MBAM Section - Master Builders Association Malaysia

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MBAM Section - Master Builders Association Malaysia
MBJ Volume 1 & 2 2011 • RM10.00
www.mbam.org.my
KDN PP 4066/03/2012 (029490)
Memorandum Of Agreement
Signing And Launching Of Ipd Oum & Mbam Programmes
Mbam Open House 2011
Mbam
Dialogue Meeting
With Cidb Chairman
MBAM Meeting With The
Department Of Polytechnic
Education
Mbam Participation At The
2 International Infrastructure
Investment & Construction
Forum 2011
nd
Content
Content
EDITORIAL
3. From The Desk of MBAM President Economic Transformation Programme
MBAM SECTION
Activities
5. Mbam Open House 2011
6. National Seminar In Built Environment Report
8. Report Of Meeting Between Mbam And The
Department Of Polytechnic Education (Dpe),
Ministry Of Higher Education, Malaysia (Mohe)
12. Memorandum Of Agreement Signing And
Launching Of Ipd-Oum & Mbam Programmes
33. Mbam Hopes Government Will Relax Policies For
Construction Workers - Bernama
Worker Shortage Could Hit Etp Plans
- The Star Online
34. Majlis Menandatangani Memorandum Perjanjian
Antara IPD - OUM dengan MBAM
Kursus Baru Perubatan Dibeku Lima Tahun
- Berita Harian
Kursus Baru Perubatan Dibeku - Utusan Malaysia
35. Signing Memorandum of Agreement Between
IPD - OUM and MBAM
Medical Course Freeze Gets Nod - The Star
16. Report On Mbam Dialogue Meeting With Cidb
Chairman, Datuk Ir. Hamzah Hasan
36. MBAM DIARY 2011
Talk / Seminars / Conference / Workshop
48. MBAM LIBRARY
18. Report On Mbam Participation At The 2nd
International Infrastructure Investment &
Construction Forum (Iiicf) 2011, Beijing, China
ARTICLES
22. Mbam Construction Continuing Professional
Development (Ccpd)Training Programme For
Year 2011
56. Site Records For Construction Contracts (Mixed
Development Construction Projects) - On-Site
Management & Monitoring During Construction
MBAM in the news
62. Contract Administration For Site Personnel
31. Mbam Suggests Reduction Of Import Duty And
Sales Tax For Heavy Machinery - Bernama
68. Construction Contract & Management Issues
32. Relax Terms For Foreign Workers - The Edge
MBAM Journal Advertising Rates, Application and Order
Form and Survey Form
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50. Arbitration In The Construction Industry
MASTER BUILDERS JOURNAL is a quarterly journal published by
MASTER BUILDERS ASSOCIATION MALAYSIA,
2-1 (1st Floor), Jalan 2 / 109E
Desa Business Park, Taman Desa
58100 Kuala Lumpur, Malaysia.
Tel : +603-7984 8636
Fax : +603 7982 6811
e-mail : [email protected]
Web page : http://www.mbam.org.my
MBAM Council Members for July 2010 / June 2012
Editorial
This edition of the MBJ Vol. 1 & 2/2011 will cover the activities of
the Association from January to May 2011 in order to meet up with
the Publication timeline. The Association will endeavor to publish Vol.
3/2011 by third quarter and Vol. 4/2011 by the fourth quarter so as to
meet the needs of members for timeline information and news on the
construction industry.
Our theme for this edition is on the Economic Transformation
Programme (ETP). The Government has set up the Performance
Management and Delivery Unit (PEMANDU) to come up with the
ETP, i.e. a comprehensive effort to draw up the implementation plan
and roadmap that will transform Malaysia into a high income nation by
2020. ETP is an economic transformation programme which will not
be dependent on public funding but instead the private sector fund.
92% private sector investment has been identified through economy
driven by innovation and shift to higher value-added activities. 131
entry point projects have been drawn up transforming the Malaysian
economy and delivering high in GNI to become a high income nation.
3.3 million jobs will be created encouraging employment rich growth
and enabling all Malaysian to share in the benefits.
In this edition, you will also see MBAM playing an important role to
support the Government’s transformation programme in the education
industry through its human capital development programme. On 5th
May 2011, a new milestone is recorded for MBAM as the signing of
a Memorandum of Agreement between MBAM and the Institute of
Professional Development, Open University Malaysia (IPD-OUM)
to conduct tailored-made industrial executive diplomas and executive
bachelor programmes for professionals in the construction industry
is an achievement to be applauded. Participants of the programmes
will be awarded with recognized qualifications through formalized
competency-based learning developed and organized by MBAM while
the quality and standard of delivery are being guided and monitored
by OUM.
Looking for Write Ups / Article Contributions for
Master Builders Journal (MBJ)
Master Builders Association Malaysia (MBAM) is looking for relevant
articles to include in the coming 3rd Volume of MBJ 2011. We would like
to have articles on “Green Construction”. Towards this end, we request
for contribution of articles in the hope that through sharing knowledge
and experiences the whole construction community can benefit from such
inputs. However, should you want to contribute articles on other topics
that are relevant to the construction community you may do so as well
before 20th July 2011.
How to submit your article:
Topic: Related to Green Construction
Length: 6 x A4 pages single spacing plus illustrations
Method of delivery:
Send to email address: [email protected] in Word file or Pdf
format.
Decision to publish is solely at the discretion of the Publication
Committee.
Material Deadline: 20th July 2011.
Advertisements
As you all know the MBJ is a well sought after publication by members,
academics and players in the construction industry.
However, the publication requires the support of advertisement from
members. As such, the Association would appreciate it if members can
consider advertising in the MBJ to offset the cost of printing and to help
ensure the cost of subscription of the Journal is kept at a minimum.
From the Desk of MBAM President
Economic Transformation
Programme
1.Knowledge Workers
Human capital is the bedrock of the high-income
economy. However the construction industry has
always faced the challenge of shortage of skilled
workers and lack of construction professionals in this
industry. There is also a critical need to replenish the
pool of skilled construction manpower as the majority
of skilled workers are already ageing. This, in addition
to the issue of brain drain are critical issues to be
addressed going forward.
he theme for MBAM’s 57th Anniversary dinner
celebration, “Leading the Construction
Industry Through Transformation”, reflects
our keen commitment in playing a key role towards the
transformation of the construction industry, in helping
the government achieve its vision of a fully developed
economy.
The Economic Transformation Programme (ETP),
presented to the public in September 2010 by Minister in
the Prime Minister’s Department YB Senator Dato’ Sri Idris
Jala, Chief Executive Officer, Performance Management
and Delivery Unit (PEMANDU), has unveiled large scale
and ambitious infrastructure projects. We are encouraged
to note that these projects are expected to set the stage for
the construction sector to rebound.
In order to overcome these challenges and as we shift
towards a knowledge-based economy, it is necessary
to equip ourselves as knowledge workers.We cannot
continue to rely on cheap foreign labour. At the
same time, there is much to be done to upgrade the
level of professionalism of our industry. To boost
productivity and propel the industry to a higher level
of professionalism, we must focus our efforts of the
continued development of skills, knowledge and
competency of our workforce. It is our vision to see
the industry transform itself into a knowledge-based
industry, with knowledgeable, skilled, dynamic,
creative and innovative human resources, through
the continuous learning and upgrading of skill-sets.
By adopting this learning culture, the industry can
leverage on knowledge as our competitive advantage,
thus enabling us to grow and further advance.
To achieve the government’s vision of a fully-developed
nation status, it is no longer sufficient to depend on
the knowledge and experience of the past. Projects
today are far more complicated than ever before. They
involve larger capital investments, embraces several
disciplines, widely dispersed project participants,
together schedules and stringent quality standards.
As such, it is necessary for the workforce to develop
and upgrade its capabilities in order to meet these
challenges, and further develop the necessary resilience
to face international competition.
2.Higher Mechanization & Use of Latest Technology
The construction industry has traditionally been very
labour intensive. To bring the industry to a higher
level of competitiveness, and in order to address the
critical challenge of shortage of skilled manpower, it
is necessary to seek alternative approaches to enhance
our productivity, such as leveraging on mechanization
and the use of construction-enabling technology.
We hope to be able to impress to PEMANDU that MBAM
will play its role to support the government’s initiative to
meet the goals as underlined in the ETP. In order to realise
this vision, it is crucial for the construction industry to
transform itself to achieve higher productivity, better
efficiency and enhanced professionalism. This can be done
through the 3 key approaches set out below.
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Master Builders
1 s t & 2 n d Quarter 2011
From the Desk of MBAM President
More efficient construction methods, such as advanced
system formwork as an alternative to conventional
timber and plywood formwork, and Industrialized
Buildings Systems (IBS) are ways which can help us
to achieve labour, time and cost savings, in addition to
less re-work and fewer defects.
While many are still reluctant to embrace the latest
construction technology due to high initial investment
costs and the intial learning curve involved in adopting
new processes, however these will ultimately translate
to higher productivity, cost and time savings, and
improved safety and quality.
At the same time, continuous upgrading of skills is vital
to be in line with the advancements in construction
technology and methods. With continual manpower
development and technological advancement, we can
establish a progressive and sustainable construction
industry that helps propel our economic growth and
meet our environmental responsibility.
In our efforts to develop a more high-tech industry,
this will also help to attract more local workers to
join the industry, as it will transform the negative
image of the industry from being dirty, dangerous
and demanding to a better environment with more
modern standards.
As for Industrialized Building Systems, we have
a lot to learn from our peers in the region, such as
Singapore. Through industrialization of construction,
productivity can be enhanced, work processes can
be simplified and workers’ exposure to dangerous
situations can be reduced. At the same time, it will
help to reduce our dependency on foreign labour.
approach of ”brick and mortar” construction to “click
and mortar”.
On the same note, continuous efforts in research &
development are needed in order to improve processes,
and raise the standards of productivity and efficiency,
towards achieving a higher level of competitiveness.
To drive the industry towards sustainable construction
and as part of our commitment to the environment,
the adoption of environmentally friendly technologies
is another area which offers opportunities for further
improvement. The long-term growth of the industry
has to be sustainable in order to preserve the quality of
life for our future generations.
3. Application of Information Communication
Technology (ICT)
One of the key approaches towards improving
construction productivity and sustaining growth is
to leverage on the application of ICT. To sustain and
facilitate further growth of the construction industry,
the industry must move beyond the traditional
Master Builders
1 st & 2 nd Quarter 2011
As an industry, we need to embrace technology
and grow into a more technologically advanced
and progressive sector to be on par with world-class
builders. With the advancements in ICT, we must
fully leverage on technology-enabled platforms for
collaboration, digital information exchange and
sharing information online. One example is the use
of tools such e-Document Management Systems
(eDMS) to complement existing processes in the
management of documentation. The task of managing
all information in the design and construction of a
facility has been a challenge. However, the use of
technology-enabled platforms such as eDMShave the
potential to enhance the coordination of information
and communication between all parties.
Another area for application is in the development
and use of advanced software such as Virtual Design
and Construct, or more commonly known as Building
Information Modeling (BIM). BIM is one of the
most promising developments in the architecture,
engineering and construction industry, enabling an
accurate 3D model of a building to be constructed
digitally. BIM technology could greatly enhance the
efficiency and productivity resulting in optimal costs,
resources and project durations. The adoption of BIM
will bring about greater integration and collaboration
between developers, designers, builders and fabricators
across the entire construction value chain.
As we continue raising the bar for the industry’s
standard of performance, I encourage industry players
to step forward and make greater use of technology
in order to place ourselves on par with international
builders in facing global challenges.
As we embark on this journey of transformation, the
continued commitment from all parties is essential
in order for us to grow into world-class, innovative
and knowledgeable total solution providers. MBAM
will continue to play its effective role to lead the
construction industry with various initiatives and
programmes to transform the industry, in tandem
with the Economic Transformation Programme to
achieve a high income nation by 2020.
Kwan Foh Kwai JMN
MBAM President
4
MBAM Section
ACTIVITIES
MBAM
OPEN
HOUSE
2011
MBAM Open House 2011 held on Friday, 25th February 2011 at
Ballroom 1, Sime Darby Convention Centre, Kuala Lumpur was well
attended by more than 180 participants comprising Council Members,
Members, leaders from allied trade associations and professional
institutions as well as government officials. The occasion aimed at
providing participants the opportunity to make new contacts, exchange
information and promote business opportunities and co-operation.
MBAM President Mr Kwan Foh Kwai, Deputy President Mr Matthew Tee and Secretary-General Ir. Yap Yoke Keong
presented 2011 membership certificates to new members who were present at the function.
Overall, the participants were happy and had enjoyed themselves. The event was a success.
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MBAM Section
ACTIVITIES
National Seminar in
Built Environment Report
Challenges of the Construction Industry
The challenges of the construction industry are to ensure
that we attain and are able to sustain the anticipated
growth. As such timely & successful implementation of
the entry point projects under the NKEAs is required.
Timely Dissemination of Information on
Projects
The Government to kick off all the proposed 2011 budgeted
projects on time to balance up the gestation period and
growth anticipated for the construction industry. As such
besides the approval of the Mass Rapid Transit (MRT)
system for the improvement of the public transport at the
Klang Valley, other projects such as the highway projects
and Greater KL Plan need to be approved and rolled out
too.
Public Private Partnership (PPP)
The Government is putting emphasis on PPP under the
10MP. However, there are several concerns that need to
be addressed.
MBAM President, Mr Kwan Foh Kwai presented a paper at
the National Seminar in Built Environment organised by
Universiti Teknologi Mara. He presented a paper entitled
“2011 Outlook and Challenges for the Construction
Industry in the Domestic and Overseas Market” on 14th
April 2011 in Grand Dorsett Hotel, Subang Jaya.
In his presentation, he mentioned that the 9th Malaysia
Plan (9MP) was envisaged to ensure that the economy
will be more focused on capital and services and the
private sector would be the main engine of growth.
However by the end of 9MP, the economy did not grow
at 6% per annum during the 5 year period as envisaged.
(Average annual growth was about 3.2%.Please refer to
appendix 1, 2 and 3). Real commitment and a realistic
execution plan has to be devised to ensure the success of
the 10th Malaysia Plan (10MP) which also charts a 6%
growth target. All things considered, the outlook for the
construction industry looks positive in year 2011 with the
launching of the 10th Malaysia Plan (10MP) & Economic
Transformation Program (ETP) with many entry point
projects to be launched under the 12 National Key
Economic Areas (NKEAs). The growth anticipated for
the construction industry is to be within expectation in
the region of 5% - 6%.
Master Builders
1 st & 2 nd Quarter 2011
6
Provision of Assurance on Good Investment
With the implementation of ETP and Public Private
Partnership (PPP), the private sector is supposed to play
a bigger role in the implementation of projects whereby
the major responsibilities are moved from the public to
the private sector. PPP in fact transfer massive amount of
risk from the public sector to the private sector resulting
in few companies with strong technical capabilities and
financial strength willing to undertake projects involving
PPP. As such, the Government needs to provide some form
of assurance and more incentives to the private sector in
order for them to be willing to invest in these projects
proposed by the Government as we move forward to the
development as a high income nation.
Fair and Transparent Bidding Process for
Projects
There is a need for more transparency in the award of
projects with implementation of open tender systems for
bidding of Government projects. MBAM appreciates
the announcement that all works will be implemented
by open tenders which will reduce wastage and generate
more value for money. We hope that with the adoption
of proper tender evaluation criteria, more competent
contractors and the related supply chain will benefit. MBAM Section
Land Issues
The Government should sort out land issues instead of the
contractor to sort out the matter when it comes to PPP
projects.
Compensation/Grant
Compensation or grants should be considered for bidders
since it can be quite costly for bidders to submit proposals.
By considering compensation or grants, more companies
may consider proposing and bidding for PPP projects
which will eventually benefit the rakyat.
High Number of Contractors
There is a high percentage of contractors but only about
12% are actually running construction business. There is an
urgent need to regulate the number of contractors. There is
a need to limit number of contractors, raise standards of
registration and pre-qualification of contractors to ensure
quality delivery from capable and committed contractors.
HUMAN RESOURCES AND MANPOWER ISSUES
The massive roll-out of projects will require numerous
skilled workers, both local and foreign to ensure its
successful completion, considering the complexity and
fast-track nature of the projects.
There is an urgent need to provide quality construction
industry-based training to meet the construction industry’s
needs especially for the up skilling of the current local
construction workforce.
The Government to train local workers to replace foreign
workers as well as to reduce the total number of foreign
construction labour to 200,000 by 2015 as per the
Government’s long term policy on reducing the reliance
on foreign workers. In fact, 35.1% local construction
personnel will reach the age of 50 years and above
in 2017. There is a need to replace these workers with
skilled workers so that they can contribute to the next
level national building. Therefore, we need to stop flow of
competent human resources out of the country, especially
in the professional, managerial, supervisory and skilled
labour segments of the construction job markets. The
construction industry also needs to breed interest in
construction related careers and to do this Government
should continue to teach construction related skills in
vocational schools. Moreover, the Industrialized Building
Systems (IBS), Mechanization and other labour saving
methodologies must be encouraged in order to drive
yield of construction workers to achieve a higher income
economy. More importantly we have to upskill our workers
as preparation for the free flow of workers within ASEAN
countries by 2015.
Construction Payment and Adjudication Act
(CIPAA)
The industry needs CIPAA. Mentioned of this proposed
act has been traced back since it was brought up at an
Industry Roundtable Meeting in 2005 by the Minister of
Works. CIPAA will be able to resolve all issues regarding
payment problems, late payment, under payment and non
receipt of payment in the construction industry.
If CIPAA was made a reality, it would provide the
contractors an alternative avenue to resolve the disputes
quickly and at affordable costs. Existing dispute resolution
mechanisms in the Construction Industry such as
Arbitration and Litigation are time - consuming and are
often expensive.
Going Global
There are opportunities overseas but there are challenges
too. The Government should assist to secure financing for
company going overseas. We need to find opportunities
to foster closer co-operation among the construction
contractors and thereby promote joint ventures and joint
operations for enhancement of Malaysian construction
contracting capabilities and also to help promote mutual
consultation among construction contractors and thereby
encourage exchange of information and know-how for
improvement of construction technology and management,
upgrading of construction labour skills and standards.
The Government should continue to promote Malaysian
construction services overseas through international trade
exhibitions.
Conclusion:-
MBAM hopes that with the launch of the 10MP, and the
implementation of the Entry Point Projects with the ETP,
we will be able to see a better growth in the second half of
the year 2011 for the construction industry.
In year 2011, building materials manufacturers will still
have the potential to produce sufficient building materials
to support the growth of the construction industry and
there is still room to match capacity with demand for
raw material prices as we move towards liberalization. In
addition, with the implementation of the Competition Act
with effect from year 2012, we will move towards more
healthier business environment with no cartel of services.
We also hope that the Government must take the initiative
and role to facilitate and provide the infrastructure and
ensure the human talent is available.
Reported by MBAM PR Manager, Lenny Lim
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Master Builders
1 s t & 2 n d Quarter 2011
MBAM Section
ACTIVITIES
REPORT OF MEETING BETWEEN MBAM
AND THE DEPARTMENT OF POLYTECHNIC
EDUCATION (DPE), MINISTRY OF HIGHER
EDUCATION, MALAYSIA (MOHE)
Abdul Karim bin Jaafar, Director of Curriculum Division
En Mohd Nor bin Shahudin, Officer from Curriculum
Division En Noor Azizan bin Itam, Officer from
Professional Excellence Division Mr Christopher Suresh
Martin, Industrial Liaison Division Officers Puan Zainal
binti Rujihan, Ms Ong Tit Suen and Puan Noor Shuhalie
binti M Mohamed.
The objective of the meeting was to explore ways in
which both parties could work together to address the
current shortage of skilled human capital in the building
industry.
A power point presentation of the polytechnic system,
highlighting the role of polytechnics as producers of
innovative human capital, was presented by the Deputy
Director General (Strategic), En. Amir bin Md. Noor
(chairperson).
Reference was made to the role played by Politeknik
Metros for maximizing educational training
opportunities. Discussion also focused on the soon to
MBAM President, Mr Kwan Foh Kwai led a 9-member
delegation comprising Deputy
President and Co-Chairman of
Education & Training Committee
Mr Matthew Tee, Vice President
and Chairman of Education &
Training Committee Dato’ Sri
Sufri Hj Mohd Zin, Alternate
Council Member Mr Andrew Ong,
Education & Training Committee
Members Dr Yeow Yoon Foo, Mr
Jaspal Singh, Mr Stewart Lee,
Chief Operating Officer Ms Loh
Mei Ling and Senior Executive
Officer Ms Zharraine Chang visited
the Department of Polytechnic
Education (DPE) on 14th April
2011.
be introduced star rating system to evaluate the quality
and standards of polytechnics. The star rating system is
similar to the SETARA system used in rating universities.
MBAM suggested involving appropriate industry players
in the rating and awarding of certification to polytechnics.
DPE was represented by Deputy Director General
(Strategic) En Amir bin Mohd Noor, Deputy Director
General (Operations) Datuk Hj Mohlis bin Jaafar, Deputy
Director General (Academic) Hj Mohd Ghaus bin Ab
Kadir, Director of Professional Excellence Division En
Master Builders
1 st & 2 nd Quarter 2011
8
MBAM Section
This would provide a good check and balance between
the paper chase and technical skills relevant to industry’s
needs.
MBAM was also briefed on the Malaysian Technical
Universities Network (MTUN). MTUN provides an
alternative route to technical higher education for students
interested in a vocational career through the four technical
universities in the network - UTeM, UTHM, UNIMAS
and UNIMAP.
Issues Discussed
4. Rating And Certification
Initiatives for polytechnics to move forward should
allow appropriate industry player in the private
sector to be involved in the rating and certification
of polytechnics, not just the Malaysian Qualifications
Agency (MQA). The construction industry requires
hands-on engineers with the relevant technical
knowledge, not just paper qualifications.
5. Students’ Industrial Attachment Programme And
Staff Development
DPE seeks MBAM’s assistance to structure its industrial
attachment programme. This will ensure delivery of
relevant topics and skills to polytechnic students. This
move will also allow MBAM to regulate the number
of students sent out to the construction industry
according to industry’s needs, addressing the current
situation of over supply at certain times of the year.
1. Current Shortage Of Skilled Manpower In The
Construction Industry
MBAM is concerned over the shortage of qualified
skilled human capital needed in the construction
industry. MBAM would like to explore potential
areas of collaboration with polytechnics to ensure
production of a steady supply of skilled human capital
for the construction industry, especially now that its
members are constructing MRT and LRT. The present
shortage is considered critical by MBAM as the nation
prepares itself to move towards a high income status
as envisaged in the Economic Transformation Plan
(ETP). This situation warrants immediate attention
as the pioneer batch of skilled human capital, output
of the polytechnic system will be retiring very soon.
2. Access And Equity
MBAM also expressed concern over statistics indicating
dominance of female over male graduates. Industry
experience has shown that most of these qualified
females leave the job market after having served for
six years. DPE clarified that not much control can
be exercised over this domain as intake is based on
meritocracy.
Real life projects, based on students experience during
their industrial attachment, to be completed in their
final semester, can be given to students. MBAM
can also play a significant role in updating DPE’s
staff with the necessary soft and hard skills through
staff attachment at appropriate companies under the
MBAM umbrella.
3. Politeknik Malaysia As A Brand Name
Present day public perception of polytechnics as a
second or last resort needs to be changed. Polytechnics
must be perceived as institutions offering niche good
quality post-secondary technical programs so as to
attract good quality students. Quality intake will ensure
that polytechnics fulfill the nation’s human capital
needs not in terms of numbers but quality – a right
strategy for branding and image building. The 2010
Polytechnic Transformation Plan (PTP) has brought
positive results for polytechnics. There has been an
improvement in the quality of applicants applying into
polytechnics. 102,000 out of the 125,000 applicants
put polytechnics as their first choice for their studies.
6. Curriculum
DPE needs regular input from MBAM to ensure that
the curriculum is relevant to market needs. DPE
cannot have a specific program to address the shortage
of skilled human capital for the Occupational Safety
& Health industry but it has reviewed its curriculum
to enable its civil engineering graduates to help address
the lack of skilled manpower in this area.
9
Master Builders
1 s t & 2 n d Quarter 2011
MBAM Section
7. Appropriate Job Titles
DPE requires assistance from
MBAM in coming up with
appropriate occupational titles
to fit the job specifications in line
with an outcome-based learning.
