MBAM Section - Master Builders Association Malaysia
Transcription
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 Production Ideal Resources & Solutions (002032757-K) Manager : 34, Jalan Mulia 1/3, Taman Bukit Mulia 68000 Ampang, Selangor Tel: +603 4105 2906 • Fax: +603 4105 5197 Printed by : Corak Saujana Sdn Bhd (479489-X) 15 Ground Floor, Jalan 7/95B Taman Cheras Utama 56100 Kuala Lumpur Tel: +603 4280 4904 • Fax: +603 4280 4914 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. 3 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. 5 Master Builders 1 s t & 2 n d Quarter 2011 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 7 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 RM 90.00 x� ________� module/s = Non-Member with CIBD Green Card NRIC Designation Expiry Date Voucher No. : ________________________________ Cash RM : ________________________________ : ______________________________________ No. 2-1(1st Floor), Jalan 2/109E, Desa Business Park, Taman Desa, Off Jalan Klang Lama, 58100 Kuala Lumpur, Malaysia Tel: +603 - 7984 8636 Email: [email protected] (Ms Zharraine Chang) Fax: +603 - 7982 6811 Date E-mail : ______________________________________ Fax No. : ______________________________________ Tel No. : ______________________________________ To be eligible for the rebate, please submit registration form together with photocopy of participants’ valid CIDB Green Card MBAM Training Services Sdn. Bhd. CIBD Green Card No. Mode of Payment Cheque No. : ________________________________ Note : Payment Cheque is to be made payable to MBAM Training Services Sdn. Bhd. RM 60.00 x� ________� module/s = Name Member with CIBD Green Card Amount Payable Module 6 Module 5 Module 4 Module 3 Module 2 Module 1 No. We wish to register the following person(s) for Module indicated below:- (Kindly fax to +603 - 7982 6811 or email at [email protected]) 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 Collaboration 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 MBAM Library NEW BOOKS Information reference materials are available in MBAM library. The library is open from 9.00 a.m. to 5.00 p.m. on Mondays to Fridays and from 9.00 a.m. to 1.00 p.m. on 2nd and 4th Saturdays. Title Publisher Majalah Akitek Dec - Jan Achitectural Malaysia Uptime Asean March 2011 APC Smart City of the Future Conference Asian Strategy & Leadership Institute Association Meetings International AMI February 2011 Association Meetings International Worldwide Convention Venues Directory 2011 Association Meetings International A Natural Brilliance Association Meetings International Bridging You to Arab World , issue 27 March 2011 ASWAQ Malaysia and the Arab World Bulletin QS-LINK Vol 2/2010 Board of Quantity Surveyors Malaysia Perfect Living Home & Lifestyle Exhibition CNM Events Marketing Sdn Bhd Newsletter of The Construction Industry Development Board Malaysia Issue 3/2010 Construction Industry Development Board Malaysia International Business Review Global Leaders, Businesses & Innovations Where Property Matter: March -April 2011 Home Finder 38th IFAWPCA Programme Book IFAWPCA Landskap Bulletin Issue No 7 Institute of Landscape Architects Malaysia Dasar Perumahan Negara Jabatan Perumahan Negara BIZ & Living In Malaysia Korean Chamber of Commerce Malaysia Bina Integriti Vol. 4/2010 October - December Lembaga Pembangunan Industri Pembinaan Malaysia Matrade’s Annual Report 2009 Malaysia External Trade Development Corporation November 2010 Publication Malaysian Institute of Architects February 2011 Berita Akitek Malaysian Institute of Architects Timber Malaysia Vol 16 No 6, Nov - Dec 2010 Malaysian Timber Council Trademart January - February 2011 Matrade Training 2011 Planner Sirim Berhad Suara TEEAM February 2011 TEEAM Tenaga Link Vol 01/10 Tenaga Nasional IEM Journal Vol 71 No 4 The Institution of Engineers Malaysia Jurutera No 1 January 2011 The Institution of Engineers Malaysia The Malaysian Surveyor Vol 45, No. 4 2010 The Institution of Surveyors Malaysia MASSA News December 2010 The Malaysian South South Association The Malaysian Tin Products Newsletter Quarterly 2010 The Malaysian Tin Produsts Manufacturers Association Nur Menerangi Sejuta Harapan 5th