HousingStageCert PAM-Penang 20120407

GUIDELINES ON THE 3
rd
SCHEDULE OF THE
STANDARD SALE & PURCHASE AGREEMENT
PAM Continuing Professional Development CPD Seminar
7th April 2011 PAM Northern Chapter Penang.
Pertubuhan Akitek Malaysia
Ar Chan Seong Aun
M Arch (Distinction), B Arch (Hons), B Bdg Sc (VUW, NZ), APAM, AIPDM, TAM
Architects Certification for Stage Completion
1. Housing Development Act 1966
2. Schedule-G Landed Properties
3. Schedule-H Subdivided Buildings
4. Issuance of CCC Certificate of Completion and Compliance
5. FAQs Frequently Asked Questions
Pertubuhan Akitek Malaysia Pertubuhan Akitek Malaysia
HOUSING DEVELOPMENT ACT
1966
Overview of the Housing Process
One Stop Submission & Approval - OSC
Four Stage Process
Conversion & Sub-Division
Conversion & Sub-Division
Planning approval
Building Plan approval
Issuance of CCC
More than 12 laws
8 Approving Authorities
COMMITTEE MEMBERS OF THE OSC
CHAIRMAN : MAYOR / YDP
SECRETARY : OSC DIRECTOR / PLANNER
MEMBERS 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
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
Laws Controlling the Housing
Development Process
National Land Code (Act 56) 1965
Town & Country Planning Act
Drainage Works Act (Act 354), (Revised 1988), 1954
Drainage Works Act (Act 354), (Revised 1988), 1954
Sewerage Services Act
Street, Drainage & Building Act (Act 133), 1974
Uniform Building By-Laws 1984
Housing Developers (Control and Licensing) Act 1966 (Act 118)
Housing Developers (Control and Licensing) Regulations 1989
Housing Developers (Housing Development Account)
Regulations 1991
Housing Developers (Control and Licensing) (Amendment)
Act 2002
Housing Developers (Control and Licensing) (Amendment)
Regulations 2002
Regulations 2002
Housing Developers (Housing Development Account)
(Amendment) Regulations 2002
Strata Titles Act 1985 (ACT 318)
Strata Titles (Federal Territory of Kuala Lumpur) Rules 1988
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
Principal HDA 1966
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
Housing Development
Act 1966
Housing Dev
Account Reg 1991
Tribunal for
House Buyers
Housing Dev
Regulation
Account Reg 1991
Reg 2002
Strata Titles Act
1985
1989
Strata Titles Act
2007
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 for 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
Housing Development Regulations 1989
Schedule of the SPA
Part 2 Notice to purchaser supported by certificate signed by vendors
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
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
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
No changes or deviations without the written consent of
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
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
1
st
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
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
17
th
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
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
Developers Licensing Act is to protect
the rights of the purchaser.
The key objective of the Uniform Building
The key objective of the Uniform Building
by-Laws is the protection of public
safety and health.
Preparing for Certification
Check to whether the project is within the COF or
CCC version of the Housing Developers Act. If BP
approval condition is COF, then apply for COF and
use Circular 4/2003
Check the details of the S&P Agreements to ensure
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 Circulars
1/2008, 2/2010 & 4/2003 or 3/2008
HOUSING CERTIFICATION
SCHEDULE-G LANDED PROPERTIES
Stages of Certification Schedule-G
Landed Properties
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
2(a) The
foundation and
Foundation works below
lowest floor level
Retaining wall if it is not
part of the foundation
foundation and
footing works of
the said Building
10%
lowest floor level
Piling & Pilecaps
Raft Slab
Footing
Stumps
Backfilling
Lowest floor slab NOT
Ground Beams
Services
C&S Engineer is to certify completion and compliance of structural
components before Architects Certification
STAGE 2(a) QUESTION
C&S Engineer has confirmed completion of the foundation works. Based on
the Engineers letter the Architect has certified completion of Stage 2(a)
even though the stumps have not been completed. This is a mistake by the
Engineer. Will the Architect still be held responsible?
YES. LAM can only hold the Architect responsible. LAM can not hold the
Engineer responsible no more than LAM can hold the Architects staff
responsible for any mistakes made by them.
The Engineer may be disciplined later by LJM but the Architect is not
absolved of the responsibility of checking for the completion of the works.
