Construction & development

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Chapter1: Introduction

Housing development in the private sector has been defined as the developing and provision of money for the development of more than four units of housing accommodation for sale. This status is not applicable to the existing completed houses which are opted for sale or to the development project which consisted of four or less units of houses to be constructed and for sales.

Procedures for housing development in Malaysia can be quite complex and time consuming. Prior to housing project is approved and implemented, there are a number of processes need to go through.

The approving process is very important for developer before develop a places or buildings. It is a long process and most tedious one. Approving process may take years to complete. At this stage, the developer will appoint a consultant team comprised of Town Planner, Architect and/or Engineers for full compliance of the laws, by-laws and regulations. Generally, the approving process can be divided into few stages:

1. Development Order

  1. Developer License
  2. Infrastructure Plan
  3. Building and services Plan
  4. Advertising Permit

Chapter 2: Development order

Under provision of city of Kuala Lumpur (Planning Act, 1973), 'Development Order' means the development order issued under this act granted by the planning and Building Control Department with or without condition attached for any development in such order. In other words, Development order means an action by the city approving a site development plan, final development plan or subdivision plat or the issuance of a building permit or the approval of a conditional use permit for a borrow pit, commercial borrow pit or manmade lake.

Application procedure for Development Order

First, development would inevitably involve the conversion of the land-use and the sub-division of the title and could sometimes necessitate the combination of adjoining lots into one lot to be held under a single title.

A team of consultants comprising the Town Planner, mechanical and electrical consultant, infrastructural consultant and quantity surveyor consultant will be engaged by the developer during project inception stage. Their duties are to propose, brainstorm and comment on the concept; ideas; quality; innovative design; pro and con of the proposed products (houses in this case) and etc., during conceptual design stage. There would be a periodical meeting between the developer and the teams of consultant to overcome and improve the house design during product development stage. The proposed types of houses would be commented and asked to improve further before it is finally been accepted by the developer. The processes of obtaining approval for land development; conversion, sub-division and issuance of titles might start after the development concept has been developed and accepted by the developer.

Then, instruction would be given to the planning consultant to submit the layout plan of the proposed development for the approval. Under provision of city of Kuala Lumpur Act 1973, layout plan is preliminary requirement obtained from city planners. The developer or his agent has to submit proposed layout plan to Planning Division of the Planning and Building Control Department on a prescribed forms to seek the development order. The following incorporate with layout plan.

  1. Number and types of buildings
  2. Existing contour lines and proposed formation levels
  3. Open spaces;
  4. Schools and community reserves where required;
  5. Sewerage disposal reserves
  6. Existing natural courses and drainage proposals
  7. Water works reservoirs reserves
  8. Electricity reserves

Besides that, they also have to submit together with 8 copies of site plan, 4 copies of sketch plans, and other requisite documents for consideration and approval as well as submission fees. The site and sketch plans must show details including number and types of proposed buildings, proposed roads, footpaths and drains, utilities' reserves, open spaces and school and community reserves. As required under the National Land Code Act 1965, after the layout plan is been approved, the planner would only submit the application for conversion of land use and sub-division of the title.

Technical sub-committee will review of technical requirements. After they have studied and considered the plans submitted and requiring certain amendments to be made, the application is submitted to the Town Planning Committee (TPC). If the TPC considers the application in order, approval will be granted, otherwise the application is rejected or referred back for further action, or for further scrutiny by the Technical Sub-Committee (TSC) in respect of technical requirements.

Once the TPC approves the application, Development Order (Green Form) is issued to the applicant. Normally the Development Order sets out a list of conditions of approval to which the applicant must comply in the subsequent stages of work (Bernard, 1987).

Development Order Stage

Preparation of layout plan

Chapter 3: Developer License

Application of Housing Developer's License

After the application of Development Order has been approved, the developer or developer's representative should proceed to apply the developer's license. Developer must submit the Form A (refer to Appendix) and all the require documents to the Ministry of Housing and Local Government (MHLG) and approved by the Controller of Housing. Developer should apply the developer's license under Housing Developers (Control and Licensing) (Amendment) Act 2002, the conditions are as following:

5.Prohibition against housing development except by virtue of a licence and provisions relating to the grant of a licence.

