vacant possession Archives - Mac Consultancy https://www.mac-consultant.asia/tag/vacant-possession/ Mon, 11 Jan 2021 08:13:54 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.4 https://www.mac-consultant.asia/wp-content/uploads/2020/10/mac-favicon.png vacant possession Archives - Mac Consultancy https://www.mac-consultant.asia/tag/vacant-possession/ 32 32 Importance of Certificate of Completion and Compliance (CCC) for construction projects https://www.mac-consultant.asia/importance-of-certificate-of-completion-and-compliance-ccc-for-construction-projects/ https://www.mac-consultant.asia/importance-of-certificate-of-completion-and-compliance-ccc-for-construction-projects/#respond Wed, 13 Jan 2021 10:00:51 +0000 https://www.mac-consultant.asia/?p=2444 The Certificate of Completion and Compliance (CCC) is undeniably a crucial document within the property development process. But what is a CCC? Who is a PSP and what is their role in this process? What is the difference between a CCC and a CFO? And most importantly, why is the CCC process critical for a […]

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The Certificate of Completion and Compliance (CCC) is undeniably a crucial document within the property development process.

But what is a CCC? Who is a PSP and what is their role in this process? What is the difference between a CCC and a CFO? And most importantly, why is the CCC process critical for a building’s construction?

This article will answer all the above.

The CCC is a certificate proving that a building is well-constructed and safe for occupation. It is mandatory for all buildings, both residential and commercial, to obtain a CCC before they can legally operate.

A Principal Submitting Person (PSP) completes the CCC and is a registered industry professional who is in charge of overseeing the overall construction of the building. The PSP is typically an engineer, architect, or a profession related to the construction industry.

The PSP’s duties include submitting building plans to local governments (also known as pihak berkuasa tempatan or PBT), keeping the PBT updated on when construction begins, as well as acting as a supervisor for all construction work. They are also responsible for reporting any breaches of plans or regulations, providing consultation on why said breaches occurred and ensuring the breaches are rectified before the building’s completion. 

Prior to the CCC’s introduction, the Certificate of Fitness for Occupation (CFO) was the certificate necessary for a building’s completion. But there is a key difference between the CCC and the CFO. 

While the CCC requires a PSP to sign it off, the CFO was under the complete responsibility of local governments (PBT). 

Because the CFO required local government authorities to visit the site in person to provide approval however, the lack of manpower meant that Malaysia’s property development industry had to experience backlogs and delays due to the limited availability of local authorities in signing off buildings. 

As such, the CCC was then introduced in 2007 to speed up the approval processes and prevent homebuyers from experiencing delays when moving into their newly-built properties. 

Nevertheless, the PBT is still included in the property development process as they are responsible for receiving, processing and approving CCC applications. This also means that PBT has the right to conduct site inspections to confirm construction details and are also authorized to impose penalties if there are breaches within the construction project.

So why do you need a CCC?

A CCC is important to ensure a building’s structure and overall build has been done up to standard. 

The CCC process requires a sign off at every step of the building development process, ensuring that each step has been safely constructed, from the foundations of the building to the final touches of landscaping. Individual contractors are also required to sign off their respective work in the CCC as a form of responsibility over their work in the event that there are any defects that need to be addressed. 

The CCC is submitted alongside documents from relevant registered bodies such as utility companies to ensure that everyday essentials like sewage connections or electricity supplies are functioning properly. 

Once the CCC is issued, it is accompanied with a Vacant Possession (VP) notice and is the final step before you are able to move into your new home.

In conclusion, it’s important to not overlook the CCC process during a building’s construction period. With the presence of the CCC, you can rest assured that your building will be constructed according to standard and should there be any defects or negligence, you will be able to seek legal consequences easily. 

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VP Manager can assist you in the vacant possession period https://www.mac-consultant.asia/this-is-how-vp-manager-can-assist-you-in-the-vacant-possession-period/ https://www.mac-consultant.asia/this-is-how-vp-manager-can-assist-you-in-the-vacant-possession-period/#respond Wed, 16 Dec 2020 04:28:57 +0000 https://www.mac-consultant.asia/?p=2425 Getting the keys to your new property is undeniably a thrilling moment in a homebuyer’s life. But many new homebuyers may be unaware that several things need to be taken care of before they can start planning their house-warming party. The most important thing is that the house-buying process doesn’t end the moment they get […]

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Getting the keys to your new property is undeniably a thrilling moment in a homebuyer’s life.

But many new homebuyers may be unaware that several things need to be taken care of before they can start planning their house-warming party.

The most important thing is that the house-buying process doesn’t end the moment they get the keys to their property.

This might come as a surprise to some new homeowners. Developers may understand, however, as there’s still much to be done to ensure the property is safe and habitable before the purchase can be officially closed. This is also commonly known as the Vacant Possession (VP) process.

But before the VP process begins, there are three requirements that need to be addressed:

  1. Local authorities need to issue a Certificate of Completion and Compliance (CCC), which verifies that said property is completed, safe and habitable.
  2. The water supply and electricity to the property are ready to be connected.
  3. The buyer has paid off any balance in accordance with the pre-agreed payment schedule.

Once the conditions have been met, the homebuyer will then have to sign several forms acknowledging the handover of keys, CCC as well as a list of fittings and fixtures included in their new property.

Along with those signed forms includes the Notice of Vacant Possession from the property developer. Remember to take a close look at the Notice, as buyers are given 14 days from the Notice’s date to take possession of a finished property. After the 14-day period, the buyer is deemed to have taken VP over the property.

An important note: The beginning of the Defect Liability Period (DLP) starts from the date homebuyers receive their keys, according to the Housing Development Act (HDA) Malaysia. Homebuyers are given an interval of time between 12 to 24 months of DLP depending on the type of property, to check for any problems and report it to the developer to kickstart any repair work.

Once the homebuyer reports a defect, developers are obligated to respond and begin fixing said defect within 30 days. Even if the problem cannot be fixed within a month, developers will need to show that they recognize the homebuyer’s defect report and that they have begun the process of remedying it.  If the developer does not respond to the original report within 30 days, it is legally acceptable for homeowners to begin the process of fixing those defects at the developer’s expense, as the cost of rectification can be claimed from the developer’s lawyer.

Property defects can be costly when they occur. Furthermore, the monetary costs of repairing those defects as well as the intangible costs of a ruined relationship with a homebuyer, loss of reputation among peers as well as brand damage among future potential clients, can all cost developers tremendous time, effort and money.

This whole ordeal can be quite time-consuming and expensive, especially when working with inexperienced home buyers. Luckily, there’s now a solution for developers.

Launched by CIC-QS Services Sdn Bhd (CIC), VP Manager is a new cost-saving solution for developers that is guaranteed to enhance your brand while also avoiding any potential disputes with clients.

VP Manager offers various services for contractors including but not limited to:

  • Educational 3-month workshops for homeowners
  • Contractor T&C support
  • Homebuyer report evaluation
  • On-site duty

VP Manager is also accompanied by our phone app ProFix, allowing for smoother and quicker communication between contractors and homebuyers.

So how does this process work? It’s simple.

VP Manager will conduct an educational workshop for homebuyers on the topic of building defect so that homebuyers understand what constitute to defect and the defect management procedure. The workshop is conducted by trainers who are experts in the field.

Any defects found will be liaised between VP Manager and homebuyer clients, ensuring a smooth and efficient communication bridged between the developers and the homebuyers.

With the innovative technology of VP Manager, developers can rest in ease as they focus on what they do best, delivering sturdy and quality properties to the homebuyers.

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