THE PRESENCE OF SYUBHAH IN THE PROCUREMENT PROCESS AND PROVISIONS OF CONSTRUCTION CONTRACTS

Authors

DOI:

https://doi.org/10.33102/mjsl.vol12no3.680

Keywords:

Consturction, contract, procurement, philanthropy, shariah-compliant, syubhah

Abstract

In the procurement of Islamic philanthropic-funded religious and socio-economic infrastructures and facilities perhaps there exist elements of Syubhah or “uncertain” or “doubtful” matters. Consequently, a qualitative study – combining desk research and discussions with Shariah and construction industry experts – was carried out. The study critically examines whether the construction procurement processes, and contract provisions used therein are consistent with the requirements of the Shariah or otherwise. The outcome of the study suggests the majority of the procurement processes and contract provisions are consistent with the principles of the Shariah, but some are not outright non-compliance hence, suggesting the presence of syubhah. The study and its findings are considered significant in the following ways: (i) a breakthrough for the construction industry’s effort to practice Shariah compliance in its dealings, (ii) a reference for the authorities responsible for the procurement of Islamic philanthropic-funded religious infrastructures and facilities to be more aware of the requirements of the Shariah and (iii) acts as a prelude in the effort to establish Shariah-compliant standards and guidelines on the procurement of  Islamic philanthropic-funded religious and socio-economic infrastructures and facilities.

Downloads

Download data is not yet available.

References

Abdel Mohsin, M. I. (2016). Financing the development of old waqf properties: Classical principles and innovative practices around the world. Palgrave Macmillan. DOI: https://doi.org/10.1057/978-1-137-58128-0

Abdul Rashid, K. (2002). Construction procurement in Malaysia: Processes and systems, constraints and strategies. International Islamic University Malaysia.

Abdul Rashid, K. (2009). Shariah-compliant contract: A new paradigm in multinational joint ventures for construction works. In Kobayashi, K., Abdul Rashid, K., Ofori, G., & Ogunlana, S. (Eds.), Joint ventures in construction (pp. 65–85). Thomas Telford.

Abdul Rashid, K. (2019). Validity of istisna for construction works contracts. In Abdul Rashid, K., Kobayashi, K., Hassan, S. F., & Onishi, M. (Eds.), Concept and application of shariah for the construction industry: Shariah compliance in construction contracts, project finance and risk management (pp. 122–141). World Scientific. DOI: https://doi.org/10.1142/10957

Abdul Rashid, K. (2022). Are contract provisions used in the procurement of Islamic philanthropic facilities compliant with the Shariah?. In Proceedings of the 1st ASEAN Quantity Surveying Association (AQSA) Academic Conference. https://anyflip.com/jdvri/ujoh

Abdul Rashid, K., & Hassan, S. F. (2021, November). Applicability of Islamic philanthropy in the provision of affordable housing in smart cities. In Proceeding of the 1st Conference on Asian Inclusive Smart Cities in the Post-COVID-19 Arena (pp. 1-14). https://aisc-asia.org/research/applicability-of-islamic-philanthropy-in-the-provision-of-affordable-housing-in-smart-cities/

Abdul Rashid, K., Fauzi, M., & Farah Naadia, P. N. (2017). iProcure or shariah-compliant procurement framework for waqf and zakat funded buildings and infrastructure works. In Proceedings of the Muktamar Waqf Iqlimi IV, (pp. ). Faculty of Economic and Muamalat. http://hdl.handle.net/20.500.12424/3954249

Abdul Rashid, K., Hassan, S. F., & Azila, A. S. (2014). Proposed waqf-zakat-real estate developer joint venture to address the problem of affordable housing for low- and middle-income Muslim families. In Proceedings of the 2nd World Conference on Islamic Thoughts and Civilization (WCIT), (pp. 1-6). https://doi.org/10.1051/matecconf/2019

Abdul Rashid, K., Hassan, S. F., Puteri, N. F. N. M. F., Azila, A. S., & Nur Syaimasyaza, M. (2017). Permissibility of waqf in the provision of affordable housing. Journal of Computational and Theoretical Nanoscience, 24(7), 4922-4925. DOI: https://doi.org/10.1166/asl.2018.11235

Abdul Rashid, K., Puteri, N. F. N. M. F., & Hassan, S. F. (2017). Shariah principles in the procurement of buildings and infrastructure works. In Proceedings of the 4th International Conference on Masjid, Zakat, Waqf Management, (pp. 223-231). Kolej Universiti Islam Antarabangsa Selangor, Bangi, Selangor, Malaysia. https://conference.uis.edu.my/i-maf/eproceedings/images/eproceedings/2017/223-231-imaf-2017.pdf

Abdullah, M. I., & Ibhraim, M. R. (2017). Kaedah penentuan syubhah menurut pandangan Imam Al-Ghazali. In Proceedings of the 3rd Muzakarah Fiqh and International Fiqh Conference, (pp. 190-196). Faculty of Syariah and Law, Universiti Islam Selangor. https://conference.uis.edu.my/mfifc/images/e-proceeding/2017/190-196-mfifc-3rd.pdf

Adlie, S. (2020, December 30). “Irsyad Al-Fatwa siri ke-538: Hukum memakan daging yang disangkakan halal kemudian berlaku syubhah”. Kuala Lumpur: Pejabat Mufti Wilayah Persekutuan. https://muftiwp.gov.my/artikel/irsyad-fatwa/irsyad-fatwa-umum/4641-irsyad-al-fatwa-siri-ke-538-hukum-memakan-daging-yang-disangkakan-halal-kemudian-berlaku-syubhah

Al-Amine, M. (2001). Istisna’ (manufacturing contract) in Islamic banking and finance. A.S. Noordeen.

