Unlicensed architects and contractors cost homeowners dearly

Advertisements offering home construction and renovation with an all-in-one package concept are currently popular among many consumers. However, many have fallen victim to fraud, including public servants, retirees, and celebrities.

Some homeowners have suffered losses of up to millions of ringgit because their dream homes were not completed, did not meet safety specifications, and other issues, raising questions about the root cause of this problem. This is the first of a three-part report.

KUALA LUMPUR - Although several years have passed, the forlorn expression of a senior citizen in his 70s remains vivid in the memory of Ar Azizul Azwar, a certified architect who has handled many cases of homeowners being deceived by unscrupulous contractors and ‘fly-by-night’ architects.

The septuagenarian, came to his firm seeking help after suffering a loss of about RM2 million due to trusting a fly-by-night architect or an uncertified architect who was entrusted to build his dream bungalow, which to this day has not materialised.

Adding to the distress, Azizul, who has 17 years of experience in the field, said the man, a jeweller from a state in the east coast, fell prey to his own adopted son. The son, who had been raised since childhood, was appointed as the contractor for the project in 2018, which was initially supposed to cost only RM1.5 million, without any formal agreement.

However, not many people realise that the issue of abandoned housing projects is not only due to profiteering from unscrupulous contractors; fly-by-night architects also exploit individuals lacking knowledge of the home building process and procedures.

"Due to familial ties, he (the victim) managed the payments directly with the contractor. Initially, the contractor requested a certain amount, but then repeatedly asked for more, eventually totalling RM2 million, while the project's progress remained far below expectations.

"When things went wrong, they tried to find the fly-by-night architect to question the lack of project oversight, but by then the architect had disappeared,” the owner of an architecture firm in Melaka, told Bernama in a recent interview.

According to Azizul, the elderly man’s case is just a tip of the iceberg. He has encountered numerous victims seeking expert witness services to prepare appropriate reports for court proceedings. These experiences have prompted him to launch awareness campaigns about the issue.

Currently, many people are being deceived by contractors offering all-in-one packages, such as home construction on their own land, claiming to provide services from A to Z, including hiring architects and interior designers. Additionally, some clients mistakenly hire fly-by-night architects for their home projects.

"Many people assume that an architect's role is limited to providing building plans and that his involvement is not crucial for construction or renovation projects. They believe the architect's job is done once the plans are prepared. As a result, they directly hire contractors, assuming the contractor will handle everything.

"In the end, the contractor didn't even appoint an architect or submit plans, meaning they were carrying out an illegal project without approval from the local authorities (PBT). Alternatively, to save money, they appointed a fly-by-night architect as the cost is lower. Although these fly-by-night architects can provide plans and construction drawings, they cannot act as the Principal Submitting Persons (PSPs) or submit plans to the PBT, making the project illegal," he said.

"Only those registered with the Board of Architects Malaysia (LAM), the Board of Engineers Malaysia (BEM), or the Board of Quantity Surveyors Malaysia (BQSM) can act as PSPs. In the architecture profession, only those with the title ‘Ar’ can serve as PSPs.

He said that when fly-by-night architects are hired, the building or housing plans cannot be submitted to the PBT because only professional architects registered with the Malaysian Board of Architects (LAM) can do so. This includes issuing the Certificate of Completion and Compliance (CCC), as stipulated in the Architects Act 1967 and the Uniform Building By-Laws 1986.

Azizul said that unscrupulous contractors often demand payments from clients even when the project is not progressing or the construction work does not match the plans. This happens because their work is not monitored by professional architects or consultants.

He said projects handled by unscrupulous contractors or fly-by-night architects expose clients to various risks, including substandard designs, safety issues like compromised structural integrity, legal liabilities, potential abandonment, and financial losses.

Most homeowners only consult professional architects after encountering problems, such as contractors fleeing or unregistered interior designers and fly-by-night architects failing to meet their responsibilities, particularly in obtaining building plan approvals.

