Notes 1

Certificate Involve
in Construction
c. Extension of Time (EOT)/ Liquidated and Ascertained Damages
b. Certificate of Practical Completion / Certicate of Non Completion
Importance of Certificate of Compliance and Completion (CCC)
Defects Liability Period (DLP) and Certificate of Making Good Defects (CMGD)
Importance & The Purpose of The Certificates
a. Interim Certificate and Progress Payment
b. Certificate of Practical Completion (CPC) /
Certificate of Non Completion (CNC)
c. Extension Of Time (EOT) / Liquidated
and Ascertained Damages (LAD)
d. Defect Liability Period (DLP) And
Certificated of Making Good Defects (CMGD)
a. Interim Certificate And Progress Payment
"Interim Payment Certificates" means a payment certificate issued under the Clause "Contract Price and
Payment", other than the Final Payment Certificate (FIDIC Conditions of Contact Definition)
The interim payments are therefore sums paid on - account of whatever the contractor might eventually
be entitled to recover from the employer
It is matter of fact whether payment for work carried out is a statement of acceptance of approval.
Based on cumulative valuation of work done, and are only for payment on account. They are not binding
nor conclusive of acceptance of the work
Interim Certificate
Progress Payment
The contractor is paid progressively throughout the project and is required to submit progress claims to
the architect on a regular basis.
under this system, your architect is able to protect you from being charged for work not completed, or
not in accordance with the requirements of the construction document.
The contractor should be asked to provide a schedule for expected monthly (or other agreed period)
progress payment.
The actual payments will depends on the amount of work of the contractor has completed and will be
likely to vary from this schedule.
The architect responsibility to prepare an issues progress certificates is as an independent proffesional
assessor upon whose assessment and valuation both you and the contractor have agreed to abide.
process and your obligation for progress payment
The contractor presents a progress claim to the architect
The architect assesses the claim, determines the monetary amount which the contractor is an entitled
to under the contract an issues a progress certificate to the contractor
the contractor presents the progress certificate and a tax invoice to you for payment.
the building contract usually states a limited time within which you must make the payment
Characteristic are to be implied in the meaning of Practical Completion
1. The works can be practically complete not with standing that there are latent defects;
2. A certificate of Practical Completion may not be issued if there are patent defects. The defect liability
period is provided in order to enable defects not apparent at the date of Practical Completion to be
remedied;
3. Practical Completion means the completion of all the construction work that has be done;
4. However, the Architect is given discretion under the Contract to certify Practical Completion were
there are very minor item of work left incomplete on 'de minimus' principles.
Certificate of Practical Completion is the document which also initiates such event as the release of the
first moiety of retention, exclusion of liability for Liquidated and Ascertained Damages and changes in
obligation in respect of insurance for the works is by no means a coincidence in the frequency of
disputes which question the date the works did indeed reach Practical Completion
Importance of
Certificate of Practical Completion
1. The transfer of the responsibility for the care of the works from the Contractor to the Employer
2. The commencement of the patent defects liability period
3. The date when the contract works insurance cover comes to an end;
4. The contractors entitlement to have this performance guarantee/ surety returned to him, or to have
the amount of the construction guarantee reduced;
5. The contractors entitlement to the payment of the first moiety of the retention monies (where
retention in provided for).
6. The beginning of the period of time allowed for the preparation of the final account
7. The end of any period of delay for which the Contractor may be paying penalties
Certificate of Practical Completion
Certificate of Non Completion
The contractor administrator must give due consideration to any application for extension of time
before issuing a certificate of non - completion, and if they are subsequent extensions of time that result
in the completion date being adjusted, and the contractor then fails to meet his adjusted date, a new
certificate of non - completion must be issued.
Where the contract provides for sectional completion of the works, separate certificates of non-
completion must be issued for each section that is not completed by the required date
The client may then deduct liquidated and ascertained damages from payments otherwise due to the
contractor, providing that an appropriate notice has been issued (a pay less notice) setting out the basis
of the calculation

Many construction contracts allow the construction period to be extended where there are delays that
are not the contractor's fault
When it becomes reasonably apparent that there is a delay, or that there is likely to be a delay that
could merit an extension of time, the contractor gives written notice to the contract administrator
identifying the relevant event that has caused the delay.
Liquidated and Ascertained Damages
What are liquidated damages?
Most forms of building contract include a clause entitling the Client to a specified level of damages,
referred to as “Liquidated Damages” or “Liquidated and Ascertained Damages” if the Contractor is late
in handing over the building. . LADs replace the Client’s common law right to damages for late
completion with a contractual right to a pre-determined sum for the period of delay.
Advantages of LADs to Client
The amount of LADs is agreed in advance, so avoids the Client having to calculate and prove the actual
loss. It also concentrates the Contractor’s mind on finishing the project on time.
Advantages to Contractor
In a tender situation, it makes fixing the contract price more certain, since the Contractor can price the
level of LADs into his tender bid.

