A construction contract provides a legal binding agreement, for both the owner and the builder, that the executed job will receive the specific amount of compensation or how the compensation will be distributed.
The legislation and regulations in Malaysia governing building and fire safety are the Street, Drainage and Building Act, 1974; the Uniform Building By-Laws, 1984; and the Fire Services Act, 1988.
The most common standard forms of construction contract used in Malaysia are the PWD, PAM and IEM standard forms. International Federation of Consulting Engineers (“FIDIC”) standard forms are also available, but infrequently used.
Malaysia's building regulation is mainly based on the Uniform Building By-Laws (UBBL) 1984 which provides guidelines on the procedures for building plans approval and other means of development control.
Construction law in Malaysia governs the legal aspects and regulations related to the construction industry within the country. It encompasses a wide range of laws, rules, and regulations that apply to the planning, design, development, and execution of construction projects.
The major OSH laws include the Occupational Safety and Health Act 1994, the Factories and Machinery Act 1967, the Petroleum Act (safety measures) 1984. There are also other laws with a strand on OSH, such as the Employment Act 1955, and Labor Ordinance Acts 2005.
While Malaysia's construction industry is experiencing remarkable growth, it has challenges. Rising material costs, labour shortages, and sustainable practices require careful navigation and innovative solutions.