TABLE OF CONTENTS CHAPTER TITLE PAGE DECLARATION ............................................................................................ ii DEDICATION ............................................................................................... iii ACKNOWLEGDEMENT ............................................................................ iv ABSTRACT .................................................................................................... v ABSTRAK...................................................................................................... vi TABLE OF CONTENTS ............................................................................. vii LIST OF CASES ........................................................................................... xi LIST OF TABLES ....................................................................................... xii LIST OF FIGURES .................................................................................... xiii LIST OF ABBREVIATIONS ..................................................................... xiv 1 INTRODUCTION ........................................................................................... 1 1.0 Background Study ........................................................................................... 1 1.1 State of the Problems ...................................................................................... 2 1.2 Objectives of the Study ................................................................................... 4 1.3 Scope of Study ................................................................................................ 5 1.4 Research Methodology.................................................................................... 5 1.4.1 Identify Problems .................................................................................... 5 1.4.2 Literature Review .................................................................................... 6 1.4.3 Determines Objectives ............................................................................ 6 viii 1.4.4 Data Collection........................................................................................ 6 1.4.5 Data Analysis .......................................................................................... 7 1.4.6 Conclusion and Suggestion ..................................................................... 7 2 DOCTRINE OF PRIVITY ............................................................................. 9 2.1 Introduction ..................................................................................................... 9 2.2 Rules of Doctrine of Privity .......................................................................... 12 2.3 Sanctity of Doctrine of Privity ...................................................................... 12 2.4 The Rationale of Doctrine of Privity............................................................. 16 2.4.1 Contract as private transaction .............................................................. 16 2.4.2 Protection to the contracting parties and third party ............................. 16 2.5 The Recognition of Doctrine of Privity in Contract Act 1950 ...................... 17 2.6 Contract and Sub-Contract ............................................................................ 18 2.6.1 Contracting ............................................................................................ 18 2.6.2 Sub-Contracting .................................................................................... 19 2.6.3 Who is a third party? ............................................................................. 20 2.6.4 The Essential of Sub-Contract and Employer’s Liability in Subcontracting ............................................................................................ 21 2.6.5 Main Contractor’s Rights for Sub-Contracting ..................................... 22 2.6.6 Why Sub-Contract? ............................................................................... 23 2.6.7 Main Contractor’s Right to Refuse Nominated Sub-Contractor ........... 24 2.7 Payment Obligations in Sub-contracting ...................................................... 24 2.8 Conclusion .................................................................................................... 30 ix 3 DATA COLLECTION ............................................................................... 31 3.1 Introduction ................................................................................................... 31 3.2 Data Collection Sources ................................................................................ 31 3.3 Data Collection Methods............................................................................... 32 3.4 Data Collection Process ................................................................................ 32 3.5 Data Collection Results ................................................................................. 33 3.5.1 First Selection: Doctrine of Privity and Construction Contract and Building ………………………………………………………………33 3.5.2 Second selection: Doctrine of Privity and Construction Contract and Sub-Contractor ...................................................................................... 34 3.5.3 Third selection: Doctrine of Privity and Construction and SubContractor ............................................................................................. 34 3.6 Data Collection Summary ............................................................................. 37 3.7 Advantages and Disadvantages of Online Database ..................................... 39 3.8 Conclusion .................................................................................................... 40 4 DATA ANALYSIS ....................................................................................... 41 4.1 Introduction ................................................................................................... 41 4.2 Data Analysis ................................................................................................ 41 4.3 Conclusion .................................................................................................... 51 x 5 SUGGESTIONS AND CONCLUSION ..................................................... 53 5.1 Introduction ................................................................................................... 53 5.2 Suggestions ................................................................................................... 54 5.3 Conclusion .................................................................................................... 54 REFERENCE .................................................................................................................. 57 APPENDICES ................................................................................................................. 59 Appendix A – List of identified cases ..................................................................... 59 Appendix B –Summary of identified cases ............................................................. 61 LIST OF CASES A Davies & Co (Shopfitters) Ltd. v. William Old Ltd ..................................................... 28 Artic Building and Civil Engineering Sdn. Bhd. v Ahmad Zaki Sdn. Bhd. & Ors .......... 35 Beswick v Beswick ........................................................................................................... 14 Bourne v. Mason ............................................................................................................... 10 David Wong Hon Leong v Noorazman bin Adnan [1995] 4 CLJ 155 ............................. 43 Dunlop Pneumatic Tyre Company Limited v Selfridge & Co. Limited ............................. 9 Dutton v. Poole ................................................................................................................. 10 Edgar Joseph Jr. J in Tan Cheng Hock v Chan Thean Soo ............................................... 43 ESPL (M) Sdn. Bhd. v Radio & General Engineering Sdn. Bhd...................................... 35 Globe Engineering Sdn. Bhd. v. Bina Jati Sdn. Bhd ........................................................ 28 Homburg Houtimport BV v Agrosin Private Ltd. And others; The Starsin. .................... 35 KM Quarry Sdn Bhd v Ho Hup Construction Co. Bhd .................................................... 35 Martyn v. Hind .................................................................................................................. 10 Matang Integrated Sdn. Bhd. v Usahasama SPNB-L TAT Sdn. Bhd. .............................. 35 Mersing Construction & Engineering Sdn. Bhd. v Kejuruteraan Bintai Kindenko Sdn. Bhd. & 3 Ors. ................................................................................................................ 35 Nisshin Shipping Co. Ltd. v Cleaves & Co. Ltd and others ............................................. 35 PB Malaysia Sdn. Bhd. v Samudra (M) Sdn. Bhd. ..................................................... 33, 34 Provender v. Wood............................................................................................................ 10 Ramco (UK) Ltd. And another v International Insurance Company of Hanover ............. 35 Rolls-Royce Power Engineering plc and another v Ricardo Consulting Engineers Ltd ... 35 Sandeman Coprimar Sa v Transitor y Transportes Integrales SL and others ................... 35 Tesco Stores Ltd. v Costain Construction Ltd. and others ................................................ 34 Tweddle v Atkinson .......................................................................................................... 10 Whitesea Shipping and Trading Corporation and another v El Paso Rio Clara Ltd and others ............................................................................................................................. 35 Wiedemann v Walpole [1891] 2 Q.B. 534, 537 ................................................................ 43 Wong Kim Wah v. The Government of The State of Pahang & Anor ............................. 44 LIST OF TABLES Table1: List of Identified Case (1st selection) ................................................................... 59 Table 2: List of Identified Case (2nd selection) ................................................................. 59 Table 3: List of Identified Case (3rd selection).................................................................. 60 LIST OF FIGURES Figure 1: Research Methodology Flowchart ...................................................................... 8 Figure 2: Tweddle’s case (1861) ....................................................................................... 13 Figure 3: Dunlop Pneumatic Tyre Company Ltd’s case (1915) ....................................... 14 Figure 4: Beswick’s case (1967) ....................................................................................... 15 Figure 5: Case distribution (Malaysia & UK) ................................................................... 38 Figure 6: Case distribution (Malaysia) .............................................................................. 39 Figure 7: Case distribution (UK)....................................................................................... 39 xiv LIST OF ABBREVIATIONS CA - Court of Appeal CMR - Convention on the Contract for the International Carriage of Goods by Road (CMR) HL - House of Lord MLJ - Malayan Law Journal PAM - Pertubuhan Arkitek Malaysia PWD - Public Work Department UTM - Universiti Teknologi Malaysia QBD - Queen’s Bench Division