Post contract

2012

Construction industry is realizing the plans and specifications for the physical structure. The project is success when it is completed to meet customer needs without any issues and problems in terms of time, quality and budget allocation. The budget allocation is important especially to get the total final cost of the project that will be added in the final accounts. Final account is the fact that the sum agreed to be paid at the end of the contract by the owner to the contractor. Moreover, the final account issue has existed in Malaysia construction industry for several decades in which the important factors significantly affect the closing of final account that related with contractor, management and the contract as well. Successful closing is categorized as resolved at the stipulated time without any problems in the dispute and delay. Therefore, the purpose of this paper is to investigate the important factors that contribute to the closing of final account in construction projects in Malaysia. This aim can be achieved through the objectives of evaluating the contract in Malaysia to compare the final closure of various forms of contract and finally identify the causes and effects of the dispute and delays in the final account closing. As a result, this paper can assist construction industry players to create more effective planning and be used as guidelines in ensuring the on-time closing of final account in constructions projects in Malaysia.

Construction industry is realizing the plans and specifications for the physical structure. The project is success when it is completed to meet customer needs without any issues and problems in terms of time, quality and budget allocation. The budget allocation is important especially to get the total final cost of the project that will be added in the final accounts. Final account is the fact that the sum agreed to be paid at the end of the contract by the owner to the contractor. Moreover, the final account issue has existed in Malaysia construction industry for several decades in which the important factors significantly affect the closing of final account that related with contractor, management and the contract as well. Successful closing is categorized as resolved at the stipulated time without any problems in the dispute and delay. Therefore, the purpose of this paper is to investigate the important factors that contribute to the closing of final account in construction projects in Malaysia. This aim can be achieved through the objectives of evaluating the contract in Malaysia to compare the final closure of various forms of contract and finally identify the causes and effects of the dispute and delays in the final account closing. As a result, this paper can assist construction industry players to create more effective planning and be used as guidelines in ensuring the on-time closing of final account in constructions projects in Malaysia.

2010

In Malaysia, subcontractors are definitely benefited from payment provisions in the proposed Construction Industry Payment and Adjudication Act (CIPA Act). However, the particularly small sized sub-contractors need to enhance knowledge of the so-called the 'Security of Payment' Regime to improve their awareness of the benefits of the Act. Due to this, this on-going research attempts to introduce balance and proper guidelines to the sub-contractors, in giving the knowledge, to claim for payment and the main contractors able to make prompt payments. Before that, the research may first identify the payment provisions in the standard forms of contracts as well as in domestic sub-contracts especially on Contingent Payment, and exploring the problems and legal issues relating to payment default. Then, by determining the level of knowledge that the sub-contractors have to the proposed CIPA Act, and analysing the various avenues which improve the payment problem in the construction industry those have been incorporated in the construction contract or statutes in the other developed countries as well as the proposed CIPA Act, the aim may be achieved. The purpose of this paper, though, is to disclose the finding of the first objective of the on-going research. In the standard forms of construction contracts, currently, the payment structure to the sub-contractors are divided into three: payment upon certification, direct payment from the employer, and contingent payment or conditional payment. As long as the Malaysian 'Security of Payment' Regime remains in proposal, the sub-contractors have to bear with the current structure of payment mechanisms.

2010

In Malaysia, subcontractors are definitely benefited from payment provisions in the proposed Construction Industry Payment and Adjudication Act (CIPA Act). However, the particularly small sized sub-contractors need to enhance knowledge of the so-called the ‘Security of Payment’ Regime to improve their awareness of the benefits of the Act. Due to this, this on-going research attempts to introduce balance and proper guidelines to the sub-contractors, in giving the knowledge, to claim for payment and the main contractors able to make prompt payments. Before that, the research may first identify the payment provisions in the standard forms of contracts as well as in domestic sub-contracts especially on Contingent Payment, and exploring the problems and legal issues relating to payment default. Then, by determining the level of knowledge that the sub-contractors have to the proposed CIPA Act, and analysing the various avenues which improve the payment problem in the construction industry those have been incorporated in the construction contract or statutes in the other developed countries as well as the proposed CIPA Act, the aim may be achieved. The purpose of this paper, though, is to disclose the finding of the first objective of the on-going research. In the standard forms of construction contracts, currently, the payment structure to the sub-contractors are divided into three: payment upon certification, direct payment from the employer, and contingent payment or conditional payment. As long as the Malaysian ‘Security of Payment’ Regime remains in proposal, the sub-contractors have to bear with the current structure of payment mechanisms.

