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AIAC's Standard Form of Contracts (SFC) is a suite of standard form contracts that are customizable and freely available for print and download. AIAC's SFC was inspired by the prevalent issues plaguing the Malaysian construction industry, aimed at filling the gaps of existing standard form building contracts in governing relationships, rights and duties of parties to a building construction project. It is user-friendly, uses simple language and includes clearer provisions to guide users in interpreting the contract. AIAC's SFC is Malaysia’s first ever CIPAA-compliant suite of building contracts and contains more mechanisms for parties to resolve disputes and deadlocks including mediation, encouraging parties to continue work despite disputes, while preserving parties’ rights till completion. The hallmark of AIAC's SFC is continuity of works and working relationships.
The AIAC 2019 SFC introduces the Contract Administrator who will be in charge of delegating roles, supervising the contract and ensuring checks and balances. By merging the With and Without Quantities, the AIAC 2019 SFC provides users with more clarity as it eliminates the need to distinguish the contracts.
The 2018 Edition of AIAC’s Minor Works and Design and Build Contracts and 2019 Edition of the Standard Form of Building Contracts derive from the original 2017 editions and are reflective of the name change recently undergone by the AIAC (formerly known as KLRCA).
While retaining the original guiding-principles set out in the original 2017 edition, AIAC’s 2018 and 2019 Editions include enhancements that add clarity, strengthen integrity, and clear any ambiguity in so far as obligations and accountability of parties are concerned.
Click here for a summary of the new and key features of both the AIAC’s SFC 2018 and 2019 Editions.
Each standard form contract is intended to serve as a template and can be tailored to meet your specific requirements. The AIAC assumes no responsibility or liability for any edits made to these contracts.
All information provided therein shall not be construed as legal advice. These contracts are intended to be general in nature and cannot substitute the advice of a licensed professional.
*If you need access to the 2018 Standard Form of Building Contracts With or Without Quantities or the 2018 Standard Form of Building Sub-Contracts please contact email@example.com.
|Removal of Distinction between With and Without Quantities||The AIAC 2019 SFC is a comprehensive unified contract that does away with the need to distinguish between With and Without Quantities. Users can now customize the contract to meet their specific needs.|
|Contract Administrator (“CA”)||The AIAC 2019 SFCs provide the Parties with the option to select a CA and to decide the roles accordingly. If no CA is designated, then by default the Architect will be the CA.|
|Contract Sum||The Contract Sum incorporates Lump Sum and any re-measurements, or other type of valuation as agreed between the Parties, to provide for better clarity.|
|Valuation Rules||The 2019 AIAC SFC makes the valuation of any Variation, and of work executed by the Contractor pursuant to Contract Administrator’s Instruction, to be more precise. The Parties may determine the percentage of change that would still allow the Schedule of Rates to apply when there is a Variation. Absent such decision, it will be fixed at 12%.|
|Time Impact Events||The AIAC 2019 SFCs expand the Non-Employer’s Events to include industrial action by workmen, strikes, lock-outs or embargoes affecting the Works or the preparation, manufacture or transportation of materials or goods required for the Works.|
|Nominated Sub-Contractor and Nominated Supplier||The AIAC 2019 SFCs’ provisions on Nominated Sub-Contractors and Nominated Suppliers protect the rights of all stakeholders involved.|
|Synchronization with latest legislative regimes||The AIAC 2019 SFCs incorporate the AIAC Arbitration Rules 2018 and the 2005 Arbitration Act (as amended 2018) and provide for adaptability to the latest tax regime.|
|Meaning of Practical Completion||The definition of Practical Completion has been simplified to accommodate different types of building projects and nature of works.|
Datuk Professor Sundra Rajoo spoke on the Standard Form of Building Contracts by AIAC on BFM Radio Station on 23rd March 2018. In case you have missed it, click play for the podcast.