ARCHITECT ACT 1967 (ACT 117) & RULES

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LAW AND PRACTICES CONCERN
OF ARCHITECT ACT 1967
& ARCHITECT RULE 2010
GROUP V
ASSIGNMENT 1 - SEMINAR TOPIC VII
PREPARED BY
KIM ZHAO WEI
LIM SIAW YEN
PATRICK CHHOA
LEE SAI FONG
ELAINE LEE MEI LIAN
KOK LEAN KEAT
TUTOR: AR. RAMLI
MBES 2163 ARCHITECURAL PRACTICE
2015/2016 SEM I
MBE 141079
MBE 141069
MBE 141083
MBE 141062
MBE 141067
MBE141032

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INTRODUCTION OF
ARCHITECT ACT & ARCHITECT RULES
1.0
STANDARD FORM OF ARCHITECT PRACTICE

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1.1 BACKGROUND
Architects have been practicing their art and science since
antiquity. The profession as we know it today has undergone
extensive growth and change. The profile of architects' work
has become more demanding, clients' requirements and
technological advances have become more complex, and
social and ecological imperatives have grown more pressing.
These changes have spawned changes in services and
collaboration among the many parties involved in the design
and construction process.
BOUNDARY OF
ARCHITECT AND
HIS/HER
PRACTICE….
IF THERE’S ANY?

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ARCHITECT ACTS
BOARD, REGISTRATION, PENALTY
2.0
3 PERSON IN THIS GROUP
TASKS IN PACKAGES
A – COMPILATION, PART II AND III (5 – 10 SLIDES )
B – PART IV AND V (5 - 10 SLIDES )
C – SCENARIO STUDY & GHANT CHART (5 – 8 SLIDES)

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2.1 BOARD OF ARCHITECT
The functions of the Board are provided under the Section
4(1) of the aforesaid Act which includes the following :
•Registration of Professional Architects, Architects and
Building Draughtsmen;
•Registration of architectural consultancy practices;
•Regulation of their conduct and ethics;
•Conducting examinations for admission to the profession;
•Accreditation of architectural programmes;
•Development and Promotion of the profession;
•Representing the architectural profession in any matter at
local and international levels.
REGARDING ON
THE BOARD OF
ARCHITECT
… …
IN A
PROFESSIONAL
WAY
LEMBAGA ARKITEK M

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REGARDING ON
THE BOARD OF
ARCHITECT
… …
IN A
PROFESSIONAL
WAY
MEMBERS OF BOARD
PRESIDENT
5 ARCHITECTS (PUBLIC)
10 ARCHITECTS (PRIVATE)
ENGINEER
QS
BUILDING DRAFTMEN
ID
INSPECTOR OF WORKS
ARCHITECTURE TECHNOLOG
Malaysian citizens and
who are appointed by
the Minister
appointed from among
Architects
in the public service of
the Federation, States,
local authority or
statutory authority
in private practice for at least
five years in Malaysia, three
of whom shall be from the
nomination list submitted by
the Council of the
Pertubuhan Akitek Malaysia

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REGARDING ON
THE BOARD OF
ARCHITECT
… …
IN A
PROFESSIONAL
WAY APPARENT BOARD ME

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2.2 MALAYSIA’S DEFINITION
“architectural consultancy practice” means a sole
proprietorship, partnership or body corporate incorporated
under the Companies Act 1965 [Act 125], providing
architectural consultancy services and is registered by the
Board under section 7A or 7B;
#CLAUSE 2, pg 4, ACT 117, Architects Act 1967
DEFINITIONS
OF ARCHITECTURE
PRACTICE
FOLLOWING IS LAM’S INTERP

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under the COMPANIES ACT 1965 [ACT 125], providing
Board under SECTION 7A OR 7B;
LOOK
CAREFULLY…
FOLLOWING IS LAM’S INTERP
CLAUSE 7A: ARCHITECTURAL CONSULTANCY PRACTICE
CLAUSE 7B: A BODY CORPORATE PROVIDING
ARCHITECTURAL CONSULTANCY SERVICES,
PROFESSIONAL ENGINEERING SERVICES AND/OR
QUANTITY SURVEYING SERVICES
SOLE PROPRIETOR/ PARTNERSHIP/ CORPORATE
MULTIDISCIPLINARY

