Termination Of Subcontractor Agreement Letter Template for Malaysia

The Termination Of Subcontractor Agreement Letter is a crucial document used in Malaysian business practice when a main contractor needs to formally end a contractual relationship with a subcontractor. This document is essential in situations where the original subcontractor agreement needs to be terminated, whether due to completion of works, breach of contract, mutual agreement, or other specified reasons. It must comply with Malaysian contract law and relevant industry regulations, particularly the Contracts Act 1950 and industry-specific legislation. The letter serves multiple purposes: it officially documents the termination, specifies the effective date, outlines any outstanding obligations, and sets forth the process for project handover or final settlements. It's particularly important in regulated industries where proper documentation of contractual relationships is mandatory.

1. Letter Header and Date: Company letterhead, date, and reference number

2. Recipient Details: Full name, designation, and address of the subcontractor

3. Subject Line: Clear indication that this is a termination notice

4. Reference to Original Agreement: Details of the original subcontractor agreement including date and contract reference number

5. Termination Statement: Clear statement of termination and the effective date

6. Basis for Termination: Reference to relevant clause in original agreement or circumstances leading to termination

7. Outstanding Obligations: Summary of any pending work, payments, or deliverables

8. Next Steps: Instructions for handover process and final procedures

9. Closing Statement: Professional closing and signature block