April 2011 Utusan Malaysia Master Builders 1 st & 2 nd Quarter 2011 48 MBAM Library Title Publisher Architecture Malaysia - February / March 2011 Architectural Malaysia AMI Publication April 2011 Association Meetings International 1Q 2011 Perunding Suara Association of Consulting Engineers Malaysia Annual Report 2010 Bank Negara Malaysia Financial Stability and Payment Systems Report Bank Negara Malaysia Annual Report 2010 Bank Negara Malaysia Finacial Stability and Payment Systems Report Bank Negara Malaysia WTW Property Market 2011 C H Williams Talhar & Wong Creating Synergy Between Academia and Industry CIDB CIDB Newsletter No 1/2011 Construction Industry Development Board Malaysia Standards Accreditation News Department of Standard Malaysia EUMCCI Trade Issue and Recommendations 2011 EU-Malaysia Chamber of Commerce and Industry Landskap Bulletin Issue No 8 January - April 2011 Institute of Landscape Architects Malaysia Bersama Mentransformasikan Malaysia Kementerian Kerjaya Raya Malaysia Koleksi Ucapan Menteri Kerja Raya Dato’ Shaziman Abu Mansor Kementerian Kerjaya Raya Malaysia The Bridge March 2011 Malaysia Canada Business Council Trademart March-April 2011, A Publication for Malaysian Exporters Malaysia External Trade Development Corporation Malaysian Minerals & Metals Bulletin: January - February 2011 Malaysian Chamber of Mines MFPA 2011 Publication Malaysian Fire Protection Assocition Offshore Engineering Advances and Sustainability 7 - 9 June 2011 Malaysian Structural Steel Association Timber Malaysia Vol 17 No 1 Jan-Feb 2011 Malaysian Timber Council Penerbitan Newsletter MalaysianThai Chamber Of Commerce MTCC Malaysian Trade Office Embassy of Malaysia Productivity Report 2010/2011 MPC Nippon Paint In-Focus Newsletter Issue 3 Nippon Paint (M) Sdn Bhd Publication issue No 6 First Half 2011 Promat Technology Trends EUMCCI Volume No 2 April 2011 Pusat Perubatan Prince Court Medical Centre Bulletin April 2011 Real Estate and Housing Developers Association Malaysia (REHDA) Bulletin March 2011 REHDA Bulletin February 2011 REHDA Bulletin January 2011 REHDA ACCIM Bulletin April 2011 The Associated Chinese Chambers of Commerce And Industry of Malaysia Bulletin For Month of April 2011 The Institution of Engineers Malaysia UTAR Horizon Newsletter February 2011 Universiti Tunku Abdul Rahman 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? 50 Articles 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. 52 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. 53 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. 55 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] 56 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 • 57 Monitoring the physical progress of the project [Recommend remedial measures in the event of delays and bottlenecks] Master Builders 1 s t & 2 n d Quarter 2011 Articles • 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. Master Builders 1 st & 2 nd Quarter 2011 [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, 58 Articles 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 59 Master Builders 1 s t & 2 n d Quarter 2011 Articles 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. Master Builders 1 st & 2 nd Quarter 2011 60 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 Master Builders 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 62 Articles 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. 63 Master Builders 1 s t & 2 n d Quarter 2011 Articles 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. Master Builders 1 st & 2 nd Quarter 2011 64 Articles [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 65 Master Builders 1 s t & 2 n d Quarter 2011 Articles 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 Master Builders 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. 66 Articles 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 67 Master Builders 1 s t & 2 n d Quarter 2011 Articles 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. Master Builders 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 68 Articles 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. 