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Ar ANTHONY LEE TEE

Architect Centre SB

19th July 2025

ARCHITECTS

See You In Court, Again!?

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10.10 [2018]

Master-Class Workshop Series

Architects’ Beware

These Errors, Oversights, Defects Can Cost You Dearly

Findings from 10 years Property Inspections in Malaysia

10 recurring Defects, Errors, Oversights facing Architects.

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What is a Defect?

Generic: A defect is a flaw, imperfection, or deficiency in a product, material, or process that causes it to fail to meet specified standards or intended function.

…can occur in manufacturing, construction, or any other industry where the final output does not align with quality expectations, design requirements, or performance criteria. Defects may be minor (cosmetic) or major (affecting usability or safety), and can result from errors in design, production, installation, or material selection.

…”a shortcoming, imperfection, or lack" in something that causes it to be faulty or incomplete. In a general sense, it refers to any flaw or imperfection that results in something not functioning as intended or meeting a required standard.

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What is

Defect in Construction?

Any imperfection or flaw or fault in construction that results from poor workmanship, materials, or design that does not meet the contractual specifications, building codes, or industry standards.

Defects can be structural (affecting the integrity of the building) or non-structural (cosmetic, affecting appearance), and they can manifest during or after construction or within a set defects liability period after completion, or after DLP.

as defined by RICS Defects & Rectification 2nd Edition Aug. 2024

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‘Contract Administrators

(operating in Malaysia)

within a dispute prone industry

due to

fragmented and adversarial nature’

(Cheung and Yin 2007, Chong and Rosli 2009)

Chapter 8: Defects

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Patent Defect

Obvious [at CPC] + [during DLP]

Latent Defect

no visual sign at completion

hidden, become apparent later stage

English courts have defined latent defects as those defects that do not become obvious even though the requisite level of skill and care had been exercised in searching for and identifying them.

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Defects in Housing S&PA

Schedule H - Clause 30. Defect Liability Period & Clause 14

Fourth Schedule - Building Description

Any defect, shrinkage or other faults in the said Parcel or the said Building or the common property which becomes apparent within twenty-four (24) months after the date the Purchaser takes Vacant Possession of the said Parcel and which are due to defective workmanship or materials or; the said Parcel or the said Building or the said common property not having been constructed in accordance with the plans and descriptions as specified in the First and Fourth Schedules as approved or amended by the Appropriate Authority, shall be repaired and made good by the Developer at its own cost and expense within thirty (30) days of the Developer having received written notice thereof from the Purchaser.

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Defects in Construction & HDA S&PA

Any defects, shrinkage,

imperfection or fault

poor / defective workmanship, materials,

(or design)

Did not meet contractual

specifications, building codes,

industry standards.

manifest / appear / discovered

during or after completion

within DLP, after DLP.

In Parcel or Common Property

Build Only

Materials & Workmanship

Vs Consultants’ design

Vs Design-Build

Patent vs Latent

Warranties

Limitation Periods

Determined / Decided by whom?

Arch/Eng/Developer/Purchaser

Expert, ExD, Tribunal, Arb, Court

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Sticker Men

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Joint Statement by the Board of Architects Malaysia (LAM) and the Malaysian Institute of Architects (PAM) In Support of CIDB’s Clarification on CIS 7 and QLASSIC™

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Defects! New Trouble beyond Delay & Quantum Disputes

Construction

Contracts

Traditional Build Only

Phased & Staggered

Design-Build

EPCC etc

Sub-Contracts

Contracting Parties:

Employer

Contractor

NSC, DSC, Supplier etc.

Sales & Purchase Agreements

HDA – Schedule G & H

Non-HDA

Sub-Sale

Parties:

Developer & Home Buyer

Vendor & Purchaser

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BUILDERS

PROPERTY

DEVELOPER

/ OWNER

Consultants Architects

PURCHASERS

Land & Building

Strata Owners

PURCHASERS

Strata Owners

HDA – SPA Schedule G & H

Non-HDA

Professionals

Sub-Contractors

& Suppliers

NSC

& Suppliers

JMB / MC

Vendors

Trades

Property Managers

PAM Form of Contract

Consultants

Architects

Strata Management Act

NSC Contracts

Sub-Contracts

PMC

Defects . Set-Off

Non-compliance to SPA

Unit Defects (Tribunal)

Defects . Set-Off

Common Areas Owner Units

Design, Certification, Supervision

Design

Matrix of Parties

JKR Form of Contract

Design-Build

EPCC, Fidic ,CIDB etc

Common Disputes over Defects

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Complexity with Mixed Strata

