1.

0 Introduction
The construction process is often described in the basic terms: the owner pays,
the designer designs and the contractor builds. This description is not so
accurate. This is because the construction projects have become complex,
most projects are sub-contracted to allow for specialisation. There is increased
dependence on sub-contracting within the construction industry since letting
work to subcontractors is a very common practice in construction industry. Subcontracting is not unique phenomenon to the construction industry. Indeed,
practice in the construction industry seems to be following in the footsteps of
many other non-construction businesses.
Generally, the main contractors role is in contractual, financial, and
administrative matters, the main contractor perform only a small portion of the
hands-on work in the construction. It is a fact that the relationship between the
main contractor and subcontractors affects the success of the project. However,
the strain in the relationship between the main contractor and subcontractors
cannot be overemphasized in the construction industry. The problems in the
relationship between the main contractor and subcontractors leading to delays
and at times abandonment.
In Malaysia construction industry, there are several standard forms of main
contracts and also for nominated subcontract yet there has never been any
published standard form of domestic subcontract. Hence, most of the
subcontract between main contractor and domestic subcontractor are
unpublished in house contracts, ad-hoc or one-off contract.
One of the studies was found out that one of the problems faced by domestic
subcontractor is poor contractual terms. It is due to the non-standard form of
domestic subcontract. Domestic subcontracts are frequently entered into on
most informal basis by using non-standard form for their subcontract with the
main contractor. Basically, the contract term was drafted by the main contractor.
Many contractors impose their own standard terms on sub-contractors which
these often contain one-sided provisions which place the subcontractors at a
disadvantage in a dispute.

2.0 Discussion: Partnering the works to another subcontractor

without getting approval of the main contractor
There are three types of subcontractors provided for in standard forms of
contract for construction works, namely:
a. domestic subcontractor: subcontractor appointed by the main contractor
at his discretion;
b. nominated subcontractor: a subcontractor nominated by the employer
which the contractor is obliged to appoint as a subcontractor
c. selected subcontractor: a subcontractor selected by the contractor in
consultation with the employer in terms of the requirements of the
contract
The main contractor has no control over the appointment of nominated
subcontractors. Accordingly, if there is any delay in the appointment of such a
subcontractor for whatever reasons, the employer is liable for any expenses
and costs that the main contractor may incur as a result of such delay.
The main contractor has control over the appointment of selected
subcontractors if he is made responsible for the procurement process. As a
result, the employer is not liable for any expenses or costs associated with a
delay in the appointment of the selected subcontractor, unless the employer or
the employers representative is responsible for developing the selected
subcontractors procurement documents or controlling the procurement
process.
Traditionally, the employers have no control over domestic subcontractor and
only have a contractual relationship with the main contractor. The employers
regard subcontracting issues of domestic subcontractor to be the main
contractors problem and of no concern to them. However, if there is delay or
poor quality of work due to the domestic subcontractors, the clients may ask
the contractors to take the responsibilities. Hence, the subcontractors
performance is under the responsibility of the main contractor.
Partnering the works to another subcontractor without getting approval of the
main contractor is one of the main issue in the construction industry. At times,
some subcontractor having secured a job with the main contractor and do
sublet it to a colleague in the same specialty. Main contractors frown at this
situation because the new subcontractors previous works had not been
assessed by them; hence might not be sure of the quality of his work and this
may cause delay in the project.

