MCC – GAMUDA JV Wins MRT Tunnelling Works

It has been reported that the joint-venture of MMC Corp Bhd and Gamuda Bhd has won the tunnelling and underground stations package for the Projek Mass Rapid Transit Lembah Kelang – Jajaran Sungai Buloh-Kajang with a bid in the region of RM 8.2 Billion. The Package comprises of 9.5km of tunnels and seven stations running from Semantan Portal to Maluri Portal.

It is understood that a procurement committee chaired by the Malaysian Prime Minister decided on award of the package to MMC-Gamuda JV based on its strengths in design, construction plant and tunnelling equipment, construction methodology and price.

It is reported that MMC – Gamuda JV price was 3.4 percent lower than the next lowest bid.


Liquidated Damages Explained – How to Calculate Them

This article explains what Liquidated Damages are how they are interpreted in the common law system generally and in Malaysia specifically. In addition it gives examples on the types of costs that should be considered when calculating the level of damages to be applied to a contract and the method of calculating these. Read More

Notices Provisions in Standard Forms – Explained

Whether you are a Contractor or a Consultant you will have to deal with standard contract forms contracts unless you happen to work for one of the larger property developers in Malaysia which have developed their own in-house company or bespoke contract forms. Whether a standard form or a bespoke contract it is more than likely that somewhere they will contain notice provisions and although these provisions do not generally attract so much attention of the parties as perhaps provisions detailing payment, termination, extension of time and liquidated and ascertained damages these provision in many circumstances must be adhered to for parties to be in a position to enforce their contractual entitlements or the other parties obligations under the Contract.

At this juncture it should be understood that a notice provision in a Contract is not the same as where a Contract includes the term notify; a requirement that one party must inform the other of a thing or matter. A notice provision is where the contract includes the term shall give notice (or something similar), which usually requires a formal written notice to be issued by one party and delivered to the other.

For example, a Notice to Proceed is a formal notice issued under many forms of industry-standard contracts. The issue of a Notice to Proceed is the confirmation that the contractor or supplier of a service is to start work. To proceed on the basis of simply being notified, which could be a phone call or even a text message, without a formal notice in writing, would be extremely risky for the Contractor. For the Employer too, such a notice is equally important because, by issuing the formal Notice to Proceed, he knows that, regardless of what discussions or communications he may have had with the Contractor they will only start work, and thereby incur cost to his account, once the Employer has issued the Notice to Proceed, and not before……(more)

Practical Completion – Explained (but not defined)

There have been numerous disputes which have centered on the issue of whether the construction Works have achieved Practical Completion or not. This is not at all surprising as most of the Standard Forms used in Malaysia of rely upon the issuance of a Certificate of Practical Completion to record when a project has indeed reached Practical Completion. The fact that the Certificate of Practical Completion is the document which also initiates such events as the release of the first moiety of retention, exclusion of liability for Liquidated and Ascertained Damages and changes in obligations in respect of insurance for the Works is by no means…(more)

Incorporation by Reference – Explained

First we shall address what is actually meant by the term ‘incorporation by reference’

It is a means by which the parties to a contract make reference to a document or publication be it a standard form of contract, technical specifications or similar publication without the need of having to retype the whole of that document in order for it to form part of the documentation which together form the contract between the parties. Incorporation by reference is not to be confused with an implied term because reference is made to a specific document or publication whereas implied terms are those which the courts introduce under common law or by reference to a statute where express terms are not so included within a contract but are required to give effect to the obvious intentions of the parties to the contract. (more)