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LOOK
CAREFULLY… ON ARCHITECTURAL CONSULTAN
•submission of plans or drawings
•design conceptualization, research and development
•survey & reports relating to the built environment;
•project programming, construction and manufacturing
programming
•planning and development services
•preparation of feasibility studies and cost estimates;
•preparation of plans and other means of
presentation;
•all services in compliance with statutory
requirements;
•any other activities relating to the creation,
preservation and enhancement of the built
environment;

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COMMON
PRACTICES
SOLE PROPRIETOR PARTNERSHIP CORPORATE MULTIDISCIPLINARY
CLAUSE 7A CLAUSE 7B
2.3 COMMON FORM OF PRACTICE

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REGULATIONS
ON
ARCHITECTURE
PRACTICE
CLAUSE 7A: ARCHITECTURAL CONSULTANCY PRACTICE
“(3) The Board shall register a sole proprietorship,
partnership or body corporate as an architectural
consultancy practice, subject to such conditions and restrictions
as it may deem fit to impose, if –
(a) in the case of the sole proprietorship, the sole proprietor is a
Professional Architect;
(b) in the case of the partnership, all the partners are
Professional Architects; or
(c) in the case of the body corporate, it –
(a) has a board of directors comprising persons who are
Professional Architects;
(b) has shares held by members of the board of directors
mentioned in subparagraph (i) solely or with any
other persons who are Professional Architects; and
(c) has a minimum paid-up capital which shall be an
amount to be prescribed by the Board.

SOLE PROPRIETOR
In accordance to Section 10 Architect Act 1967 (Act 117), in order to be entitled with the title of Professional Architect:
• Registered under LAM as Graduate Architect.
• Acquired at least 2 years of practical experience (104 weeks) as stated in clause 26, Architect Rule 1996.
• Passed the Part III exam by LAM.
• Registered as PAM corporate membership under PAM.
• to fill in Borang B and paid the fees to LAM in accordance to the amount as stated in clause 20, Architect Rule 1996.
• After approval, Registration Certificate will be awarded by LAM to the successful candidate in the form of Borang F.
To registered as a SOLE PROPRIETOR firm, pursuant to Section 7A of the Architects Act, 1967:
1. Must complete Borang I and pay a certain amount as set out in Rule 20 of the Rules of Architects 1996.
2. After approval, will receive a Certificate of Registration of LAM in the form of Borang L.
3. One copy of a letter from a former employer / firm confirming the completion and resigned from the firm.
4. Get license from the Jabatan Kastam & Eksais Di Raja to enable completion and imposing taxes on services that have
been made.
5. Open bank account with any Bank of Commerce
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PARTNERSHIP
To establish as partnership, followings are conditions that needs to be fulfilled :
• Shared parties must be formed by at least 2 person and above, all must be Professional Architect.
• The partnership will be protected under Partnership Act 1961 (Act 135).
• Need to provide official address in which the practice of architectural workshop is conducted
To registered as a PARTNERSHIP firm, pursuant to Section 7A of the Architects Act, 1967:
been made.

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Body Corporate
To establish Body Corparate, the conditions are:
i) Have a board of directors composed of 2 or more Professional Architects.
ii) Body Corparate, is subject to the Companies Act 1965 (Act 125).
iii) Equity capital of RM 50,000.00.
iv) registered with the Suruhanjaya Syarikat Malaysia (SSM)
v) It should be named the official address where it will carry out the architectural practice.
To registered as a body corperate firm, pursuant to Section 7A of the Architects Act, 1967:
been made.

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REGULATIONS
ON
ARCHITECTURE
PRACTICE
Under section 2(b)…
(i) the Professional Architects, Professional Engineers,
registered Quantity Surveyors, bodies corporate providing
architectural consultancy services, bodies corporate
providing professional engineering services and/or bodies
corporate practising as consulting Quantity Surveyors
hold a minimum combined share of 70% of the overall
equity of that body corporate, of which the
Professional Architects and/or bodies corporate
providing architectural consultancy services hold a
minimum share of 10%; and
(ii) any other persons, including persons belonging to a
profession allied to architecture, engineering or quantity
surveying, being a profession approved in writing by
the board regulating the profession of architecture,
engineering or quantity surveying, respectively, hold a
maximum share of 30%, of the overall equity of the body
corporate; and (c) has a minimum paid-up capital which
shall be an amount to be determined by the Minister.
CLAUSE 7B: A BODY CORPORATE PROVIDING
ARCHITECTURAL CONSULTANCY SERVICES,
PROFESSIONAL ENGINEERING SERVICES AND/OR
QUANTITY SURVEYING SERVICES