The importance of professional
sounding job titles, especially for
generic courses, have positive
effects on students and jobseekers as they create a sense of
importance.
8. Collaboration in Research
DPE would like to collaborate
with MBAM in applied research
as some polytechnics also houses
Centres of Technology (CoT).
9. Scholarships
The possibility of MBAM providing scholarships to
outstanding polytechnic students to further their
studies and subsequently be employed by them.
Potential Collaborative Activities Between Both Parties
• Successful alumni to be encouraged to give career talks
to polytechnic students to inspire them of a bright
future in the construction industry.
• Provide scholarship to outstanding polytechnic
students to further their studies through MBAM
Education Fund and subsequent employment.
• Sponsorship of Best Prize/Award at convocation of
polytechnics.
• Involvement in DPE’s apprenticeship programme
where polytechnic students can be trained in specific
areas and later be employed by the industry.
• Regular input from MBAM to ensure the curriculum
is relevant to market needs.
• Collaboration in applied research as some polytechnics
houses Centres of Technology (CoT).
• Some thoughts to be given to inviting DPE to speak on
the existence of the Malaysian Board of Technologists
(MBoT) and its impact on the construction industry
at the 4th Malaysian Construction Summit.
The Way Forward
Follow-up meetings will be held with the individual
divisions concerned for a more detailed plan of action.
Reported by
ZHARRAINE CHANG
Senior Executive Officer
Master Builders
1 st & 2 nd Quarter 2011
10
MBAM Section
ACTIVITIES
MEMORANDUM OF AGREEMENT SIGNING
AND LAUNCHING OF IPD-OUM & MBAM
PROGRAMMES
The Memorandum of Agreement (MoA) Signing and Launching of Institute
Professional Development-Open University Malaysia (IPD-OUM) and Master
Builders Association Malaysia (MBAM) Programmes were held on 5th May 2011
at the Putra World Trade Centre, Kuala Lumpur. It was well attended by more
than 150 guests comprising Council Members, Members of MBAM, OUM
officials, and the mass media. The MoA Signing Ceremony was witnessed by YB
Dato’ Seri Mohamed Khaled Nordin, Minister of Higher Education, Malaysia,
YBhg Dato’ Sri Sufri Hj Mohd Zin, MBAM Vice President & Chairman of
Education & Training Committee, Mr John Tong, Honorary Advisor of MBAM
and Encik Repin Ibrahim, Vice President of OUM. The MoA was signed by
MBAM President, Mr Kwan Foh Kwai and OUM Senior Vice President, Prof.
Dr. Mansor Fadzil. Subsequently, Guest of Honour YB Dato’ Seri Mohamed
Khaled Nordin did a digital launch of the programmes.
The objective of the MoA is to formulate an initial relationship between both
parties and as an expression of their sincere desire and intention of undertaking
an arrangement to work together to provide the following training programmes:
(a)
(b)
(c)
(d)
Industrial Executive Diploma in Construction Management (“IEDCM”)
Industrial Executive Diploma in Construction Contract Administration (“IEDCCA”)
Executive Bachelor in Construction Project Management (“EBCPM”)
Executive Bachelor in Construction Contract Administration (“EBCCA”)
Both
parties
presented
mementos of appreciation
to YB Dato’ Seri Mohamed
Khaled Nordin.
Reported by
ZHARRAINE CHANG
Senior Executive Officer
YB Dato’ Seri Mohamed Khaled Nordin, Minister of Higher Education,
Malaysia receiving a token of appreciation during the MBAM and OUM
Memorandum of Agreement Signing Ceremony
Master Builders
1 st & 2 nd Quarter 2011
12
A
D
V
E
R
T
O
R
I
A
L
Pressebericht
Fast and efficient
construction of Semi-detached housing in
Press Release
Bandar Baru Selayang with PERI TRIO
Speed, quality and cost are the aspects that Projek Cekap (M) Sdn Bhd is
PERI GmbH
considering
selecting America
IBS for their projects. They find the optimum
solution
A twisting
worldwhen
in North
Formwork Scaffolding Engineering
in PERI formwork for the construction of the residential units in Bandar
Baru
Rudolf-Diesel-Straße
Selayang.system – two climbing methods
One climbing
89264 Weissenhorn
Germany
Absolute World,
Canada
Phone: +49(0)7309.950-0
A total Mississauga,
of 1422 units of
semi-detached low budget houses are currently
being
+49(0)7309.951-0
built in Bandar Baru Selayang. Currently, Tan Hung Sing, Project Fax:
Manager
for
Projek
Cekap,
is
casting
daily,
which
is
made
possible
through
the
use
of
PERI
Two spectacular high-rise buildings are currently twisting and
formwork. Utilizing Trio formwork, two units are being completed every day.
turning upwards into the Canadian sky. During the construction of
The complicated
formwork in building
use is the
PERI Trio.
the extremely
geometry,
theMr.
PERI RCS
Tan is convinced of the superlative features
climbing
is ensuring
rapid
building progress and
that Trio brings
with it.protection
Accordingpanel
to him,
the system
is extremely
thought through
in the design
andsafety.
beyond. The Trio solution provided
maximum
working
by PERI Malaysia comes as a complete package with training for the
workers and accessories, such as the clamps for the lifters and props.
Two You
curvaceous
formit this
urban-development
“German Design:
can seeskyscraper
it, touch ittowers
and feel
in every
PERI
part. This thought-design
translates
into
improved
quality
and
faster
highlight as part of the new Absolute World City Center in Mississauga.
construction” says Tan. He further elaborates that the workers also
The inner-city ensemble consists of five apartment and office blocks with
like to work with the system as it is easy to manage and use. Instead
of manual labour,
only
one
cranem.isVery
used
to move
the equipment.
heights
of up
to 167
striking
and exceptional,
however, are the
rotations of the two most recently completed buildings: the southern
In addition, Mr. Tan is
tower with a varying rotational
movementwith
andthe
the service
northern tower which
impressed
provided by PERI Malaysia.
twists uniformly upwards.
“We had all the equipment
on site
in less than
weeksfloors through
For both buildings, the complete
enclosure
of the3 upper
after our order. Also, PERI assisted us with training, planning
the RCS climbing protection panel
ensured
the safety
of the construction
support
and design
of the formwork
to meet our requirements
on
site.”
site team which has resulted in higher productivity. Due to the different
rotations by different degreesThrough
at different
engineersProjek Cekap is able to
the levels,
use ofPERI
the formwork,
replace
the
brick
and
column
design
for the houses with
developed two unusual climbing methods – with the help of the
modular
load-bearing sheer walls. These are more consistent in their
construction system, adaptedquality
specifically
to suit
project
and faster
to the
castrespective
than the conventional
way of laying
bricks.
For
Projek
Cekap,
speed,
quality
and
cost
are the key
requirements and building geometry.
components to look into when they develop a site. PERI’s formwork offers them an optimum solution
with consistent quality, fast turnaround and cost effective use that goes beyond the purchasing price of
Absolute
South The company saves along the entire value chain as the PERI
the material needed
for Tower
the construction.
formwork also reduces waste, thus reducing the cost for
With the 167 m high Absolute Tower South, the elliptically-shaped
rubbish disposal.
ground plan rotates by more than 200° over the course of 56 floors –
PERI’s Trio also addresses another issue that is important
featuring twists of between 3° and 8° from storey to storey. In order to
to the contractor. Using Trio, the walls are cast, not made
ensure
safethat
working
also
at require
great heights along with
from bricks. This
means
Projekconditions
Cekap does
not
brick layers and
plasterers.
It
means
that
the
contractor
increasing productivity levels, the workingcan
area of the three uppermost
reduce the number of staff on site, thus reducing cost and time
spend on planning and co-ordinating resources. “Currently,
Contact
Kontakt
Malaysia’s construction industry is booming and it is hard to
PERI Editorial office
Phone: +49(0)7309.950-1191
find qualified staff. We have to find ways to counter such a
Fax: +49(0)7309.951-1191
shortage of skilled labour. Here again, PERI’s solutions help
[email protected]
us in managing our resources” Tan states.
www.peri.com
Page 1 of 7
MBAM Section
ACTIVITIES
REPORT ON MBAM DIALOGUE MEETING
WITH CIDB CHAIRMAN, DATUK IR. HAMZAH
HASAN, ON 21ST APRIL 2011
and fast-track nature of the project. It was reported in
the newspaper that with the approved MRT project,
130,000 jobs will be created. In view of the need for
enough manpower resources to undertake the job,
MBAM hopes the Government will consider relaxing
certain policies involving construction workers.
MBAM President, Mr Kwan Foh Kwai, MBAM Deputy
President, Mr Matthew Tee, MBAM Vice President, Mr
Foo Chek Lee, MBAM Secretary General, Ir. Yap Yoke
Keong, MBAM Secretary General 1, Ir. Chuan Yeong
Ming, MBAM Secretary General 2, Mr Ng Eng Keat
and MBAM Chief Operating Officer, Ms Loh Mei Ling,
attended the above dialogue meeting on 21st April 2011 at
CIDB Board Room.
MBAM hopes that there will be immediate official
announcement from the Government on the policy
on the extension of stay for foreign construction
workers work permit for another 5 years without
undergoing the skill test (reported by Nanyang Siang
Pau on 13th April 2011. CIDB can work with MBAM
to accredit MBAM staff to ensure the delivery of the
system is in order.
Foreign Workers Hospitalisation & Surgical
Insurance Scheme (SKHPPA) RM120.00/worker.
MBAM hopes that the Government can consider to
reduce the premium of the medical insurance scheme
or to do away with scheme as this will deter foreign
workers to come to Malaysia.
Education and Training of Local Human Capital.
There is an urgent need on providing quality
construction industry based training to meet the
construction industry’s needs especially for the up
skilling of the current local construction workforce.
The Government will need to train local workers to
replace the foreign workers as well as to reduce the
total number of construction labour to 200,000 by
year 2015 as per the Government’s long term policy
on reducing the reliance on foreign workers. Local
workers are ageing and new local workers need to be
trained.
Datuk Ir. Hamzah Hasan, CIDB Chairman chaired the
dialogue meeting and welcomed MBAM delegates to
participate in the said dialogue. Other CIDB officers
present were Encik Abdul Latif Hitam and Encik Ahmad
Firdaus.
MBAM President, Mr Kwan Foh Kwai congratulated
Datuk Ir. Hamzah Hassan on his appointment as the
Chairman of CIDB. Mr Kwan mentioned that MBAM
will continue to work closely with CIDB under his
Chairmanship. MBAM will look towards sustainable
construction as a way forward, up skilling of workers and
rebranding of the construction industry with emphasis
on higher mechanism and machinery methodology. The
Government must encourage the industry by reducing the
import duties for heavy machineries in order to encourage
investment in machineries and train the local workers with
supplement from foreign workers.
(a)
(b)
The following issues were discussed:1. Human Resources Related Issues
(ii) MBAM-CIDB collaboration on “Train the
Foremen to be Effective Site Trainers ProgrammeThe training should be approved and fully subsidized
by CIDB. MBAM has submitted the Joint Venture
proposal to CIDB and hopes that CIDB can issue
(i) Shortage of Skilled Workers
The massive roll-out of projects will require numerous
skilled workers, both local and foreign to ensure its
successful completion, considering the complexity
Master Builders
1 st & 2 nd Quarter 2011
To encourage more construction related
courses to be taught in vocational schools and
polytechnics in Malaysia.
The Government to consider providing
matching grants to encourage more existing
construction personnel to upgrade themselves
through relevant industry based courses
such as the MBAM-Institute of Professional
Development-Open University Malaysia
(IPD-OUM) executive industrial diploma and
executive bachelor programmes in construction
management and contracts administration.
16
MBAM Section
the appointment letter to MBAM as soon as possible
in order for MBAM to kick start the said training
programme.
5. Building Material Prices
MBAM is concerned over the recent increase in
building material prices e.g steel bars, common clay
bricks and especially on the cement prices. The most
alarming fact is the price of bulk cement may be
purchased at a lower price in Singapore (RM220.00
per tonne) as compared to Malaysia (RM283.00 per
tonne) whilst some of these cements are manufactured
by the cement manufacturers in Malaysia. The impact
on increase of these building material prices:(i)
Increase of the property prices, making it less
affordable for the rakyat.
(ii) Higher risk of project delays and failures.
(iii) Difficulties in tender bidding.
MBAM appeals to the Government to:
(i)
Intervene against unreasonable building
material price increases. Building materials
manufacturers and suppliers must work
together to ensure that any increase in prices
must be fair and reasonable;
(ii) Include the provisions for Variation Of Price
(VOP) clauses in all Government, implementing
agencies and Government Linked Companies
(GLCs) contracts to address the volatile
material and fuel prices as our industry still do
not have a wide spread of VOP clauses.
(iii) Push for the implementation of Competition
Act so that there will be no more cartel of
services.
2. Machinery Issues
MBAM has also written to the Government to
As majority of the construction machineries in Malaysia
are already quite old and MBAM is encouraging
the use of newer machineries to improve efficiency
and also for safety purposes as older machineries
may have higher safety risk due to metal fatigue.
Through the usage of new machineries, productivity
can be improved in order to drive the Government
Transformation Programme (GTP) and Economic
Transformation Plan (ETP) to be a reality.
The industry should strategise itself if the memorandum
is not effective. The industry players should approach
and talk to the relevant officers in MITI to push the
message forward to the top management level.
reduce the import duties for heavy machineries in
Malaysia. MBAM suggested that the Government
to reduce the import duty and sales tax for heavy
machineries used in construction on a systematic
basis within 2 years from currently as high as 20%
until it is reduced to 5% for import duty and 5% for
sales tax in order to remain competitive within the
ASEAN countries.
3. Construction Industry Payment
and Adjudication Act (CIPAA)
6. Occupational Safety & Health in
Construction Industry
MBAM strongly support the draft version of CIPAA
prepared by the Ministry of Works, Malaysia and
CIDB. CIDB is not aware of the status on CIPAA
except that the document is currently with the
Attorney-General’s office but will follow-up on this
matter.
4. Implement Construction Industry
Master Plan (CIMP)
MBAM will be conducting the Safety & Health
Officer and Site Safety Supervisor courses soon.
These courses will be conducted with an approved
and accredited training provider by the Department
of Safety & Heath (DOSH) under the Ministry of
Human Resources.
7. CIDB AND MBAM Working Closely
Hand in Hand
The CIMP has outlined the vision, mission,
critical strategic thrusts and various strategic
recommendations that will guide the development
of the Malaysian construction industry from 20062015. The CIMP was formulated to ensure that the
construction industry is well positioned to support the
nation’s overall growth and to meet various challenges
to enhance productivity and quality along the entire
construction value chain. Much effort has been
invested by the construction industry to formulate
CIMP. The Government should commit and take
joint ownership to making CIMP work as this will
help towards achieving the 10MP. To stress strongly
on the timely execution of the CIMP as top priority
and Government must take strong initiative. CIDB
will look into this matter once the Chief Executive
Officer post is filled up.
MBAM strongly support CIDB and will work together
towards achieving the ETP and GTP. It is hoped that
the Government will put in place a strong delivery
system in order to achieve a high income economy.
The Association requests for consistency and
transparency in terms of policies and incentives to
lower the costs of doing business in Malaysia. This will
help to attract both foreign & domestic investments
to make 10th Malaysia Plan (10MP) and Vision 2020
a success.
Reported by:
Loh Mei Ling
Chief Operating Officer
17
Master Builders
1 s t & 2 n d Quarter 2011
MBAM Section
TALK / SEMINAR / CONFERENCE / WORKSHOP
REPORT ON MBAM PARTICIPATION AT THE 2nd
INTERNATIONAL INFRASTRUCTURE INVESTMENT
& CONSTRUCTION FORUM (IIICF) 2011, BEIJING,
CHINA FROM 25th - 28th MAY 2011
Member, Mr Lai Eng Soon. The Government officials who
participated in the forum were Datuk Ir. Hamzah Hasan,
Chairman of the Construction Industry Development
Board Malaysia (CIDB) and Mr Ahmad Farrin Mokhtar,
Senior Manager of CIDB.
MBAM President, Mr Kwan Foh Kwai led a 12-member
delegation to attend the 2nd International Infrastructure
Investment & Construction Forum (IIICF) 2011 held at
the China National Convention Center in Beijing, China
from 25th -28th May 2011. This forum was organized
by the China International Contractors Association
(CHINCA) and is a follow-up initiative following to the
success of the inaugural IIICF held last May 2010. IIICF
2011 had attracted over 700 delegates from 42 countries
and regions to exchange views on current and important
issues related to the construction industry. The theme for
the 2nd IIICF 2011 is “Investment Cooperation Energizes
the Sustainable Development of Infrastructure”. The MBAM delegates were invited to a study visit to the
Tianjin Eco-City on 25th May 2011 hosted by the SinoSingapore Tianjin Eco-City Investment and Development
Co., Ltd. The study visit included a briefing session of
the Sino-Singapore Tianjin Eco-city, introduction of the
Eco-City Model, visit to the Shi Mao Eco-Exhibition
Center and site visit to the Eco Business Park and Eco
Industry Park.
The MBAM delegates who participated in the event were
Treasurer-General cum Chief Delegate for 2nd IIICF, Mr
Eric Lai Wee Meng, Immediate Past President, Dato’
Ng Kee Leen, Deputy President, Mr Matthew Tee,
Deputy Secretary General I, Ir. Chuan Yeong Ming,
Chief Operating Officer, Ms Loh Mei Ling, Mr Poon
Kon Hoo, General Manager of Sunway Construction
Sdn Bhd, Malaysia Mobile Crane Owners Association
(MMCOA) President, Mr Lai Keng Guan and MMCOA
Master Builders
1 st & 2 nd Quarter 2011
The official opening ceremony of 2nd IIICF 2011 was held on
26th May 2011. Some of the papers and speakers presented
at the forum include Strengthen International Investment
Cooperation, Promote Mutual Development by Mr Chen
Jian, Vice Minister, Ministry of Commerce of P.R. China;
Mr Jorge Guajadro, Ambassador, Embassy of the United
Mexican States in Beijing, Status Quo and Investment
Opportunities of Infrastructure in the Philippines by Mr
18
MBAM Section
Rogelio L. Singson, Secretary, Department of Public Works
and Highway of the Philippines; China’s Financial Support
Policies for International Infrastructure Cooperation by
Mr Zhu Hongjie, Vice President, The Export-Import
Bank of China; Mr Nikolay Koshman, President,
Builders Association of Russia; China’s Development and
International Cooperation of Transportation Infrastructures
by Mr Chen Fenjian, Vice Chairman, China International
Contractors Association cum Vice
President, China Communications
Construction
Company
Limited;
Sustainable Development of Mineral
Resources, Mr Wang Xiufeng, Vice
President, Metallurgical Corporation
of China Ltd.; Investment Strategy and
Competitive Advantages of Sustainable
Infrastructures by Mr Daniel Wiener,
Chairman, Global Energy Basel; Market
Trend in Overseas Infrastructure and
opportunities for Chinese Enterprises by
Mr Rick Hunger, Director of Business
Development, AECOM. The afternoon
session covers a keynote discussion on
Investment Cooperation and Business
Model Innovation: Future Development
of International Contractors and
workshop on PPP in Infrastructure
Construction Projects.
The first day of the forum ended with a
press conference and signing ceremony of three Memoranda
of Understanding between CHINCA and the PCA, Macau
and Ghana respectively. The President of CICA, Mr
Daniel Tardy and MBAM President, Mr Kwan Foh Kwai
were invited to address the mass media on the 2nd IIICF at
the press conference. Thereafter the forum delegates were
invited to attend a sumptuous reception dinner hosted by
CHINCA at the convention center.
The morning session of the second day of the forum on
27th May 2011 was conducted in parallel sub-forums on
the following topics:(i) Sustainable Development of Mineral Resources
(ii) Financial Innovation: Accelerator of Infrastructure
Development
(iii) Investment, Construction and Operation of
Transportation Infrastructure
(iv) Opportunities and Challenges in Latin American
Countries
(v) Russian Projects Presentation
The afternoon session of the second
day of the forum consisted of
business meetings for the delegates
of the forum. MBAM delegates met
with the Mr Lu Yue Ping, Deputy
General Manager, and Ms Wang
Ying from the Special Financing,
Accounts Department of China
Exim Bank to explore opportunities
of project financing from China
Exim Bank and the China-Asean
Investment Cooperation Fund.
It was noted that the China Exim
Bank will consider to fund or finance
viable projects so long as there is
a joint venture with a local China
construction company. The China
Exim Bank will also do matching
or find suitable partners for overseas
business entities who are interested
19
Master Builders
1 s t & 2 n d Quarter 2011
MBAM Section
to have joint venture with local China
construction companies if they find
the project proposal is viable.
CHINCA also hosted a dinner
meeting on 27th May 2011 specifically
for the MBAM delegates at the China
National Convention Centre Grand
Hotel. MBAM and CHINCA have
mutually agreed and exchanged views
on the proposed joint summit to be
organized in Malaysia.
During the press conference, MBAM
President, Mr KwanFoh Kwai
highlighted that the IIICF forum
provided MBAM the platform
to reinforce our contact with
CHINCA and other international
bodies for further enhancement of cooperation among
the construction fraternity. This is an important event as
MBAM need to strengthen international cooperation with
CHINCA and others more proactively. To accomplish this,
MBAM must be more interactive with CHINCA and its
associates to drive MBAM forward and for our members to
build strong rapport and subsequent partnership with other
Chinese and International contractors, and to understand
not only the challenges but also the opportunities for
construction business globally and closer at home, in
CHINA-ASEAN. IIICF provides an excellent platform for
MBAM to accomplish these objectives.
Partnership (PPP) initiatives in Malaysia. The Government
of Malaysia has announced in 2010 through the Economic
Transformation Program, that the private sector including
foreign direct investment is expected to take over as the
driver of economic growth to transfer the country into
a high-income nation by the year 2020. In fact, various
Entry Point projects approved to-date will add at least
USD70 billion in construction contracts over the next 10
years. Malaysia has always placed great importance to its
friendly relationship with China, and we are ever ready
to expand the Malaysia-China cooperation for mutual
benefits. China is and will always be one of Malaysia’s
biggest and most important economic cooperation
partners. MBAM hopes that the bilateral relationship
between the two organizations will be further strengthened
especially in the promotion of projects involving the public
private partnerships, project financing
and joint venture development.
Through this forum, MBAM also hope to evaluate the
feasibility of involving CHINCA and IIICF delegates to
help source for funding for projects under the Public Private
In conclusion, MBAM would like to
find opportunities to work together,
to explore many opportunities where
our respective strengths could be
further integrated and
optimized
in joint ventures or partnerships to
take on the economic challenges and
opportunities that the new world order
has presented.
Reported by:
Loh Mei Ling
Chief Operating Officer
Master Builders
1 st & 2 nd Quarter 2011
20
MBAM Section
TALK / SEMINAR / CONFERENCE / WORKSHOP
MBAM Construction continuing
professional development (CCPD)
Training programme for year 2011
Construction Managers and Supervisors today are facing
the challenges of Management, Planning, Organizing and
Monitoring projects efficiently to meet the ever increasing
demands of project requirements. Training and development
play an important role in ensuring that respective categories
of construction personnel are competently trained to meet
these challenges.
CERTIFICATE OF ATTENDANCE
MBAM is committed to create opportunities for aspiring
personnel in the construction industry in obtaining
continuing education, training and professional
development via a series of comprehensive Construction
Continuing Professional Development Programme for
construction managers and supervisors.
Programme modules are conducted in the form of lectures,
tutorials and/or group discussion. Active participation in
discussion is envisaged, including citing actual cases and
experiences of the module facilitators.
Certificate of Attendance will be presented for each
module of the programmes attended, provided always that
the attendance must not be less than 80% of the entire
duration of the training module concerned.
MODE OF TRAINING
PROGRAMME MODULE FACILITATORS
All module facilitators are qualified professionals with
extensive knowledge and experience in their own area of
expertise. Facilitators of the respective modules are specially
selected for their authority in the subject matter to ensure
effective knowledge dissemination.
The Education Committee of MBAM, in collaboration with
Akademi CPD has obtained the support and endorsement
of the Construction Industry Development Board (CIDB)
Malaysia to conduct the said Programme with the aim
to further improve and enhance the supervisory and
managerial competencies of construction personnel. Those
who do not have the opportunity to gain exposure in the
construction environment will find these programmes
enriching when facilitators share their practical experience
during the training sessions.
