Recommendations for Malaysia's'Construction Industry Payment and Adjudication Act'.
Institution of Surveyors Malaysia (ISM)-leading working group (WG 10) has a vision that could be summarized as:
'payment in the construction industry is timely' - where everyone in the construction industry pays the appropriate amounts due in a timely manner.
Due to the characteristic of construction industry, the size and duration of the project and payment terms differentiate the industry from the others.
We hereby would like to discuss a few major considerations which meet the needs of the current scenarios to eliminate payment defaults in our country during the process of mentioned Act enactment. For the number of 12 provisions as we had studied and discussed before, we summarized it and conclude it under 12 headings as below:
Scope of construction contract
As the definition of construction by Malaysia Industrial Classification 1972 (updated 1979), itself consists of two major components, which are activities and products.
(Ofori, 1990) We interpret that the 'industry' itself is actually a group of economic activities classified according to the type of goods or services supplied. Therefore the act applies to the construction industry should includes not only activities and product, but also services to make it understandable and yet, comply with the definition of the definition of 'construction industry'.
We propose that Singapore Act could be use as our reference for this provision because there is a clause clearly stated that the act applies to the construction activities carried out in SINGAPORE. We need to have it because for some building materials, we are still importing from the other countries. In case anything happens, we have such provision to resolve the disputes between local contractors with foreign suppliers as long as the work is done locally.
And, never should we forget that out...