TRANSFORMATION OF DELIVERING SYSTEM: COMPARISON STUDY BETWEEN CERTIFICATE OF FITNESS FOR OCCUPATION (CFO) AND CERTIFICATE OF COMPLETION AND COMPLIANCE (CCC) ‘ADILA BINTI ZAKARIA UNIVERSITI TEKNOLOGI MALAYSIA
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TRANSFORMATION OF DELIVERING SYSTEM:
COMPARISON STUDY BETWEEN CERTIFICATE OF FITNESS FOR
OCCUPATION (CFO) AND CERTIFICATE OF COMPLETION AND
COMPLIANCE (CCC)
‘ADILA BINTI ZAKARIA
UNIVERSITI TEKNOLOGI MALAYSIA
PSZ 19:16 (Pind. 1/07)
DECLARATION OF THESIS / UNDERGRADUATE PROJECT PAPER AND COPYRIGHT
Author’s full name : ‘ADILA BINTI ZAKARIA
Date of birth : 02nd OCTOBER 1985
Title :
Academic Session : 2011/2012
I declare that this thesis is classified as :
I acknowledged that Universiti Teknologi Malaysia reserves the right as follows:
1. The thesis is the property of Universiti Teknologi Malaysia. 2. The Library of Universiti Teknologi Malaysia has the right to make copies for the purpose
of research only.
3. The Library has the right to make copies of the thesis for academic exchange.
Certified by:
SIGNATURE SIGNATURE OF SUPERVISOR
851002-01-5202 DR. NUR EMMA BINTI MUSTAFFA (NEW IC NO. /PASSPORT NO.) NAME OF SUPERVISOR
Date : 31ST JANUARY 2012 Date : 31ST JANUARY 2012
NOTES : * If the thesis is CONFIDENTAL or RESTRICTED, please attach with the letter from
the organization with period and reasons for confidentiality or restriction.
UNIVERSITI TEKNOLOGI MALAYSIA
CONFIDENTIAL (Contains confidential information under the Official Secret
Act 1972)*
RESTRICTED (Contains restricted information as specified by the
organization where research was done)*
OPEN ACCESS I agree that my thesis to be published as online open access
(full text)
TRANSFORMATION OF DELIVERING SYSTEM:
COMPARISON STUDY BETWEEN CERTIFICATE OF FITNESS FOR OCCUPATION
(CFO) TO CERTIFICATE OF COMPLETION AND COMPLIANCE (CCC)
i
DECLARATION
“I/We* hereby declare that 1/We* have read this thesis and in my/our* opinion this
thesis is sufficient in terms of scope and quality for the award of degree of Master of
Construction Contract Management”.
Signature :
Name of Supervisor I : DR. NUR EMMA BINTI MUSTAFFA
Date : 31st JANUARY 2012
Signature :
Name of Supervisor II : MR. NORAZAM BIN OTHMAN
Date : 31st JANUARY 2012
* Delete as necessary
TRANSFORMATION OF DELIVERING SYSTEM:
COMPARISON STUDY BETWEEN CERTIFICATE OF FITNESS FOR
OCCUPATION (CFO) TO CERTIFICATE OF COMPLETION AND
COMPLIANCE (CCC)
’ADILA BINTI ZAKARIA
A thesis submitted in fulfilment of the requirements for the award of the degree of
Master of Construction Contract Management
Faculty of Built Environment
Universiti Teknologi Malaysia
JANUARY, 2012
ii
DECLARATION
I declare that this thesis entitled “Transformation of Delivering System:
Comparison Study between Certificate of Fitness for Occupation (CFO) to
Certificate of Completion and Compliance (CCC)” is the result of my own research
except as cited in the references. The thesis has not been accepted for any degree and
is not concurrently submitted in candidature of any other degree.
Signature :
Name : ‘ADILA BINTI ZAKARIA
Date : 31st
JANUARY 2012
iii
DEDICATION
To my beloved parent and families,
Fiancé, bestfriends, and friends,
Architects and Construction team
ACKNOWLEDGEMENT
In the name of Allah, the Most Gracious and the Most Merciful
Alhamdulillah, all praises to Allah for the strengths and His blessing in completing
this thesis. I wish to express my sincere appreciation to my thesis supervisor, Dr. Nur Emma
binti Mustaffa, for her encouragement, guidance, critics and friendship. I am also very
thankful to all Construction Contract Management lecturers for their guidance, advices and
motivation. Without their continued support and interest, this thesis would not have been the
same as presented here.
My fellow postgraduate students 2010/2011 should also be recognized for their
support. My sincere appreciation also extends to all my colleagues and others who have
provided assistance at various occasions. Their views and tips are useful indeed.
Finally, my deepest gratitude goes to my beloved parent; Mr. Zakaria bin Kamsan and
Mrs. Nurrani binti Mohd Yunus, my fiancé, Taufik bin Hairudin, family and bestfriends for
their unconditional love, continuous support, encouragement and care throughout my studies.
Your kindness means a lot to me. Thank you very much.
v
ABSTRACT
Delivering system in construction industry in Malaysia has been transformed
from a Local Authority certification based (Certificate of Fitness for Occupation;
CFO) to self-certification by a qualified person (Certificate of Completion and
Compliance; CCC) starting from April 2007. The purpose of this study is to identify
differences between CFO and CCC delivering system in terms of procedures such as
the process, and technical requirements, and also in terms of professional liabilities
such as duty of care, biasness, and delay. Will the CCC be merely an ad hoc and
simplistic solution to improve and speed up the delivering system? The findings of the
study show the most preferable delivering system. The study has been done based on
primary and secondary data. Data collections have been analyzed using qualitative
and quantitative method. Ten (10) respondents participated in the survey and twenty
(20) construction projects were chosen for case studies in this research. In the end, the
following results were sought. Of the ten (10) respondents, nine (9) of respondents
prefer CCC delivering system because the principles of CCC system improve the
weakness of CFO system. Most of respondents state that CFO limits the professional
liabilities while CCC extends the liabilities. As a conclusion, all related parties in
construction project especially PSP must clearly understand with the procedures of
delivering system and know their roles and liabilities to improve the system better.
Keywords : Certificate of Fitness for Occupation (CFO), Certificate of
Completion and Compliance (CCC), Procedures, Liabilities
vi
ABSTRAK
Sistem penyampaian dalam industri pembinaan di Malaysia telah berubah dari
sijil perakuan oleh Pihak Berkuasa Tempatan (PBT) iaitu Sijil Kelayakan Menduduki
(CFO) kepada pensijilan sendiri oleh orang yang berkelayakan (PSP) iaitu Perakuan
Siap dan Pematuhan (CCC) bermula April 2007. Matlamat kajian ini adalah untuk
mengenalpasti perbezaan antara sistem CFO dan sistem CCC dari aspek prosedur
seperti proses, dan keperluan teknikal, dan juga aspek liabiliti profesional yang
meliputi tanggungjawab, kelewatan dan isu berat sebelah. Adakah CCC boleh
menjadi penyelesaian yang mudah untuk menambahbaik dan mempercepatkan kaedah
penyampaian ini. Hasil kajian ini akan menunjukkan sistem manakah yang lebih
menjadi pilihan di kalangan pihak yang terlibat. Kajian perbandingan ini dibuat
berdasarkan data primer dan data sekunder. Kutipan data akan dianalisis
menggunakan kaedah kualitatif dan kuantitatif. Sepuluh (10) responden terlibat dalam
soal selidik dan dua puluh (20) projek pembinaan dipilih sebagai kajian kes untuk
kajian ini. Di akhir kajian, keputusan yang diperolehi adalah seperti berikut. Sembilan
(9) responden memilih sistem CCC kerana prinsip dalam sistem CCC memperbaiki
kelemahan dari sistem CFO. Responden juga berpendapat CFO menghadkan liabiliti
professional manakala CCC meluaskan lagi liabiliti professional mereka.
Kesimpulannya, semua pihak yang terlibat dalam projek pembinaan terutama PSP
perlulah memahami prosedur sistem dan tahu tanggungjawab mereka supaya sistem
ini dapat menjadi lebih baik dan berkesan.
Kata kunci : Sijil Kelayakan Menduduki (CFO), Perakuan Siap dan Pematuhan
(CCC), Prosedur, Liabiliti
vii
TABLE OF CONTENT
CHAPTER TITLE PAGE
DECLARATION ii
DEDICATION iii
ACKNOWLEDGEMENT iv
ABSTRACT v
ABSTRAK vi
TABLE OF CONTENT vii
LIST OF FIGURES xi
LIST OF TABLES xii
LIST OF ABBREVIATION xiii
1 INTRODUCTION 1
1.1 Introduction of Study 2
1.2 Background of Thesis 3 – 4
1.3 Statement of Issues 4 – 7
1.4 Objective of Thesis 8
1.5 Scope of Thesis 8
1.6 Significant of Thesis 8
1.7 Research Methodology 9 – 10
viii
2 CERTIFICATE OF FITNESS FOR
OCCUPATION (CFO) & CERTIFICATE OF
COMPLETION AND COMPLIANCE (CCC)
11
2.0 Introduction 12
2.1 Certificate of Fitness for Occupation
(CFO)
2.2 Certificate of Completion and Compliance
(CCC)
2.3 Significant of Final Certificate
13 – 15
15 – 17
17 - 18
2.3.1 Issuing of Vacant Possession
2.3.2 Control of Building Safety
18 -19
19 – 20
2.4 Person Who Involved in Issuing CFO and
CCC
2.4.1 Professionals / PSP
2.4.2 Local Authority
20
21 – 24
25
2.5 Technical Departments
2.5.1 Internal Technical Departments
2.5.2 External Technical Departments
26
26 – 28
28 – 33
2.6 Conclusion 33
3 PROCEDURES & LIABILITIES 34
3.0 Introduction 35 - 36
3.1 Procedure of CFO & CCC
3.1.1 Qualified Person to Issued CFO &
CCC
3.1.2 Documents Needed along the
Procedure of CFO & CCC
37
37 – 38
38
3.2 Procedure of CFO
3.2.1 Qualified Person to Issue CFO
3.2.2 Time Entailment to Issue CFO
3.2.3 Requirement to be Fulfilled When
Issuing CFO
38 – 41
42 – 44
44 – 45
46
ix
3.2.4 Documents of CFO Pprocedure
3.3 Procedure of CCC
3.3.1 Qualified Person to Issue CCC
3.3.2 Time Entailment to Issue CCC
3.3.3 Requirement to be Fulfilled When
Issuing CCC
3.3.4 Documents of CCC procedure
3.4 Conclusion of Procedure of CFO and
CCC
3.5 Roles and Liabilities of Person In-charged
under CFO and CCC
3.5.1 Roles and Liabilities of Local Authority
and Professional under CFO System
3.5.2 Roles and Liabilities of Local Authority
and Professional under CCC System
3.5.3 Negligent under CFO and CCC
3.5.4 Duty of Care under CFO and CCC system
3.5.5 Conflict of Interest under CFO and CCC
System
3.5.6 Civil Action under CFO and CCC system
3.5.7 Delay under CFO and CCC system
3.5.8 Death of PSP under CFO and CCC system
3.5.9 Conclusion of Liabilities for CFO and
CCC system
46 - 47
48 – 51
52 – 53
54 – 55
55 – 56
56 – 57
58
59
59 – 61
61 – 63
63 – 65
65 – 66
67 – 68
68
69
69 – 70
70 – 71
4 ANALYSIS AND FINDINGS 72
4.1 Introduction 73 – 74
4.2 Analysis of Questionnaire
4.2.1 Respondent’s Background and
References Project
4.2.2 Analysis of Comparison Study
Between CFO and CCC Procedure
74
74 – 77
77 – 70
x
4.2.3 Analysis of Comparison on
Duration of Time for CFO and
CCC
4.2.4 Analysis of Comparison Study on
Liabilities Between CFO and CCC
4.2.5 Conflict of Interest Between Parties
Involved under CFO and CCC
4.2.6 Duty of Care under CFO and CCC
4.2.7 Worst Case Scenario under CFO
and CCC
4.2.8 Delay of Final Certificate Issuance
under CFO and CCC
4.2.9 Analysis of Transformation from
CFO to CCC Improve the
Delivering System
4.2.10 Analysis of Biasness Issue and
How to Handle Biasness
4.2.11 Most Preferable Delivering System
80 – 82
83 – 84
84 – 85
86
87 – 88
88 – 91
91 – 93
93 – 94
94 - 95
4.3 Conclusion of Comparison Analysis 96
5 CONCLUSION & RECOMMENDATION 97
5.0 Introduction 98
5.2 Research Finding 99
5.3 Study Constraint 99
5.4 Suggestion for Future Study 100
5.5 Conclusion 101
REFERENCES 102
APPENDIX
xi
LIST OF FIGURES
FIGURE TITLE PAGE
1.1 Methodology of Thesis 10
3.1 Process of CFO Delivering System 41
3.2 Timeline for CFO Delivering System 44
3.3 Process of CCC Delivering System 51
3.4 Timeline for CCC Delivering System 54
4.1 Liabilities of Professionalism under CFO and CCC
System
83
4.2 Percentage of Conflict Happened Between Parties under
CFO and CCC
84
4.3 Common Causes of Delay under CFO System 88
4.4 Common Causes of Delay under CCC System 90
4.5 Respondent’s Opinion on Transformation of Delivering
System Improve the System
91
4.6 Most Preferable Delivering System 94
xii
LIST OF TABLES
TABLE TITLE PAGE
3.1 Forms That Has Been Used Under CFO Delivering
System
39-40
3.2 Qualified Person under CFO Delivering System 42
3.3 Documents to Be Submitted under CFO System 47
3.4 Forms That Has Been Used Under CCC Delivering
System
49 – 50
3.5 Qualified Person under CCC Delivering System 52
3.6 Documents to Be Submitted under CCC System 57
3.7 Summary of Comparison in term of Procedure between
CFO and CCC
58
3.8 Summary of Comparison in term of Liabilities between
CFO and CCC
70 – 71
4.1 Background of the Respondents 75
4.2 References Project by Respondents 76 – 77
4.3 Comparison Findings between CFO and CCC in
Procedure Aspect
78 – 80
4.4 Duration of time for CFO Project Case Study 81
4.5 Duration of time for CCC Project Case Study 81
4.6 Parties Involved in Conflict under CFO System 85
4.7 Parties Involved in Conflict under CCC System 85
4.8 Duty of Care for Parties Involved in CFO and CCC 86
4.9 Action to be Taken in Worst Case Scenario 87
xiii
LIST OF ABBREVIATION
MEANING
BP Building Plan
CCC Certificate of Completion and Compliance
CFO Certificate of Fitness for Occupation
CIDB Construction Industrial Development Board
IEM Institution of Engineer Malaysia
IWK Indah Water Konsortium
JBPM Jabatan Bomba dan Penyelamat Malaysia
JPS Jabatan Pengairan dan Saliran
LA Local Authority
LAM Lembaga Arkitek Malaysia
OSC One Stop Centre
PSP Principal Submitting Person
SP Submitting Person
TCF Temporary Certificate of Fitness for Occupation
TNB Tenaga Nasional Berhad
UBBL Uniform Building by Law
VP Vacant Possession
CHAPTER 1
INTRODUCTION
2
CHAPTER 1
INTRODUCTION
1.1 Introduction
According to the legal dictionary, Certificate of Occupancy is a document
issued by a Local Authority (LA) to the owner of premises attesting that the premises
have been built and maintained according to the provisions of building regulations. It
is an evidence that the building complies substantially with the plans and
specifications that have been submitted to, and approved by, the local authority. It
complements a building permit – a document that must be filed by the applicant with
the local authority before construction to indicate that the proposed construction will
adhere to zoning laws.1 The procedure and requirements for the certificate vary widely
from jurisdiction to jurisdiction and on the type of structure.
Uniform Building By-Laws (UBBL) 1984 states that final certificate issued
under by-law 25 for Certificate of Fitness for Occupation (CFO), CFO shall be given
when a qualified person during the course of work have certified in Form E (Second
Schedule) that they have supervised the erection of building and accept full
1 Legal Dictionary, http://legal-dictionary.thefreedictionary.com
3
responsibility for those portions which they are respectively concerned with and local
authority authorized by it in writing for the purpose that the building has been
inspected. By-law 25A for Certificate of Completion and Compliance (CCC) stated
that a qualified person has supervised the erection and completion of the building in
the conditions imposed by local authority also have been satisfied and he/she accepts
full responsibility for the portions that he/she in concerned with. The Qualified person
shall forward copy of certificate of completion and compliance in Form F (Second
Schedule) to authority and Lembaga Arkitek Malaysia.
1.2 Background of The Thesis
On 13th
April 2007, the issuance of the Certificate of Completion and
Compliance (CCC) by professionals with the objectives to improve the development
processes was launched by The Hon. Malaysia 5th
Prime Minister, Datuk Seri
Abdullah Ahmad Badawi.2 The CCC replaces the Certificate of Fitness for
Occupation (CFO) previously issued by the local authority (LA) under the Uniform
By-Laws of the Street, Drainage and Building Act 1974 (Act 133). The CCC is issued
by the project’s Principal Submitting Person (PSP) who is a Professional Architect,
Professional Engineer or a Registered Building Draughtsman (allowed by the
Architects Act) from the 12th
April 2007. CCC is meant to replace the CFO. With
reference to the statement above, this study is all about the roles transformation in the
context of the changes of procedures and liabilities of the parties involved for the
issuance of CFO to CCC.
