The definition of 'construction works' under the CIDB Act encompasses both construction and related non-construction components for levy purposes.

[1] Lembaga Pembangunan Industri Pembinaan Malaysia (the appellant) is a statutory body established under the Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994 (the Act). The Act in brief, empowers the appellant to be a one stop body to promote, and stimulate the development and improvement and expansion of the construction industry in Malaysia. The statutory powers and many functions of the appellant are laid down in ss 3 and 4(1) of the Act. For clarification, hereinafter any section mentioned in this ground of judgment refers to the section of the Act, unless stated otherwise.

[2] Under s 34(2), the appellant is authorised to impose on every registered contractor (but before the commencement of any construction works having a contract sum of above RM 500,000) a levy of a quarter per centum of the contract sum. That levy is funneled to a fund set up under s 15 to enable the appellant to discharge its functions pursuant to the Act.

[3] 'Contract sum', as legislated under s 34(2), is defined under subsection (8) of s 34 to mean "the consideration for a contract in respect of any construction works". "Construction works" is defined in s 2 as follows:

"construction works" means the construction, extension, installation, repair, maintenance, renewal, removal, renovation, alteration, dismantling, or demolition of:

(a) any building, erection, edifice, structure, wall, fence or chimney, whether constructed wholly or partly above or below ground level;

(b) any road, harbour works, railway, cableway, canal or aerodrome;

(c) any drainage, irrigation or river control works;

(d) any electrical, mechanical, water, gas, petrochemical or telecommunication works; or

(e) any bridge, viaduct, dam, reservoir, earthworks, pipeline, sewer, aqueduct, culvert, drive, shaft, tunnel or reclamation works,

and includes any works which form an integral part of, or preparatory to or temporary for the works described in paras (a) to (e), including site clearance, soil investigation and improvement, earthmoving, excavation, laying foundation, site restoration and landscaping."

[4] The appellant under reg 6(1) of the Construction Industry (Collection of Levy) Regulations 1996 (1996 Regulations) is the relevant authority that determines the contract sum of the construction works, for purposes of the amount of levy. Hereinafter any regulation mentioned will refer to a regulation in the 1996 Regulations unless stated otherwise. By reg 6(2), in determining the contract sum, the appellant may take into consideration the following factors:

(a) the consideration in respect of any construction works contained in the letter of acceptance, letter of award or any document that constitutes acceptance relating to the construction works;

(b) the consideration in respect of any construction works in the contract which is signed by the parties thereto; or

(c) the particulars and information in respect of the consideration relating to the execution of any contract on any construction works contained in any relevant document.

[5] In support of its appeal the appellant also alludes to the contract documents exchanged between the owner and the contractor

[6] The seriousness of the Act is reflected adequately in s 34(5), which legislates that when a registered contractor fails to pay any levy due within a prescribed period, the contractor shall be guilty of an offence, and shall on conviction be liable to a fine not exceeding of RM50,000.

[7] The respondent is a registered contractor under the Act and is a consortium of five contractors, comprising two foreign parties and three Malaysians (collectively