ecm 753: construction law and contract...

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ECM 753: CONSTRUCTION LAW AND CONTRACT

PROCEDURE

Introduction*

DR CHE KHAIRIL IZAM CHE IBRAHIM 0124947874 / chekhairil449@ppinang.uitm.edu.my

IR DR SYUHAIDA ISMAIL 0126469235 / syuhaida.kl@utm.my / razakschool.utm.my/syuhaida

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• Name • Background (Academic and experience) • Professional qualification • From which academic institution / university / department etc.

• Level of knowledge/experience in law

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ICE BREAKING

ASSESSMENTS!

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1 Test 1 x 10% 10% 2 Individual Assignment 1 x 30% 20 % 3 Group Project 1 x 20% 20 %

4 Final Examination 1 x 40% 50 %

Total 100 %

•  General principle of Malaysian law by Lee Mei

Pheng / Business Law by Lee Mei Pheng & Ivan

Jeron Detta, Oxford Univ Press, 2009

•  Contracts Act 1950 (Act 136)

•  Arbitration Act 2005

•  IEM Form of Contract

•  Law dictionary

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Requirements for ECM774

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Part 1: Malaysian Legal System Part 2: Law of Contract Part 3: Law of Torts

Part 4: Construction Contract Management 4.1 Standard Form of Contract 4.2 Legal Aspects of Standard Form 4.3 Responsibility and Liability of An Engineer 4.4 Dispute Resolution

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COURSE CONTENT

1.  Understand how the legal framework involves in the construction industry.

2.  Know the term of contract, right and duties, discharge of contract, remedies for breach of contract.

3.  Know the nature and types of arbitration and the course.

4.  Understand the construction contracts. 5.  Understand the responsibilities of engineer and

liability.

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Course Outcome

Week Topics Remark

1 7/9/15- 11/9/15

Introduction to Construction Law •  Composition of construction law Malaysia legal system part 1 •  Overview of Malaysia legal system •  Fundamental of Malaysian Law – Malaysian common law

Sources of law

2 14/9/15- 18/9/15

Malaysia legal system part 2 •  Composition of Malaysia legal system •  Malaysia court system and doctrine of stare decisis

*CUTI HARI MALAYSIA

3 21/9/15- 25/9/15

The law of contract part 1. •  Legally binding and enforceable construction contracts •  Privity of contract •  Conditions and warranties •  Standard contracts and exemption clauses

4 28/9/15- 2/10/15

The law of contract part 2. •  Voidable contracts. •  Void and illegal contracts •  Discharge from further performance under the contracts •  Remedies for breach of contract

Submission of Individual

Assignment

5 5/10/15- 9/10/15

The law of tort part 1 •  The nature of the law of tort •  Trespass, nuisance and strict liability in construction.

Group Project

6 12/10/15- 16/10/15

The law of tort part 2. •  Negligence and professional negligence. •  Vicarious liability. •  Occupier liability

CUTI AWAL MUHARRAM

Lesson&Plan&

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Week Topics Remark

7 19/10/15- 23/10/15

Engineering and Construction Contracts •  Stages in Construction Contract Administration •  Major Standard Forms of Construction Contracts

PWD 203A FIDIC 1999 Red

Book IEM Form of

Contract PAM 2006

8 26/10/15- 30/10/15

Engineering and Construction Contracts • Legal Background to Standard Forms of Construction Contracts

TEST 1 (TENTATIVE)

9 2/11/15- 6/11/15

Engineering and Construction Contracts •  Engineers and Consultants •  Engineer as a Contract Administrator •  Contractors and Subcontractors

10 16/11/15- 20/11/15

Engineering and Construction Contracts •  Dispute Avoidance, Settlement and Resolution in Engineering Projects

11 23/11/15- 27/11/15

Engineering and Construction Contracts •  Dispute Resolution in Engineering Projects •  Litigation •  Alternative Dispute Resolution •  Adjudication •  Arbitration

12 30/11/15- 4/12/15

Ethics, Responsibility and Liability of an Engineer •  Professional responsibility •  Legal responsibility •  Professional Indemnity Insurance

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7/12/15- 11/12/15

Ethics, Responsibility and Liability of an Engineer •  Professional responsibility •  Legal responsibility •  Professional Indemnity Insurance