WHO SHOULD ATTEND
The modules are most relevant to those involved in
construction operation and contract administration,
especially at supervisory and managerial levels. Interested
individuals who do not possess the relevant practical
experience but wish to seek career development and
advancement in construction are encouraged to attend.
They will be able to acquire the necessary knowledge to
achieve the same.
MBAM Construction Continuing Professional Development
(CCPD) Programme 2011 offers a wide range of
construction related training modules covering eight (8)
areas of study namely Construction Contract Management,
Construction Site Management, Construction Engineering
& Technologies, Human Resource Management &
Development, Builder’s Quantities & Measurement,
Tendering & Estimating, Project Planning & Scheduling
and Industrial Orientation & Business Management. The
said programme has commenced in January 2011. Specific modules of the program may be suitable for those
who wish to refresh knowledge in their area of interest and/
or to keep abreast with latest development in the same.
MODULE FEES & CONDITIONS FOR
REGISTRATION
The module fee is made as affordable as possible in order to
benefit a wider spectrum of construction personnel while
similar courses are available in the market albeit at a much
higher cost.
PROGRAMME STRUCTURE
MBAM CCPD Programme has been structured to provide
flexibility for participants to select the modules of their
requirements, interests or preference.
Master Builders
1 st & 2 nd Quarter 2011
22
MBAM Section
As this training programme is supported and endorsed by
the Construction Industry Development Board, Malaysia,
CIDB is offering participants with a valid CIDB Green
Card an attractive incentive rebate off 50% on the module
fee.
CONTACT PERSON
Tel
: +603 – 7984 8636
Our charge per module is RM120.00 for MBAM
members (RM60.00 nett after rebate) and for nonmembers (RM90.00 nett after rebate), which is inclusive of
module notes, refreshment and Certificate of Attendance.
Participants only need to pay the nett charge after rebate
when registering for the modules. Please be informed that
participant who does not hold a valid green card is not
entitled for the said rebate offered by CIDB and in which
case full price will be charged.
Fax
: +603 – 7982 6811
For enquires, please contact Ms Zharraine Chang
(Senior Executive Officer) or Ms Logeswary at :-
E-mail : [email protected]
CCPD PERSONAL PLANNER AND RECORD
Purposes & Aims
Professional competence requires an on-going systematic
approach to personal development. The CCPD Personal
Planner & Record is provided to assist individuals to
identify, acquire, develop, review & monitor progress of their
continuing professional development in Construction. The
planner and record helps individuals to keep record of the
CCPD training programmes that they have participated.
We are anticipating good response from members and
non-members. However, due to venue space constraint,
maximum seating capacity is limited to Forty (40)
participants per module session. Acceptance of registration/
reservation is only valid upon PAYMENT OF FEES on
‘FIRST COME FIRST SERVED’ basis. Registrations
must be forwarded together with a photocopy of the
participants’ green card as prove of the card holder. For
your information, in-house training is available. Kindly
contact our assigned officer for more information.
Special Scheme For Frequent CCPD Training
Participants
A frequent CCPD programme participant who have
attended Eight (8) CCPD Training Modules within a
period of twelve (12) months from date of attendance of the
first CCPD training module in consideration (with records
of attendance reflected on the CCPD Planner & Record
Card) will be entitled to a complimentary CCPD training
session (one module). Vouchers for the complimentary
session will be issued upon presentation of CCPD Personal
Planner & Record, duly verified by authorised person on
the attendance of the Eight (8) CCPD Training Modules.
Terms & Conditions Applied.
PAYMENT OF FEES
Fees (Cash/Cheque) shall be payable in advance to MBAM
Secretariat. Cheque is to be made payable to:MBAM Training Services Sdn Bhd.
No cancellation of registration and refund of fees are
allowed after the issuance of confirmation note. However
substitution or replacement will be considered, provided
that such substitution or replacement is requested in
writing and in advance by the sponsoring organisations or
self-sponsored individuals.
Terms & Conditions For Entitlement
1. A complimentary training voucher (CTV) will be
issued in recognition of each of the complimentary
CCPD training session entitled.
TRAINING VENUE
2. Complimentary training vouchers (CTVs) are valid for
three (3) calendar months from date of attendance of
the 8th CCPD training module attended by the same
participant.
All training sessions are scheduled to be conducted on
Fridays, Saturdays and Sundays from 9.00a.m. to 1.00p.m.
and 2.00p.m. to 6.00p.m. at:Training Room
Akademi CPD Sdn Bhd
17 & 19 Jalan 10/23A, Medan Makmur
Off Jalan Usahawan
Setapak, 53200 Kuala Lumpur
Tel: +603 – 4142 2232 Fax: +603 – 4142 0232
Master Builders
1 st & 2 nd Quarter 2011
3. Attendance of all CCPD training modules must be
validated & recorded by authorised person on the
CCPD personal planner & record.
24
MBAM Section
4. CTVs are transferable but not redeemable for cash. It may be utilised by the original recipient or any other assigned
or delegated person(s).
5. Subject always to the availability of scheduled CCPD training modules, only one (1) CTV may be utilised for
redemption at any one time for any CCPD training modules within the stipulated period.
6. Redeemable value of each CTV is equivalent to the 8th CCPD training module in consideration.
a. In the event that the fee payable by a specific category of participant utilising the CTV is in excess of the value of
the CTV presented for redemption, participant concerned will have to pay the amount in difference.
b. In the event that the value of CTV is in excess of the fee payable by the specific category of participant utilising
the CTV, such excess amount will not be exchanged for or refunded in cash but may be utilised:
i. For other CCPD training modules, or
ii. For the same CCPD training module by another assigned or delegated participant(s).
7. Complimentary training modules attended are not categorised under the redemption scheme.
Categories Of Complimentary Training Voucher (CTV)
Redeemable
Values
1. Frequent participants (with CIDB Green Card) from MBAM member companies or endorsing
institutions
RM60.00
2. Frequent participants (with CIDB Green Card) from non-MBAM member companies or nonendorsing institutions
RM90.00
3. Frequent participants (without CIDB Green Card) from MBAM member companies or endorsing
institutions
RM90.00
4. Frequent participants (without CIDB Green Card) from non-MBAM member companies or
non-endorsing institutions
RM120.00
5. Frequent Participants (With Or Without CIDB Green Card) from any in-company training
conducted by Akademi CPD Sdn Bhd
RM45.00
6. Participant (with or without CIDB Green Card) from UTM EDGE Executive Certificate &
Diploma Programmes (excluding “transfer modules” from CCPD programme)
RM45.00
25
Master Builders
1 s t & 2 n d Quarter 2011
MBAM Section
Module Title & Content Outline
1
05CM202 - Construction Budgeting, Sub-contracting & Control (E08-20-01)
• Construction Contract & Contract Execution Strategy
• Construction Project Budgeting For Contract Execution
• Outsourcing Of Contract Works & Control
• Construction Project Budget Review & Revision Through Cost Monitoring &
Control
2
3
4
5
6
05CM203 - Nominated Sub-contract Administration (E08-20-02)
• Purpose & Basis Of Nomination Of Sub-contract Works & Supplies
• Delay In & Objection To Nomination
• Contractual Relationship Amongst The Employer, The Main Contractor, The
Nominated Sub-Contractors (NSC) & Nominated Suppliers (NS)
• Effective Nominated Sub-Contract Administration
Date & Time
2 July 2011
9.00am – 1.00pm
2 July 2011
2.00pm – 6.00pm
05CM204 - Contract Payment Application & Certification (E08-20-03)
• Principles & Practices Of Interim Payment Application & Certification
• Valuation Of Materials On And/Or Off Site
• Inclusion Of Variation Claims In Interim Payment Application
• Partial Or Non-Payment By Employer & Employer’s Right To Set-off Or Back
Charge
3 July 2011
9.00am – 1.00pm
05CM205 - Construction Insurance Management (E08-20-04)
• Contractual Compliance Of Insurance Coverage & The Types Of Insurances In
Construction
• Contractor’s All Risks Insurance Policy
• Workmen’s Compensation Insurance Policy
• Preparation & Presentation Of Construction Project Insurance Claims
3 July 2011
2.00pm – 6.00pm
05CM201 - Construction Drawing & Information Management (E07-20-05)
• Principles Of Construction Drawing & Information Management
• Management Of Drawings & Information For Tendering
• Management Of Drawings & Information For Construction & Contract Administration
• Communication & Dissemination Of Construction Information For Contract Execution
23 July 2011
9.00am – 1.00pm
05CM206 - Practical Completion & Project Close-out (E08-20-05)
• Sectional & Practical Completion Of Contract Works
• Obligations Of Contractors In Defects Rectification
• Certificate Of Making Good Defects & The Release Of Retention Sum
• Practical Approach To Project Close-out
23 July 2011
2.00pm – 6.00pm
Master Builders
1 st & 2 nd Quarter 2011
26
MBAM Section
7
8
Module Title & Content Outline
Date & Time
05CM301 - Instructions, Changes & Variation Claims (E09-20-01)
• Contractual Implication Of SO’s Or Architect’s Instruction & Direction
• Oral & Written Instructions & Variation Of Works
• Principles & Practices Of Variation Claim Application, Administration &
Settlement
• Effects Of Price Fluctuation & Its Administration
05CM207 - Defects Liability & Final Account (E08-20-06)
• Contractual Implication On Practical & Sectional Completion
• Understanding The Contractor’s Liability For Making Good Defects
• Defect Liability Period & The Certification Of Making Good Defects
• Duties & Responsibility Of All Contractual Parties With Regard To Timing, Preparation, Submission, Finalising Of Final Account
9
06SM903 - Effective Construction Waste Management I (T04-20-03)
• Types & Classifications Of Construction Wastes
• Causes Of Construction Waste
• True Cost Of Construction Waste
• Effects Of Construction Waste To The Project & The Environment
10
06SM904 - Effective Construction Waste Management II (T04-20-04)
• The Need & Purpose Of Managing Construction Waste
• Effective Approach In Construction Waste Management
• Further Waste Reduction Methods
• Towards Waste Optimization
11
05CM304 - Contractual Claims & Dispute Avoidance (E09-20-04)
• Common Contractual Problems & Pitfalls Giving Rise To Contractual Claims & Disputes
• Complexity Of Contractual Disputes
• First Line Of Defence In Contractual Dispute Avoidance
• Second Line Of Defence In Contractual Dispute Avoidance
12
Master Builders
24 July 2011
2.00pm – 6.00pm
29 July 2011
9.00am – 1.00pm
05CM305 - Contractual Claims & Dispute Management (E09-20-05)
• Effects Of Contractual Disagreement & Disputes
• Recovery Of Damages & Other Remedies
• Responding To & Managing Contractual Claims
• Alternative Dispute Resolution (ADR) For Dispute Settlement
27
24 July 2011
9.00am – 1.00pm
1 s t & 2 n d Quarter 2011
29 July 2011
2.00pm – 6.00pm
30 July 2011
9.00am – 1.00pm
30 July 2011
2.00pm – 6.00pm
MBAM Section
13
14
Module Title & Content Outline
05CM302 - Project Delays & Extension Of Time (E09-20-02)
• Time Element & Time Related Clauses In Construction Contracts
• Effects Of Site Possession & Work Suspension
• Effects Of Project Delays & Non-completion
• Extension Of Time Application & Imposition Of Liquidated & Ascertained
Damages
05CM303 - Work Disruptions & Claims For Direct Loss & Expense (E09-20-03)
• Contractual Claims & The Implication Of Implied & Expressed Terms
• Definition Of Direct Loss & Expense Claims
• Heads Of Claim For Direct Loss & Expense
• Practical Approach For Loss & Expense Claim Application & Assessment
Master Builders
1 st & 2 nd Quarter 2011
28
Date & Time
31 July 2011
9.00am – 1.00pm
31 July 2011
2.00pm – 6.00pm
RM 90.00 x� ________� module/s =
RM 120.00 x�________� module/s =
Member without CIBD Green Card
Non-member without CIBD Green Card
Contact Person
:
Company Name & Address :
Member's Details
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NRIC
Designation
Expiry Date
Voucher No. : ________________________________
Cash RM : ________________________________
: ______________________________________
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Date
E-mail : ______________________________________
Fax No. : ______________________________________
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RM 60.00 x� ________� module/s =
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Module
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3
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REGISTRATION FORM
MBAM CONSTRUCTION CONTINUING DEVELOPMENT (CCPD) PROGRAMME FOR YEAR 2011
MBAM Section
MBAM IN THE NEWS
MBAM SUGGESTS REDUCTION OF IMPORT DUTY
AND SALES TAX FOR HEAVY MACHINERY
KUALA LUMPUR, April 8 (Bernama) -- The Master Builders Association Malaysia (MBAM) has suggested that the
government reduce the import duty and sales tax for heavy machinery used in construction, on a systematic basis within
two years, to five per cent from the 20 per cent currently.
In a statement today, the MBAM said the reduction would enable construction machinery companies as well as the
industry, to remain competitive within ASEAN.
It said as a majority of the construction machinery in Malaysia is quite old, there would be huge opportunities for
construction machinery companies to explore, penetrate and expand their businesses, to support the implementation of
projects in the country.
“The MBAM is encouraging the use of newer machinery to improve efficiency and also for safety purposes, as older
ones, may have a higher safety risk due to metal fatigue,” it added.
However, the MBAM said the existence of an import duty and sales tax are still required to avoid large scale dumping of
second hand machinery in Malaysia.
- Bernama.com, Friday, 8th April, 2011
31
Master Builders
1 s t & 2 n d Quarter 2011
MBAM Section
MBAM IN THE NEWS
RELAX TERMS FOR FOREIGN WORKERS
MBAM hopes the government will allow work permits to be extended five
years, lower medical insurance
to Malaysia to work in our construction industry.”
MBAM said.
KUALA LUMPUR: The Master Builders Association
Malaysia (MBAM) hopes the government will consider
relaxing its policies involving construction workers to
ensure sufficient manpower resources.
It also hoped Construction Labour Exchange Centre
Bhd (CLAB) would quickly implement its proposals on
creating transit centres to house foreign workers.
The association also hopes that the work permits of
foreign construction workers can be extended for another
five years immediately and any skills test charges should
be made affordable for the construction industry. In
a statement yesterday, it said the government should
lower the proposed medical insurance which would cost
RM120 per worker, even though it is supposed to be
borne by the foreign worker.
“The MBAM would like CLAB to study the impact
of labour movement on the Malaysian construction
industry when the economic integration of Asean
countries comes into effect by 2015,” the Association
said.
“The gradual limitation of foreign workers in this
country must juxtaposed with the need to preserve the
number of skilled construction workers so that they can
continue to contribute towards the economy.” it said.
“Employers will be required to enclose a copy of the
medical insurance policy for the workers when applying
for a new work permit or renewing work permits.”
“The amount will definately be a burden to foreign
construction workers and may deter them from coming
Master Builders
1 st & 2 nd Quarter 2011
- The Edge, Tuesday, 15th March, 2011
32
MBAM Section
MBAM IN THE NEWS
MBAM Hopes Government Will Relax
Policies For Construction Workers
KUALA LUMPUR, March 14 (Bernama) -- The Master Builders Association Malaysia (MBAM) hopes the government
will consider relaxing its policies involving construction workers to ensure sufficient manpower resources.
The association also hopes that the work permits of foreign construction workers can be extended for another five years
immediately and any skills test charges should be made affordable for the construction industry. In a statement on
Monday, it said the government should lower the proposed medical insurance which would cost RM120 per worker,
even though it is supposed to be borne by the foreign worker.
“Employers will be required to enclose a copy of the medical insurance policy for the workers when applying for a new
work permit or renewing work permits.”
“The amount will definitely be a burden to foreign construction workers and may deter them from coming to Malaysia
to work in our construction industry,” MBAM said. It also hoped the Construction Labour Exchange Centre Bhd
(CLAB) would quickly implement their proposals on creating transit centres to house foreign workers.
“The MBAM would like CLAB to study the impact of labour movement on the Malaysian construction industry when
the economic integration of Asean countries comes into effect by 2015,” the association said. “The gradual limitation
of foreign workers in this country, must be juxtaposed with the need to preserve the number of skilled construction
workers, so that they can continue to contribute towards the economy,” it said.
- Bernama.com, Monday, 14th March, 2011
WORKER SHORTAGE COULD HIT ETP PLANS
By Wong Pek Mei
PETALING JAYA: The acute shortage of skilled workers in the construction industry may have a negative impact on
the roll-out of projects under the 10th Malaysia Plan (10MP) and the Economic Transformation Programme (ETP), said
Master Builders Association Malaysia (MBAM).
Thus, the MBAM has urged the Government to extend the work permits of foreign construction workers for another
five years with immediate effect. Its president Kwan Foh Kwai said the move was also necessary to replenish the ageing
pool of skilled workers in the industry. According to a paper presented by the Construction Industry Development
Board Chief Executive Datuk Hamzah Hassan, 35% or 176,000 of 502,493 local construction workers will reach the
age of 50 and will most likely retire by 2017.
“We hope the Government will consider relaxing its policies involving construction workers,” he said in a statement.
He said the MBAM was also hoping that the Government would revise the skills test charges and make it more
affordable for the construction industry in view of the massive roll-out of projects under the 10MP and the ETP which
would require skilled workers, both local and foreign.
He was responding to the statement by Home Ministry Secretary-General Datuk Seri Mahmood Adam that the
Government was considering extending work permits for foreign workers for five years for other sectors in addition to
the plantation sector. He also urged the Government to consider lowering the proposed medical insurance, RM120 per
worker, that was to be borne by the foreign worker. “The amount will definitely be a burden to foreign construction
workers and may deter them from deciding to come to Malaysia,” he said.
The association also hoped the Construction Labour Exchange Centre Berhad (CLAB) would quickly implement its
proposal to create a transit centre to house foreign workers.
The centres, he said, would provide the necessary accommodation and amenities for the workers and prevent potential
abuse by unscrupulous employers.
Deputy Prime Minister Tan Sri Muhyiddin Yassin is scheduled to chair a meeting of the Special Task Force on foreign
workers tomorrow.
- The Star online, Wednesday, 16th March, 2011
33
Master Builders
1 s t & 2 n d Quarter 2011
MBAM Section
MBAM IN THE NEWS
Majlis Menandatangani Memorandum Perjanjian
Antara IPD - OUM dengan MBAM
Kursus baru perubatan dibeku LiMA TAHUN
Oleh Nik Sukry Ramli
Usaha Kekang Peningkatan Ketara Bilangan Graduan Dikeluar IPT.
KUALA LUMPUR: Kerajaan membekukan penawaran kursus baru bidang perubatan di institusi pengajian tinggi (IPT) awam dan
swasta selama lima tahun, bermula 1 Mei lalu.
Menteri Pengajian Tinggi, Datuk Seri Mohamed Khaled Nordin, berkata pembekuan itu dilaksanakan berikutan peningkatan
ketara bilangan graduan perubatan yang dikeluarkan IPT, kompetensi pegawai perubatan siswazah, tenaga pengajar dan masalah
kekurangan hospital pengajar.
Beliau berkata, langkah itu tidak menjejaskan bilangan pegawai perubatan diperlukan negara kerana pengeluaran graduan
perubatan dari 33 IPT tempatan di samping graduan perubatan yang pulang dari luar negara.
“Keputusan pelaksanaan moratorium (pembekuan) ini diambil pada mesyuarat Kabinet kelmarin, namun ia tidak akan
menjejaskan bilangan pegawai perubatan yang diperlukan negara dan pelajar yang sedang mengikuti pengajian masing-masing.
“Malah, ia diyakini mampu menghasilkan jumlah doktor perubatan yang mencukupi menjelang 2020 dengan nisbah seorang
pegawai perubatan kepada 400 penduduk (1:400),” katanya selepas menyaksikan majlis menandatangani Memorandum Perjanjian
antara Institut Pembangunan Profesional - Universiti Terbuka Malaysia (IPD-OUM) dengan Persatuan Pemborong Binaan
Malaysia (PPBM) serta melancarkan program IPD-OUM dan PPBM di sini, semalam.
Mohamed Khaled berkata, seramai 17,190 pelajar sedang mengikuti pengajian dalam bidang perubatan di 33 IPT, termasuk 6,918
di 22 IPTS sehingga 31 Januari lalu dalam pengajian peringkat matrikulasi hingga Doktor Falsafah. Beliau berkata, kementerian
dan Agensi Kelayakan Malaysia (MQA) akan menjalankan pemantauan dari semasa ke semasa terhadap kandungan program, dan
pengiktirafan IPT terbabit boleh ditarik balik sekiranya program ditawarkan tidak menepati kriteria dan piawaian akreditasi.
- Berita Harian, Jumaat, 6hb Mei 2011
Kursus baru perubatan dibeku
Oleh Faizah Izzani Zakaria
KUALA LUMPUR 5 Mei – Kerajaan bersetuju untuk melaksanakan moratorium atau pembekuan bagi penawaran kursus baru
dalam bidang perubatan selama lima tahun oleh mana-mana institusi pengajian tinggi (IPT) yang mahu menawarkan kursus
tersebut bermula 1 Mei lalu.
Menteri Pengajian Tinggi, Datuk Seri Mohamed Khaled Nordin berkata, pembekuan itu adalah satu bentuk kawalan yang perlu
dilaksanakan bagi memastikan bilangan graduan perubatan dihasilkan oleh IPT yang menawarkan kursus perubatan sedia ada dapat
menjalani latihan perubatan berkualiti. Beliau berkata, sehingga kini terdapat 33 IPT membabitkan awam dan swasta yang telah
pun menawarkan kursus pengajian perubatan peringkat sarjana muda.
“Pelaksanaan pembekuan ini sama sekali tidak akan menjejaskan bilangan pegawai perubatan yang diperlukan negara kerana
pengeluaran graduan perubatan dari 33 IPT sedia ada di samping graduan perubatan luar negara yang pulang ke Malaysia adalah
memadai,” katanya.
Beliau berkata demikian pada sidang akhbar selepas menyaksikan majlis menandatangani memorandum perjanjian antara Institut
Pembangunan Profesional - Universiti Terbuka Malaysia (IPD-OUM) dengan Persatuan Pemborong Binaan Malaysia (PPBM)
di hari ini. Pada majlis MoU itu, IPD-OUM diwakili Naib Presiden Kanan OUM, Profesor Dr. Mansor Fadzil manakala PPBM
diwakili Presidennya, Kwan Foh Kwai. Mohamed Khaled berkata, melalui pembekuan ini, Malaysia diyakini akan mampu
menghasilkan jumlah doktor perubatan berkualiti yang mencukupi menjelang 2020 dengan sasaran nisbah seorang doktor kepada
400 penduduk.
Beliau berkata, sehingga kini terdapat sebanyak 33 IPT membabitkan awam dan swasta yang menawarkan kursus pengajian
perubatan peringkat sarjana muda.
Terdahulu, Mohamed Khaled ketika berucap berkata, industri pada hari ini semakin berdaya saing, dan memerlukan tenaga kerja
berkemahiran yang mampu bersaing di peringkat tempatan serta antarabangsa. “Justeru itu, kerjasama antara OUM dan MBAM
sudah tentulah akan meningkatkan kebolehpasaran petugas pembinaan yang dapat membantu melonjakkan pertumbuhan industri
pembinaan,” katanya.
- Utusan Malaysia, Jumaat, 6hb Mei 2011
Master Builders
1 st & 2 nd Quarter 2011
34
MBAM Section
MBAM IN THE NEWS
Signing Memorandum of Agreement Between
IPD - OUM and MBAM
Medical course freeze gets nod
By Alycia Lim
KUALA LUMPUR: The five-year freeze on new medical courses at institutions of higher learning has been approved by the
Cabinet effective May 1.
Higher Education Minister Datuk Seri Mohamed Khaled Nordin, who made the announcement, said it was an immediate measure
to prevent houseman glut from becoming worse and to ensure more focus on quality. Mohamed Khaled had given the assurance in
December about the freeze or moratorium on medical programmes.
Yesterday, he said the moratorium would not affect the number of medical staff required by the country.
“We are looking at a doctor-patient ratio of 1:400 by the year 2020, which fulfils the requirement of an advanced nation. From the
number of students currently enrolled at the 33 higher education institutions nationwide, we can achieve that target,” he said after
signing a Memorandum of Understanding between Open University Malaysia and Master Builders Association Malaysia yesterday.
Mohamed Khaled added that the current doctor-patient ratio is 1:1000. He said the reasons for this move included the increasing
number of medical graduates and the lack of academic staff and training hospitals to produce competent housemen.