3.0 Traditional Procurement in Use in Asia and United Arab Emirates.

3.1 Malaysia
Standard Form of Contract to be used where Bills of Quantities form part
of the Contract PWD 203A (Rev.2007) published by Jabatan Kerja Raya
(JKR)
Standard Form of Contract to be used where Drawings and
Specifications form part of the Contract PWD 203A (Rev.2007)
published by Jabatan Kerja Raya (JKR)
Standard Form of Sub-Contract for Nominated Sub-Contractor where
The Main Contract is based on Form PWD 203 or 203A, PWD 203N
(Rev.2007) published by Jabatan Kerja Raya (JKR)
Standard Form of Sub-Contract for Nominated Suppliers where The
Main Contract is based on Form PWD 203 or 203A, PWD 203P
(Rev.2007) published by Jabatan Kerja Raya (JKR)
Agreement and Conditions of PAM Contract 2006 (With Quantities)
published by Pertubuhan Akitek Malaysia (PAM)
Agreement and Conditions of PAM Contract 2006 (Without Quantities)
published by Pertubuhan Akitek Malaysia (PAM)
CIDB Standard Form of Contract for Building Works 2000 Edition
published by Construction Industry Development Board Malaysia (CIDB)
CIDB Standard Form of Sub-Contract for Nominated Sub-Contractor for
use in conjunction with the CIDB Standard Form of Contract for Building
Works Form CIDB B(NSC)/2002 published by Construction Industry
Development Board Malaysia (CIDB)
3.2 Singapore
Articles and Conditions of Building Contract published by the Singapore
Institute of Architects 9th Editon 2011 (Measurement contract)
Articles and Conditions of Building Contract published by the Singapore
Institute of Architects 9th Editon 2011 (Lump Sum Contract)
Conditions of Sub-Contract for use in conjunction with the Main Contract
(Lump Sum and Measurement Contract) published by the Singapore
Institute of Architects
The Royal Institute of British Architects (RIBA)
The Joint Contracts Tribunal (JCT).
Public Sector Standard Conditions of Contract for Construction Works
2014 (Seventh Edition July 2014)
Standard Conditions of Nominated Sub-Contract 2008 For Use in
conjunction with the Public Sector Standard Conditions of Contract for
Construction Works 2008/2014

3.3China
Building and Engineering Construction Contract, issued by the Ministry
of Construction and the Department of Labour and Commerce, 2007
edition
Building and Engineering Construction Specialist Sub-contract, issued
by the Ministry of Construction and the Department of Labour and
Commerce, 2007 edition
Building and Engineering Construction Labour Sub-contract, issued by
the Ministry of Construction and the Department of Labour and
Commerce, 2007 edition
3.4 Hong Kong
Agreement and Schedule of Conditions of Building Contract for use in
Hong Kong Special Administrative Region (Standard Form of Building
Contract Private Edition With Quantities 2005 edition)
Agreement and Schedule of Conditions of Building Contract for use in
Hong Kong Special Administrative Region (Standard Form of Building
Contract Private Edition Without Quantities 2006 edition)
Agreement and Schedule of Conditions of Nominated Sub-Contract for
use in Hong Kong Special Administrative Region, 2005 edition
Agreement and Schedule of Conditions of Nominated Supply for use in
Hong Kong Special Administrative Region, 2005 edition
General Conditions of Contract for Building Works published by the
Government of the Hong Kong Special Administrative Region 1999
Edition.
Sub-Contract for Building Works to be used in conjunction with the
General Conditions of Contract for Building Works (1999 edition)
published by the Government of the Hong Kong Special Administrative
Region, 2000 edition
Standard Form of Contract for Minor Works (1992, 1st edition, first
admendment published January 2003, English and Chinese)
General Conditions of Contract for Civil Engineering Works published by
the Government of the Hong Kong Special Administrative Region 1999
Edition.
3.5 United Arab Emirates
FIDIC Conditions of Contract for Construction published by the
Federation Internationale des Ingenieurs-Conseils, 1st Edition 1999
NEC3 Engineering and Construction Contract published by the NEC,
June 2005 (with Amendmentd June 2006)

4.0 Standard Form of Contract in Use in Malaysia

4.1 CIDB Standard Form of Contract for Building Works 2000
Clauses

Explanation

7 GENERAL OBLIGATIONS OF THE CONTRACTOR

7.3 Contractors Responsibility for Sub-contractors
Unless the Contract otherwise provides, the Contractor
shall make good any damage, loss or injury suffered by the
Employer by reason of any breach of contract, repudiation,
default or failure on the part of his subcontractors or
suppliers whether nominated or privately engaged by the
Contractor, and shall indemnify the Employer against all
and any loss, expense, costs, damages, liability or claim
arising from such breach of contract, repudiation, default or
failure.

The sub-contractors are

under
main
contractor
responsibilities, hence the
main contractor has to bear
the risk of the consequences
of the new sub-contractors
performance even though
the sub-contractors are not
approved by them.

