“Green construction contracts”: an appraisal of the PWD, PAM and CIDB standard form building contracts

Khariyah, Mat Yaman and Zuhairah Ariff, Abd Ghadas (2018) “Green construction contracts”: an appraisal of the PWD, PAM and CIDB standard form building contracts. In: International Conference on Law and Globalisation 2018, 21 Oct 2018, UNISZA.

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Abstract

One of the vital aspects in implementing a sustainable and energy efficient construction project is the contracts. Similar to other type of contracts, parties in construction contracts need to clearly identify their expectations and specifically provide in the contract for the accomplishment of their intention. If the parties are serious on green building or “green” related issues in the project, such interest/objective can best be achieved via terms of the construction contracts. Some of existing construction contracts may include provisions that promote consideration of sustainability issues, but normally such terms are general and not mandatory. For example, in the UK JCT standard form construction contract, there is a provision for optional clauses which encouraged the contractor to suggest economically viable amendments to the works which, if instructed as a change, may result in an improvement in environmental performance in the carrying out of the works. In Malaysia, the standard form contracts which are commonly adopted by the construction industry players are the PWD forms for the government projects and PAM forms for the private projects. The CIDB standard form is also available as another option though it is not as popular as the other two standard form contracts. This paper discusses provisions of the PWD, PAM and CIDB forms in relation to green construction contracts. The main objectives of this paper are to highlight whether existing terms in these standard forms are able to cater for green issues in construction industry and to propose necessary changes so that the contracts could accommodate sustainable and green building projects. The research methodology adopted in this paper is doctrinal and statutory analysis.

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