Agreement Between Developer And Contractor for Malaysia

Agreement Between Developer And Contractor Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the contractual relationship between a property developer and a construction contractor. This document outlines the terms and conditions for construction works, including scope, payment terms, timelines, and quality requirements, while ensuring compliance with Malaysian construction regulations including the Construction Industry Development Board Act 1994 and the Construction Industry Payment and Adjudication Act 2012. It provides detailed provisions for project execution, risk allocation, dispute resolution, and includes specific requirements for local building standards and practices.

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What is a Agreement Between Developer And Contractor?

The Agreement Between Developer And Contractor is a fundamental document in Malaysian construction projects, essential for establishing the legal and operational framework between property developers and construction contractors. This agreement is particularly crucial in Malaysia's rapidly developing construction sector, where it must comply with specific local regulations including the Construction Industry Development Board Act 1994 and CIPAA 2012. The document is typically used when a developer engages a contractor to undertake construction works, whether for commercial, residential, or infrastructure projects. It includes comprehensive provisions for project execution, payment mechanisms, quality standards, dispute resolution, and risk allocation, while addressing specific Malaysian regulatory requirements and industry practices. The agreement serves as the primary reference point for project management and dispute resolution throughout the construction period.

What sections should be included in a Agreement Between Developer And Contractor?

1. Parties: Identification of the Developer and Contractor, including registration details and addresses

2. Background: Context of the agreement, brief project description, and Developer's authority to undertake the project

3. Definitions and Interpretation: Detailed definitions of terms used in the agreement and rules of interpretation

4. Scope of Works: Detailed description of construction works to be performed by the Contractor

5. Contract Sum and Payment Terms: Agreed contract price, payment schedule, and payment procedures compliant with CIPAA 2012

6. Project Timeline: Commencement date, completion date, project milestones, and provisions for extensions of time

7. Contractor's Obligations: Detailed responsibilities including workmanship, materials, compliance with laws and standards

8. Developer's Obligations: Developer's responsibilities including site access, approvals, and information provision

9. Quality and Standards: Required quality standards, inspection procedures, and acceptance criteria

10. Variations: Procedures for handling changes to scope, pricing of variations, and approval process

11. Insurance and Indemnity: Required insurance coverage and indemnification obligations

12. Defects Liability: Defects liability period, rectification procedures, and warranties

13. Termination: Grounds for termination, termination procedures, and consequences

14. Dispute Resolution: Procedures for dispute resolution including mediation, arbitration, and governing law

15. General Provisions: Standard clauses including notices, assignment, entire agreement, and severability

What sections are optional to include in a Agreement Between Developer And Contractor?

1. Performance Bond: Requirements for performance security, applicable when required by the Developer

2. Environmental Requirements: Specific environmental protection measures, used for projects with significant environmental impact

3. Green Building Requirements: Special requirements for green building certification, if pursuing specific certifications

4. Heritage Conservation: Special provisions for projects involving heritage buildings or sites

5. Advance Payment: Terms for advance payment and recovery, if advance payment is provided

6. Nominated Sub-Contractors: Provisions for handling nominated sub-contractors, if any

7. Technology and BIM Requirements: Specific requirements for Building Information Modeling and other technology use

8. Value Engineering: Provisions for value engineering proposals and sharing of cost savings

9. Intellectual Property Rights: Provisions regarding design rights and other IP, relevant for design-build contracts

What schedules should be included in a Agreement Between Developer And Contractor?

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings

2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of contract sum including bill of quantities

3. Schedule 3 - Project Timeline: Detailed construction schedule with milestones

4. Schedule 4 - Payment Schedule: Detailed payment terms, milestones, and procedures

5. Schedule 5 - Site Details: Site plan, access points, and site conditions

6. Schedule 6 - Quality Assurance Plan: Detailed quality standards and testing requirements

7. Schedule 7 - List of Approved Materials: Specifications and brands of approved construction materials

8. Schedule 8 - Forms and Certificates: Standard forms for variations, completion certificates, etc.

9. Schedule 9 - Insurance Requirements: Detailed insurance coverage requirements and minimum limits

10. Schedule 10 - Key Personnel: List of key personnel from both parties with roles and contact details

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate Development

Construction

Infrastructure

Commercial Property

Residential Property

Industrial Development

Retail Development

Hospitality

Healthcare Facilities

Educational Facilities

Relevant Teams

Legal

Construction

Development

Project Management

Commercial

Finance

Operations

Procurement

Compliance

Risk Management

Technical Services

Relevant Roles

Development Director

Construction Manager

Project Manager

Contract Manager

Legal Counsel

Quantity Surveyor

Site Supervisor

Chief Executive Officer

Technical Director

Commercial Director

Risk Manager

Compliance Officer

Finance Director

Operations Manager

Procurement Manager

Industries
Contracts Act 1950: Primary legislation governing contract formation, validity, and enforcement in Malaysia, essential for establishing the basic contractual relationship between developer and contractor
Construction Industry Development Board Act 1994: Regulates the construction industry and contractor registration requirements, ensuring contractors meet necessary qualifications and standards
Housing Development (Control and Licensing) Act 1966: Governs housing development projects, including requirements for developers and protection of homebuyers' interests
Arbitration Act 2005: Provides framework for dispute resolution in construction contracts, often referenced in developer-contractor agreements
Construction Industry Payment and Adjudication Act 2012 (CIPAA): Regulates payment mechanisms and dispute resolution in construction contracts, ensuring timely payments and fair practices
Occupational Safety and Health Act 1994: Establishes safety requirements and standards for construction sites and worker protection
Street, Drainage and Building Act 1974: Sets requirements for building works, structural standards, and local authority approvals
Workmen's Compensation Act 1952: Governs compensation for workers in case of work-related injuries or accidents during construction
Environmental Quality Act 1974: Regulates environmental protection requirements during construction activities
Stamp Act 1949: Governs the stamping requirements for making the agreement legally enforceable in Malaysia
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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