PERTUBUHAN AKITEK MALAYSIACPD Continuing Professional Development Seminar 7th May 2011 Falkuti Alam Bina University Malaya Kuala Lumpur THE ARCHITECT’S ROLES & RESPONSIBILITIES UNDER THE HOUSING DEVELOPMENT ACT (ACT118) & RELATED REGULATIONS 1. INTRODUCTION 1.1. Overview of the housing delivery process 1.2. Housing Development Act and related Regulations MANAGING DURING CONSTRUCTION 2.1. Work Progress Certification 2.2. Managing Quality MANAGING CHANGE 3.1. Changes & Variation Orders 3.2. Extensions of Time MANAGING DEFECTS & COMPLAINS 4.1. Common Defects & Complains 4.2. Sources of Success in Development 2. 3. 4. Ar Chan Seong Aun M Arch (Distinction), B Arch (Hons), B Bdg Sc (NZ), APAM, AIPDM, TAM 1. INTRODUCTION 1.1 Overview of Housing Delivery Process The current development approval process in Malaysia is a two stage process consisting of 1. Planning approval and 2. Building Plan approval and cumulating in the issuance of the Certificate of Completion and Compliance (CCC) or certificate of fitness for occupation (CFO) upon completion of the development. With the introduction of the OSC and CCC in 2007 however, all the processes are supposed to be run in parallel. In reality however, many Local Authorities still insist that the land conversion and planning approvals be obtained first before they are willing to accept the building plan submission. In order for the delivery process to be orderly and transparent, it must fall back on a set of laws. For a typical housing development, there are more than a dozen laws and regulations to comply with. 1. National Land Code (Act 56) 1965 2. Town & Country Planning Act 3. Environmental Quality Act 1974 4. Drainage Works Act (Act 354), (Revised 1988), 1954 5. Sewerage Services Act 6. Street, Drainage & Building Act (Act 133), 1974 7. Uniform Building By-Laws 1984 8. Housing Developers (Control and Licensing) Act 1966 (Act 118) 9. Housing Developers (Control and Licensing) Regulations 1989 10. Housing Developers (Housing Development Account) Regulations 1991 11. Housing Developers (Control and Licensing) (Amendment) Act 2002 12. Housing Developers (Control and Licensing) (Amendment) Regulations 2002 13. Housing Developers (Housing Development Account) (Amendment) Regulations 2002 14. Strata Titles Act 1985 (ACT 318) 15. Strata Titles (Federal Territory of Kuala Lumpur) Rules 1988 Are there too many laws? Certainly not. The more rules and regulations there are, the clearer the delivery process to all involved. Why then is there a lack of compliance? This is believed to be due to a lack of understanding of the core reasons these laws were passed. The key reasons for planning laws are to ensure orderly and managed development and to protect our environment for future generations. The key objective of the uniform building by-law is protection of public safety and health. The main reason for the Housing Developer’s Licensing Act is to define & control housing development in Malaysia. It is this ignorance and lack of understanding of these key objectives that leads to attempts by Developers to bend the law and Local Authorities to impose regressive rules which are not Page 2 explicitly listed in the original laws anyway. the Architect now has to assume the additional duties due to the powers conferred on him by the Standard Sales and Purchase Agreement 1. The Architect is required to certify draw down of the Housing Development Account. It is therefore vital for all involved in the delivery process – both Developers and Local Authorities .Acts / Regulations Housing Developers (Control and Licensing) (Amendment) Act 1977 Housing Developers (Control and Licensing) (Amendment) Act 1988 Housing Developers (Control and Licensing) (Amendment) Regulations 1994 Housing Developers (Control and Licensing) (Amendment) Regulations 1995 Housing Developers (Control and Licensing) (Amendment) Regulations 1996 Housing Developers (Control and Licensing) (Amendment) Regulations 1998 Housing Developers (Control and Licensing) Act A402 Act A703 PU(A) 358/1994 PU(A) 34/1995 PU(A) 358/1996 PU(A) 446/1998 Act A1142 10 June 1977 1 December 1988 01 August 1994 01 August 1994 01 August 1996 12 November 1998 01 December 2002 Page 3 . the Act has entrusted certain duties and responsibilities to the Professional Architect.to align their thinking and actions to the those of the key objectives of these laws. 1. In view of this. The Architect is required to certify completion of various stages of works in the Standard Sales and Purchase Agreement between the Purchaser and Developer. if we want to see any significant improvement in our delivery process . 