IS CCC THE ONLY CONTRACTUAL REQUIREMENT FOR THE

DELIVERY OF VP IN A SALES AND PURCHASE AGREEMENT?

Commentary by : Ar Ridha Razak

Many of the public misconstrue that Certificate Completion and Compliance (CCC) is
equitable to Vacant Possession (VP) and vice versa. This is not right as CCC is a
standalone certificate and does not require Certificate of Practical Completion (CPC) or VP
for its issuance as it is to signify building comply to approve plan and fit to be used as per the
SDBA 1974. However in the case of VP, CCC is only one of the precursor requirements for
developer to give VP where it has other obligation to be met before VP is given.

WHAT IS CCC?
CCC involves a process of certifying building completion to be in accordance to the relevant
laws such as Street Drainage Building act (SDBA), Uniform Building By law (UBBL) and
many more . For the completion of a project or development, it is issued in the form of 'Form
F' with the relevant 'Form G1-G21' signed by related professionals such as Architect, Civil,
structure, mechanical, electrical engineer, landscape, contractor and others supported by
clearance letter by relevant Authority/ technical agencies. In other words, for the issuance of
CCC, it involves various stakeholders with tedious process to comply with the statutory
requirements in Malaysia.

IS CCC THE ONLY REQUIREMENT FOR VP?

Refer to the diagram and let us analyse what is the meaning of:
1. Completion of Building in Construction,
2. Completion of Building to statutory Compliance,
3. Completion of Building ready for Vacant Possession

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IS CCC THE ONLY CONTRACTUAL REQUIREMENT FOR THE
DELIVERY OF VP IN A SALES AND PURCHASE AGREEMENT?
1. Completion of Building in Construction

In a building Construction contract, Building Completion means that its completion is in

accordance to the completion of contract between Developer and Main Contractor. This is
signified by the issuance of Certificate Practical completion or CPC. Upon issuance of CPC ,
the building should have been constructed to the contract requirements and all contractual
requirements have been met between both parties. In Semenanjung Malaysia, CPC is not
attached to CCC. However in Sabah and Sarawak CPC is very much attached to
certification by Authority for Occupational Certificate (OC) or Occupation Permit (OP).

2. Completion of building to statutory compliance

The obligation of Submitting plans up to Certification of CCC is arise by the agreement

between the developer and the Architect and other consultant in a development project. For
a building to be completed and issued CCC, compliance to sec 70 of Street Drainage
Building Act (SDBA) is essential. This encompass the Building have been supervise,
completed as per approve plan and Building must also be safe/ fit for purpose. The approve
plan does not cover the choice of finishing, brand, fixtures in detail, defects, and connections
of water/electricity for owners consumption.

For a small bungalow project, CCC can be issued to owner for him to take possession and
apply his own water, electricity and telco connection. Should the owner sells the bungalow, it
is his obligation to ensure all agreement in his sub sale agreement is met with the new
owner. The architect has no privity with the new owner.

3. Completion of building ready for VP

Many purchasers does not realise that there are many other requirements before VP can be
given. CCC does not equate to VP as there are many more obligation under S&P agreement
that obligates developer to perform before VP can be given to purchaser. For example, after
CCC is issued, developer must make sure that the building is cleaned, electricity and water
ready for connection, defects acceptable to its purchaser acceptance and other promises
that has been agreed. On purchaser side must ensure to settle amount due for stage 1 and
stage 2. All this obligation must be met and perform by both party in agreement namely the
developer and the purchaser. Thereafter, the developer will collate all requirements and
send notice of vacant possession to purchaser. The question is who is to verify that this
entire requirement has been met and complied thus ready for VP?

ROLE OF AN ARCHITECT

The Architects role in this is quite clear as they have no privity with the purchaser nor benefit
from the sales of the development. They are only commission for ensuring the development
is constructed to approve plan, safe and fit for its purpose for future use.

Among the Architects responsibility in a housing project are:

1. To certify The construction cost for deposit of 3% for HDA accounts

2. Certify progress billing stage 2a-2h completion of works

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IS CCC THE ONLY CONTRACTUAL REQUIREMENT FOR THE
DELIVERY OF VP IN A SALES AND PURCHASE AGREEMENT?
3. Assist developer in preparing drawings in order to inform purchaser if there is changes
4. Submit Amended plan to local authority before alteration on site is done.
5. In case strata development, Certify stage SSS for building to be surveyed for submission
to survey dept.
6. Certify CCC when the building is safe and fit for purpose.
7. Certify KPKT form 9 & 11 for release of surplus and all monies together with the legal
representative.

In conclusion, the onus of VP lies on the parties in S&P to fulfill its agreement. Consultants
are there to help in the process of CCC and to handle contractual construction issues at site.
Should there be more disputes in future, it would be good for the Government to consider an
independent certifier such as the local Authority to verify and certify VP is ready to be given
instead of leaving it to fate.

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