International contract

Australia Contract
Australia Standard Contract Suite (AS4000 / AS2124 )
Australia Standard Contract suite is one of the most commonly used forms of head contract for
construction project in australia. Whereas contractors tend to regard the risk profile of AS 4000
as fairly balanced, some principals consider the contract to be weighted in favour of the
contractor.
AS2124 and AS4000 are designed for use on major building and engineering projects where a
‘superintendent’ is engaged to administer the contract. The superintendent may be an
independent professional (or a firm of consultants) or an employee of the principal. The
contract price may be calculated as a lump sum or re-measurement or a combination of these.
Although AS2124 and AS4000 have many similarities, there are some significant differences,
which included:

AS 2124 AS 4000

Availability of EOT Includes broad list of causes of delay Relies on the concept of a
for which the contractor can claim ‘qualifying the cause of
an EOT delay’

Calculation of delay Requires the principal to pay ‘ such Entitles it to claim ‘delay
cost extra costs as are necessarily damages’ after EOT is
incurred by the Contractor by reason granted
of delay’

Interest on late interest is compounded at six- no corresponding provision

progress payment monthly intervals

requirements for a merely requires the contractor to requires the contractor to

notice of delay give written notice of a possible provide details of the delay,
delay and the cause including an estimate of the
delay.

Australian Building Industry Contracts ( ABIC )

ABIC are jointly published by Master Builders Australia Limited (Master Builders) and the
Australian Institute of Architects (Institute). They are intended for use in building projects
where an architect administers the contract. The 2018 revised editions of the ABIC Major
Works (MW) and Simple Works (SW) commercial and domestic documents and template
forms are now available under the relevant state and territory pages.
ABIC contracts are designed to make contract administration clear and less prone to dispute or
time-consuming negotiation. ABIC contracts bring certainty to the process, requiring timely
presentation and resolution of claims. They have been extensively refined and field-tested and
feature:
 ● plain English and a clear, logical structure that reflects the sequence of the construction
process;
● equitable allocation of virtually all project risks to one party or the other, eliminating
uncertainty and many potential disputes;
● an integrated suite of versions for major, simple and basic works, and for housing and
non-housing projects; and
● detailed supporting documents, including a user guide, template forms for the architect
and the contractor.
The SW contract is intended for simpler projects while MW contract is the most comprehensive
contract in the ABIC suite of building contracts. There are additional policy invoved in MW
contract but not SW contract, for example:
● Urgent instruction
● Separable parts to the works
● Change of type of security given by the contractor to the owner
● Provision of security for payment for off-site plant and material
● Provision by the owner of security to the contractor
● Dangerous or contaminated materials
● Encroachments
Other Standard Form
There are numerous standard forms produced apart from those discussed above. Many public
authorities and local government bodies have their own standard forms. Moreover, Master
Builders Australia Ltd and its (State-based) member associations produce standard forms for
various purposes.
Master Builders recommends the use of certain Australian Standards and the ABIC suite but
also has its own forms (some of which are for use nationally and others in certain States and
Territories), for example:
● BC3 (commercial) and BC4 (residential) – lump sum
● CM2012 – Construction Management Contract
● CP3 (commercial) and CP5 (residential) cost plus contract (there are also other cost
plus-based forms in the suite)
● DB1, RBC-1 and RBW 2014 (contract sum >$500,000) – domestic (residential)
building
● HIC5 - home improvement

Malaysia Contract
The Institution of Engineers, Malaysia ( IEM )
IEM has to date produced three standard forms of construction contracts:
● IEM Conditions of Contract for Works Mainly of Civil EngineeringConstruction
● IEM Standard Conditions of Sub-Contract for use in Conjunction with the IEM
Conditions of Contracts for Civil Engineering Works
● IEM Conditions of Contract for Mechanical and Electrical Works.
IEM standard forms essentially are hybrid forms except for the IEM Conditions of Contract for
Mechanical and Electrical Works which essentially follows the corresponding FIDIC standard
form. The various forms published by IEM, it needs to be appreciated, are the only ones
currently for use in private sector civil engineering works and mechanical and electrical works
in Malaysia.
Pertubuhan Arkitek Malaysia ( PAM )
The current PAM building contract form is PAM 2018 Form which is published in two
versions: one with quantities and the other without quantities. The PAM 2018 Contract is the
fourth edition of the PAM standard form of building contract since it was released in 1969.
Since then, the PAM form of contract has become the benchmark as the Malaysian Standard
Form of Building Contract. The 1998 edition was introduced to replace the PAM 1969 form
for a period of ten years, before it was replaced with a completely revamped PAM 2006
Contract in 2007.
Construction Industry Development Board ( CIDB )
CIDB has to date produced two standard forms; one is CIDB Standard Form of Contract for
Building Works and the other is CIDB Standard Form of Sub-Contract for Nominated Sub-
Contractor. 10 It is planned by CIDB that a standard form of Design and Build Contract and
another for Civil Engineering Contract will also be published. It may be of interest to note that
CIDB has also produced a booklet on “Standard Proforma for Contract Administration”which
is expressly stated to be used in conjunction with CIDB Standard Form ofContract for Building
Works.
Jabatan Kerja Raya ( JKR )
JKR has produced a number of standard forms for use in public sector works, both for building
works and civil engineering works. 11 However, it is observed that the forms are also
commonly used in private sector contracts. However, it is not the case that all public sector
works follow the PWD 203 variants of contract forms especially those funded by World Bank
or Asian Development Bank where preference seems to be for the adoption of FIDIC Forms.

