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Contractor Warranty Agreement Template for Malaysia

A legally binding document governed by Malaysian law that establishes the contractor's warranty obligations for completed works, materials, or systems. The agreement details the scope and duration of the warranty, claim procedures, and remedies available to the property owner or developer. It incorporates relevant provisions from Malaysian contract law, consumer protection regulations, and construction industry standards, while specifying maintenance requirements, exclusions, and dispute resolution mechanisms. The document ensures compliance with local construction regulations while protecting both contractor and client interests.

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What is a Contractor Warranty Agreement?

The Contractor Warranty Agreement is a crucial document used in Malaysian construction and development projects to establish post-completion obligations and protections. It is typically executed after project completion but before final handover, providing assurance to property owners or developers regarding the quality and performance of completed works. The agreement, governed by Malaysian law including the Contracts Act 1950 and Construction Industry Development Board Act 1994, details warranty terms, claim procedures, and remedies. This document becomes particularly important in complex construction projects, property developments, and infrastructure works where long-term performance guarantees are essential. The Contractor Warranty Agreement should align with local building codes, industry standards, and consumer protection regulations while clearly defining the scope of warranty coverage and obligations of all parties involved.

What sections should be included in a Contractor Warranty Agreement?

1. Parties: Identifies the warrantor (contractor), warrantee (client/owner), and any other relevant parties

2. Background: Describes the context of the warranty, referring to the completed work or project

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Warranty: Clearly outlines what work, materials, and systems are covered by the warranty

5. Warranty Period: Specifies the duration of the warranty and any conditions affecting the warranty period

6. Contractor's Obligations: Details the contractor's responsibilities under the warranty

7. Warranty Claims Procedure: Sets out the process for making warranty claims and response timeframes

8. Remedies: Specifies the types of remedies available under the warranty

9. Exclusions: Lists circumstances and conditions not covered by the warranty

10. Dispute Resolution: Outlines the process for resolving disputes related to warranty claims

11. Governing Law: Specifies that Malaysian law governs the agreement

What sections are optional to include in a Contractor Warranty Agreement?

1. Assignment: Include when the warranty needs to be transferable to subsequent owners or users

2. Insurance Requirements: Include when specific insurance coverage is required to support warranty obligations

3. Performance Standards: Include when specific performance metrics or standards need to be maintained

4. Maintenance Requirements: Include when warranty validity depends on specific maintenance procedures

5. Force Majeure: Include when specific events should be excluded from warranty coverage

6. Intellectual Property: Include when the warranty covers systems or materials involving IP rights

7. Confidentiality: Include when warranty claims may involve sensitive information

What schedules should be included in a Contractor Warranty Agreement?

1. Schedule 1 - Warranted Works: Detailed description of the works, materials, or systems covered by the warranty

2. Schedule 2 - Technical Specifications: Technical requirements and standards that the warranted works must meet

3. Schedule 3 - Warranty Claim Form: Standard form for submitting warranty claims

4. Schedule 4 - Maintenance Requirements: Required maintenance procedures to maintain warranty validity

5. Appendix A - Project Documentation: Relevant certificates, permits, and completion documents

6. Appendix B - Testing and Commissioning Results: Results of any testing or commissioning that establish the baseline for warranty

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use

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