Approvals & Compliance in a Joint Venture (JV) with HCK

Who Is Responsible for What?

When landowners explore a joint venture (JV) with HCK, one of the most important questions is:

“Who handles approvals, and who carries the compliance risk?”

Property development in Malaysia involves multiple layers of authority submissions, planning permissions, technical approvals, and regulatory compliance. In most JV structures, HCK leads the approvals process — but the exact responsibilities are clearly defined in the JV agreement.

Below is a general overview of how approvals and compliance are typically handled in a JV.

1) What “Approvals & Compliance” Actually Covers

Approvals aren’t just one submission — they include an entire chain of regulatory steps, such as:

Planning approvals (development order / kebenaran merancang)
Land conversion (if needed)
Subdivision or amalgamation (if needed)
Building plan approvals
Engineering and infrastructure approvals
Utility approvals (water, TNB, sewerage, telecom)
Fire safety and BOMBA requirements
Environmental compliance (if applicable)
CCC (Certificate of Completion and Compliance)

In short: approvals govern whether the project can be legally built, marketed, and delivered.

2) Who Typically Leads the Approvals Process?

In most joint ventures:

✅ HCK leads and manages the approvals process.

This includes:

appointing consultants
coordinating submissions
engaging with local authorities
responding to authority feedback
managing timelines and compliance requirements

This is one of the main reasons landowners partner with a developer — because approvals are complex, time-consuming, and require specialist expertise.

3) What the Landowner Is Usually Responsible For

Even when HCK leads, landowners often play a supporting role.

Landowners typically provide:

Proof of ownership and title documents
Consent signatures (where required)
Cooperation if multiple owners are involved
Any historical land information (previous submissions, restrictions, issues)

In some cases, landowners may also need to support:

appointment of lawyers for land documentation
resolution of title issues (if any exist)
clarification of boundaries or access

4) Land Conversion & Zoning: Who Handles It?

A common landowner question is:

“If my land isn’t zoned for development yet, who handles conversion?”

In most JVs:

HCK manages the process, including consultants and submissions.
The JV agreement will specify:
- whether conversion is a condition precedent
- who bears the cost
- what happens if conversion is rejected

Important note:
Land conversion and zoning changes are not guaranteed. A feasibility assessment is usually done early to evaluate the likelihood of approval.

5) Who Pays for Approval Costs?

Approval and compliance work includes costs like:

consultants’ fees
submission fees
infrastructure contributions
authority requirements
utility upgrade costs

In most JV models, these costs are treated as project development costs.

Meaning:

They are paid by the JV/project, and
They are included in the financial model before profit distribution.

However, the agreement may clarify:

whether any costs are capped
how early-stage costs are handled before JV signing
what happens if the project does not proceed

6) Who Appoints Consultants and Submitting Parties?

Approvals usually require a professional team, such as:

Architect
Town planner
Civil & structural engineer
M&E engineer
Quantity surveyor
Land surveyor
Traffic consultant
Environmental consultant (if required)

Typically:

HCK appoints and manages these consultants.
Landowners may have visibility into appointments depending on governance terms.

7) What Happens If Approvals Are Delayed or Rejected?

This is a key risk question — and a very reasonable one.

In a JV, the agreement typically defines:

what counts as an approval “milestone”
expected timelines (best-effort basis)
who makes decisions if authorities request changes
what happens if approvals are:
- delayed
- partially granted
- rejected

In some JV structures, the landowner may request:

a longstop date
exit clauses
renegotiation triggers if development intensity changes significantly

8) Compliance During Construction (Safety, Standards, Inspections)

Once approvals are obtained and construction begins, compliance shifts into a different stage.

This includes:

site safety compliance
contractor compliance
inspection requirements
BOMBA compliance
engineering sign-offs
quality and defect tracking
progress certification

Typically:

HCK manages compliance through:

the appointed project manager
consultants and engineers
contractor supervision
authority inspections and sign-offs

9) CCC (Certificate of Completion and Compliance): Who Ensures It?

A major milestone in any development is achieving CCC.

CCC is essential because it enables:

legal handover to buyers
occupation of units
final settlements
completion recognition

In most JVs:

HCK is responsible for coordinating and ensuring CCC is obtained.
The JV agreement may specify responsibilities if CCC is delayed.

10) How Landowners Stay Protected (Visibility & Governance)

Since approvals and compliance involve risk, many landowners ask:

“How do I know things are being done properly?”

A well-structured JV typically includes:

monthly reporting
progress updates on approvals
key milestone notifications
governance rights on major decisions (if agreed)

Landowners may also request transparency around:

approval timelines
cost changes tied to authority requirements
major design revisions required by authorities