Also, if the project is behind schedule, the Contractor can make a commercial decision as to whether it
would be preferable to hand the building over late and to pay the LADs or to devote more resources to
the project to bring it back on time

Finally, the level of LADs specified is a ceiling for the amount of damages payable; if it turns out that the
Client’s loss is greater than the LADs stated in the contract, the Client cannot claim the greater sum.
Types of LAD provision
LAD provisions are usually expressed as a certain sum payable for each day, or week or part of week by
which practical completion is delayed.
Other types are a straight lump sum, a fixed percentage of the contract sum or a maximum rate which
reduces as part or parts of the project become available for occupation and use.
1.What is a Defects Liability Period?
Defect liability period is a period whereby the contractor must repair any defect identified by the
supervisoring officer after a particular work was duly completed. All expenses to repair the defects shall
be borne by the contractor and no additional costs charged to the Government.
What is the purpose of a defects liability period?
Defects liability periods - also known as rectification provisions - can be of benefit to both parties.
PARTICULAR CIRCUMSTANCES RELATING TO THE CERTIFICATE OF MAKING GOOD DEFECTS
If the contractor, having been given the opportunity to rectify defects, fails to do so within a reasonable
time, they may be in breach of contract. In this situation others may be employed to rectify the defects,
and the cost of such works deducted from the contractor's retention.
Compliance Certificates are issued by licensed plumbers to certify that their plumbing work complies
with all regulatory requirements. You should receive a Compliance Certificate for most plumbing work,
including:
•
Where the total value of work, including materials, labour and GST, is $750 or more (material costs must
be included, regardless of whether the materials were supplied by another person)
• The installation, relocation or replacement of any Type A gas-using appliances, regardless of the cost
(Compliance Certificates do not apply to Type B gasfitting work)
• The conversion of a gas-using appliance for use with a different gaseous fuel
• The installation, modification or relocation of consumer gas piping (other than work carried out on
behalf of a gas company)
• The construction, installation or alteration of any below ground sanitary drain or associated gullies
• The construction, installation, alteration, relocation or replacement of a cooling tower or of any other
part of a cooling tower system (including the installation or replacement of any associated device or
equipment
Notes 2
Dalam pelaksanaan sesuatu kontrak, Sijil Siap Kerja (CPC) akan dikeluarkan apabila telah mencapai tahap
penyiapan yang pratikal dan telah memuaskan kehendak Pegawai Penguasa (P.P).

Pengeluaran CPC akan menandakan permulaan tempoh liabiliti kecacatan (DLP) selama 12 bulan atau 24
bulan.

Apabila tempoh DLP makin hampir kepada tempoh tamat, satu proses pemeriksaan perlu dilakukan
bersama oleh kedua-dua pihak baik dipihak klien dan pihak kontraktor.

Sekiranya, ketika waktu pemeriksaan didapati tiada kerja-kerja kecacatan yang timbul, Sijil Siap
Memperbaiki Kecacatan (CMGD) boleh terus dikeluarkan.

Walaubagaimanapun, sekiranya masih terdapat kecacatan ketika pemeriksaan bersama. Satu senarai
penuh kecacatan perlu dikeluarkan oleh pihak klien kepada kontraktor.

Tempoh pengeluaran senarai kecacatan ini adalah berbeza antara Kontrak Konvensional dan Kontrak
Reka & Bina, dimana untuk kontrak konvensional, tempoh selama 14 hari diperlukan untuk pengeluaran
senarai kecacatan. Manakala untuk kontrak reka dan bina, tempoh selama 28 hari diperuntukan untuk
pengeluaran senarai penuh kecacatan.

Setelah pengeluaran senarai penuh kecacatan, kontraktor adalah diperuntukkan untuk melaksanakan
tindakan pembaikan selama 3 bulan.

Selepasa siap memperbaiki kecacatan, pihak klien akan mengeluarkan Sijil Siap Memperbaiki Kecacatan
(CMGD) kepada kontraktor dan akan membolehkan pihak kontraktor menuntut untuk pelepasan Bon
Pelaksanaan
Notes 3

Certificate of Completion and Compliance

(CCC): FAQ
Written by Ir. Chen Thiam Leong
Thursday, 16 August 2007
The two-day “Conference to improve the delivery system of government services - to improve
the development processes as well as property management ” was held at Sunway Lagoon Hotel
Ballroom and launched by the Hon. Prime Minister Datuk Seri Abdullah Ahmad Badawi on
13th April 2007. The issuance of the Certificate of Completion and Compliance (CCC) by
professionals was launched on the same day.

1. When do the new laws enabling professional Architects/ Engineers to issue CCC come
into force?
The CCC system came into force effective 12th April 2007.

