HOUSING DEVELOPMENT ACT 1966 Roles ...

Pertubuhan Akitek Malaysia

HOUSING DEVELOPMENT ACT 1966Roles & Responsibilities of ArchitectsPertubuhan Akitek Malaysia CPD Seminar6 September 2014. PAM Centre. Jalan Tuanku Abdul Ra hman. Kuala Lumpur

Ar Chan Seong AunM Arch (Distinction), B Arch (Hons), B Bdg Sc (VUW, NZ), FPAM, Miid, AuIA(Hon)PAM President 2013-15

1


Architect’s Roles & Responsibility under HDA

1. Malaysian Housing Laws

2. Preliminary Design & Planning Approval

3. Design Development & Contract Documentation

4. Construction & Stage Certification

5. Completion & Issuance of CCC

6. Defects Liability Period

7. CMGD & Final Accounts

8. Factors for Successful Housing Projects

2Pertubuhan Akitek Malaysia

HOUSING LAWS


Laws Controlling the Housing Development Process

• National Land Code (Act 56) 1965

• Town & Country Planning Act

• Drainage Works Act (Act 354), (Revised 1988), 1954

• Sewerage Services Act

• Street, Drainage & Building Act (Act 133), 1974

• Uniform Building By-Laws 1984


•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

Principal HDA 1966


Laws West Malaysia Sarawak

Main Housing Acts Housing Development Act 1966

Housing Developers Ordinance 1993

Definition of Housing Development

More than 4 unitsRM 300,000 paid-upSEDC included

More than 8 unitsRM 100,000 paid-upSEDC NOT included

Housing Developer Regulation

Housing Developer Regulation 1989.

Housing Developer Regulation 1998

Housing Accounts Housing DeveloperAccount Regulation1991ALL monies to be deposited for ALL projects

Housing Controller to direct opening of HDA account if Developer likely to fall into difficulties.

Housing Tribunal Tribunal for House Buyers Regulation 2002

Housing Developer (Tribunal for Housing Purchaser Claims) Regulation 2010

Key Differences in Housing ActsWest Malaysia & Sarawak


Housing Development Act 1966

Housing Dev Account Reg 1991

Tribunal forHouse Buyers

Reg 2002

Strata Titles Act1985

Housing Dev Regulation

1989

Strata Titles Act2007


•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 f or 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.•Part 4 No alterations are allowed•Clause 14 – Materials and workmanship to conform to description•Building to be constructed in a good workmanlike manner

Housing Development Regulations 1989


•Clause 15 – Restriction against variation by purchaser.•Until after CCC/CFO•Clause 16 – Restriction against change of colour scheme•Clause 21 – Compliance with written laws.•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.



Note•Building description as set out in Fourth Schedule - the specifications of finishes, fixtures and fittings•Approved building plans as in Second Schedule – Key document is the approved building plans. Latest Ministry of Housing directive to include Plans from Oct 2014•No changes or deviations without the written consent of the purchaser except as required by appropriate authority•If changes or deviations involve the substitution or use of cheaper materials or omission of works, purchaser is entitled to corresponding reduction in price or damages



Laws West Malaysia Sarawak

Schedules of payments according to Third Schedule

Schedule-G Standard Sale and Purchase Agreement for land and building

Form-G Standard Sale and Purchase Agreement ( Land and Building)

Schedule-H Standard S&P Agreement for subdivided buildings

Schedule-H Standard S&P Agreement (subdivided buildings)

Force Majeure Clause 32 had excluded claims by Developers for delay by others

Part 18. Force Majeure

Defects Liability Period Clause 20 – DLP 24 months

Part 21 Defects Liability Period 12 months

New Housing Laws Clause 19 – New laws affecting housing development. Developer to absorb any additional costs

No similar clause

Key Differences in Housing Developer RegulationWest Malaysia & Sarawak


Further References

Copies of the Housing Development (Control & Licensing ) Acts can be found at the following websites

• www.rehda.org.my

• www.hba.org.my

Relevant Lembaga Arkitek Malaysia circulars:

•General Circular 1/2008 (CCC)

•General Circular 1/2010 (Borang-F1)

•General Circular 3/2008 (Stage Cert Guide AFTER 1-12-07)


Major amendments to the Act on 1st December 2002

• Section 2(1)(a) Includes cooperative societies such as PKNS, etc

• Section 8A – Statutory Termination of S&P Agreement – Works not started after 6 months & >75% Purchasers agree to terminate

• Section 13A – Controller can report unsatisfactory conduct of Architect or Engineer directly to their respective Boards

• Section 16(a) – 16(I) Tribunal for House buyers Claims – Claims up to RM 25,000. Decision of Tribunal to be final. Criminal penalty for failure to comply

• Third Schedule Stage 2(f) changed to 2(f), (g),(h) for sewerage, drains and roads.


