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