The Preliminary Agreement Building Contract is a crucial document in Malta's construction and property development landscape, serving as a binding preliminary agreement (konvenju) between property owners and contractors. It is typically used when parties have agreed in principle to a construction project but need to establish formal terms while certain conditions (such as permits, financing, or technical assessments) are being fulfilled. The document must comply with Malta's Civil Code, Building Regulation Act, and related legislation, requiring notarial involvement for validity. It includes essential details about the proposed construction, payment terms, conditions precedent, and timeframes, while protecting both parties' interests during the period between initial agreement and final building contract execution. This type of agreement is particularly important in Malta's property market, where preliminary agreements have specific legal status and requirements.

1. Parties: Identification of the Contractor and the Employer, including full legal names, registration numbers (if companies), ID numbers, and addresses

2. Background: Context of the agreement, including property details, intended construction project, and any relevant planning permits or applications

3. Definitions: Definitions of key terms used throughout the agreement, including technical construction terms

4. Subject Matter of Agreement: Clear description of the property and proposed construction works covered by the preliminary agreement

5. Duration and Timelines: Validity period of the preliminary agreement and key milestone dates

6. Consideration and Payment Terms: Agreed price, deposit amount, and payment schedule

7. Conditions Precedent: Prerequisites that must be fulfilled before proceeding to the final contract, including planning permits and other authorizations

8. Contractor's Obligations: Primary responsibilities of the contractor during the preliminary period

9. Employer's Obligations: Primary responsibilities of the employer during the preliminary period

10. Representations and Warranties: Key assurances made by both parties

11. Termination: Circumstances under which the agreement may be terminated and consequences

12. Governing Law and Jurisdiction: Confirmation of Maltese law as governing law and jurisdiction

13. Execution: Signature blocks and execution formalities