Major amendments to the Act on 17th April 2007

• Section 24 Delivey of VP changed from after COF application is accepted by Local Authority to issuance of CCC by Principal Submitting Person

• Section 25 – DLP has been extended from 18 to 24

• SCHEDULE G&H – 2(e) Instead of the plastering which applies to walls only, the “internal & external finishes” have to be completed. This would include, the painting of walls and the floor finishes and the building would be almost completed before Architects can certify for completion of this

• Fourth schedule - Fencing and turfing is now optional under the new amendment. Internal telephone trunking and cabling is not optional


Core Reasons These Laws Were Passed .• The key reason for the Housing

Developer’s Licensing Act is to protect the rights of the purchaser.

• The key objective of the Uniform Building by-Laws is the protection of public safety and health .


DESIGN DEVELOPMENTPLANNING APPROVAL


Overview of the Housing Process

• One Stop Submission & Approval - OSC• Four Stage Process• Conversion & Sub-Division• Planning approval• Building Plan approval• Issuance of CCC• More than 12 laws• 8 Approving Authorities


Pertubuhan Akitek Malaysia 20

OSC3-6PROCESSES

COMMITTEE MEMBERS OF THE OSCCHAIRMAN : MAYOR / YDPSECRETARY : OSC DIRECTOR / PLANNERMEMBERS AS BELOW

• 1. Deputy Mayor

• 2. Four Ordinary Members of the Council

• 3. Director of State Urban and Town Planning

• 4. Director of Mineral and Land

• 5. Land Administrator

• 6. Director of Public Works

• 7. Director of Department of Drainage and Irrigation

• 8. Director of Department of Environment

• 9. Director of Department of Fire Fighter and Life Saving


• 10. Director of Department of Sewage Services

• 11. Manager of Tenaga Nasional Berhad

• 12. Manager of Telekom Malaysia Berhad

• 13. Manager of Department of Planning

• 14. Manager of Department of Building

• 15. Manager of Department of Engineering

• 16. Manager of Department of Landscape

• 17. Manager of Department of Health

• 18. Technical Departments that are related are invited


Pertubuhan Akitek Malaysia 23Pertubuhan Akitek Malaysia

NATIONAL PHYSICAL PLAN & CENTRAL FOREST SPINE


LOSS OF FOREST RESERVE 1954-2000

•Forest reserve reduced from 90% to 45%•FRAGMATATION & LOSS OF BIODIVERSITY


• ALLOW FOR RAPARIAN RIVER RESERVE


Key concerns for Architects for PD

• Write out a proper DESIGN BRIEF and get it signed off

• Get Developer to sign off each stage of works. Use ISO9001 evaluation form to reduce re-drawing. Do not start on Working Drawings until Preliminary Designs are signed off.

• Agree with the Developer on the stages of the development and have it clearly zoned in the Layout Plan as it will affect the CCC issuance


DESIGN DEVELOPEMNTCONTRACT DOCUMENTATION


Factors Affecting Quality of Construction

DESIGN 50%

CONSTRUCTION (Workmanship) 40%

MATERIALS (Product Failure) 10%

Building Research Establishment (BRE) UK

•Poor Workmanship due to :

�Lack of thoroughness 76%�Lack of Site Experience 15%�Lack of Trade Skills 5%�Lack of relevant Knowledge 4%

•

•FUNCTIONALITY•AESTETICS•COST•TIME


•Checking Architectural Drawings

�Incomplete and insufficient drawings�Insufficient and unclear details and drawings. Insu fficient dimensions. Have to scale off plans.�Plans, sections and elevations are not coordinated�Lack of coordination between drawings from differen t consultants and different elements of the design�Poor “build ability” - difficulty in constructing to design. Too many transfer beams. Not possible to finish off cer tain details.�Not adopting modular coordination. Direct conversio ns from Feet and inches to metric.

A comprehensive drawing checklist ensures nothing i s left to the “imagination” of the Contractor. Using BIM will ove rcome many of the above problems


Why the need for Quality Benchmark?