20 TIME FOR COMPLETION

The main contractor shall
20.1 Contractor to Complete on Time
complete the works on time.
Subject to Clause 24, the Contractor shall complete the
Works within the Time or Times for Completion stated in (in
order of priority):
(a) the Letter of Award; or
(b) the Appendix; or
(c) elsewhere in the Contract Documents;
as the case may be.

24 DELAY AND EXTENSION OF TIME

24.1 Extension of Time
Provided that the Contractor has carried out the Works or
any section of the Works with due diligence and has taken
all reasonable steps to avoid or reduce such delay, the Time
for Completion of the Works or any section of the Works
may be extended by the Superintending Officer by such
further period or periods of time as may reasonably reflect
delay in completion of the Works or any section of the
Works which has been or is being caused by any or more
of the following events:
(c) Industrial action by workmen, strikes, lock-outs or
embargoes affecting any of the trades employed upon the
Works or in the preparation, manufacture or transportation
of any Equipment, materials or goods for the Works and
provided that the same are not due to any unreasonable act
or default of the Contractor or of any sub-contractor or
supplier. Provided that this event shall only apply if the
industrial action by workmen, strike, lock-out or embargo
causing delay is in Malaysia;

The main contractor is not

entitled to Extension of Time
by
the
Superintending
Officer if the delay is caused
by the sub-contractors. The
main contractor has to bear
the risk of the delay of the
new sub-contractors

26 NON-COMPLETION AND DAMAGES FOR DELAY IN

COMPLETION
26.2 Damages for Non-Completion
(a) Upon the receipt of a Certificate of Non-Completion the
Employer shall be entitled to recover from the Contractor
Liquidated Damages calculated at the rate stated in the
Appendix for the period from the Time for Completion or
any extended Time for Completion where applicable to the
Date of Practical Completion, and may deduct such
Liquidated Damages, whether in whole or in part, from any
payment due or to become due to the Contractor under
the Contract.

The main contractor need to

pay or allow the liquidated
damages to the employer
calculated at the rate stated in
the Appendix for the period
from the Time for Completion
or any extended Time for
Completion where applicable
to the Date of Practical
Completion if there any delay
even though is due the default
(b) The payment or deduction of such Liquidated of sub-contractors.
Damages shall not relieve the Contractor from his
obligation to complete the Works or from any other of his
obligations and liabilities under the Contract.

40 ASSIGNMENT AND SUB-CONTRACTING

40. 4 Sub-contracting
(a) The Contractor shall not sub-contract the whole of the
Works. Except where otherwise provided in the Contract,
the Contractor shall not sub-contract any part of the Works
without the prior consent of the Superintending Officer.
Any such consent shall not relieve the Contractor from any
liability or obligation under the Contract and he shall be
responsible for the acts, defaults and neglects of any subcontractor, his agents, servants or workmen as fully as if
they were the acts, defaults or neglects of the Contractor,
his agents, servants or workmen.

The main contractor shall be

responsible for the acts,
defaults and neglects of any
sub-contractor. However, the
main contractor shall not be
required to obtain such
consent
for
the
subcontracting of any part of the
Works for which the Subcontractor is nominated under
the Contract.

Provided that the Contractor shall not be required to obtain

such consent for:
(iii) the sub-contracting of any part of the Works for which
the Sub-contractor is nominated under the Contract.

4.2 CIDB Standard form of Sub-Contract for Nominated SubContractor 2007

Clauses
Explanation
1 General obligations
The new sub-contractors
1.3 The Contractors and Subcontractors general may not be under the
obligations
insurance since the main
1.3.1 The Contractors and Subcontractors general
contractor
did
not
obligations include the following:
acknowledge them at first and
(i) To cooperate with each other and all others involved in could not take up those legal
the overall project and not to disrupt anyone or cause procedures.
anyone to incur any of the following:
(a) physical injury to persons or damage to property;
(b) financial loss or expense.
(ii) To take up the following insurance:
(a) insurance that must be taken under the laws at the
place where the work is done; and
(b) insurance stated in this contract to be taken by each
party, if any.
(iii) To comply with all laws at the place where the work is
done.

3 Time obligations
3.2 Work programme
3.2.3 Both the Contractor and Subcontractor must update
their own work programmes whenever there are significant
changes which affect their work programmes. Whenever
one party to this contract updates any programme, a copy
must be given to the other party to this contract and to the
Contract Administrator.

