I'm a Quantity Surveyor by profession and construction contract management is my core competence. I've noticed in Malaysia market that the low awareness of contract importance ultimately affects Client's confidence in engaging+managing the contractor.

A little brief introduction about myself. 6 years of Quantity Surveying background, major in Cost and Contract management and a MBA candidate in Lancaster University. In a recent event happened to my close friend, it has made me realise of the importance of a contract when it comes to renovation/small construction works. (i.e - below MYR 1million)

Situation A
A friend of mine recently engaged a contractor in renovation works for his new shoplot and rental is RM10k/month.
1) Due to contractor delay of close to 2 months, there was a loss of RM20k in rental.
2) There was also a lot of dispute regarding of scope of works. Contractor claimed that this is not included, that is not included (typical).
3) There was no proper contract terms to manage the contractor. (if late handover, no penalty imposed?)

Situation B
My neighbour engaged a contractor to demolish the entire house and rebuild. Time has lapsed badly due to contractor's bad management in schedule. In this situation:
1) He has to continue paying rental for his temporary house
2) No contract provision to hold against the contractor. He either has to bare with the contractor or "terminate, then engage new contractor".

In the both situation, managing the contractor would have been much easier if there was a proper contract with necessary terms.

General benefits of having a contract:-
1) Penalty clause will be included. In case of late handover, XXX amount/day will be deducted from his final sum.
2) Construction time can be pre-determined, and quotation would be comparing apple to apple. (leading to higher price competitiveness)
3) Scope of works can be pre-determined and dispute will be lessen when it comes to actual construction.

I've also set up a simple website detailing some other info. (Ugly but my content is real ) http://buildsafemalaysia.webs.com/

To discuss further on my service, please contact me at 016 222 9008 (Ben Au).

Please comment if you have any!