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About AIAC's SFC
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.
- Customizable and free
- Creates unified single contract that merges both With and Without Quantities
- Incorporates checks and balances mechanism through introduction of the Contract Administrator
- Clearly sets out accountability between Employer and Contract Administrator
- User-friendly platform for easy accessibility of the Contract
- Enhances clarity of the terms used in the Contract.
- Synchronizes the power of the arbitrators in line with the AIAC Arbitration Rules and the Arbitration Act 2005.
- Provides adaptability to the latest tax regime.
- Expands the protection of the interest of the relevant stakeholders.
- Upholds party autonomy
- Stipulates specific time periods for parties to carry out obligations under the SFC
- Addresses bribery and corruption
- Free of charge– AIAC SFCs are uploaded on its website. Interested users may download it for free for use, and have the liberty to customize the contracts according to their specific needs.
- Unified Contract– Users no longer have to distinguish between adopting With and Without Quantities as the AIAC 2019 SFC Building Contract are structured as a single contract.
- Introduction of Contract Administrator– Incorporate checks and balances mechanism and empowers the responsibility vested on the Contract Administrator in the AIAC 2019 SFCs.
- Greater transparency– The AIAC SFCs provide greater transparency with regard to the duties and obligations of all parties concerned, e.g. the Employer, Contractor, Nominated Sub-Contractor, Contract Administrator (2019) and Consultant, which aims to enhance trust and better working relationship between all parties.
- Enhanced Clarity– Fill 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 2019 SFCs. This will avoid deadlocks and ultimately promote smooth progress of the Works.
- 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– AIAC 2019 SFCs uphold the agreement of the parties and allows the parties to decide and create clear contractual arrangements to promote efficiency based on consideration in a case-by-case basis.
- CIPAA Compliant– AIAC SFCs have taken into account the provisions of CIPAA 2012, and their effect on contract management as well as 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– AIAC SFCs have included provisions against bribery and corrupt practices, and reinforces the principles of integrity in the implementation of construction projects.
The Suite of 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 sfc@aiac.world.
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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
- T : +603 2271 1000
- F : +603 2271 1010
- E : sfc@aiac.world