  1. No housing development shall be engaged in, carried on, undertaken or caused to be undertaken except by a housing developer in possession of a licence issued under this Act.
  2. Except with the written consent of the Controller no housing developer other than a licensed housing developer shall assume or use in relation to his business or any part of his business the words "housing developer" or any of its derivatives or any other word or words indicating the carrying on of the business of housing development.
  3. A housing developer who desires to engage in or carry out or undertake or cause to be undertaken a housing development shall apply to the Controller for a licence and any such application shall be made in the prescribed form and in the case of any applicant listed in column (1) of the Schedule the application shall be accompanied by the documents listed against him to column (2), every such document being verified by means of a statutory declaration made by the person listed in column (3) of the said Schedule. (refer to Appendix)
  4. (4) Upon receiving an application for a licence under this section, the Controller may grant the licence applied for or refuse to grant such a licence; and in granting such a licence the Controller may impose thereon such conditions (including the period during which the licence shall be valid) as he may deem fit and proper.
  5. 4.1 No application for a licence under this section shall be considered unless the prescribed fees have been paid to the Controller.
  6. 4.2 There shall be charged and paid to the Controller on the grant of a licence and at such intervals after such grant during the period of validity of the licence such fees as may be prescribed. (Housing Development (CONTROL AND LICENSING) Act, 1966)

In order to apply Developer's License it is necessary to comply with the conditions as below:

  1. unless the applicant has a capital issued and paid up in cash of not less than RM25,000.00 and makes a deposit with the Controller of not less than RM200,000.00 in cash or in such other form as the Minister may determine, if the application is made by a company; or
  2. unless the applicant makes a deposit with the Controller of not less than RM200,000.00 in cash or in such other form as the Minister may determine, if the application is made by a person or body of persons;
  3. unless the applicant is not himself nor is any member or partner thereof a person convicted of an offence involving fraud or dishonesty or an undischarged bankrupt, if the application is made respectively by a person or a body of persons or a firm;
  4. unless no one who is convicted of an offence involving fraud or dishonesty or who is an undischarged bankrupt is holding office as director, manager or secretary of the applicant or other similar office or position, if the application is made by a company, or is holding office as president, secretary or treasurer of the applicant or other similar office or position, if the application is made by a society. (Housing Development (CONTROL AND LICENSING) Act, 1966)

Documents needed for Application of Developer's License

  1. a copy of the land title;
  2. a copy of an approval for the conversion of the lands for building purpose and for the sub-division;
  3. a copy of the agreement between the land-owner and the developer to develop the lands into housing development;
  4. a copy of the latest audited balance sheet;
  5. a copy of a statutory declaration stating to the effect that the applicant has complied with all the conditions or restrictions set out in section 6 of the Ordinance; and
  6. a copy of the particulars in Form 24 under the Companies Act 1965 (for limited company only).

It is necessary to submit the following documents duly verified in accordance with section 5(4) of the Ordinance:

  1. limited company- a copy of the Memorandum of Association and Articles of Association.
  2. firm- a copy of the Certificate of Registration of Business and a copy of the partnership agreement, if any
  3. society- a copy of the rules or by-laws
  4. body of persons- a copy of the agreement between or amongst persons forming the body.