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Multi Disciplinary Practise
To establish Multi Disciplinary Practice ,the conditions are:
i) The Board of Directors is made up of a mix between The Professionals (Professional Architect (Ar.), Professional Engineer
(Ir.), registered Quantity Surveyors (Sr.), etc.) and non-professional groups. Provided that: -
Minimum 70% shareholding must be owned by a group of professionals.
Minimum 10% shareholding must be held by Professional Architects.
Maximum 30% shareholding is open to shareholders independently of whether the individual (not Professional) which
has to do with the construction industry or not.
ii) Practical Multi Disciplinary / Practice Multi Displinary is subject under the Companies Act 1965 (Act 125).
vi) minimum capital stock of RM 150,000.00.
vii) registered with the Suruhanjaya Syarikat Malaysia (SSM)
viii) It should be named the official address where it will carry out the architectural practice.
To registered as a body corperate firm, pursuant to Section 7B of the Architects Act 1967(ACT117):
1. Must complete Borang K and pay a certain amount as set out in Rule 20 of the Rules of Architects 1996.
2. After approval, will receive a Certificate of Registration of LAM in the form of Borang N.
been made.

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FORM
A B C D
INTENTI
ON
Permohonan
sebagai Arkitek
Graduan
Permohonan sebagai
Arkitek Profesional
Permohonan
sebagai Pelukis
Pelan Berdaftar
Permohonan
sementara Arkitek
Luar (Foreign Arch)
FORM
E F G H
INTENTI
ON
Sijil Perakuan
sebagai Arkitek
Graduan
Sijil Perakuan
sebagai Arkitek
Profesional
Sijil Perakuan
sebagai Pelukis
Pelan Berdaftar
Sijil Perakuan
sementara Arkitek
Luar (Foreign Arch)
FORM
I J K
INTENTI
ON
Permohonan
penubuhan firma
sole-prop atau
partnership
Permohonan
penubuhan firma
body corprate
Permohonan
penubuhan firma
multi displinary
practice
FORM
L M N
INTENTI
ON
Sijil Perakuan
firma sole-prop
atau partnership
Sijil Perakuan
sebagai penubuhan
firma body corprate
Sijil Perakuan
sebagai penubuhan
firma multi
displinary practice

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SALARIED
(MAKAN
GAJI)
SOLE-PROP
(FIRMA PERSEORANG)
PARTNERSHIP
(PERKONGSIAN)
BODY-CORPARATE
(PERT.PERBADANAN)
MULTI-DISPLINARY
PRACTICE P.P PELBAGAI
DISIPLIN.
S SECTION - S.7A S.7A S.7A S.7B
A
CANDIDATES
(Ahli)
INDIVIDU
AL
INDIVIDUAL WITH
PROFESSIONAL
ARCHITECT
CERTIFICATION FOR
BOARD
MORE THAN OR
EQUAL TO TWO
INDIVIDUALS, ALL
WITH PROFESSIONAL
ARCHITECT
CERTIFICATION FOR
BOARD
BOARD OF DIRECTORS
– all Ar.
BOARD OF DIRECTORS –
Ar,Ir @ Sr
70% members must be
professionals(cth: Ar.Sr & Ir)
With minimum 10% share must
be from the Architect.
30% Share are open to parties
that are involved in the building
industry without professional
eligibility.
T LIABILITY
(Tanggungjawab)
EMPLOYER SOLE INDIVIDUAL INVOLVING PARTIES INVOLVING PARTIES INVOLVING PARTIES
U
REVENUE
(Untung)
ANNUAL
BONUS
SOLE COMMISION SHARED COMMISSION
SHARED COMMISION
FOLLOWING SHARE
SHARED COMMISION
FOLLOWING SHARE
D REGISTRATION - LAM & PAM LAM & PAM LAM & PAM & ROC LAM & PAM & ROC
A
RELAVENT ACT
(AKTA)
- - AKTA PERKONGSIAN AKTA SYARIKAT AKTA SYARIKAT
C
TAX
(CUKAI)
SALARIED SALARIED
FOLLOWING RESPECTIVE
SHARE
AS REGULATED AS REGULATED
A ACCOUNT
NON
LEGALLY
STATED
NON LEGALLY STATED NON LEGALLY STATED
REGISTERED R.O.C
ACCOUNT
REGISTERED R.O.C
ACCOUNT
M MODEL - SELF-MODEL SHARED MODEL
SHARED MODEL WORTH
RM 50,000 /=.
SHARED MODEL WORTH
RM 100,000 /=.