Both the main contractor and

sub-contractors must update
their own work programmes
whenever there are significant
changes which affect their
work programmes. However,
this will be difficult because the
new sub-contractors involve
in the project without the main
contractors
acknowledgement

3.3 Work progress

The main contractor will face
3.3.1 The Subcontractor must progress with the work in a difficulties to admin the work
timely manner, taking into account:
progress by new sub(i) the Subcontractors date for completing the work;
contractors because there is
(ii) progress of the Contractors work; and
no legal bond between them.
(iii) any disruption incurred.
3.4 Date for completing the work
3.4.1 The Subcontractor must complete the work not later
than the date stated in C.9.
The date for completing the work may be adjusted
according to provisions in this contract.

3.9 Compensation for completing late

3.9.1 If the Subcontractor does not complete the work by
the date for completing the work provided in this contract,
the Subcontractor must pay financial compensation for the
delay to the Contractor.
3.9.2 Financial compensation for delay is calculated for
delay between when the Subcontractors work should
have been completed (the current date for completing the
work) and when the work is actually completed (as
confirmed by the Contract Administrator in a practical
completion certificate).
3.9.3 The rate for financial compensation for delay may be
pre-specified as liquidated damages. This, if any, is stated
in C.13 or it may be stated elsewhere in this contract.
3.9.4 If a pre-specified rate for financial compensation as
liquidated damages for delay is not stated anywhere in this
contract, the Contract Administrator must assess and
certify in payment certificates a reasonable amount of
compensation for direct financial loss and expense
incurred by the Contractor due to the Subcontractors
delay.
3.9.5 The Contractor may waive the right to financial
compensation for delay but this must be done in writing.

Since there is no legal bond

between the main contractors
and the new sub-contractors,
this will be difficult to protect the
main contractor right to claim the
loss due to late completion
because of the new subcontractors.

5 Quality, safety, health, and environmental The main contractor will face
obligations
problem to admin the work quality
5.1 Quality
by
new
sub-contractors
5.1.1 The Subcontractor must complete the work based
because the new sub-contractor
on the provisions in this contract.
did not undergo the main
5.2 Breach of contract provisions relating to quality of contractor assessment and there
is no contractual relationship
work
5.2.1 If the Subcontractor breaches any provision in this between them.
contract relating to the quality of the work, the
Subcontractor must rectify the breach immediately. If the
breach is not rectified immediately, the Contract
Administrator must do one of the following:
(i) Instruct the Subcontractor to rectify the breach, clearly
identifying the breach in writing. If the Subcontractor does
not rectify the breach within 14 days from the date the
Subcontractor receives the instruction, the Contract
Administrator may get others to rectify the breach. The
Contract Administrator must then charge the
Subcontractor the cost of rectifying the breach in payment
certificates; or
(ii) Write to the Subcontractor instructing the breach not to
be rectified. The Contract Administrator must then adjust
the value of the work done, taking into account the breach,
in payment certificates.
5.2.2 The Contract Administrator may continue to act on
any breach by the Subcontractor relating to the quality of
work throughout the contract until the final completion
certificate is issued.
8

5.0 Standard Form of Contract in Use in Singapore

5.1 PUBLIC SECTOR STANDARD CONDITIONS OF CONTRACT FOR
CONSTRUCTION WORKS 2014

Clauses

Explanation

4 GENERAL OBLIGATIONS OF THE CONTRACTOR

4.3 Contractor's Responsibility for Subcontractors
Save as otherwise expressly provided in the Contract, the
Contractor shall make good any damage, loss or injury
suffered by the Employer by reason of any breach of
contract, repudiation, default or failure, whether total or
partial, on the part of any subcontractor or supplier
whether nominated or privately engaged by the
Contractor, and shall indemnify the Employer against all
and any loss, expense, costs, damages, liability or claim
arising therefrom.

The sub-contractors are under

main
contractor
responsibilities, hence the
main contractor has to bear
the risk of the consequences
of the new sub-contractors
performance even though the
sub-contractors
are
not
approved by them.