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
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
Non-structural ground
floor slabs w or w/o BRC
Stiffeners
Lintols
Non-structural RC
Hoods, aprons, gutters,
parapets
Structural walls
Retaining walls forming
part of the structure
parapets
RC staircases
RC walls not part of the
frame
Formworks do NOT need to be removed
Roof beams must be completed
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.
STAGE 2(b) QUESTION
The RC frame of a bungalow project has been completed. A week later the
first floor beams observed to have some structural cracks. Engineer issues
additional structural drawings.
Can the stage 2(b) certificate be issued prior to the completion of the
additional works / rectification works?
If the Architect has been kept informed about the status of the structural
works, it is obvious that the structural works had NOT been satisfactorily
works, it is obvious that the structural works had NOT been satisfactorily
completed. NO certificate under stage 2(b) can therefore be issued.
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT 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
Timber door & window
frames where sub-
frames are provided
lining frames are provided
Boundary walls
Fence Walls
Closing up of
construction openings
The above is for Circular 3/2008
Although metal window frames need not be installed at this stage,
Architects often face complaints and queries from Purchasers
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
2(d) Roofing,
Electrical wiring,
plumbing,gas
piping, internal
telephone
trunking and
cabling to the
said building
Roof structure, roofing
& flashing including car
porches
Electrical wiring
Water piping
Sanitary piping incl
bends joints & traps
Ceiling boards
Switch Boards
Switches
Electrical fixtures &
Fittings
Sanitary & Tap fixtures
& Fittings
Hot Water heaters
said building
10%
bends joints & traps
Gas piping
Telephone trunking
Hot Water heaters
Water tanks
Rain water down pipes
Gutters
Window Hoods
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
2(e) Internal &
External
Plastering of the
said Building
10%
All plastering to walls,
soffits, slabs, beams,
columns where specified
Wall tiles
Linings, boards and
panels to framed
partitions
Ceiling
Floor screeding and
floor finishes
Painting and other
finishes except wall tiles
Closing up of temporary
Tiling or plastering to
side of staircases
Ceiling side of staircases
Ceiling to water tank
area
STAGE 2(e) QUESTION
Wall tiling is not included in the S&P wording why does the LAM
guideline specifically only tiling. What about other forms of tiling like marble,
stone, etc. and other new wall finishing materials?
The LAM guidelines were formulated to reduce uncertainty for Architects in
their certification. Since the wall tiles are normally installed to replace the
plastering, it would be logical that these must also be completed along with
the plastering. The same would apply for any marble, stone and new
finishes that replace the plastering.
Note that wall paper, spray tiles, etc which replace painting are not include
in this phase as they do not replace the plastering but are applied on top of
it.
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
2(e) Internal &
External Finishes
of the said
Building including
the wall finishes
10%
All plastering to walls,
Wall tiles & Other wall
finishes
Linings, boards and
panels to framed
partitions
Door & Window panels
partitions
Floor screeding & other
floor finishes
Painting to internal &
external Walls Floors &
Ceiling
Under the CCC system, ALL Building works have to be completed
under stage 2(e) except external works
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
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
STAGE WORKS TO BE
COMPLETED
WORKS 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
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
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
Kerbs
Alignment of Roads may be Permanent or Temporary access as
approved by Local Authorities
SCHEDULE-H STRATA PROPERTIES
Stages of Certification Schedule-H
Sub-divided Building
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
2(a) The Work
Below Ground
Level of the said
Foundation works below
lowest floor level
Piling & Pilecaps
Retaining walls if not
Backfilling
Level of the said
Building
comprising the
said parcel
including
foundation of the
said building
10%
Piling & Pilecaps
Stumps
Raft Slab
Footing & Stumps
Backfilling
Lowest floor slab NOT
Ground Beams
Services
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)
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
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
Non-structural ground
floor slabs with or
without BRC
Wall stiffeners & Lintols
Non-structural RC
Hoods, aprons, gutters,
parapets
Structural walls
Roof Beams
Retaining walls forming
part of structural element
Of the said parcel
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
Shear walls form part of the primary
RC structure and must be completed
under stage 2(b)
Ground, 1
st
, 2nd and 3
rd
floor can be certified under stage 2(b)
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
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
Metal Frames
Door leaves
Window Panels
Window Louvres
Parapet walls
Boundary walls
Fence Walls
Closing up of
