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AIAC Standard Form of Contracts (SFC) is a suite of standard form contracts that are customisable and freely available for print and download. AIAC 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 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 up until completion. The hallmark of AIAC SFC is continuity of works and working relationships.
The AIAC 2019 Standard Form of Building Contract and Sub-Contract (“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 are derived from the original 2017 Editions.
While retaining the original guiding principles set out in the original 2017 Editions, the 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 2018 and 2019 Editions.
The contracts in the suite of AIAC SFC are intended to serve as templates that 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.
*To obtain a copy of the earlier Editions, please contact firstname.lastname@example.org
|Removal of Distinction between With and Without Quantities||The AIAC 2019 SFC is a comprehensive and unified contract that does away with the need to distinguish between With and Without Quantities. Users can now customise the contract to meet their specific needs.|
|Contract Administrator (“CA”)||The AIAC 2019 SFC provides the Parties with the option to select a CA and 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 types of valuation as agreed between the Parties to provide better clarity.|
|Valuation Rules||The 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 SFC expanded 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 provisions of AIAC SFC on Nominated Sub-Contractors and Nominated Suppliers protect the rights of all stakeholders involved.|
|Synchronization with latest legislative regimes||The AIAC SFC incorporates the AIAC Arbitration Rules and the Arbitration Act 2005 (revised 2018) and provides 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.|