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Basic Building Contract for Malta

Basic Building Contract Template for Malta

A standardized construction agreement governed by Maltese law, designed to establish the legal framework between an employer (property owner) and a contractor for building works. This contract type incorporates essential elements required under Maltese construction regulations, including compliance with the Building Regulation Act and Civil Code requirements. It covers fundamental aspects such as scope of works, payment terms, timelines, contractor obligations, and dispute resolution mechanisms, while ensuring alignment with local building standards and safety requirements.

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What is a Basic Building Contract?

The Basic Building Contract serves as a fundamental legal instrument for construction projects in Malta, providing a comprehensive framework for building works while ensuring compliance with Maltese construction laws and regulations. This contract type is particularly suitable for straightforward construction projects where the design is complete before construction begins and the works can be accurately described in the contract documents. It includes essential provisions required by Maltese law, such as those mandated by the Building Regulation Act and the Civil Code, while incorporating specific clauses addressing local construction practices and requirements. The document is structured to protect both the employer's and contractor's interests, providing clear guidelines on payment terms, work quality standards, and dispute resolution mechanisms.

What sections should be included in a Basic Building Contract?

1. Parties: Identification of the Employer and the Contractor, including full legal names, registration numbers, and addresses

2. Background: Brief context of the construction project and the purpose of the agreement

3. Definitions: Key terms used throughout the contract and their specific meanings

4. Scope of Works: Detailed description of the construction works to be carried out

5. Contract Sum and Payment Terms: Agreed price, payment schedule, and mechanisms for handling variations

6. Project Timeline: Commencement date, completion date, and key milestones

7. Contractor Obligations: Core responsibilities of the contractor including quality standards, materials, and workmanship

8. Employer Obligations: Core responsibilities of the employer including site access and information provision

9. Variations: Process for handling changes to the scope of works and their cost implications

10. Health and Safety: Safety requirements and responsibilities on site

11. Insurance and Liability: Required insurance coverage and allocation of risks

12. Termination: Circumstances and procedures for contract termination

13. Dispute Resolution: Procedures for handling disagreements and conflicts

14. General Provisions: Standard contractual clauses including notices, governing law, and entire agreement

What sections are optional to include in a Basic Building Contract?

1. Performance Security: Required when the project value exceeds certain thresholds or when additional financial security is needed

2. Environmental Requirements: Include when the project has specific environmental impacts or requirements

3. Quality Control Procedures: Detailed quality management procedures for larger or more complex projects

4. Subcontracting: Include when subcontracting is anticipated or needs to be regulated

5. Archaeological Findings: Required for projects in historically sensitive areas of Malta

6. Retention: Include when a retention amount is to be held from payments

7. Liquidated Damages: Include when specific compensation for delays needs to be pre-agreed

8. Force Majeure: Detailed provisions for unforeseen circumstances, particularly relevant for longer-term projects

What schedules should be included in a Basic Building Contract?

1. Schedule 1 - Contract Drawings: Detailed technical drawings and specifications of the works

2. Schedule 2 - Bill of Quantities: Itemized list of materials, quantities, and costs

3. Schedule 3 - Payment Schedule: Detailed breakdown of payment stages and amounts

4. Schedule 4 - Project Timeline: Detailed project program including all key dates and milestones

5. Schedule 5 - Site Information: Details about the construction site, access points, and existing conditions

6. Schedule 6 - Required Insurance: Specific insurance requirements and minimum coverage amounts

7. Appendix A - Planning Permits: Copies of relevant building permits and planning permissions

8. Appendix B - Health and Safety Plan: Detailed health and safety procedures and requirements

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

Malta

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions


















































Clauses





























Relevant Industries

Construction

Real Estate Development

Architecture

Engineering

Property Management

Infrastructure Development

Residential Construction

Commercial Construction

Industrial Construction

Urban Development

Relevant Teams

Legal

Construction

Project Management

Commercial

Procurement

Technical Services

Risk & Compliance

Property Development

Operations

Contract Administration

Relevant Roles

Construction Manager

Project Director

Contracts Manager

Site Supervisor

Quantity Surveyor

Architect

Civil Engineer

Legal Counsel

Procurement Manager

Property Developer

Risk Manager

Commercial Director

Technical Director

Building Inspector

Cost Controller

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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