This thesis will explain in detail about CFO, CCC and its related issues in
construction. With the aim of removing the perennial complaints of the delays in the
Certificate of Fitness for Occupation (CFO), government makes a radical change in
2 Pertubuhan Akitek Malaysia (PAM) homepage, http://www.pam.org.my
4
the building industry. The CFO is now abolished and replaced by the Certificate of
Completion and Compliance (CCC). Local Authority certification is now replaced by
self-certification by Principal Submitting Person (PSP) like Professional Architect,
Professional Engineer or Registered Building Draughtsman supported by another 21
certificates from other building participants under a matrix of responsibility. The
Street and Drainage Act has been amended as of April 2007 to impose increased fines
(up to RM250,000) and jail sentences (up to 10 years) for offences arising
contravention of the Act in issuing or failing to issue the CCC.3
Some building professionals have welcomed this change and have been
actively promoting it. Others have voiced reservations as regards to its wide-ranging
implications in the building industry. It is not clear whether further entrenchment of
the local authorities’ non-liability will improve the building industry delivery system.
Similarly, it is not clear whether this shifting of responsibilities between LA to
building professionals will the rising plethora of claims and complaints.
The study will examine the principal legal implications arising from the
implementation of the CCC including possible areas of contention. It will also attempt
to offer possible solutions, which various players in the building industry may adopt to
ensure that their positions are protected. The issue is to improve the building industry
delivery system and ameliorate probable liabilities and avoid incarceration.
1.3 Problem Statement
Final Certificates of completion and compliance with building standard and
regulations for building which is subject as a Building Warrant should only occupy if
3 Act 133, Street and Drainage Act 1974
5
the building has been granted a Temporary Occupation Certificate or a Completion
Certificate by LA. There are standard forms prescribed by Act of Parliament that
certify that the project has been completed in accordance with Building Standard
Regulations. Only LA will issue them, not architects or contractors. Traditionally
architects and contractors make an application and LA will inspect and issue
“Certificate of Completion”. However, starting 2007 there are new arrangements
under Building Act will apply, making it necessary for the developer or owner as
appropriate, to certify that the building complies with the regulations. The certifier
may enclose with their certificate, certificates from approved certifiers of construction
that shall be conclusive as to what they are certifying.
The government sees it fit for professionals to undertake the CCC system
because there is a check-and-balance being introduced in the system in the form of
“Matrix of Responsibility”. A total of 21 Certification Forms will be endorsed along
the entire constructional process. These forms are gazetted as Schedules (Form G1 –
G21) under the revised Uniform Building By-Laws, 1984 – Amendment 2007. Matrix
of Responsibility is lays out the major activities in the project and precisely details the
responsibilities of each stakeholder involved in a project. It is an important project
communication tool because all stakeholders can see clearly who to contact for each
responsibility.
The relevant sub-contractors and/or licensed trade contractors and the PSP
shall certify each of the 21 Form Gs that each stage of the works has been completed
in accordance with the Approved Building Plans. Thus, the Matrix of Responsibility
with the implementation of the 21 Forms Gs will make everyone accountable for their
respective scope of work. Nonetheless, the Local Authorities are empowered to stop
the issuance of the CCC in the event of non-compliance with the conditions of the
building plans approval and/or the relevant Acts.
Regarding to the transformation system from CFO to CCC, there are some
issues arose in issuing final certificate and become the reasons for these changes. One
6
of the main issues is about the weakness of CFO system where it takes long time for
inspections especially on the hidden part like structural elements, electrical
conducting, materials used and others because they do not know about the
constructions progress and quality for the materials because local authorities’
representatives come during the completion of works for site inspections.
Another problem that has been identified in CFO system is late issuing of
Vacant Possession (VP) that make the owner cannot move in quickly.4 In CCC
system, VP can be issued together with final certificate so owner can use the building
as soon as the building was certified by professionals. For developers, issuing VP is
very important to them to avoid loss especially when they build houses. So, buyers
can move in to the houses earlier if the VP was issued earlier.
Transformation of final certificate issuance from CFO to CCC also transferred
the responsibility from Local Authority to Professionals. Under former system, CFO,
Local Authority will issuing building certificate but under CCC, Professionals are
responsible in issuing the building certificate. The CCC system replaces the weakness
of CFO system. Other issue is Professionals’ role in achieving CCC and his liability
afterwards where Professionals need to get approvals and recommendation from all
the relevant technical agencies (L.A, Fire Department, TNB, etc). A complete project
under CCC is no longer under the liability of L.A but Professional is fully responsible
for it (issuance of CCC from the professionals)
According to Street, Drainage and Building (Amendment) Act 2007, this is an
act to amend the Street, Drainage and Building Act 1974. No certificate of completion
and compliance shall be issued except by a 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 thereunder. Before the issuance of a certificate of completion
4 Pertubuhan Akitek Malaysia (PAM) homepage, http://www.pam.org.my
7
and compliance, it shall be the duties and responsibilities of the Principal Submitting
Person to:
(a) 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 thereunder;
(b) ensure that the building has been duly constructed and completed in
conformity with the approved plans and the requirements of this Act or any by-
laws made thereunder and that all technical conditions imposed by the local
authority has been duly complied with;
(c) ensure that the building is safe and fit for occupation
Street, Drainage and Building Act 1974 has been amended to fit with CCC
system. However, there still have problems and conflict arise in new format of CCC
like conflict of procedure in issuance CCC at different Local Authority and offences if
the Professional have negligence and unfair when issue a certificate. These issues have
been discussed in these research based on project cases analysis.
Questions arise:
1) Will the CCC via the self-certification doctrine be merely an ad hoc and
simplistic solution to speed up the delivery system?
2) How independent are the PSPs entrusted in the issuance the CCC? Will the
CCC self-certified by PSPs who are not independent reflect the true state of
completion, compliance, quality of building works and value for money of the
finished products?
3) Is the move to replace the CFO with the CCC to a complete substitute for LA
control? Who then will be responsible for taking any enforcement actions?
8
1.4 Objectives of The Thesis
The objective of the thesis is to do a comparison study of delivering system
between CFO and CCC in two major aspect; procedure and professional liabilities.
1.5 Scopes of The Thesis
The main thrust of this dissertation is on determining the issues arise in two
different delivering systems CFO and CCC. The scope of this study will be confined
to the comparison study of issuing final certificate between CFO and CCC including;
i) Procedures of CFO and CCC delivering system
ii) Liabilities of Local Authority and Professionals in final certificate
issuance under CFO system and CCC system
1.6 Significant of The Thesis
This research is very important in order to give a guideline for the
professionals in order to manage project successfully. This is because they are the
people who coordinate a project. Principal Submitting Person must know and possess
the required expertise on the process and technical matters of the project from
beginning until the end of the project.
9
This research also gives some information about professionals’ roles and
liabilities. Responsibility for professionals in each project they involved are very
complicated and from the preliminary stage until issuance of final certificate CFO or
CCC where they need to get approvals and recommendation from all the relevant
technical agencies.
As a comparison study, the findings show the differences between CFO and
CCC in two major aspects; procedures and liabilities. The persons who are involved in
building project under CFO or CCC system are clear with the procedures and
liabilities for the portions which they are respectively concerned.
1.7 Methodology of The Thesis
In pursuance of the aim or objective as stipulated above, the primarily methods
that have used to complete this project are research by literature review. Sources for
literature review are from books, journals, newspaper article, notes and magazines.
These sources provide a lot of data that can help to determine the background of the
research, about the CFO system and CCC system.
Chapter 1 of this research is an introduction stage with the overall overview of
CFO and CCC While in Chapter 2, this research will elaborate an extensive Literature
Review on background of CFO and CCC, its significance, person involved and roles
of relevant technical departments. In Chapter 3, procedures of CFO and CCC and
professional liabilities will be discussed throughly. Procedure of CFO and CCC
includes process, timeline, requirements and documentation. Liabilities under CFO
and CCC includes roles and liabilities, negligent, duty of care, civil action, delay and
death of PSP.
10
After data collection stage, the following stage is the data analysis stage and
will be elaborated in Chapter 4. In this, analysis has been founded focus on the
feedback from respondents regarding liabilities and procedures of CFO and CCC.
Methods of this study include questionnaire and interviews with several Professionals
and Local Authority officers. All questions are related to procedure and liabilities
under CFO and CCC. Case study for this research is project that has been in-charged
by respondent. Finally as in Chapter 5, present the conclusion of research and
recommendation.
Transformation of Delivering System:
Comparison Study between CFO and CCC
CHAPTER 1
Background, Issues, Objective, Scope,
Significant, Methodology
CHAPTER 2
CFO and CCC
(Background, Issues, Person
involved, Technical Department)
CHAPTER 3
Procedure & Liabilities
(Process, timeline, requirements,
document, liabilities, negligent, etc)
Literature Review
CHAPTER 4
Analysis & Findings
(Project Analysis, Questionnaires,
Interviews)
CHAPTER 5
Conclusion & Recommendation
Figure 1.1: Methodology of Thesis
CHAPTER 2
CERTIFICATION OF FITNESS FOR
OCCUPATION (CFO) &
CERTIFICATION OF COMPLETION AND
COMPLIANCE (CCC)
12
CHAPTER 2
CERTIFICATE OF FITNESS FOR OCCUPATION (CFO) AND
CERTIFICATE OF COMPLETION AND COMPLIANCE (CCC)
2.0 Introduction
Government agreed to introduce CCC by Professionals to improve the delivery
system of completion building to replace CFO which was issued by LA. This new
delivering system has been introduced to the industry after deep study and research by
Ministry of Housing and Local Government (Kementerian Perumahan dan Kerajaan
Tempatan) together with all parties involved in construction industry. Delivering of
CCC by Professionals is one of the steps of self-regulation and self-certification
approach which is consistent with government aim as highlighted in planning of
Malaysia economy.5 It is to enhance the competitiveness of Malaysia globally
especially in delivering system of the project in effort to decrease bureaucracy in
system. CCC will make the investor dealing with government easier.
The CCC system also ensures that Vacant Possession (VP) can be issued
together with CCC. This will overcome problems previously associated with CFO
5 Langkah 70(d) Strategi Baru Merancang Pertumbuhan Ekonomi Negara, Kementerian Perumahan dan
Kerajaan Tempatanan
13
where home buyers 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.
This research will elaborate thoroughly what are the problems in Malaysia
construction industry especially in technical aspects which become one of major
reason the transformation of building certificate CFO to CCC. Based on these
problems, the liabilities and responsibilities for any particular buildings transfer from
LA to Professionals. This study will discuss what is the different between CFO and
CCC, what is the conflict arose from this transformation between Professionals and
LA, what are the Professionals’ roles in issuance of CCC and their liability afterwards,
and the difference between Malaysia submission procedure and building certificate
issuance with other country.
2.1 Certificate of Fitness for Occupation (CFO)
Certificate of Fitness for Occupation (CFO) is a written certificate, given or
granted under the Uniform Building By-Laws; which certifies the building was
complete and safe for occupation with the complete infrastructure and complies with
the regulation of LA. Referring to Section 25(1)(b), Uniform Building by Law
(UBBL) 1984, the clause mentioned that the CFO shall be given when;
All essential services, including access roads, landscape, car parks, drains,
sanitary, water and electricity installation, fire lifts, fire hydrant and others
where required, sewerage and refuse disposal requirements have been provided.
14
Under by-law or rule 25, it is stated that a CF “shall be given” when “the
qualified persons” have certified (in Form E of the Second Schedule, which is an
application for the issuance of a CF) that:
they have supervised the erection of the building to the best of their knowledge
and belief, the building has been constructed in accordance with these By-laws
and any conditions imposed by the local authority (In other words, it is in
accordance with the Building and Structural Plans): and they accept full
responsibility for those portions which they are respectively concerned with.
This certification shows that the development was satisfactory with LA
approval plan and regulations. CFO has been used in construction industry in
Malaysia for the buildings which are the plan submitted before 12 April 2007. Under
CFO, LA will inspect the building after the construction complete. There are two
types of technical department involves in issuing CFO which are internal technical
department and external technical department.
The process of CFO delivering system
Process of CFO requires process from submission of plan until completion of
the project and issuing final certificate by Local Authority to certify that the building
is safe to users. Under CFO delivering system, there are 6 types forms have been used
from beginning until completion of construction. They are Form A, B, C, D, E, and F.
Process begins with submission of Form A for Building Plan submission. Then the
process continues when commencement of work requires submission of Form B. After
that Form C must be submitted to authority as notice of demarcation at the site done.
Then, professional has to submit Form D after substructure work done. When the
construction complete, professional will submit Form E as notice of completion the
work and building ready for inspections.
15
Finally, Local Authority will issue Form F as evidence that the building is
ready and comply with all requirements and safe to users. These form is prove that the
building already certified with Certificate of Fitness for Occupation (CFO). Under
CFO system, there also has Temporary Certificate of Fitness for Occupation (TCF)
which is for building or project which already get recommendation from main
technical department but still pending minor work that not affect the whole building.
However, TCF is valid for six months only. Professionals have to ensure that any
pending issues have to be settled within this period so TCF can be change into CFO.
2.2 Certificate of Completion and Compliance (CCC)
Certificate of Completion and Compliance (CCC) is a final written certificate
which certifies the building is safe and comply all regulations of LA. CCC will be
issued after Professionals submits 21 forms (Form Gs) that declaration of
responsibility on the particular building elements. The CCC is issued by the project’s
Principal Submitting Person (PSP) who is a Professional Architect, Professional
Engineer or a Registered Building Draughtsman allowed by the Architects Act to
issue a CCC for buildings not exceeding two storeys and an area less than 300 square
meters.
The CCC system also ensures that Vacant Possession (VP) can be issued
together with CCC. This will overcome problems previously associated with CFO
where home buyers 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.
16
The operation of CCC is contained in the Amended Uniform Building By-
Law. While the Act (Streets, Building and Drainage Act) has come into force, UBBL
is required to be gazetted by each state before CCC can be implemented. The
implementation of CCC by the local authority will therefore vary. The CCC replaces
the CFO previously issued by the local authority (LA). The CCC system came into
force effective 12th April 2007.
The CCC, which replaces the Certificate of Fitness for Occupation (CFO), has
been put in force to enable smoother deliveries of completed buildings to their
eventual owners or users. Specifically, under the revised Acts, the Professional
Architect or Professional Engineer or Registered Building Draughtsman of a project
who submits the building plans (PSP) will have to issue the CCC before owners can
take possession of their properties and live in them.
The process of CCC delivering system
Process of CCC requires process from submission of plan until completion of
the project and issuing final certificate by Professionals to certify that the building is
safe to users. Under CCC delivering system, there are 4 types of forms have been used
from beginning until completion of construction. They are Form A, B, G1-G21, and F.
Some of the forms used are remain from CFO system. Only Form C, D and E have
been replace with twenty one Form G for Professionals in-charged to certify all the
work of the construction. Process begins with submission of Form A for Building Plan
submission. Then the process continues when commencement of work requires
submission of Form B.
There are three stages of CCC process which are substructure stage,
superstructure stage and services stage. After substructure stage done, professionals
17
will submit Form G1-G3 to Local Authority as notice that the work was done under
their supervision and they responsible on it. Then the same process for superstructure
works. At this stage, professionals have to apply for inspections from respective
technical department which control the regulations and requirements based on stated
in Form G. After the inspection passed, technical departments will issue
recommendation letter for the building, so professionals must submit Form G4-G12
together with recommendation letter to Local Authority.
At the third stage, services stage applies the same process as superstructure
works. Professionals have to apply for inspections from respective technical
department. After the inspection passed, technical departments will issue
recommendation letter for the building, so professionals must submit Form G13-G21
together with recommendation letter to Local Authority. Finally, architect will issue
Form F as evidence that the building is ready and comply with all requirements and
safe to users. Under CCC format, there is no temporary CCC, but there has Partial
CCC which is almost same as TCF but Partial CCC requires same procedure as CCC
but it will given partly based on application. The architect will issue Form F1 as prove
that particular part of building is ready to use and safe to users.
2.3 Significant of Final Certificate (CCC & CFO)
Section 28, UBBL 1984 stated that “no person shall occupy or permit to be
occupied any building or any part thereof unless a CFO, Partial CFO or Temporary
CFO has been issued under these By-laws for such building and any failure to comply
with this by-law shall render such person liable to prosecution under the Act”. As
mentioned, CFO will be issued by Local Authority of that particular area. From April
12, 2007 onwards PSPs will issue the Certificate of Completion and Compliance or
the “CCC” to legalize the occupation of all buildings as a replacement to the CFO.
18
Thus, the PSPs are taking over the responsibilities of the Local Authorities to issue
CFO. There are six related Acts were amended for implementation of CCC including
Architect Act 1967, Housing Development (Control and Licensing) Act, 1966, Street,
Drainage & Building Act 1974, Uniform Building By Law 1984, Registration of
Engineers Act 1976 and Strata Titles Act 1985.