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2.4 COMPANY’S ACT AND LIABILITY
1. Every person who being an undischarged bankrupt acts
as director of, or directly or indirectly takes part in or is
concerned in the management of, any corporation except
with the leave of the Court shall be guilty of an offence
against this Act.
Penalty: Imprisonment for five years or one hundred
thousand ringgit or both.
AGAIN, ON THE
DEFINITIONS
OF ARCHITECTURE
PRACTICE
WHILE COMPANY ACT 1
2. The Court shall not give leave under this section unless
notice of intention to apply therefore has been served on
the Minister and on the Official Receiver and the Minister
and the Official Receiver or either of them may be
represented at the hearing of and may oppose the
granting of the application.
Section 125. Undischarged bankrupts acting as directors.
UNDISCHARGED BANKRUPTS
'Undischarged bankrupt' is a legal term for someone who is still
going through bankruptcy and is still subject to the financial
restrictions of their bankruptcy.

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POINT TO PONDER,
WHAT
ARCHITECTURE
PRACTICE REALLY IS
ABOUT?

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CHOOSING ON APPROPRIATE FORM OF PRACTICE ALSO
DECIDED BY YOUR CAPACITIES TO HANDLE LIABILITY,
INCLUDING YOUR FINANCIAL ASSETS ,MANAGEMENT
CAPACITIES & ETHICAL CREDIBILITY IN PARTNERSHIP.

ADVANTAGES DISADVANTAGES
MAKAN GAJI
(Salaried) -Stable income
-Flexible in taking jobs
-Free of professional responsibility
-Fixed working hours
-Low wages
-Job security highly susceptible to recession
-Lower return
-Lack of freedom to choose projects
FIRMA
PERSEORANGAN
(Sole-Prop)
-Stable income
-No share of revenue
-Sole responsible party
-Efficient decision making
-Self reliant without other parties interruption
-Limited scope of work due to limited capability
-Low commission
-Full responsibility upon projects
-Lower return of investment due to smaller project size
PERKONGSIAN
(Partnership)
-Shared liability
-Shared business model
-Establishment procedure is quick and easy
-Utilize respective parties specialties to diversified
job scopes
-Shared resources
-Shared commissions
-Cease of business upon partway of partnership
-End of practice if the partner is found deceased or
bankruptcy. (COMPANY ACT)
PERT.PERBADANAN
(Body Corporate)
-Sharing model minimum RM 50k
-Bigger project scale
-More human resources
-flexibility for change of structure including members
-choice for those with long term vision for growth and
continuity as well as opportunities to with draw (upon
retirement)
- more tedious to set up. Have to have a registered co.
secretary and file in memorandum of association with
ROC per Company Act
-slow decision making process via resolution to be passed
at board meetings.
-Higher operation cost, account has to be audited yearly,
tax is based on company & individual
PP.PERLBAGAI
DISPLIN
(Multi Displinary
Practice)
•ideal for large and complex projects
•consideration among various consultancy disciplines
becomes easier
•interfacing among consultants can occur earlier
during the design phase providing better scope for
workable design
•cross fertilization of ideas among disciplines ie
design engineering cost becomes realistic
•bigger capital, financially strong and secured to
undertake complex and large project.
•the tendency for engineers to lead leader position due to
the larger volume of works available in civil,infrastructure,
utilizes, electrical projects.
•requires high volumn and turnover to sustain the practice
innovative design will be stifled due to constraints
imposed by engineering and cost factors.
•the mandatory scale of minimum fees will be forsaken in
the interest of getting bids
•difficult to dissolve in time of recession
•difficult to form because need to register with
Suruhanjaya Syarikat Malaysia(SSM)
2.5 SUMMARY
CLIENTPROCUREMENTCLIENTPROCUREMENT

2.1 POWERS TO INVESTIGATE AND
APPOINTMENT OF DISCIPLINARY COMMITTEE
15A. (1) The Board shall appoint –
(a) not more than three members of the Board to investigate any misconduct or complaint made against any
Architect, Graduate Architect, foreign architect or architectural consultancy practice; and
(b) a Disciplinary Committee comprising not more than five members of the Board, not being the members of
the Board appointed under paragraph (a), to conduct a hearing of any misconduct or complaint referred to the
Disciplinary Committee by the members of the Board appointed under paragraph (a).