2011

In Malaysia, the particularly small sized subcontractors are definitely benefited from payment provisions in the proposed Construction Industry Payment and Adjudication Act (CIPA Act). However, they need to enhance their knowledge of the so-called the "Security of Payment" Regime to benefits from the Act. Due to this, this on-going research attempts to introduce payment framework to the sub-contractors, in giving the knowledge, to claim for payment. This paper, though, is to disclose the finding of the level of knowledge that the sub-contractors have to the proposed Act, by preliminary analyzing the quantitative questionnaire survey. It was found that the adequacy of security of payment framework to the particularly small sized sub-contractors needs to be produced, and the analysis on effectiveness of the various avenues incorporated in the construction contract or statutes in the other developed countries as well as the proposed Act needs to be done. However, as long as the regime remains in proposal, the sub-contractors have to bear with the current structure of payment mechanisms in the standard forms of contract, which are payment upon certification, direct payment from the employer, and contingent or conditional payment.

The Built & Human Environment …, 2011

In Malaysia, the particularly small sized sub-contractors are definitely benefited from payment provisions in the proposed Construction Industry Payment and Adjudication Act (CIPA Act), but need to enhance their knowledge in order to improve their awareness of the benefits of the Act. Accordingly, this on-going research attempts to introduce proper guidelines to the sub-contractors, in giving the knowledge, to claim for payment. Firstly, the research explored the problems and legal issues relating to payment default in law cases and standard forms of contract. By downloading from the Malayan Law Journal, cases that indicated the issues of payment to the subcontractors, were analyzed. It is found that on its relevancy, the adjudicator shall be equipped enough with the knowledge on the issues to become a good and reliable adjudicator, as well as sub-contractors will need to enhance their knowledge on the issues of payment in order to be successful in benefitting the proposed CIPA Act. However, as long as the CIPA Act remains in proposal, the sub-contractors have to bear with the knowledge of the current structure of payment mechanisms in the standard forms of contract, which are payment upon certification, direct payment from the employer, and contingent or conditional payment.

2011

In Malaysia, sub-contractors have to bear with the current structure of payment mechanisms in the standard forms of contract, which are payment upon certification, direct payment from the employer, and contingent or conditional payment. However, „direct payment‟ provision is applied for in most of the nominated sub-contracts and not to the domestic sub-contractors; thus the Construction Industry Payment and Adjudication (CIPA) Act is proposed. This paper, though, is to disclose the findings on legal cases and sub-contractors‟ perspective on direct payment, by preliminary analyzing the quantitative questionnaire survey to the first 81 from the identified 1,500 sub-contractors throughout the country. Before that, from 186 cases, only 5 selected cases are analysed that thoroughly addressed the judgment of direct payment. It is found out that the particularly small sized subcontractors are definitely need to enhance their knowledge of the so-called the „Security of Payment‟ Regime to benefits from the proposed Act

ipedr.com

In Malaysia, the sub-contractors have to bear with the current structure of payment mechanisms in the standard forms of contract, which are payment upon certification, direct payment from the employer, and contingent or conditional payment. However, ‘payment upon certification’ provision mostly applied for nomiinated sub-contracts and not to the domestic sub-contractors; thus the Construction Industry Payment and Adjudication (CIPA) is proposed. This paper, though, is to disclose the findings on legal cases and subcontractors’ perspective on payment upon certification, by preliminary analyzing the quantitative questionnaire survey to the first 81 from the identified 1,500 sub-contractors throughout the country. Before that, from 186 cases, only 12 selected cases are analysed that thoroughly addressed the main issue of payment upon certification. It is found out that the particularly small sized subcontractors are definitely need to enhance their knowledge of the so-called the ‘Security of Payment’ Regime to benefits from the proposed Act.

The management of construction claims is become greatest challenge today which is not a simply straightforward task and experienced susceptible to a variety of factors along with an increasing difficulty in reaching amicable settlements in respect of complex reasons. Therefore, this research will attempt to identify the key issues and challenges faced in the management of claims for construction projects and will critical examine the root causes of these issues and make recommendation to address the issues identified from the study in order to mitigate the potential risks. For this purpose, a research study through an extensive literature review and quantitative data collection from varies discipline using questionnaire survey has accomplished to identify the essential issues faced in the management of claims. The sample size of approximately 200 responses is adequate to verify on the validity of fact and reflecting the real situation of construction claims in Malaysia. Through SPSS validity, reliability and factor analysis, the following eight significant factors that faced in the management of claims for construction projects are identified: (1) Record keeping; (2) Contractual risks; (3) Training and ICT system support; (4) Client intervention; (5) High turnover of staff; (6) Lack of contractual knowledge; (7) Contract close out and (8) Administrative support. The identified of these eight critical factors are crucial for practitioners in the construction industry to further research and develop a management strategy for better manage construction project by reducing the construction claims dispute effectively. The construction industry today is too emphasized in disseminate the alternative dispute resolution (ADR) methods such as negotiation, mediation, adjudication, arbitration and litigation to resolve the construction claims and dispute cases. There may be too little emphasis placed upon strategy to avoid unnecessary and costly investigations associated with construction claims. The more discoveries of prevention measures for construction claims disputes are obviously better than cure.