1991 Housing Development (Tribunal for Homebuyer Claims) Regulations 2002 Housing Development (Compounding of Offences) Regulations 2002 PU(A) 58/1989 PU(A) 231/1991 PU(A) 476/2002 PU(A) 475/2002 In force from 01 April 1989 26 August 1991 1 December 2002 1 December 2002 Amendments . 2.2 Housing Development Act and related Regulations Principle Act: Housing Development (Control and Licensing) Act 1966 Act 118 Regulations: Housing Development (Control and Licensing) Regulations 1989 Housing Developers (Housing Development Account) Regulations. Although the key reason for the Housing Development Act is to control the housing development process. (Amendment) Act 2002 Housing Developers (Control and Licensing) (Amendment) Regulations 2002 Housing Developers (Housing Development Account) (Amendment) Regulations 2002 Housing Development (Control and Licensing) (Amendment) Regulations 2003 Housing Developers (Control and Licensing) (Amendment) Regulations 2002 .Corriegendum Housing Developers (Control and Licensing) (Amendment) Act 2007 PU(A) 473/2002 PU(A) 474/2002 PU(A) 226/2003 PU(A) 42/2003 Act A1289 01 December 2002 01 December 2002 01 December 2002 07 February 2003 15 February 2007 Bills: Building and Common Property (Maintenance and Management ) Bill 2006 Housing Development (Control and Licensing) (Amendment) Bill 2006 12 April 2007 12 April 2007 STRATA TITLES ACTS Principle Act: Strata Titles Act 1985 (ACT 318) Amendment Acts / Law: Strata Titles (Amendment) Act 1990 Act A753 In force from 23 February 1990 Strata Titles (Federal Territory of Kuala Lumpur) (Amendment) Rules 1995 PU(A) 22/1995 20 January 1995 Strata Titles (Amendment) Act 1996 Act A951 02 August 1996 Strata Titles (Amendment) Act 2001 Strata Titles (Amendment) Act 2007 Act A1107 Amendment Act A1290 01 December 2001 [PU(B)560/2001] 12/04/2007 RULES: Strata Titles (Federal Territory of Kuala Lumpur) Rules 1988 Federal Territory of Putrajaya (Modification of Strata Titles act 1985) Order 2002 PU(A) 164/1988 23 April 1988 PU(A) 503/2002 27 December 2002 Page 4 . Strata Titles (Federal Territory of Putrajaya) Rules 2003 PU(A) 5/2003 09 January 2003 Bills: Strata Titles (Amendment) Bill 2006 12 April 2007 HOUSING DEVELOPMENT (CONTROL & LICENSING) ACT 1966 The following parts will have impact on Architects. Part I defines what is “housing development” – more than 4 lots Part II requires Developers to be licensed and minimum paid up capital Part III defines the basic duties of a housing developer including the opening and maintenance of the Housing Development Account Part IV Investigation and enforcement Part V Powers of Minister to give directions to safeguard the interest of purchasers Section 13A Controller to report the conduct of and Architect or Engineer Part VI Tribunal for Home Buyers Claims Part VII Miscellaneous covers fines for offences and liability of directors. managers and other officers Section 24 empowers the Minister to make regulations Page 5 . If changes or deviations involve the substitution or use of cheaper materials or omission of works. introduced the Housing Development (Control and Licensing) Regulation 1989.HOUSING DEVELOPERS (CONTROL & LICENSING) REGULATIONS 1989 In 1986 when the Malaysia economy went into recession. Regulation 11 – standard contract of sale – required that the Standard Sales and Purchase Agreement (Schedule G & H) must be used. Schedule-G Standard Sale and Purchase Agreement for land and building Clause 4 – Schedule of Payment Part 1 Installment payments in the time and manner set out in Third Schedule of the SPA Part 2 Notice to purchaser supported by certificate signed by vendor’s Architect or Engineer and this shall be sufficient proof of completion Clause 13 – Position and area of the lot Part 2 states Vendor may claim up to maximum 2% deviations. fixtures and fittings 2. Of interest to Architects are the following regulations. purchaser is entitled to corresponding reduction in price or damages. Part 4 No alterations are allowed Clause 14 – Materials and workmanship to conform to description Building to be constructed in a good workmanlike manner Note 1. The problems caused by one sided agreements and terms of sales were reviewed by the then Minister of Hosuing and under the powers contained in section 24 of the Act. many