(2) The Disciplinary Committee may order the issuance of a written reprimand to, the imposition of a fine not
exceeding one hundred thousand ringgit on, the suspension for a period not exceeding three years of, the
cancellation of the registration of, any Architect, Graduate Architect or foreign architect or any combination of two or
more of the aforesaid, under any of the following circumstances :
if he offers or accepts any commission which in the opinion of the Disciplinary Committee is an illicit commission;
if whilst acting in his professional capacity, he at the same time without disclosing the fact in writing to his client, is
a sole proprietor, partner, director or member of or substantial shareholder in or agent for any contracting or
manufacturing company or firm or business or has any financial interest in that company or firm or business with
which he deals on behalf of his client;
if his registration under this Act has been obtained by fraud or misrepresentation;
if he is found guilty by the Disciplinary Committee of any act or conduct which in the opinion of the Disciplinary
Committee is infamous or disgraceful;
if he fails to observe any conditions or restrictions subject to which he is registered;
if he procures, or assists in procuring, or is knowingly a party to procuring, by fraud or misrepresentation the approval
of the Board for a sole proprietorship, partnership or body corporate to be registered as an architectural consultancy
practice;
if he conceals or assists in concealing from the Board or the Disciplinary Committee the existence of any fact or
circumstances which, if known, would entitle the Disciplinary Committee to cancel the registration of a sole
proprietorship, partnership or body corporate, in which he is a sole proprietor, partner, director or shareholder, as an
architectural consultancy practice;
if he contravenes, or fails to perform, or assists in the contravention of, any term, condition or restriction
imposed by the Board when registering a sole proprietorship, partnership or body corporate as an architectural
consultancy practice under section 7B or subsection 7A(3);

if he causes or permits or suffers any sole proprietorship, partnership or body corporate in which he is a sole
proprietor, partner, director or shareholder to practise as an architectural consultancy practice prior to its
registration by the Board;
if he causes or permits or suffers any architectural consultancy practice in which he is a sole proprietor, partner,
director or shareholder to continue to practise as an architectural consultancy practice after the Disciplinary
Committee has suspended or cancelled its registration under paragraph 7A(5)(cc) or (dd), respectively;
if he is convicted of any offence, including offences involving false or negligent certification, fraud, dishonesty or
moral turpitude in Malaysia or elsewhere;
if his qualification under section 10 has been withdrawn or cancelled by the Authority through which it was acquired
or by which it was awarded;
if he is found to be of unsound mind;
if he becomes a bankrupt; or
if he is found to be incapable or no longer able to perform his professional duties effectively.

(3) The Disciplinary Committee shall not make any order under subsection (2), based upon any of the circumstances
set out in paragraphs (a) to (k) or paragraph (2)(p) of subsection (2), unless an opportunity of being heard either
personally or by counsel has been given to the Architect, Graduate Architect or foreign architect against whom the
Disciplinary Committee intends to make the order.
(4) The members of the Board appointed under paragraph (1)(a) may, for the purpose of an investigation –
a) require any person, including a sole proprietor, partner, director, manager, secretary or employee, to attend before
him and give evidence on oath or affirmation, and those members of the Board may administer the oath; and
b) require such person to produce any book, document or paper relating to the subject matter of the investigation
which is in the custody of that person or under his control.
(5) Upon completion of his investigation, the members of the Board appointed under paragraph (1)(a) shall submit a
report together with his recommendations, if any, to the Disciplinary Committee for its consideration.
(6) A person, including a sole proprietor, partner, director, manager, secretary or employee, shall, unless with reasonable
excuse –
a) attend and give evidence when required to do so;
b) answer truthfully and fully any question put to him in connection with the investigation; or
c) produce any book, document or paper required of him, by members of the Board appointed under paragraph (1)(a).

