10 Dec CCC MLJ Article as published (February 2008)

Delivery of a construction project is a process requiring the involvement of many parties. Apart from the developer and purchasers, there are a host of contractors, consultants and regulatory authorities. There are normally matters of considerable technical difficulties generated in the course of the actual works.

The Certificate Of Fitness for occupation problem

In particular, the housing sector has been plagued by many problems. A perpetual complaint relates to the issue of the Certificate of Fitness for Occupation as issued by local authorities (See s 3, The Street, Drainage & Building Act 1974 (Act 133) and the Uniform Buildings By-Laws for definition of the Certificate of Fitness for Occupation (‘CFO’).

It is a normal occurrence that many developers give vacant possession without the CFO being issued. This has caused considerable difficulties to house buyers for such vacant possession does not mean beneficial takeover and ability to use of the relevant building lawfully.

The situation is no better even for commercial buildings and industrial premises. Disgruntled purchasers have complained to the Ministry of Housing & Local Government (‘MOHLG’) and other governmental authorities whenever there was delay or failure to issue CFO by local authorities. Such complaints have even been directed to activist consumer and non-governmental organisations such as the Consumer Association of Penang and FOMCA.