AIAC standard form building contracts for construction industry in Malaysia: 2019 update

Takeaways

The Asian International Arbitration Centre’s (AIAC) standard form contract (SFC) initiative is a first of its kind in the arbitration arena. Broadly speaking, it is an attempt to guide parties through issues and gaps in existing SFCs in Malaysia, and to entice them to resolve any disputes with the AIAC.

Key features – among others – include enhanced clauses with respect to delay events, insurance obligations, work programme and progress reports, and a simplified definition of practical completion.

Parties are currently able to access samples of five types of SFC:

• 2019 Main Contract (MC)
• 2019 Sub-Contract (SC);
• Minor Works Contract (MWC);
• Design and Build Contract (DBC); and