Once all inspections have been obtained a final certificate will be issued. Final
Certificate either CFO or CCC is an important written notice to all parties especially
for owner of the building. Certificates of Occupancy can be obtained for existing
buildings upon written request from the owner. Provided there are no violations of law
or orders of the building official pending, and it has been established after inspection
and investigation that the alleged occupancy of the building or structure has heretofore
existed, the building official shall issue a CFO or CCC. Significant of final certificate
as follow:
2.3.1 Issuing Vacant Possession
Notice of vacant possession is a notice from developer which requests the
purchasers to take the particular possession. Existence laws highlighted that after 14
days duration of notice end, purchasers were assumed already takes the possession.
Vacant possession issued by developer after they allow buyers takes notice of vacant
possession subjected to the complete construction which is certified by Professional
Architect, water and electric supply already connected to the building and purchasers
already make all payments due to laws. Vacant possession will be issued attached with
final certificate. Issuing vacant possession is important to developer especially for
housing project.6
6 Pelaksanaan Kaedah Pengeluaran Siap dan Pematuhan oleh Para Profesional, Kementerian Perumahan
dan Kerajaan Tempatan, Second Edition, pg 5
19
Giving 'vacant possession' refers to a legal obligation to ensure that a property
is in a state fit to be occupied at a given point in time. Vacant possession is most
commonly known of on the sale and purchase of residential property and many find
that, on the purchase of a new home, they do not obtain vacant possession as desired.
The concept is also an essential element in the grant and termination of leases and
other tenancy agreements.7
Vacant Possession only can be issue if the building was certified by the
professionals (CCC) or Local authority (CFO) comply with all regulations and safe to
users. It means after final certificate was issued, and then the developers can issue
notice of vacant possession to purchaser. Under CFO system, final certificate will be
issued by LA, so the delay of issuing CFO will brings the late issuing of vacant
possession and this issue will make the developer suffer loss. On the other hand, under
CCC system, vacant possession can be issued together with issuance of CCC because
the final certificate will be authorized by the Professional who in charge the project.
Developer can gives vacant possession to purchaser earlier.
2.3.2 Control of the Building Safety
Final certificate as prove that the building is complete and safe to users. The
building has to go through all related technical inspections by local authority and
professional to ensure that the building was complete and comply with all
requirements and regulations. This is important to ensure that the construction is under
control and fulfill the regulation stated by local authority or by law.
7 http://en.wikipedia.org/wiki/Vacant_Possession
20
The progress of the construction will be controlled either under CFO system or
CCC system from the beginning until the end of project. However there are different
procedure in CFO and CCC to control the project development. But in the end, both
systems will produce final certificate for the building. After the final certificate was
issued, then the building can be hand over to owner and certified by authority or
professional that the building is safe.
After issuing final certificate, the building still under warranty for the defect
occurs during defect liability period. Basically, the duration of defect liability period is
about 12 to 18 months. If final certificate was not issued to the building, purchaser did
not allowed to permit the premises and if the defect liability period cannot be counted
for the building. If any problems of the building occur, but the purchaser enters the
building without final certificate, developer or professional did not responsible to any
inconvenience.
2.4 Persons Who Involved in Issuing CFO or CCC
There are two main person involved in issuing final certificate. For CFO
system, local authority is the party who issuing final certificate. Under CCC format,
professionals or also known as Principal Submitting Person (PSP) for the particular
project will issue the final certificate to that building. However, both parties’ plays
roles and liabilities to all projects they involved either under CFO format or CCC
format.
21
2.4.1 Professionals / Principal Submitting Person (PSP)
Professional traditionally means a person who has obtained a degree in a
professional field. The term ‘professional’ is used more generally to denote a white
collar working person, or a person who performs commercially in a field typically
reserved for hobbyists or amateurs. In construction industry, Professional such as
engineers, architects and surveyors play a very important role. The precise meaning of
the term ‘professional’ probably depends upon the points of view of the person using
it. It is understand in the sense of sociologist and lawyers as a person whose work and
attitudes contain particular characteristic of which the work itself is generally skilled
and specialized, mental rather than manual and usually the product of training and
even examination rather than experience8.
John L. Powell9 mentioned “Professional" as an acquisitive concept,
acquisitive of aspirations and expectations but also of liabilities. A professional can
be either a person in a profession (certain types of skilled work requiring formal
training or education) or in sports (a sportsman or sportswomen doing sports for
payment) and indicate a special level of quality of goods or tools sometimes also
known as commercial grade10
.
Under construction industry, basically the Professionals who involved with
from the beginning until completion of the project also known as “Principal
Submitting Person” which means a qualified person who submits building plans to the
local authority for approval in accordance with this Act or any by-laws made
hereunder and include any other qualified person who takes over the duties and
responsibilities of or acts for the first mentioned qualified person. “Qualified Person”
8 Patten B (2003) Professional Negligence in Construction Spon Press : London Page 1
9 John L. Powell. Professional Negligence The Changing Coastline Of Liability at
http://www.4newsquare.com/Files/PDF/Article/JP%20article.doc 10
Howard (2000), Professional Ethics and Rules of Conduct for the Royal Institution of Chartered
Surveyors (RICS), United Kingdom : College of Estate Management
22
means a Professional Architect, Professional Engineer or building draughtsman
registered under any written law relating to the registration thereof.
i) Professional Architect
The architect should be the master-builder - the leader of the building industry
team. The word 'architect' is derived from the Greek root arch meaning 'chief' and the
word teckton meaning 'carpenter or builder'. Architects are qualified to design and
administer the erection of buildings, and must possess both theoretical and practical
knowledge. Their work is a science as well as an art, for they must produce a structure
as well as create form, and must combine aesthetic effect with practical
considerations.11
Rimmer (1952) stated that, all such matters must come within the general
control of the architect, How far he may be able to shed responsibility for the
scientific and business aspects of the matter will be discussed later. It is submitted,
however, that the dictionary definition can in no way be regarded as a true indication
of the full duties and responsibilities of an architect who accepts employment as such
by a person desirous of erecting a modern building.12
"Professional Architect" means a person registered under subsection 10(2)
Architect Acts 1967. Subject to this Act, the following persons shall be entitled on
application to be registered under Section A of the Register as Professional Architects:
(a) any person who –
(i) is a registered Architect;
(ii) has obtained the practical experience as prescribed by the Board
and passed the examinations as may be determined by the
Board under paragraph (1)(b); and
11
David Chappel & Andrew Willis (2006) The Architect in Practise : Blackwell at pg 7 12
E.J. Rimmer (1952), Rimmers Law Relating To The Architect : London Sweet & Maxwell, pg 1
23
(iii) is a Corporate Member of the Pertubuhan Arkitek Malaysia or
has obtained a qualification which the Board considers to be
equivalent thereto .
ii) Professional Engineer
An engineer is a professional practitioner of engineering, concerned with
applying scientific knowledge, mathematics and ingenuity to develop solutions for
technical problems. Engineers design materials, structures, machines and systems
while considering the limitations imposed by practicality, safety and cost.13
The
word engineer is derived from the Latin root ingenium, meaning "cleverness"14
"Professional Engineer" has the meaning assigned to it in the Registration of
Engineers Act 1967. "Professional engineering services" has the meaning assigned to
it in the Registration of Engineers Act 1967. Section 10(2) highlighted that; the
following persons shall be entitled on application to be registered as
Professional Engineers:
(i) Any person who –(Act A1158)
(a) is registered as a Graduate Engineer and has obtained the
practical experience as prescribed under paragraph
(1)(b) ;(Act A1158)
(b) has passed a professional assessment examination conducted by
the Board, or is a Corporate Member of the Institution
of Engineers(Malaysia); and (Act A1158)
(c) has complied with all the requirements of the Board;
13
Bureau of Labor Statistics, U.S. Department of Labor (2006). "Engineers".Occupational Outlook
Handbook, 2006-07 Edition. Retrieved 2006-09-21. 14
Oxford Concise Dictionary, 1995
24
The right of a Professional Engineer or Engineering consultancy practice to
submit plans, engineering surveys, drawings, schemes, proposals, reports, designs or
studies to any person or authority in Malaysia is subject to any conditions or
restrictions imposed by the Board under section 7 B, subsection 7 A (3) or 10 A (1), or
paragraph4(1) (b) , and is restricted to the right to submit such documents only in
relation to the branch of engineering in which the Professional Engineer including the
Professional Engineer in an Engineering consultancy practice, is qualified as shown
by the entries made in the Register under subsection 5(2).
iii) Registered Building Draughtsman
Architect Acts 1967 stated that "Building Draughtsman" means –
(a) any person who immediately before the appointed date was a specially
authorized person within the meaning of the Architects Ordinance
1951[Ord. 48 of 1951], registered under Part II of the register kept and
maintained under that Ordinance but shall not include any person qualified
for registration under the Registration of Engineers Act 1967 [Act 138], or
the Quantity Surveyors Act 1967 [Act 487]; and
(b) Any other person whom the Board in its absolute discretion may deem
desirable to register having regarded to his qualification and experience
and to the requirements of any Building Authority
However, registered Building Draughtsman only become qualified person for
the building not exceed than 2-storeys and an area less than 300sqm.
25
2.4.2 Local Authority (LA)
Local Authority or Local Government refers collectively to administrative
authorities over areas that are smaller than a state.15
Local Authority means any city
council, municipal council, town council, town board, local council, rural board or
similar local authority established by written law and in relation to the Federal
Territory means the Commissioner of the City of Kuala Lumpur appointed under
section 3 of the Federal Capital Act 1960 (Act 190)
Local Authority generally acts within powers delegated to it by legislation or
directives of the higher level of government and each country has some kind of local
government which will differ from those of other countries. Local authority have
power to the building as stated in Architect Acts 1967, "Building Authority" means
any local authority required under any written law to approve building plans.
Basically, Local Authority (LA) refers to administrative authority at the area.
Before LA issuing CFO, they will compile all the recommendation for the building by
every technical department (internal and external). These particular technical
departments will inspect the building for issuing final certificate purposes. After all
recommendation complete, then LA will issue CFO. Under CCC format, these
technical departments still have to give recommendation for final certificate, but
professionals will compile and issuing CCC.
15
http://en.wikipedia.org/wiki/Local_authority
26
2.5 Technical Departments
There are two categories of technical department involves in issuing final
certificate either CFO or CCC. Those are internal technical department and external
technical department. All departments will inspect the particular building before
issuing final certificate either CFO or CCC. As for CCC, even though the
Professionals will issues the certificate, some technical departments still have to
inspect and give recommendation before the certificate issued.
2.5.1 Internal Technical Department
Internal technical department is department under local authority. These
departments only control the project under zone or area of local authority. Basically,
there are four department involves; Building, Engineering, Landscape and Health
Department. These departments will go for inspection after the construction finish and
Professional already get the recommendation from external technical department. All
departments have their liabilities for the project.
i) Building Development Control Department
Building Development Control Department is main internal technical
department where this department will check the Building Plan (BP) submission
before approval. Building Department will ensure that the planning comply the
requirements and by law. Building Department will give recommendation letter before
approve the submission. After submission, under CFO format, all forms have to be
submitted to this department accordingly until application for CFO which was issued
by LA. While under CCC format, Building Department only received Form A and B.
27
this is because PSP will issue final certificate and they will send copy of Form G to
One Stop Centre (OSC).
Building Department will inspect the building after completion. PSP will apply
for inspection before issuance of final certificate either by LA under CFO format or
PSP for CCC format. Building department controls more to architectural elements and
ensures that PSP responsible to the building under their supervision fulfilled all the
requirements and guidelines by authority.
ii) Engineering Department
Engineering Department of Local Authority will control structural and
mechanical elements. Basically engineering department divided into two units. There
are civil department and mechanical department. Engineering Department (Civil) will
control structural, road and drainage of the building. Engineering Department
(Mechanical) will control mechanical and electrical elements of the building. These
two departments responsible to check both all requirements and standards have been
fulfilled by PSP or not.
Engineering department close with professional engineer where Professionals
have to ensure that the building comply with all requirements by this department.
Engineering department must check structural and infrastructure plan when PSP make
submission of the building proposal. After construction complete, PSP will request for
inspection. It is important for Engineering Department to inspect and issues
recommendation letter for the building in both delivering system.
28
iii) Landscape Department
Landscape Department engaged with Landscape Architect. It is compulsory for
any development to provide green area as restricted in UBBL 1984. Landscape
department has to check submission of Landscape Plan by Landscape Architect and
give approval and recommendation letter for final certificate issuance. Landscape
department has their standard and guidelines about landscape that must be followed by
Professionals. This department will check the plan for approval and inspect the site for
recommendation letter for CCC and CFO issuance. Responsibility of Landscape
department same as other departments but focus on landscaping works.
iv) Health Department
Under CFO delivering system, Health Department must inspect the building
and issue recommendation letter before issuance of CFO by Local Authority. This
department will check on the safety, sanitary and cleanliness elements of the building
to ensure that the building is not just safe to users but also comfort. Anyway, under
CCC system, no recommendation from this department needed for PSP to issue final
certificate.
2.5.2 External Technical Department
External technical department is other technical department that involves in
issuing CFO like Jabatan Bomba dan Penyelamat Malaysia (JBPM), Jabatan
Perparitan dan Saliran (JPS), Indah Water Konsortium (IWK), Jabatan Bekalan Air
(JBA), Tenaga Nasional Berhad (TNB), Telekom Berhad, Department of Safety and
Health (DOSH) and any other related department. All these departments will issues
29
letter of recommendation for CFO or CCC for the particular project. Liabilities for
each technical department as follow:
i) Jabatan Bomba dan Penyelamat Malaysia (JBPM)
Fire department, JBPM is the most important department to recommend either
the building is safe to users or not. Before the development approve by Local
Authority, architect and mechanical engineer (if necessary) must submit the plan to
JPBM to get approval. After JBPM approved, then the building plan can be approved
by Local Authority. JBPM will ensure that fire safety must be follow Uniform
Building by Law (UBBL 1984) or any equivalent. JBPM plays very important roles to
check and approve the building plan and fulfill the requirements of fire safety in
passive and active system. JBPM also will standardize the code and standard of all fire
protection elements that have been used in the building especially for any building that
have system in it.
JBPM will processes the submission plan within fourteen (14) days for
building plan without system and twenty one (21) days for building plan with system
from the date of submission to the department. The building plan must be complete
and comply all the requirements with necessary documents.16
After the building plan
approved by JBPM, professionals must ensure that contractors follow the plan while
construct the building. After the construction of the building complete, either in CFO
format or CCC format, JBPM will inspect the building and issues a recommendation
for final certificate if the building is safe to the users. Recommendation for CFO or
CCC will be issued within 14 days after the inspection.
16
www.bomba.gov.my
30
ii) Tenaga Nasional Berhad (TNB)
TNB is a department of controlling electrical and power supply. Professionals
(Mechanical and electrical engineers) must submit electrical plan of the building to
TNB and pay the contribution fees to connect the power supply from the nearest main
substation to the building. After the payment made and the plan approved, TNB will
go to the site for inspection before connection made. Then the contractor can proceed
with their works. Professionals must ensure the construction as plan.
After the building complete, Professionals must request from TNB to inspect
the building and issues a recommendation for final certificate either CFO or CCC.
After satisfy while doing the inspection, TNB will issues a recommendation within 14
days to professionals or Local Authority proceed for issuing final certificate. If TNB
did not issue recommendation, final certificate cannot be issue and the power supply
will not connect to the building.
iii) Jabatan Bekalan Air (JBA)
Water supply is one of the main elements before issuing final certificate to
building which to ensure that the building is ready to user especially for the building
amenities like water supplies. Professionals have to submit building plan for internal
sanitary system and external sanitary system. The plan must be submitted to local
water supply department. Building sanitary system will directly connect to nearest
main pipe to get water supply. These submissions have to be done by civil engineer
for external sanitary system and mechanical engineer for internal sanitary system. The
plan will show the calculation of total of water supply needed in building is enough.
After the plan approved by department, contractor can proceed the construction based
on the submission plan.
31
After the construction completed, professionals must get the recommendation
from this department before issuing CCC or CFO (by LA). Local water supply
department will inspect the system before issuing recommendation. If the building did
not get recommendation, final certificate cannot be issued by professionals or LA.
Basically the department will issue recommendation within 7 days after the
inspection.
iv) Telekom Malaysia Berhad
Under CCC format, recommendation for final certificate from Telekom
Malaysia Berhad is compulsory. Telekom will give recommendation on
communication services in the building. Professionals (mechanical and electrical) are
the person who responsible to get approval by Telekom for communication connection
for the building likes telephone and internet. Professionals have to submit plan for
telephone or internet lines to Telekom. After the proposal plan approved by Telekom,
contractor proceed the work follow the approval plan controlled by professionals.
Same as other departments, after the construction complete, Telekom will inspect and
issues recommendation letter to the building for final certificate purpose either CCC
or CFO.
v) Indah Water Konsortium (IWK)
Indah Water Konsortium (IWK) also one of the most important departments
that must approve the building plan and recommend for final certificate. Professionals
(civil engineer) have to submit building plan to IWK to get approval on sewerage
system of the building. Professionals have to confirm type of sewerage system and the
nearest sewer or treatment plant. After get approval from IWK, professionals must
ensure the construction follow the plan. Approval of sewerage system of the building
referred to Section 174 of Water Services Industry Act 2006 (Act 655). There are 8
32
PDC form must be submitted to IWK from the beginning of the project until the end.
