• Standard form for building contract issued easily by AIAC for free
    Standard form for building contract
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    About AIAC's SFC

    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.

    • Customisable and free.
    • Stipulates specific time periods for parties to carry out obligations under the AIAC SFC.
    • Creates a single unified contract that merges both With and Without Quantities (AIAC 2019 SFC).
    • Incorporates checks and balances mechanism through the introduction of the Contract Administrator (AIAC 2019 SFC).
    • Clearly sets out accountability between the Employer and the Contract Administrator.
    • User-friendly platform for easy access to the Contract.
    • Enhances clarity on the terms used in the Contract.
    • Synchronises the power of the arbitrators in line with the AIAC Arbitration Rules and the Arbitration Act 2005 (revised 2018).
    • Provides adaptability to the latest tax regimes.
    • Expands the protection of the interest of the relevant stakeholders.
    • Upholds party autonomy.
    • Addresses bribery and corruption.
    • Free of Charge– The AIAC SFC is free to download on its website for interested users, who also have the liberty to customise the contracts according to their specific needs.
    • Greater Transparency – The AIAC SFC provides greater transparency with regard to the duties and obligations of all parties concerned, e.g. the Employer, Contractor, Nominated Sub-Contractor, Contract Administrator (AIAC 2019 SFC) and Consultant, which aim to enhance trust and better working relationship between all parties.
    • Enhanced Clarity– Fills the gaps and creates a user-friendly platform to provide procedures that deals with practical contract issues during the execution of the Works through easy accessibility of the AIAC SFC. This will avoid potential deadlocks and ultimately promote the smooth progress of the Works.
    • Latest Legislative Synchronisation– The AIAC SFC has taken into account the provisions of the AIAC Arbitration Rules and the Arbitration Act 2005 (revised 2018) and their effect on dispute resolution as well as powers of the arbitrators. Further, the AIAC SFC allows for the adaptability of the latest tax regime.
    • Reinforces the Interest of the Parties– The AIAC SFC includes provisions that cater and tend to the interest of the parties on the ground, such as broadening the spectrum of the Non-Employer’s events, granting the Sub-Contractor and the Supplier the right to request for Final Payment and emphasising the consequence of contract termination.
    • Latest Legislative Synchronization– AIAC 2019 SFCs have taken into account the provisions of AIAC Arbitration Rules and the Arbitration Act and their effect on dispute resolution as well as power of the arbitrators. Further, the AIAC 2019 SFCs allow for the adaptability of the latest tax regime.
    • Reinforces the Interest of the Parties– AIAC 2019 SFCs have included provisions to cater and tend to the interest of the parties on grounds such as broadens the spectrum of the Non-Employer's events, grants the Sub-Contractor and the Supplier the right to request for Final Payment and emphasizes the consequence of contract termination.
    • Party Autonomy– The AIAC SFC upholds the agreement of the parties and allows the parties to decide and create clear contractual arrangements to promote efficiency based on consideration on a case-by-case basis.
    • CIPAA Compliant– The AIAC SFC takes into account the provisions of CIPAA 2012, and their effect on contract management as well as the duties and obligations of the parties in relation thereto.
    • Greater Focus on Continuity of Projects– Enhanced provisions to prevent deadlocks and reduce conflict during, and after completion of the Works. Provides options where rights are infringed, offering greater protection for all.
    • Reinforces the Principles of Integrity– The AIAC SFC has included provisions against bribery and corrupt practices, and reinforced the principles of integrity in the implementation of construction projects.
    • Unified Contract – Users no longer have to distinguish between adopting With and Without Quantities as the AIAC 2019 SFC are structured as a single contract.
    • Introduction of Contract Administrator – The AIAC 2019 SFC incorporates checks and balances mechanism through the powers and responsibilities vested in the Contract Administrator.

    The Suite of Contracts

    2019 Main

    Contract

    2019 Sub

    Contract

    Minor Works

    Contract

    Design Build

    Contract

    Design Build Sub

    Contract

    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 sfc@aiac.world

    We want to hear from you!

    if you have any questions, comments or general feedback on AIAC’S SFC, do reach out to us here to help us better serve you.

    • AIAC, BANGUNAN SULAIMAN,
    • JALAN SULTAN HISHAMUDDIN,
    • 50000 KUALA LUMPUR, MALAYSIA

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