10 October, 2023 – In a bid to revolutionize the construction sector, the Malaysian Construction Industry Development Board (CIDB) has announced a strategic collaboration with the Department of Quantity Surveying, Faculty of Built Environment and Surveying (FABU) Universiti Teknologi Malaysia (UTM) to host a seminar on the amended CIDB Form of Contract for Building Works 2022. The main key agenda of the event was to introduce the CIDB Standard Form of Contract for Building Works 2022 Amendments. The seminar also welcomed industry insights and opinion on the perceived challenges for the new amendment.
CIDB, recognizing the need for progressive solutions beyond traditional legal avenues, has recently improved the CIDB Standard Form of Contract for Building Works 2022. This initiative aims to address challenges in project implementation, particularly focusing on escalating costs and contractual issues. The amendments, finalized in July 2023, incorporate valuable insights gathered from industry activists and public comments through a dedicated technical committee. The amendments to the contract form mark a significant move towards diversifying solution options within the construction sector. By broadening the range of available methods beyond litigation, arbitration, and mediation, CIDB aims to foster innovation and efficiency in the industry.
The opening remarks was delivered by the Senior Manager of Policy and Corporate Sector, CIDB Malaysia, Sr. Ahmad Farrin Mokhtar. He shared the inspiration behind the creation of the contract form due to prevalent contractual disputes during Covid-19. CIDB took this chance to refine and improve their current form of contract by organising a team made up of various stakeholders includes the developers, contractors, legal advisors, and academia to ensure that the new contract form considers all current aspects to give benefits to all industry players. This standard form of contract is unique as compared to other forms of contract in the way that it promotes collaborative type of contract. The form was inspired from the Hong Kong New Engineering Contract, which highlight elements such as early warning system, compensation event, and dispute resolution mechanism. He hopes that the new contract form will benefit industry players in the future and that it will receive honest feedback so that it can be improved for the benefit of others.
CIDB is taking the initiative to promote these amendments across the country through a series of seminars. The first session, featuring seminars and a pre-launch event, took place in the northern region at Universiti Sains Malaysia (USM) Pulau Pinang on August 7, 2023. The second leg is scheduled for the east coast region in Kuantan, Pahang, on October 5, 2023. For the third leg of the tour, CIDB is strategically collaborating with FABU UTM as the host organizer. This collaboration emphasises the importance of academia-industry partnerships in driving industry progress and innovation.
The event was open and attended by 150 participants of the industry professionals, academics, and stakeholders of the construction industry including participants from CIDB HQ, CIDB State (Johor, Melaka & Negeri Sembilan) and technical committees from various construction organizations. This collaborative effort signifies a step forward in reshaping industry standards and addressing pertinent challenges. CIDB invites all stakeholders to join this informative seminar and contribute to the collective growth of the construction sector, The Seminar ended at 1.00 p.m. after the Q&A session.