International Construction Law Review
IS IT THE CORRECT TIME FOR AN ASEAN STANDARD FORM OF BUILDING AND CONSTRUCTION CONTRACT?
DR PHILIP CHAN CHUEN FYE
Associate Professor, Department of Building, School of Design and Environment, National University of Singapore
AND
ASANGA GUNAWANSA
Assistant Professor, Department of Building, School of Design and Environment, National University of Singapore
Abstract
Since the articulation of the ASEAN Vision 2020 in 1997 and the adoption of the Hanoi Plan of Action (HPA) in 1998, ASEAN is focusing on a systematic process of development through co-operation planning, programme implementation and adopting region-wide standards. As noted during the recently concluded 21st ASEAN Free Trade Area (AFTA) Council Ministerial Meeting, progress has been made in developing an ASEAN monitoring system for the effective implementation of the ASEAN Policy Guideline on Standard and Conformance endorsed in 2005, as well as the development of the “ASEAN Conformity Mark” that would facilitate the free movement of goods within the region.
So far as the construction industry in the region is concerned, the decline of trade restrictions has facilitated the free movement of construction- related goods, services, knowledge, investments and staff between member countries. Further, large construction and architect/engineering firms have begun to compete in the regional market for construction projects outside of their national boundaries. One significant impediment to the efficiency and effectiveness of such firms when bidding for projects outside their national jurisdictions would be unfamiliarity with local regulations, practices and standard contracts in the base countries of the projects.
Whilst a complete harmonisation of construction law in the region, which would require that member states reach compromises on several points of law that go to the roots of the private law of each legal system, may be difficult, given the diverse legal traditions in use in the region, adoption of a standard form of building and construction contract would be a step in the right direction. The idea of a region-wide standard form of building and construction contract is tested in this paper for its advantages. In the analysis, key issues in relation to construction projects in the region are addressed and considered for adoption. It is proposed that now is the time
Pt 4] An ASEAN Standard Form of Contract?
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