Course Overview
This 2-day Contract Management course is based on the Contracts Act of Malaysia 1950. The objective is to introduce delegates to the framework of the Contracts Act and provide them with working knowledge of the fundamentals of Malaysian contract law combined with applicable international law such as FIDIC.

The course cuts through legal jargon and focuses on the practical mechanics of the Act, illustrated with relevant Malaysian and international case law examples. The course comprises six modules as follows:

• Module 1: Principles of Contract Formation
• Module 2: Contractual Considerations for Risk Mitigation
• Module 3: Void and Voidable Contracts
• Module 4: Contract Administration
• Module 5: Alternative Dispute Resolution
• Module 6: Closing Out the Contract

Target Audience
This course is highly recommended for project managers, project leaders, project controllers, contract managers, construction managers, offshore managers, contract administrators, procurement department personnel, and sub-contract department staff.

Learning Outcomes
At the end of this course, participants will be able to identify and understand:

• The mandatory prerequisites for contract formation
• The legal implications of guarantees, warranties, and innominate terms
• Incorporating exclusion clauses into contracts
• The legal obligations and responsibilities of the parties
• The battle of forms
• The consequences of non-compliance with contracts
• The differences between breach and warranty terms
• The differences between void and voidable contracts
• Causes of delays and disputes
• Options for alternative dispute resolution
• The legal implications of liquidated ascertained damages, variation orders, and extension of time
• The process of closing out a contract

Course Outline

Introduction

• Background to the 1950 Contracts Act
• The hierarchy of courts in Malaysia
• Contract lifecycle
• Types of contracts (Turn-key, Cost Plus, Time & Materials)

Module 1: Principles of Contract Formation

• Privity of contract
• Offer and acceptance: key differentiators between estimates and quotations
• Letters of intent (LOI)
• Letter of award (LOA)
• Proposals
• Capacity of the parties
• Consideration
• Possibility and impossibility of performance
• Frustration of contract
• Consent
• Certainty of terms
• Condition of contract
• Warranty
• Legality
• Conditions under which the contract becomes void

Module 2: Contractual Considerations for Risk Mitigation

• Extrinsic evidence
• Collateral contracts
• Warranties
• Exclusion clauses
• Indemnities
• The quality process

Module 3: Void and Voidable Contracts

• Void contracts
• Voidable contracts

Module 4: Contract Administration

• The role of the contract administrator in determining:
  • Extension of time (EOT)
  • Delay
  • Variation orders (VO)
  • Liquidated ascertained damages (LAD)
  • Breach of contract
  • Fundamental vs warranty terms
  • Employer’s breach vs contractor’s breach

Module 5: Alternative Dispute Resolution

• Causes of contractual disputes
• Alternative dispute resolution (ADR) options
• Mediation
• Arbitration
• Adjudication

Module 6: Closing Out the Contract

• Administration close out
• Vendor evaluation
• Lessons learned
• Post implementation review

Malaysian and international case laws are extensively used to illustrate and explain key topics, enhancing the learning experience.