•High

•Low

•Home Buyer vs Developer Objectives & Perceptions

Home Buyer

perceived

Lowest level of quality

Developer perceived

Highest level of quality

•Building Q

uality

The PerceptionGap


•Benchmarking Quality in Specifications

�Internal Finishes – contains detail schedules of eac h and every surface finish�External Finishes - ditto�Sanitary ware – list every item and numbers involved�Tap Fittings - ditto�Ironmongery – ditto�Signage�Letter boxes – Description and drawings for apartmen t projects

Clear specifications reduces the risk for the Contr actor and benchmarks clearly the standard to be achieved by t he contractor


Impact of Minimum Benchmarked Standards on Quality

•High •High

•Low •Low

Specification

•Contractor 1

•Contractor 1

•Contractor 2

•Contractor 3

•Contractor 4

•Contractor 2

•Contractor 3•Contractor 4

•Building Q

uality


•Benchmarking Quality of Construction

� Standard quality assessment system to benchmark quality of construction projects.

� Measure quality of constructed works against workmanship standards and specification.

� Improve the quality standards of the construction industry.

•CONQUAS 21•QLASSIC



QLASSICAmendment 2014

What does CIS7 measure?

COMPONENTS Private

Housing

Public

HousingStructural Works 25% 35%

Architectural Works 65% 60%

M&E Works 10% 5%

CONQUAS Score 100% 100%

•QLASSIC measures WORKMANSHIP standards•DESIGN & MATERIALS QUALITY are NOT measured by QLAS SIC


�Measures WORKMANSHIP standards

�DESIGN & MATERIALS QUALITY are NOT measured

�Based on “First Time Right” approach

�uses a sampling approach to suitably represent the whole project. Typically 1 in 4 units inspected

�assessment is done throughout the construction proc ess for Structural and M&E works

�on the completed building for Architectural works

�A high Score means a building with good quality wor kmanship

�A score of 75 for example, means that 25% of the it ems assessed did not meet the workmanship requirements

�Hence using expensive materials does not necessaril y mean higher QLASSIC score if the workmanship is poor.

� QLASSIC assessment by CIDB Assessors

What does QLASSIC measure?


•Tolerances for Architectural Works•ELEMENT •STANDARDS •TOLERANCE •SOURCE

• •Finished concrete • •

• •All surfaces should not have cracks •Max 0.3 mm •QLASSIC

• •All cross-section dimensions must conform to structural drawings

•10 mm •QLASSIC•CONQUAS

• •Openings for services must conform to specified size and location

•Size 10 mm•Location •25 mm

•QLASSIC

• •Structural column vertical alignment •3mm/1m•max 20mm

•QLASSIC

• •Structural slab horizontal alignment •10mm •QLASSIC

• •Cast in place concrete elements •10mm •QLASSIC

• •Minimum finished concrete cover •3mm •QLASSIC


•Tolerances•ISO4463



Improving Quality of Architectural Elements

TENDER & CONSTRUCTION STAGE

�Change Procurement away from Award to Lowest Cost�Showroom & Sample Units as Quality Benchmark�Materials Sample Approval�Inspection Checklist for Clerk-of-Works�Industrialized Building Systems

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Procurement Models for Quality

High

Low

Building Q

uality

Competition / Value High

IIINegotiated BidHigh QualityPerceived High Price

IIBest-Value Performance

Based Contract AwardBenchmarked Based

Control

IVLow CompetitionLow QualityUnstable

IOpen Bid

Lowest Price Based AwardsSpec Based Control

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II

I WINYOU WIN

IV

I LOSEYOU LOSE

I

I WINYOU LOSE

SELF RESPECT

RE

SP

EC

T for O

TH

ER

S

III

I LOSEYOU WIN

Procurement Models for QualityParallels with the WIN-WIN Model

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Show Unit as Quality Benchmark

Serves as a quality benchmark for purchasers and for Contractors to tender and construct to.

47


SAVILLE MELAWATIPrecast floor slabs & Steel form shear walls


Inspection Checklist for Clerk of Works

A comprehensive QC checklist ensures works a properly completed for every stage of works.

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What is BIM anyway?BUILDING INFORMATION MODELLING

Ar Chan Seong Aun. President PAM

Production

• Production of model building information

• Production of scheme information

Design• Early feasibility stages• Design development &

planning

Construction

• Fully integrated model review at Contractors Proposals stage

• ‘As built’ BIM model upon completion

•BIM

So how can Architects use BIM?

Key concerns for Architects for DD

• Check detail drawings for the following compliances: (1) Design Brief (2) By-Law & Legal

• Use an electronic plan checker if available. Start to use BIM – Building Information Modelling to increase productivity & reduce drawing errors

• Agree with the developer on the quality targets and include QLASSIC if possible.

