Understanding the new CCC
21/09/2007 The Sun
LAW & REALTY by Cheong Yoke Ping
CCC stands for the certificate of completion and compliance and is a new
term introduced by the Street, Drainage and Building (Amendment) Act 2007
(Amendment Act), which came into force on April 12, 2007. The CCC is meant
to replace the certificate of fitness for occupation (CFO).
Under the former system, the CFO was issued by the local authority (LA)
under the Uniform By-Laws of the Street, Drainage and Building Act 1974 (Act
133).
The former 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.
New system of CCC
The new CCC, based on self-regulation, is issued by the private sector. The
responsibility is transferred from the LAs to professionals (architects,
engineers and building draftsman) of the project. It seeks to provide better
protection for house buyers, cut red tape or bureaucracy in local government
and create a more efficient public delivery system. The CCC applies to new
projects while those currently under construction will still be issued with
CFOs.
Principal submitting person
The CCC will be issued by a principal submitting person (PSP), which is a
radical change indeed. The PSP is a professional architect, engineer or
building draftsman who submits building plans to the LA for approval. He
must be registered under the relevant law relating to registration thereof,
eg Architects Act 1967 or Registration of Engineers Act 1967(Revised 1974).
The PSP’s responsibilities include submitting building plans for approval by
the LA, supervising the erection and completion of the building in
conformity with the approved plans and the requirements of the provisions of
Acts or by-laws, ensuring all technical conditions imposed by the LA have
been duly complied with and ensuring that the building is safe and fit for
occupation.
Six essential services for issuance of CCC
There are six essential services for the issuance of CCC:
• Confirmation of electrical supply (TNB)
• Confirmation of water supply) (water authorities)
• Confirmation of connection to sewerage treatment plant or mains (JPP)
• Clearance from lifts and machinery department, if applicable (JKKP)
• Clearances for active fire fighting systems except for residential
buildings not more than 18m high) (Bomba)
• Roads & Drainage
Rectification by LA
The LA may inspect the building site at any time on its own initiative or
due to complaints. In the event of failure to comply with the approved
plans, the Act or by-laws in the erection and construction of the building,
the LA may issue to the PSP:
(a) a written notice requiring compliance within a period specified in the
notice, as the Local Authority thinks fit, in order that the non-compliance
be rectified; and
(b) a directive in writing to withhold the issuance of CCC until such
non-compliance has been rectified.
The LA may itself cause any work to be executed or any measure to be taken
if it considers such work or measure is necessary to rectify the
non-compliance of its directive and the costs shall be borne by the owner of
the building. The costs shall not be subject to any appeal or review in any
court.
The LA is also responsible for approving permission of planning application
and building plans; pressing charges against the PSP and professionals and
reporting to the relevant professional board; inspection of old buildings
and continuing to issue CFOs for projects approved before the CCC’s date of
enforcement.
Offences under the new system
The Amendment Act has introduced the following new offences and penalties:
• Not a PSP but issues a CCC;
• Issues CCC without forms (relevant forms under by-laws);
• Issues CCC despite direction to withhold -- in contravention to direction
of LA to withhold issuance;
• False/fraudulent declaration: Knowingly makes/produces/causes to be made
any false or fraudulent declaration, certificate, application or any form
under by-laws knowing it/they have been forged, altered or counterfeited;
• Use knowingly: Uses the above form knowing it/they have been forged,
altered or counterfeited;
• Occupation without CCC: Occupies or permits to be occupied any building or
part thereof without a CCC (This has a wide-ranging effect as it can cover
purchasers, tenants, occupiers, owners, trustees, etc);
• Liable on conviction to fine not more than RM250,000 or imprisonment not
more than 10 years or both; and
• Increased general penalty: The penalty for the offence of not abiding by
the orders of the LA is increased and includes imprisonment for term not
exceeding three years and a fine of up to RM10,000.
Offences by architects
False and negligent certification of the CCC by an architect is an offence
under the Architects (Amendment) Act 2007 and is grounds for disciplinary
action. An enhanced penalty may be imposed by the Disciplinary Committee.
The fine is increased from RM10,000 to RM50,000 and the period of suspension
of registration is increased from one, to two years.
Offences by engineers
The Registration Of Engineers (Amendment) Act 2007 established a
disciplinary committee that is empowered to conduct a hearing of any
misconduct or complaint made against any registered Engineer referred to it
by an Investigating Committee. In the case of false or negligent
certification of the CCC, the fine is increased to RM50,000 and the period
of suspension is increased to two years.
Offences under the Housing Development (Control and Licensing) Act 1966
In a related matter, section 22F(1) of the 1966 Act provides that any
architect or engineer, as the case may be, who issues a progress
certification knowing that the works therein referred to have not been
completed in accordance with the provisions of the sale and purchase
agreement shall be guilty of an offence and shall, on conviction, be liable
to a fine which shall not be less than RM10,000 but which shall not exceed
RM100,000 or to imprisonment for a term not exceeding five years or to both.
Sub-section 22F(2) also provides that any person who knowingly and willfully
aids, abets, counsels, procures or commands the
commission of an offence under subsection 22F(1) shall be liable to the
punishment provided for the offence.
Saving provisions
The former system of issuance of CFO continues to apply where:
• work of erection has not commenced within 12 months from date on which
plans and specifications of building were approved; if work commenced on or
after April 12, 2007 (Commencement Date), (without prejudice to any
penalty);
• work of erection commenced immediately before commencement date;
• work suspended immediately before coming into operation of Act and is to
resume on or after Commencement Date; and
• erection of building without approval of plans and specifications by the
LA under the Act immediately before Commencement Date provided that an
application for approval is made to the LA on or after Commencement Date and
the application is approved.