14 TIME FOR COMPLETION

14.1 Contractor to Complete on Time
The Contractor shall complete the Works and any phase
or part of the Works within the Time or Times for
Completion stated in:
(a) The Letter of Acceptance; or
(b) The Appendix, as the case may be.

The main contractor shall

complete the works on time.

14.2 Extension of the Time for Completion

The time within which the Works or any phase or part of
the Works is to be completed may be extended by the
Superintending
Officer
either
prospectively
or
retrospectively and before or after the Time for Completion
by such further period or periods of time as may
reasonably reflect delay in completion of the Works which,
notwithstanding due diligence and the taking of all
reasonable steps by the Contractor to avoid or reduce
such delay, will or might be or has been caused by any of
the following events:
(c) Industrial action by workmen, strikes, lock-outs or
embargoes affecting any of the trades employed upon the
Works or in the preparation, manufacture or transportation
of materials or goods required for the Works and provided
the same are not due to any unreasonable act or default
of the Contractor or of any subcontractor. Provided that
this event shall only apply if the industrial action by
workmen, strike, lock-out or embargo causing the delay is
in Singapore.

The main contractor is not

entitled to Extension of Time
by the Superintending Officer
if the delay is caused by the
sub-contractors. The main
contractor has to bear the risk
of the delay of the new subcontractors

16 LIQUIDATED DAMAGES
16.1 Payment by the Contractor
(1) If the Works shall not have been substantially completed
within the Time for Completion or any extended time made
pursuant to Clause 14, the Contractor shall pay or allow to
the Employer liquidated damages calculated at the rate or
rates stated in the Appendix hereto for the period during
which the Works shall so remain incomplete and the
Employer may recover the amount of such liquidated
damages from the Contractor. The payment or deduction of
such damages shall not relieve the Contractor from his
obligation to complete the Works or from any other of his
obligations and liabilities under the Contract.

The main contractor need to

pay or allow the liquidated
damages calculated at the
rate or rates stated in the
Appendix hereto for the period
during which the Works shall
so remain incomplete to the
employer if there any delay
even though is due the default
of sub-contractors.

30 ASSIGNMENT AND SUBCONTRACTING

30.2 Subcontractors
The Contractor shall ensure that all subcontractors,
appointed directly by the Contractor, are registered with the
Building and Construction Authority or other government
registration body at the time of their appointment. Except
where expressly provided by the Contract, the Contractor
shall not engage or permit the engagement of any
subcontractor without the prior written consent of the
Superintending Officer, which consent shall not be
unreasonably withheld.

The new sub-contractors

may not registered with the
Building and Construction
Authority or other government
registration body.

5.2 STANDARD CONDITIONS OF NOMINATED SUB-CONTRACT 2008

for use in conjunction with the PUBLIC SECTOR STANDARD
CONDITIONS OF CONTRACT FOR CONSTRUCTION WORKS 2008/2014

Clauses

Explanation

10 Assignment and Sub-letting of Sub-Contract Works The sub-contractors are not

The Sub-Contractor shall not assign the Sub-Contract nor allowed to sub-let their work to
sub-let the Sub-Contract Works or any portion of the same another sub-contractors
without the written consent of both the Contractor and the
Superintending Officer provided that the consent of the
Contractor shall not be unreasonably withheld and that in
case of any difference of opinion between the Contractor
and the Superintending Officer the opinion
of the Superintending Officer shall prevail.

10

6.0 FIDIC Conditions of Contract for Construction for Building and

Engineering Works Designed by the Employer 1999

Clauses

Explanation

4.The Contractor
4.4 Subcontractors
The Contractor shall not subcontract the whole of the
Works.
The Contractor shall be responsible for the acts or defaults
of any Subcontractor, his agents or employees, as if they
were the acts or defaults of the Contractor. Unless
otherwise stated in the Particular Conditions:
(a) the Contractor shall not be required to obtain consent to
suppliers of Materials, or to a subcontract for which the
Subcontractor is named in the Contract;
(b) the prior consent of the Engineer shall be obtained to
other proposed Subcontractors;
(c) the Contractor shall give the Engineer not less than 28
days notice of the intended date of the commencement of
each Subcontractors work, and of the commencement of
such work on the Site; and
(d) each subcontract shall include provisions which would
entitle the Employer to require the subcontract to be
assigned to the Employer under Sub-Clause 4.5
[Assignment of Benefit of Subcontract] (if or when
applicable) or in the event of termination under Sub-Clause
15.2 [Termination by Employer].