• Agree with the Developer on the sub-phases of the development and have it clearly zoned in the Building Site Plan as it will affect the CCC issuance.


CONSTRUCTIONSTAGE CERTIFICATION


Preparing for Certification

• Check to whether the project has been issued a Developer License.

• Check the details of the S&P Agreements to ensure compliance with approved building plans and contract documents, especially dimensions, floor areas and description of finishes.

• Check against Lembaga Arkitek Malaysia Circular 3/2008


Stages of Certification – Schedule -GLanded Properties

STAGE WORKS TO BE COMPLETED

WORKS NEED NOT BE COMPLETED

2(a) The foundation and footing works of the said Building

10%

Foundation works below lowest floor level�Piling & Pilecaps �Raft Slab�Footing�Stumps

�Retaining wall if it is not part of the foundation�Backfilling�Lowest floor slab NOT part of the foundation�Ground Beams�Services

C&S Engineer is to certify completion and compliance of structuralcomponents before Architect’s Certification




2(b) The Reinforced concrete framework of the said building

15%

�All Primary RC structural elements above lowest floor level�Beams, Columns & suspended slabs�Roof Beams�Structural walls �Retaining walls forming part of the structure

�Non-structural ground floor slabs w or w/o BRC�Stiffeners�Lintols�Non-structural RC�Hoods, aprons, gutters, parapets�RC staircases�RC walls not part of the frame

Formworks must be removed but temporary props are allowedRoof beams must be completed

C&S Engineer is to certify completion and compliance of structuralcomponents before Architect’s Certification


If the roof structure doe not have sloping RC beams as in this structure, then the RC structure has been completed and stage 2(b) certificate can be issued. If however there is a sloping RC roof beam, then this beam must be cast before RC structure can be considered to be completed.




2(c) Walls of the said Building with with Door & Window Frames placed in position

10%

�Non-structural walls �All Party Walls including Stiffeners�TIMBER Door & Window Frames�FRAMEWORK for Partitioning excluding lining

�Metal Frames�Door leaves�Window Panels�Window Louvres�Parapet walls�Boundary walls�Fence Walls�Closing up of construction openings

The above is for Circular 1/2008

Although metal window frames need not be installed at this stage, Architects often face complaints and queries from Purchasers




2(d) Roofing, Electrical wiring, plumbing,gas piping, internal telephone trunking and cabling to the said building

10%

�Roof structure, roofing & flashing including car porches

�Electrical wiring �Water piping �Sanitary piping incl bends joints & traps�Gas piping �Telephone trunking

�Ceiling boards�Switch Boards�Switches�Electrical fixtures & Fittings�Sanitary & Tap fixtures & Fittings�Hot Water heaters�Water tanks�Rain water down pipes�Gutters�Window Hoods




2(e) Internal & External Finishes of the said Building including the wall finishes

10%

�All plastering to walls, soffits, slabs, beams, columns where specified�Wall tiles & Other wall finishes�Linings, boards and panels to framed partitions�Floor screeding & other floor finishes�Painting to internal & external Walls Floors & Ceiling

�Closing up of temporary construction openings�Door & Window panels

The above is for Circular 1/2008




2(f) Sewerage works serving the said building

5%

�Sewerage reticulation connected to�Completed Sewage Treatment Plant temp or Permanent approved by the relevant authority

�Testing & commissioning�Water & electricity connection

•Sewer Treatment Plant may be Permanent or Temporary•Sewer line must be connected to last manhole•Last Manhole must be completed. Inspection Chambers need NOT be completed




2(g) Drains serving the said building

5%

�Drains & Main Drains connected to outfall

�Metal gratings & drain covers

•Alignment of drains and outfall may be Permanent or Temporary as approved by JPS or relevant Local Authority•Perimeter drains serving the said building




2(h) Roads serving the said building

�Paved Road leading to building from existing road�Permanent roads around the building �Entrance culvert serving the said building�Kerbs

�Footpaths�Roadside tables�Final wearing course to pre-mixed roads�Road markings�Road signages

•Alignment of Roads may be Permanent or Temporary access as approved by Local Authorities



Stages of Certification – Schedule -HSub-divided Building



2(a) The Work Below Ground Level of the said Buildingcomprising the said parcel including foundation of the said building

10%

Foundation works below lowest floor level�Piling & Pilecaps� Stumps�Raft Slab�Footing & Stumps

�Retaining walls if not part of the foundation�Backfilling�Lowest floor slab NOT part of the foundation�Ground Beams�Services

C&S Engineer is to certify completion and complianc e of structural components before Architect’s Certification

83


STAGE 2(a) QUESTION

The development consists of 4 wings of apartments interlinked to common service cores. Do the works below ground level of all 4 wings have to be completed before we certify for stage 2(a) or can they be certified on a wing by wing basis.

