Assessing the Malaysian standard form of contract in relation to the current construction dispute and dispute resolution

Assessing the Malaysian standard form of contract in relation to the current construction dispute and dispute resolution. Malaysian Construction Research Journal: RISM International Research Conference 2020, 9 (1): 13. pp. 151-161. ISSN 2590-4140 (2020)



Abstract

Construction dispute in the construction industry is a common issue and keep on increasing not only in Malaysia but in other countries. In Malaysia, many initiatives done by the government, stakeholders and standard form of contract committee advisor to overcome the problem of construction disputes. Thus, the objective of this paper is to identify the most frequent construction dispute occurred in relation to the Malaysian standard form of contract and to investigate the most effective dispute resolution expressed in the Malaysian standard form of contract preferred by the industry players. An observation of Malaysian court cases from 2015 to 2016 and semi-structured interview of 18 experts have been conducted and analyzed using content analysis to achieve the objectives of this paper. From an observation of 85 court cases (2015 to 2016), it can be concluded that 41.18% (35 cases) of payment disputes and 36.47% (31 cases) of contract disputes were marked as the most frequent disputes occurred in the construction industry. The results were supported by a semi-structured interview of 18 experts, where payment of work done (33%) and extension of time (60%) were marked as the most frequent construction disputes occurred in the construction industry. Based on the findings of the most preferred dispute resolution, 56% of the respondents opted for arbitration because it was clearly written in the Malaysian standard form of contract. Adjudication (33%) also referred to as the most effective dispute resolution in-term of cost and
time as CIPAA act allows claimant to claim at any time of the dispute occurred compared to arbitration.

Item Type: Article
Keywords: Construction dispute, Malaysian standard form of contract, Dispute resolution, Content analysis
Taxonomy: By Subject > Architecture, Planning & Surveying > Construction Management
Local Content Hub: Subjects > Architecture, Planning & Surveying
Depositing User: Eza Eliana Abdul Wahid
Date Deposited: 15 Feb 2021 03:55
Last Modified: 15 Feb 2021 03:55
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