2.2 REMOVAL FROM REGISTER OF ARCHITECTS,
ETC.
16. There shall be removed from the Register the name and other particulars of –
a) any Architect, Graduate Architect or foreign architect who has died, or architectural consultancy practice which has
ceased to practise;
b) any Architect, Graduate Architect, foreign architect or architectural consultancy practice who has failed to renew
his or its registration within one month of the expiry of the registration;
c) any Architect, Graduate Architect or foreign architect whose registration has been cancelled under section 34A or
subsection 15A(2), or architectural consultancy practice whose registration has been cancelled under section 34A,
subsection 7B(3) or paragraph 7A(5)(dd); or
d) any Architect, Graduate Architect, foreign architect or architectural consultancy practice whose registration has
been effected by reason of any mistake or error made by the Board in considering his or its application for
registration.

2.3 REINSTATEMENT INTO REGISTER OF
ARCHITECTS, etc
17. (1) Any Architect, Graduate Architect, foreign architect or architectural consultancy practice whose name has been
removed from the Register of Architects, Graduate Architects, foreign architects and architectural consultancy practices
pursuant to an order of the Board or the Disciplinary Committee shall, if his or its appeal is allowed, forthwith be
reinstated and the Registrar shall issue a certificate of registration to him or it.
(2) Any Architect, Graduate Architect, foreign architect or architectural consultancy practice whose name has been
for failure to renew his or its registration shall be reinstated as soon as may be after he or it has notified the Registrar,
within five years of such removal, of his or its desire to be reinstated and upon payment of such fees as may be
prescribed, and upon satisfying such conditions as may be imposed by the Board, and the Registrar shall issue a
certificate of registration to him or it.
(3) Any Architect, Graduate Architect, foreign architect or architectural consultancy practice whose name has been
pursuant to an order of the Board or the Disciplinary Committee and who has not appealed against that order or whose
appeal has been dismissed may after the expiration of not less than two years from the date of the order of
cancellation or from the date of the decision of the appeal apply for reinstatement. The Board upon receipt of
satisfactory evidence of proper reasons for his or its reinstatement and upon reimbursement to it of all
expenditure incurred by it arising out of the proceedings leading to cancellation of his or its registration and upon
payment of the prescribed fee, shall issue a certificate of registration to him or it.

2.4 CERTIFICATES OF REGISTRATION OF
ARCHITECTS, etc. to be returned
18. Any Architect, Graduate Architect, foreign architect or architectural consultancy practice whose name is removed
from the Register of Architects, Graduate Architects, foreign architects and architectural consultancy practices shall
within fourteen days after notification to him or it by registered post of the removal, surrender to the Board the
certificate of registration issued to him or it under this Act.

2.0 OFFENCES
Essential services for Issuance of CCC
1. Electric supply (TNB)
2. Water supply (water authorities)
3. Sewerage treatment plant or mains (JPP)
4. Lift and machinery departments (JKKP) <if relevant>
5. Fire fighting and safety (BOMBA)
6. Road & Drainage (JKR)

2.0 OFFENCES
The Amendment Act has introduced the following new offences and penalties:
• Not a PSP but issues a CCC;
• Issues CCC without forms (relevant forms under by-laws);
• Issues CCC despite direction to withhold -- in contravention to direction of LA to withhold
issuance;
• False/fraudulent declaration: Knowingly makes/produces/causes to be made any false or
fraudulent declaration, certificate, application or any form under by-laws knowing it/they have
been forged, altered or counterfeited;
• Use knowingly: Uses the above form knowing it/they have been forged, altered or
counterfeited;
• Occupation without CCC: Occupies or permits to be occupied any building or part thereof
without a CCC (This has a wide-ranging effect as it can cover purchasers, tenants, occupiers,
owners, trustees, etc);
Liable on conviction to fine not more than RM250,000 or imprisonment not more than 10 years or both; and Increased general penalty:
The penalty for the offence of not abiding by the orders of the LA is increased and includes imprisonment for term not exceeding three
years and a fine of up to RM10,000.