If the 4 wings are “structurally independent” and they have been defined as 4 independent buildings / blocks they can be certified on a “building” by “building” basis. If however they all sit on a common structural podium and is one integral structure, then the whole podium foundation must be completed for certification for stage 2(a)

84




2(b) The structural framework and floor slab of the said parcel

15%

All primary structural elements above lowest floor level including�Beams�Columns�Suspended slabs�Structural walls�Roof Beams

�Retaining walls forming part of structural element

Of the said parcel

�Non-structural ground floor slabs with or without BRC�Wall stiffeners & Lintols�Non-structural RC�Hoods, aprons, gutters, parapets�Staircases including that in the common area�RC walls that do not form part of the structural framework

Formworks do NOT need to be removed

86


Shear walls form part of the primary RC structure and must be completed under stage 2(b)

87


Ground, 1st, 2nd and 3rd floor can be certified under stage 2(b)

88




2(c) Walls of the said parcel with Door & Window Frames placed in position

10%

�All non-structural walls within parcel�All Party Walls inclusive of wall Stiffeners�TIMBER Door & Window Frames where there are no sub-frames�All FRAMEWORK for dry Partitioning excluding lining of partition

�Metal Frames�Door leaves�Window Panels�Window Louvres�Parapet walls�Boundary walls�Fence Walls�Closing up of construction openings�Timber door & window frames where sub-frames are provided

89


Parapet walls need NOT be completed for stage 2(c)

90


Walls required for construction access need NOT be completed for stage 2(c)

91




2(d) Roofing/Ceiling, Electrical wiring, plumbing,gas piping, internal telephone trunking and cabling to the said parcel

10%

�Roof structure, roofing & flashing, or�Floor slab soffits & ceiling framing of the said parcel

�Electrical wiring within parcel�Water piping within parcel�Sanitary piping within parcel�Gas piping within parcel�Telephone trunking & cabling within parcel

�Ceiling boards�Switch Boards�Switches�Electrical fixtures & Fittings�Sanitary & Tap fixtures & Fittings�Hot Water heaters�Water tanks�Rain water down pipes�Gutters�Window hoods

92


1st floor has been completed to stage 2(d) if services are complete

93




2(e) Internal & External Finishes of the said parcel including the wall finishes

10%

�All pastering to walls, soffits, slabs, beams, columns where specified�Wall tiles & other wall finishes�Linings, boards and panels to framed partitions�Floor screeding and/or other floor finishes�Painting to internal & external walls, floors and ceilings (if any)

�Closing up of temporary construction openings�Door & window panels

94




2(f) Sewerage works serving the said building

5%

Sewerage works including manholes from the building containing the said parcel connected to a completed sewerage treatment system ( The treatment system may be permanent or temporary as approved by the relevant authority)

�Testing & commissioning�Water & electricity connection�Refer page 18/18 of circular

Sewer Treatment Plant may be Permanent or Temporary

95




2(g) Drains serving the said building

5%

Drains & Main Drains connected to outfall(The alignment of drains and outfall may be Permanent or Temporary as approved by the local authority)

�Metal gratings & drain covers

Perimeter drains serving the said building must be completed

97




2(h) Roads serving the said building

�Paved Road leading to building containing the said parcel from an existing road.(The alignment of Roads may be Permanent or Temporary access as approved by Local Authorities)�Permanent roads around the building containing the said parcel�Entrance culvert serving the building�Kerbs

�Footpaths�Roadside tablets�Final wearing course to pre-mixed roads�Road markings�Road signages

98


Vacant possession can not be issued yet as the bulk meter has not been installed yet

100

Key concerns for Architects for CD

• Construction quality and lack of proper inspection and test plan

• Non-compliance to approved building plans and specifications.

• Differences between approved BP and S&P Plans

• Certifying without inspection at site

• Certifying based on undertaking from PM of Developer

• Jump stage certifications.