The move, he added, was a joint effort between the Ministries of Higher Education and Health. It is similar to a moratorium last
July which stopped the establishment of new nursing colleges and prohibited the launch of diploma programmes in nursing.
On Nov 27, The Star highlighted concerns about a glut on the number of housemen and the quality of fresh medical graduates.
Subsequently, Health Minister Datuk Seri Liow Tiong Lai told the Dewan Rakyat on Dec 6 about plans for the moratorium.
When contacted, Malaysian Medical Association president Dr David Quek said: “This is an extremely good move because there are
now too many new courses being offered in such a short span of time.
What the ministry has done will help to ensure that quality doctors are produced.”
- The Star, Friday 6th May 2011
Signing Ceremony of the Memorandum of Agreement taking place
35
Master Builders
1 s t & 2 n d Quarter 2011
MBAM Diary 2011
January
MOU Signing Ceremony Between MBAM and IPD OUM was held at Seri Pacific Hotel.
MBAM Deputy President, Mr Matthew Tee,
Representative from WCT Berhad, Ms Wong, Chief
Operating Officer, Ms Loh Mei Ling and Executive
Officer, Ms Chai Min Fung attended the Meeting on
Procedure and Entry Requirements for Foreign Workers at
CIDB.
MBAM President, Mr Kwan Foh Kwai attended the BIPC
Meeting held at ACEM Secretariat.
13th January 2011
4th January 2011
5th January 2011
MBAM Management Review Board Meeting No.1/2011
was held at MBAM.
MBAM Chief Operating Officer, Ms Loh Mei Ling,
Executive Officer, Ms Chai Min Fung & Executive Officer
Mr Wong Lerk Wei attended the CIDB Construction
Labour Wages Survey at CIDB.
MBAM President, Mr Kwan Foh Kwai, Vice President,
Mr Aziz Tan Sri Bahaman & Secretary-General, Ir. Yap
Yoke Keong attended the CLAB Board of Directors
Meeting No.1/2011 at CLAB Boardroom.
Ad - Hoc Committee on Business Entity Meeting
No 1/2011 was held at MBAM
6th January 2011
Safety & Health Committee Meeting No.1/2011 was held
at MBAM.
Fellowship Gathering No.1/2011 was held at POSH Club,
Desa Sri Hartamas.
7th January 2011
15th January 2011
MBAM Vice President, Mr Aziz Tan Sri Bahaman,
Tuan Syed Nasser and Senior Executive Officer, Ms Lee
Siew Mei attended the Discussion on Invitation to Win
Projects in Qatar 2011 in Relation to World Cup 2022 at
MATRADE.
MBAM Deputy Secretary-General 1, Ir. Chuan
Yeong Ming attended the 39th Anniversary of Kedah
Contractors’ and Building Suppliers’ Association at
Mergong City Garden Restaurant, Alor Setar.
18th January 2011
10th January 2011
Meeting on “Technical Committee on Geotechnical
Works” was held at SIRIM Bhd.
MBAM Vice President, Mr Foo Chek Lee, Maj (R) Ir.
Kamarulzaman Musa & Executive Officer, Ms Chai Min
Fung attended the DOSH Meeting on SHO & SSS
courses at DOSH, Putrajaya.
MBAM Chief Operating Officer, Ms Loh Mei Ling
attended the MPC Conference on Mondernising Business
Regulation at Grand Dorsett Subang Hotel.
11th January 2011
MBAM Executive Officer, Mr Leon Leong attended
the committee meeting organized by IBS International
Exhibition 2011 Malaysian at Grand Seasons Hotel.
MBAM Head of Technical Department, Ir. Kor Chan
Wah & Committee Member, Mr Khoo attended the
Malaysian Timber Council Timber Talk Series “Designing
Glulam Structures – Principles and Requirements” at
Menara PGRM.
19th January 2011
MBAM President, Mr Kwan Foh Kwai, Mr Lim Chong
Fong and Chief Operating Officer, Ms Loh Mei Ling
attended the Meeting between IEM and BIPC on CIPAA
at IEM Secretariat.
MBAM Vice President, Mr Aziz Tan Sri Bahaman &
Senior Executive Officer, Ms Lee Siew Mei attended
the Meeting with Potential Exhibitors for MSE 2011 at
Menara MATRADE.
Awards & Constitution Committee Meeting No. 1/2011
was held at MBAM.
12th January 2011
MBAM Council Member, Mr Abdul Rani Achmed
Abdullah and General Manager of Ideal Heights
Properties Sdn Bhd, Mr Lee Tong Leong attended the
CIDB meeting to deliberate on the Registration Criteria
for Facility Management Contractor at Grand Seasons
Hotel.
Master Builders
1 st & 2 nd Quarter 2011
21st January 2011
MBAM President, Mr Kwan Foh Kwai and Chief
Operating Officer, Ms Loh Mei Ling attended the
Meeting with Puan Alice, Legal Advisor to KKR at
Kementerian Kerja Raya.
36
MBAM Diary 2011
MBAM President, Mr Kwan Foh Kwai attended REHDA
Open House at Sime Darby Convention Centre.
Ms Loh Mei Ling attended the Discussion meeting with
CIDB on CIPAA at CIDB.
MBAM Machinery Resources Committe Chairman, Mr
Thomas Samuel, Safety & Health Committee Members,
Mr Vargis Joseph and Mr Ahmad Nazmi Mohd Ali,
Machinery Resources Committee Member, Ms Zini Tan
and PR Manager, Mr Lenny Lim attended the meeting
to discuss the reduction of import duty and sales tax
exemptions for machinery related to the construction held
at NIOSH, Bangi.
MBAM C&P Committee Members, Mr Steven Shee, Mr
Lim Chong Fong and Chief Operating Officer, Ms Loh
Mei Ling attended the Discussion meeting with CIDB on
CIPAA.
24th January 2011
MBAM Council Member, Mr Dennis Tan attended the
Technical Committee Meeting on Good Practices of
Green Technology In Construction Industry which was
held at Grand Seasons Hotel, KL.
International Affairs Committee Meeting No. 1/2011 was
held at MBAM.
25th January 2011 – 26th January 2011
MBAM President, Mr Kwan Foh Kwai and Ir. Kor Chan
Wah attended the CIDB Meeting on Implementation
of Autonomous Liberalisation for Construction and
Professional Services by year 2012 which was held at
Avillion Admiral Cove, Port Dickson.
25th January 2011
MBAM President, Mr Kwan Foh Kwai, Deputy President,
Mr Matthew Tee and Vice President, Mr Aziz Tan Sri
Bahaman attended the ENAA - Meet-Up With A View of
Establishing An Affiliation at MBAM.
CIDB - Construction Practices Technical Committee
Meeting was held at CIDB.
MBAM Committee Member, Ir. Quah Beng Teong
attended SIRIM - Working Group Meeting for Data
Exchange on Architectural and Engineering Drawing at
SIRIM Bhd.
26th January 2011
MBAM President, Mr Kwan Foh Kwai, Immediate PastPresident, Dato’ Ng Kee Leen, C&P Committee Member,
Mr Steven Shee and Chief Operating Officer, Ms Loh Mei
Ling attended the Meeting with KLRCA on CIPAA at
KLRCA.
27th January 2011
MBAM President, Mr Kwan Foh Kwai, C&P Committee
Member, Mr Steven Shee and Chief Operating Officer,
28th January 2011
MBAM Committee Member, Ir. Quah Beng Teong
attended the SIRIM - Technical Committee Meeting at
SIRIM Bhd.
MBAM President, Mr Kwan Foh Kwai attended the
Meeting with PEMUDAH on CIPAA at JPM Aras 4
Timur, Kompleks A, Bangunan Perdana Putra, Putrajaya.
MBAM Senior Executive Officer, Ms Lee Siew Mei
attended the SME Corp - Consultation with SMEs in
the Services Sector - Free Trade Agreement and Malaysian
SMEs at Menara MATRADE.
29th January 2011
MBAM President, Mr Kwan Foh Kwai and SecretaryGeneral, Ir. Yap Yoke Keong attended the Port Dickson
Builders Association Anniversary Dinner at Dewan-Tiong
Kok, Port Dickson.
February
8th February 2011, 9th February 2011 &
14th February 2011
MBAM Deputy Secretary General 1, Ir. Chuan Yeong
Ming and Executive Officer, Ms Chai Min Fung attended
MOHR - Minimum Wage Lab at PICC.
10th February 2011
MBAM President, Mr Kwan Foh Kwai gave a presentation
during the AFFIN Investment Corporate Luncheon at
Affin Investment Bank Bhd, Level 3, Chulan Tower.
MBAM President, Mr Kwan Foh Kwai and Deputy
President, Mr Matthew Tee attended the Majlis Pelancaran
Dasar Perumahan Negara at Dewan Perdana A, PICC.
11th February 2011
MBAM President, Mr Kwan Foh Kwai, Deputy President,
Mr Matthew Tee, Vice President, Mr Aziz Tan Sri
Bahaman and Senior Executive Officer, Ms Ms Lee Siew
Mei attended the Dialogue Meeting in conjunction with
the visit by the Honourable Deputy Prime Minister of
Syria to Malaysia at JW Marriott Hotel, KL.
37
Master Builders
1 s t & 2 n d Quarter 2011
MBAM Diary 2011
21st February 2011 - 22nd February 2011
MBAM Vice President, Dato’ Ir. Low Keng Kok and Vice
President, Ir. Tan Gim Foo attended the Study Mission
by Japan Building Materials Association (JBMA) at
MATRADE HQ.
MBAM ISO Certification Surveillance Audit by SIRIM
was held at MBAM.
21st February 2011
14th February 2011
MBAM Deputy President, Mr Matthew Tee, Vice
President, Mr Aziz Tan Sri Bahaman and Senior Executive
Officer, Ms Lee Siew Mei attended the MSBC - Briefing
on ‘Utilise the Malaysia - Singapore Third Country
Business Development Fund (MSBF) to Expand Your
Export Markets’ at MITI.
MBAM President, Mr Kwan Foh Kwai, Immediate
Past-President, Dato’ Ng Kee Leen and Chief Operating
Officer, Ms Loh Mei Ling attended the PEMUDAH
meeting on (CIPAA) Bill 2011 at JPA, Putrajaya.
MBAM Executive Officer, Ms Chai Min Fung attended
the Opening Ceremony on Minimum Wage Laboratories
of MOHR at PICC, Dewan B.
22nd February 2011
MBAM President, Mr Kwan Foh Kwai attended the
Monthly gathering of civil servants and Chinese new year
celebration at Dewan DRB, Pusat Bandar Damansara.
Mr Lim Keh Seng, Nehemiah Reinforced Soil Sdn Bhd
attended the SIRIM - Meeting No 2-2011 ‘Technical
Committee on Geotechnical Works’ at SIRIM Bhd.
MBAM PR Manager, Mr Lenny Lim attended the MITI
networking session with private sector in conjunction with
CNY at Restoran Felda Villa, Jalan Perumahan Gurney.
MBAM & OUM Collaborat​ion in Education & Training
meeting was held at OUM.
16th February 2011
MBAM Head of Technical Department, Ir. Kor Chan
Wah attended the SIRIM Technical Meeting on Fire
Properties of Building Materials at SIRIM Bhd.
MBAM President, Mr Kwan Foh Kwai, Vice President,
Dato’ Ir. Low Keng Kok, Secretary General, Ir. Yap
Yoke Keong, Material Resources Committee Members,
Mr. Eddie Lai and Mr Kum Eu Tsung, Chief Operating
Officer, Ms Loh Mei Ling and Executive Officer, Mr Leon
Leong attended the meeting with C&CA at MBAM.
17th February 2011
MBAM Deputy President, Mr Matthew Tee attended the
Launching of ISM 50th Anniversary Book at Crowne Plaza
Mutiara Hotel, Kuala Lumpur.
MBAM Vice President, Mr Aziz Tan Sri Bahaman
attended the Briefing on Project Qatar (World Cup 2022)
at Menara MATRADE.
MBAM Principal Officers Luncheon Meeting No.1/2011
was held at Arthur’s Bar & Grill, Shangri-La Hotel, KL.
24th February 2011
MBAM President, Mr Kwan Foh Kwai attended the
BMDAM Members New Year Gathering at China Court
Restaurant in Subang Avenue.
ICT Committee Meeting No. 1/2011 was held at MBAM.
25th February 2011
MBAM Council Meeting No.1/2011 was held at MBAM.
MBAM President, Mr Kwan Foh Kwai and Chief
Operating Officer, Ms Loh Mei Ling attended the
interview with CIDB 1 Bina at MBAM.
Contract and Practices Committee Meeting No. 1/2011
was held at MBAM.
MBAM Open House was held at Sime Darby Convention
Centre.
18 February 2011
th
MBAM President, Mr Kwan Foh Kwai attended
MHMBA Chinese New Year Gathering Dinner 2011 at
Prince Hotel & Residence, KL.
28th February 2011 & 1st March 2011
MBAM Committee Member, Mr Laxana Naidu &
Executive Officer, Ms Chai Min Fung attended the Low
Carbon Township Summit 2011 at The Corus Hotel, KL.
Membership Committee Meeting No. 1/2011 was held at
MBAM.
1 st & 2 nd Quarter 2011
23rd February 2011
MBAM Head of Technical Department, Ir. Kor Chan
Wah attended the National Committee on the use of
Timber in Construction (NCUTC) Bil.1/2011 at FRIM.
MBAM President, Mr Kwan Foh Kwai and Council
Member Mr Thomas Samuel attended the NRMCA
Annual Dinner at Hooi Loong Restaurant, SS22, PJ.
Master Builders
MBAM Committee Member, Dr. Yeow Yoon Foo
and Executive Officer, Ms Chai Min Fung attended
the meeting to discuss implementation lending skills
strategies enhancement training to those workers at
Perbadanan Tabung Pembangunan Kemahiran (PTPK).
38
MBAM Diary 2011
March
8th March 2011
Representative from Sunway Construction, Mr Wong
Chun Kai represents MBAM to attend the JKR & ISM
Seminar on Tendering for Success at Seri Pacific Hotel,
Kuala Lumpur.
1st March 2011
MBAM Council Member, Mr Thomas Samuel and PR
Manager Mr Lenny Lim attended the MITI Dialogue
Request - Industrial Dialogue Session with Metal Industry
Associations at MITI.
MBAM President, Mr Kwan Foh Kwai, Immediate Past
President, Dato’ Ng Kee Leen, Honorary Life President
Dato’ Lai Foot Kong, Vice President, Mr Aziz Tan Sri
Bahaman, Vice President Dato’ Sri Haji Sufri Haji
Mohd Zin, Vice President Mr Foo Chek Lee, Alternate
Representative of IJM Corporation, Mr James Wong
Tet Foh, Secretary-General Ir. Yap Yoke Keong, Deputy
Secretary-General 1, Ir. Chuan Yeong Ming, TreasurerGeneral Eric Lai, Chief Operating Officer Ms Loh Mei
Ling and Senior Executive Officer Ms Lee Siew Mei
attended the Courtesy Visit of ACF Chairman at MBAM.
MBAM President, Mr Kwan Foh Kwai, Vice President,
Mr Aziz Tan Sri Bahaman and Secretary - General Ir.
Yap Yoke Keong attended the CLAB Board Meeting No.
2/2011 at KLGCC.
MBAM Immediate Past President, Dato’ Ng Kee Leen
attended the CLAB Board of Advisory Meeting No.
1/2011 at KLGCC.
2nd March 2011
MBAM Chief Operating Officer, Ms Loh Mei Ling and
Executive Officer Ms Chai Min Fung attended the Wage
Rates Construction Workers Meeting on New Contract at
Grand Seasons Avenue.
MBAM Vice President, Mr Aziz Tan Sri Bahaman
attended the New Zealand High Commission, Kuala
Lumpur and the University of Auckland Networking
Dinner at New Zealand Commissioner’s Residence in
Jalan Langgak Golf.
3rd March 2011
9th March 2011
MBAM Head of Technical Department, Ir. Kor Chan
Wah attended the CIDB Task Force Committee Meeting
on Eco-labelling in the Construction Industry at CIDB.
MBAM Executive Officer, Mr Leon Leong attended the
Technical Committee Meeting on Household Fittings
and Building Accessories No.3/2011 at SIRIM Bhd.
Safety & Health Committee Meeting No.2/2011 was
held at MBAM.
Sub-Committee on OUM Programme Modules Meeting
No. 2 was held at MBAM.
4th March 2011
10th March 2011
MBAM Vice President, Mr Aziz Tan Sri Bahaman and
PR Manager Mr Lenny Lim attended the Consultation
Session on Showcase Malaysia 2011, Dhaka, Bangaldesh
organized by MATRADE at Menara MATRADE.
Ad-Hoc Committee on Business Entity Meeting No.
2/2011 was held at MBAM.
MBAM Deputy President, Mr Matthew Tee, Deputy
Secretary-General 1, Ir. Chuan Yeong Ming, Chief
Operating Officer Ms Loh Mei Ling and Executive
Officer Ms Chai Min Fung attended the discussion on
Trade Foremen Training with CIDB.
MBAM Chief Operating Officer Ms Loh Mei Ling
attended the Meeting to discuss the Participation of
Malaysian Companies at the 8th Construction Technology
and Building Materials Fair 2011, Doha, Qatar at Menara
MATRADE.
Environment Committee Meeting No. 1/2011 was held
at MBAM.
5th March 2011
14th March 2011
MBAM Deputy President, Mr Matthew Tee attended the
Malaysian Institute of Estate Agents Opening Ceremony
of Malaysian Annual Real Estate Convention at Sime
Darby Convention Centre.
Ad-Hoc Committee on Business Entity No. 3/2011 was
held at MBAM.
MBAM Senior Executive Officer, Ms Lee Siew Mei
attended the Seminar on Project Qatar 2022 - Doing
Business & Opportunities in The Construction Industry
in QATAR at MATRADE Hall.
7th March 2011
MBAM President, Mr Kwan Foh Kwai, Secretary-General
Ir. Yap Yoke Keong and Chief Operating Officer Ms Loh
Mei Ling attended the Meeting to Discuss Buildtech
2011 at MBAM.
MBAM Chief Operating Officer, Ms Loh Mei Ling and
PR Manager Mr Lenny Lim attended the Meeting with
39
Master Builders
1 s t & 2 n d Quarter 2011
MBAM Diary 2011
24th March 2011
Mixmedia Solutions discussion on MBAM Corporate
Video at MBAM.
MBAM Executive Officer Mr Leon Leong attended the
SIRIM TC Meeting No. 2/2011 “Working Group on
Ceramic Tiles” at SIRIM Bhd.
15th March 2011
MBAM Council Member, Mr Dennis Tan attended the
Opening Ceremony of the 2nd Asia Pacific Regional Water
Conference & Exhibition 2011 at Grand Dorsett Subang.
Head of Technical Department, Ir. Kor Chan Wah
attended the SIRIM TC Meeting No. 3/2011 “Concrete
and Concrete Products” at SIRIM Bhd.
16th March 2011
MBAM Vice President, Dato’ Ir. Low Keng Kok attended
the SUHAKAM on Roundtable Discussion on Business
and Human Rights at Menara TH Perdana.
MBAM President, Mr Kwan Foh Kwai, Vice President,
Mr Aziz Tan Sri Bahaman and Senior Executive Officer,
Ms Lee Siew Mei attended the Luncheon Meeting on
Forming a Consortium in Relation to Project Qatar 2022
at MATRADE.
Renovation Committee Meeting was held at MBAM.
17th March 2011
MBAM Executive Officer Ms Chai Min Fung and
Representative from Suncon, Mr Subramaniam attended
the DOSH Dialogue on Draft OSH (Noise Exposure) at
Institute KWSP.
Contract & Practices Committee Meeting No. 2/2011
was held at MBAM.
A Mock ICC Arbitration was held at MBAM.
Safety & Health Committee Meeting No. 3/2011 was
held at MBAM.
25th March 2011
MBAM Senior Executive Officer, Ms Lee Siew Mei
attended the Pre-Departure Briefing for MSE 2011.
ICT Committee Meeting No. 1/2011 was held at
MBAM.
18th March 2011
MBAM Fellowship Gathering No. 2/2011 was held at The
Hill, Damansara Height.
MBAM Chief Operating Officer, Ms Loh Mei Ling
attended the MAPEX Launching at Mid Valley
Convention Centre.
MBAM Vice President, Mr Aziz Tan Sri Bahaman
attended the Malaysia Fire Protection Association 34th
Annual Dinner at Grand Dorsett Subang.
21st March 2011
International Affairs Committee Meeting No. 2/2011 was
held at MBAM.
28th March 2011
Awards and Constitution Committee Meeting No.
2/2011 was held at MBAM.
MBAM Vice President, Mr Aziz Tan Sri Bahaman and
Senior Executive Officer, Ms Lee Siew Mei attended the
Roadshow for the 8th CHINA-ASEAN EXPO (CAEXPO
2011) Nanning, China at MATRADE Hall.
22nd March 2011
MBAM Vice President, Mr Foo Chek Lee attended the
NCOSH Meeting No. 1/2011 at Bangunan Utama,
Parlimen Malaysia.
MBAM Chief Operating Officer, Ms Loh Mei Ling and
Executive Officer Ms Chai Min Fung attended the CIDB
Meeting on Wages Survey at CIDB.
57th MBAM Anniversary Dinner Organizing Committee
Meeting No. 3/2011 was held at MBAM.
MBAM Chief Operating Officer, Ms Loh Mei Ling
attended the Meeting with Ms Adeline Quek International
Enterprise Singapore (IE Centre Director Based in KL) at
MBAM.
23rd March 2011
MBAM President, Mr Kwan Foh Kwai, Executive Officer
Ms Chai Min Fung, Executive Officer, Mr Wong Lerk
Wei and Representative from IJM, Mr Azizi attended
the Launching of MGBC’s First Green Pages Malaysia
Green Building Products and Services Directory at Royale
Chulan Hotel.
29th March 2011
Mr Vincent Lim, Mr Ooi Beng Hooi and Mr Hanafi
Ibrahim attended the TNB Workshop on Electricity
Supply Application Handbook at Wisma TNB.
M & E Committee Meeting No. 1/2011 was held at
MBAM.
Head of Technical Department Ir. Kor Chan Wah
attended the Briefing on Improvement of e-permit system
for the Production of Certificate of Approval (COA) at
Grand Season Avenue.
Publications Committee Meeting No. 3/2011 was held at
MBAM.
Master Builders
1 st & 2 nd Quarter 2011
40
MBAM Diary 2011
Representative from Sungai Long Industries, Mr Ooi Tat
Lean attended the Ready Mixed Concrete (Wet Batching
Plant) Certification Scheme at Concorde Shah Alam.
of Partnering Approach as a Strategy in Enhancing
Construction Project Implementation Performance for
the Malaysian Construction Industry” at Corus Hotel.
MBAM Vice President, Mr Foo Chek Lee and Executive
Officer, Ms Chai Min Fung attended the DOSH Meeting
on Implementation of Occupational Safety and Health
Master Plan 15 (OSH-MP15) for Strategy 3, No. 1/2011
at DOSH.
Alternate MBAM Council Member, Dr. Michael William
King, Chief Operating Officer, Ms Loh Mei Ling and
Executive Officer, Mr Leon attended the Invitation to be
a Guest Speaker for Tekla Structures 17 Launch at Bukit
Jalil Golf Resort.
MBAM President, Mr Kwan Foh Kwai attended the
Luncheon with Minister of MHOLG hosted by PAM in
conjunction with the launch of GBI Township Rating
Tool and RNC Tool at Sime Darby Convention Centre.
MBAM President, Mr Kwan Foh Kwai and Executive
Officer, Ms Chai Min Fung attended the Launch of GBI
Township Rating Tool and RNC Tool at Sime Darby
Convention Centre.
Meeting on Talk on Green Energy Amongst Speakers was
held at MBAM.
30th March 2011
MBAM Principal Officers Luncheon No. 2/2011 was
held at West Lake Garden, Sunway Resort Hotel.
31 March 2011
st
MBAM Vice President, Mr Aziz Tan Sri Bahaman and
Senior Executive Officer, Ms Lee Siew Mei attended
the International Seminar on Business Opportunities
in Pakistan Organised by the Board of Investment,
Government of Pakistan with MIDA at JW Mariott
Hotel, Kuala Lumpur.
