Construction Agreement Between Client And Contractor for Malaysia

Construction Agreement Between Client And Contractor Template for Malaysia

A comprehensive construction agreement governed by Malaysian law that establishes the legal relationship between a client (project owner) and a contractor for the execution of construction works. The agreement complies with Malaysian construction legislation, including the Construction Industry Development Board Act 1994 and the Construction Industry Payment and Adjudication Act 2012. It covers all essential aspects of the construction project including scope of works, payment terms, timeline, quality requirements, safety standards, and dispute resolution mechanisms, while incorporating specific Malaysian regulatory requirements and industry practices.

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What is a Construction Agreement Between Client And Contractor?

The Construction Agreement Between Client And Contractor is a fundamental legal document used in the Malaysian construction industry to establish and regulate the contractual relationship between a project owner and a construction contractor. This agreement is essential for any construction project in Malaysia, whether commercial, residential, or infrastructure development. It must comply with key Malaysian legislation including the CIDB Act 1994, CIPAA 2012, and relevant building and safety regulations. The document typically includes comprehensive provisions for project execution, payment mechanisms, quality standards, dispute resolution, and risk allocation, while incorporating specific Malaysian regulatory requirements and industry standards. It's designed to protect both parties' interests while ensuring smooth project delivery within the Malaysian legal framework.

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

1. Parties: Identification of the Client and Contractor, including registration details and CIDB license information

2. Background: Context of the construction project, including brief project description and basis for engagement

3. Definitions and Interpretation: Key terms used in the agreement and rules for interpreting the contract

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

5. Contract Sum and Payment Terms: Agreed price, payment schedule, and mechanisms complying with CIPAA requirements

6. Time for Completion: Project timeline, completion date, and provisions for extensions of time

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

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

9. Variations: Process for managing changes to scope, pricing, and approval mechanisms

10. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria

11. Health, Safety and Environment: Safety requirements, environmental compliance, and site management obligations

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

13. Defects Liability: Defects liability period and rectification obligations

14. Termination: Grounds and procedures for contract termination by either party

15. Dispute Resolution: Procedures for dispute resolution including CIPAA adjudication and arbitration

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

1. Performance Bond: Required when project value exceeds certain threshold or client requires additional security

2. Advance Payment: Include when advance payment is to be made to contractor with associated guarantees

3. Nominated Subcontractors: Include when client will nominate specific subcontractors for certain works

4. Intellectual Property Rights: Include for projects involving design elements or proprietary systems

5. Force Majeure: Detailed force majeure provisions for high-risk or long-duration projects

6. Testing and Commissioning: Required for projects involving mechanical, electrical, or complex systems

7. Liquidated Damages: Include when specific completion dates are critical and damages can be pre-estimated

8. Environmental Management: Detailed section required for environmentally sensitive projects

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

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

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

3. Schedule 3 - Project Timeline: Detailed construction schedule and key milestones

4. Schedule 4 - Payment Schedule: Payment terms, stages, and certification requirements

5. Schedule 5 - Site Details: Site information, access points, and restrictions

6. Schedule 6 - Required Insurances: Details of all required insurance policies and coverage

7. Schedule 7 - Forms and Certificates: Standard forms for variations, completion certificates, etc.

8. Schedule 8 - Quality Assurance Requirements: Quality standards and testing requirements

9. Appendix A - Drawings: Complete set of construction drawings

10. Appendix B - Technical Specifications: Detailed technical requirements and standards

11. Appendix C - Permits and Approvals: Copies of relevant permits and regulatory approvals

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

Construction

Real Estate Development

Infrastructure

Commercial Property

Industrial Development

Residential Development

Healthcare Facilities

Education Facilities

Hospitality

Retail Development

Mixed-use Development

Energy & Utilities

Relevant Teams

Legal

Operations

Commercial

Project Management

Construction

Procurement

Finance

Risk Management

Technical Services

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Contract Manager

Legal Counsel

Quantity Surveyor

Site Manager

Commercial Director

Operations Director

Chief Executive Officer

Project Engineer

Construction Director

Procurement Manager

Risk Manager

Finance Director

Technical Director

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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