2. What does this mean?

The CCC replaces the Certificate of Fitness for Occupation (CFO) previously issued by the
local authority (PBT). The CCC is issued by the project’s Principal Submitting Person (PSP)
who is a Professional Architect, Professional Engineer or a Registered Building Draughtsman.

3. What is the reason for the government to implement this change?

It is the government’s view that CCC will cut down on red-tape and ensure that house buyers
and building owners get to move in as quickly as possible without compromising their safety.
This is consistent with the government’s desire to encourage self-regulation, which was
introduced in the National Economy Growth Planning strategy to continuously enhance the
delivery system. Previously, a CFO is issued by the local authority after it has received Form E
(UKBS) which is an application for the issuance of the CFO. This system posed many
problems, such as delay in certification by technical agencies, additional conditions imposed by
PBT at the time of CFO application and lack of technical officers to process the CFO. It is to be
noted that CCC will only address technical aspects and so far as these are complied with and
there is no apparent threat to health and safety issues, then CCC can be issued.

4. What then is the role of PBT?

The PBT will receive, process and approve planning permission and building plans (under a
more efficient and expeditious regime of OSC that was launched on the same date by the Hon.
Prime Minister). PBT can also authorize site inspection on their own initiative or act on
complaints to check the works in progress, issue a notice (in writing and through the OSC) to
the PSP not to issue the CCC if breaches and divergence are not rectified, take action to rectify
any continuous breach or divergence including reporting to Professional Boards. The PSP can
rectify changes or variations either by complying on site or in the form of as-built drawings.

5. Can CCC be issued for projects with Building Plan approved before the 12th April
2007?
No, CCC can only be issued for projects that have obtained their Building Plan approvals after
12th April 2007. This is because under the new CCC system, a responsibility process matrix is
introduced. Each construction process needs to be verified by professionals and contractors or
trade contractors. Twenty-one stage certification forms need to be endorsed along the entire
process. These are included as new schedules (Form Gs) under the revised UKBS 1984
(Amendment) 2007 (Uniform Building By-Laws).

6. What must be done for a project that has already obtained building plan approval to
come under CCC?
The building plan must be resubmitted for approval under the new (CCC) system. Projects
where works have commenced on site will not be able to use the new CCC system.

7. Can a CCC be issued if any or several of these Forms Gs are not certified by the stated
parties?
No. The PSP must ensure that all Form Gs are duly filled and certified and all the conditions
have been fulfilled before CCC can be issued. Failure to comply is a serious offence. It is
advisable to ensure that CIDB registered contractors and licensed tradesmen (e.g. Electrician
and Plumber) are informed of their obligations as early as possible from the time of tender and
award of works, and their respective certification is obtained immediately upon satisfactory
completion of their respective scope of works. It is not prudent to leave all such certification to
the end of the project or just when the PSP is about ready to issue the CCC.

8. So what are the conditions, certification, or clearances required before a PSP can issue
the CCC?
The project works need to be completed in accordance with the approved Building Plans (or
subsequent revised approved building plans or as-built plans) and the PSP has supervised the
works accordingly. All Form Gs are duly filled and certified, clearances and or confirmation of
supply/connection to six essential services department – TNB (confirmation of electricity
supply), water authorities (confirmation of water supply), JPP (confirmation of connection to
sewage treatment plant or mains), JKKP (clearance from factories and machinery department
for lifts – if applicable), Bomba (clearance for active fire fighting systems – except for
residential buildings not more than 18 m height), and Roads & Drainage department. With these
clearances in place, the PSP can then issue the CCC.

9. What are the tasks required of the professional as the PSP?

The PSP’s task is to :

 prepare and present planning and building plans to the PBT for approval
 inform PBT of the commencement of construction works on site
 supervise construction works at site and ensure that laws and technical conditions of the
PBT are followed,
 report any building breaches, explain reasons of breach and perform recovery action in
the event of breach during construction
 present work-resumption notice to the PBT
 ensure Form Gs are duly certified at the various stages of works
  issue CCC to the owner upon satisfactory completion of the works and obtaining
clearances or confirmation from the six essential service departments
 present a copy of the CCC (together with all Form Gs) to the PBT and the Professional
Board within 14 days of its issuance

10. There seems to be a lot more things that the PSP has to do. Is there any change to the
level of responsibility required of the PSP?
There is no change to the responsibility or liability on the PSP as under the old system the PSP
was already fully liable and responsible for the entire project even though the PBT approved it
and issued the CFO for it. There could be an increase in the tasks involved such as the need to
compile the 21 Form Gs under the matrix of responsibility. However this process helps to
identify and call to attention the various parties responsible in the complex delivery process of
buildings today. The CIDB registered contractor and licensed specialist trade contractors will
now be called upon to take responsibility for their respective portion of works. There is
however, possible time saved from previously having to attend to the submitting of Form E and
applying for the CFO.