Developers faced financial difficulties resulting in abandoned housing projects and projects never starting construction despite having been sold. No changes or deviations without the written consent of the purchaser except as required by appropriate authority 4.the specifications of finishes. Approved building plans as in Second Schedule – Key document is the approved building plans 3. Page 6 . Building description as set out in Fourth Schedule . Developer has to apply for strata title at his own cost. Clause 27 – Completion of common facilities Page 7 . Architect is required to certify that the parcel was constructed according to the approved plans. This will become relevant if the purchaser makes changes after the CFO/CCC is issued but Strata Title is not issued yet as it will involve significant work by the Architect to re-submit plans for building plan approval. Clause 15 – Restrictions against variation by the Purchaser. Clause 25 – Time for delivery of vacant possession 36 months instead of 24 months for landed properties. Developer has to compensate the purchaser if the area of the parcel is smaller by more than 2 percent but not allowed to claim if parcel is constructed larger. Under clause 9(b) of the Strata Titles Act.Clause 15 – Restriction against variation by purchaser. Different from schedule-G. the main points of interest to Architects are as follows. Clause 11(1) – Separate Strata title and transfer of title. Schedule-H Standard Sale and Purchase Agreement for sub-divided building In addition to the above for sub-divide buildings. Until after CCC/CFO Clause 16 – Restriction against change of colour scheme Clause 21 – Compliance with written laws. Clause 13 – Position and area of parcel. Architect has to ensure compliance with UBBL and Street Drainage Building Act Clause 19 – New laws affecting housing development Developer to absorb any additional costs Clause 19 – Time for handing over of vacant possession 24 months for landed property Clause 21 – Manner of delivery of vacant possession Clause 20 – Defects liability period 24 months from date of handing over vacant possession. d) Insurance premiums and Professional Fees e) Cost for the following : Soil investigation. caveat.Completion of common facilities is also 36 months. assessment levied on the land b) Stamp duty on charges. debenture. I hereby certify that the following amounts are still needed to satisfy the Developer Obligations:An amount needed to comply with conditions of Certificate of Fitness Architect (a) Page 8 . relocation of squatters. DEPOSITS Developer has to deposit the following into the Housing Development Account a) All installments of purchase price b) Any loans for the construction c) Interests obtained from the above WITHDRAWALS This is permitted only for purposes prescribed in Regulation 7 as follows a) Payments of quit rent. building. rates taxes. After the issuance of the CCC and upon handing over of vacant possession. foundation. HOUSING DEVELOPERS (HOUSING DEVELOPMENT ACCOUNT) REGULATIONS 1991 Purpose is to ensure the interests of Purchasers are protected. This is done in the Second Schedule. other works f) Contributions to water and electricity supply g) Charges to Government departments h) Refund of progress payments i) Interest on loans and other financial charges j) Capital sums to redeem loans on land purchases k) Payment of cost of land l) Capital sum to redeem loans for construction m) Administrative expenses up to a maximum of 10% of total construction cost n) Taxes on the development o) Other reasonable expenses upon written approval of the Controller of Housing Any withdrawals for purposes of construction must be supported by a certificate issued by the Architect or Engineer in charge of the housing project. 2. infrastructure works. earthworks. external works. guarantee or memorandum of deposit of title c) Legal fees for SPA. caveat. guarantee or memorandum of deposit of title or other matters. charges. survey works. the Developer may withdraw any surplus monies subject to the following. It is important that the Architect clearly define what is included in the common facilities for phased completion. debenture. (Where Temporary Certificate is issued) (b) (c) An amount needed to obtain separate Document of Title An amount needed for the cost and expenses of maintaining. up keeping and repairing the areas reserved for roads. open spaces. Part VI Section 16U(2) of main Act states that no party