These PDC form will be certified by professionals.
When the building construction is complete, IWK will check all the PDC form
that has been submitted and come to the site for final inspection before issuing
recommendation for the particular building. There are three types of inspection by
IWK before give recommendation for final certificate. After pass all the inspection
IWK will issue recommendation within seven days. Then professional can proceed to
issue CCC or apply for CFO.
vi) Irrigation and Drainage Department (JPS)
JPS is a department that controls the irrigation and drainage. PSP need to
submit BP and infrastructure plan to JPS. JPS will check the application and approve
the application if all the requirements and guidelines been complied by PSP. After
commencement of work, PSP has to ensure that the construction follow the approval
plans. After completion of construction, JPS will do inspection on site and give
recommendation for final certificate issuance for both delivering system. It is
important to get approval from JPS for the building especially for high risk area like
slopping area. This is to avoid any landslide or building collapse regarding to poor
design of irrigation or drainage at building area.
vii) Department of Safety and Health (DOSH)
Department of Safety and Health (DOSH) is a technical department that check
the requirements of building which have lift comply all the standards given. If the
building did not have lift, recommendation from DOSH is waive. DOSH will check
the submission by PSP and after construction complete, PSP need to apply inspection
33
from DOSH to support the issuance of CCC by providing recommendation letter to
the building after PSP already satisfied that the building comply the requirements.
2.6 Conclusion
Issuing final certificate is very important as evidence that the building is safe
to user. Even CFO and CCC delivering system have different especially in procedure,
basically there is no big different as both need to get recommendation from same
technical department before issuance of final certificate. Technical departments play
important roles in both delivering system to avoid any misconduct or protect from any
incidents. The procedure and liabilities of CFO and CCC system will be discussed
thoroughly in Chapter 3.
CHAPTER 3
PROCEDURES & LIABILITIES
35
CHAPTER 3
PROCEDURE AND LIABILITIES
3.0 Introduction
In chapter 2, general description about Certificate of Fitness for Occupation
(CFO) and Certificate of Completion and Compliance (CCC) has been discussed.
While in this chapter, CFO and CCC will be discussed thoroughly in procedure and
liabilities using comparison study. These two elements are the main study of this
research as from the procedure and liabilities of CFO and CCC we can see the
differences, advantages and disadvantages of these two systems.
Procedure can be defined as an act or a manner of proceeding in any action or
process conduct. It is also a particular course or mode of action.17
From the legal
perspective, procedure means a specific course of action; the machinery by which a
suit is carried on; the mechanics of the legal process; written rules for legal
proceedings, whether criminal or civil, codified in rule books such as the Federal
17
http://dictionary.reference.com/browse/procedure?s=t
36
Rules of Civil Procedure. Civil procedure refers to a procedure to determine the rights
of the parties, as distinguished from a criminal procedure.18
Another part that will be described in this study is liability. Liability means
something for which one is liable; an obligation, responsibility, or debt.19
Liability
under legal dictionary means an obligation of one party to another, usually to
compensate financially. It is a fundamental aspect of tort law, although liability may
also arise from duties entered into by special agreement, as in a contract or in the
carrying out of a fiduciary duty. Liability is not always the result of an intentionally
damaging act or of some proven fault like negligence. The affixing of liability may
once have been simply a peace-preserving alternative to the practice of an injured
party taking vengeance. Further, the law's emphasis has long been that one who is able
to pay (who, in modern terms, has "deep pockets") should pay one who has lost
something through an action of the payer, even if that action was blameless. Vicarious
liability is the duty of a principal.20
This chapter will discuss on elements of procedure and liability. Under
element of procedure, there are several points to be highlighted like the process of
issuing final certificate, qualified person issuing final certificate, timeline, requirement
and documentation. While for element of liability, these factors will be discussed;
negligent, duty of care, civil action, delay, conflict of interest and passed away. All
these points will be discussed thoroughly in the comparison study between CFO and
CCC with relevant cases in Malaysia or other countries which is equivalent as
reference.
18
http://law.yourdictionary.com/procedure 19
http://www.yourdictionary.com/liability 20
http://www.answers.com/topic/liability
37
3.1 Procedure of Certificate of Fitness for Occupation (CFO) and Certificate
of Completion and Compliance (CCC)
There are several points to be discussed under procedure of issuing final
certificate under CFO system and CCC delivering system. The study of procedure of
delivering system either CFO or CCC includes the process of the delivering system,
the qualified person who involved in issuing final certificate, the time taken along the
process, requirements from all technical departments to be fulfilled by professionals
and documents needed before certify the building is safe.
3.1.1 Qualified Person
“…if a man is unqualified but holds himself out to be possessing a skill, he will be
judged by the standards of a reasonably competent qualified person… "21
“Qualified Person” means a Professional Architect, Professional Engineer or
building draughtsman registered under any written law relating to the registration
thereof. “Principal Submitting Person” means a qualified person who submits building
plans to the local authority for approval in accordance with this Act 133 - Street,
Drainage & Building Act, 1974 or any by-laws made thereunder and includes any
other qualified person who takes over the duties and responsibilities of or acts for the
first mentioned qualified person.
21
Jackson & Power on Professional Negligence, 4th edition of Cardy v Taylor (1994) 38 Con.L.R. 79
38
Bingham L.J. in the case of Eckersley v Binnie & Partners (1988) 18 Con. L.R. 1:
"... a professional man should command the corpus of knowledge which forms part of
the professional equipment of the ordinary member of his profession. He should not
lag behind other ordinarily assiduous and intelligent members of his profession in
knowledge of the new advances, discoveries and developments in his field. He should
be alert to the hazards and the risk inherent in any professional task he undertakes to
the extent that other ordinarily competent members of the profession would be alert.
He must bring to any professional task he undertakes no less expertise, skill, and care
than other ordinarily competent members would bring but need bring no more. The
standard is that of the reasonable average. The law does not require of a professional
man that he be a paragon combining the qualities of polymath and prophet."
3.1.2 Documents Needed along the Procedure CFO and CCC
The process of CFO or CCC begins from Building Submission (BP) by PSP.
However, there are requirement of documents need to submit together with each
application to local authority either under CFO or CCC. These documents will be
recorded by Local Authority from the beginning until the end of construction.
Through these documents, the progress, issues and all information of the building can
be tracked. This documentation is very important especially if any incidents or
negligent by Professionals or other parties happened especially after issuance of final
certificate.
39
3.2 Procedure of Certificate of Fitness for Occupation (CFO)
CFO delivering system requires the proper process from submission of plan
until completion of the project and issuing final certificate by Local Authority to
certify that the building is safe to users. Figure 3.1 shows the process from submission
Building Plan (BP) until issuing final certificate under CFO delivering system. When
in submission of the BP, the architect will submit Form A for building submission
while the engineer will submit Form A for infrastructure work together with plan to
Local Authority.
After the proposal has been approved by the Local Authority, then the architect
will issue Form B together with supporting documents as notice of commencement of
work at the site. Then contractor can start the construction work. When the
demarcation of site is done, the professional will submit Form C which is certified by
engineer or surveyor who is supervising the site. After demarcation is done, piling and
substructure work begin. After substructure work is finished, the engineer will submit
Form D to Local Authority. At the same time, construction work run until the
construction is completed.
When the construction is completed, the architect will submit Form E to Local
Authority as a notice that the construction is done and ready to be inspected by any
respective technical department before the building is certified as safe and complete
by Local Authority. If the entire technical departments are satisfied with the building,
they will issue letter of recommendation for CFO of the particular building to Local
Authority. Final inspection will be done by Building Department of Local Authority to
certify the building is completed and comply with all the requirements. After
everything is done, Local Authority will issue Form F which is to certify that the
building is ready to be used and already get the Certificate of Fitness for Occupation
(CFO).
40
Type of Forms Purpose References
Form A
(Declaration of Building
Plan / Structural Plan)
Form A for declaration when
submission of plan by Principal
Submitting Person (PSP)
By-Law 3(1)(c) &
16(2)
UBBL 1984
Form B
(Notice for
Commencement of
Work)
Form B for notice for commencement
of work after Building Plan approved.
By-Law 22(1)
&(2)
UBBL 1984
Form C
(Notice of Demarcation
Finish)
Form C must be submitted after site
demarcation is done. Declaration by
Professional Engineer and Surveyor.
Form C replaced by Form G2 under
CCC system.
Schedule 2
UBBL 2007
Form D
(Notice of Site Ready)
Form D must be submitted after
piling work at site is done. Declared
by Professional Engineer. Form D
replaced by Form G3 under CCC
system.
Schedule 2
UBBL 2007
Form E
(Application for CFO)
Application form submitted by PSP
when the construction work is done
and comply all the requirements by
respective technical departments. All
departments already inspect the
building and issue recommendation
letter to be submitted together with
Form E. Under CCC system, Form E
has been abolished except for CCC
for bungalow.
UBBL 1984
CFO
(Certificate of Fitness
for Occupation)
Local Authority will certify the
building and award CFO as evidence
that the building was comply all the
requirements and safe to user
By-Law 25
UBBL 1984
41
TCF
(Temporary Certificate
of Fitness for
Occupation)
Local Authority will certify the
building and award TCF as evidence
that the building was comply all the
requirements and safe to user but in
conditions. TCF valid for six months.
By-Law 26
UBBL 1984
Submission of Building Plan
(Submit Form A)
Rejected
Commencement of Work
(Submit Form B)
Notice Demarcation on Site
(Submit Form C)
Notice of Site Ready
(Submit Form D)
Pass
Construction Work Finish
(Submit Form E)
Inspections
Building Certified by Local
Authority
(CFO/ TCF)
Known as
CFO
Failed
Building Construction
Figure 3.1: Process of CFO Delivering System
Table 3.1: Forms That Has Been Used Under CFO Delivering System
42
3.2.1 Qualified Person to Issue CFO
Under CFO system, the whole process will be control by respective
professionals. But when the construction comes to an end, professionals will apply for
inspections from relevant technical department before apply for Certificate of Fitness
for Occupation (CFO) from Local Authority. Local Authority is the qualified person
to award the building with CFO after the professionals declare that the building is safe
and fulfilled the requirements. Local Authority then will do inspection and give final
certificate to the building as prove that the building is now can be used.
Forms Qualified Person
Form A
(Declaration of Building Plan / Structural
Plan)
Principal Submitting Person (PSP)
- Professional Architect
- Professional Engineer
Form B
(Notice for Commencement of Work)
Principal Submitting Person (PSP)
- Professional Architect
- Professional Engineer
Form C
(Notice of Demarcation Finish)
Submitting Person (SP)
Registered Land Surveyor
Form D
(Notice of Site Ready)
Principal Submitting Person (PSP)
- Professional Architect
Form E
(Application for CFO)
Principal Submitting Person (PSP)
- Professional Architect
CFO / TCF
(Final Certificate)
Local Authority
Table 3.2: Qualified Person under CFO Delivering System
43
The Uniform Building By-Laws 1984 (UBBL) under the Street, Drainage and
Building Act 1974 (Act 133) restrictively defines a Qualified Person as any architect,
registered building draughtsman or engineer for the purposes of submitting plans.
Hopefully, this definition could be widened to include other competent professionals
such as the interior designer or building surveyor. On the question of the issuance of
the CFO by a Qualified Person, the UBBL clearly expresses this in By-Law 25 (1) as
follows:
‘Certificate of fitness for occupation of a building shall be given when;
a. the Qualified Persons during the course of the work have certified in form E
as set out in the Second Schedule to these By-laws that they have supervised
the erection of the building, that to the best of their knowledge and belief the
building has been constructed in accordance with these By-laws and any
conditions imposed by the local authority and that they accept full
responsibility for those portions which they are respectively concerned
with and the local authority or an officer authorized by it in writing for the
purpose has inspected the building.
b. all essential services, including access roads, landscape, car parks, drains,
sanitary, water and electricity installation …have been provided’.
In By-Law 25 (2), the UBBL states that ‘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
deviation from the approved plan or non-compliance with any of these By-laws which
he may observe and from giving notice in writing ordering such deviation to be
rectified’ (UBBL By-Law 25 (2)).
The LA, subject to the expressed provisions in the UBBL ‘… may in its
discretion grant a partial certificate of fitness for the occupation of any part of a
44
building partially completed… A partial certificate of fitness for occupation once
issued shall remain effective until the whole of the building is completed and a
certificate of fitness for occupation is issued’ (By-Law 27 (1) and (2) of the UBBL).
3.2.2 Time Entailment to Issue CFO
The process of issuing final certificate is not a one day process. It takes time
either under CFO system or CCC system. There is several factors influence the time
entailment for issuing final certificate of the building. Time entailment to issues CFO
or CCC also different as the procedure is slightly different. The process begins with
submission of Building Plan or Structural Plan together with Form A. From
submission stage to get approval also takes time. Then Form B to give notice of
commencement of work submitted. After that, the time entailment depends on
construction until the completion of construction.
Figure 3.2 shows timeline of CFO delivering system procedure from beginning
until completion of the construction and issuance final certificate, CFO by Local
Authority. When PSP do submission of Building Plan (BP) to Local Authority, they
will submit plan together with Form A and other supporting documents. Complete BP
will be distributed to relevant Technical Department (internal and external) to be
checked before approval given. BP will be processed within 30 days. If BP comply all
Plan
Submission
Form A
Work
Commencement
Form B
Construction Progress
Form C & D
CFO
Application
Form E
CFO by Local
Authority
Min 30 days
(Fulfill
requirements)
Min 14 days
(Fulfill
requirements)
Max 14 days
(Final
Inspection)
Inspections
Varies*
Figure 3.2: Timeline for CFO Delivering System
45
the requirements and standard, recommendation letter for approval BP will be issued.
If not, PSP has to amend the plan based on comments by technical department and
resubmit. This procedure will take quite long time because there are several relevant
technical departments have to check and give feedback to each proposal of BP.
After submission of BP get approval from LA, PSP need to submit Form B as
soon as possible to Building Department of LA. After that, the contractor can start
construction work. PSP shall liable on conviction to fine if he/she allow contractor
commence work before get approval of BP or before submit Form B. After
commencement of work, when demarcation on site is done, PSP must proceed to
submit Form C with supporting documents. Then after completion of piling work, PSP
has to submit Form D. Then he/she proceed with construction work until finish. After
commencement of work, timeline for submission and process of BP is depends on
construction works.
When the construction is complete, PSP have to request for inspection from
relevant technical department. Before that PSP has to ensure building under his/her
supervision must comply all requirements to avoid delay or re-inspection which cause
the procedure of CFO slow. After inspection, these technical departments will issues
recommendation letter. Basically time for inspection and issuance of recommendation
letter takes until 14 days.
Then PSP can apply for CFO from LA. PSP need to submit Form E together
with recommendation by relevant technical department. Only complete application
will be processed by LA. Under CFO system, LA must issue CFO within 14 days after
received complete application. LA will go to the site for final inspection and if LA
satisfied with the building, LA will issues CFO. However for housing project, even
LA already issue CFO, Vacant Possession cannot be issued together with CFO. It will
be issued later.
46
3.2.3 Requirement to Be Fulfilled When Issuing CFO
Under CFO system, there are same requirements to be fulfilled by
Professionals before application for final certificate to Local Authority. All respective
technical departments have to inspect the site and issues recommendation letter before
PSP proceed with application of CFO by submitting Form E together with
recommendation letter to Local Authority. All internal and external technical
departments have to inspect the building. Final inspection will be done by Building
Department of Local Authority after receive complete application from PSP.
However, under CFO system, it is necessary to get approval from all internal and
external related technical departments. PSP has to ensure building was comply all the
requirements from technical departments because he/she liable to the building forever.
3.2.4 Documents of CFO Procedure
Under CFO system, there are several documents that need to be submitted
based on the stages of construction. For every stage of construction, there is a need to
submit a different form as notice. Other than that, PSP need to submit supporting
documents together. Table 3.5 shows the documents need to be submitted based on
stages of construction:
47
Stages Forms Supporting Documents
Building Plan
Submission
Form A
Section 3(1)(c)
UBBL 1984
1) Owner’s document
2) Land Assessment, Grant
3) Processing Fees + calculation
(Schedule 2, UBBL 1984)
4) Building Plan (min 14 sets)
5) Pre-comp Plan, Survey Plan
6) Photo of Site
7) Illustration of Proposed Building
Commencement
of Work
Form B
Section 3(1)(c)
UBBL 1984
1) Schedule of Work Progress
Demarcation of
Site
Form C
Schedule 2
UBBL 1984
1) Demarcation Plan (authorized by
Surveyor)
Site Ready Form D
Schedule 2
UBBL 1984
Application for
CFO
Form E
Section 25
UBBL 1984
1) Recommendation letter from all
Technical Department
2) Verification of Assessment
Table 3.3: Documents to Be Submitted under CFO System
48
3.3 Process of Certificate of Completion and Compliance (CCC)
Although the issuance of the CCC occurs towards the end of the building
development process, the steps towards its issuance should be made transparent to all
interested parties. It has been stipulated that the risks are to be distributed among the
players in the development process, instead of resting only on the shoulders of the
PSP. This is made manifest by the issuance of various certificates of warranty by the
players during the stages of development. For instance, the suppliers are expected to
give warranties for the materials and components supplied. It is expected that between
20 and 30 certificates of warranty must be in place before the PSP is ready to issue the
CCC.22
CCC format is slightly different with CFO. Final certificate to certify the
building is safe to users will be issued by Professional who in-charged the project.
