MALCONLAW now on Android

Malconlaw as launched the first version of its Android application to give you instant access to all the Malaysian Construction and Contract Law site content. We are currently working on developing the application to include lots more exciting features allowing users to always have access to the Malconlaw Free Resource. It available for download FREE on the Google Play Store.

FIDIC Red Book 1999 – The Force Majeure Clause

The definition of force majeure provided in the FIDIC Red Book 1999 Edition form in Clause 19 is widely drawn. Sub-Clause 19.1 defines a force majeure event as one:

A) which is beyond a Party’s control,

B) which such Party could not reasonably have provided against before entering into the Contract,

C) which, having arisen, such Party could not reasonably have avoided or overcome, and

D) which is not substantially attributable to the other Party…….. (more)

Overview of FIDIC Short Form

The FIDIC Short Form of Contract – Green Book was drafted as a minor works contract to complement the other standard forms in the FIDIC suite of contracts. Initially the Contract was drafted for simple works with a value of less than USD 500,000.00 however it has evolved and now it is used for non-complex works regardless of value as it is clearly the complexity of the works which will determine if the short form is appropriate or not. Currently no financial limited is stated within the standard form or its accompanying notes.

The Green Book continues to reflect the principles and allocation of risk between the parties as the FIDIC Red and Yellow Books. It allows for either lump sum or other pricing and allows for design by either the Employer or the Contractor. There is no Engineer as with the Red and Yellow Books, but the Employer may nominate his Representative which may or may not be a professional engaged to manage the Contract Works. As the name suggests the Short Form is much briefer than the more detailed Red and Yellow Books with only fifteen clauses and four thousand five hundred words compared to the thirty thousand plus, word count for the Red Book. (more)

Contemporary Records – FIDIC RED BOOK 4th EDITION

Clause 53 of the Conditions of Contract specifies the procedure which the Contractor must follow in the event that he intends to make a claim under the Contract. A variant of this clause is also included within the current editions of the FIDIC forms of contract and may also to be found in many other standard forms.

In the event that the Contractor intends to claim any additional payment under the Contract Clause 53 makes it a mandatory (more)

Procedure and Effects of Delayed Possession of Site under PAM 2006

Where the Employer fails to give possession of the site to the Contractor on or before the date stated within the Contract, it is a breach of contract and, if the failure to give possession continues for any significant time, it will be a material of the contract. This is because without possession of the site the contractor cannot execute the Works under the contract. All standard forms of contract used in Malaysia including PAM 2006, provide for a specific date for possession of the site. Failure to give possession of the site is a breach not only of the express terms of a contract but also a breach of a term that would be implied at common law in the absence of such an express term.

As a result of the Employers default in giving possession of site being a material breach of the contract, a protracted failure by the Employer to give possession of site, and any subsequent acceptance by the Contractor of the Employer’s breach, may entitle the Contractor to accept the repudiation and to commence an action for damages, which could include the loss of the profit that it would otherwise have earned. (See Wraight Ltd v PH&T Holdings Ltd [1968]). In Malaysia most Contractors would balk at taking such drastic action, but they may claim damages at common law for any loss actually incurred. (more)