SULTAN SELANGOR’S

BIRTHDAY

Lesson&Plan&

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OVERVIEW*OF*MALAYSIA*LEGAL*SYSTEM*

•  A&body&of&principles&recognised&and&applied&by&the&states&in&the&administrative&of&justice&

•  Consists&of&rules&recognised&and&acted&by&court&

•  Enforced&by&sanctions&(punishment)&

What&is&Law?&

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•  Native&legal&system&(Negrito,&Senoi&and&Malay&Aborigin)&

•  The&Malacca&Sultanate&

•  The&spread&of&Islam&to&South&East&Asia&

•  The&extension&of&British&colonial&

Law&in&Malaysia&I&History&

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Senoi, the hunter-gatherers of Peninsular (West) Malaysia

Negrito, the ethnic groups who inhabit isolated parts of Southeast Asia

•  Peninsular,&Sabah&and&Sarawak&–&1&political&unit&yet&different&sets&of&law&

•  2&common&links:&•  Parliament&can&and&does&whole&country&legislation&

•  Federal&Court&is&the&final&court&of&appeal&for&the&whole&country&

•  Internationally,&Malaysia&is&a&state&

•  Locally,&within&Malaysia&there&are&13&states&–&each&has&a&government&and&rules&

•  Malaysian&written&constitution&i.e.&Federal&Constitution&as&supreme&law&

Law,&State&and&Constitution&

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Categories of Law

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Per Content Per Sources Per Enforcement

Substantive Law [rights & legal power]

Procedural Law

Written Law

Unwritten Law

Public Law

Private Law

International Law

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Sources&of&Malaysian&Law&

Written&

Federal&and&State&

Constitution&Legislations& Regulations/

Sublegislations&

Unwritten&

Principle&English&Law&

Judicial&decisions&

Customary&law/way&of&life& Islamic&law&

•  Supreme&law&of&the&country&

•  Under&a&power&of&Federal&and&State&Governments&

•  Outline&individual&rights&

•  Can&be&changed&by&a&2/3&majority&of&the&total&legislature&

•  Comprises&Articles&(provides&items&e.g.&name&of&federation,&religion,&liberties&(freedom),&citizenship,&election,&judiciary&power&etc)&

&

Written&Federal&Constitution&

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Sources&of&Malaysian&Law&

Written&

Federal&and&State&

Constitution&Legislations& Regulations/

Sublegislations&

Unwritten&

Principle&English&Law&

Judicial&decisions&

Customary&law/way&of&life& Islamic&law&

•  Laws&enacted&by&a&body&constituted&for&this&purpose&

•  In&Malaysia,&laws&are&legislated&by&Parliament&

•  Laws&enacted&before&1957&are&known&as&Ordinances,&after&1957&are&Acts&

•  Laws&enacted&by&State&Legislative&Assemblies&(Dewan&Undangan&Negeri)&are&called&Enactments&(Sarawak&–&Ordinances)&

•  Used&as&a&mean&of&repealing,&amending,&enacting&or&codifying&the&law&

Written&Legislation&

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Sources&of&Malaysian&Law&

Written&

Federal&and&State&

Constitution&Legislations& Regulations/

Sublegislations&

Unwritten&

Principle&English&Law&

Judicial&decisions&

Customary&law/way&of&life& Islamic&law&

•  Any&proclamation,&regulation,&order,&notification,&byIlaw&or&other&instrument&made&under&any&ordinance,&enactment&or&lawful&authority&and&having&legislative&effect&

•  Detail&the&Parliament&and&State&legislature&to&govern&everyday&matter&

Written&Regulations/Sublegislations&

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How&Malaysian&Laws&Are&Made?&

