BNB 31103 FOC WEEK 1 ASSIGNMENT

CONTENT

1.0 Introduction

1.1 Certificate of Fitness for Occupation (CFO) 1

1.2 The Certificate of Completion and Compliance (CCC) 1-2
2.0 Parties Involved 3
2.1 Certificate of Fitness for Occupation (CFO) System 3
2.2 Certificate of Completion and Compliance System (CCC) 3-4
2.2.1 The Professionals Responsible for the Issuance of CCC 4
2.2.2 Approval of Planning Permission and Building Plan 4
2.2.3 Technical and Non-Technical Conditions 4-5
3.0 Reasons of Establishment 6
4.0 Differences Between CCC and CFO 7
5.0 Benefits of The CCC 8
6.0 Conclusion 9
7.0 References 10

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1.0 INTRODUCTION

Building certification is one of the branches of the building control where it is a document of
certificate issued by the parties to confirm that a building constructed regardless of whether
new, additional buildings or the like have been eligible to be used or occupied. Referring to
the provisions of section 70, the Street, Drainage and Building Act 1974 (Act 133) if a project
is to be implemented, it must obtain prior approval from the DO authority of local authorities.
After the DO is obtained, the developer will submit building plans to the local authorities for
approval before any construction work undertaken construction site. Finally, after all the on-
site construction work was completed in accordance with the conditions of approval and the
provisions of the law, then the developer must apply for a certificate of building certificates
from local authorities to enable the purchaser or owner of the building to occupy the building.
The above process is a process of building control that must be adhered to by the parties that
want to execute a construction project to safeguard the interests of the buyer. This to ensure
that the buyer not to purchase the building that is not perfect and does not comply with the
rules and regulations

1.1 Certificate of Fitness for Occupation (CFO)

According to the legal dictionary, Certificate of Fitness for Occupation (CFO) is a document
issued by a Local Authority (LA) to the owner of premises attesting that the premises have
been built and maintained according to the provisions of building regulations. It is an
evidence that the building complies substantially with the plans and specifications that have
been submitted to, and approved by, the local authority. It complements a building permit – a
document that must be filed by the applicant with the local authority before construction to
indicate that the proposed construction will adhere to zoning laws. The procedure and
requirements for the certificate vary widely from jurisdiction to jurisdiction and on the type
of structure.

Uniform Building By-Laws (UBBL) 1984 states that final certificate issued under by-
law 25 for Certificate of Fitness for Occupation (CFO), CFO shall be given when a qualified
person during the course of work have certified in Form E (Second Schedule) that they have
supervised the erection of building and accept full responsibility for those portions which
they are respectively concerned with and local authority authorized by it in writing for the
purpose that the building has been inspected.

1.2 The Certificate of Completion and Compliance (CCC)

CCC system was launched on 12 April 2007, to replace the Certificate of Fitness for
Occupation (CFO) issued by the local authorities under the Street, Drainage and Building Act
1974 (“SDBA”).The CCC is issued by a principal submitting person (“PSP”) who is defined

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in SDBA as a Professional Architect, Professional Engineer or building draughtsman

registered with the Board of Architects Malaysia (LAM). This new change was a move
towards self-certification and self-regulation in the construction industry. It is the
Government’s view that CCC will cut down on red-tape and ensure that house buyers and
building owners can move in as quickly as possible without compromising their safety. The
Qualified person shall forward copy of certificate of completion and compliance in Form F
(Second Schedule) to authority and Boards of Architects Malaysia (LAM).

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2.0 PARTIES INVOLVED

2.1 Certificate of Fitness for Occupation (CFO) System

The Certificate of Fitness for Occupation (CFO), an official document issued by the
LA to acknowledge that a certain building is safe to be occupied. CFOs are issued to ensure
that every house built conforms to the various prerequisites, approved layout and building
plans and the by-laws.
According to the Uniform Building By-laws 1994 (UBBL), no one can occupy or be allowed
to occupy any part of a building unless a CFO or a temporary CFO has been issued. This is to
make sure that owners do not move into houses that are unfit for human occupation.
At the beginning of the development process, even before the local council approves the
building plans, the latter have to be channelled to the following technical departments for
scrutiny, such as:

 Jabatan Kerja Raya (Public Works Department)

 Jabatan Bomba dan Penyelamat (Fire and Rescue)
 Indah Water Konsortium
 Jabatan Perairan & Saliran (Drainage & Irrigation)
 Tenaga Nasional Bhd
 Jabatan Kesihatan (Health Department)
 Jabatan Bekalan Air (Water Supply Department)

According to the Wang (1987), the local council whilst processing the building plans awaits
the approval of the various plans by the various relevant departments. When all such the
Acts/By-laws/Regulations, or by way of granting waivers to some specific areas that do not
comply to the Acts/By-laws/Regulations due to acceptable reasons, the building plans can
thus be approved. Normally one or more correction notices are sent by the Building
Department to the applicant for the necessary corrections. The process usually takes a
considerable period of time to complete.
After the other requirements and formalities have been fulfilled, the developer/contractor then
proceeds to build the houses. A registered architect supervises the building process. He also
certifies the various stages of construction to the developer. So, the developer can pay the
interim payment to the contractor.

