The Basic Building Contract is a fundamental document used in the Malaysian construction industry for projects requiring a straightforward but comprehensive contractual framework. This contract type is particularly suitable for medium-sized construction projects where standard terms and conditions can effectively govern the relationship between the employer and contractor. It incorporates essential elements required under Malaysian law, including provisions from the Construction Industry Development Board Act 1994 and the Construction Industry Payment and Adjudication Act 2012. The document provides a balanced approach to risk allocation, payment procedures, and dispute resolution, while ensuring compliance with local building regulations and industry standards. It is designed to be adaptable to various construction projects while maintaining consistency with Malaysian legal requirements and construction practices.
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1. Parties: Identification and details of the Employer and Contractor
2. Background: Context of the agreement and brief project overview
3. Definitions and Interpretation: Definitions of terms used in the contract and rules of interpretation
4. Contractor's Obligations: Primary obligations including workmanship, materials, and completion requirements
5. Employer's Obligations: Primary obligations including site access, permits, and payments
6. Contract Sum and Payment: Agreement on price, payment terms, and mechanisms
7. Time for Completion: Project duration, completion dates, and extension provisions
8. Variations: Procedures for handling changes to the works
9. Insurance and Indemnities: Required insurance coverage and indemnification obligations
10. Defects Liability: Defects identification and rectification procedures
11. Termination: Grounds and procedures for contract termination
12. Dispute Resolution: Procedures for handling disputes including mediation and arbitration
13. General Provisions: Standard contract clauses including notices, governing law, and assignment
1. Performance Bond: Requirements for performance security, used when project value exceeds certain threshold
2. Advance Payment: Terms for advance payment and recovery, used when advance payment is required
3. Nominated Subcontractors: Provisions for handling employer-nominated subcontractors
4. Site Safety and Environmental Protection: Detailed safety and environmental requirements for high-risk or environmentally sensitive projects
5. Quality Assurance: Specific quality control requirements for complex projects
6. Liquidated Damages: Pre-agreed damages for delay, used when specific completion dates are critical
7. Force Majeure: Provisions for handling unforeseen events, particularly relevant in longer-term projects
1. Schedule 1 - Contract Drawings: List and copies of all approved construction drawings
2. Schedule 2 - Specifications: Detailed technical specifications for materials and workmanship
3. Schedule 3 - Bill of Quantities: Itemized quantities and rates for the works
4. Schedule 4 - Payment Schedule: Detailed payment milestones and amounts
5. Schedule 5 - Project Timeline: Detailed construction program and key milestone dates
6. Schedule 6 - Site Information: Site details, access points, and known conditions
7. Schedule 7 - Forms and Notices: Standard forms for variations, completion certificates, and other notices
8. Appendix A - Special Conditions: Project-specific conditions and requirements
9. Appendix B - Insurance Requirements: Detailed insurance coverage requirements and minimum values
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Commercial Property
Residential Property
Industrial Development
Education
Healthcare
Hospitality
Retail
Relevant Teams
Legal
Construction
Project Management
Procurement
Commercial
Operations
Technical
Risk Management
Contract Administration
Relevant Roles
Project Manager
Construction Manager
Contract Administrator
Legal Counsel
Quantity Surveyor
Architect
Civil Engineer
Procurement Manager
Risk Manager
Commercial Manager
Site Supervisor
Technical Director
Operations Manager
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