Country Risk Management

Australia
Risk Management institute of australia (RMIA)
Risk Management is the systematic approach to protecting the things that we care about and
maximising our chances of success in all fields of endeavor. The Risk Management Institute
of Australasia (RMIA) is the professional institution and industry association for Risk
Managers in the Asia Pacific region. Members of the RMIA cover every sector of the
community and economy segmented into the following broad categories:
● Banking, Finance and Insurance
● Engineering and Construction
● Government
● Information Technology and Telecommunications
● Management Consulting, Education and Training
● Mining and Resources
 ● Not for Profit
● Security and Cyber Risk
● Utilities and Services
RMIA facilitates linkages between Members and offers continuing professional development
opportunities via our annual National Conference, Risk Odyssey Conferences, Best Practice
Guides, Special Interest Groups, Chapter networking events and Education programs.

Enterprise Risk Management courses

The purpose of the course is to provide you with the requisite knowledge to design, implement
and operate enterprise risk programs for the successful management of organisational risk.
Since all organisations, no matter whether private, government or not-for-profit have one thing
in common, they all take risks to achieve their goals. Unfortunately, too many organisations
either don’t have any formal approach to considering the risks they are taking, or they utilise
forms of risk management that are below par. That is, they are not in line with the principles
and guidelines of better practice as defined in AS ISO 31000.
Introducing AS ISO 31000:2018
● The course is aligned to the international standard on risk.
● The standard is a guideline for any organisation that can be adapted to suit the needs
of the organisation.
● It provides principles, framework and process for managing organisational risk.

RMIA Certifications
RMIA Certification is the industry benchmark for recognising quality risk professionals.
Knowledge is power and having the right qualifications, skills and experience can make the
difference in today’s competitive employment market.
RMIA offers a range of opportunities for you to discover that will fast track your career, give
you the industry qualifications you need and keep you up to date with the latest news,
information and resources. Learn more about RMIA’s certifications and find one that is right
for you.
Certification as a Certified Practising Risk Associate (CPRA) or a Certified Practicing Risk
Manager (CPRM) provides the following benefits:
● Demonstrates a members competencies in risk management, leading to enhanced
career options and rewards
● Provides employers with confidence that they are recruiting suitably qualified,
skilled and competent applicants
● Certified members stand out as a candidates for prospective employers and/or
clients
● Provides a pathway for career transitions in the management of risk
● Assists members to achieve status and recognition amongst their professional peers
● As the status of the risk profession increases members benefit from active
promotion of their status as a quality professional
Certified Practising Risk Associate (CPRA) - 12 Months+ Experience in Risk Management
Why CPRA?
1. Jump to the head of the queue when being shortlisted for jobs.
The CPRA provides the recognition and confirmation to potential employers that you have
formal risk knowledge and training.
2. The certification process confirms professional achievements.
Earning the CPRA can assist you with preparing for positions of increasing responsibility or
transition to a dynamic career in risk.
3. CPRAs have access to continuing education and networking opportunities.
CPRAs will join a unique community of like-minded professionals.
4. Talk the same language.
CPRAs will speak the same language as other risk professionals. The CPRA is a trusted
process that ensures that only people who really understand and practice risk are certified.
Certified Practising Risk Management (CPRM) - 5+ Years’ experience in risk
management
Why CPRM?
1. A CPRM® qualification guarantees a currency of risk management knowledge and
professional support for your organisation.
Like other industry certifications the CPRM® adds a level of professionalism and trust.
2. Candidates will gain state-of-the art knowledge.
The CPRM® exam is designed to test concepts associated with Risk Management and
Enterprise Risk Management. The CPRM® certification has direct and ongoing input from
leading risk professionals and risk practitioners from around the world
3. The certification process confirms professional achievements.
Earning your CPRM® certification can help you prepare for positions of increasing
responsibility or transition to a dynamic career in risk. Real world experience is an essential
component of attaining CPRM® certification – so becoming a CPRM means considerably
more than passing an exam.
4. CPRMs have access to continuing education and networking opportunities.
CPRMs will join a unique community of like-minded professionals with numerous
continuing education and networking activities
5. CPRMs enhance their reputation for integrity.
All CPRMs are expected to adhere to principles that promote the highest levels of ethical
conduct and disclosure. Employers know that CPRMs will help safeguard their organisation’s
reputation.

