Malaysian Reserve: Construction sector sees a higher number of dispute cases

Featured in the front page of the Malaysian Reserve today with a focus on addressing the rise of construction related disputes. Out of the 932 cases recorded by the AIAC the past year, 700 disputes were construction related. While Malaysia’s construction sector continues to flourish through billion-dollar mega infrastructure projects taking place across the country, rising disputes due to contracts clarity and payment avoidances have marred the sector’s growth affecting many parties and causing project delays. The disputed claims for adjudications as at the end of 2017 itself totalled to RM1.38 billion. Our detailed findings pinpoint poorly drafted contracts as the root cause of these disputes. This led to the Centre issuing its own suite of standard form of building contracts (AIAC’s SFC). We recently released our 2018 edition earlier this month, with a Design & Build version to be introduced shortly. More here; Contracting parties must ensure that the construction contracts template used reflects the needs of the present environment. Don’t miss our CIPAA Conference 2018 (7th May 2018), taking place on the 3rd day of our ADR Week 2018. Will be releasing our latest CIPAA Report and Stats. For more info & to register;