An Overview of Comparison between Construction Contracts in Malaysia: The Roles and Responsibilities of Contract Administrator in Achieving Final Account Closing Success

Abstract

The administration of construction contracts in Malaysia is facilitated through a standard form of contract. The application of each however depends on the type of project, mode of finance and owner of the project. International Federation of Consulting Engineers (FIDIC), Public Work Department 203A (PWD203A), Pertubuhan Akitek Malaysia (PAM) Standards form of contract are widely implemented in Malaysia. In generally, each standard form of contract aims at ensuring effective, efficient and non-disputable contract administration. Nonetheless, variations arise in certain matters. This paper appraises the differences in roles and responsibilities of contract administrator as stipulated in each forms, namely PWD203A, PAM and FIDIC via literature review on some different types of forms of contract used in Malaysia. This aim can be achieved by determining the important factors affecting final account closing success caused by contract administrator, and investigating the differences between forms of contract. The understanding of these roles and responsibilities is important at the preliminary stage especially in selecting superintending party as well as identifying the contract liability in the persuasion of the contract. This paper shows that the use of contract documents either FIDIC, PAM and PWD 203A is dependent on the project owner/employer, type of project as well as the nature of a project and financing involved. Most of the projects under the government will apply PWD203A contract document while the private sector will use PAM contract document and FIDIC contract document will be used for projects involving international contracts.