Figure 3.2 shows the process from submission Building Plan (BP) until issuing final
certificate under CCC delivering system. The beginning of the process is same with
CFO where architect will submit Form A for building submission while engineer will
submit Form A for infrastructure work together with plan to Local Authority.
After the proposal approved by Local Authority, then architect will issue Form
B together with supporting documents as notice of commencement of work at the site.
Then contractor can start the construction work. Under CCC delivering system, Form
C was omitted, and replace by Form G2. Form D also replaced by Form G3. There are
twenty one Form G (G1-G21) which is certify by respective professionals must be
submitted for all construction in CCC format and it was divided into three stages of
submitting Form G which are substructure, superstructure and services. After the
entire substructure work finish, professionals will submit Form G1-G3 to Local
Authority. At the same time, construction work still running until the construction is
complete. When the construction in second phase which is superstructure complete,
22
The Starspecial, 2007
49
professional has to apply for inspections from respective technical department to give
recommendation for the building before professionals submit second stage of CCC
which is submit Form G4-G12 complete with supporting documents.
Then the construction continues to until finish. After complete, professionals
will apply for the next inspection for recommendation. When the construction is
complete, architect will submit Form G13-G21 to Local Authority. Final inspection
will be done by Building Department of Local Authority to certify the building is
complete and comply all the requirements. After everything is done, Professional will
issue Form F which is certify that the building is ready to use and already get the
Certificate of Completion and Compliance (CCC).
Type of Forms Purpose References
Form A
(Declaration of Building
Plan / Structural Plan)
Form A remains for declaration when
submission of plan by Principal
Submitting Person (PSP)
By-Law 3(1)(c) &
16(2)
UBBL 1984
Form B
(Notice for
Commencement of
Work)
Form B also remains for existing used
- notice for commencement of work
after Building Plan approved.
By-Law 22(1)
&(2)
UBBL 1984
Form G1-G21
(Stage Certification
Forms)
Form G has been introduced in CCC
system which is Stage Certification
process of 21 construction
components. All forms have to be
certified by trade contractors and
Professionals before submit to
Authority together with supporting
document especially recommendation
letter by relevant technical
departments after inspections
By-Law 25 / 27
UBBL 2007
50
Type of Forms Status / Purpose References
Form F
(Certificate of
Completion and
Compliance)
Professionals with full liabilities of
the building will certify the building
and award CCC (Form F) as evidence
that the building was comply all the
requirements and safe to user
By-Law 25
UBBL 2007
Form F1
(Partial Certificate of
Completion and
Compliance)
Professionals with full liabilities will
certify the building (partial) and
award CCC (Form F) as evidence that
the building (partial) was comply all
the requirements and safe to user
By-Law 27
UBBL 2007
Table 3.4: Forms That Has Been Used Under CFO Delivering System
51
Submission of Building Plan
(Submit Form A)
Rejected
Commencement of Work
(Submit Form B)
Substructure Work
(Submit Form G1-G3)
Superstructure Work
(Submit Form G4-G12)
Pass
Building Services Work
(Submit Form G13-G21)
Building Certified by
Professionals
(Form F / F1)
Inspections
Inspections
Failed
Failed
Known as
CCC
Chart 3.3: Process of CCC Delivering System
52
3.3.1 Qualified Person to Issued CCC
Meanwhile, under CCC format, the whole process from beginning until
completion will be controlled by respective professionals. Professionals carry full
responsibilities and liabilities of the building under CCC format. After each
construction components finished, respective contractor and professionals either
architect or engineer have to certified the work as evidence that they liable to their
works. Then after all stages done, Professionals who are the Principal Submitting
Person (PSP) will issue Form F for Certificate of Completion and Compliance (CCC)
or F1 for Partial CCC.
Forms Qualified Person
Form A
(Declaration of Building Plan / Structural
Plan)
Principal Submitting Person (PSP)
- Professional Architect
- Professional Engineer
Form B
(Notice for Commencement of Work)
Principal Submitting Person (PSP)
- Professional Architect
- Professional Engineer
Form G1 – G21
(Stage Certification Forms)
Principal Submitting Person (PSP) /
Submitting Person (SP)
- Professional Architect
- Professional Engineer
- Registered Land Surveyor
- Landscape Architect
- Registered Contractor
Form F / F1
(Final Certificate / Partial Final
Certificate)
Principal Submitting Person (PSP)
- Professional Architect
Table 3.5: Qualified Person under CCC Delivering System
53
The expansion of the scope of self-certification may well be interpreted as the
resolve of the government to replace the CFO issued by the LA with the CCC, in the
hope that the delivery system could be improved, the unnecessary bureaucratic
procedures be reduced and that the alleged rampant acts of gratifications in the LA (as
claimed by some quarter) be stopped. This move can also be viewed as a proactive
step by the government to reform the system of building control by providing
opportunity for self-regulation by the construction industry.23
The full implementation of the CCC means a requiem is being composed
hastily for the now defunct CFO. This implementation will mark the slow death of the
building control function within the LA. As stated before, the move to substitute the
CFO with the CCC via the self-certification doctrine is designed to address the issue
of alleged inefficiency of the LA. It aims to speed up the process of the certification of
completed buildings. The parties in the construction industry, however, should also
bear some of the responsibilities that contribute to the weaknesses of the process. To a
certain extent, the Qualified Person may also be blamed for the incomplete submission
of development plans and documents, noncompliance with the UBBL and other
relevant requirements, and failure to supervise properly, resulting in inferior quality
workmanship (CIDB, 2004).
Under CCC system, Street, Drainage and Building (Amendment) Act 2007
(An Act to amend the Street, Drainage and Building Act 1974), Section 27 states that:
Any person who—
(a) is not the Principal Submitting Person but issues a Certificate of
Completion and Compliance;
shall be liable on conviction to a fine not exceeding two hundred and fifty thousand
ringgit or to imprisonment for a term not exceeding ten years or to both.”.
23
Journal of Building Appraisal (2008) 4, 125–131. By Assoc. Prof. Dr Kamaruddin Mohd Nor
54
3.3.2 Time Entailment to Issues CCC
The process begins with submission of Building Plan (BP) or Structural Plan
(SP) together with Form A. From the submission stage to the getting of approval also
takes time. Form B acts as a notice of commencement of work will be submitted.
After that, the time entailment depends on construction until the completion of
construction.
With reference to Figure 3.4 above, timeline for the procedure of CCC
Delivering system shows the same procedure at the beginning. PSP need to submit BP
to LA together with Form A. However, under CCC delivering system, the government
already introduce “One Stop Centre” (OSC) where all submission has to be done here.
OSC will received all submission and distribute the BP to all relevant technical
departments. OSC will ensure all BP must be checked and commented by relevant
technical departments within 30 days. OSC will held meeting known as OSC Meeting
twice a month where all representatives from technical department comes and give
decision either the plans approved or not. This will help to make PSP job easier as
compared to under CFO format where PSP has to follow up with all technical
department separately.
After submission of BP has got the approval from LA, PSP need to submit
Form B as soon as possible to Building Department of LA. After that, the contractor
can start construction work. PSP shall liable on conviction to fine if he/she allow
Plan
Submission
Form A
Work
Commencement
Form B
Construction Progress +
Stage Certification
Form G1-G21
CCC by PSP
Form F / F1
Min 30 days
(Fulfill
requirements)
Inspections
Varies*
Figure 3.4: Timeline for CCC Delivering System
Min 14 days
(Fulfill
requirements)
55
contractor to commence work before getting the approval of BP or before the
submission of Form B. After that PSP will control the project until completion and
issuance of final certificate. Under CCC format, the Matrix of Responsibility has
already been introduced to ensure all parties liable with all their works even though
PSP is fully liable for the building for its whole life.
When the construction begins, PSP has to prepare Form G1-G21 in which
he/she has to certify all construction components with respect to each Form G. Form
G1- G21 are stage certification where PSP can submit by stage or by complete set at
the end of construction together with final certificate (Form E). Under CCC format,
PSP will find it easier to manage and control the project. When the components of
construction are complete, he/she can call for inspection from relevant technical
departments. After all departments issue recommendation letter, PSP can compile all
the recommendation letters together with Form Gs and will then copy Form F to Local
Authority. This procedure will shorten the process because CCC is issued by PSP who
in-charge of the project from beginning until completion. One of advantages of CCC
system, Vacant Possession can be issued together with final certificate.
3.3.3 Requirement to Be Fulfilled When Issuing CCC
Principal Submitting Person (PSP) must ensure that these certification forms
(Form Gs) are duly filled and certified as they form part of the CCC. It is advisable to
ensure that Construction Industrial Development Board (CIDB) registered contractors
and licensed tradespeople (Electrician and Plumber) who are informed of their
obligations as early as possible from time of tender and award of works, and their
respective certification is obtained immediately upon satisfactory completion of their
scope of works. It is not prudent to leave all such certification to the end of the project
or just when PSP are about ready to issue the CCC.
56
The project works need to be completed in accordance to 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 duly filled and certified,
clearances and or confirmation of supply/connection to six essential services
departments – Tenaga Nasional Berhad (confirmation of electrical supply), water
authorities (confirmation of water supply), Indah Water Konsortium (confirmation of
connection to sewerage treatment plant or mains), Department of Safety and Health
(clearance from lifts and machinery department – if applicable), Jabatan Bomba dan
Penyelamat Malaysia (clearances for active fire fighting systems except for residential
buildings not more than 18m high) and Roads & Drainage Department. Under CCC
format, internal technical department are not necessary to give recommendation letter
for final certificate issuance except from Engineering Department. With these the PSP
can issue the CCC .
3.3.4 Documents of CCC Procedure
Under CCC system, there are several documents need to be submitted based on
stages of construction. Every stages of construction need to submit different form as
notice. Other than that, PSP need to submit supporting documents together with the
forms. Table 3.6 shows the documents needed to submited based on stages of
construction:
57
Submission Forms Supporting Documents
Building Plan
Submission
Form A
Section 3(1)(c)
UBBL 1984
1) Owner’s document
2) Land Assessment, Grant
3) Processing Fees + calculation
(Schedule 2, UBBL 1984)
4) Building Plan (min 14 sets)
5) Pre-comp Plan, Survey Plan
6) Photo of Site
7) Illustration of Proposed Building
Commencement
of Work
Form B
Section 3(1)(c)
UBBL 1984
1) Schedule of Work Progress
Stage
Certification
Form G1 - G21
Section 25 / 27
UBBL 1984
1) Recommendation letter from
Technical Department
2) Demarcation Plan (G2)
3) Contactor / Contractor Trade
Document (Form 49 and CIDB)
Final Certificate Form F 1) Form G1-G21
2) Verification of Assessment
Table 3.6: Documents to Be Submitted under CCC System
58
3.4 Conclusion of Procedure of CFO and CCC
Comparison of procedure between CFO and CCC delivering system can be
summarized as shown in Table 3.7 below;
ISSUES Certificate of Fitness for
Occupation (CFO)
Certificate of Completion
and Compliance (CCC)
Process
- LA involvement almost at
all stages of construction
- VP not issues together
with CFO
- CFO and Temporary CFO
- LA involvement almost at
all stages of construction
- VP issues together with
CCC (Form F)
- CCC and Partial CCC
Qualified Person
- LA issues final certificate
- PSP full responsibility
- PSP issues final certificate
- Matrix Responsibility
Time Entailment
- Time spend for issuance of
final certificate by LA
- Save time to issue final
certificate
(self-certification)
Requirements
- Recommendation letter
from relevant technical
department
- Recommendation letter
from relevant technical
department
Documentation
- Form A, B, C, D, E
- Supporting documents
- Form A, B, G1-G21, F
- Supporting documents
Table 3.7: Summary of Comparison in term of Procedure between CFO and CCC
59
3.5 Roles and Liabilities of Person In-charged under Certificate of Fitness for
Occupation (CFO) and Certificate of Completion and Compliance (CCC)
This study also highlighted the roles and liabilities of person in-charged in
issuing final certificate under CFO and CCC delivering system. The study on
liabilities of delivering system either CFO or CCC includes the roles and liabilities of
Local Authority and professionals, negligent by professionals, duty of care, conflict of
interest, civil action taken, delay issue and solution if any of the involved
professionals passed away.
3.5.1 Roles and Liabilities of Local Authority and Professional under CFO
system
Issuance of the CFO by a Qualified Person, the UBBL clearly expresses this
in By-Law 25 (1) as follows:
‘Certificate of Fitness for Occupation’ of a building shall be given when:
a. The Qualified Persons during the course of the work have certified in form E
as set out in the Second Schedule to these By-laws that they have supervised
the erection of the building, that to the best of their knowledge and belief the
building has been constructed in accordance with these By-laws and any
conditions imposed by the local authority and that they accept full
responsibility for those portions which they are respectively concerned
with and the local authority or an officer authorized by it in writing for the
purpose has inspected the building.
b. All essential services, including access roads, landscape, car parks, drains,
sanitary, water and electricity installation …have been provided’.
60
Under By-Law 25 (2), the UBBL states that ‘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 deviation from the approved plan or non-compliance with any of these By-laws
which he may observe and from giving notice in writing ordering such deviation to be
rectified’ (UBBL By-Law 25 (2)).
The Local Authority (LA), subject to the expressed provisions in the UBBL
‘… may in its discretion grant a Partial Certificate of Fitness for Occupation of any
part of a building partially completed… A Partial Certificate of Fitness for Occupation
once issued shall remain effective until the whole of the building is completed and a
Certificate of Fitness for Occupation is issued’ (By-Law 27 (1) and (2) of the UBBL).
LA shall approve issuance of CFO after all requirements and conditions have been
fulfilled by Professionals. This is to ensure that the building is safe to users.
Amendment of UBBL 1984 has been done in 1999 which stated that;
a. For the construction of bungalow, there is no need to apply for CFO by
authority, but architect or building draughtman has to issue Certificate of
Completion and Compliance.
b. For other building, CFO is assumed has been issued even though LA does not
issue CFO within 14 days period from the date of complete CFO application
(form E) is received.
Under the CFO system, the PSP is fully liable and responsible for the entire
project even though the LA has approved it and issue the CFO for the building. If
there is any incidents happen, for example the structural failure such as cracks at
column, beams, floor or building deposit, the liability is on the consultant engineer for
the whole life of the building. If this happened, the buyer or the building user has to
submit a report to LA together with the detail information and pictures as evidence for
investigation to be conducted by LA. Under UBBL 1984, By-Law 258 is states that,
61
LA can ask the consultant engineer to make a report to explain the causes of structural
failure within the time period set by LA. If the engineer failed to do so, or did not give
cooperation to the investigation, LA or building owner can make a report to
Institutional of Engineers Malaysia (IEM) for further action.
3.5.2 Roles and Liabilities of Local Authority and Professional under CCC
system
With the enforcement of the CCC, Professional Architects and Professional
Engineers - and staff under them such as graduate architects, engineers and clerks-of-
works - and, Specialist Sub-Contractors and Main Contractors are now legally
responsible and liable under the latest laws to confirm the due completion and
compliance of the building construction to the relevant building laws.
Professionals’ or Principal Submitting Person (PSP) tasks are to prepare and
present planning and building plans to Local Authority (LA) for approval, informing
LA of the commencement of construction works on site, supervising construction
works at the site and ensuring that the laws and technical conditions of the LA are
followed. Reporting building breaches, explaining reasons of breach and performing
recovery actions in the event of breach during construction, presenting work-
resumption notice to the LA, Ensuring Form Gs are completed. Upon satisfactory
completion of the works and obtaining clearances or confirmation from the six
essential services departments, the CCC can be issued to owners and developers as
well as presenting a copy to the LA and the Professional Board.
PSP must ensure that these certification forms (Form Gs) are duly filled and
certified as they form part of CCC. It is important for PSP to ensure that CIDB
62
registered contractors and licensed trades people (Electrician and Plumber) are
informed of their obligations as early as possible from time of tender and award of
works, and their respective certification is obtained immediately upon satisfactory
completion of their scope of works.
During the construction phase, the PSP's role should not be restricted to
supervising the works only as required in Clause 25 (a). The PSP (especially the one
playing the role of lead consultant) must be actively engaged in all aspects of building
control. That means that the PSP should also be a qualified inspector — continually
inspecting the works and issuing certificates at each stage of completion. Again,
during the construction phase, the PSP should collate certification and warranties by
all parties (main contractor, sub-contractors, specialist contractors, manufacturers,
suppliers and supporting consultants as well involved in the production process.
Towards the completion stage, the PSP is expected to coordinate the clearance from
various agencies such as JBPM (the Fire Services Department), TNB (the National
Energy Company), Telekom (the National Telecommunication Company) and the
waterworks authority. Professional is also responsible for arranging for the amenities
to be tested and commissioned, and for ensuring that health, safety and environmental
requirements are complied with. Only then can the PSP issue the CCC.