69 Master Builders 1 s t & 2 n d Quarter 2011 Articles 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 Master Builders 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. 70 Articles 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). 71 Master Builders 1 s t & 2 n d Quarter 2011 Articles 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 Master Builders 1 st & 2 nd Quarter 2011 “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. 72 Articles 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. 73 Master Builders 1 s t & 2 n d Quarter 2011 Articles 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. Articles 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). Master Builders 1 s t & 2 n d Quarter 2011 Articles BK Asia Pacific is group of companies incorporated in the Asia Pacific Region providing a comprehensive network of project management, commercial and contract management services to the international construction industry, with offices in Cambodia, China (Hong Kong, Shanghai), Malaysia, Philippines, Singapore, Thailand, Vietnam, United Kingdom and United Arab Emirates. For further details, visit www.bkasiapacific.com. Entrusty Group is a multidisciplinary group of companies which comprises Entrusty Consultancy Sdn Bhd (formerly known as J.D. Kingsfield (M) Sdn Bhd), BK Burns & Ong Sdn Bhd (a member of BK Asia Pacific Ltd, Hong Kong), Pro-Value Management Sdn Bhd (in association with Applied Facilitation & Training, Australia), International Master Trainers Sdn Bhd (in association with Master Trainer of New York), Agensi Pekerjaan Proforce Sdn Bhd, AlphaOmega Matrix and Entrusty International Pte Ltd. The Group provides comprehensive consultancy, advisory and management services in project, commercial, contracts, construction, facilities, risks, quality and value management, cost management, executive search / personnel recruitment and corporate training / seminars / workshops to various industries particularly in construction, petrochemical, manufacturing and IT, both locally and internationally. For further details, visit www.entrusty.com. BK Entrusty provides 30 minutes of free consultancy (with prior appointment) to MBAM members in the areas of project, commercial, contracts, risks, quality and value management, For enquiries, please contact HT Ong at BK Entrusty, 22-1& 2 Jalan 2/109E, Desa Business Park, Taman Desa, 58100 Kuala Lumpur, Malaysia. Tel: 6(03)-7982 2123 Fax: 6(03)-7982 3122 Email: [email protected] or [email protected] Public Seminars Public / In-house Training Programmes 1. 2. 3. 4. 1. Effective Project or Contract Administration / Management. 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: s 4HE!DVERTISEMENTSIZEWILLBE!SIZEMMXMM s 9OUONLYNEEDTOSUPPLYADIGITALARTWORKOFTHEADVERTISEMENT4HEARTWORKMUSTBEINHIGHRESOLUTION +INDLYSUBMITYOURADVERTISEMENTTOUSIN!)!DOBE)LLUSTRATOR&ORMATORIN0$& s 4HEPUBLISHERWILLNOTBERESPONSIBLEFORANYOMISSIONTOINSERTAN!DVERTISEMENTANDRESERVESTHERIGHTTO REJECTORCANCELANYORDERNOTWITHSTANDINGACCEPTANCEOFPAYMENT s 4HEPUBLISHERISINDEMNIFIEDAGAINSTALLCLAIMSACTIONSSUITSDEMANDSLOSSESCOSTSANDEXPENSESIN 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.: ...................................................... JOURNAL READERSHIP SURVEY Dear Valued Reader, to 603 - 7982 6811. Thank you for your feedback. Do you wish to continue receiving this publication? Yes No How many person(s) read this copy of MBJ? 1 2 3 4 or more How much of this issue did you read? All Most Just skimmed it Strongly agree None of it Somewhat agree Most interesting Section: Editorial Disagree Cover Story MBAM News Featured Articles Suggestions for new Sections: What information / topics would you like to see in upcoming issues? Rate the quality of MBJ Contents Design Layout Photographs Writing Excellent Good Average Poor What changes would make MBJ more visually appealing to you? What changes would make MBJ easier to read? What has MBJ prompted you to do so far? (Tick whichever is applicable) Contact an advertiser Visit MBAM website Attend an MBAM event Share the journal with others Clip an article for future reference Inquire about opportunities for article contribution Name & Position Organization Address Tel, Fax & E-mail Date Inquire about membership Update yor contact information