Submitted by admin2 on Thu, 26/07/2018 - 13:39


COMMON QUESTIONS RELATING WITH THE IMPLEMENTATION  CERTIFICATE OF COMPLIANCE & COMPLETION (CCC)

Question :

1.  What is the consequence or implication in the event the PSP dies or cannot be traced after the CCC is issued?


Answer :
 
Previously, CFO was issued by the LA whereas under the new system the CCC will be issued by the PSP. However, the responsibility for the safety of the building, whether during construction or after the completion of the building as per section 71 of Act 133 (1974) which, inter alia, includes the person submitting the building plan, still remains under the new system.
 
To ensure continuous responsibility by the concerned parties, the new certification system also introduces an improved control process on all the parties involved in the building construction under the Stage Certification process which is based on the principle of Matrix of Responsibility. Under this concept, every building component is placed under the responsibility of the professionals, contractor or trade contractors. This essentially means that even though the PSP is responsible for the overall construction of the building, the other parties are also held responsible in their respective areas of work on the building. To cite an example, the responsibility for structural works rests with the Engineer as well as the contractor that carries out the work.
 
The PSP can only issue the CCC when all the building components are fully certified by the various parties. In this case, even if the Professional Architect who functions as the PSP dies or cannot be traced after the CCC issued, the responsibility for the building structure that is being erected remains with the Professional Engineer.
 
This element of check and balance will assist in minimizing the risk or implication that arises in the event that the PSP dies or cannot be traced after the CCC is issued.

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Question :


2.  Will the new system cause any delay as there are now various stage certification processes to be complied with before the CCC is issued?

Answer :

The process for acquiring certification for each building components is carried out progressively as and when the particular component is completed at the site. As such, the issuance of the CCC is well within the control of the PSP. Furthermore, the issuing period will be more assured since the involvement of the LA in the CCC issuing process is minimal. However, the role of check and balance assumes by the LA remains and, similarly, the power of the LA to ensure the safety of the building being erected is not affected under the new system.
 
Under the new system, the PSP can issue the CCC immediately after he is satisfied that the construction has fully complied with the provisions of the law and the technical conditions imposed. Whereas under the CFO system, once satisfied with the construction, the Submitting Person submitted an application to the LA for verification and for on-site inspection before the CFO could be issued.


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Question :

3.  Under the CCC system, there exists the possibility of a conflict of interest as the PSP who supervises the construction is also responsible for issuing the CCC. It has also been said that the developer will be in cohort with the PSP in any building development project as the PSP is really an agent appointed by the developer.

Answer :

The basic premise underpinning the CCC system is that only those who are most knowledgeable and possesses the expertise on building development project are bestowed the authority to certify the safety and comfort of the building by the issuance of the CCC. The PSP represents the person most conversant and familiar with the particular project, given his competency and direct involvement in all stages of its development; that is, from that of planning, to actual construction and completion of the said project.
 
A new provision has been introduced relating anybody to the offence of knowingly making or producing any false or fraudulent declaration, certificate, application or representation of any form prescribed under the law.
The penalty for this offence carries a fine not exceeding RM250, 000.00 or a jail term not exceeding 10 years or both.


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Question :

4.  Does the LA still have a duty of care to ensure that the building erected is safe and fit for occupation?


Answer :

Under the common law, the LA still has a duty of care to ensure that the building is safe and fit for occupation.
 
Under the new system, the LA still has a role and responsibilities in the CCC issuing process as provided for under the new subsection 70 (23) and (24) of Act 133. Under subsection 70 (23), the LA is empowered to issue written notice to the PSP and SP to rectify any non-compliances beside the power to issue written notice to the PSP to withhold the issuance of the CCC until the non-compliance is rectified. While under the new subsection 70 (24), the LA may itself cause any work to be executed or any measure to be taken if it considers such work or measure is necessary to rectify the non-compliance.
 