There is no change to the responsibility or liability on the PSP as under the
CFO system the PSP was already fully liable and responsible for the entire project
even though the LA approved it and issues the CFO for it. There could be an increase
in the tasks involved such as the need to compile the 21 certifications 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 contractors will now be called upon
to take responsibility for their portions of the works. There is however possible time
saved from previously having to attend to the submitting of the Form E and applying
for the CFO.
63
The LA will receive process and approve planning permission and building
plans. They can also authorize site inspections on own initiative or acting on
complaints to check the works in progress, issue a notice if there is a breach or
divergence and failure to rectify it, issue a notice in writing to the PSP not to issue the
CCC if breaches and divergence are not rectified, taking 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 form of as-built
drawings.
3.5.3 Negligent under CFO and CCC system
There is no different of negligent issue either under CCC or CFO. Both
delivering system highlighted on negligent issues to ensure that professionals will not
misconduct their roles. There are three elements of negligent;
1. When Defendants owed Plaintiffs a duty of care
2. Defendants breached duty of care
3. Plaintiffs suffered damages resulting from the breaches.
The liability of negligence as defined by Lord Atkin in case of Donoughue v
Stevenson (1932) A.C. 562 is: that every man must take reasonable care to avoid acts
or omissions which he can reasonably foresee would be likely to injure his neighbor,
i.e. those persons who are so closely and directly affected by his act that he ought
reasonably to have them in contemplation as being so affected when he is directing his
mind to the acts or omissions which are called to question, and this results in damage
to the neighbour.
64
Winfield & Jolowiez (The Law of Torts, 13th
Ed) p 72 defines negligent as:-
‘… a breach of a legal duty to take care which results in damage, undesired by
the Defendant to the Plaintiff’.
As professional, his/her duty is primarily to his/her client because of because
he/she has a contractual relationship with them. But in law, professionals are also
liable to anyone who is sufficiently proximate and who suffers loss or damage by
reason of his negligence. To avoid negligence from professionals, the government sees
it fit for professionals to undertake the CCC system because there is a check-and-
balance being introduced in the system in the form of “Matrix of Responsibility”. A
total of 21 Certification Forms will be endorsed along the entire constructional
process. These forms are gazetted as Schedules [Form G1 – G21] under the revised
Uniform Building By-Laws, 1984 – Amendment 2007.
The relevant sub-contractors and/or licensed trade contractors and the PSP
shall certify each of the 21 Form Gs that each stage of the works has been completed
in accordance with the Approved Building Plans. Thus, the Matrix of Responsibility
with the implementation of the 21 Forms Gs will make everyone accountable for their
respective scope of work.
For the implementation of CCC, six (6) Acts were amended. There were the
following:24
1. Act 117 – Architects Act, 1967 / Act A1287 Amendments 2007
Amendments: Increased penalty for wrongful certification & express
provisions on fraudulent certification
2. Act 118 – Housing Development (Control and Licensing) Act, 1966 / Act
A1289 Amendment 2007
24
www.pam.org.my
65
Amendments: Redefinition to suit CCC & Vacant Possession (VP) issued
together with CCC
3. Act 133 - Street, Drainage & Building Act, 1974 / Act A1286 Amendment 2007
Amendments: Provisions for implementation of CCC, definition of Principal
Submitting Person & increased penalty for wrongful certification
4. Act 133 – Section 133 - Uniform Building By-Laws, 1984 / Amendments 2007
Amendments: Provisions for implementation of CCC & introduction of Form
Gs (Matrix of Responsibility)
5. Act 138 – Registration of Engineers Act, 1976 / Act A1288 Amendments 2007
Amendments: Increased penalty for wrongful certification & express
provisions on fraudulent certification
6. Act 318 – Strata Titles Act, 1985 / Act A1290 Amendments 2007
Amendments: Redefinition to suit CCC
Nonetheless, the Local Authorities are empowered to stop the issuance of the
CCC in the event of non-compliance with the conditions of the building plans
approval and/or the relevant Acts. These acts being amended to prevent any
negligence by professionals or local authority happen in construction projects.
3.5.4 Duty of Care under CFO and CCC system
Lord Atkin in case Donoghue v Stevenson stated the legal basis of duty of
care;
66
‘The rule that you are to love your neighbour becomes in law, you must not
your neighbour, and the lawyer’s question, who is my neighbour? Receives a
restricted reply. You must take care reasonable care to avoid acts or omissions which
can be reasonable foreseen would be likely to injure your neighbour. Who then in law
is my neighbour? The answer seems to be, persons who are so closely and directly
affected by my act that I ought reasonably to have them in contemplation as being so
affected when I am directing my mind to the acts or omissions which are called in
question.’
CFO delivering system clearly shows that PSP and LA both has duty of care
because PSP liable to the building. PSP has to ensure the building fulfilled all the
standard and requirements by technical department. PSP is also responsible to ensure
the safety and comforts of the buildings are in good condition to building users. The
LA also has to ensure that the building is safe to users. That is why the duty of LA is
issuing final certificate in order to avoid any conspiracy between the developer and the
PSP.
Under CCC delivering system, LA still have the duty of care under common
law to ensure that the building is safe and would comply with all requirements. LA
still carry the roles and responsibilities in the issuance of CCC. According to
subsection 70(23) and (24) of Act 133, where ss.70(23), The LA has the authority to
issue written notice to PSP and SP to amend any insubordination. The LA also has the
authority to hold CCC issuance by PSP if they ignore to amend any insubordination.
Under ss.70(24), LA can give any instruction with the purpose to implement the
insubordination. Other than that, the LA also has the authority under Section 85, Act
133 to give instruction to the owner to inspect the building periodically after ten years
from the date of the CCC issuance.
67
3.5.5 Conflict of Interest under CFO and CCC system
Under CCC system, only Qualified Person who is an expert in construction
industry is qualified to certify the safety and comfort of the building when the CCC is
granted. In this situation, PSP is the most familiar person and understand very well
about the project because of his/her expertise from the planning stage, construction
until completion of project.
To handle any conspiracy issues between developer and PSP or other related
parties of construction, new provision has been introduced regarding conflict of
interest which cause fraud or misrepresentation. If this happened, both shall be liable
on conviction to a fine not exceeding two hundred and fifty thousand ringgit or to
imprisonment for a term not exceeding ten years or to both.25
From CFO system, there are amended of act to implement CCC system.
Amended of act is increase of penalties for contravening the Act. There are
amendments of principal Section 70, Act 133 - Street, Drainage & Building Act, 1974 as
follow:
(f) in subsection (11), by substituting for the words “one thousand” the words
“twenty-five thousand”
(g) in subsection (12) -
(i) by substituting for the words “one thousand” the words “twenty-five
thousand”
(ii) by substituting for the words “one hundred” the words “five hundred”
25
Section 27, Act 133 - Street, Drainage & Building Act, 1974
68
(h) in subsection (13) -
(i) by substituting for the words “ten thousand ringgit” the words “fifty
thousand ringgit or to imprisonment for a term not exceeding three
years or to both”
(ii) by substituting for the words “two hundred and fifty” the words “one
thousand”
3.5.6 Civil Action under CFO and CCC system
Under CFO system, even the final certificate had to be issued by the Local
Authority, PSP is fully liable to the building from inception until completion and all
the life of the building. However if any incident happen, a Plaintiff can take civil
action on the PSP and the LA because the final certificate is issued by the LA.
Referral can be made to Highland Tower collapsed case in Ulu Kelang, Selangor.
Plaintiffs can take any civil action either on the PSP or LA. Even though under
law, there is immunity to LA through Section 95(2) Act 133, Street, Drainage &
Building Act 1974, a court judgment already approved that under common law, LA is
liable to duty of care to third party. So if any incident happened under CCC delivering
system, the Plaintiff can take civil action on the LA.
69
3.5.7 Delay under CFO and CCC system
The process to certify all construction components are done gradually
according to the completion of construction stage at site. To certify the completion of
work, trades person have to certify their works and the Professionals have certify that
the work’s done by contractor under his/her supervision by filling Form G. This shows
that, the time spend for CCC issuance is more under control because it is self-
certification by Professionals who are in-charge of the projects. It does not waived
Local Authority’s roles, but under CCC system, LA roles are minimal. However check
and balance control from LA are still remained to ensure safety control of new
building is not affected under the new delivering system.
Under CCC system, Principal Submitting Person (PSP) can issue CCC
anytime after he/she is satisfied with the construction works. PSP has to ensure that
the construction has complied with all the requirements and the standard set by the
relevant technical departments. Under CFO system, after PSP is satisfied with the
construction work, he/she must apply for inspection from the Local Authority for the
inspection at site before the issue of CFO. This procedure will take time and
contribute delay in final certificate issuance. Vacant Possession (VP) also cannot be
given together with CFO in that particular time. Nonetheless under CCC, VP can be
granted together with Form F.
3.5.8 Deaths of Principal Submitting Person (PSP) under CFO and CCC system
Under CFO system, the liabilities for building either under construction or
after completion clearly is stated under Section 71, Act 133 - Street, Drainage &
Building Act, 1974 lies under Principal Submitting Person (PSP). And now, under
CCC system, the liabilities remained under PSP.
70
Other than the existing liabilities, to ensure that the liabilities are continuously
under all related parties, a new concept has been introduced under CCC system which
is a process to improve the control on related parties to the construction. There is
Matrix of Responsibility process whereby the responsibilities for every construction
component are under professionals, contractor or trade persons. It means, even though
PSP is liable to the whole construction, other parties also have responsibility based on
the entire works. For example liabilities on structural works will be carried out by
professional engineer and contractor who did the works. PSP only issues CCC after all
components of construction complete and comply all the requirements and have been
certified by the person in-charged.
In this situation, if Professional Architect plays role as PSP passed away or lost
after issuance of CCC, liabilities of Structural engineer still remain for the building
structure. Check and Balance process can minimize the risk or implication if PSP
passed away or lost after the issuance of CCC.
3.7 Conclusion of Liabilities for CFO and CCC
Comparison of liabilities of Principal Submitting Person (PSP) and Local
Authority (LA) under CFO and CCC delivering system can be summarize as shown in
Table 3.8 below;
ISSUES Certificate of Fitness for
Occupation (CFO)
Certificate of Completion
and Compliance (CCC)
Roles and
Liabilities
- PSP is fully responsible to
the building
- LA liable to ensure the
building is safe to user
- Matrix of Responsibility
- PSP and contractors are
liable for their work
- LA report to professional
71
before the issuance of
CFO
body if any misconduct
by PSP
- LA must ensure that for
building > 5 storeys,
more than 10years have
been inspected
Negligent
- breach of duty
- misconduct
- nuisance
- breach of duty
- misconduct
- nuisance
Duty of Care
- PSP must ensure the
building comply all
requirements by technical
department
- LA ensures the building
safe to user.
- LA issues CFO
- PSP, SP and contractor are
liable to the works done
by them
- LA must ensure the
buildings are safe to user.
- LA must give notice to
PSP for any
insubordination.
Conflict of Interest
- Unfamiliar or inexpert
person to certify the
building
- Conspiracy between PSP
and developer
- Only expert are allowed to
certify the building
Civil Action
- LA and PSP under
Common Law
- LA and PSP under
Common Law
Delay
- Issuance of CFO by LA
takes time
- Issuance of CCC more
guaranteed
Death of PSP - - Matrix Responsibility
Table 3.8: Summary of Comparison in term of Professional Liabilities between
CFO and CCC
CHAPTER 4
ANALYSIS & FINDINGS
73
CHAPTER 4
ANALYSIS AND FINDINGS
4.1 Introduction
In Chapter 1, research methodology for this study includes primary sources
and secondary sources. For primary sources, interviews conducted on and
questionnaire have been sent to a number of parties who are involved directly or
indirectly with the study. For secondary sources, research has been done using
journals, books, websites, and project cases analysis as references for the research.
The comparison study on the issuance of final certificate under Certificate of
Fitness for Occupation (CFO) and Certificate of Completion and Compliance (CCC)
system was not only by analysis of project cases, but also included the data from
questionnaires sent to several numbers of professional architects and engineers who
are practicing in the construction industry to seek on their opinions and experiences
regarding issuing final certificate under CFO and CCC systems.
The questionnaires comprised all issues discussed related to procedures and
liabilities in the two different delivering systems, CFO and CCC. Feedback from
74
questionnaire have been analyzed and discussed in the forms in chart. From the
analysis of cases and feedback collection from the questionnaire, the main objectives
to compare between CFO and CCC have been achieved. Analysis of cases were the
point of references for the objectives in investigating the differences in delivering
systems. The data collections from the questionnaire on the other hand show the
responses and feedbacks from professionals who have been involved in these two
different systems.
4.2 Analysis of Questionnaire
Distribution of questionnaires has been done to a limited number of
respondents. The questionnaire covers two major aspects which are procedures and
liabilities and also requested the respondents to give their opinions in some major
issues in the delivering system and which system they preferred most. The study
focused on comparison of the delivering system between CFO and CCC in Malaysia.
Questionnaires have been analyzed using qualitative methods and the data are
discussed based on major aspects.
4.2.1 Respondent’s Background
The main method of the study is data collection through questionnaire. There
are ten (10) respondents from different construction background who have been
involved in this descriptive study. Respondents selected were Malaysian with working
experiences in construction industry like architects, engineers and local authority’s
officers who are familiar with CFO and CCC delivering system. The questionnaire
includes questions on the experience, understanding and opinion from the respondents
75
about CFO and CCC system. Architects and Engineers were chosen as respondents
because they play the main roles as Principal Submitting Person (PSP) in the
construction project. Local Authority Officers were chosen because they are also one
of main person involved in construction project. They have their own roles and
liabilities in the project. Respondents also have minimum two years experience in
construction field because within two years, they will gain complete experience in
handling project.
Each respondent would state two projects they have handled which include one
project under CFO system and another project under CCC system as case study. Ten
projects under CFO system and ten projects under CCC system which the respondents
have been involved in become case study for this research. The following Table 4.2
shows the list of projects which have been handled by respondents as references for
this study.
Respondent Profession Sector Experience Project Involved
CFO CCC
A Architect Private 3 years < 5 < 5
B Architect Private 5 years < 5 5 – 10
C Architect Private 3 years < 5 11 - 20
D Architect Private 6 years 11 - 20 > 20
E Engineer Private 10 years > 20 > 20
F Engineer Private 4 years 5 - 10 > 20
G Local Authority Government 3 years < 5 > 20
H Local Authority Government 2 years < 5 > 20
I Local Authority Government 20 years > 20 11 - 20
J Local Authority Government 4 years 5 – 10 > 20
Table 4.1: Background of the Respondents
76
Respondent
Project (Case Study)
Project 1 (CFO) Project 2 (CCC)
A Cadangan Pemulihan Taman
Tangkak Emas oleh Syarikat
Perumahan Negara Berhad, Johor
Cadangan Membina dan
Menyiapkan Sebuah Jeti Nelayan,
4 Unit Kedai Makan Setingkat dan
Kerja-Kerja Berkaitan Di Muara
Sungai Sempang, Jasin, Melaka
B Cadangan Membina Bangunan
Akademik Kampus Universiti
Teknologi Mara (UiTM) Segamat
Cadangan Membina 106 Unit
Rumah Teres 2 Tingkat di Bandar
Tiram 1, Johor
C Cadangan Membina Sebuah
Bangunan Restoran Makanan
Segera Mc Donald di Bandar Seti
Alam, Johor Bahru
Cadangan Membina Sebuah
Bangunan Pasaraya @Mart, Jalan
Belalang, Taman Dahlia, Kempas,
Johor Bahru
D Cadangan Membina 150 unit
Rumah Teres 2 Tingkat, Fasa 3B1,
Taman Sri Austin, Johor Bahru
Untuk Tetuan Dynasty View Sdn
Bhd
Cadangan Membina 24 unit Kilang
Semi-D dan 8 unit Kilang Sesebuah
di Laman Setia, Setia Eco Garden,
Johor Bahru untuk Tetuan Kesas
Kenangan Sdn Bhd
E Cadangan Membina Sebuah
Bangunan Restoran Makanan
Segera Mc Donald Jalan Sutera,
Johor Bahru
Cadangan Membina Sebuah
Bangunan Restoran Makanan
Segera Mc Donald Taman Bukit
Indah, Johor Bahru
F Cadangan Membina Unit Kedai
Pejabat 3 Tingkat di Bandar Kota
Tinggi, Johor
Cadangan Membina Sebuah
Bangunan Masjid di Taman Bukit
Mewah, Johor Bahru
G Cadangan Pembangunan (Fasa 8)
yang Mengandungi 377 Unit
Rumah Teres 2 Tingkat dan 6 Unit
Rumah Berkembar 2 Tingkat
Cadangan Pembangunan 136 Unit
Kedai Pejabat yang Mengandungi 1
Unit Pencawang Elektrik Di Atas
Sebahagian Lot Di Bandar Botanik,
Mukim Klang, Klang, Selangor
77
4.2.2 Analysis of Comparison Study Between CFO and CCC Procedure
There are differences in terms of procedure between CFO system and CCC
system. The questionnaires results show the comparison between these two systems.
The characteristics in procedural aspects includes the process of the project from
commencement of work until the completion and issuance of final certificate,
technical requirements to be fulfilled, documents and forms to be submitted, and time
taken for each project.
