Application of electronic communication in Malaysian standard form of contract

Abstract

Communication technology is changing over the years and becoming more efficient in terms of deliverance. Today, electronic communications have a significant impact not only in everyday life but also in construction industry, The nature of construction contracts that entails a lot of information and personnel requires a voluminous exchange of information using electronic communication as the main medium. However, caution should be exercised to identify the proper method or channel of communication in executing any contract to avoid any instructions rendered null and void. In Malaysia, there are numerous types of standard forms of construction contracts available for use in the construction industry, such as PWD 203A and PAM standard form of contracts. Under these standard forms of construction contracts, only PAM contract contains clauses specifying the means of communicating notice. If a party was given an instruction in electronic communication, would the instruction be considered valid? Therefore, this research is carried out to identify the validity of application of electronic communication in construction contracts. This research is also aimed at ascertaining the types of electronic communication format which are acceptable and applicable in construction contracts. This research is basically a descriptive research and the methodology used is essentially based on case law analysis and review retrieved from Lexis Nexis and the internet database. All the cases cited in this research involved construction contracts, The analysis would reveal the admissibility and type of electronic communication in construction contracts, which are email, Short Messaging Service (SMS) and electronic storage document.