. That is to say, unless

This question is as perennial as the evergreens and is of interest especially to Contractors but equally important to the Architect / Engineer / Supervision

It is important to understand the mechanism of set-off under construction contracts in relation to issues of payment due to the Contractor. Set-off is a

Most, if not all, construction contracts used around the world usually have provisions for the retention of certain amount of monies due to the Contractor

Most standard forms of construction / building contract have a provision for the retention of a certain percentage of the amount due to the Contractor.

Most standard form contracts provide for valuing of variation work which cannot be properly measured and valued using daywork rates stated in the Contract Bills.

In principal, tendered rates once contracted, shall hold firm for all variations, unless the contract provisions allow for its adjustment due to difference in quantities,

Most standard forms of building contract provide for written instruction by the Architect/Engineer/SO prior to ordering any variation works.The Contractor is obliged to carry out

In almost all construction projects, the common project objectives are to complete on time, within budget, meet quality and standard/statutory requirements. In addressingtime to complete

Subcontracting is a practice prevalent in many industries, both local and international, but most widespread and common in the construction industry. Historically, subcontracting practice in