shall be represented by an advocate and solicitor unless in the opinion of the Tribunal the matter in question involves complex issues of law. An amount needed to rectify any defects. penalties or looses incurred by reason of any breach of the provision of any written law relating to the Housing Development. electricity substation. An amount needed to keep purchasers Indemnified against fines. or other faults in the said Building. Any other cost which has not been spelled out. Awards where practicable to be made in 60 days. as above which the architect may deem necessary. shrinkages. until the same is taken over by the Appropriate Authority. Proceeding open to public. which may become apparent within a period of twelve (12)/ eighteen (18) months after the date of handing over vacant possession (which amount should be in addition to the amount held by the Developer’s Solicitor as stakeholder. Awards final and binding. Page 9 .) An amount needed as outstanding Developer’s solicitor’s cost. Balance may deem necessary Balance of payment to contractor Balance of payment to consultant Total (a) to (h) Add 10% for the contingencies and inflation Surveyor Developer QS (d) Developer (e) Architect QS (f) (g) (h) Lawyer Developer Developer Architect Architect QS Consultants Architect HOUSING DEVELOPERS (TRIBUNAL FOR HOUSE BUYER CLAIMS) REGULATIONS 2002 This is the venue for house buyers to make claims against Developers without engaging Lawyers. septic tanks and other communal amenities. The Tribunal shall hear any claim brought by a homebuyer not later than twelve months from the date of issuance of the certificate of fitness for occupation for the housing accommodation or the expiry date of the defects liability period as set out in the sale and purchase agreement. Criminal penalty for failure to comply. Administrative expenses. 1 Work Progress Certification CHECKLIST FOR HOUSING CERTIFICATION • Assist the Developer to prepare S&P schedules to ensure they are not different from the contract documents between Developer & Contractor • Get a copy of the S&P and check against approved building plans and contract documents especially dimensions and floor areas • Check against Lembaga Arkitek Malaysia Circulars 1/2001. Also check that the number and type of electrical points match those in the tender or contract documents. checked and accepted by the Appropriate Authority Page 10 . Many complains have been lodged against Architects for wrongly certifying this stage and have been reprimanded and fined by LAM Professional Architect’s Role for Stage 3 Issue a certificate certifying that the said building has been duly constructed and completed in accordance with the relevant Acts. 4/2003 and 4/2003 (Revised 2005) • Check to ensure the S&P is within the Housing Developer Housing Act. and regulations and that all conditions imposed by the Appropriate Authority in respect of the issuance of the Certificate of Fitness for Occupation have been duly complied with NOTE It is the Vendor’s responsibility to obtain a letter of confirmation from the Appropriate Authority certifying that Form-E as prescribed under the Second Schedule to the Uniform Building By-laws 1984 has been duly submitted . CERTIFICATION FOR VACANT POSSESSION – STAGE 3 This is the Most critical stage of Certification for the Architect must check strictly that ALL items listed as “Works to be Completed” must be fully complied.Before and after the 1st December 2002 • Check the mirroring of terraced houses are properly shown in the S&P the Lawyers are using • Check that the correct plans for the corner and end units are being used as well as the specifications as corner unit specifications may differ from the standard or intermediate units. by-laws. MANAGING DURING CONSTRUCTION 2. Commercial properties such as Service Apartments are not covered under the act and these guidelines do not apply • Check finishes against those listed in the Tender / Contract Documents to ensure the finishes and sanitary fittings match.2. • Ensure the correct version of the S&P Agreement is being used . 