•ISO 9001 : 2000

� A company that can be TRUSTED� A company with a SYSTEM for delivery� A company which delivers QUALITY services & product s�A company with a quality STANDARD�A company which complies to Public SAFETY & HEALTH standardsWithout a System – WHAT CAN GO WRONG WILL GO WRONG. Murphy’s Law

ISO 9001 KEY DOCUMENTS1. OPERATING PROCEDURES MANUAL

•INSPECTION & TEST PLAN

2. QUALITY MANUAL

•QUALITY POLICY•BUSINESS PROCESSES•QUALITY MANAGEMENT STRUCTURE•QUALITY OBJECTIVES

COMPLETIONCCC ISSUANCE




(3) Professional Architect does not need to issue any certificate for this Stage but before the Developer can effect vacant possession, the Certificate of Completion and Compliance shall have been issued by the Professional Architect as the Principal Submitting Person ready

ALL works completed

�External works including fencing gates and landscaping�Utility services ready to receive supply�Electricity and water supply available & ready for connection (tapping) into said building�TNB sub-station energized�External electrical cabling from sub-station to unit completed�Water reservoir or water tank is operational�Temporary openings closed�Borang-E submitted & Accepted by Local Authority�Sewerage Treatment Plant serviceable

�Loose Fixtures & Fittings �Electrical meters�Water meters�Minor defects

The above is for Circular 1/2008105Pertubuhan Akitek Malaysia

CCC can only be issued by the Principal Submitting Person (PSP) after the following have been secured:1. all the certifications by the respective parties (professionals, contractors and licensed tradesmen) based on the prescribed ‘Form Gs’ under the Matrix of Responsibility (Forms G1 – G21); and

2. clearances from the following authorities :•Tenaga Nasional Berhad (TNB)•Water Authority•Sewerage Services Department (JPP)•Fire and Rescue Department (except for residential buildings of not more than 18 meters high)•Department of Safety and Health (where applicable),•Relevant authorities/Public Works on Roads and Drainage.

ISSUANCE OF CCC


•The 2007 amendments to the UBBL empowered the PSP to issue the CCC replacing the role of Local Authorities in issuing the CFO/OP•The local authorities still maintain their rights and power to enter the siteduring construction and issue an order to stop the issuance of CCC by the PSP if the construction on site is found to have br eached the approved building plans and/or against the provision of UBBL or conditions of building plans approval on health and safety issues until su ch time the fault is corrected.•The issuance of CCC is restricted to only technical issues concerning health, safety and essential services. The non-tech nical issues such as bumiputra quota, low cost provision and contributio n for public facilities etc are outside the purview of PSP and will have to be resolved between the Owner and the Local Authorities at the planning and building plans approval stage or via other mechanism.•There will be only CCC (Form F) and Partial CCC (Fo rm F1). There will be NO Temporary CCC similar to Temporary CF.•The issuance of CCC will only apply to projects in which building plans are submitted after CCC came into force.

ISSUANCE OF CCC



BUILDING QUALITY AND CCC

• Can Architects issue the CCC when there are still outstanding defects?

• Can an Architect decide that a minor defect is acceptable under the Standard S&P?

116

•Certification, CCC & Quality

•ARCHITECT’S ROLES & RESPONSIBILITIES

�STANDARD SALES & PURCHASE AGREEMENT FOR HOUSING�UNIFORM BUILDING BY-LAW 1984�PAM 98 CONTRACT �PAM 2006 CONTRACT�CERTIFICATE OF COMPLETION & COMPLIANCE


STANDARD SALES & PURCHASE AGREEMENT FOR HOUSING

Clause (14) Materials and Workmanship to Conform to Description states “….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 approved Building Plan is a very important point of reference as far as quality is concerned�The Architect does not have the powers under the standard S&P to make the final decision regarding quality - Tribunal for House has that power


CONTRACTORHOUSING

DEVELOPERHOUSEBUYER

STDSPA

ARCHITECT

HOUSE BUYERTRIBUNAL

PAMCONTRACT

Contractual relationship of parties in Housing Sell then Build


UNIFORM BUILDING BY-LAW 1984

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 , there is no directly implied responsibility for the quality aspect of the building.


PAM 98 CONTRACT

Quality standards in Architectural components cannot yet be definedabsolutely and requires the discretion of the Architect. The PAM98contract also empowers the Architect to make the final decisionon quality with “ reasonable discretion”.

The powers of the Architect however are not absolute, as theContractor can refer any matter in the contract including qualitymatters to arbitration as outlined in clause 43.1(1) “…..including anymatter or thing left by this contract to the discretion of the Architect”.