H Cadangan Membina 3 Unit Kedai 4
Tingkat di atas Lot 2876, Mukim
Sura, Dungun, Terengganu
Cadangan Membina Bangunan
Restoran Mc Donald 2 Tingkat di
Majlis Perbandaran Dungun,
Terengganu
I Cadangan Membina dan
Menyiapkan Bangunan Ibu Pejabat
Lembaga Perindustrian Nenas
Malaysia di Bandar Baru UDA,
Johor Bahru
Cadangan Membina dan
Menyiapkan Bangunan Dewan
Serbaguna, Lembaga Perindustrian
Nenas Malaysia di Bandar Baru
UDA, Johor Bahru
J Cadangan Membina dan
Menyiapkan Unit Rumah Teres dan
Berkembar di Bukit Jelutong, Shah
Alam
Cadangan Membina Bangunan
Dewan Serbaguna di Kolej 1,
Universiti Teknologi Mara (UiTM)
Shah Alam, Selangor
Table 4.2: References Projects by Respondents
78
ISSUES CFO CCC
The process (stage by
stage) of the project
from the
commencement
(Form A) until
completion (Final
Certificate)
Form A – accept, check and
process application by open
file, give instruction for site
visit & report using the
specific building checklist.
Make sure all fees
(assessment, advance
payment & processing fees)
have been paid.
- If completed – will be
recommend to approve in
technical meeting & LA
will issue letter with a
stamp stated approved
signed by Yang Di
Pertua. Consultant need
to get back the plan as
soon the approval done.
- If not completed – will
issue the letter of
conditional approval &
will be recorded, the
completion of plan
approval must be made
within 14 days.
After the approval, the site
visit will be made in 2
months times together with
the Form B submission by
the consultant.(form B must
be submitted before the
Application after 2007 must
be certified by consultant
(CCC)
Form A – same procedure as
CFO
Form B – notice to begin the
project(LA will do the 1st
visit to the site before
approve the notice)
Form G1-G21
The notice for stages done in
construction
G1 – Earthwork
G2 – Setting out
G3 – Foundation
G4 – Structure
G5 – Internal Water
Plumbing
G6 – Internal Sanitary
Plumbing
G7 – Internal Electrical
G8 – Passive Fire
G9 – Active Fire
G10 – Mechanical
Ventilation
G11 – Lifts / Escalators
G12 – Building
G13 – External Water
Supply
G14 – Sewerage
79
project begins)
Submit Form C – notice to
start construction of of the
building (notis siap pancang
tanda)
Submit Form D – notice of
site completion
Form E – application for
CFO and site inspection by
the Local Authority
CFO was issued by Local
Authority
Reticulation
G15 – Sewerage Treatment
Plant
G16 – External Electrical
Supply
G17 – Road and Drainage
G18 – Street Lighting
G19 – Main External Drain
G20 – Telecommunication
G21 – Landscape
- The site visit will be
done in every 2 months
times.
Form F/F1 – completion of
CCC.
CCC was issued by PSP
and will certify by the LA
within 14 days from the
application of Form F and all
G’s form.
The requirements
(technical aspect) to
be fulfilled?
- Uniform Building By-
Law 1984
- Street, Drainage &
Building Act 1974
(Act 133)
- Akta Perancangan
Bandar dan Desa 1976
(Akta 172)
- Akta Kerajaan Tempatan
1976 (Akta 171)
- Uniform Building By-
Law 1984
- Street, Drainage &
Building Act 1974
(Act 133)
- Akta Perancangan
Bandar dan Desa 1976
(Akta 172)
- Akta Kerajaan Tempatan
1976 (Akta 171)
80
The documents and
forms need to be
submitted in every
stage of submission
Plan Submission :
Form A, Complete set of
Development Plan, Building
Plan, Earthwork Plan,
supporting documents
Work Commencement :
Form B and Work Progress
Schedule
Construction Progress :
Form C and Form D
Inspections:
Letter of application,
relevant supporting
documents
Final Certificate:
Form E
Plan Submission :
Form A, Complete set of
Development Plan, Building
Plan, Earthwork Plan,
supporting documents
Work Commencement :
Form B and Work Progress
Schedule
Construction Progress :
Form Gs
Inspections:
Form Gs and relevant
supporting documents
Final Certificate:
Form F / F1
4.2.3 Analysis of Comparison on Duration of Time for CFO and CCC
Table 4.4 and 4.5 shows the findings on project case study under CFO and
CCC delivering system. The data were collected and analyzed from the
questionnaires. Both systems has been compared on how long the time (days) was
taken in every stage from the beginning of process which is submission of plan until
completion with issuance of final certificate. Stage 1 is the submission stage where the
time counted from date of plan submission until approval of plan by Local Authority.
Stage 2 is the duration after commencement of work until inspections. Time is
counted based on the total day of application for inspections. Day of construction time
are uncounted because it is depends on the project scale. Stage 3 is the total day taken
Table 4.3: Comparison of Findings between CFO and CCC in Procedures Aspect
81
for inspections from all departments. Stage 4 is the final stage where the time taken
after inspection until issuance of final certificate.
Project
Duration of Time (days) Total
(Days) Stage 1 Stage 2 Stage 3 Stage 4
1 A 100 7 7 21 135
1 B 100 30 14 30 174
1 C 90 20 7 30 147
1 D 90 30 14 30 164
1 E 90 20 7 30 147
1 F 100 14 7 14 135
1 G 90 7 7 14 118
1 H 90 14 7 14 125
1 I 100 14 10 14 138
1 J 100 17 10 14 141
Project
Duration of Time (days) Total
(Days) Stage 1 Stage 2 Stage 3 Stage 4
2 A 90 7 7 14 118
2 B 100 30 7 7 144
2 C 90 25 7 7 129
2 D 100 15 7 7 129
2 E 100 14 7 7 128
2 F 90 14 7 7 121
2 G 90 7 7 14 118
2 H 90 7 7 7 111
2 I 90 10 7 7 114
2 J 100 10 7 14 131
Table 4.4: Duration of time for CFO Project Case Study
Table 4.5: Duration of time for CCC Project Case Study
82
From the analysis on projects that have been handling by the respondents, it
shows that the duration of time taken from submission of plan until approval is almost
the same either under CFO system or CCC system. Both system shows that duration
of time at this stage is between 90 days to 110 days. The process at this stage takes
longer time than other stage because approval of plan needs recommendation from all
related technical departments.
For stage 2, time taken to complete this stage for project under CFO system is
longer than CCC system. Under CFO system average time taken for application of
inspection from all technical departments is between 15 to 20 days. While under CCC
format, the duration is slightly shorter than CFO where only within 10 to 15 days.
Some of the projects take longer time due to several reasons that cannot be avoided
like festive season
After application of inspection, stage 3 is duration of inspection. Project under
CFO system take longer time than CCC because under CFO system, all departments
need to give approval and recommendation to the project. While under CCC, only
recommendation from external technical departments and Road and Drainage
Department is required. Other recommendation is not compulsory. Duration of time
during inspection for CFO is within 10 days, while under CCC system is 7 days.
For the final stage which is the issuance of final certificate, a project under the
CCC system takes shorter time than CFO system because final certificate was issued
by PSP. After inspection done by all relevant technical departments, PSP can issue
final certificate. But under CFO system, final certificate was issued by LA, so the time
taken is longer due to several numbers of projects under LA. Duration of time taken
for final stage under CCC system is about 7 days while under CFO is 14 days.
Overall, duration time taken for CFO system is longer than CCC system.
83
4.2.4 Analysis of Comparison Study on Liabilities Between CFO and CCC
There are also differences under liabilities aspects between CFO system and
CCC system. The questionnaires results show the comparison between these two
systems. The characteristics in liabilities aspect include the professional liability,
conflict of interest, duty of care, procedure of termination and delay. These aspects
were analyzed based on respondents’ experiences and opinions.
Chart 4.1 shows the feedback from respondents on professional liabilities
under CFO and CCC system. From the ten respondents, eight of them agree that CFO
system limits the liabilities of Principal Submitting Person (PSP) and gives big
responsibilities to LA. However, the PSP is still liable to the projects eventhough final
certificate is being issued by LA. From the respondents’ answers, the professional
liabilities under CFO and CCC system are the same. There are advantages under CFO
system where LA will protect the public rights. But the disadvantage is the work
progress of the project is slow.
0
1
2
3
4
5
6
7
8
9
Limit the Liabilities Extend the Liabilities Same
CFO
CCC
Chart 4.1: Professional Liabilities under CFO and CCC System
84
Meanwhile, six of the respondents said that CCC system extend the
professional liabilities of consultant but reduce the responsibilities of LA. Under CCC
system, PSP is the person who is in-charge of the project from beginning until
completion and also the person who issues final certificate and take full responsible of
the project. From the questionnaires, the respondents mentioned that the advantage of
CCC system is the speed of work progress on construction and development is faster
than CFO. But the disadvantage is it is risky to the public.
4.2.5 Conflict of Interest Between Parties Involved under CFO and CCC
During the process of delivering system either in CFO or CCC, conflict of
interest arising between parties involved is a normal situation. The conflict may
happen between Principal Submitting Person, Local Authority, client or contractor.
Chart 4.2 show the percentage of respondent who have been involved in conflict when
handling project. While table 4.6 and 4.7 shows the results of who have been involved
in conflict when they were in-charge of the project and how they handled the situation.
0
1
2
3
4
5
6
7
8
CFO CCC
Yes
No
Chart 4.2: Percentage of Conflict Happened Between Parties under
CFO and CCC
85
Conflict
Parties
Local
Authority
Technical
Department Consultant
Local
Authority - 0 2
Technical
Department 0 - 2
Consultant 2 2 -
From the survey, the conflicts basically happen between consultant or PSP
with Local Authority and other technical departments. There is no conflict that
happened between LA and other external technical departments. The conflicts arise
because the project did not fulfill the requirements and standard guideline by LA or
technical departments. Most of the conflict happened either under CFO or CCC
between PSP and Local Authority.
Basically, PSP has to handle this situation by revising their work, do site
inspections and any other action in order to fulfill the requirements. It is PSP’s duty to
ensure everything in the project runs smoothly and has no conflict of interest between
parties. It is important to avoid delay or extension of time in the project.
Conflict
Parties
Local
Authority
Technical
Department Consultant
Local
Authority - 0 4
Technical
Department 0 - 3
Consultant 4 3 -
Table 4.6: Parties Involved in Conflict under CFO System
Table 4.7: Parties Involved in Conflict under CCC System
86
4.2.6 Duty of Care under CFO and CCC
Duty of Care CFO CCC
Principal Submitting
Person (PSP)
Site inspection, check the
building and plan approved
& apply final certification
from LA
Site inspection, check the
building and plan approved
& certified Form G1-G21
and Form F
Local Authority (LA)
Site inspection, check the
building and plan approved
& issue CF
Site inspection, issue
recommendation letter for
CCC
Under CCC system, Principal Submitting Person (PSP) has the duty to
supervise the project from beginning until completion and to the issuance of final
certificate. PSP has to inspect the building and approve the plan, supervise the work
progress, and certify Form G1-G21 and issue final certificate by endorsing Form F /
F1 as evidence that the building is safe for user. Local Authority still has the duty for
the project by inspecting to the building and issuing letter of recommendation for the
building.
While under CFO system, PSP still liable to the project so his/her duty is
supervised the work progress until completion then do inspection at site and apply for
inspection from technical department and LA. After inspection, PSP prepare for
application for final certificate from LA. LA duty for the project under CFO system is
same as CCC but under CFO, LA will issue final certificate by endorsing Form E.
Table 4.8: Duty of Care for Parties Involved in CFO and CCC
87
4.2.7 Worst Case Scenario under CFO and CCC
Table 4.5 show example of worst case scenario in delivering system and what
is the action should be taken by the parties to handle the situation.
Circumstances CFO CCC
Principal Submitting
Person has been
terminated / quit the
job / bancrupt?
Who will be
responsible for the
project?
PSP and LA liable to the
project.
- Submit ‘Letter of
Release’ to LA
- Take the case to the
court
- Using third party
So there will be a new
appointed PSP for the
project
Matrix Responsibility
- Submit ‘Letter of
Release’ to LA
- Take the case to the
court
- Using third party
So there will be a new
appointed PSP for the
project
Unpredictable situation may happen at any time during the project either under
CFO or CCC. There are some actions to be taken in the situation such as when PSP
has been terminated or quit the job or gone bancrupt. Under the CFO system, the local
authority and consultant are liable to the project. However under the CCC system it
uses a new system called Matrix of Responsibility, which means PSP take full
responsibility of their works in the project.
If this situation happens, the procedure under CFO and CCC system is the
same. PSP need to submit a “Letter of Release” to Local Authority to inform the
situation and a new appointed PSP will take over the project. The former PSP will be
Table 4.9: Action to be taken in if PSP has been terminated / quit the job / bankrupt
88
liable in the part of the project that has been completed. The new PSP who was been
appointed by the client will be liable for the rest of the project.
In some situation, the consultant can take the case to the court or appoint a
‘third party’ like mediator or arbitrator, so there will be a new appointed PSP to take
over the project. So there is no big issues arise if the PSP of the project suddenly has
been terminated, quit the job or gone bancrupt.
4.2.8 Delay of Final Certificate Issuance Under CFO and CCC
Delay on issuance of final certificate is a common issue in construction either
for CFO delivering system or CCC delivering system. Based on the answers given by
several respondents, Chart 4.3 show the common causes of delay for project under
CFO system. While Chart 4.4 show the common reasons for delay for project under
CCC system.
40%
30%
30%
CFO
Satisfaction of L.A
Late endorsment of Form E
Delay by Other Technical
Department
Chart 4.3: Common Causes of Delay under CFO System
89
With reference to Chart 4.3, there are three main reasons of delay on the
issuance of final certificate under CFO system. The main reasons that stated by
respondents is to attain the satisfaction of the Local Authority would cause the delay.
Under CFO system, LA will issue final certificate. It means after completion of
construction, and then LA will go to the site and inspect the building. In some
situation LAs are not familiar with the project because they will only come when the
project is completed. So, they must ensure that the building is comply with all
requirements and safe for users. If the project does not meet up with the standard, the
LA cannot issue final certificate.
Another reason of delay in issuance final certificate is delay caused by external
technical departments such as Jabatan Bomba dan Penyelamat Malaysia (JBPM),
Indah Water Konsortium (IWK) and other related departments. The external
departments will inspect the safety of project and ensure it follow all the standards. If
the project fails in the inspection process, the PSP must arrange another inspection on
another day. This will cause the project to be delayed because PSP has to follow
technical departments’ schedule.
The last main reason which causes of the delay in final certificate issuance is
late endorsement of final certificate (Form E) by Local Authority. LA have to inspect
the project which have been supervised by the PSP have fulfilled all the entire
requirements. PSP will issue Form E to LA after final inspection by LA for
endorsement as a proof that the building is completed and fit for occupation. If LA
delayed in endorsing Form E, it will make the project on delayed and the users cannot
use the building.
90
In chart 4.4 shows there are three main reasons of delay on issuance of final
certificate under CCC system. Main reasons that stated by respondents is satisfaction
of PSP cause the delay. PSPs have to liable on the project they handle, so they must
ensure the building is comply all requirements by technical departments and safe for
users. If anything happen to the building in future, PSP is the person who the person
who in-charged the project from the beginning until the completion is responsible to
the project. PSP agree to take the full responsibility by certify the all the forms and
issuing final certificate. If the project under his/her supervision did not meet up the
standard, PSP cannot issue final certificate.
Similar to CFO, the other reason of delay in the issuance of final certificate is
the delay from external technical departments like Jabatan Bomba dan Penyelamat
Malaysia (JBPM), Indah Water Konsortium (IWK) and other related departments.
External departments will inspect the safety of the project and ensure that it will
follow all the standards. The project will be on delayed if the project was failed in
inspection where PSP is need to arrange another inspection in another day.
50%
20%
30%
CCC
Satisfaction of PSP
L.A late issuing
Recommendation Letter
Delay by Other Technical
Department
Chart 4.4: Common Causes of Delay under CCC System
91
The last main reason which causes the delay in final certificate issuance is late
issuance of recommendation letter by Local Authority. Other than external technical
department, LA still have duty to inspect the project that are supervised by PSP has
fulfilled all the entire requirements. LA will issue a letter of recommendation to
support form G submitted by PSP. If LA is delayed the issuance of letter of
recommendation, it will make the project delayed because PSP still cannot issue final
certificate without a recommendation letter from LA as supporting documents and
proof that they are committing a misconduct or bias to the project.
4.2.9 Analysis of Transformation from CFO to CCC Improve the
Delivering System
Will the CCC via the self-certification doctrine be merely an ad hoc and
simplistic solution to improve the delivery system rather than old system (CFO)? In
this research, respondents were asked either they agree that transformation from CFO
to CCC system will improve the delivering system in Malaysia or not. Based on the
survey, almost all respondents agree that the transformation from CFO to CCC has
improved the delivering system.
