President’s Message August 2023
The month of August has seen two industry initiatives that are primed to transform the dynamics of the construction industry to foster sustainable growth.
CIDB Standard Form of Contract for Building Works 2022
CIDB rolled out its latest CIDB Standard Form of Contract on 7th August 2023 which will see significant improvement in contractual standards and project delivery through the introduction of The CIDB Standard Form of Contract for Building Works 2022. With a Disputes Resolution Board in place, contracting parties would have a platform to address their contractual issues, preventing it from escalating further thus reducing the number of disputes.
This contract would require all stakeholders to be proactive in managing their projects as clients and contractors will now need to work together through frequent meetings in order to stay informed and coordinated whenever new claims are made.
MBAM acknowledges CIDB’s efforts in formulating the new form of contract, which has taken into account claim disputes and cash flow issues affecting contractors. It is anticipated that through the use of this new form of contract, contractors will benefit from improved cash flow, fewer abandoned projects, and a reduction in expensive legal fees.
CIDB Construction Mediation Centre under MBAM
During our 69th MBAM Anniversary Dinner on 11th August 2023, MBAM also received the letter of approval from CIDB Malaysia for the CIDB Construction Mediation Centre under MBAM as a collaborative partner in promoting, training and providing mediation services to the construction industry.
In line with the CIDB Malaysia’s progressive approach to alternative dispute resolution, we firmly believe that this collaborative contract-mediation option not only reduces the adversarial nature of disputes but also provides an opportunity for parties to maintain ongoing business relationships, leading to the overall growth and sustainability of the construction industry.
We are enthusiastic about being an integral part of the collaborative contract-mediation initiative for dispute resolution in the construction industry and is pleased to share that MBAM Council Members alongside our Affiliate Members are to sign a pledge to be fully committed and demonstrate industry leadership to “Mediate First” to resolve disputes to our members and players in the construction industry.
MBAM has always been at the forefront in encouraging our members to opt for mediation over adversarial methods of dispute resolutions such as litigation and arbitration with our very own mediation service being set up back in 2018.
As a recognised partner, MBAM is now better equipped to serve the industry’s mediation needs with even greater effectiveness.
Oliver HC Wee
MBAM President