Delivering truly vacant possession goes beyond handing over keys. Under the Housing Development (Control and Licensing) Act 1966 and its subsidiary Housing Development (Control and Licensing) Regulations 1989, water and electricity must be fully live at handover. Recent Federal Court guidance in Remeggious Krishnan v SKS Southern Sdn Bhd [2023] 3 MLRA 386 clarified that administrative approvals alone are not enough. Meters must be installed, tested and commissioned so utilities flow into each unit the moment buyers take possession. Rather than fighting disputes at the tribunal stage, developers benefit from embedding compliance checkpoints into every project phase, from design through commissioning and handover. This article provides checklist, dashboards and scorecards to turn legal duties into on-site actions.
Legal and Judicial Backdrop
The statutory sale and purchase agreement (SPA) prescribed by the HDR is a social contract designed to protect homebuyers. In Remeggious Krishnan, the Federal Court rejected the developer’s argument that “ready for connection” meant mere administrative approvals or building-level infrastructure. It held that developers are obliged to install, test, and commission utility meters so that electricity and water supply flow directly into each unit.
High Court decisions in Khoo Soon Lee Realty Sdn Bhd v Tribunal Tuntutan Pembeli Rumah [2020] 1 LNS 828 and Bandar Eco-Setia Sdn Bhd v Tribunal Tuntutan Pembeli Rumah [2020] 1 MLRHU 663 reinforced this functional standard. Courts will not allow a narrow, technical compliance that leaves purchasers holding keys to a unit without usable utilities.
Key Risks of Failure to Provide Live Utilities
Developers face three core risks if utility-connection obligations fail:
•Compensatory Damages: Breach of Clause 27(1)(c) allows purchasers to claim actual losses arising from an inability to use water or electricity upon handover.
•Liquidated Ascertained Damages (LAD): Delays in meter installation or deposit payment can trigger daily LAD under Clause 25, even if practical completion has been certified.
•Reputational Damage: As Housing Tribunal awards are public records, any adverse decisions of the tribunal would undermine buyer confidence, affect resale value, and invite regulatory scrutiny.
Operational Playbook for Utility Readiness
A robust operational playbook transforms legal requirements into practical on-the-ground actions. It starts with a cross-functional kickoff meeting that brings together legal counsel, engineering, procurement, quality assurance, and commercial teams. Establishing this collaboration early ensures that obligations under the SPA and handover requirements are fully understood and embedded into the construction timeline. Simultaneously, meter-installation applications and deposit payments to Tenaga Nasional Berhad and SYABAS should be submitted once the project reaches a set interim target completion, for example, once the project reaches 50% completion. Tracking these milestones in project management system would prevent last-minute surprises.
As construction progresses, a centralized dashboard becomes the nerve center for utility readiness. This tracker records meter order dates, vendor appointments, deposit receipts, and expected installation slots, providing real-time visibility across teams. Appointing a dedicated procurement lead to liaise with TNB/SYABAS and third-party installers keeps communication channels open and ensures firm commitment dates. Once the meters are delivered to the site, the electrical and plumbing teams start working closely together to get everything ready for the official inspection and handover.
Before a building is handed over, it goes through final technical checks.
Developers need official confirmation from TNB (for electricity) and SYABAS (for water) that the meters are properly installed and the supply is live. At the same time, the internal team runs checks to make sure everything works as it should, including testing the electrical switchboards, water pressure, and devices that prevent water from flowing backward. If any issues come up during these tests, they can be fixed on the spot to prevent delays or disputes. By the time furniture and keys are ready to be handed over, these confirmed checks help ensure everything runs smoothly.
The last step combines process and documentation in a unified handover protocol. All required items such as keys, Certificate of Completion and Compliance, commissioning certificates, and utility-connection confirmation are consolidated into a single sign-off form. Purchasers verify meter numbers, record voltage and flow readings, and acknowledge receipt of a fully operational unit before signing. This comprehensive approach ensures that legal obligations under the SPA translate into a liveable home upon handover.
Co-created Performance Scorecards
To keep everyone accountable, goals need to be clear and measurable.
When developers involve buyers or their representatives in choosing what success looks like, it builds trust and ensures everyone is on the same page. Useful performance indicators might include how many days it takes from the deposit payment to getting the meters installed, how often everything passes inspection the first time, how quickly live water and electricity are available after the certificate of completion and compliance is issued and the percentage of units handed over with utilities already running on handover day.
Once these measures are agreed on, monthly dashboards become powerful tracking tools to show progress against targets, flag bottlenecks early and highlight milestones. Regular check-ins with the legal, operations, and sales teams help keep focus sharp and solve problems fast when things go off track. Over time, steady reporting helps improve the way things are done and lowers the chance of disputes or legal claims after handover.
Conclusion and Next Steps
Delivering a home that is both structurally complete and fully connected is more than a best practice, it is a statutory requirement under the Housing Development Act. Embedding clear operational blueprints and co-created scorecards into project governance will mitigate damage claims, streamline handovers, and bolster reputation of a property developer for on-time delivery.
About the authors
Tan Poh Yee
Senior Associate
Learning & Development
Halim Hong & Quek
pohyee.tan@hhq.com.my
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Darren Goh Wey Hong
Associate
Real Estate
Halim Hong & Quek
darren.goh@hhq.com.my
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