2.2 Certificate of Completion and Compliance System (CCC)

LAs transfer the responsibility to professionals. The professionals that can issue the CCC are
architects, engineers and building draftsman. It looks for, cut red tape or bureaucracy in local
government, enhance the efficiency of the public delivery system and provide better

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protection for house buyers. The CCC applies to new projects after the enforcement date
while the project commenced before the enforcement date will still be issued with CFOs.
Under CCC Issuance System, Development Order approval process and building plan
approval process are still required. Development Order must obtain from the LA before the
construction of the building is commenced. Besides, the building plan must approved by the
all relevant technical agencies before the construction is commenced.

2.2.1 The Professionals Responsible for the Issuance of CCC

 The CCC will be issued by the Professional Architect or Professional Engineer who is
registered with the respective Board of Architects Malaysia (BAM) or Board of Engineers
Malaysia (BEM) acting in the capacity of PSP.
 For buildings which require intensive design input, the Professional Architect will
function as the PSP while the Professional Engineer will be the PSP for the projects with
high engineering input in nature.
 For the bungalows which do not exceed 2 floors in height and 300 square metres in total
built up floor area, a registered Building Draughtsman may perform the role of PSP and
issue the CCC.
 The CCC can only be issued when all parties concerned are satisfied that the building
construction have been supervised and completed in full compliance with the provisions
of the law and technical conditions as imposed by the LA in approving the Planning
Permission and Building Plan.

2.2.2 Approval of Planning Permission and Building Plan

 Under CCC, Planning Permission and Building Plan are still required for submission and
approval by the LA.
 While PSP’s major responsibility is to submit Building Plan, other plans can be submitted
by the SP, that is either the Professional Architect or Professional Engineer.

2.2.3 Technical and Non-Technical Conditions

 PSP is responsible for ensuring the compliance to the technical conditions imposed by the
LA as the technical conditions are directly related to the safety and stability of the
building being erected and in fact, within the control of the professionals. While the
owner or the developer is fully responsible for the non-technical conditions.
 Technical conditions are classified into 3 categories:-

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1. The technical conditions within the building that relate to the health and
safety aspects of the building
2. The technical conditions outside the building but within the development
area that relate directly to the building and development i.e. elements of
open spaces with landscaping and recreational facilities
3. The technical conditions outside the project area that are linked directly to
the related development, i.e. the access road and utility infrastructure that
are outside the project area

 Besides the technical requirements and building specifications that are enforceable by the
provisions of existing laws and regulations, the LA also impose non-technical conditions
to implement the policies of the State Government in fulfilling certain socio-economic
development needs. Example of conditions usually imposed by the LA would include:-

1. The construction of low-cost houses in mixed housing development;

2. The bumiputera quota in the development
3. The developer’s financial contribution for the provision of social facilities

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3.0 REASON FOR ESTABLISHMENT

The objective of Government control on issuance of CFO is to ensure the regulating of

standard of building including fire-prevention, provision of services, the standard of roads,
drain and lighting. So the construction of building can be carried out in a systematic and
orderly method.
Yet on the other hand, in the process of issuance of CFO, it has imposed institutional rigidity
and created procedural formality and red-tape, thus resulting in delay. On the question of
discretionary power provided under the statutes, this can also go to extremities in freely
exercising discretion or unwillingness to use discretion. In either case, it is not beneficial to
the building process.
However, the CFO system was overly cumbersome, time-consuming and subject to abuse. It
was not unusual for inordinate delays to occur due to many factors including:

 Noncompliance by the developer for the submission of Form E and its enclosures to
the LA.
 Additional conditions imposed by the LA at the time of application of CFO.
 The involvement of many technical agencies and the lack of technical officers to
process the CFO.
 Purchasers of properties encounter numerous problems whenever vacant possession is
delivered to them by developers and the purchasers could not occupy or renovate their
properties because the CFO was not issued.

So, to solve the problems, government launched CC as this new system is an effort towards
self-certification and self-regulation approach in the construction industry.