1/2001 (Revised 2002). Architect has issue Stage 3 Certificate that construction of the building has been duly completed with water and electricity supply ready for connection 2.Quality Standards for Architectural works Guides to Standards and Tolerances – Victoria Building Commission.2 Quality of finishes & Section 6.Purchaser has performed and observed all terms and convenants on his part under the S&P 2. Concrete materials.2.Vendor has applied for issuance of CFO from Appropriate authority – Borang-E has been accepted by Local Authority 3.2 Managing Quality QUALITY STANDARDS FOR ARCHITECTURAL WORKS Determining what is acceptable quality for architectural finishes is often difficult as there is the “arbitrary” or “subjective” dimension to all decisions. specification and construction – Section 6. Australia ISO 1803 :1997 – Building construction – Tolerances – Principles & terminology Page 11 . Although there are a few hundred Malaysian Standards available for the Building Construction industry this is very far short of the 6. we have to fall back on industry-accepted norms. CIS7 and CONQUAS21 do list some quality standards for architectural works.000 standards required for a comprehensive reference base on which to determine proper standards.CONDITIONS TO BE COMPLIED BEFORE VACANT POSSESSION CAN BE GIVEN 1.Purchaser has paid al monies due under clause 4(1) in accordance with the 3rd schedule 4.8 Dimensional deviations QLASSIC Section 4 – Quality Standards for Architectural works CONQUAS21 – Appendix 2 .2. which are often listed as standards. They are however not widely accepted and Architects have to fall back on their specifications to determine standards for finishes.7. • • • • • BS 8110 : Part 1 1997 Section 6. Malaysian Standards for architectural finishes are even fewer – less than 10. In order to remove this subject “subjectiveness” dimension. Listed below are some references for sourcing tolerances for architectural works standards. ELEMENT STANDARDS Finished concrete All surfaces should not have cracks All cross-section dimensions must conform to structural drawings Openings for services must conform to specified size and location Structural column vertical alignment Structural slab horizontal alignment Cast in place concrete elements Minimum finished concrete cover Pre-cast Concrete Length Up to 3m 3m-4.5m-6m Add for every additional 250mm Straightness or bow Up to 3m 3m-6m 6-12 Add for every additional 6m Floor Finishes Cracks Evenness Staircases Tile finishes butt width Lippage between 2 tiles TOLERANCE SOURCE Max 0.3 mm 10 mm Size 10 mm Location 25 mm 3mm/1m max 20mm 10mm 10mm 3mm CIS7 CIS7 CONQUAS CIS7 CIS7 CIS7 CIS7 CIS7 BS8110 BS8110 6mm 9mm 12mm 6mm BS8110 6mm 9mm 12mm 3m BS8110 6mm 9mm 12mm 6mm Width 0.3mm CIS7 Length 200mm 3mm per 1.5m 4.2m CIS7 CONQUAS 5mm CIS7 CONQUAS 2mm-4mm CIS7 1mm CIS7 CONQUAS Page 12 .5m-6m Add for every additional 6m Cross section Up to 500mm 500mm-750mm 4.TOLERANCES FOR ARCHITECTURAL WORK Listed below are tolerances of key architectural elements extracted from the above sources. Internal Walls Evenness Verticality Walls at right angle Plastering Tiling – lippage between 2 tiles Ceiling Finishes Cracks Evenness 3mm per 1.2m 2mm-4mm 10mm CIS7 CONQUAS CIS7 CONQUAS CIS7 CONQUAS Doors Gap between door leave & frame Windows Gap between window leave & frame 5mm CIS7 CONQUAS CIS7 CONQUAS 5mm Roof Flat roof ponding Flat roof cracks Gutter Fixtures & Fittings Location Less than 3mm Width 0.3mm Length 200mm 3mm CIS7 CONQUAS CIS7 CIS7 25mm CIS7 Page 13 .2m 3mm per 1m 4mm over 300mm 3mm per 1.2m 1mm CIS7 CONQUAS CIS7 CONQUAS CIS7 CONQUAS CIS7 CONQUAS CIS7 CONQUAS Width 0.3mm CIS7 Length 200mm 3mm per 1.2m CIS7 CONQUAS External Walls Verticality Tile finishes butt width Facing brickworks = joint pointing 3mm per 1. This is an implied duty of the Architect and not specifically stated. There is no mention of the role of the Architect in the Standard S&P that he has to decide on quality of workmanship.” It would appear that the quality of workmanship is tied to two documents as follows. The following are the implications. Note that any changes to the approved Building Plans after the S&P have been signed does NOT entitle the Developer / Vendor to claim for any increase in his sale price.in the event that the changes or deviations involve the substitution or use of cheaper materials or the omission of works originally agreed to be carried out by the by the Vendor the Purchaser shall be entitled to a corresponding reduction in the Purchase Price herein or to damages as the case may be.except changes as may be required by the Appropriate Authority. 