Construction Disputes and Resolution Methods in Malaysia Construction Industry

Yap, Ko Chun (2022) Construction Disputes and Resolution Methods in Malaysia Construction Industry. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Construction disputes can be understood in the way of misunderstanding between parties in a particular project that bring up the issue no matter what are the size of the project or how complex it is. Of course, the higher uncertainty or complexity will lead to a greater chance to have construction disputes in a project. However, the team player in construction industry are not able to avoid construction disputes, the only thing is to reduce the chances to face to the construction disputes. Therefore, this thesis will discuss on the causes of construction disputes in the Malaysia construction industry which are (1) dispute due to payment issues, (2) dispute due to Extension of Time (EOT), (3) dispute due to insufficient contract document and client’s requirement, (4) dispute due to unforeseen condition of site and (5) dispute due to late of site possession. Also, will discuss on the consequences of the construction disputes in the Malaysia construction industry which are (1) project’s cost overrun, (2) project delay, (3) liquidated damages (LD) and (4) compensation or loss and expenses. Furthermore, discuss on the methods used to resolve the construction disputes in the Malaysia construction industry which are (1) conciliation, (2) mediation, (3) arbitration, (4) expert determination, (5) negotiation, (6) negotiation and (7) Construction Industry Payment and Adjudication Act (CIPAA) 2012 Act 746. Overall, this thesis will provide the reader a better understanding on the causes of construction disputes, consequences of such construction disputes and the ways to resolve the construction disputes and will suggest some ways to avoid the chances of construction disputes to happen in Malaysia construction industry.