"Official approvals from agencies are crucial to ensure that the buildings comply with laws, regulations, and guidelines, so clients do not face issues later. In short, professional architects are essential to protect clients from fraud, including legal protection," he said.

THE ROLE OF ARCHITECTS

Architects play a crucial role in ensuring that construction projects run smoothly. Their responsibilities go far beyond wearing white safety helmets, boots, and holding A1-sized design plans at construction sites.

They act as PSPs, responsible for overseeing and monitoring the entire construction process. This includes submitting plans to the PBT for approval and informing the PBT when construction begins.

More importantly, PSPs supervise on-site construction work to ensure compliance with all relevant regulations and laws, guarantee the building's safety, and advise clients on payments to contractors.

However, not all architecture graduates working at architecture firms can become PSPs. Only professional architects who are registered with LAM can serve as PSPs.

Only professional architects who are registered with LAM, the Board of Engineers Malaysia (BEM), or the Board of Quantity Surveyors Malaysia (BQSM) can act as PSPs or Submitting Persons. In the architecture profession, those bearing the title ‘Ar’ ensure the legitimacy and compliance of construction projects.

THE RISE OF ‘FLY-BY-NIGHT’ ARCHITECTS

The question arises: where do these ‘fly-by-night’ architects come from?

Azizul revealed that most of them are insiders in the industry, acting as ‘wolves in sheep's clothing’ by leveraging basic knowledge and experience gained while working in the field.

"These fly-by-night architects can be found in various places, depending on where people seek construction or renovation services. You can find them at local authorities (PBT), on social media, and even on platforms offering interior design services," he said.

They can be architects working in firms who lack the ‘Ar’ title, architecture graduates, or those who have worked in the construction industry and are familiar with PBT approval processes.

"Some contractors with architectural backgrounds might start their own companies and hire these fly-by-night architects to create drawings and sign plans without submitting them to the PBT, knowing the procedures are not followed correctly,” he said.

Azizul said the collusion between fly-by-night architects and unscrupulous contractors exacerbates the problem.

"Some of these fly-by-night architects are becoming bolder, claiming to be architects, using construction companies’ names, forging signatures on submission plans, telling clients they've submitted plans, faking PBT approval letters, and installing construction signboards," he said.

He also said that some officers in the PBT’s Building Department act as fly-by-night architects to make extra money by offering to prepare and approve plans for first-time applicants.

VICTIMS FROM VARIOUS BACKGROUNDS

Azizul shared that his clients come from diverse backgrounds, including civil servants who secure loans through the Public Sector Home Financing Board (LPPSA), retired government employees wanting to build homes, and semi-professionals working in the private sector.

"I've met clients, including a couple in their 30s, who were in tears, regretting their mistakes of not gaining enough knowledge before hiring contractors and architects. They ended up spending all their money on the contractor, paying up to RM340,000, with the project progress not even reaching 20 per cent," he said.

Most victims realise they've been deceived only when their funds run low, and construction work remains unfinished.

"They paid without consulting an architect about the appropriate amount. If someone had controlled the payments, they wouldn't have been scammed. This highlights the importance of professional architects who also serve as project overseers, not just plan designers," he said.

He said these fly-by-night architects are becoming more prevalent because many victims choose not to report the fraud out of embarrassment and acknowledgment of their own mistakes. This reluctance encourages the fly-by-night architects, especially when they collude with unscrupulous contractors.

When asked how many victims have successfully recouped their money after being scammed, Azizul said, "Almost none”.

"It's challenging to take them to court because victims often feel too ashamed to file a report, knowing their own mistakes. The contracts provided by the contractors are usually unfair to the homeowners, and the court will examine these agreements," he said.

Furthermore, some victims are unwilling to pursue legal action given the high costs of hiring lawyers and the significant time and effort required, especially when they are already financially strapped, said Azizul. - BERNAMA