Under the PAM form of Contract therefore the Architect decideswhether the quality of works are acceptable and NOT the Employer


PAM 2006 CONTRACT

Quality standards in Architectural components cannot yet be definedabsolutely and requires the discretion of the Architect. The PAM2006contract also empowers the Architect to make the final decisionon quality but refers more to the Contract in clause 6.1 “…shal lbe to the respective quality and standard described in thecontract document and required by the Architect….”

The powers of the Architect however are not absolute, as theContractor can refer any matter in the contract including qualitymatters to arbitration as outlined in clause 34.5(b) “….. any matter leftby the contract to the discretion of the Architect”.

Under the PAM 2006 form of Contract also the Architect decides whether the quality of works are acceptable and NOT

the Employer but quality shall be as described in the contract


CERTIFICATE OF COMPLETION & COMPLIANCE

Why BCA issue Temporary Occupation Permit (TOP) whe re workmanship is poor?

The TOP signifies that the completed building works have complied with the provisions of the building regulation, which focus primarily on human safety, and with the requirements of the various technical authorities, so that the completed building can be occupied.

However, 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. These disputes should be brought directly to and resolved with the developer.


Key concerns for Architects at CCC

• Issuing F1 for Phased Developments

• Issuing single CCC for multiple phased developments

• Major defects at CCC inspections

• Interference from LA and Developer

• Refusal by Sub-Consultants, NSC and Specialist Contractors to endorse G forms

• LA refusing to accept the CCC


DEFECTS LIABILITY PERIOD MANAGING DEFECTS


CONTRACTORHOUSING

DEVELOPERHOUSEBUYER

STDSPA

ARCHITECT

HOUSE BUYERTRIBUNAL

PAMCONTRACT

Contractual relationship of parties in Housing Sell then Build


Number Of Complaints Received by States by Types Fo r Year 2000

No. Types Of Complaints/States

SGR PLS P.P PRK KED N.S MEL JOH W.P KEL TRG PHG TOT AL

1. Defective Workmanship 82 0 26 12 14 14

7 18 28 0 0 11 212

2. Compensation 124 0 28 14 6 4 0 0 60 0 1 10 247

3. Payment 20 0 15 6 4 8 9 7 23 0 0 0 92

4. CFO 47 0 4 3 1 1 0 1 26 2 1 9 95

5. Late Delivery Of Houses 97 0 38 24 15 24

14 24 83 12 1 16 348

6. Interest 40 0 4 1 3 14 5 17 9 0 1 4 98

7. Not Conforming To Plan 14 0 10 6 1 0 1 3 98 0 0 2 135

8. Service 20 0 17 5 2 4 2 3 51 4 2 3 113

9. Cheating 2 0 1 3 1 2 0 0 8 0 0 0 17

10. Deposit/Ownership 21 1 5 2 1 1

4 4 13 0 0 2 54

11. Infrastructure 0 0 3 0 0 1

0 0 1 0 0 1 6

12. Contravene Act/Regulations 12 0 15 7 9 2 0 1 9 1 0 2 58

13. Others 177 1 50 27 15 9

0 5 32 4 3 25 348

Total656 2 216 110 72

84 42 83 441 23 9

85 1823


Housing Quality in Malaysia

•Complaints Statistics - Year 2000

• •Types of Complaints •%

•1. •Shoddy workmanship •22

•2. •Late delivery •18

•3. •Certificate of Fitness •17

•4. •Compensation Delays •16

•5. •Non-adherence to building plans •11

•6. •Maintenance •4

•7 •Strata titles •4

•8 •Payments •4

•9 •Infrastructure •4


•Complaints Statistics - Year 2004

• •Types of Complaints •%

•1. •Strata titles •29

•2. •Management & Maintenance •21

•3. •Late delivery & LAD claims •12

•4. •Certificate of Fitness •15

•5. •Abandoned projects •9

•6. •Shoddy workmanship & defects •9

•7. •Non-adherence to building plans •3

•8. •Infrastructure •2


• Rising Damp 33%

• Defective Framing 20%

• Illegal Building 30%

• Timber Rot 46%

• Cracking Brickwork 43%

• Electrical Problems 34%

• Roofing Faults 54%

• Water Problems 15%

Typical building faults from Architect Centre



DAMPNESS & LEAKS

131


DAMPNESS & LEAKS

Leaking Pool Leaking Tennis Courts

132


DAMPNESS & LEAKS

� Leaking Service Pipes

� Water ponding lack of proper gradient; resulting in incessant leaks below causing concrete cancer;

133


DAMPNESS & LEAKS

Perimeter drain clogged with sand & debris;

loose and high damp soil conditions throughout sub-floor indicate ground water

breach affecting adjacent walls;

Serious underground water seepage from base of retaining wall /

slope into sub-floor level causing mudflows, silt and water into

pump room and surrounding area; causing high dampness and drain siltation.

