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ARTICLE · 07 MARCH 2024

Conditions Precedent In Construction Contracts

In most construction contracts, in particular the standard forms contract such as the PAM Contract 2018, AIAC Standard Form of Building Contract 2019,...

MalaysiaCorporate/Commercial Law

In most construction contracts, in particular the standard forms contract such as the PAM Contract 2018, AIAC Standard Form of Building Contract 2019, PWD Form 203A (Rev. 2007) and JKR Sarawak General Conditions of Contract, there would usually be a requirement to serve a written notice within a stipulated time from the occurrence of the event or circumstances that form the basis for applications for extension of time ("EOT"), claims for loss and expense and in some cases claim for additional expense caused by variation.

Failure of a contractor to comply with such condition precedent will inevitably render the contractor's EOT application or claim for loss and expense fatal. In the case of Sunissa Sdn Bhd v Kerajaan Malaysia & Anor [2020] MLJU 283, the High Court had to deal with the contractor's claim for loss and expense arising out of an extension of time granted for the completion of the works through no fault of the contractor, and where the Government's

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