Architects and engineers turn ideas into buildings people use every day—homes, malls, hospitals, schools. In Malaysia, they also have to make sure designs follow local laws and safety rules.
Most of the time, projects go smoothly. But when something slips—an error in calculations, a missing safety feature, or the wrong material—clients can face delays, extra costs, and even safety risks. That’s when negligence claims appear, and why professional indemnity insurance (PII) matters.
This guide explains, in plain language, what “professional negligence” means for architects and engineers in Malaysia, what common mistakes lead to claims, and how PII steps in to protect your practice.
What does “negligence” mean here?
In simple terms, negligence means a professional didn’t use the reasonable skill and care expected for the job. To bring a successful claim, a client usually needs to show four things:
- Duty of care – The architect/engineer had a responsibility to act carefully.
- Breach – They fell below accepted standards (e.g., codes, regulations, good practice).
- Causation – That breach caused the problem (cracks, delays, extra costs).
- Loss – The client suffered measurable loss (rectification costs, loss of rent, business interruption, etc.).
Relevant links:
https://civillitigationlawyers.co.uk/architect-engineer-negligence/
Common Malaysian scenarios that trigger claims
Here are realistic, Malaysia-focused examples that often lead to disputes and Professional Indemnity Insurance notifications:
1) Miscalculations that affect stability
An engineer underestimates loads for a car park slab. Months after opening, cracks appear and levels need propping. Tenants complain, areas are closed, and the owner claims for repairs, expert fees, and lost income.
2) Fire safety or egress issues
An architect coordinates a design that doesn’t properly meet local fire safety/egress expectations. During testing and inspections, extra fire doors, smoke control or pressurisation works are required. Variations push the completion date, and the client claims delay costs.
3) Unsuitable materials for local conditions
A façade or roofing system that works overseas may fail under Malaysia’s humidity and rainfall patterns. Water ingress damages interior finishes and M&E services. The specification choice becomes the centre of the dispute.
4) Coordination errors that cause late redesign
If drawings clash or coordination is weak (e.g., beam depths vs. M&E services), redesigns near the end of the job can trigger site stoppages. Late approvals mean penalties, lost fit-out time, and angry tenants.
5) Environmental and site factors not fully considered
Soil, flood, wind, corrosion, or coastal conditions aren’t properly factored in. The building needs extra strengthening or protection after construction starts, causing rework and delay.
Relevant links:
How PII (Professional Indemnity Insurance) actually helps
Professional indemnity insurance for architect and professional indemnity insurance for engineers is designed to protect your firm when a client says your professional services caused loss. In practice, a good PII policy can:
- Pay defence costs: Lawyers, expert witnesses, and investigation costs (usually with insurer consent).
- Cover settlements or damages: If you’re found liable or agree to settle.
- Support pre-claims: If you discover a problem early (a “circumstance”), the insurer may help manage it before it becomes a full claim.
- Assist with inquiries: Some wordings reimburse attendance expenses if authorities or regulators call you in.
- Help with reputation: Certain policies include public relations expenses after high-profile incidents (limits apply).
- Offer a discovery period: If you stop or change insurers, a discovery/extended reporting period can capture claims made later for earlier work (check your wording).
A simple case study (fictional but realistic)
Project
45-storey service apartment with retail podium, Klang Valley
Issue
During commissioning, authorities query the fire and smoke strategy for a key exit route. Further review shows the egress design doesn’t match the latest interpretations. Extra fire-rated elements and smoke control are needed. The owner alleges the architect failed to coordinate the fire strategy design, claiming delays, remedial works, and professional fees.
What happened next
- The architect notifies their PII insurer immediately.
- The insurer appoints panel solicitors and an independent fire engineering expert.
- The defence focuses on what was “reasonable” at the time of design, the role of specialist consultants, and how code interpretations changed during the project.
- After expert meetings and commercial discussions, the claim settles for a fraction of the initial amount, plus agreed defence costs.
Lessons learned
Document code checks clearly, keep a live design-basis file, record meetings with authorities, and define who does what (especially when specialists are involved).
Practical ways to reduce your risk
- Write a clear scope: Spell out responsibilities for permanent works vs. temporary works, and for specialists (façade, geotech, fire).
- Keep a “design basis report” (DBR): List the codes, standards, and assumptions used. Update it when anything changes.
- Peer review critical items: Transfer beams, retaining walls, wind loads, smoke control, evacuation modelling—get another pair of eyes.
- Coordinate early and often: Clash detection, RFI logs, dated mark-ups, and meeting minutes show diligence.
- Track code updates and authority feedback: Save emails, comments, and circulars in one place.
- Right-size your PII limit: Match limits/aggregate to project size, LD exposure, and your role.
- Mind your notifications: If you “smell smoke,” notify your insurer early—pre-claims help can stop escalation.
Relevant links:
- PAM Practice Note: Architect’s Statutory Obligation (registration & statutory duties). (pam.org.my)
- BEM – Act & Regulations (landing page for codes/acts). (bem.org.my)
- UBBL – recent changes overview (amendments discussion). (JKT KPKT)
Key takeaway
Even careful professionals can face claims. What matters is how prepared you are—both in your practice management (clear scopes, records, peer reviews) and in your financial protection (the right professional indemnity insurance for architect or professional indemnity insurance for engineers). With solid habits and the right PII partner, one slip doesn’t have to threaten your business.
Need help choosing the right cover? Start with Minaris Risk Management. We’ll help you size limits, compare wording features, and get fast, practical support when it matters most.
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Jayadarshiniy Sankar is a Senior Insurance Advisory Manager with a background in law and over 5 years of experience in professional indemnity and general insurance. She specializes in regulatory compliance and client solutions, delivering tailored coverage with prompt, results-driven support while actively educating clients through industry content and guidance.