11. What other changes will CCC bring?

The CCC system also ensures that Vacant Possession (VP) can be issued together with CCC.
This will overcome problems previously associated with CFO where homebuyers receive the
house keys (upon submission of Form E) but cannot move into the houses because the CFO has
not been issued.
With the introduction of the matrix of responsibility (Form Gs), there will also be an
improvement in the accountability and responsibility aspect as action can be taken on the
responsible party in the event of failure or flaws in the building. Thus, work quality can
improve.

12. Are there any changes to the regulation of the PSPs?

All professionals are reminded of their responsibility and role to protect the community and the
profession. There is no reason for any professional to succumb to pressure by any party to flaunt
the independent certifying role that has been entrusted to the profession. Professionals must
carry out their duties with due care and diligence and together with the other parties including
fellow professionals and the registered contractors, ensure that CCC works for the good of all.

As there is great need to strengthen the professional’s ability to supervise works on site, the
professional boards are working with the Ministry of Works and the CIDB to upgrade and
regulate the important role of site staff / Clerk of Works.

There are increased penalties for offences. Under the amendment to the Street, Drainage and
Building Act 1974 (Act 133), the penalty for the offence of not abiding by the orders of PBT is
increased for general penalty and includes imprisonment for term not exceeding three years and
a fine of up to RM10,000. Under the Uniform Building By-Laws, the parties that issue Form Gs
and CCC without complying with the provision of the Acts can be sued and reported to the
controlling professional bodies. Both the Architects Act 1967 (Act 117), Registration of
Engineers Act 1967 (Act 138) have been revised to provide for stricter disciplinary action on
professionals by increasing fines, extending the duration of membership suspension and
cancellation of membership.

13. What is the implication if a PSP passes away or is not contactable after issuance of
CCC?
The responsibility and liability for the safety of the building whether it is during construction or
after it is completed, lies with the submitting person as per section 71 of the Street, Drainage
and Building Act, and this remains unchanged for both the old CFO or the new CCC system.
Under the CCC system, a matrix of responsibility is put in place by means of stage certification
(Form Gs), by the respective parties to ensure responsibility and accountability of all parties
involved. The matrix of responsibility is also to introduce check and balance and to minimize
risk. The situation is similar to the old CFO system which allows another PSP to be appointed to
take over the project with the approval of the PBT. The owner or developer will need to appoint
a new PSP and the new PSP who takes over shall resume all liability and responsibility.

14. Does PBT owe a duty of care to ensure that the building constructed is safe and
suitable to be occupied?
The PBT still has a duty of care under common law to ensure that the building constructed is
safe and suitable for occupation. Under the new CCC system, the PBT still has a role and
responsibility in the process of issuance of CCC as per subsection 70 (23) and (24) of Street,
Drainage and Building Act. The PBT is also empowered under section 85A of the Act to direct
inspection to be carried out on the building by the owner 10 years after CCC has been issued for
the said building.

15. Can civil action be taken against PBT?

Aggrieved parties can take any civil actions against the PBT. However, the PBT is given
immunity under section 95(2) of Street, Drainage and Building Act.

16. Does the PSP need to submit Form G1 to G4 in stages to the PBT for their information
or should these be submitted only when the PSP issues Form F (CCC) together with all the
Forms G1 to 21?
Based on provision of the UBBL, there is no requirement to submit Form G1-G4 to the PBT
earlier or separately as all the 21 Form Gs are only required to be attached with Form F/F1.
However, at a recent meeting with Ministry of Housing and Local Government and as per their
last published guide book, the ministry has requested for the PSP to notify the PBT upon
certification of Form G1-G4 as an interim measure (so that the PBT can decide whether they
would wish to inspect the site at those stages of completion). The PSP only needs to notify the
PBT and there is no need to submit Forms G1-G4 earlier.

17. Should the relevant Form Gs be endorsed by the main contractor or the building
contractor who happens to be a sub to the main contractor of a project?
The main contractor who enters into the contract to construct the building should be the party to
sign the Form Gs. Please take note that the board has since published a Guide to Filling Up
Forms F/F1 and Form Gs where the signing parties are clearly identified.
18. In a Turkey project/Design and Build project where the contractor is not the building
contractor, who should endorse the Form Gs - the main contractor or the building
contractor as both are CIDB registered contractors?
The "Turnkey contractor' who enters into the Design and Build contract, regardless of whether
the PSP is engaged by him or by the owner, shall be the party signing the Form Gs. He can
choose to employ any sub-contractor to carry out the various parts of the building construction
but he will remain the party accountable
Notes 4

Briefing Notes for Practising Engineers: Certificate of Completion and

Compliance (CCC)
Written by Ir. Chen Thiam Leong
Wednesday, 15 August 2007
1. Effective Date of CCC
The Prime Minister has on 13th April 2007 announced officially that CCC, OSC (One Stop
Centre), COB (Commissioner of Buildings) and Built and Sell (10:90) will take effect on 12th
April 2007 and that all Acts and regulations have been put in place for their implementation.
The Government is committed to give intensive training to all the local authorities and related
agencies for 2 months for their effective implementation.

