The exclusion clause in government standard form of construction contracts

One of the functions of contract is to set out the rights, duties and liabilities of the parties to the contract. When a party fails to perform his duty, he is liable to pay damages to the innocent party. However, it is quite a normal practice for a party to expressly exclude liability in such event...

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Main Author: Abd. Hamid, Saiful Azhar
Format: Thesis
Language:English
Published: 2013
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Online Access:http://eprints.utm.my/id/eprint/33160/5/SaifulAzharAbdHamidMFAB2013.pdf
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spelling my-utm-ep.331602017-07-24T04:16:02Z The exclusion clause in government standard form of construction contracts 2013-01 Abd. Hamid, Saiful Azhar TH Building construction One of the functions of contract is to set out the rights, duties and liabilities of the parties to the contract. When a party fails to perform his duty, he is liable to pay damages to the innocent party. However, it is quite a normal practice for a party to expressly exclude liability in such eventuality. Such a term is generally known as exclusion clause. It essentially means that if he fails to perform the duty that he is expressly or impliedly bound to carry out under the contract, he is not liable to the other party. Exclusion in performing obligations in the event of breach of contract is an issue that often creates a dispute between the contracting parties. It is even more crucial when the contract is wholly drafted only by one party. Exclusion clauses are also found in standard forms of construction contracts. But they are worded in such a way that it is very difficult to determine with certainty that they are in fact exclusion clauses. They normally exclude the liability of the employers and thus create inequality and unfairness between the contracting parties. Therefore, the objective of this study is to identify the exclusion clauses and their effectiveness in excluding the employers’ liabilities. The scope of this study is limited to the Public Works Department standard forms of contracts. The study was carried out by analyzing the standard contract forms. The effectiveness was evaluated by examining the relevant court cases and opinions of experts. The analysis of the standard forms revealed sixteen exclusion clauses. In term of their effectiveness, by and large, the research found that, not all the exclusion clauses were effective to exclude the government’s liability to the contractor in the event of such failure of performance. 2013-01 Thesis http://eprints.utm.my/id/eprint/33160/ http://eprints.utm.my/id/eprint/33160/5/SaifulAzharAbdHamidMFAB2013.pdf application/pdf en public masters Universiti Teknologi Malaysia, Faculty of Built Environment Faculty of Built Environment
institution Universiti Teknologi Malaysia
collection UTM Institutional Repository
language English
topic TH Building construction
spellingShingle TH Building construction
Abd. Hamid, Saiful Azhar
The exclusion clause in government standard form of construction contracts
description One of the functions of contract is to set out the rights, duties and liabilities of the parties to the contract. When a party fails to perform his duty, he is liable to pay damages to the innocent party. However, it is quite a normal practice for a party to expressly exclude liability in such eventuality. Such a term is generally known as exclusion clause. It essentially means that if he fails to perform the duty that he is expressly or impliedly bound to carry out under the contract, he is not liable to the other party. Exclusion in performing obligations in the event of breach of contract is an issue that often creates a dispute between the contracting parties. It is even more crucial when the contract is wholly drafted only by one party. Exclusion clauses are also found in standard forms of construction contracts. But they are worded in such a way that it is very difficult to determine with certainty that they are in fact exclusion clauses. They normally exclude the liability of the employers and thus create inequality and unfairness between the contracting parties. Therefore, the objective of this study is to identify the exclusion clauses and their effectiveness in excluding the employers’ liabilities. The scope of this study is limited to the Public Works Department standard forms of contracts. The study was carried out by analyzing the standard contract forms. The effectiveness was evaluated by examining the relevant court cases and opinions of experts. The analysis of the standard forms revealed sixteen exclusion clauses. In term of their effectiveness, by and large, the research found that, not all the exclusion clauses were effective to exclude the government’s liability to the contractor in the event of such failure of performance.
format Thesis
qualification_level Master's degree
author Abd. Hamid, Saiful Azhar
author_facet Abd. Hamid, Saiful Azhar
author_sort Abd. Hamid, Saiful Azhar
title The exclusion clause in government standard form of construction contracts
title_short The exclusion clause in government standard form of construction contracts
title_full The exclusion clause in government standard form of construction contracts
title_fullStr The exclusion clause in government standard form of construction contracts
title_full_unstemmed The exclusion clause in government standard form of construction contracts
title_sort exclusion clause in government standard form of construction contracts
granting_institution Universiti Teknologi Malaysia, Faculty of Built Environment
granting_department Faculty of Built Environment
publishDate 2013
url http://eprints.utm.my/id/eprint/33160/5/SaifulAzharAbdHamidMFAB2013.pdf
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