About AIAC's TEC

Starting in 2020, the AIAC engaged technology industry players in a virtual roundtable, which led to a survey to gauge the industry’s wants and needs. As a result of these two research initiatives, the AIAC decided to launch the AIAC Technology Expert Committee (TEC) with the aim of drafting standard form contracts related to technology. As a result, the TEC was formed, and the AIAC along with the TEC Members drafted the TEC Standard Forms – Software Development Contract (TEC SFs – SDC), the draft of which was showcased at the AIAC’s ASIA ADR WEEK 2021. The final TEC SFs – SDC is now freely available to download and use.

The purpose of the TEC is to spearhead initiatives related to ADR and the technology industry. The TEC aims to create a community in which lawyers and key players within the technology industry can discuss recent developments, brainstorm solutions to current issues, collaborate with one another on projects and disseminate information on the advancement both within ADR and the technology industry. The TEC activities will include publications of articles and white papers, creation of standard form contracts, promotional roadshows, opportunities to pitch new technology to end-users, evening talks, roundtables, discussions, seminars and workshops.

KEY FEATURES

Customizable and free
Provides a comprehensive contract with appendices that may be modified to fit the needs of the customer and developer – to find out more on customising the AIAC TEC SFs – SDC, see our video from the launch here
Incorporates checks and balances by including an option to have a supervising officer as well as clearly laid out project schedule and testing mechanisms
Clearly sets out accountability between customer and developer – to find out more on the rights and obligations of the customer and developer under the AIAC TEC SFs – SDC, see our video from the launch here
User-friendly platform for easy access to the contract
Clearly defines terms used in the contract
Allows parties to first opt into negotiation prior to a dispute being referred to arbitration – to find out more on the dispute resolution mechanisms under the AIAC TEC SFs – SDC, see our video from the launch here
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 contract

BENEFITS

Free of charge– AIAC TEC SFs – SDC is uploaded on its website. Interested users may download it for free for use.
Comprehensive Contract – Users may customise the SFs – SDC by selecting the relevant appendices to be used for their specific needs.
Option for a Supervising Officer – Allows the parties to appoint a supervising officer to oversee the development of the works under the contract.
Provides Transparency – Provides transparency with regard to the duties and obligations of the customer and developer, as well as specifies the IP rights and obligations involved when using third-party software and materials.
User-Friendly and Flexible– Sets out clearly defined terms in plain language to make the contract user-friendly as well as includes various appendices which can be modified.
Party Autonomy– 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.
Continuity of Projects – Includes 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.

The Suite of Contracts

2021 TEC Standard Form

Contract

On 19th November 2021, the AIAC’s Tech Expert Committee (“AIAC TEC”) launched its Standard Forms – Software Development Contract (“SFs – SDC”). The AIAC TEC SFs – SDC aims to provide an easy-to-use and helpful template, encompassing the best industry practices and ensuring that the rights and obligations of the stakeholders involved are balanced.

To find out more about the AIAC TEC SFs – SDC, watch the videos from the launch above and in the Key Features section. In addition, a written interview on the key features and how to customise the SFs – SDC is in the AIAC’s Newsletter December 2021 #03, which can be found here, pg 9 – pg13.

For any questions, please contact

Removal of Distinction between With and Without Quantities	The AIAC 2019 TEC 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 TECs 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 TEC 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 TECs 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 TECs’ provisions on Nominated Sub-Contractors and Nominated Suppliers protect the rights of all stakeholders involved.
Synchronization with latest legislative regimes	The AIAC 2019 TECs 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.

We want to hear from you!

if you have any questions, comments or general feedback on AIAC TEC SFs – SDC, 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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About AIAC's TEC

KEY FEATURES

BENEFITS

The Suite of Contracts

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We want to hear from you!

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