The sub-contractors are under

main
contractor
responsibilities, hence the
main contractor has to bear the
risk of the consequences of the
new
sub-contractors
performance even though the
sub-contractors
are
not
approved by them.

4.9 Quality Assurance

The Contractor shall institute a quality assurance system to
demonstrate compliance with the requirements of the
Contract. The system shall be in accordance with the details
stated in the Contract. The Engineer shall be entitled to
audit any aspect of the system.

The main contractor will face

problem to ensure the work
quality
by
new
subcontractors because the new
sub-contractor did not undergo
the
main
contractor
Details of all procedures and compliance documents shall assessment and there is no
be submitted to the Engineer for information before each contractual
relationship
design and execution stage is commenced. When any between them
document of a technical nature is issued to the Engineer,
evidence of the
prior approval by the Contractor himself shall be apparent
on the document itself.
Compliance with the quality assurance system shall not
relieve the Contractor of any of his duties, obligations or
responsibilities under the Contract.

11

8. Commencement, Delays and Suspension

8.2 Time for Completion
The main contractor shall
The Contractor shall complete the whole of the Works, and complete the works on time.
each Section (if any), within the Time for Completion for the
Works or Section (as the case may be),including:
(a) achieving the passing of the Tests on Completion, and
(b) completing all work which is stated in the Contract as
being required for the Works or Section to be considered to
be completed for the purposes of taking over under SubClause 10.1 [Taking Over of the Works and Sections].

8.4 Extension of Time for Completion

The Contractor shall be entitled subject to Sub-Clause 20.1
[Contractors Claims] to an extension of the Time for
Completion if and to the extent that completion for the
purposes of Sub-Clause 10.1 [Taking Over of the Works
and Sections] is or will be delayed by any of the following
causes:
(a) a Variation (unless an adjustment to the Time for
Completion has been agreed under Sub-Clause 13.3
[Variation Procedure]) or other substantial change in the
quantity of an item of work included in the Contract,
(b) a cause of delay giving an entitlement to extension of
time under a Sub-Clause of these Conditions,
(c) exceptionally adverse climatic conditions,
(d) Unforeseeable shortages in the availability of personnel
or Goods caused by epidemic or governmental actions, or
(e) any delay, impediment or prevention caused by or
attributable to the Employer, the Employers Personnel, or
the Employers other contractors on the Site. If the
Contractor considers himself to be entitled to an extension
of the Time for Completion, the Contractor shall give notice
to the Engineer in accordance with Sub-Clause 20.1
[Contractors Claims]. When determining each extension of
time under Sub-Clause 20.1, the Engineer shall review
previous determinations and may increase, but shall not
decrease, the total extension of time.

The main contractor is not

entitled to Extension of Time
for completion if the delay is
caused by the sub-contractors
since there is no sub clauses
mention this. The main
contractor has to bear the risk
of the delay of the new subcontractors

8.5 Delays Caused by Authorities

If the following conditions apply, namely:
(a) the Contractor has diligently followed the procedures
laid down by the relevant
legally constituted public authorities in the Country,
(b) these authorities delay or disrupt the Contractors work,
and
(c) the delay or disruption was Unforeseeable,
then this delay or disruption will be considered as a cause
of delay under subparagraph
(b) of Sub-Clause 8.4 [Extension of Time for Completion].

12

8.7 Delay Damages

If the Contractor fails to comply with Sub-Clause 8.2 [Time
for Completion], the
Contractor shall subject to Sub-Clause 2.5 [Employers
Claims] pay delay damages to the Employer for this default.
These delay damages shall be the sum stated in the
Appendix to Tender, which shall be paid for every day which
shall elapse between the relevant Time for Completion and
the date stated in the Taking-Over Certificate. However, the
total amount due under this Sub-Clause shall not exceed
the maximum amount of delay damages (if any) stated in
the Appendix to Tender. These delay damages shall be the
only damages due from the Contractor for such default,
other than in the event of termination under Sub-Clause
15.2 [Termination by Employer] prior to completion of the
Works. These damages shall not relieve the Contractor
from his obligation to complete the Works, or from any other
duties, obligations or responsibilities which he may have
under the
Contract.