2. Amendments of Relevant Acts

In conjunction with the implementation of the CCC, amendments to the following Acts and
Regulation were approved:

 Street, Drainage and Building Act (Amendment) 2007 (Act A1286)

o To make provision for implementation of CCC
o To define Principal Submitting Person
o Increasing penalty to deter wrongful certification
 Uniform Building By-Law 1984
o To make provision for the implementation of CCC
o Introduction of additional G Forms (Matrix of Responsibility)
 Housing Development Act and Regulations (Amendment) 2007 (Act A1289)
o Consequential amendment in view of CCC (ie definition of CF etc)
o VP will now be given together with CCC
 Strata Title Act (Amendment) 2007 (Act A1290)
o Consequential amendment in view of CCC
 Architect’s Act 1967 (Amendment) 2007 (Act 1286)
o Increasing penalty to deter wrongful certification
o Express provision on fraudulent certification.
 Registration of Engineer’s Act 1967 (Amendment) 2007
o Increasing penalty to deter wrongful certification
o Express provision on fraudulent certification

3. Major Relevant Details of Amended Acts and Regulation

3.1 Amendments to The Street, Drainage and Building Act (Amendment 2007) (Act
A1286)

a) Amendment to Increase Penalty

 70(11) To increase fine from not exceeding RM1,000 to not exceeding RM20,000 for
committing offence of making any alteration to any building otherwise than is provided
for in this Act or by-laws or without the prior written instruction of the local authority.
  70(13) To increase the fine from not exceeding RM10,000 to not exceeding RM50,000
or to imprisonment for a term of not more than 3 years or both.

A further fine has been increased from not exceeding RM 250 to RM1,000 for each day
during which the offence is continued after conviction:-

o commences or resumes the erection of a building in contravention of sub-section

(9);
o commences or resumes the erection of a building in contravention of sub-section
(9A);
o deviates from any plan or specification approved by the local authority without
the prior written permission of the local;
o erect a building in contravention of this Act or any of the by-laws made; or
o fail to comply with any lawful order or written direction of the local authority or
with any term or condition attached by the local authority to any modification or
waiver of any of the requirement of any by-law,

 70(27) Any Person who -

 is not a PSP but issues a certificate of completion and compliance;
 issues a CCC without all the relevant forms as prescribed in any by-laws;
 issues a CCC in contravention of a direction given by the local authority to
withhold such issuance pending rectification of any non-compliance;
 knowingly makes or produces or causes to be made any false or fraudulent
declaration, certificate, application or representation of any form prescribed in
any by-laws made under this Act;
 uses any forged, altered or counterfeit declaration, certificate, application or
representation of any form prescribed in any by-laws made under this Act
knowing the declaration, certificate, application or representation have been
forged, altered or counterfeited; or
 occupies or permits to be occupied any building or any part thereof without a
CCC shall be liable on conviction to a fine not exceeding RM 250,000 or to
imprisonment for a term not exceeding ten years or to both.
 127 Fine under general penalty has been increased from not exceeding RM2,000 to not
exceeding RM10,000 and the further fine has been increased
from RM 100 to RM 500 for every day during which the offence is continued after
conviction.

b) Amendment to Section 70
Inserting a sub-section on ‘Issuance of certificate of completion and compliance’

 70(20) No certificate of completion and compliance shall be issued except by principal

submitting person in accordance with the time, manner and procedure for the issuance
thereof as prescribed by this Act or any by-laws made,
  70(21) Before the issuance of certificate of completion and compliance, it shall be the
duties and responsibilities of the principal submitting person to:
o Supervise the erection of the building to ensure that the erection is in conformity
with the approved plans and the requirements of the provisions of this Act or any
by-laws made;
o ensure that the building has been duly constructed and completed in conformity
with the approved plans and the requirement of this Act or any by-laws made and
that all technical conditions imposed by the local authority has been duly
complied with; and
o ensure the building is safe and fit for occupation.
 70(22) Nothing contained in this Act shall affect the power conferred on the local
authority by this Act or any by-laws made pertaining to the erection and construction of
a building for the purpose of ensuring that the erection and construction of such building
are in conformity with the approved plans and the provisions of this Act or any by-law
made.
 70(23) If it appears to the local authority that a non-compliance with the approved plans
and provisions of this Act or any by-law made by the principal submitting person has
occurred in the erection and construction of the building, the local authority may issue to
the principal submitting person –
o a notice in writing, requiring compliance within the period specified in the
notice, as the local authority thinks fit, in order that the non-compliance be
rectified; and
o a directive in writing to withhold the issuance of the certificate of completion
and compliance until such non-compliance has been rectified.
 70(24) If the direction referred in paragraph (23)(b) is not complied with by the principal
submitting person, the local authority may itself cause any work to be executed or any
measure to be taken of if it considers such work or measure is necessary to rectify the
non-compliance.
 70(25) The cost for executing such work or taking such measure as referred in
subsection (24) shall be borne by the owner of the building.
 70(26) The amount of the costs to be so recovered by the local authority shall be
certified by the local authority and the certificate of the local authority in this regard
shall be conclusive proof of the matters stated therein and shall not be subject to any
appeal or review in any court.