2. Any down grading.shall be constructed in a good and workmanlike manner in accordance with the description set out in the Fourth Schedule and in accordance with the plans approved by the Appropriate Authority…. The works as described in the Third Schedule shall be DEEMED COMPLETED under this contract upon issuance of the certificate by the Architect How then are quality issues decided upon in the Standard S&P agreement? Clause (14) Materials and Workmanship to Conform to Description states “…. although it can be reasonably assumed that the Architect would only certify for works that have been completed to a “reasonable” standard. the S&P does not empower the Architect to make the final decision on quality 3. Unlike the PAM98 form of Contract. “plans approved by the Appropriate Authority” would obviously refer to the approved building plans.ROLES & RESPONSIBILITIES OF THE ARCHITECT FOR QUALITY UNDER THE STANDARD SALES & PURCHASE AGREEMENT FOR HOUSING According to the Standard Sales and Purchase agreement for housing in Malaysia between Developers and House buyers. including downgrade in quality. the role of the Architect is only to certify for completion of works according to the Third Schedule (Clause 4(1)) of the said agreement. 2. Clause 4(2) states “Every notice referred to in the Third Schedule requesting for payment shall be supported by a certificate signed by the Vendor’s Architect or Engineer in charge of the housing development and every such certificate so signed shall be proof that the works therein referred to has been completed” The conclusions that can be drawn for this are as follows 1. 1. entitles the Purchaser to a corresponding reduction in the purchase price. The FOURTH SCHEDULE which for almost all cases is so vague that no reasonable conclusion can be drawn regarding quality. Page 14 . There is no reference to any Standard or to more detail specifications. The purchaser shall not be liable for such changes…. These are listed in the following by-laws. By-law section 3(1)(c) 5 Responsibility Bear the certification of the qualified person………….by-laws for which they are respectively responsible ……qualified person or any person authorized by him undertakes the supervision of the erection and the setting out. there is no directly implied responsibility for the quality aspect of the building. Decision of Tribunal to be final.they accept full responsibility for those portions for portions which they are respectively concerned with….Tribunal for House buyers Claims – Claims up to RM 25.E There is therefore little doubt regarding the responsibility of the Architect in respect of the UBBL 1984. Based on the above.• • • • • The Housing Developer Act needs to be upgraded to refer the Fourth Schedule to more detailed specifications and Standards.D. Is there however an implied responsibility for the QUALITY of the works completed? UBBL in itself does not mention quality requirements and so long as the quality of the building element does not affect the “safety and health” aspect of the building. where applicable of the building The qualified person submitting the plans shall be responsible for the proper execution of the works……… …. This is covered by Section 16(a) – 16(i) of the Housing Developers Act .C. Architects should freeze their design and the building plans as soon as the first S&P is signed as any upgrades to the BP do NOT entitle the Developer to a corresponding increase in price but any downgrades entitles the Purchaser to a corresponding decrease in the sale price. The Architect does not have the powers under the standard S&P to make the final decision regarding quality. the Board of Architects does not hold the Architect responsible for workmanship quality under the Standard S&P for housing and therefore any complains against Architects regarding housing quality are referred back to the Developer or for the Purchaser to take up with the Tribunal for House buyers – which is the final decision maker with regards to Housing Quality. The approved Building Plan is a very important point of reference as far as quality is concerned. ROLES & RESPONSIBILITIES OF THE ARCHITECT UNDER THE UBBL The UBBL 1984 hold the qualified person – The Architect in this case – for the building for which the person has submitted the plans.000. Criminal penalty for failure to comply. Page 15 . I certify and accept full responsibility……… 7(1) 25(1)(a) Borang-A. but unfortunately most Architects do not specify quality in their plans preferring to describe it in their “Specifications” which do NOT form part of the S&P agreement.they have supervised the erection of the building……constructed in accordance