Chapter 4 Infrastructure Plan Approval

Procedure for Sewerage Approval

a) Particulars of Authority Involved

  • Jabatan Perkhidmatan Pembentungan
  • Indah Water Konsortium Sdn Bhd

b) Planning Approval Stage

  • C&S Engineer have to check with JPP/IWK on their requirements for the development

c) Architect to obtain the DO and the Approved / Endorsed Planning Layout from Planning Department

  • C&S Engineer study all the requirements on the civil works and identify the road reserve / area to be surrendered to Authority

d) Detailed Submission

  • C&S Engineer have to obtain the approved DO from the Planner / Architect. Without the DO, the submission will not be processed
  • C&S Engineer have to obtain the relevant BASIS OF EQUIVALENT POPULATION for the type of houses/buildings and calculate the TOTAL EQUIVALENT POPULATION (EP) per day
  • C&S Engineer have to write to M&E Consultant for the positions of internal last manhole.

e) Approval Submission

C&S Engineer to prepare and submit Sewerage Submission Cover Letter, 1 copy of DO, 2 copies of Application for Sewerage Planning Approval, 2 copies of Application for Approval of Sewerage Works, 2 copies of Asset Management Form, JPP's signed Sewerage Planning Approval, 1 copy of the DO, 1 copy of the approved & endorsed Planning Layout, 4 sets of the PE endorsed Sewerage Report, 4 sets of the Sewerage Drawings

f) Follow up with Authority

  • C&S Engineer to follow up with the authority 2 weeks after submission and to update the Status of the submission. Proceed accordingly if resubmission is required.

(Perunding, 2001)

Procedure for Water Approval

Scope of work for C&S Engineer is from the tapping-off point to the bulk water. Scope of work for M&E Engineer is from the bulk meter onwards.

a) Particulars of Authority Involved

  • Jabatan Bekalan Air (JBA)

b) Planning Approval Stage

  • C&S Engineer to obtain the technical requirement (Type of the Proposed Development, Basis of Water Demand) which set by the JBA for the development
  • C&S Engineer to calculate Total Water Demand.

c) Architect to obtain Development Order and the Approved / Endorsed Planning Layout from Planning Department

  • C&S Engineer to study the entire requirement on the civil works and then study and identify the road reserve / area to be surrendered to Local Authority.

d) Submission of Application and Proposal (Conceptual Design)

  • C&S Engineer have to prepare preliminary enquiry letter to JBA to request for available water supply.
  • Upon approval of tapping point, C&S Engineer have to write to client to forward the approval letter and cc to M&E and Architect.

e) Submission of Detailed Design

  • C&S Engineer have to prepare the water layout plan and obtain the Bomba Approved Layout Plan from Architect. Information in the water layout plan should include pipeline reticulation, pipe reference, node reference, the type of pipe material to be used, calculation of the Water Demand Draw-off and top water level.

f) Approval Submission

  • C&S Engineer to prepare and submit Water Submission Cover Letter, 1 copy of DO, 1 copy of approved & endorsed Planning Layout, 4 sets of the PE endorsed Water Reticulation Report and Water Drawings.

g) Follow up with Authority

  • C&S Engineer to follow up with the authority 2 weeks after submission and to update the Status of the submission. Proceed accordingly if resubmission is required.

(Perunding, 2001)

Procedure for Road and Drainage Approval

a) Particulars of Authority Involved

  • Dewan Bandaraya Kuala Lumpur

b) Planning Approval Stage

  • C&S Engineer to obtain the technical requirement (Road Reserve Requirement, Set Back Requirement, Nearby Highway Requirement) which set by the local authority for the development
  • Submit Road and Drainage (RD) layout plan during planning approval stage to Local Authority, JKR and JPS.

c) Architect to obtain Development Order and the Approved / Endorsed Planning Layout from Planning Department

  • C&S Engineer to study the entire requirement on the civil works and then study and identify the road reserve / area to be surrendered to Local Authority.

d) Detailed Plans Submission Stage

  • Local authority will only accept these submission with attachment of Development Order
  • C&S Engineer have to submit detailed Layout Plan, Road Section, Drain Details, Road Details and the Road & Drainage Plans with colour.

e) Approval Submission

  • C&S Engineer to prepare and submit Road & Drainage Submission Cover Letter, 1 copy of Borang JKA , 1 copy of Borang JKA 3, 1 copy of DO, 1 copy of approved & endorsed Planning Layout, 2 sets of the PE endorsed Road & Drainage Report and Drawings.

f) Follow up with Authority

  • C&S Engineer to follow up with the authority 2 weeks after submission and to update the Status of the submission. Proceed accordingly if resubmission is required.