Sub-floor levels

134


ROOF

Broken tiles used to join roof edge

� Ceiling crack at roof eave

135


ROOF

�

136


ROOF

�

137


ROOF

�

138


ROOF

�

Ceiling joints not secure to wall

Rafter supported by bricks wall Towering at M/Bedroom

Carporch roof truss messy

Non systematic truss system139


ROOF

Insufficient wall plate for roof truss

Insufficient ceiling support

Roof facia with gap

Internal gutter found above ceiling level. No gutter support found and gutter

joint is using barb joint not welding joint, durability

concerns.

140


Cracking

Brickwork

Downpipe outlet

cracked

Surface water drainage to the

both sides of car porch

cracked due to non-suspended

drain

Extensive structural cracked caused distortion of sliding

window and frame.

Major party

wall cracked

horizontally

Minor cracks between corner joints

of plasterboard from expansion/

contraction.

Cracks & sagging to the ceiling from

failure of the plaster and ceiling

joints loosen resulting in cracks.

141


WORKMANSHIP

142


WORKMANSHIP

143


WORKMANSHIP

144


PLUMBING

Wash basin leaking

Kitchen sink pipes leaking Ceiling pipes below bathroom leaking

Bathroom flooding due

to clogged floor trap

Bathroom flooding due to

uneven gradient

145


PLUMBING

Leak from a pipe located at the

ceiling, of the master bath

146

Key concerns for Architects at DLP

• Refusal by Contractors and Sub-Contractors to agree on Final Accounts

• Issuance of instructions by PM of Developers to Contractors on defects and complains by purchasers.

• Unreasonable quality standards and false claims by Building Surveyors on defects inspection.

• Renovation works by House Purchasers before DLP ends.

• Buying of Building Plans by House Buyers


MORALETHICAL

STUTATORYREQUIREMENTS

CONTRACTURALISSUES

MANAGING CHANGES & UNCERTAINTY


CMGDFINAL ACCOUNTS


2. I hereby certify that the following amounts are still needed to satisfy the Developer Obligations:-

(a) An amount needed to comply with conditions of Certificate of Fitness (Where Temporary Certificate is issued)

Architect

(b) An amount needed to obtain separate Document of Title

Surveyor

(c) An amount needed for the cost and expenses of maintaining, up keeping and repairing the areas reserved for roads, open spaces, electricity substation, septic tanks and other communal amenities, until the same is taken over by the Appropriate Authority.

DeveloperQS

(d) An amount needed to keep purchasers Indemnified against fines, penalties or looses incurred by reason of any breach of the provision of any written law relating to the Housing Development.

Developer

Release of Residual monies after CCC (Jld9)


(e) An amount needed to rectify any defects, shrinkages, or other faults in the said Building, 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.)

ArchitectQS

(f) An amount needed as outstanding Developer’s solicitor’s cost.

LawyerDeveloper

(g) Administrative expenses. Developer

(h) Any other cost which has not been spelled out, asabove which the architect may deem necessary.

Balance may deem necessary Architect

Balance of payment to contractor ArchitectQS

Balance of payment to consultant Consultants

Total (a) to (h) Architect

Add 10% for the contingencies and inflation151Pertubuhan Akitek Malaysia

EOT UNDER HDA CLAUSE 32

• 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?


• 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 property in question was completed after 23 months, instead of 18 months as stated in the SPA


The developer relied on Clause 32 of the agreement, which purported to exempt it if non-fulfillment of any term was caused by circumstances beyond its control. 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. To date there have been no cases where Developers have been exempted for late delivery penalties.

Pertubuhan Akitek Malaysia 154Pertubuhan Akitek Malaysia

SUCCESS FACTORS



Housing Complains Against Architects1999-2005Source : Lembaga Arkitek Malaysia

Certification54%

Defects13%

Supplanting3%

Delay in Obtaining CFO3%

Collabration with NonRegistered Person

0%

Non-approved Practice0%

Unprofessional Conduct27%

156


BEYOND THE LAWS – SUCCESS FACTORS FOR HOUSING DEVELOPMENT Source USM

1. Prime location of land2. Cash flow3. Understanding market potentials4. Relationship with local authorities5. Management expertise and experience6. Organisation and service reputation7. Ability to manage change8. Relationship with competent support services providers9. Skilled employees10. Management tolerance to risks and

157

THANK YOU

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