About KLRCA’s SFC

KLRCA’s Standard Form of Contracts (SFC) is a suite of standard form contracts that are customizable and freely available for print and download. KLRCA’s SFC was inspired by the prevalent issues plaguing the Malaysian construction industry, aimed at filling the gaps of existing standard form building contracts in governing relationships, rights and duties of parties to a building construction project. It is user-friendly, incorporates Plain English Drafting, and includes clearer provisions to guide users in interpreting the contract. KLRCA’s SFC is Malaysia’s first ever CIPAA-compliant suite of building contracts and contains more mechanisms for parties to resolve disputes and deadlocks including mediation, encouraging parties to continue work despite disputes, while preserving parties’ rights till completion. The hallmark of KLRCA’s SFC is continuity of works and working relationships.

Message from our Director

Datuk Professor Sundra Rajoo spoke on the Standard Form of Building Contracts by KLRCA on BFM Radio Station on 28th July 2017. In case you have missed it, click play for the podcast.

 

Key Features
  • Customizable and free
  • Over 60 definitions of words and expressions ¬¬¬for greater clarity (exceptionally inclement weather, fossils & antiquities)
  • Comprehensive ADR provisions providing for mediation and arbitration while also contemplating the latest legal developments in adjudication
  • Enlarged powers for the Architect, with powers to delegate his powers to an appointed representative
  • Clearly sets out accountability between Employer and Architect
  • Specific time periods for parties to carry out obligations under the SFC
  • Enhanced provisions on nominated sub-contractors and suppliers
  • Enhanced provisions on payment, valuation, variation, extension of time and making good defects
  • Provisions addressing bribery and corruption
Benefits
  • Free of charge– KLRCA’s Standard Form of Building Contracts (KLRCA’s SFC) will be uploaded on its website. Interested users may download it for free for use, and are free to make any amendments to suit his requirements.
  • CIPAA Compliant– KLRCA’s SFC have taken into account the provisions of CIPAA 2012, and their effect on contract management as well as duties and obligations of the parties in relation thereto.
  • Greater transparency– Greater transparency with regard to the duties and obligations of all parties concerned, e.g. the Employer, Contractor, Nominated Sub-Contractor, Architect and Consultant, which aims to enhance trust and better working relationship between all parties.
  • Greater focus on continuity of projects – Enhanced provisions to prevent deadlocks and reduce conflict during, and after completion of the Works. Provides options where rights are infringed, offering greater protection for all.
  • Reinforces the Principles of Integrity – KLRCA’s SFC have included provisions against bribery and corrupt practices, and reinforces the principles of integrity in the implementation of construction projects.
  • Pragmatic Dispute Resolution Clause– KLRCA SFC provide suitable arbitration mechanisms made available by the KLRCA, including Fast Track Arbitration procedure, taking into account the amount in dispute involved. In addition, the parties in dispute may refer to mediation at any time, whether before or concurrently with any arbitration, litigation or adjudication proceeding.
  • Greater Transparency & Accountability while Drawing from past experiences– Fills the gaps and provides procedures dealing with practical contract issues during the implementation of the Works, with a view to avoiding deadlocks, and thereby promoting smooth progress of the works.

KLRCA’s SFC, Simply Put

The Suite of Contracts

KLRCA introduces the main contract, both ‘with quantities’ and ‘without quantities’ main contracts. These would be entered into between the owner or employer and the builder.

The KLRCA also introduces its Nominated Sub-Contract under the KLRCA’s suite of building SFCs, that is tailored to bring consistency between the main contract and the nominated sub-contract, so as to ensure smooth implementation of the construction works involving the whole construction chain of contracting parties.

Minor Works, which is especially tailored for small building construction jobs, and which do not involve a contract consultant administrator. The terms are simple to understand and laymen friendly.

Why choose us

CIPAA Compliant

Focus on project continuity

Free, Familiar & User-Friendly

Draws from past experiences

Greater transparency

Reinforces the Principles of Integrity

Pragmatic dispute resolution clause

Free of charge

Contact Us

We want to hear from you!

If you have any questions, comments or general feedback on KLRCA’s SFC ,do reach out to us here to help us better serve you.

KLRCA, Bangunan Sulaiman,
Jalan Sultan Hishamuddin,
50000 Kuala Lumpur, Malaysia


T : +603 2271 1000
F : +603 2271 1010
E : [email protected]

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