Safety & Health Committee Meeting No. 4/2011 was
held at MBAM.
MBAM Deputy President, Mr Matthew Tee, Deputy
Secretary-General 1, Ir. Chuan Yeong Ming, Chief
Operating Officer Ms Loh Mei Ling and Executive
Officer Ms Chai Min Fung attended the Skills
Development Fund Corporation (SDFC) on the Skills
Training Loan Programme at PTPK, Pusat Damansara.
Renovation Committee Meeting was held at MBAM.
Education & Training Committee Meeting No.1/2011
was held at MBAM.
April
1st April 2011
ICT Committee Meeting No. 2/2011 was held at
MBAM.
4th April 2011
Alternative MBAM Council Member, Mr James Wong
Tet Foh attended the CIDB Workshop “The Application
MBAM Council Member, Mr Thomas Samuel and
Executive Officer, Mr Lenny Lim attended “Mesyuarat
Tindakan Susulan terhadap Cadangan Pelaksanaan
Standard Mandation ke atas Produk Logam” at MITI.
5th April 2011 - 7th April 2011
MBAM President, Mr Kwan Foh Kwai , Immediate Past
President, Dato’ Ng Kee Leen, Vice President, Mr Foo
Chek Lee, Deputy Secretary General 1, Ir. Chuan Yeong
Ming attended Malaysian IBS International Exhibition
2011 (MIIE 2011) Opening Ceremony at CIDB, Jalan
Cheras.
5th April 2011
MBAM President, Mr Kwan Foh Kwai and SecretaryGeneral, Ir. Yap Yoke Keong attended the Final
Deliberation for SME Innovation Award 2011 Services
and Construction Category at Menara MATRADE.
6th April 2011
Renovation Committee Meeting was held at MBAM.
7th April 2011 - 11th April 2011
Talk on Problems and Issues Affecting Manpower Supply
for the Construction Industry by P.T. Hastainsan Perkasa
was held at MBAM.
MBAM President, Mr Kwan Foh Kwai attended the
BIPC Meeting to discuss on Build and Sell at PAM.
MBAM Deputy President, Mr Matthew Tee Kai Woon,
Vice President, Mr Aziz Tan Sri Bahaman and Chief
Operating Officer, Ms Loh Mei Ling attended 3rd Xiamen
International Construction Machinery Exhibition 2011
(XICME 2011) at Xiamen International Conference &
Exhibition Centre.
8th April 2011
MBAM President, Mr Kwan Foh Kwai, Immediate Past
President, Dato’ Ng Kee Leen, Vice President, Ir. Tan
Gim Foo and Secretary-General, Ir. Yap Yoke Keong
attended the Meeting with the Minister of Works,
Malaysia at Sime Darby Convention Centre.
41
Master Builders
1 s t & 2 n d Quarter 2011
MBAM Diary 2011
9th April 2011
19th April 2011
MBAM Account Audit was held at MBAM.
MBAM Environment Committee Chairman, Mr Dennis
Tan attended the REDHA Golf Tournament 2011 at
Orna Golf & Country Club, Melaka.
Mr KG Raj attended SIRIM Technical Committee
Meeting on Steel for Structural Purposes at SIRIM Bhd.
12th April 2011
MBAM Safety & Health Committee Chairman, Mr Foo
Chek Lee and Executive Officer, Ms Chai Min Fung
attended the Pre-Meeting with KLIA on SHO & SSS
Course at IOI Resort, Putrajaya.
MBAM Safety & Health Committee Chairman, Mr
Foo Chek Lee and Executive Officer, Mr Wong Lerk
Wei attended the PERKESO Seminar on the Accident
Prevention 2011 at PWTC.
20th April 2011
13th April 2011
MBAM Deputy President, Mr Matthew Tee Kai Woon,
Deputy Secretary-General I, Ir. Chuan Yeong Ming,
Honorary Advisor, Mr Chua Siow Leng, Alternate
Council Member, Mr Andrew Ong, Education
Committee Member, Dr. Yeow Yoon Foo, Head of
Technical Department, Ir. Kor Chan Wah, Chief
Operating Officer, Ms Loh Mei Ling and Senior
Executive Officer, Ms Zharraine Chang attended Briefing
by UK Consultant on Vocational Training Education
and OUM-MBAM Joint Committee Meeting at OUM
Campus.
MBAM Environment Committee Chairman, Mr Dennis
Tan attended the JKR Inception Workshop for Building
Sector Energy Efficiency Project at Istana Hotel.
14th April 2011
MBAM President, Mr Kwan Foh Kwai, Deputy
President, Mr Matthew Tee Kai Woon, Vice President,
Dato’ Sri Sufri Mohd Zin, Alternate Council Member,
Mr Andrew Ong, Education Committee Members, Mr
Jaspal Singh, Mr Stewart Lee and Dr. Yeow Yoon Foo,
Chief Operating Officer, Ms Loh Mei Ling and Senior
Executive Officer, Ms Zharraine Chang attended the
Meeting with Deputy Director General of Strategic,
Department of Polytechnic Education at Department of
Polytehnic.
21st April 2011
MBAM PR Manager, Mr Lenny Lim attended the CSIM
Courtesy Visit with Cik Mariam Salleh, Director for
Services Sector Development Divison, MITI at SSDD
Meeting, MITI.
MBAM President, Mr Kwan Foh Kwai, Chief Operating
Officer, Ms Loh Mei Ling and PR Manager, Mr Lenny
Lim attended the National Seminar in Built Environment
on “Outlook and Challenges for the Construction
Industry in the Domestic and Overseas Market” at Grand
Dorsett Subang.
MBAM President, Mr Kwan Foh Kwai, Deputy
President, Mr Matthew Tee Kai Woon, Safety & Health
Committee Chairman, Mr Foo Chek Lee, SecretaryGeneral, Ir. Yap Yoke Keong, Deputy Secretary-General I,
Ir. Chuan Yeong Ming, Deputy Secretary-General II, Ng
Eng Keat and Chief Operating Officer, Ms Loh Mei Ling
attended the MBAM Dialogue with Dato’ Ir Hamzah
Hasan, Chairman of CIDB, at CIDB.
15th April 2011
Safety and Health Committee Meeting No. 4/2011 was
held at MBAM.
MBAM Safety & Health Committee Chairman, Mr Foo
Chek Lee and Executive Officer, Ms Chai Min Fung
attended the Meeting with KLIA on SSS Course at KLIA.
16th April 2011
MBAM Chief Operating Officer, Ms Loh Mei Ling and
Executive Officer, Ms Wong Lerk Wei attended Green
Card Training at Faber Tower.
MBAM Annual Golf Committee Meeting was held at
MBAM.
17th April 2011 - 20th April 2011
MBAM President, Mr Kwan Foh Kwai and Vice
President, Mr Aziz Tan Sri Bahaman attended Malaysian
Services Exhibition 2011 in Abu Dhabi, United Arab
Emirates.
22nd April 2011
18th April 2011
MBAM Chief Operating Officer, Ms Loh Mei Ling and
PR Manager, Mr Lenny Lim attended the Meeting with
MixMedia Solutions Sdn Bhd on MBAM Corporate
Video.
MBAM Executive Officer, Mr Leon Leong attended
the SIRIM Technical Committee Meeting on Bricks &
Blocks at SIRIM Bhd.
MBAM Deputy President, Mr Matthew Tee Kai Woon
attended the MPC Engagement Session with Chief
Secretary to the Government on World Bank Doing
Business Report at Sime Darby Convention Centre.
Master Builders
1 st & 2 nd Quarter 2011
42
MBAM Diary 2011
Contract and Practices Committee Meeting No. 3/2011
was held at MBAM.
MBAM Safety & Health Committee Chairman, Mr Foo
Chek Lee and Executive Officer, Ms Chai Min Fung
attended DOSH Meeting to discuss the SHO & SSS
Courses at DOSH Putrajaya.
Fellowship Gathering No. 3 was held at OVO Kitchen
Bistro Club, Up Town Damansara.
MBAM Annual Golf Committee Chairman, Mr
Tony Tan, Council Member, Kenneth Liew and Chief
Operating Officer, Ms Loh Mei Ling attended the
Meeting with KLGCC at KLGCC.
MBAM Environment Committee Chairman, Mr Dennis
Tan attended the SPAN Meeting on Preparation Standard
Malaysia for Product “Small Sewage Treatment System” at
Ibu Pejabat SPAN.
25th April 2011
May
MBAM Vice President, Ir. Tan Gim Foo and Vice
President, Mr Aziz Tan Sri Bahaman attended the
Opening Ceremony for TCDPAP & FIDIC - ASPAC
Kuala Lumpur Conference 2011 at Sunway Resort &
Spa.
3rd May 2011
ICT Committee Meeting No. 3/2011 was held at
MBAM.
MBAM Chief Operating Officer, Ms Loh Mei Ling and
PR Manager, Mr Lenny Lim attended the Meeting with
KB Lim on Buildtech 2011 at MBAM.
4th May 2011
MBAM President, Mr Kwan Foh Kwai and PR Manager,
Mr Lenny Lim attended the Economic Council Meeting
Group Meeting on Discussion on Strategy Package
for Budget 2012 in the Construction Sector at RAM
Holding Berhad.
Publication Committee Meeting was held at MBAM.
26th April 2011
Seminar on Business Opportunities From Renewable
Energy was held at MBAM.
MBAM Principal Officers Luncheon No. 3/2011 was
held at West Lake Garden, Sunway Resort Hotel.
MBAM Vice President, Mr Aziz Tan Sri Bahaman
attended the Dialogue Meeting in Conjunction with the
Visit by the Hon. Minister of Housing and Construction,
Republic of Iraq, H.E. Mohamed Muhammed Al-Darraji
at JW Marriot Hotel.
MBAM Vice President, Dato’ Sri Haji Sufri Haji Mohd
Zin, Deputy Secretary-General 1, Ir. Chuan Yeong
Ming, Committee Member, Dr Yeow Yoon Foo, Head of
Technical Department, Ir. Koh Chan Wah and Honorary
Advisors (Education & Training Services), Mr Chua
Siow Leng attended IPD-OUM Programmes Working
Committee Meeting No. 4 at OUM Campus.
MBAM Executive Officer, Ms Chai Min Fung attended
the Launching of the Skills Training Loan for Workers at
Dewan Serbaguna Kementerian Sumber Manusia.
MBAM Vice President, Dato’ Sri Haji Sufri Haji Mohd
Zin, Deputy Secretary-General 1, Ir. Chuan Yeong Ming,
Head of Technical Department, Ir. Kor Chan Wah,
Honorary Advisors (Education & Training Services),
Mr Chua Siow Leng, Chief Operating Officer, Ms Loh
Mei Ling, Executive Officer, Ms Chai Min Fung and
Executive Officer, Mr Lenny Lim attended the Rehearsal
for IPD-OUM & MBAM MOA Signing Ceremony &
Programmes Launching at PWTC.
27th April 2011
MBAM Executive Officer, Mr Leon attended SIRIM
Meeting “Technical Meeting on Concrete and Concrete
Products’ at SIRIM Berhad.
Briefing to Human Resources Managers on OUM
Programmes was held at MBAM.
International Affairs Committee Meeting No. 3/2011 was
held at MBAM.
5th May 2011
MBAM President, Mr Kwan Foh Kwai, Immediate Past
President, Dato’ Ng Kee Leen, Deputy President, Mr
Matthew Tee Kai Woon, Secretary-General, Ir. Yap Yoke
Keong, Deputy Secretary-General I, Ir. Chuan Yeong
Ming, Vice President, Dato’ Sri Haji Sufri Haji Mohd
Zin, Vice President Ir.Tan Gim Foo, Vice President,
Mr Foo Chek Lee, Deputy Secretary-General II,
Mr Ng Eng Keat, Treasurer-General, Eric Lai Wee Meng
attended the IPD-OUM & MBAM MOA Signing
28th April 2011
MBAM Chief Executive Officer, Ms Loh Mei Ling
attended the Official Launch of ACCCIM SocioEconomic Research Centre at ACCCIM, Wisma Chinese
Chamber.
Membership Committee Meeting No. 2/2011 was held at
MBAM.
43
Master Builders
1 s t & 2 n d Quarter 2011
MBAM Diary 2011
Head of Technical Department, Ir. Kor Chan Wah
attended the PPSPPA Meeting to discuss Management of
Construction Solid Waste at Wisma UOA Pantai.
Ceremony & Official Launching of IPD-OUM &
MBAM Programmes at PWTC.
MBAM Vice President, Mr Aziz Tan Sri Bahaman
presented a paper to Persidangan Pengawai Kanan &
Agensi Tahun 2011 at Hotel Equatorial Penang.
13th May 2011
Safety & Health Committee Meeting No. 6/2011 was
held at MBAM.
Head of Technical Department, Ir. Kor Chan Wah
attended MITI - Committee on Mandatory Industrial
Standard (CMIS) Meeting No. 2/2010 at Perdana Hall
MITI
16th May 2011
Ms Noor Azaniza & Ms Noor Ezawati from WCT Sdn
Bhd attended CIDB Seminar on Promotion of Standard
and Quality Programme 2011 at CIDB Convention
Centre.
6th May 2011
MBAM Council Meeting No. 3/2011 was held at
MBAM.
19th May 2011
8 May 2011
th
MBAM Executive Officer, Ms Chai Min Fung and
Executive Officer, Ms Wong Lerk Wei attended the
CLAB Hari Bersama Pelanggan 2011 at Sime Darby
Convention Centre.
MBAM President, Mr Kwan Foh Kwai attended Selangor
and Federal Territory Builders Association on the
Occasion of the 51st Anniversary of the Association at the
Golden Dragonboat Restaurant Sdn Bhd.
Fellowship Gathering No. 4/2011 was held at Barbarillos
Restaurant & Bar.
9 May 2011
th
MBAM Environment Committee Member, Mr Nazmi
Mohamed Ali attended the SIRIM WG On Code
of Practice for Construction at Highly Hazardous
Workplace.
Talk on Extension of Time and Variation Claims, What
to Look Out for Pre and Post Contract was held at
MBAM.
10th May 2011
MBAM Vice President, Mr Aziz Tan Sri Bahaman
presented a paper at the 16th National Convention of
Civil Engineering in Bangkok, Thailand.
MBAM Vice President, Mr Foo Chek Lee, Mr Mohd
Nasir Bin Shaharudin from IJM & Executive Officer, Ms
Chai Min Fung attended the DOSH Dialogue Pindaan
AKKP 1994, Migrasi AKJ & Akta Petroleum & Ratifikasi
C187 at PICC.
20th May 2011
Meeting between Safety & Health Committee and KLIA
Training was held at MBAM.
11th May 2011
MBAM Chief Operating Officer, Ms Loh Mei Ling,
PR Manager, Mr Lenny Lim and Executive Officer, Ms
Wong Lerk Wei attended the Overview of E-Document
Management System at Menara Sunway, Petaling Jaya.
57th MBAM Anniversary Dinner Organizing Committee
Meeting No. 4/2011 was held at MBAM.
Joint Committee Meeting between OUM and MBAM
to finalise the Modules for the Executive Bachelor
Programmes was held at MBAM.
21st May 2011
12 May 2011
th
MBAM Vice President, Mr Aziz Tan Sri Bahaman
attended Malaysia-Zhengzhou Trade & Economic
Cooperation Meeting at Hotel Istana, Kuala Lumpur.
MBAM President, Mr Kwan Foh Kwai attended the
MPC Launching of Productivity Report 2010/2011
and Productivity Award 2010 Presentation Ceremony at
Grand Dorsett, Subang.
25th May 2011 - 28th May 2011
MBAM President, Mr Kwan Foh Kwai, Immediate
Past President, Dato’ Ng Kee Leen, Deputy President,
Mr Matthew Tee, Treasurer-General and Chief
Delegate for 2nd IIICF 2011, Mr Eric Lai Wee Meng,
Deputy Secretary-General 1, Ir. Chuan Yeong Ming,
Chief Operating Officer, Ms Loh Mei Ling, Sunway
Construction Sdn Bhd, Mr Poon Kon Hoo, Malaysia
MBAM Deputy Secretary-General I, Ir. Chuan Yeong
Ming, Chief Operating Officer, Ms Loh Mei Ling,
Executive Officer, Ms Chai Min Fung, HR Committee
Members, Mr Dong Sech Sing, Mr Mazlan Haron and
Ms Sue Yong attended Courtesy Visit to the Labour
Department (JTK) at Pusat Pentadbiran Kerajaan
Persekutuan, Putrajaya.
Master Builders
1 st & 2 nd Quarter 2011
44
MBAM Diary 2011
Mobile Crane Owners Association (MMCOW), Mr Lai
Keng Guan and Mr Lai Eng Soon, Construction Industry
Development Board, Datuk Ir. Hamzah Hasan and Mr
Ahmad Farrin Mokhtar attended the 2nd International
Infrastructure Investment & Construction forum by
CHINCA at Beijing, China.
25th May 2011
MBAM Executive Officer, Mr Leon Leong and Material
Resources Committee Member, Mr Michael Thong
attended Technical Committee on Ceramic Materials and
Sanitary Fittings at SIRIM Bhd.
Secretary-General, Ir. Yap Yoke Keong, Safety & Health
Committee Chairman, Mr Foo Chek Lee and Executive
Officer, Ms Chai Min Fung attended MBAM/Lighthouse
Club Safety Awards Meeting at Grand Seasons Avenue.
27th May 2011
MBAM Head of Technical Department, Ir. Kor Chan
Wah attended Technical Committee on ISCP at SIRIM
Bhd.
MBAM Executive Officer, Mr Leon Leong attended
Technical Meeting on Concrete and Concrete Products at
SIRIM Bhd.
Information & Communication Technology Committee
Meeting No. 4/2011 was held at MBAM.
28th May 2011
MBAM Executive Officer, Mr Lenny Lim attended the
MGBC 2nd Annual General Meeting at Sime Darby
Convention Centre.
31st May 2011
MBAM President, Mr Kwan Foh Kwai, MBAM 57th
Anniversary Dinner Organising Committee Chairman,
Mr Oliver Wee, Vice President, Mr Tan Gim Foo,
Deputy President, Mr Matthew Tee Kai Woon, Vice
President, Mr Aziz Tan Sri Bahaman, Secretary-General,
Ir. Yap Yoke Keong, Alternate Council Member, James
Wong, Treasurer-General, Mr Eric Lai Wee Meng,
Alternate Council Member Dr. Michael William King,
Chief Operating Officer, Ms Loh Mei Ling, Executive
Officer, Ms Zharraine Chang, Executive Officer, Ms Lee
Siew Mei attended the 57th MBAM Anniversary Dinner
Technical Meeting at Sunway Resort Hotel & Spa.
Master Builders
1 st & 2 nd Quarter 2011
46
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Master Builders
1 st & 2 nd Quarter 2011
48
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49
Master Builders
1 s t & 2 n d Quarter 2011
Articles
ARBITRATION IN THE CONSTRUCTION
INDUSTRY
Chang Wei Mun, Partner, Raja, Darryl & Loh*
Historically, about 60% of the cases handled by
the Kuala Lumpur Regional Centre for Arbitration
(“KLRCA”) are construction based arbitrations. If
we also consider the construction arbitrations handled
through the Pertubuhan Akitek Malaysia (“PAM”)
and the Institution of Engineer’s Malaysia (“IEM”),
this would suggest that the majority of arbitrations in
Malaysia are construction based.
The reason for this is quite simple. Most, if not all the
more popular standard form construction contracts
used in Malaysia contain an arbitration clause.
Under the present state of our laws, this clause will
be enforceable in that unless both parties agree to
litigate, the Court will in all probability stay litigation
thereby forcing the parties to arbitrate.
(a)
Who they wish to appoint as the arbitrator.
(b)
How many arbitrators they wish to use.
(c)
Whether they wish to adopt any rules of
arbitration and if so which rules to use.
(d)
Whether they wish to have an ad hoc
arbitration or one that is administered by
an arbitration body.
(e)
Where they wish to hold the arbitration both
legally and geographically.
Although it is open to the parties to agree on these
matters at any time, it is usually easier to get the
parties to agree before any disputes arise; preferably
at the point when the arbitration clause or agreement
is being negotiated.
Why Choose to Arbitrate in the First Place?
Traditionally it is said that the construction industry
favours arbitration over litigation due to its speed,
costs, privacy and flexibility. However, with the
recent developments in the court system, it may no
longer be generally the case that arbitration will be
faster than litigation. Further, the costs of arbitration
are rising. Especially in cases where 3 person
tribunals are constituted, it may well be the case that
arbitration may cost more than litigation. As for
privacy, this advantage is limited given the fact that
parties in applying to set aside an award may file the
relevant arbitration documents into court in which
case it becomes accessible.
In view of this, and in order to be able to take full
advantage of the flexibility of arbitration, it is always a
good idea for the parties to sit down and decide, when
negotiating their contract, how they want to run an
arbitration when that becomes necessary, rather than
just leave it to the standard arbitration clause found
in a standard form construction contract.
What remains generally true, however, is that
arbitration tends to be much more flexible than
litigation and this is a very real advantage. In this
connection, the parties to an arbitration can choose
for example:
Choosing the right arbitrator is arguably one of
the most important decisions to be made in an
arbitration. In this connection, under the framework
of the Arbitration Act 2005 (“Arbitration Act”), it is
submitted that challenging the substantive correctness
of the decision by the arbitrator will generally not be
a ground for setting aside an award (see section 37).
Master Builders
1 st & 2 nd Quarter 2011
In this connection, some of the issues that should be
considered and discussed will be as follows:
Who do you want to be your Arbitrator?
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Most arbitration clauses in standard form construction
contracts provide that parties may agree on who will
be their sole arbitrator failing which the appointment
may be made by a stipulated body. If the PAM standard
form arbitration clause is used, then the appointing
body will be PAM in which case the appointed
arbitrator will likely be an Architect. Similarly if the
IEM standard form arbitration clause is used then
IEM will be the appointing body and it is likely that
an Engineer will be appointed. If no appointing
body is stipulated in the arbitration clause, then by
default the appointing body will be the Director of
the KLRCA in accordance with section 13 of the
Arbitration Act.
When choosing an arbitrator, it is important to choose
someone with suitable qualification, practical and
procedural knowledge and experience, and technical
expertise. Knowledge in contract and procedure and
experience in arbitration is usually required in most
cases. However unless you are dealing with specialist
sub-contracts, it is usually difficult to decide which
area of technical expertise is required of an arbitrator
until the disputes arises (whether in the field of
architecture, engineering, quantity surveying, law or
a combination of fields).
Although it is always best to agree on the arbitrator after
the disputes arise so that the most suitable arbitrator
can be chosen, you must bear in mind that, tactically
speaking, the party with a weak case may sometimes
deliberately not wish to have a good arbitrator thereby
leading to a situation where agreement cannot be
reached. In a situation like this, you may wish to
consider:
(a)
stating the qualifications which an arbitrator
must possess in the arbitration clause; and/or
(b)
naming an appointing body in the arbitration
clause which is likely to appoint an arbitrator
with the requisite qualification suitable to the
area of dispute most likely to occur (ie if you
think an engineering dispute is most likely to
arise then use IEM as the appointing body
or in cases where architectural disputes are
most likely to arise then use PAM). In cases
where you cannot forsee the area of dispute,
then there are appointing bodies that are not
affiliated with any profession for example the
KLRCA whose panel includes arbitrators from
wide and diverse areas of expertise.
How many Arbitrators do you want to use?
The number of arbitrators used is usually one or three.
The use of a sole arbitrator has been discussed above.
Where three arbitrators are to be used, arbitration
clauses commonly provide that each party will choose
one arbitrator and the two appointed arbitrators will
appoint the third arbitrator. This is also the default
position provided by section 13(3) of the Arbitration
Act.
Obviously the costs of the arbitration will increase
with the number of arbitrators. As such, when
deciding on the number of arbitrators, you should
consider the nature and subject matter of the dispute,
the complexity of the dispute and the quantum
involved. Usually this only becomes evident when the
dispute arises. For example, in a main contract with
a contract sum of RM100 million, the dispute might
involve RM100,000.00 or RM50million and the
smaller quantum dispute may be more complicated
than the larger one.
Although it is best to decide this when the dispute
arises, sometimes, in the heat of the dispute, parties
may no longer be able to have a sensible negotiation
to decide on the number of arbitrators. Hence, it is
suggested that the number of arbitrators should be
thought of when drafting the arbitration clause.
