BIPC welcomes COVID-19 Act

By ANIS FARHANAH MALEK
anisfarhanah@dagangnews.com

KUALA LUMPUR 17 Nov. - The Building Industry Presidents’ Council (BIPC) welcomes the enforcement of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020 or the COVID-19 Act. 

BIPC noted that the global COVID-19 pandemic had caused major disruptions to the building industry, including delays to building projects due to disruptions which include the Movement Control Order (MCO), Conditional MCO, as well as the Standard Operating Procedures [SOPs] implemented thereafter and escalated costs arising from prolongation of projects and costs of compliance with the necessary SOPs. 

As a result, BIPC said many dialogues were held among contractors, developers and consultants to discuss various concerns with regard to the impact of COVID-19 pandemic to ongoing projects. 

“There had also been calls from industry stakeholders for contract administrators and superintending officers to take a proactive role in helping to resolve contractual conflicts and disputes arising from the pandemic.

“Hence, it is good that the COVID-19 Act now temporarily suspends contractual rights under Part 2 of the Act in order to allow all parties to review their respective positions and consider the best way to move forward. 

“Specific provisions for the Housing Development (Control and Licensing) Act 1966 (HDA) are introduced to address the inability to perform the obligations by the developer and the purchasers under the pandemic,” said BIPC. 

However, the COVID-19 Act may not be able to resolve all the issues that the building industry is facing. 

For example, the COVID-19 Act has now extended the defects liability period [DLP] from 18th March 2020 to end of the year 2020 in favour of purchasers under HDA, thereby increasing the potential rectification costs faced by developers, despite there being no similar extension in respect of DLP in the main building contracts. 

While BIPC welcomes the provision under the COVID-19 Act for disputes to be resolved by mediation, the process in certain instances could be lengthy and costly. 

BIPC members are Association of Consulting Engineers Malaysia (ACEM); The Institution of Engineers, Malaysia (IEM); Malaysian Institute of Planners (MIP); Master Builders Association Malaysia (MBAM); Pertubuhan Akitek Malaysia (PAM); Real Estate and Housing Developers Association Malaysia (REHDA); and Royal Institution of Surveyors Malaysia (RISM).

Meanwhile, President of ACEM, Datuk Ir. Mohd Adnan Mohd Nor said, ACEM supports all initiatives by the government and professionals as well as trade associations for dispute resolutions that allows the common survival and accelerated recovery of businesses and industries for the good of the nation and the people and the world.

President of PAM, Datuk Ar. Ezumi Harzani Ismail said :  “In line with the COVID-19 Act, PAM provides mediation services at the PAM Centre for contracting parties to resolve any disputes in their projects. We also hope all architects to play active roles in facilitating parties to explore possibilities for solving contractual issues without going into a dispute.”

As for RISM, its president, Datuk Sr. T. Arumugam agrees that the construction industry parties need to take more proactive roles especially during the pandemic dealing with disputes.

It is supported by the President of REHDA, Datuk Ir. Soam Heng Choon who urges all parties to use their common sense and come up with a commercial decision to settle their issues, because losses due to COVID-19 is no fault of either party. 

Meantime, President of MBAM, Foo Chek Lee calls for contract administrators and superintending officers to take a proactive role in helping to resolve contractual conflicts and disputes arising from the pandemic.

“BIPCs contribution in easing contractual dispute during the global pandemic is a much-needed effort to boost the building industry,” said MIP president, TPr Ihsan Zainal Mokhtar.

Last but not least, IEM president, Ong Ching Loon said the pandemic is disastrous to the economy and livelihood of many. 

“While we stay safe and healthy but struggle to sustain, let’s forge ahead with a mindset change for a new horizon which is beyond our norms in the ways we live, work and do business,” said Ching Loon. - DagangNews.com