ATTRIBUTES OF DOMESTIC SUBCONTRACT IN MALAYSIAN CONSTRUCTION INDUSTRY

Abstract

A variety of standard form of main contracts and nominated subcontracts which correspond to the main contract are used in Malaysia. Nonetheless, there is no standard domestic subcontract form available to correspond to the standard main contract in the local context. More than ninety percent of registered construction companies in Malaysia are in the SME category. Even though subcontractors usually execute a significant portion of a construction project, domestic subcontracting issues are seldom acknowledged and addressed. Very little research work has been conducted, and there is little published information available on the subject, especially on the standard form of domestic subcontract. Therefore, there is a need to determine the attributes of 'good' standard forms, which may be incorporated as part of an efficient domestic subcontract form. This paper is based on an extensive review done on literature pertaining to the attributes of the domestic subcontract. Nineteen (19) selected articles from well-regarded and relevant academic journals specializing in civil engineering, construction engineering and management and project management were thoroughly reviewed. In addition to that, twenty-two (22) sample of in-house domestic subcontract forms were analysed in order to evaluate crucial conditions required for domestic subcontract. The content analisis yielded six major categories, which are clarity, consistency, language, format, parties, and risk.