General Contractor Contract With Subcontractor Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the contractual relationship between a general contractor and a subcontractor for the execution of specific construction works. The document incorporates requirements from Malaysian construction legislation, including the Construction Industry Development Board Act 1994 and Construction Industry Payment and Adjudication Act 2012, while addressing key aspects such as scope of work, payment terms, safety requirements, quality standards, and dispute resolution mechanisms. It ensures compliance with local regulatory requirements while protecting the interests of both parties in the construction project hierarchy.

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What is a General Contractor Contract With Subcontractor?

The General Contractor Contract With Subcontractor is a critical document used in Malaysian construction projects when a general contractor needs to delegate specific portions of the construction work to specialized subcontractors. This agreement is essential for projects where specialized expertise, additional workforce, or specific technical capabilities are required. The document incorporates requirements from Malaysian construction laws and regulations, including CIDB requirements, safety standards, and payment protection mechanisms under CIPAA 2012. It details the scope of works, payment terms, performance standards, and risk allocation between parties, while maintaining alignment with the main contract between the general contractor and the project owner. This type of agreement is particularly important in ensuring clear communication, proper risk management, and smooth project execution in the Malaysian construction industry context.

What sections should be included in a General Contractor Contract With Subcontractor?

1. Parties: Identification of the General Contractor and Subcontractor, including registration numbers and addresses

2. Background: Context of the main contract, project details, and basis for subcontracting

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the contract

4. Scope of Work: Detailed description of the subcontracted works and deliverables

5. Contract Sum and Payment Terms: Pricing, payment schedule, and payment procedures

6. Time for Completion: Project timeline, milestones, and completion dates

7. Obligations of the Subcontractor: Specific duties, responsibilities, and performance standards

8. Obligations of the General Contractor: General Contractor's responsibilities and support requirements

9. Safety and Compliance: Safety requirements, permits, and regulatory compliance obligations

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

11. Variations: Procedures for handling changes to scope or specifications

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

13. Default and Termination: Grounds for default, remedies, and termination procedures

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

15. General Provisions: Standard contract clauses including notices, governing law, and assignment

What sections are optional to include in a General Contractor Contract With Subcontractor?

1. Performance Bond: Required when project value exceeds certain threshold or when specified by main contract

2. Intellectual Property Rights: Needed when design or innovative solutions are part of scope

3. Confidentiality: Required for projects involving sensitive information or proprietary technology

4. Environmental Requirements: Included for projects with specific environmental impact considerations

5. Local Content Requirements: Required for projects with specific local content or bumiputera participation requirements

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

7. Warranties and Defects Liability: Extended warranty provisions for specialized equipment or works

8. Site Conditions: Special provisions for projects with challenging site conditions or access restrictions

What schedules should be included in a General Contractor Contract With Subcontractor?

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

2. Schedule 2 - Bill of Quantities: Itemized pricing and quantities

3. Schedule 3 - Program of Works: Detailed project timeline and milestone dates

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

5. Schedule 5 - Site Rules and Regulations: Specific site requirements and procedures

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

7. Schedule 7 - Insurance Requirements: Specific insurance types and coverage amounts

8. Schedule 8 - Forms and Certificates: Standard forms for payments, variations, and completions

9. Appendix A - Main Contract Excerpts: Relevant portions of the main contract affecting subcontractor

10. Appendix B - Safety Procedures: Detailed safety requirements and procedures

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

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use

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