Malaysia
Enterprise Risk Management courses
● In-depth understanding of the types of risks that threaten organization at any given time.
● Knowledge of strategies used by highly successful management team to recognize
risks, assess probabilities and potential impacts, and take steps to respond to risks
 ● Skills in using proven risk identification and analysis tools to identify, analyze, rank,
and quantify risk.
● Insight into the statistical theory and analytical tools which are the foundation for
probability estimations used to analyze and plan for managing risk.
● Introducing ISO31000
Workshop outcome
● Plan Risk Management
Who is responsible for risk management, who should perform the risk analysis, when should it
be done , and when should it be reviewed and updated?
● Identify Risk
What are the most critical risks facing an organization, and how can they be determined?
● Analyzing Potential Risk Probability and Impact
What tools are available to determine risk factors, to determine which risks should be focused
on, and to determine what can be done to remove risk or reduce the potential impact on a
organizational activities?
● Building a Risk Response Plan
How should the management team address each recognized risk, assign it to team members,
build in contingencies, develop a mitigation or avoidance strategy, and accept the risk?
● Selecting Project Control Tools Using Proportionate Expenditure
What are the appropriate control tools that can help to mitigate and manage identified risks in
various situations?

Risk Management Certification

Enterprise Risk Management Associate Professional ( ERMAP )
ERMAP is ideal for practitioners, professionals, or students with less than 3 (three) years of
ERM experience. ERMAP is for professionals with comparatively less experience in the field
of Enterprise Risk Management; but are able to demonstrate an integrated and comprehensive
knowledge of the essential principles and fundamental concepts required for managing
enterprise-wide risks.
ERMAP also proves that you have an integrated and comprehensive knowledge of the
principles and fundamental concepts required for managing enterprise-wide risks.

Enterprise Risk Management Certified Professional ( ERMCP )

ERMCP is ideal for professionals with a minimum of 3 - 6 years of ERM experience. ERMCP
is given to professionals who are well-experienced in the field of Enterprise Risk Management
and can demonstrate their knowledge, experiences, and skills in managing the ERM process,
which consists the following processes: setting the context, identifying, assessing, mitigating,
and monitoring risk.
ERMCP also proves that you have specific experience & expertise in risk, and the ability to
demonstrate knowledge, experiences and skills in managing the ERM process.

Certified in Enterprise Risk Governance

CERG is ideal for professionals with a minimum of 15 years of experience, with exposure to
senior or board roles. CERG is given to high-ranking officers and decision-makers who can
demonstrate their competency through superior knowledge and experiences in assuring and
overseeing the ERM implementation in their organization.
Having a CERG also proves that you can demonstrate competency through superior knowledge
and experiences in assuring and overseeing the ERM implementation in organization.
Bridgit Masson, Introduction to AS 4000, 08 June 2018,
https://www.turtons.com/blog/introduction-to-as-4000

Morgan McIntosh, 10 differences between AS 4000 and AS 2124,12 October 2018

https://www.turtons.com/blog/10-differences-between-as-4000-and-as-2124

ABIC contract,20 August 2018

https://acumen.architecture.com.au/project/building-contracts/abic-contracts/

Oon chee kheng, Standard construction contract in Malaysia : Issue and Challenges,31 May
2002.
https://www.academia.edu/5722671/STANDARD_CONSTRUCTION_CONTRACTS_IN_MA
LAYSIA_Issues_and_Challenges_CK_OON_and_CO._Advocates_and_Solicitors_STANDA
RD_CONSTRUCTION_CONTRACTS_IN_MALAYSIA_Issues_and_Challenges_BY?auto=d
ownload

Property Hunter, PAM rolls out 2018 Building contract , April 2018
https://www.propertyhunter.com.my/news/2018/04/4914/west-malaysia/pam-rolls-out-2018-
building-contract

RMIA, Risk management institute of australia, 2019

https://www.rmia.org.au/

Talent intelligence, Risk management - approach and methodology for effective business
operations 2019
http://softskillsmalaysia.com.my/service.php?service=14

ERMA, ERMA Certification

https://www2.erm-academy.org/region/malaysia/