Variation in the standard form of contract in Malaysia and Indonesia

Variation orders is one of the main causes of disputes in Indonesia’s construction industry. The disputes become more complicated when such orders occur in the lump sum contracts where the contractor is contractually obliged to carry out the work according to the design at the specified sum. It appe...

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Main Author:	Rahmatyo, Bayu Dwi
Format:	Thesis
Language:	English
Published:	2015
Subjects:	TH434-437 Quantity surveying
Online Access:	http://eprints.utm.my/id/eprint/80923/1/BayuDwiRahmatyoMFAB2015.pdf
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id	my-utm-ep.80923
record_format	uketd_dc
spelling	my-utm-ep.809232019-07-24T00:10:47Z Variation in the standard form of contract in Malaysia and Indonesia 2015-09 Rahmatyo, Bayu Dwi TH434-437 Quantity surveying Variation orders is one of the main causes of disputes in Indonesia’s construction industry. The disputes become more complicated when such orders occur in the lump sum contracts where the contractor is contractually obliged to carry out the work according to the design at the specified sum. It appears that, unlike the Indonesian’s Permen PU contract, the Malaysian Public Work Department’s standard form of contract contains clearer variation order provision. The objective of this research is to make a comparison between the variation terms in Malaysia’s, the PWD 203 (1/2010) lump sum contract and Indonesia’s Permen PU No. 07/PRT/M/2011 Book 2A contract. It is hoped that the findings of this research may help to improve the Permen PU’s standard form. The comparison is made based issues that arise in case law in Malaysia which are collected from the online database provided by Lexis Malaysia. From the further careful analysis of the cases, four main issues are identified, those are: one, whether or not there is a variation clause in the contract; two, whether the variation order is within the scope of variation clause; three, whether the variation order is issued according to the procedure set out in the contract; and four, whether the method of the valuation of the variation work used by the employer is the correct method. Based on those issues, the analysis found that there are similarities in the express variation order clauses in both standard forms, mainly they define the scope of work in the contract. However, while in Malaysia the procedures and the methods of valuation are clearly stated in the clauses of PWD Form 203 (Rev 1/2010), in Indonesia they are governed by regulation and not stipulated in the clauses of Permen PU No. 07/PRT/M/2011. 2015-09 Thesis http://eprints.utm.my/id/eprint/80923/ http://eprints.utm.my/id/eprint/80923/1/BayuDwiRahmatyoMFAB2015.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:120131 masters Universiti Teknologi Malaysia, Faculty of Built Environment Faculty of Built Environment
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	TH434-437 Quantity surveying
spellingShingle	TH434-437 Quantity surveying Rahmatyo, Bayu Dwi Variation in the standard form of contract in Malaysia and Indonesia
description	Variation orders is one of the main causes of disputes in Indonesia’s construction industry. The disputes become more complicated when such orders occur in the lump sum contracts where the contractor is contractually obliged to carry out the work according to the design at the specified sum. It appears that, unlike the Indonesian’s Permen PU contract, the Malaysian Public Work Department’s standard form of contract contains clearer variation order provision. The objective of this research is to make a comparison between the variation terms in Malaysia’s, the PWD 203 (1/2010) lump sum contract and Indonesia’s Permen PU No. 07/PRT/M/2011 Book 2A contract. It is hoped that the findings of this research may help to improve the Permen PU’s standard form. The comparison is made based issues that arise in case law in Malaysia which are collected from the online database provided by Lexis Malaysia. From the further careful analysis of the cases, four main issues are identified, those are: one, whether or not there is a variation clause in the contract; two, whether the variation order is within the scope of variation clause; three, whether the variation order is issued according to the procedure set out in the contract; and four, whether the method of the valuation of the variation work used by the employer is the correct method. Based on those issues, the analysis found that there are similarities in the express variation order clauses in both standard forms, mainly they define the scope of work in the contract. However, while in Malaysia the procedures and the methods of valuation are clearly stated in the clauses of PWD Form 203 (Rev 1/2010), in Indonesia they are governed by regulation and not stipulated in the clauses of Permen PU No. 07/PRT/M/2011.
format	Thesis
qualification_level	Master's degree
author	Rahmatyo, Bayu Dwi
author_facet	Rahmatyo, Bayu Dwi
author_sort	Rahmatyo, Bayu Dwi
title	Variation in the standard form of contract in Malaysia and Indonesia
title_short	Variation in the standard form of contract in Malaysia and Indonesia
title_full	Variation in the standard form of contract in Malaysia and Indonesia
title_fullStr	Variation in the standard form of contract in Malaysia and Indonesia
title_full_unstemmed	Variation in the standard form of contract in Malaysia and Indonesia
title_sort	variation in the standard form of contract in malaysia and indonesia
granting_institution	Universiti Teknologi Malaysia, Faculty of Built Environment
granting_department	Faculty of Built Environment
publishDate	2015
url	http://eprints.utm.my/id/eprint/80923/1/BayuDwiRahmatyoMFAB2015.pdf
_version_	1747818280298479616

Variation in the standard form of contract in Malaysia and Indonesia

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