If at the outset, you know the number of arbitrators
that you want, this should be stated in the arbitration
clause. Later on with the agreement of the other
party, this can be varied. If you are unsure how many
arbitrators should be employed, then you should
consider the following options:
(a)
51
Some rules of arbitration can be adopted
which provide some flexibility. For example
article 8 of the rules of arbitration of the
International Chamber of Commerce (“ICC
Rules”) provides that in the event that the
number of arbitrators have not been agreed
Master Builders
1 s t & 2 n d Quarter 2011
Articles
upon then by default a sole arbitrator will be
used save where it appears to the ICC Court
that the dispute is such as to warrant the use
of 3 arbitrators. Another example is the IEM
arbitration rules which provide that by default
3 arbitrators will be used. However, rule 2
provides that the 3 man panel after considering
the complexity of the case and the quantum of
the claim, may with the consent of the parties
rule that proceedings shall continue with
only one of the members. However, practical
difficulties may arise in reducing the number
of arbitrators as the consent of the parties is
required and a decision will have to be made
as to who should retire from the tribunal.
(b)
(c)
Whether to Adopt Rules of Arbitration?
Any arbitration conducted in Malaysia will be governed
by the Arbitration Act. If no rules of arbitration are
adopted in the arbitration clause then, section 21(2)
of the Arbitration Act provides that “the arbitral
tribunal may, subject to the provisions of this Act,
conduct the arbitration in such manner as it considers
appropriate.” In view of this, subject to the provisions
of the Arbitration Act, the tribunal under such
circumstances will be the master of the proceedings
possessing much discretion to set the procedure for
the arbitration. One advantage of this is that the
arbitrator may then design or tailor the arbitration
according to the dispute or the requirements of the
parties. But then, the effectiveness of this may well be
dependant on the level of cooperation between the
parties and their respective representatives.
The arbitration clause may be drafted to
provide for the use of a sole arbitrator but
with the right of any party to apply to that
arbitrator so that 2 more are appointed. In
that way, the sole arbitrator will have the
discretion after hearing the parties to decide if
the tribunal should be enlarged.
Some parties do not think it is a good idea to let the
arbitrator have a largely unfettered discretion and
would prefer to have the arbitration run in accordance
with a fixed set of rules that would bind the arbitrator
as well as the parties so that one would know what to
expect. Many standard form construction contracts
commonly used in Malaysia have an arbitration
clause which incorporates rules of procedure. In this
connection, the PAM standard form arbitration clause
adopts the PAM Arbitration rules, the IEM standard
form adopts the IEM Arbitration rules and so on. On
the other hand, the JKR and CIDB standard forms
contracts do not adopt any rules of procedure and
leaves the arbitration to be governed by the Arbitration
Act.
If the arbitration clause does not state the
number of arbitrators to be used and no rules
of arbitration are stipulated, then by default
section 12 of the Arbitration Act provides
that 3 arbitrators will be used in respect of
international arbitrations and 1 arbitrator will
be used for domestic arbitrations.
Do you want to use any Rules
of Arbitration? Do you want an
institution to Supervise your
Arbitration?
It would be wise to consider whether you would
want the arbitration to be governed by any rules
of arbitration: and if you do, whether you want to
adopt those rules that would enable an institution to
supervise the arbitration.
Master Builders
1 st & 2 nd Quarter 2011
Another possible advantage of adopting arbitration
rules is that many of them have a scale of fees for
arbitrators that is either indicative or compulsory in
its application. However, it is the case that sometimes,
arbitrators may not accept the appointment if they are
expected to charge based on the fixed scale provided by
some of these rules. In this connection, very often, the
scale of fees is based on a percentage of the quantum
of the claim and sometimes this may not be a true
reflection of the complexity of the matter or the time
an arbitrator will be required to spend on the matter
especially in relation to complex construction disputes
with multiple heads of claim and counterclaim.
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Articles
(e)
What Rules to Adopt? Do you want the Arbitration
to be Supervised?
Where the parties have decided to adopt a set of
arbitration rules, then the next question is which rules
to adopt. There is a lot of choice in the market. There
are rules published by PAM, IEM, KLRCA (normal
and fast track), ICC, the Singapore International
Arbitration Centre, the Hong Kong International
Arbitration Centre and so on. There are differences
in these rules and parties should examine them to
see which set of rules would best suit their needs
before adopting them. Due to the many sets of rules
involved and their many differences, it will be beyond
the scope of this article to discuss their suitability in
different circumstances.
Although it may be a good idea to have an institution
supervise the arbitration and making sure that it runs
smoothly, the parties will have to choose the set of rules
with the appropriate level of supervision required. Take
note though that there is usually an administrative fee
charged by the supervising institution for such service
to be rendered.
Where do you want to have the
Arbitration to be held?
In a domestic arbitration where both contracting
parties are Malaysian and the project is in Malaysia,
it will usually be the case that the place of arbitration
will be in Malaysia.
What is important to note is that some of these
rules once adopted will bring into play a situation
where the arbitration will be supervised by a third
party usually an institution. For example, the ICC
rules of arbitration provides that the arbitration will
be supervised by the ICC Court which is a body
(technically not a court) set up by the ICC to make
certain decisions in respect of and to supervise the
arbitration. Similarly, the KLRCA rules provide that
the arbitration will be administered by the KLRCA.
The level of supervision will depend very much on
the rules to be adopted. As an example of rules which
provide a high level of supervision, the ICC rules
provide, inter-alia, as follows:
(a)
Article 9 provides that all arbitral appointments
of the parties must be approved by the ICC;
(b)
If there is any challenge to the appointment of
an arbitrator the challenge shall be decided by
the ICC Court under Article 11;
(c)
Unless agreed by the parties the place of
arbitration shall be fixed by the ICC Court
under Article 14(1);
(d)
Article 24 sets a time limit for the tribunal
to deliver its award. This time limit may be
extended by the ICC Court pursuant to a
reasoned request from the tribunal or on its
own initiative;
Article 27 provides that before signing an
award, the tribunal has to submit the same to
the ICC Court for scrutiny.
In an international arbitration where the project is
located overseas or one of the parties is foreign, the
place of arbitration may become an issue. In this
connection, parties are principally concerned about
the legal seat (ie place) of the arbitration and not so
much the geographical location where the hearing is
held.
The parties should agree upon and fix the place of
arbitration to be in a jurisdiction where its domestic
laws (ie largely their version of our Arbitration Act)
are arbitration friendly and where their court system
is efficient and can be relied upon (since their court
will have the jurisdiction to control the arbitration
and set aside any award that may be granted).
Another factor to be considered is whether an award
emanating from that place is enforceable in other
countries. In this connection, it is usually a good
idea to have the arbitration in a country which is
a signatory to the New York Convention of 1958
(“NY Convention”). More than 140 countries have
adopted this international convention which requires
them to recognize and enforce arbitration awards from
member countries. This means that if you choose
to have the arbitration in a NY Convention country
then any award issued will be enforceable in all the
more than 140 member countries of this convention.
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Master Builders
1 s t & 2 n d Quarter 2011
Articles
Illustration of the above points by way of an
Example
Perhaps the best way to explain the above points
would be to run through an example. Say there is
an oil and gas construction project in Sudan. The
head contractor is a German company who wishes to
engage a Malaysian company as its sub-contractor and
the parties are negotiating the terms of the arbitration
clause in the sub-contract. Let’s assume the subcontract sum to be very substantial.
(a)
The German company will probably not
agree to use for example the PAM arbitration
rules. They are not familiar with them and in
addition they are related to Malaysia. For the
same reasons the Malaysian company would
also probably not agree to arbitrate using a set
of German arbitration rules.
(b)
The parties come from very different legal
and procedural backgrounds.
Malaysia
is a common law country which uses the
adversarial system whereas Germany is a civil
law country that relies on the inquisitorial
system of justice.
(c)
What can be suggested is to adopt the
UNCITRAL rules for an unsupervised
arbitration or the ICC rules for a supervised
arbitration. These rules are not specific to any
country and are flexible enough to incorporate
both elements of adversarial and inquisitorial
procedural systems.
Who and how many Arbitrators to Use?
In such a situation, the parties will probably settle on
using 3 arbitrators for the following reasons:
(a)
(b)
(c)
Due to the nature of the project, the sums in
dispute are likely to be large and if so would
justify the use of 3 arbitrators. In any event,
due to the logistics involved it may not be
practical or cost effective for either side to
commence arbitration in respect of small
amounts.
What should be the place of Arbitration?
Due to the different legal and geographical
backgrounds of the parties, it is not likely that
they can agree on a sole arbitrator. There may
be more comfort for the parties where each
can choose one of the arbitrators and this will
also resolve any differences where the parties
do not agree on what sort of qualification and
experience the arbitrator should have.
The parties will not usually agree to hold the arbitration
in the home country of the other party. Sudan being
the place of the Project, although convenient, may
not be suitable as Sudan is not a party to the NY
Convention and therefore any award issued from
there will not be enforceable in Germany, Malaysia or
elsewhere under the NY Convention.
The parties may consider agreeing to have the place
of arbitration in a neutral country (“Host Country”).
In this connection, they must consider the following
carefully:
Alternatively, the arbitration clause can be
drafted in such a way that one arbitrator will
be used if the parties are able to agree on the
identity of the sole arbitrator. Otherwise 3
arbitrators will be appointed.
(a)
What Rules of Arbitration to Adopt?
In this situation, the parties will probably agree that the
arbitration should be governed by well defined rules
so that both parties will know what to expect when
arbitrating. As to the choice of rules it will usually
have to be an internationally used and recognized
one which is not connected to the countries of either
party.
Master Builders
1 st & 2 nd Quarter 2011
54
Whether the laws of the Host Country are
arbitration friendly. The level of interference
allowed by their version of our Arbitration
Act will be very relevant. For example, if
their local laws allow their courts to set aside
an award based on its substantive correctness
and merits, it will mean that their local courts
of first instance may sit in judgment of an
award that is made by a tribunal which may
consist of perhaps more eminent and well
qualified persons which may include retired
Articles
appellate court judges from the parties home
countries.
(b)
Irrespective of the state of the national laws of
the Host Country, most legislation will allow
for some level of interference by a national
court. In this connection, the parties must
trust the national court system of the Host
Country to act efficiently and fairly.
It is for these reasons that the parties should pick a Host
Country who is a signatory to the NY convention with
local legislation that supports arbitration and possess
a court and legal system that is both efficient and
trusted by the parties. For convenience the parties
should adopt a set of rules that allows for flexibility in
the geographical locations of the hearings even though
the place of arbitration is fixed in the Host Country.
This will enable the hearings to take place in Sudan or
elsewhere for convenience whilst having the benefit
of the arbitration proceedings being governed by the
conditions of the Host Country. For example Article
14(2) of the ICC Rules states that the arbitral tribunal
may, after consultation with the parties, conduct
hearings and meetings at any location it considers
appropriate unless otherwise agreed by the parties.
Conclusion
All said and done, there are significant advantages in
arbitrating construction disputes. If your construction
contract has an arbitration clause, there may be no
option but to arbitrate if negotiations or other forms
of alternative dispute resolution fail.
In order to make full use of these advantages, you
must consider and choose what sort of arbitration you
wish to have. Although certain choices are best made
after disputes arise so that the nature, complexity and
quantum involved can be taken into account before
these decisions are made, very often it is difficult for
parties to reach a sensible agreement in the heat of
these disputes.
In view of this, it is usually a good idea to think about
these considerations and reach an agreement to be
recorded in the arbitration clause before any disputes
arise and when parties are still cordial with each
other.
What is not advisable is to sign a contract without
knowing the intent and effect of an arbitration clause
or agreement. In such a situation you may find
yourself arbitrating under very adverse situations.
One day a client received a notice from overseas in a
foreign language which turned out to be a notice of
arbitration. Upon reading the arbitration clause, it
turned out that it provided for the arbitration to take
place in the home country of the other party, using the
language and laws of the home country of the other
party, using the rules of arbitration and procedure
designed for the other party’s home country, where
the arbitrators can only be appointed from a panel of
arbitrators of an arbitral institution based in the other
party’s home country which institution is also tasked
with the supervision of the arbitration. This sort of
situation can and should be avoided if possible.
*Chang Wei Mun ([email protected]) is
one of the construction partners of Raja, Darryl &
Loh, a law firm based in Kuala Lumpur situated at
18th floor, Wisma Sime Darby, Jalan Raja Laut.
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Master Builders
1 s t & 2 n d Quarter 2011
Articles
SITE RECORDS for CONSTRUCTION
CONTRACTS (Mixed Development Construction Projects)
- ON-SITE MANAGEMENT & MONITORING DURING
CONSTRUCTION
By: Mr Gusharan Singh C.M.I.I.A
1.0
Introduction
1.1
Site Records [‘SR’] are one of the most important
records in any building and infrastructure
construction works. It is of particular importance
in the case of mixed property development
projects as they generally involve all components
of a construction project and may be spread over
a large area or several locations within a large site
such as new townships that may be constructed.
However, it is also one important aspect of project
management and implementation that is seldom
given any serious attention by the involved parties
i.e. the project owner, the technical professionals,
the contractor, sub-contractors, suppliers, subcontractors, sub-suppliers, project supervisor and
the relevant local authorities having jurisdiction
over the implementation of the project. As long
as the construction works proceed without any
problems or mishaps, the ‘SR’ may be given
periodical attention regularly but this attention
may only be superficial. Any minor deficiencies that
may be observed may be treated as not warranting
any serious attention by the relevant officials
involved in the management and implementation
of the contract.
1.2
authorities are unable to agree and conclude their
findings promptly and complete their reports for
some of the past major construction disasters.
Similarly legal action by claimants of any
compensation for delayed contracts also are time
consuming that have major financial implications
and wastage of limited resources. Thus it must
be emphasized that accurate and comprehensive
‘SR’ should be maintained and kept up to date
at all times and retained for as long as deemed
appropriate for the respective project. The period
could be a few decades for projects constructed
in hilly sites, unstable soil conditions areas or in
heavy populated urban areas.
The ‘SR’ will become extremely important in
the event of any substantial changes to the scope
of works for whatever reason that may cause
delays and additional costs, any serious accident,
natural disaster or claims by third parties. The
‘SR’ will need to be referred to as an important
source of information by the owners, contractors,
investigators, authorities, relevant technical
professionals and legal professionals in the
event the claims are subject to any legal action.
The objective would be to ascertain causes and
identify those responsible. However, by then, it
might be too late due to lack of comprehensive
and accurate ‘SR’. This is generally one of the
contributory reasons that the investigative
Master Builders
1 st & 2 nd Quarter 2011
1.3
Variations may also need reference to Site
Instructions which are part of ‘SR’ to enable
the ‘Contractors’/‘Clients’ and their respective
professionals to compute/verify the quantum
and justification of the claims. This will benefit
both parties to settle the matter amicable without
having to resort to expensive litigations which
should always be avoided by both parties as it
mainly benefits the legal professionals representing
the two opposing parties.
2.0
Objectives of Site Records
2.1
The main objectives of maintaining comprehensive,
accurate and up to date ‘SR’ should include, among
others, the following:
• Record & monitoring of contract
implementation and physical progress
• Control over workforce [legality, need,
attendance, and payroll]
• Materials management: in-coming used
and balance on site [Control on quantity of
materials is as per need - use JIT concept]
• Management of Construction Plant
Machinery/Equipment [Of type suitable for
the works and n-site for period required]
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Articles
2.2
•
Ensure compliance with prescribed controls,
laws, regulations, specifications and standards
for materials
•
Site inspections by regulatory authorities and
others
•
Identifying possibilities of fraudulent claims
situations
•
Work program and progress charts
•
S.O. Instructions
•
Supporting information to examine the
justification of any financial claims
•
Contractor’s enquiries/requests
•
•
Evidence in the event of any problems and
dispute
Reports of accidents, thefts, damages,
penalties
•
Recording prescribed test records to ensure
the integrity of the structures
•
Ensure security measures for the site,
materials, machinery and works
•
Safety measures and safe site conditions for
workers
•
Maintaining validity, sufficiency and
effectiveness of insurance policies
•
Historical records for staff training purposes
assigned to future projects
•
Monitor visits by technical professionals,
regulatory authorities & others
•
Projects adjoining the construction site [Note: Explanatory Notes regarding the scope, usage
and importance of these aspects are detailed in the
attached Appendix ‘A’]
The above list of objectives should be reviewed
periodically to ensure it is comprehensive and
relevant to the type of works and the company’s
activities.
3.2
The above list should be reviewed periodically to
ensure it is comprehensive and includes all records
that may have any impact or cost implication
on the contract or company. The ‘SR’ should
be maintained in chronological order, properly
indexed where appropriate, and kept safely for
duration as decided by the implementing parties.
4.0
Responsibility for Maintaining
of Site Records
4.1
It is normally the responsibility of the main
contractor to keep the ‘SR’. However, it is also the
responsibility of the client to ensure that the ‘SR’
is comprehensive, accurate and up to date. The
technical professionals, internal auditors and other
agents of the respective implementing parties and
regulatory authorities should also examine the ‘SR’
periodically to ensure their correctness.
4.2
The ‘SR’ may be retained by either the client or
contractors on completion of the contracted works
and settlement of all dues. In the event that one
party wants to retain the site records, the other
party should be provided with a list of the records
and a confirmation that the ‘SR’ will be kept safely
for a mutually agreed period and made available in
case of need.
5.0
Usage of Site Records
[By Clients’ Technical Professionals]
5.1
The S.O. and the client’s technical professionals
can use the ‘SR’ for
3.0Scope of Site Records
3.1
The scope of ‘SR’ would be dependent on the type
& scope of works and location of a construction
project and expanded as appropriate. However, the
more important records that should be maintained
should comprise the following listed aspects.
• Site conditions
•
Site dairies - Measurement books
•
Facilities at site
•
Security and Safety measures
•
Weather conditions
•
Site workers and supervisors
•
On-site trainees
•
List of plant, machinery & equipment on
site
•
Acceptable materials received, used and
balance
•
Materials tested, approved and rejected
•
Site visits by S.O., technical professionals
•
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Monitoring the physical progress of the
project [Recommend remedial measures in
the event of delays and bottlenecks]
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•
Substantiate that prescribed specifications are
complied with
• Ensure that relevant laws are complied with
[For preparing their periodical records]
Explanatory Notes regarding the Scope, Usage and
Importance of these Aspects
[Contractor’s Site Professionals]
They should ensure that the scope and extent of
the ‘SR’ are also commensurate with their own
requirements vis-à-vis the works.
[By Internal Auditors and Financial Profession
Professionals]
6.0
The Internal Auditor can use the site records
to, among others, confirm that the S.O. and
the technical professionals have visited the site
and verify the accuracy of their claims for such
inspection visits. Further, he can confirm that the
interim payments for work done and materials on
site can be substantiated with evidence. Variation
orders for any changes to the scope of contract and
re-measured work can also be verified.
7.0
Conclusion
7.1
The importance of ‘SR’ should never be ignored.
The need and value will only be realized in the
event of an accident on site or the constructed
project develops a major flaw or defect as has
happened in the several projects in the past.
Absence of comprehensive and accurate ‘SR’
has been contributory factors in hindering the
regulatory and investigative authorities to ascertain
the causes of the accidents or failures and thus
completing their reports for submission to the
relevant authorities. Consequently, the effected
innocent parties who own the whole or sections of
the defective works have not been able to claim any
compensation for the loss of their properties.
7.2
APPENDIX ‘A’
[Site Records]
[a] Site Conditions
Notes are made about the general conditions of the
construction site that includes lighting, drainage, fencing,
the orderliness of the stacking of building materials &
their accessibility when required for usage, separation of
non-inflammable and inflammable materials, provision
of special storage conditions for sensitive components,
condition of scaffolding, etc.
[b] Site Dairies
The site dairies are maintained by individual supervising
officers at the construction site to record actual rate of
progress of individual scope of works. They are used to
monitor the performance of the individual sectional scope
of works and indirectly the productivity of the individual
workers. This is of particular importance in the case of
infrastructure contracts such as highways where the work
sites are far apart and at several locations.
[c] Measurement Books
These are used to record the actual daily progress of
implemented physical work in the sectionalized area or
work. The information is then summarized into weekly
progress and later the monthly progress reports. There
are two main benefits that can be obtained from the
information recorded. These are:
i) The information is used to compute the quantum of
progress/interim payments.
ii) The monthly summarized progress rate is then used
to compare with the planned progress as shown on
the ‘Work Programme’. Any observed delays can be
highlighted and the causes ascertained for taking of
appropriate action to rectify the situation.
The ‘SR’ can help to protect or minimize liability
of the building owner, developer, contractors and
the relevant authorities against blame and possible
financial claims by assisting in the identification of
the parties responsible for the accidents, defects and
deficiencies in the works. Thus the maintenance of
comprehensive, accurate and complete ‘SR’ and
their safe custody during the post construction
period is the common responsibility of all the
involved parties. Owners who buy completed,
whole or sections [such as condominiums and
those holding strata titles] of any building should
ensure the availability, if possible, of those ‘SR’ to
safeguard their very high financial investments.
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[Note: Particular attention should be given to works that
involve multiple activities such as ‘Piling’ that would involve
‘Supply’, ‘Drive’, ‘Cut’ and ‘Joints’ as combining them in as a
single work for which the a single rate may be provided in the
Bills of Quantities that could result in excessive payments.]
[d] Facilities at Site
The following information is generally recorded:
i) Accommodation for workers and the adequacy of the
basic necessities.
ii) Provided utilities [light & water], fire extinguishers,
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first aid boxes, communications items [phone, fax,
photostatting], computer & printers, audio/visual
items, notice boards, programmed and actual progress
charts, etc. [i] Construction materials received, used and balance
The records will ensure that materials are procured on the
JIT concept resulting in materials and quantities being
procured when required. This will result in better materials
management without holding costs for excessive quantities
that could also be subject to pilferage.
[e] Security and Safety measures
The information to be recorded would include, among
others, the Security and safety of equipment/installations,
procedures for incoming/outgoing persons, materials,
machineries, and contact numbers of relevant authorities
[hospital, fire brigade, police, utilities companies and officers
within the organizations of the Contractors & Client].
[j] Materials tested, approved and rejected
[i] It is important that the construction materials are as per
prescribed standards and specifications. Random testing
of the materials to be used in the construction will ensure
compliance, compatibility to the needs and structural
integrity of the works. All test records will be maintained
for reference. Appropriate remedial action can be taken
promptly to ascertain the causes in the event of failures that
exceed the industry norms to ensure the structural quality
of the works. This is particularly important in the case of
items involving the use of concrete such as piles, hardstands,
etc. and also in cases where there are joints using steel and
other metals.
[k]Visits by technical professionals, inspections by regulatory authorities/others
[f ] Weather conditions
Daily weather conditions are recorded such as rainfall
and temperature and its duration and intensity. This is
important as certain types of works cannot be done during
and after rains whereas others cannot be done during hot
temperatures. As an example earthworks and concreting
works cannot be implemented during rain and after some
time when the site is dry for work to be implemented. Also
machineries may not be able to work if the site is flooded.
In the case of welding works of rail tracks it is essential that
the work be done before the temperature goes beyond a
certain degree.
Construction sites are regularly visited by the supervising
professionals and at irregular intervals by the regulatory
authorities and other professionals including the internal
auditors. The particulars, dates and times of such visits
should be recorded. In addition, notes should be made by
the visitors in the event of any directions, comments or
suggestions for review and response, if any, by the relevant
parties representing the Client & contractors. Verbal
directions should be noted and subsequently recorded in
formal correspondence for management decisions. This is
particularly important if there is financial or completion
period implication to any of the contracting parties.
[g] Site workers and supervisors
Particulars of the workforce on site is recorded to ensure that
the workers are legal and possess the prescribed certificates
[KWSP, SOCSO, CIDB, Work Permits for foreigners, etc],
have the relevant expertise for which they are employed,
the duration of the need and in numbers that are optimum
for the works to be implemented. The same would be
applied to the supervisors. The records for construction
workers would be maintained on a daily basis whereas for
permanent status supervisory staff all the information may
not be necessary for daily recording. This information will
ensure that the labor costs are at optimum levels and that
prescribed laws are complied with.
. [h] List of plant, machinery & equipment on site
[l] Work program and progress charts
The ‘Works Program’ provides a bird’s eye view of the status
of the progress of works. This is reflected in the progress
charts that show the planned and actual progress. These
should be maintained current and up to date if they are to
be effective and serve the intended purpose.