3.2 Key Amendments to The Uniform Building By-Law (Amendment 2007)

a) Amendment of by-law 2

 2 (c) by inserting a new definition “Principal submitting Person” means a qualified

person who submits building plans to the local authority for approval in accordance with
these By-Laws and includes any other qualified person who takes over the duties and
responsibilities of or acts for the first-mentioned qualified person in accordance with by-
law 7.
  2(d) by substituting the definition of “qualified person’ with the following definition
“qualified person” means a Professional Architect, Professional Engineer or building
draughtsman registered under any written law relating to the registration thereof.
 2(f) by inserting the following definition “building plans” means plans that include site
plans, key plans, floor plans, sections and elevations of buildings, and are as stipulated
under by-laws 8, 9 and 10.
 2(j) by inserting the following definition “technical conditions” means conditions
pertaining to health and safety issues to buildings and essential services serving the
buildings.

b) Substitution of by-law 25: “Certificate of Completion and Compliance”

 25(1) A certificate of completion and compliance in Form F as set out in the Second
Schedule shall be issued by the principal submitting person –
o when all the technical conditions as imposed by the local authority have been
duly complied with;
o when Forms G1 to G21 in respect of stage certifications as set out in the Second
Schedule have been duly certified and received by him;
o when all the essential services, including access roads, landscape, car parks,
drains, sanitary, water and electricity installations, fire hydrants, sewerage and
refuse disposal requirements and, fire lifts where required, have been provided;
and
o when he certifies in Form F that he has supervised the erection and completion of
the building and that to the best of his knowledge and belief the building has
been constructed and completed in accordance with the Act, these By-Laws and
the approved plans.

 25(2) Upon the issuance of the certificate of completion and compliance, the principal
submitting person accepts full responsibility for the issuance of the certificate of
completion and compliance and he certifies that the building is safe and fit for
occupation.
 25(3) The principal submitting person shall within fourteen days from the issuance of
the certificate of completion and compliance or partial certificate of completion and
compliance, as the case may be, deposit a copy of the said certificate and the Form G1-
G21 with the local authority and the Board of Architects Malaysia or Board of Engineers
Malaysia, as the case may be.
 25(4) Nothing contained in this by-law shall prevent the local authority or any officer
authorised by it in writing for the purpose, from inspecting any building works at any
stage thereof and calling attention to any failure to the building or non-compliance with
these By-laws which he may observe and, giving notice in writing to the principal
submitting person ordering such failure or non-compliance to be rectified.
 25(5) Subject to paragraph (4), the local authority may issue a directive in writing to the
principal submitting person to withhold the issuance of the certificate of completion and
compliance or partial certificate of completion and compliance, as the case may be.
  25(6) The principal submitting person shall within twenty-one days after the receipt of
the notice issued in pursuance of paragraph (4) or such further period as may be
approved by the local authority, rectify the failure or non-compliance.
 25(7) When the principal submitting person has rectified the failure or non-compliance,
he shall issue a notice to the local authority confirming that such rectification works
have been satisfactorily completed.
 25(8) Upon receipt of the notice as mentioned in paragraph (7), the local authority shall
within fourteen days from the receipt of such notice inspect the building to confirm that
the failure or non-compliance has been satisfactorily rectified.
 25(9) When the local authority is satisfied that the failure or non-compliance as
stipulated in paragraph (4) has been satisfactorily rectified, the local authority shall issue
a directive in writing to the principal submitting person to issue the certificate of
completion and compliance or partial certificate of completion and compliance, as the
case may be.
 25(10) When the local authority does not carry out the inspection of rectification works
in pursuance of paragraph (8) within the period as stipulated in that paragraph, it shall be
deemed that the local authority is satisfied that the rectification works have been
satisfactorily completed.
 25(11) When the failure or non-compliance is not rectified by the principal submitting
person within the period stipulated in paragraph (6), the local authority may itself cause
any work to be executed or any measure to be taken if it considers such work or measure
is necessary to rectify the non-compliance.
 25(12) The cost for executing such work or taking such measure as referred to in
paragraph (11) shall be borne by the owner of the building.
 25(13) The certificate of completion and compliance or partial certificate of completion
and compliance, as the case may be, shall not be issued by the principal submitting
person until all the failures or non-compliances in respect of the building has been
satisfactorily rectified.

c) Substitution of by-law 27: “Partial certificate of completion and compliance”

 27(1) The principal submitting person may issue a partial certificate of completion and
compliance in Form F1 as set out in the Second Schedule in respect of any part of a
building partially completed subject to any condition imposed by the local authority
which it deems necessary for reasons of public health and safety.