Dewan&Rakyat&

I&House&of&Representative&

I&Lower&house&

Dewan&Negara/Senate&

I&Upper&house&

Parliament&

I&Make&laws&by&the&passing&of&Bills&in&both&

Houses&

Bills&

(rang&undangIundang)&

Private&Bills&

Affect&particular&person,&group&or&

association&

Introduced&by&any&member&of&

legislature&or&minister&or&deputy&minister&

Hybrid&Bills&

Affect&individual&rights&

Government&Bills&

Government&policy&introduced&by&

minister&

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Sources&of&Malaysian&Law&

Written&

Federal&and&State&

Constitution&Legislations& Regulations/

Sublegislations&

Unwritten&

Principle&English&Law&

Judicial&decisions&

Customary&law/way&of&life& Islamic&law&

•  Part&of&Malaysian&law&

•  Sources&are&English&common&law&and&rules&of&equity&

•  Earlier&–&application&without&modification&

•  Nowadays&–&subjects&to:&•  Absence&of&local&statutes&(written&law&passed&by&a&

legislative&body)&on&particular&subjects&

•  Suitability&to&local&context&

Unwritten&English&Law&

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Sources&of&Malaysian&Law&

Written&

Federal&and&State&

Constitution&Legislations& Regulations/

Sublegislations&

Unwritten&

Principle&English&Law&

Judicial&decisions&

Customary&law/way&of&life& Islamic&law&

•  Found&in&the&judicial&decisions&of:&•  High&Court&

•  Court&of&Appeal&

•  Federal&Court&

•  Supreme&Court&

•  Judicial&Committee&of&Privy&Court&(Jawatankuasa&Kehakiman)&&

•  Advantages:&•  Practical&based&on&actual&experiences&

•  Flexible&compared&to&law&enacted&by&Parliament&

•  Rich&in&legal&detail&than&statue&law&(written&enactment&of&a&legislative&authority&that&governs&a&state,&city&or&country)&

•  Cases&should&be&treated&in&a&similar&fashion&by&the&courts&to&ensure&justice&

•  Disadvantages:&•  Greater&research&needed&

•  Difficult&to&tell&the&statement&in&&a&judgment&is&ratio&or&dicta&

Unwritten&Judicial&Decisions&

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•  Doctrine&of&‘Stare&Decisis’/judicial&precedent&&

•  Sources&of&law&where&past!decisions!of!the!judges!create!law!for!future!judges!to!follow!

•  Also&known&as&case!law,&which&is&one&of&the&primary!sources!of!English!law&and&Malaysian&law&

•  Create&certainty!of!outcome&for&future!case&and&scope&for&the&common&law&to&be&modified&and&updated&

•  Way&of&operation:&•  Vertical&–&bound&by&the&prior&decisions&of&a&higher&court&

•  Horizontal&–&bound&by&their&own&prior&decisions&and&prior&decisions&of&a&court&of&the&same&level&

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Unwritten&Judicial&Decisions&

Datuk&Tan& Cheng& Swee,& was& to& be& the& Commissioner& of& the& Malacca& Municipality&The&Committee&was&advisory&in&nature,&hence&he&was&acting&not&on&any&majority&decision&but&under& his& own&powers& as& the& sole&Commissioner.&The& responsibility&was& at& all& times& his&and&his&alone.&Datuk&Tan&was&at&the&same&time&the&executive&chairman&and&a&shareholder,&holding& by& himself& and& through& members& of& his& family& a& 20%& interest,& in& a& housing&development&Almac& which& planned& to& develop& a& land.&The& 2nd& respondent& was& also& a&shareholder&but&he&was&not&a&director.&Almac&submitted&building&plans&for&the&approval&of&the&Municipal&Council,& in&other&words,&Datuk&Tan&himself.&Datuk&Tan&was&not&present&at&any& of& the& meetings& of& the& Committee& but& he& passed& the& plans.& The& charges& against&Datuk&Tan&are&therefore&related&to&approval&of&these&plans,&where&Datuk&Tan&had&used&his&public& office& for& his& pecuniary& advantage& and& had& thereby& committed& offences& against&section&2(1)&of&the&Emergency&(Essential&Powers)&Ordinance&No.&22&of&1970&&

“It is however necessary to reaffirm the doctrine of stare decisis which the Federal Court accepts unreservedly and which it expects the High Court and other inferior courts in a common law system…to follow similarly…Clearly the principle of stare decisis requires more than lip-service”.

Chang Min Tat F.J.