Particulars about the vehicles, plant, machinery, equipment
such as registration numbers, type and capacity and their
function would be recorded. This will ensure that they are
in working order, the number & types are compatible with
the scope of works and are at the site for the optimum
duration. The information will assist in their procurement
and usage on a cost-efficient basis.
[m] S.O. Instructions
The S.O. is the representative of the Client and is the
person who is responsible for the progress of the works. The
contractor is represented by his Site Agent who responsible
for the implementation of the contracted works. It is
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Note: Above are some of the aspects that should be
recorded in the Site Records. However, the extent will
depend on the type of project and its location. It is possible
that not all will be necessary whereas there may be need
to make addition of other aspects that may need to be
recorded. The decision on the final list of aspects would be
with the Superintending Officer who is responsible for the
management and implementation of the works in a safe
and satisfactory manner.
normal that there would be instances where there would be
need for changes in specifications, scope of works, delays,
etc. that would result in changes/modifications to what has
been agreed and possible delays. The S.O. would then give
instructions that could have financial implications. These
instructions could increase or decrease the contract value.
The supervising professionals are expected to be ethical
and honest. However, as an added internal control It is
important that the Internal Auditor of the client pay special
attention where the instruction could result in reduced
costs whereas the contractor’s Internal Auditor would
pay special attention to instructions that would result in
increased claims.
As the Contractors / Sub-Contractors / Suppliers /
Sub-Suppliers are equally at risk they are at liberty to
increase the scope of ‘SR’ to protect their individual
interests. This is of particular importance in the case of
Mixed Property Development Projects.
[n] Contractor’s enquiries/requests
The Client should give prompt response to any enquiries/
requests as delays can be used by the contractor for penalty
free extension of time and justify additional claims for
delays. Chronological data should be recorded.
[o] Reports of accidents, thefts and damages
Laws make it mandatory that all accidents are reported
to the relevant authorities. Similarly internal procedures
require reporting of all cases of thefts and damages to the
works. These are essential to take appropriate measures to
prevent any such future cases.
[p] Projects adjoining the construction site
Records should be made of any information pertaining to
cases where there is a possibility that construction works
can have adverse effect on existing properties that are in
the vicinity of the construction works. This would result
in taking remedial action that would result in minimizing
the adverse effects and possibility of any financial claims at
some times in the future. Similarly, notes should be made
of any third party construction project near the vicinity of
the works that can have adverse impact on the works so that
the other party can be informed of the consequences in the
event of any adverse impact and possible financial claims.
[q] On-site trainees
Governments generally provide financial incentives where
clients employ people with a view to provided on-site
training to new works. Records would enable the Client to
take advantage of such incentives.
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Articles
CONTRACT ADMINISTRATION
FOR SITE PERSONNEL - Role of Site Personnel
By: Mr Gusharan Singh C.M.I.I.A
1.0
Introduction
1.1
All construction contracts normally have Site
Personnel [‘SP’] to supervise the implementation
of the works being contracted. There are two sets
of ‘SP’ at each construction site. The first set is
appointed by the Client whose leader is referred
to as the Superintending Officer [‘SO’]. The
second set is appointed by the Main Contractors
[‘Contractor’] whose leader is referred to as the Site
Agent [‘SA’]. The term ‘Contractor’ will include
appointed Sub-Contractors and Suppliers.
2.0
Position of Site Personnel
2.1
It is the responsibility of the ‘SP’ to protect the
interest of their employers .Thus the ‘SP’ appointed
by the Client is referred to as ‘SO’ and those
appointed by the ‘Contractor’ is referred to as ‘SA’.
They both represent their respective employers
and are vested with powers as prescribed by them.
Both have wide powers on site except for aspects/
matter where it may involve serious financial/legal
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1 st & 2 nd Quarter 2011
implications to their respective employers and
need to be refer them before any action can be
implemented.
3.0
Responsibilities of Site
Personnel
3.1
Both the ‘SP’s have the same objective on site
and that is to ensure that the contract is being
implemented as per agreed terms & conditions,
Drawings and Specifications as contained in
the signed contract document. In addition the
responsibilities relevant to site conditions and site
records that need to be maintained to document
the progress of implementation of works and
others aspects relevant to the site conditions such
as safety and security. The more important of
these aspects that should be recorded in the Site
Records is as below:
- Site conditions
- Site dairies - Measurement books
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constructed. Also the contract being implemented
can adversely affect the safety of existing building/
infrastructure works belonging to others. ‘SP’
should not just do what is specifically prescribed
in their list of duties but should add value to their
services by being observant and report to their
respective employers if they observe something
that can pose a threat during construction or at
some future date. Some examples are detailed
here.
- Facilities at site
- Security and Safety measures
- Weather conditions
- Site workers and supervisors
- On-site trainees
- List of plant, machinery & equipment on site
- Acceptable materials received, used and balance
with rejects being recorded separately
- Materials tested, approved and rejected
- Site visits by ‘SO’ & technical professionals
[A]Highland Towers Collapse
- Site inspections by regulatory authorities and
others
4.2.
- Work program and progress charts
- ‘SO’ Instructions
- Contractor’ enquiries/requests & response
- Projects adjoining the construction site
- Reports of accidents or near accidents, thefts,
damages, penalties
[Detailed articles in respect of each of the above
listed aspects included in the article on ‘Site Records’
have been written and can be downloaded free
from the Internet website >auditnet.org< ‘Monthly
Newsletter’ Section in June 2006 issue. The article
provides the objective, scope and other aspects that
are explained in great detail to enable readers to
easily understand the financial/legal implications
in the event of neglect on non-compliance of the
aspects. Further it also provides guidance on its
usage by other professionals that include Board of
Directors, Audit Committee Members, Technical/
Financial/Audit/Legal/Others and benefit that
can be obtained to assist in the cost-effective and
cost-efficient management and monitoring of
the implementation processes. It also provides
information as to how the Site Records can be
used as internal controls to prevent, minimize and
mitigate mismanagement, fraudulent and corrupt
opportunities and possibilities.]
4.0
Additional
the ‘SP’
4.1
‘SP’ are in a unique position to observe the
surroundings as they can have adverse effects on
the Clients and Contractors directly or indirectly.
The surrounding site conditions and existing and
future works therein can adversely effect during the
current and future the safety of the works being
Responsibilities
The collapse in December 1993 of one tower of the
Highland Tower [‘HT’] investigation committee
attributed the collapse to insufficient piling for
building of that height. It is possible that the
underground water from the site a project under
construction on ground higher than the level at
which the ‘HT’ was located could have contributed
to the collapse. The ‘SP’ could have observed that
the underground water flow could have been
contributory factor to the collapse. The liability
apportionment of the owner and manager of the
project was stated to be 30% and 20% respectively
for which it is understood that RM52.0 million
subsequently paid as compensation to the victims
of the ‘HT’. Another loss was the declaration of
the two other towers as unsafe and were evacuated
and remain so to this day to be vandalized and
of
claimed by vegetation. The ‘SP’ of the project
could have observed and informed of the danger
to his superiors who could have taken mitigating
factors to prevent the collapse and saved the owner
from losses.
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4.3
The ‘SP’ of the ‘HT’ was also held liable with
10% apportionment for being negligent in
his site supervision duties. The ‘HT’ collapse
case was a bench mark legal decision where the
*Court apportioned the percentage of liability for
construction failures.
contractors. In addition to the direct losses to
the parties involved there are other indirect losses
which will have to be borne as several houses
owners were directed to vacate their houses as they
were deemed to be unsafe and their occupants
were housed in hotels and their costs to be borne
by whoever is to be held liable. It is also yet to be
confirmed whether the insurance policy will fully
compensate for all the direct and indirect losses
or they may decline liability in full or part for any
infringements in the demolition processes.
i.project owner – 15%
iiconsulting engineer – 10%
iii on-site supervisor – 10%
iv adjoining project owner – 30%
v. adjoining project owner/ manager – 20%
vi. approving authority [@] - 15%
[B]
[C] Sultan Mizan Zainal Abidin Stadium – Project
Valued RM300.0 million [‘Stadium’]
[[@] immune from legal action]]
[*As was reported in the Star dated 12.8.2000]
Jaya Supermarket Collapse during Demolition
4.4
The Jaya Supermarket building collapsed
while being demolished on 28 May 2009. The
media reported the Deputy Housing and Local
Government as saying that initial investigation
indicated that overloading caused by heavy
machines used in demolishing may have triggered
the collapse as eight heavy demolition tractors were
in the building when the incident occurred. [The
Star dated 29th May 2009 Bernama report refers.
In addition a report and photographs published
in the Malay Mail dated 25th June 2009 refer as it
showed the number of excavators working on the
upper floors prior to its collapse.]
4.5
The action taken by the relevant Local Authority
was reported as issuing of a ‘Stop Work’ Order,
blacklisting the involved parties that included
the owner, consultants, project managers and
4.6
The ‘Stadium’ is a new multi-million facility in
Kuala Terengganu that holds 50,000 people and
was open in 2008 and built to host the 2008 Sukma
Games. The roof of the ‘Stadium’ collapsed on
2.6.09. It was reported that the Partial Temporary
Certificate of Fitness [‘CoF’] issued was for sections
that did not include the roof which collapsed
and was still under warranty. The ‘CoF’ that was
issued by the State PWD based on the report of an
independent examiner and evaluation by a local
consultant commissioned to evaluate the safety of
the roof even though it is held that Government
buildings are exempted from ‘CoF’. The architect
has also commented that he had highlighted
several times the problems regarding the roof
structure. It was also reported that the ‘Stadium’
roof construction defects were discovered one year
prior to its collapse but not given due attention by
the professionals of the Client.
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[D]
Bus and Taxi Terminal in K. Brang [‘Terminal’]
4.7
The roof of the above RM4.0 million ‘Terminal’
collapsed on 21.12.09 This time, Trengganu MB
was reportedly reported to mention the following
possible causes:
[a] Shoddy work by Contractors
[b] Failure to monitor the progress
failed to prove a prima facie case against him and
that the victim’s death was caused by an accident.
An Associate had stated that wind factor could
have caused the formwork platform to overturn
resulting in the 4m by 5m mould used to make
concrete slabs felling from the 20th floor and
causing the death of the victim. [The Star – Nation
dated 25 July 2009 refers]
He further promised that immediate investigation
will be commenced to determine who is
responsible for the mishap and the Contractor
will be blacklisted if he is at fault. Also disciplinary
action will be taken against those found to have
failed to execute their responsibilities diligently.
[E]
Universiti Malaysia Trengganu’s Oceanographic
and Tropical Aquaculture Building Collapse [‘UMT’]
4.8
The recent collapse of the ‘UMT’
on 29.3.10 resulted in the death of
one worker and serious injury to five
workers including two seriously, has
been attributed by the University’s VC
[Student Affairs] to be due to result of
weak scaffolding and that nothing is
wrong with the structure of the building
which housed the UMT’s Oceanography
institute. Many questions are being raised
on the role and responsibility of the
various parties involved in construction
projects. These include:
5.0
Conclusion
5.1
Here again it is possible that all will be looking
for evidence whether the ‘SP’ could and/or should
have observed the defects and other weaknesses
and reported them to his superiors. This is another
example where the ‘SP’ should document their
provided views and comments in respect of any
cases of weaknesses, shortcomings and defects to
ensure that they had done their prescribed duties.
[a] Responsibilities of the Consulting
Engineers – Design and Supervision
[b] Responsibilities of the Scaffolding
supplier, its design, quality and
installation methodology
[c] Responsibilities of the Safety Officer
- Training and Inspection
[d] Contractor – Implementation
Methodology
[F]
Plaza Damas Accident – Death of Corporate Consultant by Falling Mould
4.9
A construction Site Supervisor was
charged on 5 April 2006 with negligently
causing the death of corporate consultant
at the Plaza Damas construction site on
30 Dec 2005. However he was acquitted
as it was ruled that the prosecution had
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It is equally important that the ‘SP’ also is aware
of the many other aspects of contract including
design, implementation, work sites conditions and
safety and also the developments or changes that
may be happening in adjoining/surrounding areas
that can adversely effect the safety of his works or
cause delays or additional costs.
5.2
5.3
The Contractor should always ensure that their
‘SP’ posses relevant knowledge, skill and expertise
to enable him to discharge his duties in a manner
that are not only safe but also cost-effective and
cost-efficient. The Contractor should provide
ample opportunities to their ‘SP’ to continuously
upgrade their knowledge and expertise through
continuous training. It is equally important that
the ‘SP’ also endeavors to upgrade their skills as it
will enable to further enhance their career prospects
with rich rewards. Government provides financial
and tax incentives to both the Contractors and
‘SP’ for such upgrading of skills and it is for the
Contractors and ‘SP’ to profit from it.
In almost in all cases the reported actions include
proposed probes by the MACC, Public Accounts
Committee, NIOSH, and the State Governments
[who had in addition ordered inspections of
other Projects in the State some of which showed
defects as in the roof of Sultan Mahmud Airport
for which independent consultants were to be
appointed]. However all will have to wait until the
investigations by the several authorities are finalized
and report issued and its availability to public
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1 st & 2 nd Quarter 2011
if approved and if it is not subjected to Official
Secrets Act. Nevertheless it is going to be a long
wait if the disclosure period of past reports is to be
used as a bench mark. However the government
has released a 60-page confidential report on the
possible causes leading to the collapse of the roof
of the ‘Stadium’. The causes are:
[a]
[b]
[c]
[d]
Serious engineering flaws
Shoddy workmanship
Inferior materials
Lack of expertise in key project management
team and
[e] No checks done during erection period.
5.4
It is a possibility that the ‘SP’ may be deemed to
be partly responsible as he could have been the
person on site to have been able to notice the
excessive load of the heavy machineries working
on upper floors [Jaya Supermarket Demolition]
and not informing his superiors. It is also possible
that he may claim of having reported his views to
his superiors but might not be able to substantiate
his claims with any documentary evidence. Thus
the position of an ‘SP’ can be very vulnerable to
negligence accusations by those in positions of
seniority.
5.5
Investigations into construction flaws and
accidents almost always lead to the discovery that
specifications and safety procedures have been
compromised in the interest of profit and speed.
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Safety standards on building and construction
materials are imposed and perceived to be
implemented fairly well by regulators and
government agencies at the Federal level the
position may not be that well regulated at Local
Authorities and State level. Here the blame could
rest with the professionals.
5.6
6.0
6.1
once again highlight the consequences of not
implementing good occupational safety and health
practices at the workplace. Similarly leaders have
also continuously warned to take serious action
with maximum penalties on those proven to be
responsible for the accidents and deaths but the
result of the investigations are rarely publicized
and those responsible even more rarely disclosed
or the penalties imposed. It has been perceived
that in most cases the ‘SP’ on site may be held
responsible. Thus it is important that the ‘SP’
ensure that they document their responsibilities
and activities to protect themselves against any
charges that may be brought against them.
It is important for the Contractors to ensure that
their ‘SP’ possesses the relevant expertise not only
in the best construction methods but also to be
well versed and experienced in the safety aspects
during the implementation. The contents of Site
Records as listed in paragraph 3.1 above can serve
as a guide for the ‘SP’ regarding the aspects in
which he should be conversant and to ensure their
compliance. The ‘SP’ should not limit his duties
just to construction implementation methods
but add value to his duties for effective and safe
implementation of construction works. The ‘SP’
should not limit the scope of his duties even with
the presence of the Client’s ‘SO’. The ‘SP’ should
protect himself from any allegations of neglect of
duties as the ‘SP’ is generally at a disadvantage
as the Client’s ‘SO’ and the others involved are
deemed to be high level professionals with relevant
technical professionals who may be easily protect
themselves and holding the ‘SP’ responsible. Recommendations
6.2
The construction industry in Malaysia is perceived
as one of the most important contributors to the
country’s economic growth and also among the
most dangerous to work in with high fatality rate.
There have been reports of fatalities, injuries and
serious flaws in the quality of construction and
materials used in construction works every year.
In all these cases the ‘SP’ as the person responsible
on site can be blamed as he is expected to be well
trained in safety measures and experienced enough
to have observed the risks and dangers and thus
prevent them. Unfortunately in most cases the
‘SP’ may not be provided with opportunities to
acquire the relevant training and/or his advice may
be ignored by the professionals in authority.
NIOSH has continuously stressed the importance
of carrying out risk assessments before construction
work is done and that the collapse highlights
SITE PROFESSIONALS CAN PLAY A POSITIVE ROLE IN THE
SUCCESSFULL IMPLEMENTATION OF CONSTRUCTION PROJECTS
But
Site Professionals must equip themselves with relevant Expertise
By
Acquiring Knowledge and Expand their Scope of Duties
With
Contractors providing the necessary Opportunities & Incentives
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Construction Contract
& Management Issues
In this combined first and second quarter issue for 2011,
BK Burns & Ong Sdn Bhd, a subsidiary of BK Asia
Pacific, a regional group providing project, commercial
and contractual management services joins with Entrusty
Group, a multi-disciplinary group, collectively named
as BK Entrusty, presents a new series of contract and
management articles in construction related areas of
project, commercial, contracts, risks, quality and value, on
“What are Expedition, Mitigation and Acceleration ?”
The terms Expedition, Mitigation and Acceleration, have
been difficult to define, until recently. The difficulty arises
due to the perceived subtle difference between these terms,
not to mention, the subset which each of these terms may
exist within one another. The difficulty is elaborated by
Wallace (1995) who thought Expedition is a subset of
mitigation due to expedition often exists in the common
contract with “due diligence”. The conundrum does not stop
there. The complication is extended as different countries
perceiving each term differently. In some Arabic nations,
these terms were not known, understood and accepted
until recently. The differences further increased as each
term has its own variance. For example, in Acceleration, the
term can be sub-divided into Constructive Acceleration,
Directive Acceleration and Voluntary Acceleration. Even
more puzzling, not all of these variances are taken too
well. Wallace (1995), has termed constructive acceleration
as a “…fictitious doctrine … not founded on consensual or
quasi-contractual basis.”
Introduction
In practice, the decision of whether to Expedite, Mitigate
or Accelerate a project in delay often comes at a difficult
juncture of that project. The decision is often clouded
with varying circumstances enfolding the project, usually
with time and cost implications. The financial effect
of such decision particularly in a heavily geared large
construction project affects the business efficacy and
relations, as well as posts major risks to the project and the
contracting parties. The decision not to do anything, will
most certainly lead to the “waiver” of the entitlement to
damages as in Mitigation, be it drastic or subtle, effective
or not, is required not only at common law, but sometimes
expressed as “a pre-condition” in conditions of contract.
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1 st & 2 nd Quarter 2011
In this article, BK Entrusty aims to provide readers with
a better appreciation and understanding of the terms,
Expedition, Mitigation and Acceleration, including the
differences between them and their implications. It is
hope that this will provide the necessary clarification to
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the construction industry in Malaysia, tainted with usage
of terms with much confusion, particularly when the
construction contract concern, do not provide any definition
to these terms or using one or all of them, without much
appreciation and understanding or concern and regards to
the implications that each term have, contractually and/
or legally.
the completion or extended period, will inevitably lead to
liquidated ascertained damages (“LADs”) being imposed
and/or may lead to eventually termination of the contract. If
the Contractor is instructed/directed by the Superintending
Officer (“SO”) or Employer’s Representative (“ER”) to
“expedite” its Works, which is in culpable delay, this does
not constitute acceleration of the Works.
The following are the sub-headings to the contents of this
article;
• Introduction
• What are Expedition, Mitigation and Acceleration?
• Comparison of Expedition, Mitigation and
Acceleration
• Contractual provisions on Expedition, Mitigation and
Acceleration
• Doctrine of Constructive Acceleration in various
countries
• Relevant Case Law
• Conclusion
• References/Bibliography
Mitigation
The Oxford Dictionary of Law defines Mitigation as “the
reduction in the loss or injury resulting from a tort or breach
of contract and the injured party is under a duty to take all
reasonable steps to mitigate his loss when claiming damages”.
This dictionary also states “Mitigation” (also known as
the doctrine of “avoidable consequences”) holds that “…an
injured party cannot ignore an opportunity act as to reduce
the continuing increase in damages from that injury, and
recover the same from defendant”. In construction terms,
mitigation of delay simply means doing things differently
or rescheduling the Works, reallocating resources, with
little or no cost implication to the Contractor, thereby
minimizing the delay due to the changed conditions.
What are Expedition, Mitigation and
Acceleration
A contractor is usually contractually obliged to mitigate
any delays so as to ensure that the Works can be completed
as soon as possible and accordingly. Mitigation is also
Expedition
In understanding the meaning of Expedition or
Expediting, it is best to refer to Wallace (1995):
“.., often with express “time of the essence” reference still to
be found in some old-fashioned contracts at the present day,
with liquidated damages provided as the remedy for breach
of the particular obligation. As a matter of analysis, it could
well be argued that an implied term for due diligence and
expedition (which if so subsume the remedies available for
failure to achieve a promised or reasonable completion date)
is in reality and as a matter of business efficacy, and indeed as
a matter of law, the primary basis of the contractor’s implied
obligations as to time in all construction settings.”
Further, from the same quotes:
“If the contract date for completion has passed, an implied
obligation to complete within a reasonable time will be
substituted. In addition, an obligation to carry out the work
with reasonable diligence and due expedition, throughout
the period of construction, will also need to be implied,
consistent with the contract period (if any).”
recognized in common law. The contractor who fails
or refused to mitigate delays may risk jeopardizing any
extension of time due.
Acceleration
“Expedition” or Expediting” or “To Expedite” is usually
due to a delay caused by the Contractor, which necessitates
measures to be taken to overcome the delay, at its own
expense. Contractor should expedite its Works, so as
to be able to complete within the completion time or
extended time of the project. Failure to complete within
Acceleration can be defined as “..the act of completing a project
earlier than required under the contract” (RICS, 2007). In
most construction contracts, the provision for acceleration
is simply a mechanism for an earlier completion, usually
involving additional costs.
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Often the Contractor is requested to provide an acceleration
quotation for the additional costs to do so. However, the
Employer or its authorized representative cannot force the
Contractor to accelerate, if it is not practical nor possible
to do so.
Protocol defines constructive acceleration as “Acceleration
following failure by the Employer to recognize that the
Contractor has encountered Employer Delay for which it is
entitled to an EOT and which failure required the Contractor
to accelerate its progress in order to complete the works by the
prevailing contract completion date. This situation may be
brought about by the Employer’s denial of a valid request for
an EOT or by the Employer’s late granting of an EOT”.
Acceleration can be divided by three categories, namely:
(i)
(ii)
(iii)
Directive Acceleration – Employer or his
authorized representative instruct the Contractor
to complete the work earlier than the completion
date stipulated in the contract, usually with
additional cost compensation.
Constructive Acceleration – The Contractor have
to accelerate the work in order to avoid liquidated
damages due to refusal of the Employer or his
authorized representative to grant extension of
time or instruct to accelerate, usually with the
ulterior motive to deny the Contractor of its
rightful entitlement of extension of time and
additional costs.
Voluntary Acceleration – Contractor at his own
liberty accelerate the work without any instruction
from the Employer or his authorized representative
nor any pressure from surrounding circumstance,
usually incurring additional costs, at its own
expense.
In determining whether a Constructive Acceleration had
occurred on the project, the use of a six points test (Zack,
2011), is recommended;
1.
2.
3.
4.
5.
6.
Typically, the additional costs involved in acceleration
include work activities re-sequencing, increasing resources,
overtime working, shortening deliveries. etc.
In most cases, the contracting parties have no dispute
on Directive Acceleration arrangement. However most
disputes come from Constructive Acceleration due to
lack or no instruction by the Employer or his authorized
representative to accelerate the work, and the timing to
undertake the acceleration work by the Contractor. The
Society of Construction Law’s Delay and Disruption
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1 st & 2 nd Quarter 2011
Excusable delay was encountered;
Notice and extension of time application was
submitted;
No or less time extension was granted;
Contractor was threatened or coerced into accelerating
to recover the time not extended;
Contractor notify such action is tantamount to an
instruction to accelerate;
Contractor accelerated and substantiated with
documentation.
Unlike in USA, where acceleration is recognized, elsewhere,
including in Malaysia, constructive acceleration is not
really recognized. Consequently, a claim for constructive
acceleration is likely to be resolved in arbitration/litigation,
by depending on the legal concepts of acts of prevention/
hindrance, time at large and breach of contract are trite
law, in its substitution, when so required.
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The following is a tabulated comparison of Expedition, Mitigation and Acceleration, for ease of understanding and
reference.
