The Standard Builders Contract is designed for use in construction projects within Malaysia where a formal, comprehensive agreement is required between the project owner (employer) and the main contractor. This document is particularly suited for medium to large-scale construction projects and complies with Malaysian construction law, including CIDB requirements and the Construction Industry Payment and Adjudication Act (CIPAA). The contract incorporates essential elements such as payment security, quality standards, dispute resolution mechanisms, and risk allocation specific to the Malaysian construction industry. It is structured to provide clear guidance on project execution while maintaining flexibility for project-specific requirements and can be used for both public and private sector construction projects.
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1. Parties: Identification of the Employer and the Contractor, including registration details and addresses
2. Background: Context of the construction project and basis for the contract
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the contract
4. Contractor's Obligations: Core obligations including works execution, compliance with laws, and quality standards
5. Employer's Obligations: Key responsibilities including site access, permits, and payment obligations
6. Contract Sum and Payment: Contract price, payment terms, and mechanisms following CIPAA requirements
7. Time for Completion: Project timeline, completion dates, and extension of time provisions
8. Variations: Procedures for handling changes to the scope of works
9. Quality and Defects: Quality standards, inspection procedures, and defects liability period
10. Insurance and Indemnities: Required insurance coverage and indemnification obligations
11. Suspension and Termination: Grounds and procedures for suspension and termination of works
12. Dispute Resolution: Procedures for dispute resolution including mediation and arbitration
13. General Provisions: Miscellaneous clauses including notices, governing law, and assignment
1. Performance Bond: Required when project value exceeds certain threshold or when specifically requested by Employer
2. Advance Payment: Include when advance payment is agreed upon, specifying recovery mechanism
3. Nominated Sub-contractors: Include when project involves employer-nominated subcontractors
4. Professional Consultants: Include when project requires coordination with specific professional consultants
5. Environmental Requirements: Include for projects with specific environmental impact considerations
6. Force Majeure: Detailed force majeure provisions for high-risk or long-term projects
7. Intellectual Property Rights: Include for projects involving design elements or proprietary methods
1. Schedule 1 - Contract Documents: List of all documents forming part of the contract
2. Schedule 2 - Works Description: Detailed description of the works to be performed
3. Schedule 3 - Contract Sum Analysis: Breakdown of the contract sum and pricing details
4. Schedule 4 - Construction Program: Detailed timeline and milestones for the works
5. Schedule 5 - Technical Specifications: Detailed technical requirements and standards
6. Schedule 6 - Site Information: Details about the construction site and conditions
7. Schedule 7 - Required Insurances: Specific insurance requirements and coverage levels
8. Schedule 8 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees
9. Appendix A - Drawings: Complete set of construction drawings
10. Appendix B - Bills of Quantities: Detailed quantification of works items
11. Appendix C - Quality Assurance Requirements: Specific quality control procedures and standards
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Commercial Property
Residential Property
Industrial Development
Public Works
Healthcare Facilities
Educational Institutions
Hospitality
Retail Development
Relevant Teams
Legal
Operations
Commercial
Procurement
Construction
Project Management
Contract Administration
Risk & Compliance
Technical
Finance
Business Development
Relevant Roles
Construction Manager
Project Director
Contract Administrator
Legal Counsel
Commercial Manager
Quantity Surveyor
Project Manager
Site Engineer
Procurement Manager
Risk Manager
Compliance Officer
Operations Director
Technical Director
Chief Executive Officer
Finance Director
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