2.0 OFFENCES
Appellants Loh & Loh Architects
Respondents Purchasers of industrial buildings under Merger Acceptance Sdn. Bhd.
Project involved Project Skim Bangunan Industri Ringan Bersepadu Pencemaran Bebas, Penang
Reason of Being Sued Professional negligence, causing the delay of the project for 8 years (could be lawfully occupy the
industrial buildings) which incurred financial loss
Facts of the case LA approved plan on 1994 – road and drainage carried out not in accordance with approved
original layout plan – carry out in accordance to project engineer's plan prepared by engineer
and approved by LA – should have consent of neighboring landowners (encroachment of land) –
one owner refuse to give consent – new layout submitted on 1997 and approved in 1999 – waste
water treatment system did not function according to the satisfaction of the DOE – without DOE
approval, architect refuse to apply CFO – resign as architect on 2005
Law & Act involved 1. Architect rule
2. Company act 1965
3. SPA
4. Environmental Quality (Industrial effluent and discharge) regulations 1979
Court Finding Appellants liable in negligence for 50%
- In preparation of the original layout plan suc that the original plan had to be amended
- Refusal of architect to apply for CFOs
Crucial issue Is there a duty of care owed by the defendants to the plaintiffs (resp)

34
ARCHITECT RULES
CODE OF CONDUCT, SERVICES, THIRD SCHEDULE
3.0

1. Advice client the need for other consultants
to be engaged for any part of the project.
2. Paid by client
48
3.4 THIRD SCHEDULES
CLIENT
CONDITION OF ENGAGEMENT OF A
PROFESSIONAL ARCHITECTS
 Provide architectural consultancy service in corporate in the
memorandum of agreement between the professional architect and
client
 Architect (scale minimum of fees) rules 1986
 Remunerated solely by fees payable by the client for architectural
consultancy services by him
PROFESSIONAL ARCH
PROFESSIONAL
ARCHITECT WHO
CARRY ON
BUSINESS AS AN
ARCHITECTURAL
CONSULTANCY ENGAGEMENT CONSULTANTS
BY
1. Engaged his own consultant if it is agreed by
client
2. Paid by Professional Architect.
1. Professional Architect coordinate the
consultants engaged by himself or client.
2. Professional Architect liable for his engaged
consultants by not liable for consultants
engaged by clients.

49
3.4 THIRD SCHEDULES
 IF NOT obtain within the period, but
client agrees by his conduct the
conditions of engagement and the
scale of min. fee and charge, the
CLIENT BE CONSIDERED TO HAVE
AGREE
CLIENTS AGREEMENT
1. VO are statutory requirements or necessitated for SAFETY REASONS
2. Client is INFORMED IN WRITING of the action taken as soon as
practicable
3. Variation works is within an amount that has BEEN PRE-AGREED.
VARIATION ORDER NOT ISSUED VO WITHOUT PRIOR APPROVAL
UNLESS:
 Professional Architect
shall obtain the written
agreement of client
within 60 DAYS from
the date of notification
INSPECTION OF WORK INSPECT THE WORKS AT PERIODIC INTERVAL
1. Recommend client to employ a clerk of works, resident Architect, or
other personnel (paid by client)
2. If the client agrees, second to the work personnel under the Professional
Architect shall be reimbursed on the basis of time costs multiplied by a
multiplier as agreed between him and the client.
ESTIMATION
OF COST AND
TIME
KEEP THE CLIENT INFORMED OF ANY
MATERIAL CHANGES IN ESTIMATION OF
COST AND TIME

3.4 THIRD SCHEDULES
SUSPENSION OF
ARCHITECTURAL
CONSULTANCY
PRACTICE
IF CLIENT FAILS TO PAY THE FESS CLAIMED
PROVID
E ALL
INFORM
ATION
AUTHORIZED
REPRESENT
ATIVE
INSTRUCT BUILDING
CONTRACTOR
THROUGH
PROFESSIONAL
ARCHITECT
GIVE PROMPT
DECISION
WITHIN
REASONABLE
TIME
PAY SUBMISSION
FEES AND
CHARGES FOR
APPROVAL
TERMINATION OF
ENGAGEMENT
TERMINATED BY ANY TIME BY EITHER
PARTY SERVING UPON THE OTHER
PARTY A NOTICE OF TERMINATION
EFFECT AFTER A 60 DAYS FROM THE
DATE OF WRITTEN NOTICED OR
SHORTER DAYS AS AGREED BY BOTH
CLIENT