with the bylaws…. so long as the building has meet all technical compliance in relation to the UBBL in protecting public safety and health.The Board of Architect Malaysia has taken a similar view in that the UBBL 1984 requires the Architect to only take responsibility for the “safety and health” aspect of the building. These disputes should be brought directly to and resolved with the developer. Why BCA issue Temporary Occupation Permit (TOP) where workmanship is poor? The TOP signifies that the completed building works have complied with the provisions of the building regulation. Page 16 . Only workmanship and materials quality in compliance with safety and health requirements of the UBBL 1984 must meet the minimum requirements as outlined in the by-law or other relevant standards. However. “regardless of the quality of the workmanship”. ROLES & RESPONSIBILITIES OF THE ARCHITECT WITH REGARDS TO QUALITY OF WORKS IN THE ISSUANCE OF CCC For similar reasons to those explained in relation to the application for Certificate of Fitness for Occupation. The Architect must however ensure for example that the staircases riser shall not be more than 180mm and the tread not less than 255mm under by-law 106(1) as this is a fire by-law requirement and not a “quality” requirement. so that the completed building can be occupied. the building should be deemed fit for issuance of the CCC. and with the requirements of the various technical authorities. which focus primarily on human safety. The Building & Construction Authority of Singapore BCA has taken an identical position as explained in their FAQ for CONQUAS outlined below. TOP does not ensure that materials have been accordance to the Sale & Purchase (S&P) agreement or quality of works as promised in sales document. when the UBBL was amended for Architects to issue the Certificate of Compliance and Completion – CCC effective from 12th April 2007. provided it is deemed reasonable by the Architect or other qualified person. especially for mass housing. Clause 13 of the Housing Development Regulation 1989 requires the consent of the house buyer for any changes. often with no compensation for these changes as none of their staff are prepared to sign off on “acceptance of design” before requesting for start of the next stage. Any disputes as to the requirement for change rests with the House Buyer Tribunal as the following digram illustrates.3. In the case of the standard building contract. Page 17 . the Architect takes the role of “quasi arbitrator” once the contract has been awarded to the contractor and he is empowered under the contract to make changes. Many Architects also often face the problem of “never ending changes by the various departments of the developer. his role is restricted to that of “certifier of completion” only. A typical survey form would be as follows. One useful way to overcome this is to follow the ISO 9001 procedure of requesting for sign off on the “Client Satisfaction survey form” for each stage of the works which signifies completion of the stage and requesting for feedback on your performance. MANAGING CHANGE 3.1 Changes and Variation Orders Unlike standard building contracts. It is therefore highly recommended that the design be “frozen” once the first SPA has been signed. Architects must also be mindful of their position in relation to the Building Contract and the S&P. which is also a contract. the Standard Sales and purchase agreement does not encourage change once the building plan has been approved and the SPA has been signed between the house buyer and developer. In the case of the Standard Housing S&P. Page 18 . The developer relied on Clause 32 of the agreement. To date there have been no cases where Developers have been exempted for late delivery penalties. a state of affairs which was at that time public knowledge.3. The High Court trial judge held that the 1966 Act and the 1970 Rules were passed by the authorities to protect the interests of the public and the developer could not contract out of the Rules. The developer's appeal to the Federal Court was dismissed. which purported to exempt it if nonfulfillment of any term was caused by circumstances beyond its control. instead of 18 months as stated in the SPA. The property in question was completed after 23 months. Page 19 .2 Extension of Time Are Developers entitled to request for waiver of interest on late delivery if their Contractors delay the works or there is a shortage of materials for construction? Developers often applied to the Controller of housing for waiver from paying of interest for late delivery. There is however a leading case for this legal proposition in SEA Housing Sdn Bhd vs Lee Poh Choo [1982](2 MLJ 31) in which the purchaser sued the developer for breach of contract and for delivery of the title to a house he had purchased. The issue before the court was whether the developer could be excused for the delay due to acute shortage of building materials. Defective Workmanship Compensation Payment CFO Late Delivery Of Houses Interest Not Conforming To Plan Service Cheating SGR PLS P. 7. 