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Public Prosecutor v Datuk Tan Cheng Swee [1980] 2 MLJ 276, 277

1.  Kumpulan Perangsang Selangor v Zaid Bin Haji Mohd Noh [1997] 1 MLJ 789, 804

2.   Alkaff*v.*Governor@in@Council*&*Ors-[1931]&MLJ&Rep.&202&

3.   Public*Prosecutor*v.*Lau*Tuck*Weng*[1988]&3&MLJ&217&

4.   Majlis!Perbandaran!Pulau!Pinang!v.!Sykt.!Berkerjasama@sama!Serbaguna!Sungai!Gelugor&[1999]&3&MLJ&1&

5.   Mohamed!Ezam!bin!Mohd!Nor!&!4!Ors!v.!Ketua!Polis!Negara![2002]&1&MLJ&321&

6.   Public!Prosecutor!v.!Datuk!Tan!Cheng!Swee!&!Anor&[1980]&2&MLJ&277&

7.   Periasamy!s/o!Sinnapan!&!Anor!v.!Public!Prosecutor&[1996]&2&MLJ&557&

8.   Allied! Capital! Sdn.! Bhd.! v.! Mohamed! Latiff! bin! Shah! Mohd! and! Another!Application&[2001]&2&MLJ&305&

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Other Malaysian Cases to Ponder

Sources of unwritten judicial decisions in Malaysia: •  Malaysia Law Journal [MLJ] •  Current law Journal [CLJ] •  All Malaysia Reports [AMR]

“Even so, there is no official body to produce reports…” (Harbans Singh, 2005).

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Unwritten&Judicial&Decisions&

•  Type of unwritten judicial decisions: •  Ratio decidendi - The judge is likely to give a summary of the

facts, review the arguments and explain the principles of law he is using to come to the decision, which creates a precedent.

•  Obiter dicta - Judges in future cases do not have to follow it. Referred to speculation on what his decision would have been if the facts of the case had been different.

•  Binding precedent - Judgement from previous case which must be followed even if the judge in the later case does not agree with the legal principle. Created when the facts of the second case are similar to the original case and the decision was made by a court which is higher to (or same level) in the later case.

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Unwritten&Judicial&Decisions&

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Sources&of&Malaysian&Law&

Written&

Federal&and&State&

Constitution&Legislations& Regulations/

Sublegislations&

Unwritten&

Principle&English&Law&

Judicial&decisions&

Customary&law/way&of&life& Islamic&law&

• West&Malaysia&Customary&Laws&

•  UndangIUndang&Adat&Melayu&–&tradition&elements:&

•  UndangIUndang&Adat&Melayu&Purba&i.e.&Adat&Pepatih&and&Adat&Temenggung&

•  UndangIUndang&Hindu&

•  Dharmasutra&I&manuals&of&human&conduct&that&form&the&earliest&source&of&Hindu&law&

•  Dharmasastra&I&poetic&

Unwritten&Customary&Laws&

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Sources&of&Malaysian&Law&

Written&

Federal&and&State&

Constitution&Legislations& Regulations/

Sublegislations&

Unwritten&

Principle&English&Law&

Judicial&decisions&

Customary&law/way&of&life& Islamic&law&

•  Applied&to&Muslim,&regardless&of&race&

•  Extends&to&family&matters&and&inheritance&

•  Administrates&by&Syariah&Courts&(Islamic&courts)&at&state&and&in&Federal&Territories&of&KL&and&Labuan&

Unwritten&Islamic&Law&

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Organisation&of&Civil&Court&

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Syariah Court Syariah Court

Native Court

Hear and determine by Ruler of YDPA

•  Federal&Court&•  To&the&exclusion&of&any&other&court&•  Determine&validity&of&law&made&by&Parliament/State&

•  Exclusive&jurisdiction&to&determine&dispute&between&States&and&Federal&•  Ultimate&court&in&civil,&criminal&and&constitutional&matters&

•  Court&of&Appeal&•  With&appellate&jurisdiction&to&hear&civil&and&criminal&cases&of&High&or&Session&Courts&

•  High&Court&•  Criminal&–&cases&which&carry&death&penalty&

•  Civil&–&cases&of&divorce,&admiralty&(maritime&law),&bankruptcy&and&company&matter&

•  Session&Court&•  Criminal&–&all&offences&other&than&offences&punishable&with&death&

•  Civil&Cases&

•  Magistrates’&Court&•  Criminal&cases&

•  Civil&cases&

The&Malaysian&Judiciary&

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Thank You