Design Build Maintain Contract Template for Malaysia

A Design Build Maintain Contract is a comprehensive agreement that assigns responsibility for design, construction, and ongoing maintenance to a single contractor under Malaysian law. This integrated approach offers significant advantages for complex infrastructure projects where long-term performance and asset management are critical to project success.

When do you need this document?

You need this contract when undertaking major infrastructure projects such as highways, bridges, water treatment facilities, or commercial developments where ongoing maintenance is essential. The contract is particularly valuable for public sector projects where government agencies require guaranteed performance over extended periods, typically 10-30 years. It's also suitable for private sector developments where building owners want to transfer long-term maintenance risks to experienced contractors. The integrated delivery model works best for projects where design and construction efficiencies can be achieved through single-point responsibility, and where the contractor has proven expertise in all three phases of the project lifecycle.

Key legal considerations

Under Malaysian law, this contract must clearly define the scope of design obligations, including compliance with professional standards under the Architects Act 1967 and engineering codes of practice. Performance standards must be measurable and enforceable throughout the maintenance period, with clear remedies for non-compliance. The contract should establish robust payment mechanisms for each phase, including retention arrangements and performance bonds as required by Malaysian construction practice. Risk allocation clauses must address design liability, construction defects, and long-term performance failures, ensuring compliance with the Contracts Act 1950. Insurance requirements must cover professional indemnity, construction risks, and ongoing maintenance obligations, with coverage extending throughout the contract period.

Legal requirements in Malaysia

The contract must ensure the contractor holds valid registration with the Construction Industry Development Board (CIDB) for the appropriate grade and scope of work under the Construction Industry Development Board Act 1994. All design professionals must be properly licensed under relevant professional acts, including the Architects Act 1967 and Board of Engineers Malaysia Act 2002. Environmental compliance must address requirements under the Environmental Quality Act 1974, including environmental impact assessments and ongoing monitoring obligations. Construction and maintenance activities must comply with the Occupational Safety and Health Act 1994, with clear safety management systems and reporting procedures. The contract must also ensure compliance with local authority requirements under the Street, Drainage and Building Act 1974, including obtaining necessary approvals and certificates throughout the project phases.