Project Alliance Agreement

Project Alliance Agreement Template for Malaysia

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Key Requirements PROMPT example:

"I need a Project Alliance Agreement for a major infrastructure project in Kuala Lumpur involving three construction companies and two design consultants, with a target cost of RM 500 million and project completion date of March 2025."

Document background

The Project Alliance Agreement is used for complex infrastructure and construction projects in Malaysia where traditional contracting approaches may not be optimal. This agreement type is particularly suitable when project success depends on close collaboration between multiple parties, innovation in delivery approaches, and aligned commercial interests. The document establishes a no-blame culture, shared risk-reward mechanism, and integrated decision-making processes while ensuring compliance with Malaysian legal requirements. It includes detailed provisions for alliance governance, commercial frameworks, and project execution methodologies, making it ideal for large-scale infrastructure projects, complex industrial developments, or public works requiring innovative delivery approaches.

Suggested Sections

1. Parties: Identifies all alliance participants and their legal details

2. Background: Sets out the context of the project and formation of the alliance

3. Definitions and Interpretation: Defines key terms and interpretation rules for the agreement

4. Alliance Objectives and Principles: States the project goals and alliance behavioral principles

5. Formation and Operation of Alliance: Details the alliance structure and operational framework

6. Governance Structure: Defines the alliance leadership team, management team, and decision-making processes

7. Obligations of Participants: Sets out key responsibilities and commitments of each participant

8. Project Scope and Implementation: Describes the work to be performed and delivery methodology

9. Commercial Framework: Details the compensation model, including target cost and pain/gain share mechanisms

10. Performance Measurement: Defines KPIs and performance assessment methods

11. Risk and Insurance: Addresses shared risk approach and required insurance coverage

12. Intellectual Property: Covers ownership and licensing of project IP

13. Dispute Resolution: Sets out process for resolving issues within alliance principles

14. Term and Termination: Specifies duration, completion, and termination provisions

15. General Provisions: Includes standard legal provisions like notices, governing law, etc.

Optional Sections

1. Interface Management: Required when project involves significant interfaces with other contractors or stakeholders

2. Community Engagement: Include for projects with significant public impact or stakeholder management requirements

3. Environmental Management: Required for projects with significant environmental impacts or requirements

4. Indigenous Peoples and Cultural Heritage: Include when project affects native lands or cultural sites

5. Innovation and Value Engineering: Optional section for projects emphasizing innovation

6. BIM and Digital Engineering: Include when project requires specific digital delivery requirements

7. Force Majeure: Optional detailed provisions for force majeure events

8. Parent Company Support: Include when parent company guarantees are required

Suggested Schedules

1. Project Scope: Detailed description of works and deliverables

2. Site Details: Site information, access requirements and conditions

3. Target Cost Breakdown: Detailed cost elements and assumptions

4. KPI Framework: Detailed performance measures and calculations

5. Governance Procedures: Detailed procedures for alliance management

6. Commercial Framework Details: Detailed pain/gain calculations and commercial mechanisms

7. Form of Certificates: Template certificates required under the agreement

8. Insurance Requirements: Detailed insurance specifications and requirements

9. Project Program: Detailed project schedule and milestones

10. Roles and Responsibilities Matrix: Detailed allocation of responsibilities

11. Alliance Leadership Team Charter: Principles and procedures for alliance leadership

12. Quality Management Requirements: Quality standards and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Infrastructure

Construction

Energy

Transportation

Water and Utilities

Oil and Gas

Public Works

Commercial Development

Industrial Development

Healthcare Infrastructure

Relevant Teams

Legal

Commercial

Operations

Project Management

Engineering

Design

Construction

Finance

Risk and Compliance

Procurement

Quality Assurance

Relevant Roles

Project Director

Alliance Manager

Commercial Manager

Contract Manager

Project Manager

Design Manager

Construction Manager

Risk Manager

Legal Counsel

Chief Executive Officer

Operations Director

Engineering Manager

Financial Controller

Quality Manager

Procurement Manager

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