Design And Construct Contract for Malaysia

Design And Construct Contract Template for Malaysia

A comprehensive contract template governed by Malaysian law that combines design and construction responsibilities into a single agreement. The document integrates requirements from key Malaysian legislation including the Construction Industry Development Board Act 1994, Architects Act 1967, and Construction Industry Payment and Adjudication Act 2012. It establishes the framework for design development, construction execution, quality standards, payment mechanisms, and dispute resolution procedures, while ensuring compliance with local regulatory requirements and industry standards.

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What is a Design And Construct Contract?

This Design And Construct Contract is specifically tailored for use in Malaysia, where it serves as a comprehensive agreement between project owners and contractors who take on both design and construction responsibilities. It is particularly suitable for complex projects where single-point responsibility is desired, such as infrastructure developments, commercial buildings, or industrial facilities. The document incorporates requirements from Malaysian construction law, including CIDB regulations, architectural and engineering professional requirements, and payment security provisions. It addresses key aspects such as design development, construction methodology, quality standards, testing and commissioning, while providing mechanisms for variations, dispute resolution, and risk allocation in accordance with Malaysian legal framework and industry practice.

What sections should be included in a Design And Construct Contract?

1. Parties: Identifies the contracting parties - typically the Employer and the Design-Build Contractor

2. Background: Sets out the context of the agreement and key assumptions

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Contractor's Obligations: Details the core design and construction obligations of the contractor

5. Employer's Obligations: Specifies the employer's duties including site access and payment

6. Contract Price and Payment: Details the contract sum, payment terms, and mechanisms

7. Time for Completion: Establishes project timeline, milestones, and completion requirements

8. Design Responsibilities: Specifies design obligations, standards, and approval processes

9. Quality and Workmanship: Sets standards for materials and workmanship

10. Variations: Procedures for changes to scope, price, or timeline

11. Testing and Completion: Requirements for testing, commissioning, and completion

12. Defects Liability: Obligations during defects liability period

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

14. Force Majeure: Handling of unforeseen events and their consequences

15. Suspension and Termination: Rights and procedures for suspension and termination

16. Dispute Resolution: Procedures for resolving disputes including arbitration

17. General Provisions: Standard contractual provisions including notices, governing law

What sections are optional to include in a Design And Construct Contract?

1. Performance Security: Required when performance bonds or guarantees are needed

2. Intellectual Property Rights: Important when design involves significant IP considerations

3. Environmental Obligations: Required for projects with significant environmental impact

4. Local Content Requirements: Needed when project must meet local content quotas

5. Interface Management: Required when multiple contractors are involved

6. Value Engineering: Optional provision for cost optimization proposals

7. Advance Payment: When advance payments are part of the payment structure

8. Nominated Subcontractors: Required when employer nominates specific subcontractors

9. Archaeological Findings: For sites with potential archaeological significance

10. Building Information Modeling: When BIM is required for the project

What schedules should be included in a Design And Construct Contract?

1. Schedule 1 - Employer's Requirements: Detailed technical and functional requirements

2. Schedule 2 - Site Information: Site details, surveys, and existing conditions

3. Schedule 3 - Time Schedule: Detailed program, milestones, and completion dates

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

5. Schedule 5 - Design Deliverables: Required design submissions and approval process

6. Schedule 6 - Testing and Commissioning: Testing requirements and acceptance criteria

7. Schedule 7 - Forms of Bonds and Guarantees: Templates for required security documents

8. Schedule 8 - Insurance Requirements: Details of required insurance coverage

9. Schedule 9 - Key Personnel: List of key personnel and their responsibilities

10. Schedule 10 - Forms of Certificates: Templates for various project certificates

11. Appendix A - Contract Price Breakdown: Detailed breakdown of contract price

12. Appendix B - Technical Specifications: Detailed technical specifications

13. Appendix C - Drawings: List of contract drawings and requirements

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

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Infrastructure

Real Estate Development

Industrial Development

Commercial Property

Healthcare Facilities

Educational Institutions

Transportation

Energy and Utilities

Manufacturing

Hospitality

Technology Parks

Retail Development

Mixed-use Development

Relevant Teams

Legal

Commercial

Project Management

Design

Construction

Procurement

Finance

Risk Management

Quality Assurance

Technical Services

Contract Administration

Relevant Roles

Project Director

Construction Manager

Design Manager

Contract Administrator

Commercial Manager

Project Manager

Legal Counsel

Risk Manager

Chief Executive Officer

Technical Director

Procurement Manager

Cost Controller

Quality Assurance Manager

Design Coordinator

Site Manager

Financial Controller

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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