Housing & Commercial Development and Construction Contracts

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BUILDERS

PROPERTY

DEVELOPER

/ OWNER

PROFESSIONALS

Consultants

PURCHASERS

Land & Building

Strata Owners

PURCHASERS

Strata Owners

HDA – SPA Schedule G & H

Non-HDA

Professionals

Sub Contractors

& Suppliers

Nominated

Sub Contractors

JMB / MC

Vendors

Trades

Property Managers

PAM Form of Contract

JKR Form of Contract

Fidic CIDB

CIPAA

PROFESSIONALS

Consultants

Strata Management Act

Strata Title Act

NSC Contracts

CIPAA

Sub Contracts

CIPAA

PMC

Time & Costs

(EOT, LAD, L&E) CIPAA

Setoff & Defects

Time & Costs

(EOT, LAD, L&E) CIPAA

Setoff & Defects

non-compliance to SPA

LAD, Unit Defects (tribunal)

Defects, Latent Defects

Common Areas

Errors & Omissions

CIPAA

Errors & Omissions

CIPAA

Lifespan of Disputes

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Traditional:

PAM Form of Contract Employer/Client

Architects

Engineers

QS

Contractor

NSC

New Norm (whole lot more complicated!)

Design-Build

International PMC

Value Engineering – e.g. IBS

Parang Contracts

Molested PAM Form

GBI, GRE etc..

Qlassic, Conquas..

Strata Mngt Act 2013

Property Management

Tribunals & Disputes

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Parang Contracts

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Extracted from a Tender in KL - 2018

No Drawings, Details or Specs

Fit for Purpose, regardless

What Drawings, Details or Specs?

Whether or NOT

Invitation for Dispute Contract

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Design of

Safety and Maintainability

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M&E penetration

Above Electrical Switch Room

Design (1) vs Workmanship (2) vs Maintenance (3)

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Water Seepage

Electrical Switch Room

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IN THE HIGH COURT OF MALAYA AT KUALA LUMPUR CIVIL SUIT NO. WA-22C-98-10/2017

Dua Residency MC vs Edisi Utama

Salient Grounds of Judgment

  • Developers owe a duty of care to management corporations to ensure that the stratified development is well constructed

  • For latent defects concerning water leakage, time starts to run from the date the plaintiff discovers the root cause of the damage caused by the leakage.

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Swimming Pool, Open Deck, RC Flat Roofs�Construction Movement Joint – ‘CMJ’

Red dotted lines indicate approximate location of CMJ on Ground Floor

Swimming Pool and Deck

Year 2018

Encl. 29 / 17

Block A

Block B

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Ground Floor Plan (Construction Drawing provided by the Defendants) after the site inspection on 14th October 2020

CMJ

Block A

Block B

Swimming Pool & Deck

CMJ

A1

B1

B2

B3

B4

C1

C2

C3

C4

D1&D2

D3

D4

D5

D6

Photo A1.1

Photo A1.2

Photo B1.1

Photo B1.2

Photo B1.3

Photo B1.4

Photo B1.6

Photo B1.5

Photo B2.2

Photo B2.1

Photo B3.1

Photo B3.2

Photo B4.2

Photo B4.1

Photo B4.3

Photo C1.1

Photo C1.2

Photo C2.1

Photo C2.2

Photo C3.1

Photo C3.2

Photo C4.1

Photo D2.1

Photo D1.1

Photo D1.2

Photo D3.1

Photo D3.2

Photo D3.3

Photo D3.4

Photo D4.1

Photo D5.1

Photo D6.1

CMJ

CMJ

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Photo C3.1

CMJ – Location C3

Chainage C3 : 155.61 – 166.74 m

Photo C3.2

CMJ

CMJ

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Photo A1.1

Photo A1.2

CMJ – Location A1

Chainage A1 : 0.00* – 61.04m

(*start of chainage)

CMJ

CMJ

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PU Foam Grouting

Heavy Efflorescence (calcification)

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PU Foam Injection

Does it Work?

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Year 2018

Year 2012

Progression of Water Seepage

Ineffectiveness of PU Grouting

Drip pan & discharge pipe

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For Illustration Purposes:

Swimming Pool & Open Deck

Comprehensive Repairs

from the

TOP / Positive Side

Remove old screeding and waterproofing

Epoxy Grouting repairs for concrete cracks

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Root Cause(s) of Building Defects

Design vs Workmanship vs Maintenance

Leaks & Cracks – Waterproofing, Plastering; Tiles – Hollowness, Debonding

Seepage – Windows; Pipes – Water, Sewerage;

Glass – Glazing / Handrails; Maintainability – Design, Materials, Details

Drawings, Details

Materials, Specifications

Determined & Specified

by Architect / Engineers

Shop Drawings

Workmanship benchmarked by Specification & Standards Determined and Accepted by Architect / Engineers

Defects Liability Period

Maintenance Period

Owner (Representative)

Property Manager

Competent Persons etc.

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avoid ‘designing’

Building Defects & Disputes

Root Cause(s) of Building Defects

Design vs Workmanship vs Maintenance