3.4 THIRD SCHEDULES
PROFESSIONAL
ARCHITECT TO
SUBMIT
ACCOUNTS
NOT LATER THAN 30 DAYS FROM THE
DATE OF TERMINATION OF THE
MEMORANDUM OF AGREEMENT
APPOINTMENT
FOR ANOTHER
PROFESSIONAL
ARCHITECT
PROFESSIONAL ARCHITECT SHALL
ISSUED A LETTER OF RELEASE TO
CLIENT
COPYRIGHT IN
RESPECT OF
WORKS
EXECUTED BY
THE
PROFESSIONAL
ARCHITECT
SECTION 14 OF THE COPYRIGHT ACT
1987
PROPERTY OF PROFESSIONAL
ARCHITECT
ENTITLEMENT
TO DOCUMENTS
CLIENT SHALL ENTITLED TO REPRODUCE
THE DESIGN FOR THE PURPOSE OF
IMPLEMENTING THE PROJECT
• Provided the project is on the site on which the design was originally
prepared.
• Be applicable to the maintenance, repair, renewal, reinstatement or
modification of the project.

3.4 THIRD SCHEDULES
MEDIATION PARTIES MAY REFER THEIR DISPUTE
FOR MEDIATION ACCORDING TO THE
GUIDELINES OR CIRCULARS ISSUEED
BY BOARD
ABITRATION IN THE EVENT OF ANY DISPUTE
• Either party shall give a notice in writing to the other party
• Appoint an arbitrator within 14 days from the date of notice
• If not, must submit a written request to the President of Board to
appoint arbitrator
DEATH OR
INCAPACITY OF
PROFESSIONAL
ARCHITECT
THE ENGAGEMENT IS TERMINATED
THE CLIENT
• On payment of all outstanding fees an other dues
• Make use of all drawing and document
DELIVERY OF
DOCUMENTS
UPON
TERMINATION
UPON THE TERMINATION AND FULL
SETTLEMENT, PROFESSIONAL
ARCHITECT SHALL DELIVER TO THE
CLIENT
• Drawing, specification, and other documents related to the project

MBES1073 CURRENT ISSUES IN
ARCHITECTURAL THEORY & URBAN DESIGN
53
Appellants Hamzah, TR and Yeang Sdn. Bhd.
Respondents Lazar Sdn. Bhd. (1985) 2 MLJ 45
Project involved 27-storey office building at Jalan Ampang, Kuala Lumpur
Reason of Sue Outstanding by professional fees of RM 514,000.00
Facts of the case While approval of the plans by the planning authority was still pending, the architects sued for
their outstanding by professional fees of RM 514,000.00 and refused to give a letter of release
permitting another architect to take over their plans.
2. Scale of Minimum Fees
Court Finding The architects services were not terminated by the client. Neither was the project abandoned.
The architect just left and claimed his fees.
The court would not allow the architect to hold letter of release.
To do so would in the words of Widgery CJ in Blair v Osborne and Tomkins 1971, mean “that the
architect can hold the client to ransom”.
The appeal dismissed.
Analysis Architect terminated his services after sued the employer. Breach of Contract by the Architect
because under the agreement of professional services they are obliged to deliver the service
until completion. (Scale of Minimum Fees). This can be referred to Clause 1 (1), (2) and (3) under
Conditions of Engagement of a Professional Architect. (Architect Rules 1996)
3.5 CASES OF TERMINATION OF ARCHITECT’S
ENGAGEMENT IN MALAYSIA

54
3.5 CASES OF TERMINATION OF ARCHITECT’S
ENGAGEMENT IN MALAYSIAAppellants Akitek Tenggara Sdn. Bhd.
Respondents Mid Valley City Sdn. Bhd. (1999)
Reason of Sue • The plaintiff architect was discharge as the architect of the project by the employer because he
wants to utilize the services of its own architect.
• The employer also stating that the reason is the project had been aborted.
• Plaintiff argued that his services cannot be terminated unless there was a breach of the terms
of the agreement and will liable for damages.
Facts of the case Since it had been admitted that the plaintiff’s services were terminated not because the project
was aborted, but because the client wanted to use its own architect.
Court Finding The plaintiff was entitled to sue for all sums due at the time of the breach and for the loss of
profits on the work lost by reasons of the breach.
Analysis Client is breach of contract by terminating architect services. Therefore architect were entitled
to claim any sum due at the time of the breach and to claim damages.

55

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