All FRAMEWORK for
dry Partitioning excluding
lining of partition
Closing up of
Timber door & window
frames where sub-
frames are provided
Parapet walls need NOT be completed for stage 2(c)
Walls required for
construction access need
NOT be completed for stage
2(c)
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
2(d)
Roofing/Ceiling,
Electrical wiring,
plumbing,gas
piping, internal
telephone
trunking and
cabling to the
Roof structure, roofing
& flashing, or
Floor slab soffits &
ceiling framing of the said
parcel
Electrical wiring within
parcel
Ceiling boards
Switch Boards
Switches
Electrical fixtures &
Fittings
Sanitary & Tap fixtures
& Fittings
Hot Water heaters
cabling to the
said parcel
10%
parcel
Water piping within
parcel
Sanitary piping within
parcel
Gas piping within parcel
Telephone trunking &
cabling within parcel
Hot Water heaters
Water tanks
Rain water down pipes
Gutters
Window hoods
1
st
floor has been completed to stage 2(d) if services are complete
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
2(e) Internal &
External Finishes
of the said parcel
including the wall
finishes
10%
All pastering to walls,
Wall tiles & other wall
finishes
Linings, boards and
panels to framed
partitions
Door & window panels
partitions
Floor screeding and/or
other floor finishes
Painting to internal &
external walls, floors and
ceilings (if any)
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
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
Testing &
commissioning
Water & electricity
connection
Refer page 18/18 of
circular
permanent or temporary
as approved by the
relevant authority)
Sewer Treatment Plant may be Permanent or Temporary
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
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
STAGE WORKS TO BE
COMPLETED
WORKS NEED NOT BE
COMPLETED
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
Footpaths
Roadside tablets
Final wearing course to
pre-mixed roads
Road markings
Road signages
approved by Local
Authorities)
Permanent roads
around the building
containing the said parcel
Entrance culvert serving
the building
Kerbs
Vacant possession can not
be issued yet as the bulk
meter has not been installed
yet
CCC
CCC
CERTIFICATE OF COMPLETION & COMPLIANCE
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
4.1 ISSUANCE OF CCC
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.
The local authorities still maintain their rights and power to enter the site
during construction and issue an order to stop the issuance of CCC by the
PSP if the construction on site is found to have breached the approved
building plans and/or against the provision of UBBL or conditions of building
plans approval on health and safety issues until such time the fault is
corrected.
The issuance of CCC is restricted to only technical issues concerning
ISSUANCE OF CCC
The issuance of CCC is restricted to only technical issues concerning
health, safety and essential services. The non-technical issues such as
bumiputra quota, low cost provision and contribution 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 (Form 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.
4.2 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?
ARCHITECT
HOUSE BUYER
TRIBUNAL
Contractual relationship of parties in
Housing Sell then Build
CONTRACTOR
HOUSING
DEVELOPER
HOUSE
BUYER
STD
SPA
PAM
CONTRACT
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
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
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.
CERTIFICATE OF COMPLETION & COMPLIANCE
Why BCA issue Temporary Occupation Permit (TOP) where
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.
PAM 98 CONTRACT
Quality standards in Architectural components cannot yet be defined
absolutely and requires the discretion of the Architect. The PAM98
contract also empowers the Architect to make the final decision
on quality with reasonable discretion.
The powers of the Architect however are not absolute, as the
Contractor can refer any matter in the contract including quality
matters to arbitration as outlined in clause 43.1(1) ..including any
matters to arbitration as outlined in clause 43.1(1) ..including any
matter or thing left by this contract to the discretion of the Architect.
Under the PAM form of Contract therefore the Architect decides
whether the quality of works are acceptable and NOT the
Employer
PAM 2006 CONTRACT
Quality standards in Architectural components cannot yet be defined
absolutely and requires the discretion of the Architect. The PAM2006
contract also empowers the Architect to make the final decision
on quality but refers more to the Contract in clause 6.1 shall
be to the respective quality and standard described in the
contract document and required by the Architect.
Contractor can refer any matter in the contract including quality
matters to arbitration as outlined in clause 34.5(b) .. any matter left
by 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
Rising Damp 33%
Defective Framing 20%
Illegal Building 30%
Timber Rot 46%
Typical building faults Typical building faults Typical building faults Typical building faults
Timber Rot 46%
Cracking Brickwork 43%
Electrical Problems 34%
Roofing Faults 54%
Water Problems 15%
Inspection Checklist for Clerk of Works
A comprehensive QC
checklist ensures works
a properly completed for
every stage of works.
