A. Introduction One of the risks that are often oversight by contractor when tendering a project is the risks associated with site conditions. Contractor often assumes the geotechnical report provided by the Employer would reflect the actual condition on site. Unforeseen ground conditions are also known as differing site conditions are defined as “latent physical
Completion of works is of paramount importance in the construction industry. As the saying goes: “Time is Money”, delay in completion may have serious financial repercussions on the stakeholders in terms of compensation to be paid to end purchasers, loss of income from production, and higher construction costs. Therefore, most construction contracts have a liquidated
Recently, the High Court of Sabah & Sarawak in the case of Tekun Cemerlang Sdn Bhd v Vinci Construction Grands Project Sdn Bhd [2021] MLJU 466 has granted a stay of adjudication proceedings on the grounds that the solicitor firm which represented the Defendant is not Sabah Advocates. Although the Court has expressly cautioned that
A proof of debt in the context of judicial management is a document submitted by a creditor to substantiate the debts owed to it by the company under judicial management (“The Company”). The term “creditor” has been defined by the Court to include all persons having any monetary claims against the Company.1 Proof of debt
Letter of Demand is widely used as an antecedent to most civil litigations, be it to demand money due or payable, to perform an act, or to refrain from performing an act. However, experience over the years shows that most of the letters of demand sent were ignored and unanswered. Ignoring a letter of demand
One of the cardinal rules in corporate law is that a company is a separate entity from its members and/or officer. Hence, a director who merely acting as an agent of the company could not be made personally liable for the acts of the company unless there are express provisions in the agreement or documents
Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) is proved to be an effective mode of dispute resolution to ease the cash flow of players in the construction industry. One of the features that enhance its effectiveness in recovering construction payment is the statutory provision for the winning party to request the Adjudicated Amount directly
Judicial Management is a new corporate rescue mechanism introduced by the Companies Act 2016. As the law in the Malaysian context of judicial management is in its infant stage, there have been conflicting decisions of the Courts when it comes to the rights of unsecured creditors to intervene and oppose the making of an order
The global pandemic has left the economy in a dire situation. According to the statistic from the Entrepreneurship Development and Cooperatives Ministry, there were 32,469 small-medium enterprises (SMEs) have been wound up from March to November 2020. Besides, a survey conducted in November 2020 by the SME Association of Malaysia revealed that 19% or
Construction litigation is expensive as it often involves a high disputed amount, convoluted and contested facts. According to the statistics, the total amount in dispute of construction adjudication cases registered with the Asian International Arbitration Centre (AIAC) in the year 2018 alone was worth RM2.2 billion1. Against the backdrop, parties should try to avoid
