Malaysia, Gan Partnership updates


Contributed by Gan Partnership
Calling on performance bonds: new test for unconscionability?
  • Malaysia
  • 23 February 2021

With the recent enforcement of the Temporary Measures for Reducing the Impact of Coronavirus Disease (COVID-19) Act 2020, the question has arisen as to whether it provides a new ground for contractors to challenge calls on bank guarantees. A recent high court decision on the application of the Prevention and Control of Infectious Diseases (Measures Within Infected Local Areas) Regulations 2020 provides insight into how the courts may interpret the act.

Housing developers beware – aftermath of PJD
  • Malaysia
  • 16 February 2021

The Federal Court recently delivered a landmark decision concerning the delay of delivery of vacant possession for Schedule G and H-type contracts under the Housing Development (Control and Licensing) Regulations. This article focuses on the decision's impact on housing developers with respect to their completed and ongoing housing projects. While the dust on the calculation of liquidated and ascertained damages for housing projects is now settled, the storm may be brewing for housing developers.

Housing developers beware – Federal Court upholds Faber Union
  • Malaysia
  • 09 February 2021

In a recent landmark decision, the Federal Court unanimously held that Faber Union is good law. The key question that the court considered was where there is a delay in the delivery of vacant possession, does the date for the calculation of liquidated and ascertained damages begin on the date of the payment of the booking fee or on the date of the sale and purchase agreement?

Federal Court rules that termination clauses should be construed strictly
  • Malaysia
  • 02 February 2021

A recent Federal Court decision has breathed new life into the interpretation of termination clauses in contracts. Indeed, it sounded a cautionary note to the business community at large when the court held that termination clauses must be interpreted strictly. This decision is a warning to all contracting parties not to rush the termination of a contract. Instead, care and a meticulous reading of the entire contract are required to ensure strict compliance with the termination clauses.

Who has the right to sue a consultant?
  • Malaysia
  • 26 January 2021

As cashflow is crucial for main contractors in any ongoing construction project, prompt and expeditious payments by the employer are often expected. However, if the main contractor is dissatisfied with the payment certificate, can the main contractor sue the consultant for negligence? The Court of Appeal recently addressed this question and unanimously upheld a high court decision in dismissing a main contractor's claim against a consultant.

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