CONDITIONS TO BE COMPLIED BEFORE VACANT
POSSESSION CAN BE GIVEN
1. Architect has issued CCC - Certificate of Completion and
Compliance
2. Water and electricity supply is ready for connection
3. Purchaser has paid all monies due under clause 4(1) in
accordance with the 3
rd
schedule
4. Purchaser has performed and observed all terms and convenants
on his part under the S&P
on his part under the S&P
FAQ
FAQ
FREQUENTLY ASKED QUESTIONS
5.1
WHAT ARE THE MOST COMMON HOUSE
BUYER COMPLAINS ?
Late Delivery
Non- payment of compensation for late
delivery
delivery
Defective workmanship & construction
quality
Non-conformance to approved plans
Number Of Complaints Received by States by Types For Year 2000
No
.
Types Of Complaints/States
SGR PLS P.P PRK KED N.S MEL JOH W.P KEL TRG PHG TOTAL
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
Total
656 2 216 110 72
84
42 83 441 23 9
85 1823
5.2
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
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
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
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.
The Contractor and House Buyer have NO
direct contractual relationship.
5.3
CAN A DEVELOPER JUST PASS THE
HOUSE BUYER DEFECTS LIST TO THE
CONTRACTOR ?
direct contractual relationship.
Contractors are therefore NOT obliged to
take instructions from house buyers
about their defects complains
ARCHITECT
HOUSE BUYER
TRIBUNAL
Contractual relationship of parties in
Housing Sell then Build
CONTRACTOR
HOUSING
DEVELOPER
HOUSE
BUYER
STD
SPA
PAM
CONTRACT
MORAL
ETHICAL
MANAGING CHANGES & UNCERTAINTY
STUTATORY
REQUIREMENTS
CONTRACTURAL
ISSUES
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 Developer
5.4 Release of Residual monies after CCC / CFO
(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.
Developer
QS
(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
(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 Developers Solicitor as
stakeholder.)
Architect
QS
(f) An amount needed as outstanding Developers
solicitors cost.
Lawyer
Developer
(g) Administrative expenses. Developer
(g) Administrative expenses. Developer
(h) Any other cost which has not been spelled out, as
above which the architect may deem necessary.
Balance may deem necessary Architect
Balance of payment to contractor Architect
QS
Balance of payment to consultant Consultants
Total (a) to (h) Architect
Add 10%for the contingencies and inflation
5.5 NON-COMFORMANCE TO APPROVED PLANS
What if the parcel height is constructed less than that shown in the
approved Building Plan? Can the Purchaser NOT accept the apartment?
Clause 11(1) of the S&P allows for errors in position and area of the parcel
and states The position. Measurement, boundaries and area of the said
parcel as given are believed but not guaranteed to be correct and if its
measurement, boundaries and area as shown in the Building Plan shall be
different from that shown in the strata title when issued, the purchase price
of the said parcel calculated at the rate stipulated in section 6 of the fifth
schedule shall be adjusted accordingly.
Based on this clause, the Purchaser is entitled to pro rata compensation
and according to clause 11(2) Any payment resulting from the adjustment
and required to be paid by the party concerned shall be so paid within 14
days of the issue of the strata title.
TYPE 1999 2000 2001 2002 2003 2004 2005 TOTAL %
Certification 32 14 9 17 8 16 12 108 53%
Defects 5 9 4 2 2 4 0 26 13%
Supplanting 1 3 0 1 0 2 0 7 3%
Delay in Obtaining CFO 5 0 0 0 0 0 1 6 3%
Housing Complains Against Architects
Source : Lembaga Arkitek Malaysia
Collabration with
NonRegistered Person 1 0 0 0 0 0 0 1 0%
Non-approved Practice 0 0 0 0 0 0 0 0 0%
Unprofessional Conduct 4 4 4 8 9 12 14 55 27%
TOTAL 48 30 17 28 19 34 27 203 100%
Housing Complains Against Architects
1999-2005
Source : Lembaga Arkitek Malaysia
Unprofessional Conduct
27%
Certification
54%
Defects
13%
Supplanting
3%
Delay in Obtaining CFO
3%
Collabration with NonRegistered
Person
0%
Non-approved Practice
0%
THANK YOU
Q&A
Q&A
chanseongaun@gmail.com

HousingStageCert PAM-Penang 20120407

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