The Building Work Agreement is a crucial legal document used in the Malaysian construction industry when engaging contractors for construction projects. It is designed to protect both the property owner/developer and the contractor by clearly defining the scope of work, responsibilities, and rights of each party. This agreement is essential for projects ranging from commercial buildings to residential developments, incorporating Malaysian construction laws, CIDB requirements, and local building regulations. The document typically includes detailed specifications, payment mechanisms, project timelines, quality standards, and dispute resolution procedures. It should be used whenever engaging a contractor for substantial construction work in Malaysia, ensuring compliance with local legal requirements while providing a clear framework for project execution.
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1. Parties: Identification of the Employer and the Contractor, including their full legal names, registration numbers, and registered addresses
2. Background: Brief context of the project and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Works: Detailed description of the construction works to be performed
5. Contract Sum and Payment Terms: Total contract value, payment schedule, and payment mechanisms
6. Duration and Programme: Project timeline, completion date, and key milestones
7. Contractor's Obligations: Key responsibilities including workmanship, materials, safety, and compliance with laws
8. Employer's Obligations: Key responsibilities including site access, permits, and information provision
9. Variations: Procedures for handling changes to the scope of work
10. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria
11. Health, Safety and Environment: Safety requirements, environmental protection measures
12. Insurance and Securities: Required insurance coverage and performance securities
13. Defects Liability: Defects liability period and rectification procedures
14. Termination: Grounds and procedures for contract termination
15. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration
16. General Provisions: Standard contract clauses including notices, governing law, and entire agreement
1. Nominated Subcontractors: Include when specific subcontractors are to be nominated by the Employer
2. Mechanical and Electrical Works: Include for projects with significant M&E components
3. Liquidated Damages: Include when specific compensation for delay is required
4. Performance Bond: Include when a performance bond is required from the Contractor
5. Intellectual Property Rights: Include when design elements or proprietary methods are involved
6. Force Majeure: Include detailed force majeure provisions for high-risk projects
7. Environmental Management: Include for projects with significant environmental impact
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Contract Sum Breakdown: Detailed breakdown of costs and bill of quantities
3. Schedule 3 - Programme of Works: Detailed construction schedule and milestones
4. Schedule 4 - Special Conditions: Project-specific terms and conditions
5. Schedule 5 - Site Details: Site information, access points, and restrictions
6. Schedule 6 - Required Insurances: Details of required insurance coverage
7. Schedule 7 - Forms and Notices: Standard forms for variations, completion certificates, etc.
8. Appendix A - Drawings: Complete set of construction drawings
9. Appendix B - Technical Specifications: Detailed technical requirements and standards
10. Appendix C - Permits and Approvals: Copies of relevant permits and regulatory approvals
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Infrastructure
Healthcare
Education
Industrial
Commercial Property
Residential Property
Hospitality
Manufacturing
Retail
Government/Public Sector
Relevant Teams
Legal
Operations
Project Management
Construction
Procurement
Property Development
Risk Management
Commercial
Technical
Facilities Management
Contract Administration
Relevant Roles
Project Manager
Construction Manager
Contract Administrator
Legal Counsel
Quantity Surveyor
Site Engineer
Property Developer
Facility Manager
Procurement Manager
Risk Manager
Chief Operating Officer
Development Director
Technical Director
Construction Director
Commercial Manager
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