Provided that no such certificate shall be issued unless all the essential services,
including access roads, landscape, car parks, drains, sanitary, water and electricity
installations, fire hydrants, sewerage and refuse disposal requirements and, fire lifts
where required, serving the partially completed portion of the building have been
provided.

 27(2) A partial certificate of completion and compliance once issued shall remain
effective until the whole of the building is completed and a certificate of completion and
compliance is issued in pursuant of by-law 25,
d) Substitution of by-law 28: “Offences”

 28(1) Where the principal submitting person fails to deposit a copy of the certificate of
completion and compliance or partial certificate of completion and compliance, as the
case may be, and the Forms G1-G21 within the period stipulated in paragraph 25(3) with
the local authority and the Board of Architects Malaysia or Board of Engineers
Malaysia, as the case may be, he shall be guilty of an offence.
 28(2) Where the principal submitting person or submitting person fails to comply with
the notice issued by the local authority in respect of the rectification of any failure to the
building or non-compliance with these By-laws in accordance with paragraph 25(4), he
shall be guilty of an offence

e) Other Amendments

 Amendments to by-laws 3, 4, 5, 6, 7, 10, 16, 17, 20, 29, 48, 77, 249, 258 etc are mainly
consequential changes to change the term submitting person to principal submitting
person.

f) Amendment of Second Schedule

 The Second Schedule of the principal By-laws is amended by deleting Forms C, D and E
o by substituting for Form F with the new Form F and F1 and Form G1-G21

g) Types of Forms under CCC

- Certification of Buildings/Structural Plans (for

• Form A
endorsement on plans to be submitted for approval)
- Notice of Commencement/Resumption of Building
• Form B
Operations
• Form G1–G21 - Stage Certification for various components of works
• Form F - Certificate of Completion and Compliance
• Form F1 - Partial Certificate of Completion and Compliance

3.3 Key Amendments to The Registration of Engineers Act 1967

 Section 7A(5)(d) Increase of fine from not exceeding RM10,000 to not exceeding
RM50,000 and to increase the suspension of registration for a period not exceeding 1
year to two years on Engineering consultancy practice for disciplinary offence.
 Section 14A Establishment of a 3-person Disciplinary Committee to provide more
effective disciplinary actions for dealing with CCC issues.
 Section 15(1) and (1A) Insertion of false or negligent certification as grounds for
disciplinary action.
 Increase of fine from not exceeding RM5,000 to not exceeding RM50,000 and to
increase the suspension of registration for a period not exceeding 1 year to two years on
a registered Engineer for disciplinary offence.

 Section 24 Increase the fine from RM10,000 to RM50,000 or to imprisonment for a term
not exceeding three years, or to both, on any person, sole proprietorship, partnership or
body corporate who contravenes the provision of the Act and its regulations as
stipulated.
 Section 25 Increase the fine from RM2,000 to RM10,000 or to imprisonment for a term
not exceeding one year, or to both, on any person, sole proprietorship, partnership or
body corporate who contravenes the provision of the Act and its regulations where there
is no penalty expressly provided.

4. Titles of Form G1 to G21

 FORM G 1 (Approved Plans)

