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Professional Services Contract for Malaysia

Professional Services Contract Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions for the provision of professional services between a service provider and a client. This contract defines the scope of services, payment terms, deliverables, and professional obligations while ensuring compliance with Malaysian legislation, including the Contracts Act 1950 and relevant professional regulations. It includes provisions for intellectual property protection, confidentiality, data protection under PDPA 2010, and specific performance standards, making it suitable for various professional service arrangements in the Malaysian business context.

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What is a Professional Services Contract?

The Professional Services Contract serves as a fundamental legal instrument for engaging professional service providers in Malaysia. It is designed for situations where specialized professional services are required, whether in consulting, technical, advisory, or other professional capacities. This contract type is essential for businesses and individuals operating under Malaysian jurisdiction who need to establish clear parameters for professional engagements, including scope, deliverables, payment terms, and professional obligations. The document incorporates key requirements from Malaysian legislation, including the Contracts Act 1950, Employment Act 1955 (for distinction from employment relationships), and Personal Data Protection Act 2010. It provides necessary protections for both service providers and clients while maintaining flexibility to accommodate various professional service arrangements.

What sections should be included in a Professional Services Contract?

1. Parties: Identification and details of the service provider and client

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of the professional services to be provided

5. Term and Timeline: Duration of the agreement and key delivery dates

6. Fees and Payment Terms: Service fees, payment schedule, expenses, and invoicing procedures

7. Obligations of Service Provider: Key responsibilities and commitments of the service provider

8. Obligations of Client: Key responsibilities and commitments of the client

9. Intellectual Property Rights: Ownership and usage rights of any IP created or used during service provision

10. Confidentiality: Protection and handling of confidential information

11. Data Protection: Compliance with PDPA 2010 and data handling procedures

12. Liability and Indemnification: Limitation of liability and indemnification obligations

13. Termination: Circumstances and procedures for contract termination

14. Force Majeure: Provisions for unforeseen circumstances preventing performance

15. General Provisions: Standard legal provisions including notices, amendments, governing law, etc.

What sections are optional to include in a Professional Services Contract?

1. Insurance: Required when specific insurance coverage needs to be maintained by either party

2. Non-Competition: Used when restricting the service provider from competing activities

3. Non-Solicitation: Used when preventing parties from soliciting each other's employees/clients

4. Performance Metrics: When specific KPIs or service levels need to be maintained

5. Compliance with Laws: When specific regulatory compliance needs to be highlighted

6. Security Requirements: When handling sensitive information or accessing client systems

7. Training and Support: When ongoing training or support is part of the services

8. Change Control: When formal procedures for changing scope/requirements are needed

What schedules should be included in a Professional Services Contract?

1. Schedule 1 - Scope of Services: Detailed technical specifications of services to be provided

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Service Levels: Specific performance metrics and service level requirements

4. Schedule 4 - Key Personnel: List of key team members and their roles

5. Schedule 5 - Timeline and Deliverables: Detailed project timeline and deliverable specifications

6. Schedule 6 - Client Policies: Relevant client policies that service provider must comply with

7. Appendix A - Required Forms: Standard forms for reporting, invoicing, or change requests

8. Appendix B - Insurance Requirements: Detailed insurance coverage requirements and certificates

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 | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions


























Clauses

































Relevant Industries

Information Technology

Management Consulting

Financial Services

Engineering

Architecture

Legal Services

Accounting and Audit

Healthcare

Education and Training

Marketing and Advertising

Human Resources

Environmental Services

Business Advisory

Research and Development

Relevant Teams

Legal

Procurement

Finance

Operations

Human Resources

Compliance

Risk Management

Project Management

Business Development

Administration

Contracts Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Procurement Manager

Contract Manager

Project Manager

Business Development Manager

Operations Director

Human Resources Director

Risk Manager

Compliance Officer

Department Head

Managing Director

Professional Consultant

Technical Director

Finance Manager

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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