90%
10%
Transformation from CFO to CCC
Agree
Disagree
Chart 4.5: Respondent’s Opinion on Transformation of
Delivering System Improve the System
92
Transformation of delivering system from CFO to CCC improves the
delivering system in Malaysia because CCC system is encouraging the consultant to
be more responsible towards their project and as professional they are protected under
the Acts as well. They have already certified the building construction and would take
full responsibilities of the building. To improve the LA system in the developing
country, this can be called as some sort of privatisation of the system but is still under
the controlled of the LA. Therefore, it can improve the ethics and responsibilities of
the consultant and clients.
The other reason of improvement under CCC system is the issuance of Vacant
Possession can be issued together with CCC. Issuance of vacant possession is
important to the developers especially for housing project. VP only can be issued if
the building has been certified by the professionals (CCC) or Local authority (CFO)
and comply with all regulations and safe to users. This will overcome the problems
previously associated with CFO where home buyers have received the house keys
(upon submission of Form E) but cannot move into the houses because the CFO has
not been issued.26
Respondents also agree that transformation from CFO to CCC can reduce
bureaucracy issues in delivering system. The Minister of Housing and Local
Government on 3rd October, 2005 announced the creation of 334 posts at all LA
(presumably to be filled by competent technical persons for building control purposes)
to ‘…help cut red tape and bureaucracy in the processing and approval of
development plans and Certificates of Fitness for Occupation (CF)…’27
This
statement proves that response from respondents about bureaucracy issue affect the
speed and smoothness of CFO system. Under CFO system, bureaucracy is one of the
critical issues. Bureaucracy that arise when dealing with authority is not new issues.
There are several technical departments that have to inspect the building before the
26
www.pam.org.my 27
The Starspecial (2007) 'Bold local initiatives — one-stop centre mechanism', pp. ss4–ss5, Public
Service, Tuesday, 22nd May, 2007.
93
final inspection by building department. Professional has to ensure all relevant
technical department issue recommendation letter before they apply for final
inspection by LA. If they failed to do so, the process will be delayed and it is difficult
to estimate the exact date of CFO issuance because they have to follow timeline by
authority.
4.2.10 Analysis of Biasness Issue and How To Handle Biasness
If under CFO system, bureaucracy is one of main issues that arise because of
the authorization that need to be attained before the issuance of final certificate for
completed project. While under CCC system, the Principal Submitting Person (PSP) is
the person who will issue the Final Certificate. This situation may cause biasness in
project especially if the PSP is also the client or developer of the project. Respondents
have give their opinions on this situation. From the survey, the respondents agree that
there are no biasness in the project. If this situation happens, it is not a critical issue
and still can be controlled by PSP and Local Authority.
From the analysis of the questionnaire, PSP should comply with all the entire
requirements of the One Stop Centre (OSC) committee’s members in OSC meeting. If
they did not comply with all the requirements, the CCC application form (Form G1-
G21 and Form F) from PSP cannot be submitted to the local authority. Furthermore, in
local authority itself, there are technicians who will inspect the project once a month
from the start until the project is finished and will be reported into the project’s file. If
the LA found any problem on the project after PSP has ensured the completion of the
project, the LA can hold their CCC submission until PSP have complied with all the
requirements. 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.
94
All Form Gs are duly filled and certified, clearances and or confirmation of
supply/connection to six essential services departments – TNB (confirmation of
electrical supply), water authorities (confirmation of water supply), JPS (confirmation
of connection to sewerage treatment plant or mains), IWK (clearance from lifts and
machinery department – if applicable), JBPM (clearances for active fire fighting
systems except for residential buildings not more than 18m high), and Roads &
Drainage Department JKR. With these the PSP can issue the CCC. So there is no
biasness issues happened.
4.2.11 Most Preferable Delivering System
From the study, 90% of respondents prefer CCC delivering system. Only 10%
of the respondents prefer CFO delivering system Feedback from the respondents
mentioned that they prefer CCC system because the principles of CCC system
improve the weakness of CFO system. Even though CCC system does not fully solves
the problems of delivering system but at least it will improve the system.
10%
90%
Preferable Delivering System
CFO
CCC
Chart 4.6: Most Preferable Delivering System
95
From the feedback from respondents and literature review, CCC delivering
system is the most preferable system than CFO because the speed of CCC procedures,
bureaucracy issue, and familiarity of the project. Most of respondents prefer CCC
system because the system is fast and easy than CFO system. In the discussion in
Chapter 3, CFO process is slower than CCC process and this has been confirmed by
the results from survey. The respondents mentioned that most of their projects under
CFO system take a longer time to complete until the issuance of final certificate than
projects done under CCC system.
Based on the survey, the other reason why respondents prefer CCC is because
of familiarity in project. Under CFO system, the Local Authority is the person who
issues final certificate unfamiliar with the project because they will only come when
the project is finish to inspect whether the PSP fulfill all the requirements and then
issue final certificate. Sometimes, when it comes to inspection, some of LA officers
are just a technician in construction field whereas the professional who in-charged the
project was a qualified person and expert in his/her construction field as an architect
or engineer. As feedback from the respondents, it is quite dissonant when the person
who are not qualified or expert give comments and recommendation to a qualified
person’s work. Meanwhile, under the CCC system, PSP is the person who is in-charge
of the project from the beginning until the completion will issue final certificate. So
there is no issues of non-qualified person give recommendation on PSPs’ work.
From feedback of the respondents, under CCC delivering system, bureaucracy
issue is not as critical as under the CFO system. There are several technical
departments that have to inspect the building and PSP has to ensure all relevant
technical departments issue recommendation letter before PSP issue final certificate.
They can issue final certificate as soon as they comply with all the requirements.
96
4.3 Conclusion of Comparison Analysis
Based on the analysis of the data collection, it is important for the PSP to
familiarize themselves with the Uniform Building By-Laws, 1984 and the Street,
Drainage & Building Act, 1974 because these two laws are the main guidelines for
every elements of construction. In any of delivering system either CFO or CCC, these
laws have been amended to implement the changes of delivering system. It is
important to fully understand the procedures and liabilities of PSP. CCC delivering
system is here not to solve all the problems of CFO delivering system, but it will
improve the system because of the concept of Matrix Responsibility for PSP and
contractor and check and balance to LA.
CHAPTER 5
CONCLUSION & RECOMMENDATION
98
CHAPTER 5
CONCLUSION AND RECOMMENDATION
5.0 Introduction
The study on comparison between two delivering systems, Certificate of
Fitness for Occupation (CFO) and Certificate of Completion and Compliance (CCC)
under procedures aspect and liabilities aspect has been discussed thoroughly in earlier
chapters. From background of delivering system, the procedures aspects, professional
liabilities in different systems and analysis of collection data been explained with
related case study and acts. Analysis of the projects based on delivering system in
term of procedures and liabilities have been supported with data collection from
questionnaires’ feedback by respondents helps to make the study more precise. This
chapter will conclude all studies, analysis and findings in this research to achieve the
main objective of study. At the end of chapter, there will be part of recommendation
for further study related to this research.
99
5.1 Research Finding
From the study, Principal submitting Person (PSP) is the main person for a
construction project. Whether it is CFO system or CCC system, PSP is fully liable to
the building of his/her supervision from beginning until completion of the project and
for the lifetime of a building. It is important for a PSP to be familiar with the
procedures and liabilities of CFO and CCC systems.
Basically, there is no big different between CFO and CCC system. Both
systems have advantages and disadvantages. Most of the Professionals prefer CCC
system as for them, it is faster than CFO because final certificate will be issued by
PSP as an expert and is very familiar with the project. Under CCC format, Local
Authority still have a duty of care where LA must ensure that PSP did not
misrepresenting himself/herself where LA can give notice to professional body and
hold issuance of final certificate.
5.2 Study Constraint
Time was the main constraint for this study, comparison study between CFO
and CCC can be discussed more than procedure and liabilities. The study also can
include comparison between delivering system in Malaysia and other countries. But it
is important to narrow down the study as stated in scope of study due to time
constraint.
100
5.3 Suggestions for Future Study
Due to time constraints, this study is focus to procedures aspect and liabilities
aspect under CCC and CFO. But these delivering systems still have pros and cons. It
is proposed that the CCC should be processed under the doctrine of check and balance
to ensure that the principles of disclosure, transparency, accountability, liability,
neutrality and fairness in decision making are adhered to by all stakeholders. For this
purpose, the elements of the doctrine of private certification practised in the UK may
well be adopted in the process of issuing the CCC. Comparison of delivering system
that has been used in Malaysia and other countries can be proposed for any future
study.
Lessons from other developed countries, especially the UK, can be learned in
addressing the issue of the independence of certification.28
The doctrine of private
certification practised in the UK could be studied thoroughly and, if need be, could be
replicated and customised to suit the needs of Malaysia. As such, the CCC can be
done both via self-certification by the PSP (to a limited extent — as practised
currently) and via private certification by independent AI. The LA should, however,
still retain the role as an approving authority in ensuring that building plans comply
with the stipulated codes and standards. Only building inspection function is to be
empowered to the professionals.
28
Reddin, P. (2005) 'Certificates for occupation — a multi-track approach', A paper presented at the 7th
Surveyors' Congress, P.J., 21st June, 2005.
101
5.4 Conclusion
The expansion of the scope of self-certification marks the intention of the
government to replace the CFO issued by the LA with the CCC, in the hope that the
delivery system can be improved, the unnecessary layers of bureaucracy can be cut
and that the alleged rampant acts of gratifications in the LA can be checked. This
move can be viewed generally as a proactive step by the government to reform the
system of building control by providing an opportunity for self-regulation by the
construction industry.
From the study, we can conclude that either CFO system or CCC system, full
liabilities still under PSP from beginning until completion and forever. If the process
of CFO system LA will issues final certificate, and under CCC, PSP will issue final
certificate, it does not mean that LA has no duty of care under CCC. Main purpose of
changing the concept of issuing final certificate is to improve the speed of delivering
system. However for the time being, CCC still not the fastest delivering system
because from the feedback of the study, number of respondent who agree that CCC is
faster than CFO merely same with respondent who said the speed of CFO and CCC
fairly same.
The most important of this study is the different in term of procedures and
liabilities between CFO and CCC system was clearly stated in the research. It will
give significant to any person who involved in construction industry especially PSP
familiar with both delivering system.
REFERENCES
102
REFERENCES
Books / Journals / Thesis
1. Buku Panduan Pelaksanaan Kaedah Pengeluaran Perakuan Siap dan
Pematuhan oleh Para Professional
By; Ministry of Housing and Local Governemt, 2nd
Edition
2. Tesis “Masalah Kelewatan Pengeluaran Sijil Layak Menduduki oleh Pihak
Berkuasa Tempatan”
By; Rosaidi bin Ibrahim, UTM, 2004/05
3. Uniform Building By Law, 1984
4. Act 133, Street and Drainage & Building Act 1974
5. Architects Act 1967
6. Journal of Building Appraisal (2008)
By; Assoc. Prof. Dr Kamaruddin Mohd Nor
7. Langkah 70(d) Strategi Baru Merancang Pertumbuhan Ekonomi Negara,
Kementerian Perumahan dan Kerajaan Tempatanan
By; Ministry of Housing and Local Government
8. West's Encyclopedia of American Law, edition 2. Copyright 2008
By; The Gale Group, Inc.
103
9. The Architect in Practise : Blackwell at pg 7
By: David Chappel & Andrew Willis (2006)
10. Rimmers Law Relating To The Architect : London Sweet & Maxwell, pg 1
By; E.J. Rimmer (1952)
11. Jackson & Power on Professional Negligence
4th edition of Cardy v Taylor (1994) 38 Con.L.R. 79
12. Halsbury's Laws of England, 4th edition, volume 4(2), paragraph 525.
13. Winfield & Jolowiez on The Law of Tort, pages 59 & 66
14. Clerke & Lindsell on Tort, 17th edition. paragraph 4-54
Newspapers / Articles
1. Patten B (2003) Professional Negligence in Construction Spon Press :
London Page 1
2. Howard (2000), Professional Ethics and Rules of Conduct for the Royal
Institution of Chartered Surveyors (RICS), United Kingdom
By; College of Estate Management
3. "Engineers".Occupational Outlook Handbook, 2006-07 Edition. Retrieved
2006-09-21.
By; Bureau of Labor Statistics, U.S. Department of Labor (2006)
4. The Starspecial, 2007 'Bold local initiatives — one-stop centre mechanism', pp.
ss4–ss5, Public Service, Tuesday, 22nd May, 2007
5. Utusan Malaysia (2005) 'CFO: Pegawai lebih layak diarah hadiri mesyuarat
OSC', page 2, 14th October, 2005
104
Websites
1. Legal Dictionary,
http://legal-dictionary.thefreedictionary.com
2. John L. Powell. Professional Negligence The Changing Coastline Of Liability
http://www.4newsquare.com/Files/PDF/Article/JP%20article.doc
3. Jabatan Bomba dan Penyelamat Malaysia official website
www.bomba.gov.my
4. http://www.answers.com/topic/liability
5. http://en.wikipedia.org/wiki/Highland_Towers_collapse
6. http://en.wikipedia.org/wiki/Sultan_Mizan_Zainal_Abidin_Stadium
7. Official website of Pertubuhan Akitek Malaysia
www.pam.org.my
8. http://www.wordiq.com/definition/Bureaucracy
9. Law of Malaysia – Highland Tower Judgement
http://www.lawyerment.com.my/library/doc/laws/casecode/jdgm/11082000
10. National Home Buyers Association
http://www.hba.org.my/laws/CourtCases/L/lim_teck_kong_v.htm
11. Official blog of Badrul Hisham Architect
12. The Malaysian Bar
http://www.malaysianbar.org.my
APPENDIX
MASTER IN CONSTRUCTION CONTRACT MANAGEMENT
FACULTY OF BUILT ENVIRONMENT
UNIVERSITI TEKNOLOGI MALAYSIA
QUESTIONNAIRES
Transformation of Delivering System: Comparison Study between Certificate of Fitness for
Occupation (CFO) and Certificate of Completion and Compliance (CCC)
Profession : Architect / Engineer / Other
Employer :
Experience : Year(s) Age :
Sector : Government / Private
Please answer all the questions.
Total project that you have been involved based on delivering system:
i) Certificate of Fitness for Occupation (CFO)
ii) Certificate of Completion and Compliance (CCC)
Please state one project for each delivering system as references to this study.
i) Project 1 - Certificate of Fitness for Occupation (CFO):
___________________________________________________________________________
___________________________________________________________________________
ii) Project 2 - Certificate of Completion and Compliance (CCC):
___________________________________________________________________________
___________________________________________________________________________
< 5 5 - 10 11 - 20 > 20
< 5 5 - 10 11 - 20 > 20
MASTER IN CONSTRUCTION CONTRACT MANAGEMENT
FACULTY OF BUILT ENVIRONMENT
UNIVERSITI TEKNOLOGI MALAYSIA
Please give your opinion on the differences between these two systems in terms of procedure and
liability. Use your sample of project above as references for section A.
SECTION A: PROCEDURE
ISSUES CFO (PROJECT 1) CCC (PROJECT 2)
Explain the process (stage
by stage) of the project
from the commencement
(Form A) until completion
(Final Certificate)
What are the
requirements (technical
aspect) to be fulfilled?
(eg: UBBL, Local Authority
Guideline, etc)
What are the documents
and forms need to be
submitted in every stage
of submission?
Plan Submission :
Work Commencement :
Construction Progress:
Inspections:
Final Certificate:
Plan Submission :
Work Commencement :
Construction Progress:
Inspections:
Final Certificate:
How long the time (days)
was taken for each stage
until issuance of final
certificate?
Plan submission – approval :
____________days
Commencement of work –
inspection :
____________days
Inspections :
____________days
Application for Final Certificate :
____________days
Plan submission – approval :
____________days
Commencement of work –
inspection :
____________days
Inspections :
____________days
Application for Final Certificate :
____________days
MASTER IN CONSTRUCTION CONTRACT MANAGEMENT
FACULTY OF BUILT ENVIRONMENT
UNIVERSITI TEKNOLOGI MALAYSIA
SECTION B: LIABILITIES
ISSUES CFO (PROJECT 1) CCC (PROJECT 2)
In terms of roles and
liabilities in different
delivering system, is it
extends the liabilities or
limits the liabilities of the
professionalism. Please
explain
Have you been involved in
any conflict during in-
charged the project?
If yes, with who?
_________________________
How do you handle this situation?
If yes, with who?
_________________________
How do you handle this situation?
What is your duty of care
for the project?
(under common law)
What is the procedure if
the Principal Submitting
Person has been
terminated / quit the job /
bankrupt?
Who will be responsible
for the project?
Delay on issuance of Final
Certificate is common
issues in construction
project. Why?
Yes No Yes No
MASTER IN CONSTRUCTION CONTRACT MANAGEMENT
FACULTY OF BUILT ENVIRONMENT
UNIVERSITI TEKNOLOGI MALAYSIA
Based on your experience and knowledge, please summarize these two systems in terms of:
a) Procedure
b) Liabilities
Do you agree the transformation from CFO to CCC improve the delivering system in Malaysia? Why?
Under CCC system, PSP is the person who involved in the project will issue the Final Certificate. This
situation may cause biasness in project. How would you handle this biasness issues?
Which delivering system you preferred most? Why?
Thank you for your time and consideration.
Prepared by;
‘Adila binti Zakaria
MSc. CCM, UTM
0136016881
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