(Perunding, 2001)

Chapter 5: Building and Services Plans Stage

After obtaining the Development Order, various plans are to be submitted to the various Departments for processing and approval. Normally the major step in the development approval process is the building and services plans approval must be coordinated by the Planning and Building Control Department (Building Control Division) of the Local Government. Provision in the Building By-Law, Uniform Building By-Law (UBBL) is the basis for investigating compliance. (e.g. building owner, conditions, floor area, number of units, type of use, site plan with location of building, conditions of approval, etc). A site plan indicating the exact location of the building or buildings and their footprints accompanies the building plan.

In housing schemes, the original approved layout plan is redrawn to provide more precise and accurate details on building shape, location, set-backs from property lines, distances between buildings, and road reserves. Since layout is deemed a town planning activity, building plans are referred to the Town Planning Department for confirmation of compliance with planning requirements. In the process, the Town Planning Department will have to retrieve the approved layout, compare it with the layout in the Building Plan, make appropriate recommendations and route back the building plan application to the Building Department.

All the consultants carry out their duties to prepare the design drawings in detailed. According to Yong (2006), the submission plan to the authorities included the Jabatan Bekalan Air (JBA); Jabatan Kerja Raya (JKR); Jabatan Bomba dan Penyelamat, Malaysia (JBP); Telekom Malaysia (TM); Tenaga Nasional Berhad (TNB); Jabatan Perkhidmatan Pembentungan (JPP) and Indah Water Konsortiumv (IWK). The authorities checked whether all the specifications proposed are in accordance with the by -law requirements.

These plans based on the building plans submitted to the relevant Department for approval and endorsement. For example: Fire facilities and fire prevention plans are submitted to the Fire Services Department, refuse-chute and catering facilities plans must be submitted to Urban Services Department, requisite plans shall be submitted to the Tenaga Nasional Berhad (TNB)and Indah Water Konsortiumv (IWK) Department, Selangor for approval. Normally before submitting these plans, prior discussions are being held with the Department to ascertain its requirements. The authorities check whether all the specifications proposed are in accordance with the Acts, By-law, and regulations requirements. Once the plans are approved a copy of the approval letter or endorsement will be sent by the Departments to the Building Control Division.

Upon approval of the building and services plan, the developer may only allow to commence work on site (Yong, 2006).

Chapter 6: Advertising Permit

Application of Advertising and Sale Permit

Under the Housing Developer Regulations (Control and Licensing) 1989 Section5(2), it is compulsory to apply advertising and sale permit. Before selling the houses, the developer or his representative must submit Form D (refer to Appendix) with all require documents to apply advertising and sale permit.

Documents needed for application for advertisement and sale permit are as following:

  1. a copy of the approved building plan;
  2. two copies of each type of proposed advertisement;
  3. a copy of an agreement to the effect that the land-owner(s) agree to abide by Regulation 10 of the Housing Developers (Control and Licensing) Regulations, 1998 (if applicable);
  4. a copy of the valuation report by a licensed valuer and particulars of the charge (if the land is charged to a person, body of persons, company or society other than a bank licensed under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983).

The following particulars must be shown in each of the proposed advertisements:

  1. the licence number of the housing developer and the validity period;
  2. the permit number of the advertisement and sale permit and the validity period;
  3. the name, address and telephone number of the licensed housing developer;
  4. the tenure of the land and encumbrances (if any);
  5. the building description of the proposed housing accommodation as specified under the Fourth Schedule of Schedule G and the Fourth Schedule of Schedule H;
  6. the name of the housing development (if any);
  7. the expected date of completion of the proposed housing development;
  8. the selling price of each type of housing accommodation;
  9. the number of units of each type of housing accommodation;
  10. the name of the Appropriate Authority approving the building plans and the reference number;
  11. the name of the authorised agent (if any).

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