Agreement Between Two Parties For Construction Contract for Malaysia

Agreement Between Two Parties For Construction Contract Template for Malaysia

This document is a comprehensive construction contract agreement governed by Malaysian law, designed to establish and regulate the legal relationship between two contracting parties in a construction project. It incorporates requirements from key Malaysian legislation including the Contracts Act 1950, Construction Industry Development Board Act 1994, and the Construction Industry Payment and Adjudication Act 2012 (CIPAA). The agreement covers essential aspects such as scope of works, payment terms, project timeline, quality standards, safety requirements, and dispute resolution mechanisms, while ensuring compliance with local building regulations and industry standards.

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What is a Agreement Between Two Parties For Construction Contract?

The Agreement Between Two Parties For Construction Contract is a fundamental legal document used in the Malaysian construction industry to formalize construction project arrangements between two contracting entities. This document is essential when undertaking any significant construction work in Malaysia, whether for commercial, residential, or industrial projects. It ensures compliance with Malaysian construction laws and regulations, including the CIDB Act, CIPAA, and relevant building codes. The agreement encompasses crucial elements such as project scope, payment terms, timelines, quality standards, and dispute resolution mechanisms, while incorporating specific Malaysian legal requirements and industry practices. It serves as the primary reference document throughout the project lifecycle, protecting both parties' interests and providing clear guidelines for project execution.

What sections should be included in a Agreement Between Two Parties For Construction Contract?

1. Parties: Identification and details of the contracting parties (employer/owner and contractor)

2. Background: Context of the agreement and brief description of the construction project

3. Definitions: Detailed definitions of terms used throughout the agreement

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

5. Contract Sum and Payment Terms: Agreement on pricing, payment schedule, and payment mechanisms in compliance with CIPAA 2012

6. Project Timeline: Construction schedule, milestone dates, and completion deadlines

7. Contractor's Obligations: Detailed responsibilities and duties of the contractor

8. Employer's Obligations: Detailed responsibilities and duties of the employer

9. Quality Standards and Compliance: Required quality standards, building codes, and compliance requirements

10. Health, Safety and Environmental Requirements: Safety protocols and environmental compliance requirements

11. Variations and Changes: Procedures for handling changes to scope, specifications, or timeline

12. Insurance and Indemnities: Required insurance coverage and indemnification provisions

13. Default and Remedies: Events of default and available remedies for both parties

14. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration

15. Termination: Grounds and procedures for contract termination

16. General Provisions: Standard legal provisions including notices, governing law, and assignment

What sections are optional to include in a Agreement Between Two Parties For Construction Contract?

1. Performance Bond: Required when project value exceeds certain threshold or when specifically requested by employer

2. Intellectual Property Rights: Needed when design elements or proprietary technology are involved

3. Defects Liability Period: Specific provisions for post-completion warranty period

4. Liquidated Damages: Specific provisions for compensation in case of delay or default

5. Force Majeure: Provisions for handling unforeseen circumstances and acts of God

6. Subcontractor Provisions: Required when subcontractors will be engaged

7. Materials and Equipment: Detailed provisions about supply and ownership of materials when significant procurement is involved

8. Site Access and Facilities: Specific provisions when site access or facilities need special arrangements

9. Environmental Management Plan: Required for projects with significant environmental impact

What schedules should be included in a Agreement Between Two Parties For Construction Contract?

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

2. Schedule 2 - Project Timeline: Detailed construction schedule with milestones

3. Schedule 3 - Bill of Quantities: Itemized list of quantities and prices

4. Schedule 4 - Payment Schedule: Detailed payment terms and milestone payments

5. Schedule 5 - Site Information: Site details, access points, and existing conditions

6. Schedule 6 - Quality Assurance Plan: Detailed quality control procedures and standards

7. Schedule 7 - Health and Safety Requirements: Detailed safety procedures and requirements

8. Appendix A - Required Permits and Licenses: List of required regulatory approvals

9. Appendix B - Insurance Requirements: Detailed insurance coverage requirements

10. Appendix C - Forms and Notices: Standard forms for variations, completion certificates, etc.

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

Commercial Construction

Residential Development

Industrial Construction

Infrastructure Development

Public Works

Real Estate

Civil Engineering

Architecture

Interior Fit-out

Healthcare Construction

Educational Facilities

Retail Construction

Hospitality Construction

Mixed-use Development

Relevant Teams

Legal

Operations

Construction

Project Management

Commercial

Finance

Procurement

Risk Management

Technical Services

Quality Assurance

Business Development

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Quantity Surveyor

Site Supervisor

Project Director

Chief Executive Officer

Managing Director

Operations Manager

Procurement Manager

Finance Director

Risk Manager

Commercial Manager

Technical Director

Development Manager

Construction Director

Contracts Manager

Industries
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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