Legal Issues of Partnering in Construction Industry: Malaysia Contract Law System

摘要

Partnering is gaining popularity as an innovative method to carry out construction projects globally. It is a concept that provides a framework for the establishment of mutual objectives among the building team members with an attempt to reach an agreed dispute resolution procedure as well as encouraging the principle of continuous improvement. Though it has been debated that partnering is not about contracts, there are legal issues to be considered from the adoption of partnering concept. The aim of the research is to fill the gap in this research area specifically the legal issues of partnering in Malaysia's construction industry. The study focuses on the analysis of legal issues of partnering in construction industry and also to determine the appropriateness of partnering term which suits the nature of Malaysia's construction industry. Through a literature review, this paper highlights the definition and the process of partnering in construction industry, and also the benefits of adopting partnering in construction projects. Several legal issues of partnering in construction industry are discussed which cover the principle of good faith, estoppel and waiver, fiduciary relations, misrepresentations and enforceability of the agreement itself. The ultimate aim of this study is to produce framework of the partnering contract which is suitable for the Malaysian construction industry to be as a reference in the implementation of partnering.