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4.0 DIFFERENCES BETWEEN CFO AND CCC

Certificate of Fitness For Occupation Certificate of Completion and Compliance

(CFO) (CCC)

Issued by the Local Authority (LA) Issued by PSP

The PSP can issue the CCC immediately Once satisfied with the construction, the
after he is satisfied that the construction has Submitting Person submitted an application
fully complied with the provisions of the law to the LA for verification and for on-site
and the technical conditions imposed inspection before the CFO could be issued.
delays as the involvement of many technical The CCC certification can now be issued
agencies and the lack of technical officers to simultaneously with the issuance of the
process the CFO. Notice of Vacant Possession (VP). This will
alleviate problems where a buyer is unable to
occupy the house even though in possession
of the keys.

Not introduced with matrix responsibility Introduced with matrix responsibility concept
concept

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5.0 BENEFITS OF CCC

The CCC certification can now be issued simultaneously with the issuance of the Notice of
Vacant Possession (VP). This will alleviate problems where a buyer is unable to occupy the
house even though in possession of the keys.

With the introduction of the matrix of responsibility concept, the elements of

accountability and integrity will be further enhanced whereby action can now be taken
against those responsible in the event of failures or defects to the building. As such, the
quality of building works is expected to be improved. Even if the Professional Architect who
functions as the PSP dies or cannot be traced after the CCC issued, the responsibility for the
building structure that is being erected remains with the Professional Engineer. This element
of check and balance will assist in minimizing the risk or implication that arises in the event
that the PSP dies or cannot be traced after the CCC is issued.

To ensure continuous responsibility by the concerned parties, the new certification

system also introduces an improved control process on all the parties involved in the building
construction under the Stage Certification process which is based on the principle of Matrix
of Responsibility. Under this concept, every building component is placed under the
responsibility of the professionals, contractor or trade contractors. This essentially means that
even though the PSP is responsible for the overall construction of the building, the other
parties are also held responsible in their respective areas of work on the building. To cite an
example, the responsibility for structural works rests with the Engineer as well as the
contractor that carries out the work.

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CONCLUSION

Building certification was important in terms of safety for future building occupants. A
building that has been obtaining certification indicates that the building was fit for use and
occupation. As such, the government in providing the best service besides protecting the
interests of the public, the CCC method was introduced. All parties involved either directly or
indirectly should know their role in providing the best service. This is because if there are
those who ignore their responsibilities and building certificates issued without compliance
with approval conditions can have adverse effects on quality and safety of building. The
literature review also showed that foreign countries are also very concerned about
certification of every building constructed. This can be seen when the action is on the PSP
that fail to discharge their duties properly, including the action interesting issue certificates of
building licenses granted. There was a significant difference between the responsibilities of
the PSP in the countries that use the PSP (professionals) to issue building certificate. In
essence the responsibility and role of the PSP is to regulate or ensure that a building has
complied with all conditions of approval before they can issue the building certificate. The
PSP also responsible to ensure that the contractor involved in a project should make some
repairs or corrections if there are conditions attached to non-compliance. After the repair or
correction PSP must once again examine the work that has been carried out correctly. If the
PSP was satisfied with the work, the compliance certificate for the building can then be
issued. In this way the occupier or owner of the building got a quality building as well as
their safety is more assured. However, to maintain the quality of their services, the PSP
should always work ethics as a system of professional practice as well as good work. By
keeping the two of these things can keep the PSP's performance in carrying out their
responsibilities.

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REFERENCES

1. Adila Zakaria, (January 2012).Transformation of Delivering System: Comparison

Study between CFO and CCC (Master Thesis). Retrieved from
http://eprints.utm.my

2. Abdullah, Harun, Abdul Rahman, (2011).Planning Process of Development Project in

the Malaysian Context: A Crucial Brief Overview. International Journal of
Applied Science and Technology, 1(2). Retrieved from
http://www.ijastnet.com/journals

3. Aminah Binti Abdul Rahman, (n.d.). Common Questions Relating With The
Implementation Certificate Of Compliance & Completion (CCC). Retrieved
from http://jkt.kpkt.gov.my

4. A Literature Review, (23rd March 2015). Retrieved from

https://www.ukessays.com/essays/construction/a-literature-review.

5. Certificate of Completion and Compliance. (n. d.). Retrieved from

http://rehda.com/certificate-of-completion-and-compliance/

6. Cheong Yoke Ping, (21st Sept 2007). Law and Reality: Understanding The New CCC.
Retrieved from http://www.malaysianbar.org.my

7. Ir. Chen Thiam Leong, (16th August 2007). Certificate of Completion and Compliance
(CCC): FAQ. Retrieved from http://www.acem.com.my

8. Lim Ying Hui. (n. d. ). All Change for Completion Procedures. Retrieved from
http://www.skrine.com/all-change-for-completion-procedures

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