Feb 27, 2012

Contract Documents And Standard Forms (in Construction Projects)

As we know, in a project it consists several different parties. Before project begins we must ensure  that each party has a defined and agreed set of duties and responsibilities. All these duties and responsibilities are incorporated in various contract documents.

Some transactions, including in construction industry, are governed entirely by predetermined standard terms and conditions. This type of terms and condition are known as standard form contract. This can provide more convenient to parties involve, and may avoid ambiguity and disputes.

Usually standard form contracts are written (with assistance by Attorney General Depatment) and used by government departments (especially by Public Works Department)(PWD) and agencies (including statutory bodies) for contracts that they pay for. In Malaysia, the most famous form of this type is PWD 203/203A (the latest is 2010 version).

Another type of standard form contract  is written by a professional body for private sector clientele, such as form PAM 2006 version written by Pertubuhan Akitek Malaysia (PAM) together with the Institution of Surveyors Malaysia (ISM).

The Institution of Engineers, Malaysia (IEM) has introduced IEM form for works mainly of civil engineering construction. This standard form is known as IEM.CE 1/89.

In year 2000,  the Malaysian Construction Industry Development Board (CIDB) introduced a standard form of contract for building works, commonly known as CIDB 2000 form.

To support, and in addition to the above-mentioned forms, each respectively authorities or bodies has their own standard forms of sub-contracts, such as:

i.    PWD 203N—for nominated sub-contract works for government projects;
ii.   PAM sub-contract form—for nominated sub-contract works under PAM main  contract;
iii.  IEM Sub-contract form for civil engineering works; and
iv.  CIDB standard form of sub-contract—for nominated sub-contractor.

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