The main contractor need to

pay the delay damages as be
the sum stated in the Appendix
to Tender calculated at the rate
or rates stated in the Appendix
hereto for the period during
which the Works shall so
remain incomplete to the
employer if there any delay
even though is due the default
of sub-contractors.

13

7.0 Comparison of Contracts

Based on the three contracts, comparisons are made on the perfectness of the
contract to prevent the sub-contractors to sub-let their works to another subcontractors without approval of the main contractor.

Malaysia
CIMB Standard
Form of Contract
for Building Works
CIMB Standard
form of SubContract for
Nominated SubContractor

Singapore
Public Sector
Standard
Conditions of
Contract for
Construction
Works
Public Sector
Standard
Conditions of
Nominated SubContract

FIDIC
Conditions of Contract for
Construction for Building
and Engineering Works
Designed by the Employer

There is main contract and

sub-contract.

There is main contract and

sub-contract.

There is only main contract

The sub-contractors are

under main contractor
responsibilities

The sub-contractors are

under main contractor
responsibilities

The sub-contractors are

under main contractor
responsibilities

There is no clause or sub- There is clause to prevent There is no clause or subclause in the sub-contract to the sub-contractors to sub- clause in the contract to
prevent the sub-contractors let their works
prevent the sub-contractors
to sub-let their works
to sub-let their works
However, there is clause in
main contract to prevent the
contactor to sub-let their
works.

There is also clause in main

contract to prevent the
contactor to sub-let their
works.

There is no clause in the

contract to prevent the
contractors to sub-let their
works

The main contractor is not

entitled to Extension of Time
by
the
Superintending
Officer if the delay is caused
by the sub-contractors.

The main contractor is not

entitled to Extension of Time
by
the
Superintending
Officer if the delay is caused
by the sub-contractors.

The main contractor is not

entitled to Extension of Time
by
the
Superintending
Officer if the delay is caused
by the sub-contractors.

14

8.0 Conclusion
Construction is fragmented industry hence procurements are needed to ensure
the success of the project. There are many forms of contract used in the
construction industry. In Malaysia, there is CIDB Standard Form of Contract
and CIDB Standard Form of Sub-Contract.
The issue regarding partnering the works to another subcontractor without
getting approval of the main contractor is common in the construction industry.
Hence to prevent this phenomenon, amendments should be done in the CIDB
Standard Form of Contract by preventing the sub-contractors to sub-let their
works.
Besides, there is always no proper form of contract for between the domestic
subcontractors and the main contractor. This is also one of the main causes of
partnering the works to another subcontractor without getting approval of the
main contractor since there is no contractual relationship between the main
contractor and the domestic subcontractor.
Through this project we have the opportunity to go through different standard
forms of contract from different countries and also the international contract.
We even learnt that there are different type of contracts : main contract between
the employer and the main contractor, the sub-contract between the main
contractor and the sub-contractor and also there is another type of sub-contract
which is for the nominated supplier.

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9.0 References
1. Ojo Stephen Okunlola. The Effect of Contractor-Subcontractor
Relationship on Construction Duration in Nigeria. International Journal
of Civil Engineering and Construction Science.Vol. 2, No. 3, 2015, pp.
16-23.
2. eprints.utm.my/6414/4/NorMarinaRosliMFAB2007TTTCHAP1.pdf
3. http://www.kpkqs.com/download/annual_cost_digest_2010/constructio
n_procurement_essentials.pdf
4. http://cidb.org.za/publications/Documents/Practice%20Note%207.pdf
(cidbs inform practice notes Version 1 - May 2007)
5. CIDB Standard Form of Contract for Building Works 2000
6. CIDB Standard form of Sub-Contract for Nominated Sub-Contractor
2007
7. Public Sector Standard Conditions of Contract for Construction Works
2014 (Seventh Edition July 2014)
8. Standard Conditions of Nominated Sub-Contract 2008 For Use in
conjunction with the Public Sector Standard Conditions of Contract for
Construction Works 2008/2014
9. FIDIC Conditions of Contract for Construction for Building and
Engineering Works Designed by the Employer 1999

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