Can the Contractor Insist on Agreeing to the Cost of Variation Work Before He Proceeds With It?

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 any variation works instructed (incl. those deemed variations such as statutory compliance), unless its validity is in question. The appointed QS (if any) is then responsible for valuation of variations […]

Set-Offs – A Revisit and Update

The Malaysian construction industry is notorious for set-off practices, both at main and subcontract levels, often imposed unilaterally and unfairly by the Employer on the Contractor and/or the Contractor on its subcontractors, respectively. Consequently disputes often arise when monetary claims are set-off by withholding any payment due or extinguished through counterclaim arising from unfinished defective […]

Time at Large – Issues and Implications

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 the construction works, most employers would require the contractor of their project to complete on time or within the extended time under the construction contract. Likewise, under subcontracts, subcontractors are […]

Coronavirus or Covid-19 ~ A Force Majeure Event?

On 30 Jan 2020, World Health Organization (‘WHO’) has declared the Coronavirus outbreak or COVID-19 in Wuhan, China a Public Health Emergency of International Concern (‘PHEIC’) following the rampant spreading and rising confirmed cases and death tolls reported in many countries. The term PHEIC is defined in the International Health Regulations (2005) as “an extraordinary […]

Subcontracting – Issues and Implications

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 the construction industry had existed since time immemorial, and it formed an integral part of building or construction projects. In Malaysia, subcontracting in its construction industry is no different, in […]