An approach to manage termination due to national interest in clause 52.0 OF public work department form 203A (REV.1/2010).

Abstract

National Interest has never been defined clearly in the construction contract and construction industry. Perhaps, it was never discussed before. As the development surrounding and political waves are unpredictable, it is crucial to complete these studies to fill the knowledge gap. As stated clearly in Clause 52.1 (a) and (b) of the PWD Form 203A (Rev.1/2010), a government as the employer can terminate the construction contract due to National Interest. Hence, the objectives of this study are to determine what is National Interest in the termination of a government contract and also to identify a new approach to managing the termination of contractors by the Government due to National Interest in Malaysia under Clause 52.1 (a) and (b) of the PWD Form 203A (Rev.1/2010). This basic research applies the qualitative method by selecting 6 respondents based on their role, participation in the construction industry, and experience concerning construction contracts, particularly with PWD Form 203A (Rev.1/2010). Therefore through the interviews sessions conducted, it can be concluded that the government may utilize any of the suggested approaches before the termination takes place to ensure the termination due to the national interest is made fairly without any political and unnecessary intervention, which can lead to speculation made by the public and international media, that may affect the economic growth shall not be misuse or manipulate to ensure fairness and justice to all key players in the construction industry.