The Standard Form of Building Contract is the primary contractual instrument used in the Malaysian construction industry for establishing legally binding agreements between project owners (employers) and contractors. This document is specifically tailored to comply with Malaysian construction law, including the Construction Industry Development Board Act 1994 and related regulations. It is designed for use in various construction projects, from commercial buildings to residential developments, and includes essential provisions for project execution, payment terms, quality standards, and dispute resolution. The contract incorporates local industry practices and regulatory requirements while providing flexibility to accommodate project-specific needs. It serves as a comprehensive framework that protects the interests of all parties while ensuring efficient project delivery within the Malaysian legal context.
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1. Parties: Identification and details of the Employer and Contractor
2. Background: Recitals explaining the context and purpose of the agreement
3. Definitions and Interpretation: Definitions of terms used in the contract and rules of interpretation
4. Contract Administrator's Powers and Duties: Role, authority and responsibilities of the Contract Administrator
5. Contractor's General Obligations: Primary obligations including workmanship, materials, and compliance with laws
6. Works Programme and Progress: Requirements for project scheduling, progress reporting, and time management
7. Contract Documents: Hierarchy and interpretation of contract documents
8. Contract Sum and Payment: Price, payment terms, variations, and financial procedures
9. Time and Completion: Completion dates, extensions of time, and delay provisions
10. Defects Liability: Defects identification, rectification procedures, and liability period
11. Insurance and Indemnities: Required insurance coverage and indemnification obligations
12. Determination and Termination: Grounds and procedures for contract determination by either party
13. Dispute Resolution: Procedures for handling disputes including mediation and arbitration
14. Safety and Environmental Protection: Requirements for site safety and environmental compliance
15. General Provisions: Miscellaneous legal provisions including notices and governing law
1. Nominated Sub-Contractors: Include when the project involves employer-nominated subcontractors
2. Performance Bond: Include when a performance bond is required from the contractor
3. Sectional Completion: Include when the works are to be completed and handed over in sections
4. Fluctuations: Include when price adjustments for material cost changes are allowed
5. Provisional Sums: Include when there are works that cannot be properly defined at contract formation
6. Direct Payment to Suppliers: Include when direct payment arrangements to suppliers are required
7. Liquidated Damages for Sectional Completion: Include when different liquidated damages apply to different sections
8. Government Requirements: Include for public sector projects with specific government requirements
1. Contract Bills/Price: Detailed breakdown of contract sum and bills of quantities
2. Contract Drawings: List and copies of all drawings forming part of the contract
3. Specifications: Detailed technical specifications for materials and workmanship
4. Schedule of Rates: Rates for valuing variations and additional works
5. Project Timeline: Detailed project schedule including key milestones
6. Insurance Requirements: Detailed insurance specifications and coverage requirements
7. Performance Bond Form: Prescribed form of the performance bond if required
8. List of Named Subcontractors: Details of pre-approved subcontractors if applicable
9. Special Conditions: Project-specific conditions and requirements
10. Forms and Notices: Standard forms for various notices and certificates under the contract
Authors
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Residential Development
Industrial Construction
Infrastructure Development
Public Works
Healthcare Facilities
Educational Institutions
Retail Development
Hospitality Construction
Mixed-Use Development
Relevant Teams
Legal
Commercial
Operations
Construction
Project Management
Procurement
Finance
Risk Management
Technical Services
Contract Administration
Relevant Roles
Construction Manager
Project Director
Contracts Manager
Commercial Director
Chief Operating Officer
Project Manager
Quantity Surveyor
Legal Counsel
Risk Manager
Procurement Manager
Site Manager
Construction Director
Technical Director
Chief Executive Officer
Finance Director
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