Critical analysis of “doctrine of privity” in Malaysian construction industry

Critical analysis of “doctrine of privity” in Malaysian construction industry. Malaysian Construction Research Journal: RISM International Research Conference 2020, 9 (1): 9. pp. 103-113. ISSN 2590-4140 (2020)


Despite the rapid evolution of the norm, experts and law-makers still debate what should be the scope of bodies and rights covered, the scope of permissible exceptions to the right and even the scope of rights holders remain. Sanctity of doctrine of privity means giving recognition to the contractual framework with appropriate legislation. It is a general idea that once parties duly enter into a contract, they must honour their obligations under that contract. However, the issue of interpretation and application of this doctrine has been one of much controversy. The main issue in contention are the liabilities of parties when there is an agreement for direct payment by the employer to the sub-contractor. This paper examines the problems with privity of contract in Malaysian construction industry due to conflicting laws and lack of clarity of the Contracts Act 1950 which inflict additional legislative in various systems. From the review of primary data through legal journals and books, it divulged that there is lack of awareness and understanding among the construction industry key practitioners on the doctrine of privity in order to mitigate third parties claim. It also highlights the effect of contract of privity that will serve a platform for further research, honing and nuance comprehension of contractual management and governance in project.

Item Type: Article
Keywords: Construction contracts, Construction industry, Doctrine of privity
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 05:23
Last Modified: 15 Feb 2021 05:23
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