Al-Ghazali, A. H. M. (1993). Revival of religious learnings: Imam Ghazzali's Ihya Ulum-id-Din (Fazl-ul-Karim, Trans.). Darul-Ishaat.

Alias, M. A. A., Mohd Jailani, M. R., Wan Ismail, W. A. F., & Baharuddin, A. S. (2024). The integration of five main goals of Shariah in the production of science and technology for human well-being. AL-MAQASID: The International Journal of Maqasid Studies and Advanced Islamic Research, 5(1), 1–16. https://doi.org/10.55265/al-maqasid.v5i1.79

Azman, M. N., & Saidatolakma, M. Y. (2012). The application of BOT contract as a mode of financing in developing waqf land: Malaysia experience. In Kobayashi, K., Abdul Rashid, K., Onishi, M., & Hassan, S. F. (Eds.), Joint ventures in construction 2 (pp. 91–109). Thomas Telford.

Baharin, N., Siraj, S. A., Mohd Ariffin, N., & Osman@Husin, A. Z. (2023). Stakeholders’ information needs for sustaining waqf: Development of theoretical framework. AL-MAQASID: The International Journal of Maqasid Studies and Advanced Islamic Research, 4(2), 1–17. https://doi.org/10.55265/almaqasid.v4i2.58

Bank Negara Malaysia. (2015). “Istisna’”. Official website of Bank Negara Malaysia. https://bnm.gov.my

Billah, M. M. (2006). Shariah standard of business contracts. A.S. Noordeen.

Djumikasih, D., Luth, T., Budiono, A. R., & Koeswahyono, I. (2021). The Notion of Divine Principle (Asas Ilahiah) in Indonesian Contract Law. Brawijaya Law Journal, 8(1), 147–158. https://doi.org/10.21776/ub.blj.2021.008.01.09 DOI: https://doi.org/10.21776/ub.blj.2021.008.01.09

Government of Malaysia. (2010). Standard form of contract to be used where bills of quantities form part of the contract P.W.D. 203A (Rev.1/2010). Kuala Lumpur: Government of Malaysia.

Husni, H., & Khairat, M. (2024). Penetration of muamalah jurisprudence into Indonesian law. Al-Istinbath: Jurnal Hukum Islam, 9(2), 699–722. https://doi.org/10.29240/jhi.v9i2.11116 DOI: https://doi.org/10.29240/jhi.v9i2.11116

Iffah Madihah, A. F. (2018). Application of shariah-compliant bills of quantities in the procurement of waqf projects [Undergraduate dissertation, International Islamic University Malaysia]. International Islamic University Malaysia Research Repository.

Ismail, A. Y., & Abdullaah, J. (2019). An analysis of syubhah in Islamic bank’s money creation. In Proceedings of the 5th Muzakarah Fiqh and International Fiqh Conference, (pp. 199-211). http://conference.kuis.edu.my/mfifc/images/E-Proceeding-2019/16-Syubhah-Ahmad_Yani.pdf

Jais, A. S. (2010). “Halal practices in foodservice operation (2nd ed.)”. Academia https://www.academia.edu/5435963/Halal_compendium

Mohamad Yunus, A., Wan Chik, M. Y., & Mohamad, M. (2010). “The concept of halalan tayyiba and its application in products marketing: A case study at Sabasun HyperRuncit, Kuala Terengganu, Malaysia”. ResearchGate. https://www.researchgate.net/publication/259392236

Mohd Safian, Y. H. (2023, May 31). “Berhati-hati dalam perkara syubhah”. Utusan Malaysia. https://www.utusan.com.my/gaya/2023/05/elak-perkara-syubhah/

Noordin, M. F. (2020). “Al-Kafi #1508: The ruling of working in a delivery company which delivers intoxicants”. Mufti of Federal Territory’s Office. https://muftiwp.gov.my/en/artikel/al-kafi-li-al-fatawi/3950-al-kafi-1508-the-ruling-of-working-in-a-delivery-company-which-delivers-intoxicants

Nurul Natasha Amira, M. S. (2018). Tendering process and criteria used in the selection of contractors for waqf and zakat projects [Undergraduate dissertation, International Islamic University Malaysia]. International Islamic University Malaysia Research Repository.

Pertubuhan Arkitek Malaysia. (2018). Agreement and conditions of PAM Contract 2018 (with quantities). Pertubuhan Arkitek Malaysia.

Qal’ahji, M. R. (2005). Urusan kewangan semasa menurut perspektif Syariah Islam (B. Ibrahim, Trans.). Al-Hidayah.

Yayasan Waqaf Malaysia. (n.d.). “Produk waqf”. Official website of Yayasan Waqaf Malaysia. https://www.ywm.gov.my/produk-waqf#sijil-waqf-tunai-ekonomi

Published

2024-12-31

How to Cite

Abdul Rashid, K., Hasan, S. F., & Sahari, N. H. (2024). THE PRESENCE OF SYUBHAH IN THE PROCUREMENT PROCESS AND PROVISIONS OF CONSTRUCTION CONTRACTS. Malaysian Journal of Syariah and Law, 12(3), 620–632. https://doi.org/10.33102/mjsl.vol12no3.680