3. 8. 9. 5. 7. 6. 2. 3. 2. 5.4. Infrastructure 12. Deposit/Ownership 11.S MEL JOH W.P KEL TRG PHG TOTAL 82 124 20 47 97 40 14 20 2 21 0 12 177 656 0 0 0 0 0 0 0 0 0 1 0 0 1 2 26 28 15 4 38 4 10 17 1 5 3 15 50 216 12 14 6 3 24 1 6 5 3 2 0 7 27 110 14 6 4 1 15 3 1 2 1 1 0 9 15 72 14 4 8 1 24 14 0 4 2 1 1 2 9 84 7 0 9 0 14 5 1 2 0 4 0 0 0 42 18 0 7 1 24 17 3 3 0 4 0 1 5 83 28 60 23 26 83 9 98 51 8 13 1 9 32 441 0 0 0 2 12 0 0 4 0 0 0 1 4 23 0 1 0 1 1 1 0 2 0 0 0 0 3 9 11 10 0 9 16 4 2 3 0 2 1 2 25 85 212 247 92 95 348 98 135 113 17 54 6 58 348 1823 10. 8.1 Common Defects & Complains HBA Complaints Statistics 2006 1. 6.P PRK KED N. 9 Types of Complaints Strata titles Management & Maintenance Late delivery & LAD claims Certificate of Fitness Abandoned projects Shoddy workmanship & defects Non-adherence to building plans Infrastructure Failure to recovery on Awards / Prosecution of Awards Section 16AD % 30 24 12 9 14 7 1 1 2 Number Of Complaints Received by States by Types For Year 2000 No. Contravene Act/Regulations 13. Others Total Page 20 . 4. 4. MANAGING DEFECTS & COMPLAINS 4. Types Of Complaints/States 1. Persekutuan 25 15. Source : Research and Development Division. Perlis State No.742 8.65 6. Penang 41 8.73 8.41 12.622.71 10.241 2.702 790 3.9 7.544 12.No.107 9.067 14. Melaka 29 5. Malaysia.170 5.980.423 939. National Housing Department. W. April 2001 Page 21 . 1.92 3.795 2. of Projects 15 No. Sembilan 52 11.55 5.983 148.518 383.21 4.947 521.557 6.218 191.27 1.378 107. of Abandoned Housing Projects by States As At December 2000 No.5 9. Kelantan 37 4. of Buyers Estimated Cost (RM Million) 91.72 11.406 596. Perak 78 12. N.146 3.914 1.364 3.754 633. Selangor 80 17.542.35 53. of Houses No.719 68. Kedah 23 3. Johor 69 20.591 564 2.9 7.340 78.104 1. Terengganu Pahang Total 33 32 514* 1. The question of delays in delivery shows a lack of basic management skills and techniques in ensuring timely and proper completion of projects. 1.As the various surveys show. 4.2 already deals with ways to improve quality of workmanship thereby reducing defective works. For this we refer to the University Sains Malaysia Housing Building and Planning faculty research carried out in 2005. This usually arises with new developers who are under capitalized and lack the necessary experience. The following were identified as the key success factors. Defective workmanship Section 2.1 Sources of Success in Development The “reverse side of the coin “ is to look at what developers consider to be the source of successful developments”. the three most complains form house buyers in order of frequency is as follows. Compensation 3. Source : Page 22 . Many of these would become abandoned housing projects when the economic climate become poor. Late delivery of houses 2. Relationship with local authorities 5. In a worse case scenario. he would have wasted a lot of his time and the project never takes off and he is not paid. the project becomes abandoned and a few hundred people lose their life savings. Page 23 .AN ANALYSIS OF COMPETITIVENESS OF HOUSING DEVELOPERS IN MALAYSIA Assoc Prof Abdul Rashid Abdul Aziz Ho Shiew Yi School of Housing Building and Planning Universiti Sains Malaysia Penang The following were identified as top 10 key success factors. Ability to manage change 8. Cash flow 3. Relationship with competent support services providers 9. If not then in a best case scenario. Management expertise and experience 6.. Organisation and service reputation 7. Management tolerance to risks and It is therefore just as important for Architects to look beyond the Laws and recognize when the conditions are not right for a successful housing development and to walk away from a project that has all the wrong conditions. Prime location of land 2. Understanding market potentials 4. Skilled employees 10. 1.