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Standard Form Of Building Contract for Malaysia

Standard Form Of Building Contract Template for Malaysia

A comprehensive building contract template designed for use in the Malaysian construction industry, compliant with Malaysian law and construction regulations. This document establishes the legal framework for construction projects, defining the rights, obligations, and responsibilities of the employer and contractor. It incorporates local industry standards, regulatory requirements, and established practices in Malaysian construction law, while providing mechanisms for project management, payment procedures, dispute resolution, and risk allocation. The contract is structured to accommodate various types of building projects while ensuring compliance with Malaysian statutory requirements and construction industry regulations.

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Standard Form Of Building Contract

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What is a Standard Form Of Building Contract?

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.

What sections should be included in a Standard Form Of Building Contract?

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

What sections are optional to include in a Standard Form Of Building Contract?

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

What schedules should be included in a Standard Form Of Building Contract?

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

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

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
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

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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