Additionally, the LA also possesses the authority under section 85A of Act 133 to direct that an inspection be carried out by the owner of building after 10 years from the date CCC is issued for that building and every 10 years there on.


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Question :

5.  Can civil action be taken against the LA?


Answer :

Civil action can be taken against the LA, albeit the immunity provided under section 95 (2) of Act 133. This is based on previous court judgement which cited that the LA has a duty of care towards third party.

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Question :

6.  What is the control system on professionals to prevent misuse or abuse of power?


Answer :

To prevent the wrongful use or abuse of power by the professionals, the new system has introduced the concept of matrix of responsibility where clear control is provided for through the use of 21 stage certification forms.
 
In addition, to reinforce this control, the professionals are also governed by their respective professional Acts and professional boards.

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Question :

7.  Can the Professional Indemnity Insurance (PII) provides the Professional Engineer or Professional Architect protection as they are now also required to certify which may be beyond the norm of reasonable care, skill and diligence expected of them? Will the buyers also be possibly burdened with the premium cost for insurance policies that will be included in the building cost or that the PII itself be discontinued from providing protection to the Engineer or Architect resulting in difficulty for buyers to receive compensations?


Answer :

At this point in time, the PII is not mandatory for the Engineer or Architect. However, it has been known that some professionals have taken such insurance to protect them.
 
Both the Professional Boards concerned are currently studying the feasibility of making the PII mandatory for the professionals without adding the burden to buyers.
 

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Question :

8.  What are the benefits of the CCC system to house buyers?


Answer :

The CCC certification can now be issued simultaneously with the issuance of the Notice of Vacant Possession (VP). This will alleviate problems where a buyer is unable to occupy the house even though in possession of the keys.
 
With the introduction of the matrix of responsibility concept, the elements of accountability and integrity will be further enhanced whereby action can now be taken against those responsible in the event of failures or defects to the building. As such, the quality of building works is expected to be improved.


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Question :


9.  In fulfilling their responsibility, the PSP is only required to certify that the completion and compliance of the building comply with the provisions of the law and the technical conditions imposed by the PBT. What the mechanism for ensuring that the non-technical conditions are complied with before the CCC is issued?

Answer :

All non technical conditions are imposed by state governments or LA themselves. Therefore the mechanism to ensure compliance to non technical conditions should be taken up by each state government with project owners.
 
To concur with the provisions of CCC, non technical conditions should not stop or hinder the issuance of CCC once a project fulfills the 4 stipulated conditions.

 
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Question :

10. 
For Form G18 on Street Lighting, are road side lightings which are situated within the compound of a building owner, required to be submitted to the Local Authority for approval as ‘Street Lighting’ even though they are not handed over to the LA?

Answer :

Road side lightings are defined as Street Lighting where these are handed over to the LA. As such these Street Lighting plans are required to be submitted for approval by the LA. An example would be road side lightings within a residential housing development scheme.
However, road side lightings which are installed within a property boundary, and which are not surrendered to the LA and are maintained by the property owners are defined as Compound Lightings. Such Compound Lightings need not be submitted to the LA for approval and Form G18 shall be signed off as “Not Applicable” by PSP for the issuance of CCC. Examples would be road side lightings installed within the property boundary of an institutional, standalone residential, commercial or industrial development. Such lighting installations are deemed to be certified under Form G7 on Internal Electrical.
 
In exceptional cases when the road and drainage works within a property boundary are to be handed over to the LA but not the road side lightings (e.g. for petrol stations) then approval by the LA is required and Form G18 endorsement of such road side lightings is applicable.


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Question :

11. 
Does the ‘deemed approved rule’ still apply for Local Authority or JKR/LLM for failing to reply after the Submitting Person has made the official request for the Letter of Support for a Form G for the issuance of Form F (CCC)?

Answer :

Yes it is deemed approved if no reply is received by the Submitting Person after 14 days from the date of submission letter of the official request for the Letter of Support. The Letter of Support is then no longer necessary to be attached with the relevant Form G for the issuance of CCC.