The General Construction Agreement serves as the primary contractual document for construction projects in Malaysia, establishing the legal relationship between the employer/owner and the contractor. This document is essential for any construction project, whether commercial, residential, or industrial, and must comply with Malaysian legislation including the Construction Industry Development Board Act 1994 and related regulations. It contains detailed provisions covering project scope, payment terms, timelines, quality standards, safety requirements, and dispute resolution mechanisms. The agreement is designed to protect all parties' interests while ensuring project delivery meets local regulatory requirements and industry standards. It includes necessary provisions for insurance, warranties, and defects liability, adapting to specific project needs while maintaining compliance with Malaysian construction law and practice.
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1. Parties: Identifies and provides full details of the contracting parties (employer/owner and contractor)
2. Background: Sets out the context of the agreement and brief description of the construction project
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules of interpretation
4. Scope of Works: Detailed description of the construction works to be performed by the contractor
5. Contract Sum and Payment Terms: Specifies the total contract value, payment schedule, and payment mechanisms
6. Duration and Programme: Sets out project timeline, completion date, and milestone requirements
7. Contractor's Obligations: Details the responsibilities and duties of the contractor
8. Employer's Obligations: Outlines the responsibilities and duties of the employer
9. Variations: Procedures for handling changes to the scope of works
10. Quality and Standards: Specifies required quality standards and inspection procedures
11. Health and Safety: Details safety requirements and compliance with relevant regulations
12. Insurance and Indemnities: Specifies required insurance coverage and indemnification obligations
13. Defects Liability: Details the defects liability period and rectification procedures
14. Warranties: Contractor's warranties regarding workmanship and materials
15. Force Majeure: Provisions for handling unforeseen circumstances and their impact
16. Termination: Grounds and procedures for contract termination
17. Dispute Resolution: Procedures for resolving disputes between parties
18. Governing Law: Specifies Malaysian law as governing law and jurisdiction
19. Notices: Procedures for formal communications between parties
20. Execution: Formal signing section with witness requirements
1. Performance Bond: Required when project value exceeds certain threshold or when specifically requested by employer
2. Advance Payment: Include when employer agrees to provide advance payment for mobilization
3. Liquidated Damages: Include when specific compensation for delay is required
4. Environmental Protection: Required for projects with significant environmental impact
5. Intellectual Property Rights: Include when design elements or proprietary methods are involved
6. Confidentiality: Include for projects involving sensitive information or proprietary designs
7. Site Conditions: Include when specific site conditions need special attention or risk allocation
8. Subcontracting: Include when subcontracting is permitted and needs regulation
9. Materials and Equipment: Include when specific requirements for materials sourcing or equipment are needed
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings of the works
2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of costs and bill of quantities
3. Schedule 3 - Project Timeline: Detailed project schedule with milestones and critical paths
4. Schedule 4 - Payment Schedule: Detailed payment terms, installments, and milestone payments
5. Schedule 5 - Site Details: Site plans, access requirements, and existing conditions
6. Schedule 6 - Required Insurances: Details of required insurance coverage and minimum values
7. Schedule 7 - Quality Assurance Plan: Specific quality standards and testing requirements
8. Schedule 8 - Health and Safety Requirements: Detailed safety procedures and requirements
9. Appendix A - Forms and Certificates: Standard forms for variations, completion certificates, etc.
10. Appendix B - Performance Bond Format: Standard format for performance bond if required
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Infrastructure
Manufacturing
Healthcare
Education
Retail
Hospitality
Industrial
Commercial Property
Residential Property
Energy
Technology
Relevant Teams
Legal
Operations
Construction
Project Management
Commercial
Procurement
Risk Management
Finance
Compliance
Technical Services
Health and Safety
Quality Assurance
Relevant Roles
Chief Executive Officer
Managing Director
Construction Manager
Project Manager
Contract Manager
Legal Counsel
Quantity Surveyor
Site Manager
Procurement Manager
Risk Manager
Commercial Director
Operations Director
Technical Director
Chief Financial Officer
Compliance Officer
Health and Safety Manager
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