STAGE CERTIFICATION: EARTHWORKS
 FORM G 2 (Approved Plans)
STAGE CERTIFICATION: SETTING OUT
 FORM G 3 (Deposited Plans)
STAGE CERTIFICATION: FOUNDATIONS
 FORM G 4 (Deposited Plans)
STAGE CERTIFICATION: STRUCTURAL
 FORM G 5 (Approved/Deposited Plans)
STAGE CERTIFICATION: INTERNAL WATER PLUMBING
 FORM G 6 (Approved/Deposited Plans)
STAGE CERTIFICATION: INTERNAL SANITARY PLUMBING
 FORM G 7 (Submitting Engr’s Endorsed Plans)
STAGE CERTIFICATION: INTERNAL ELECTRICAL
 FORM G 8 (Approved/Deposited Plans)
STAGE CERTIFICATION: FIRE-FIGHTING (PASSIVE)
 FORM G 9 (Approved/Deposited Plans)
STAGE CERTIFICATION: FIRE-FIGHTING (ACTIVE)
 FORM G 10 (Submitting Engr’s Endorsed Plans)
STAGE CERTIFICATION: MECHANICAL VENTILATION
 FORM G 11 (Submitting Engr’s Endorsed Plans)
STAGE CERTIFICATION: LIFT/ESCALATOR INSTALLATION
 FORM G 12 (Approved Plans)
STAGE CERTIFICATION: BUILDING
 FORM G 13 (Approved Plans)
STAGE CERTIFICATION: EXTERNAL WATER SUPPLY SYSTEM
 FORM G 14 (Approved Plans)
STAGE CERTIFICATION: SEWERAGE RETICULATION
 FORM G 15 (Approved Plans)
STAGE CERTIFICATION: SEWERAGE TREATMENT PLANT
 FORM G 16 (Approved Plans)
STAGE CERTIFICATION: EXTERNAL ELECTRICAL SUPPLY SYSTEM
 FORM G 17 (Approved/Deposited Plans)
STAGE CERTIFICATION: ROAD AND DRAIN
 FORM G 18 (Approved/Deposited Plans)
STAGE CERTIFICATION: STREET LIGHTING
 FORM G 19 (Approved Plans)
STAGE CERTIFICATION: EXTERNAL MAIN DRAIN
 FORM G 20 (Approved/Deposited Plans)
STAGE CERTIFICATION: TELECOMMUNICATION
 FORM G 21 (Approved Plans)
STAGE CERTIFICATION: LANDSCAPE
Notes 5

What is CPC, VP, CF, and CMGD & CCC?

New property owner should know

CPC = Certificate of Practical Completion

is issued by the architect (Superintendent Officer (SO) to the main contractor when the architect
is satisfy with all the physical works being completed in the building.
for some development, CPC might include getting all the supporting documents from all relevant
authority for the application of CF (Certificate of Fitness) such as bomba, tnb, syabas, TM, local
council, JPS (road and drainage), IWK (sewerage) and a few more.

upon CPC, the main contractor will be able to claim for the release of 1st half – the 2.5% of the
5% retention sum from stakeholder.

VP = Vacant Possession
is issued by the SO to the project (developer) when all the conditions of CPC have been satisfied.
upon VP, all the infra and amenities have to be ready for connection but not necessarily the
meter is physically there (e.g. TNB meter, syabas water meter)
Developer can hand over key to purchaser and thus start the countdown of defect liabilities
period and LAD date is the VP date.
VP is issued upon submission of Borang E to the local authorities to obtain Certificate of Fitness
(CF) with all the supporting documents from all the relevant authorities as mentioned above in
CPC.
Upon VP, developer will claim for the 12.5% from you/your bank.
CF = Certificate of Fitness
Upon submission of Borang E, the local authority will have to reply within 14 days (I’m not sure
it’s all the same for all local authorities yet but MBPJ and MPKJ is practising this) whether to
accept or reject the application of CF.
Among the conditions required is, all relevant parties recommendation letter (surat sokongan)
again, refer to CPC, and also their own (local authorities) various dept. inspection, namely
Building Dept., Planning Dept., Road & drainage, landscaping, street lighting, safety &
health, etc.
all depts. have to approve b4 u get your CF!
in the event any of the depts. do not issue surat sokongan to the said development, the local
authority will reject the application within that 14 days and the developer have to go thru the
whole process again from submitting a fresh copy of Borang E.
(this is usually the part where the developer always have problem of obtaining CF)
CMGD = certificate of making good practise
is issued by the SO after they’re satisfied with the making good of defects once the defect
liability period expired.
contractor get their 2.5% 2nd half upon issuance of CMGD
you or the end financing bank has to pay 2.5% to the developer upon receiving CMGD.

CCC = Certificate of Completion and Compliance

u can read it here , still very new to it.
we have not handle any projects under the new CCC requirement up until now although it have
been in place since 13 April 2007

But what we do know is if, the DO for a certain development have been approved or issued prior
to 13 April 2007, the whole development will still go thru the old process (VP, CF)

timeline as follows…

3 months b4 VP, tnb, syabas, tmb (telekom) submission, hence the deposit for the meters. but
then again, most developers dun collect from buyers, will come out upfront themself and collect
only during VP/key collection

CPC should be around the same time with VP… meaning that the SO is already satisfy with the
site condition and all the supporting documents (surat sokongan) have been obtain in order for
submission of Borang E for CF.

the earliest timeframe that u can get CF is 14 days after VP.

Usually even if they have verbally approved and all the supporting documents are there, the
developers should be able to get their CF cert within 1-3 months’ time depending on how good
their connection is with the authority. This also depends on whether they provide sufficient
brown envelope to all the relevant parties during inspection and obtaining surat sokongan.

CMGD = defect liability period… some projects 18 months, some more.