Comparison Of Expedition, Mitigation And Acceleration
EXPEDITION/EXPEDITING
MITIGATION/MITIGATING
ACCELERATION/
ACCELERATING (DIRECTIVE)
Falls within Contractor’s obligations in
the contract.
Falls within Contractor’s obligations
in the contract.
Requires Employer’s or ER’s
Instruction.
To meet the Contract Completion
Date or extended date.
To minimize the effect of delay.
To complete earlier than stipulated
in the contract.
Contractor bears the expediting costs.
Contractor bears the mitigating costs
(minimum or insignificant).
Contractor to be reimbursed
acceleration costs by the Employer.
Any costs.
Reasonable, usually minimum or
insignificant costs.
Usually incur significant additional
costs.
Refusal may amount or lead to breach
of contract.
Pre-condition to entitlement of
extension of time.
Contractor may ignore/reject the
request for acceleration in the
absence of acceleration provision in
the contract.
In the case of Mitigation, the reasonableness of the said imposed responsibility lies with the extent or the scale of the
mitigating measure/s taken. Should the acceleration process only involved resequencing or the like, the Mitigation usually
does not involve any significant additional costs, and where it does, only a minimum costs may be incurred, therefore can
be afforded/absorbed by the Contractor. Where the scale of the Mitigation includes increase in manpower, incentivisation,
etc, in complying with the Mitigation, then under such circumstances and requirements, it cannot be within the meaning
and necessity for Mitigation.
Contractual Provisions on Expedition, Mitigation and Acceleration
Expedition
In Malaysian Standard Forms of Building or Construction Contract, the general forms expressly state that the Contractor
must carry out the work with diligence, which necessitate expediting its works, whenever it is necessary. Below are a few
typical clauses in the Standard Forms of Building or Construction Contract:
The CIDB Clause 25 - Expediting Progress of Works, provides
25.1 Notification to Expedite
25.1(a) If for any reason which does not entitle the Contractor to an extension of time, the rate of progress of the Works
or any section of the Works is at any time, in the opinion of the Superintending Officer, too slow to achieve
completion by the Time for Completion of the Works or any section of the Works, the Superintending Officer
shall instruct the Contractor accordingly.
25.1(b) The Contractor shall upon the receipt of such instruction take such steps as are necessary to expedite progress
and to complete the Works or any section of the Works in accordance with the said instruction. Such steps shall
include, if required by the Superintending Officer, the preparation of a revised or modified Works programme
for acceptance pursuant to Clause 5.
25.1(c) Unless the Superintending Officer shall issue an instruction for Variation in accordance with Clause 28, the Contractor
shall not be entitled to any additional payment whatsoever for taking the steps referred to in sub-clause 25.1(b).
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25.2 Work to Expedite Progress
If as a result of any instruction given by the
Superintending Officer under Clause 25.1, the
Contractor considers that it is necessary to do any work
at night or on Public Holidays, he shall seek the consent
of the Superintending Officer in accordance with the
provisions of Clause 13.1.”
Further, CIDB Clause 7.1(a):
“The Contractor shall, with due care and diligence, design
(to the extent required by the Contract), execute and complete
the Works and remedy Defects to the satisfaction of the
Superintending Officer in accordance with the provisions of
the Contract.”
PWD Form 203 (2007) Clause 10.1:
“The Contractor shall –
(d)
perform the Works and discharge its obligations as
contained in this Contract by exercising professional
judgment and practice, requisite skill, care and
diligence. In performing the Works, the Contractor
shall provide well-outlined procedures in the form
agreed by the Government for reporting and coordination purposes;”
time is of the essence. The understanding of Expedition
or Expediting in addition to being synonymous to “due
diligence”, often leans toward being the subset of Mitigation
for which Wallace (1995) quotes:
“In addition to express provisions for completion by a stated
date, virtually all construction contracts, for very good practical
reasons, also contains provisions requiring due diligence or
expedition by the contractor at all times prior to completion.
Thus, the English standard forms provide that the contractor
“shall … regularly and diligently proceed with the
[works]” and “shall proceed with the [works] with due
expedition and without delay”, but in fact, even in the
absence of such provisions, it is submitted that there must
be an implied term that the contractor will proceed with
reasonable diligence, although no doubt, in cases where a
completion date is stipulated in the contract, the degree
of the required progress will be measured against the
prospects of completion by that date. The reason for this
latter implied term, it is submitted, is that otherwise, an
owner will be forced to stand by helpless until perhaps, distant
completion date, notwithstanding a rate of progress clearly
inadequate to achieve the promised date and certain to cause
irremedial future loss to the owner.”
Mitigation
The Malaysian Standard
Forms of Building or
Construction Contract
provide for clauses which
require Contractor to
use his best endeavor to
prevent or reduce delay
in the progress of its
works. In PAM 2006,
the need for Contractor
to mitigate the delay, is
described, as follow:
In PAM 2006, the terms diligence and expedition is
mentioned under Clause 11.2 which provided, “No
Variation ordered by the Architect or subsequently sanctioned
by him shall vitiate the Contract. Pending the valuation of the
Variations, the Contractor shall carry out with due diligence
and expedition all Variations so instructed.”
Although the term Expedition/Expediting is not expressly
written in most of the Malaysian Forms of Contract, except
for CIDB Form, however Expedition in traditional contract
seems to be the implied equivalent to “due diligence”, where
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“The Contractor shall
constantly use his best
endeavour to prevent or
reduce delay in the progress of the Works, and to do all that
may reasonably required to the satisfaction of the Architect to
prevent and reduce delay or further delay in the completion of
the Works beyond the Completion Date.”
Other relevant mitigation clauses in respect of the various
forms of contract in use in Malaysia, are:
• PAM 1998 – Sub-clause 23.4 on Extension of Time;
• JKR 203A(2007) – Sub-clause 43.1 on Delay and
Extension of Time ;
• IEM – Clause 43 on Extension of Time ;
• CIDB – Sub-clause 24.1 – Delay and Extension of Time.
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Under the aforesaid provisions, the Contractor is not
expressly required to incur additional expenditures, other
than implied minor costs, for any re-sequencing activities,
changing priorities, amend logic links and/or redeployment
of resources, if necessary.
Acceleration
In the Malaysian Standard Forms of Building or
Construction Contract, there is no expressed Acceleration
provision provided. However, there are number of
projects where the contracting parties agree to introduce
an acceleration clause in their contract. A sample of such
Acceleration provision, is as follow:
“Where the Employer’s Representative considers that the
Contractor by adopting measures (referred to in this Clause
XX.X as Acceleration Measures) would be able to Complete
the Works earlier than the expiry of the Date for Completion
or would be able to extinguish or significantly reduce any
extension of time to which he would be otherwise be entitled
pursuant to Clause XX (Extension of Time), the Employer’s
Representative may be in writing request the Contractor to
provide estimates of:
(i)
the price of adopting Acceleration Measures; and
(ii)
any saving in time which could be made by adoption
of the Acceleration Measures,
and details of any other terms and conditions sought by the
Contractor in consideration of agreeing to adopt Acceleration
Measures (which estimates, details, terms and conditions are
jointly referred to in this Clause as the Acceleration Proposals).
The Contractor shall use his best endeavours to prepare
Acceleration Proposals which would enable the Works to be
accelerated in the most economical manner practice.”
In the absence of an Acceleration provision, Employer
may still request (but cannot instruct, contractually)
the Contractor to accelerate the work and negotiate the
terms and rate of the acceleration work. In such cases, the
Contractor has the right to refuse to do the acceleration
work if the Employer do not agree with or accept the terms
and rate of the Acceleration proposal.
Doctrine of Constructive Acceleration
in Various Countries
Constructive acceleration doctrine is a well-recognized
legal theory in Unites States. The United States Federal
Government’s Board of Contract Appeal has established
the basic rules of entitlement concerning such claim and
these rules have been summarized by Zack (2011) under
the Acceleration section above.
However in United Kingdom, the courts do not recognized
the concept of constructive acceleration, except being close
in acknowledging this concept via the case of Motherwell
Bridge Construction Ltd v Micafil Vacuumtechnik (2002).
Consequently, in the event of a constructive acceleration
situation, it is common in the UK to refer the dispute to
the adjudication to seek an adjudicator decision where the
contracts are under the jurisdiction of the Housing Grants,
Construction and Regeneration Act, UK. Otherwise,
the Contractor will need to plead acts of prevention or
hindrance, coercion to obtain earlier completion and breach
of contract in order to recover any acceleration costs.
In Australia, the courts have not adopted the term
“constructive acceleration”. A Contractor would need to
prove that the Employer has breached their contractual
obligation in granting extension of time and administrating
the contract correctly, as well as owing the resulting damages
in order to be successful in its “constructive acceleration”
claim. Alternatively, the Contractor may rely on act of
prevention or hindrance when pursuing their claim.
In Hong Kong, Malaysia and Singapore courts, like many
other Commonwealth courts, the concept of constructive
acceleration is not really recognized. A Contractor in Hong
Kong may still be able to recover damages by using mitigation
of delay or breach of contract as the legal basis. In the case
of Malaysia and Singapore, both countries acknowledged
the legal concepts of acts of prevention/hindrance, time
at large and breach of contract. A Contractor may be
able to recover damages, most likely through arbitration
or litigation, provided the Contractor is able to prove
entitlement to time extension or refusal of the Employer
to grant additional time allowed under the contract and
additional costs or damages incurred by the Contractor’s
acceleration efforts.
Relevant Case Law
The following are legal cases on the matters relating to
Expedition, Mitigation and Acceleration;
Motherwell Bridge Construction Ltd v.
Micafil Vacuumtechnik (2002) 81 Con LR 44
Micafil had ordered numerous variations but declined to
award extension of time under the applicable provisions
because it was vitally important to achieve completion
by the original completion date. Motherwell had after
receiving progressive complaints from Micafil, decided to
accelerate the works by (working overtime and providing
additional resources). Motherwell claimed the additional
costs in complying with Micafil’s instruction to finish the
project on time.
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as requested by us, we nevertheless do not agree on your revised
quotation”.
Joo Leong Timber Merchant v Dr Jaswant
Singh a/l Jagat Singh [2003] 5 MLJ 116
It was held that (Rawling, 2005/6):(i)
(ii)
(iii)
(iv)
(v)
There had been excusable delays;
Micafil had refused to grant extensions of time to
which Motherwell would have been entitled under
its sub-contract;
Motherwell had accelerated to complete by the
required date and had proved that, but for the
delay mitigation measures, the works would have
been completed on a later date than they were
actually completed;
Motherwell had written and told Micafil of the
actual and projected costs of implementing delay
mitigation measures, either prior to, or at the time
of implementing the necessary measures; and
Motherwell was entitled to reimbursement of its
additional costs incurred in mitigating the delays
notified to Micafil.
The above case concluded that if a party is wrongfully
refused an extension and accelerates to avoid
liquidated damages, it may be entitled to recover
acceleration costs, even without the agreement of
the Employer. This case recognizes constructive
acceleration as a ground for construction claim.
Matang Integrated Sdn Bhd v Usahasama
SPNB-LTAT Sdn Bhd [2010] 1 LNS 809 The plaintiff was a rescue contractor engaged by the
defendant to rescue and revive an uncompleted housing
project comprising of several high rise blocks of housing
accommodation for an army camp. Dispute arose when
the defendant though admitting that it had requested the
plaintiff to accelerate the works nevertheless maintained
that it had not agreed to the additional cost quoted. The
judge said that the defendant should have made a clear
response in not agreeing to the revised quotation. By not
having doing so, the defendant was estopped from saying
that “while we have no objection to your accelerated completion
Master Builders
1 st & 2 nd Quarter 2011
74
The damages were assessed on the basis that an innocent
party had a duty to mitigate his damages. The judge
explained the principle of mitigation, which was “Damages
are assessed on the basis that an aggrieved party has a duty
to mitigate his damages. A claim for damages is subject to a
duty to mitigate the loss and the right is qualified by a duty to
mitigate. A victim of a breach of contract cannot cut short his
duty to mitigate his loss by mere commencement of an action
for damages. It is well settled that innocent party can recover
no greater damages for breach of contract that the loss he would
have sustained had he acted reasonably to avoid or reduce
loss.”
Malaysia Rubber Development
Corporation Berhad v Glove Seal Sdn
Bhd [1994] 4 CLJ
The plaintiff entered an agreement with second defendant
on agreeing to supply two million pieces of rubber glove per
month to the first defendant from November 1988 until
1989. Due to failing in issuing an irrevocable letter of credit
in favour of plaintiff, the first defendant committed breach
of contract. The plaintiff sued for the damages for inter alia
loss of profits and marketing costs.
In the matter of mitigation of damages, the Judge said:
“it is a settled principle that the plaintiff is under a duty to
take reasonable steps to mitigate the loss consequent to the
defendant’s wrong and he will not get damages in respect of
any part of the loss which is due to his neglect to take such steps.
In the sale of goods, the principle of mitigation is a foundation
of the normal rule for the measure of damages which requires
the innocent party to act immediately upon the breach. Even
in the absence of an available market, the innocent party must
act reasonably to mitigate his loss.”
Conclusion
The task of segregating expedition, mitigation and
acceleration has not been easy, but not impossible. What
appears relatively clear is that both acceleration and
expedition could be subsets to Mitigation, but not vice versa.
Practically, the lack of clear express contractual provisions
pertaining to Expedition, Mitigation and Acceleration add
to the challenge in categorizing the methods for speeding up
the works of a particular project. Adding to the ambiguity
is the often lack of clear instruction from the Employer or
its authorized representative to overcome the delay to the
completion of the works.
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Notwithstanding, the terms can be distinguished from
the various Standard Forms of Building and Construction
Contract and legal cases and write-ups. Expedition or
Expediting can be defined as necessary measure by the
Contractor to overcome the delay cause by the Contractor
itself, its own expense. While acceleration is a mechanism for
an early completion which usually involves additional costs
and Mitigation is doing things differently or rescheduling
of the works, reallocating resources, with little or no cost
implication to the Contractor, in order to minimize the
delay or loss due to the changed conditions.
The cost implications in Expedition, Mitigation or
Acceleration, are subjective and dependent on the
circumstances of each case. But what is certain in acceleration
is that it will incur additional costs, compared to expedition
and mitigation. Where “acceleration” is directive or
instructed by the Employer or its authorized representative,
the Contractor, without doubt is usually entitled to the
additional costs incurred. Expedition and Mitigation often
does not carry similar entitlement to such additional costs.
With the clarification of the aforesaid terms, it is hoped
that this article can enlighten the Malaysian construction
industry, especially for those confused or faced such term/s
in their construction contracts, with proper appreciation
and understanding of these terms and their implications,
contractually and/or legally.
In the next issue of the MBAM journal, BK Entrusty
article will deal with a common contractual issue on
“Ground Conditions - Nightmares unraveled ?”
Bibliography and Reference
1.
2.
3.
4.
5.
6.
7.
Atkinson , Daniel (2002) “Delay and Disruption –
Acceleration”, extracted from http://www.atkinsonlaw.com/library/article.php?id=135;
Atkinson , Daniel (2002) “Daniel and Disruption
– Constructive Acceleration” extracted from http://
www.atkinson-law.com/library/article.php?id=73;
BeHyden. B et al (2010) “Highlights: the anatomy
of a construction acceleration claim”, extracted from
http://www.lexology.com;
Hoe, Glenn (2010) “Managing a programme under
the NEC (ECC)form of contract”ICE.
Joo Leong Timber Merchant v Dr Jaswant Singh a/l
Jagat Singh [2003] 5 MLJ 116;
Last, William C (2002) “Are you being ordered to
complete your work earlier then scheduled? An overview
of acceleration claims”, extracted from http://www.
lhfconstructlaw.com;
Lee, C et al (2002) “The Joint Contracts Committee’s
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
75
Standard Form of Building Contract: Private Edition
– With Quantities Fourth Draft, 3rd Sub Draft, March
2002”, extracted from http://www.brianerawling.
com
Malaysia Rubber Development Corporation Berhad
v Glove Seal Sdn Bhd [1994] 4 CLJ;
Matang Integrated Sdn Bhd v Usahasama SPNBLTAT Sdn Bhd [2010] 1 LNS 809; Masons, Pinsent (2009) “Acceleration, Constructor’s
Legal Guidance Note Autumn 2009 Edition”
extracted from http://www.pinsentmasons.com/
PDF/ CLGNAutumn2009 Eng.pdf;
Motherwell Bridge Construction Ltd v. Micafil
Vacuumtechnik (2002) 81 Con LR 44;
Rawling, B., “Delay Mitigation”, Brian E Rawling
& Associates Ltd (Winter – 2005/6), http://www.
brianerawling.com/PDF/Winter%2005_06%20
~%20Delay%20Mitigation.pdf
RICS (2007) “A legal Analysis of Some Schedule
Related Disputes in Construction Contracts - The
Construction and Building Research Conference of
the Royal Institution of Chartered Surveyor, Georgia
Tech, Atlanta USA, 6-7 September 2007”, extracted
from http://www.rics.org/site/download_feed.aspx?
fileID=3400 &fileExtension=PDF;
Skaik, Samer H (2008) “Constructive Acceleration
demands clear intentions” extracted from http://
http://www.cmguide.org;
The Society of Construction Law (2002) “Delay
and Disruption Protocol”, extracted from http://
www.scl.org.uk;
Wallace, I.N. Duncan, “HUDSON’s Building and
Engineering Contracts”, 11th Edition, Sweet and
Maxwell, 1995;
Wray, R (2000) “Constructive Acceleration”, extracted
from http://www.findlaw.com;
Zack, J.G. (2011) “Constructive Acceleration – A
Global Tour”, extracted from http://www.navigant.
com.
References are also made to several Malaysian
standard forms of contract, namely;
i. PAM Forms of Building Contract (1998 &
2006)
ii. JKR/PWD Forms of Contract (203A Rev 10/83 & Rev. 2007)
iii. IEM Conditions of Contract for Works
Mainly of Civil Engineering Construction
(1st Edition – 1989)
iv. CIDB Form of Contract for Building
Works (2000 Edition).
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1 s t & 2 n d Quarter 2011
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2. One Day or Two Days Intensive Seminar (with workshop) on Practical
Construction Claims in Malaysia.
3. 10 Half Day or 5 Full Day Modules on Practical Construction Contract
Administration / Management.
4. One Day or Two Days Intensive Training (with workshop) on Value
Engineering / Management.
5. International/Accredited Value Management Programmes.
6. ISO 9001:2008 Training.
7. One Day Seminar on “Doing The Right Things Right”.
8. Motivation, Train-The-Trainer and NLP programmes.
Claims Preparation and Management
Certifications and Payments
Time and Monetary Claims
Common Contractual Issues/Problems in
Malaysia
5. Pertinent Contractual Provisions in
Construction Contracts
6. Recent Construction Contract case law in
Malaysia
Master Builders
1 st & 2 nd Quarter 2011
76
ADVERTISING RATES IN
MBAM JOURNAL
Advertising rates in quarterly Master Builders Journal (MBJ 2011) are as follows:
Per issue
Outside back cover
Inside front cover
Inside back cover
Full page ROP
Half page ROP
RM3,800
RM3,300
RM3,000
RM2,500
RM1,600
Price for
2 issues
Price for
3 issues
(5% discount)
RM3,610
RM3,420
N/A
each volume
each volume
each volume
RM3,100
RM2,970
N/A
each volume
each volume
each volume
RM2,850
RM2,700
N/A
each volume
each volume
each volume
RM2,375
RM2,250
RM1,800
each volume
each volume
each volume
RM1,520
RM1,440
RM1,000
each volume
each volume
each volume
Special Package for 3 Issues (Full page ROP)
Note:
Price for
Black & White
(15% discount)
RM5,400
Advertisement by agency will be given a flat 15% discount and above stated discount is not applicable. Further 20% discount will be given
if commitment and payment before 1st July & 1st October respectively for each quarterly issue.
Advertisement details are as follows:
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s 9OUONLYNEEDTOSUPPLYADIGITALARTWORKOFTHEADVERTISEMENT4HEARTWORKMUSTBEINHIGHRESOLUTION
+INDLYSUBMITYOURADVERTISEMENTTOUSIN!)!DOBE)LLUSTRATOR&ORMATORIN0$&
s 4HEPUBLISHERWILLNOTBERESPONSIBLEFORANYOMISSIONTOINSERTAN!DVERTISEMENTANDRESERVESTHERIGHTTO
REJECTORCANCELANYORDERNOTWITHSTANDINGACCEPTANCEOFPAYMENT
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RESPECTOF!DVERTISEMENTPUBLISHEDUNDERINSTRUCTIONSFROMANADVERTISERORHISAGENCY
s 4HEPOSITIONINGOFTHE!DVERTISEMENTINUNSPECIFIEDPAGESWILLBEATTHEDISCRETIONOFTHEPUBLISHER
s #ANCELLATIONWILLNOTBEENTERTAINED
s !LLFINALAPPROVEDADVERTISINGMATERIALSMUSTBESUBMITTEDst *ANUARY1st !PRIL1st July & 1st October
RESPECTIVELYFOREACHQUARTERLYISSUE
s 4YPESETTINGARTWORKPHOTOGRAPHYCOLOURSEPARATIONORANYOTHERREQUESTEDASSISTANCEWILLBECHARGED
SEPARATELYATTRADERATES
s )FADVERTISINGMATERIALSARENOTSUBMITTEDBYSTIPULATEDCOPYDEADLINEEXISTINGMATERIALWILLBEREPEATEDORIF
INTHEABSENCEOFWHICHTHESPACEBOOKEDWILLBEFILLEDATTHEPUBLISHERSDISCRETION
Chief Operating Officer
Master Builders Association Malaysia
2-1, (1st Floor) Jalan 2/109E
Desa Business Park, Taman Desa
Off Jalan Kelang Lama
58100 Kuala Lumpur.
Fax: 03 - 7982 6811
ADVERTISING IN
MBAM QUARTERLY JOURNAL
Dear Sir,
We are pleased to advertise in the MBAM Quarterly Journal and wish to book advertising space as follows:
Third Quarter
Fourth Quarter
First Quarter
Second Quarter
Year 2011
Year 2011
Year 2012
Year 2012
We enclose herewith the advertising material:
Artwork must be in digital format
(Please tick
the appropriate boxes)
Payment:
We enclose herewith cheque No.:______________________ for the amount of RM__________
in favour of “Master Builders Association Malaysia” being payment for the bookings.
Please invoice us accordingly.
Name of Organization
Contact Person
Designation
Address
Telephone Number
*
**
: .................................................................................................................................
: .................................................................................................................................
: .................................................................................................................................
: .................................................................................................................................
: .......................................................... Fax No.: ........................................................
Rates quoted exclude advertisement rates for the MBAM website.
Type setting, artwork, photography, colour separation or any other requested assistance will be
charge separately at trade rates.
Signature: .................................................
Name:
Date: .................................................
JOURNAL ORDER FORM
Chief Operating Officer
Master Builders Association Malaysia
2-1, (1st Floor) Jalan 2/109E
Desa Business Park, Taman Desa
Off Jalan Kelang Lama
58100 Kuala Lumpur.
Fax: 03 - 7982 6811
Dear Sir,
I wish to subscribe to the next issue of the quarterly Master Builders Journal (MBJ). Enclosed please find
cheque/bank draft No.: __________________________for RM40.00 (inclusive of postage charge) made
in favour of Master Builders Association Malaysia (for subscription within Malaysia only).
Name of Organization
Contact Person
Designation
Address
Telephone Number
: ............................................................................................................................
: ............................................................................................................................
: ............................................................................................................................
: ............................................................................................................................
: ...................................................... Fax No.: ......................................................
Signature: ............................................
Date: ............................................
Name:
.......................................................................................................................................................................
JOURNAL ADVERTISEMENT ENQUIRY
Chief Operating Officer
Master Builders Association Malaysia
2-1, (1st Floor) Jalan 2/109E
Desa Business Park, Taman Desa
Off Jalan Kelang Lama
58100 Kuala Lumpur.
Fax: 03 - 7982 6811
Dear Sir,
I am interested in advertising in the quarterly Master Builders Journal (MBJ). Please send me further
particulars on your advertising rates and advertising requirements.
Name of Organization
Contact Person
Designation
Address
Telephone Number
: ............................................................................................................................
: ............................................................................................................................
: ............................................................................................................................
: ............................................................................................................................
: ...................................................... Fax No.: ......................................................
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