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Construction Contract Cancellation Letter

Construction Contract Cancellation Letter Template for Malaysia

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Key Requirements PROMPT example:

Construction Contract Cancellation Letter

"I need a Construction Contract Cancellation Letter for terminating our agreement with ABC Builders Sdn Bhd for the Kuala Lumpur Shopping Mall project due to repeated delays and quality issues; the original contract was signed on March 15, 2025, and we want the termination to be effective immediately."

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Document background
The Construction Contract Cancellation Letter is a crucial document used when one party needs to formally terminate a construction project agreement in Malaysia. It is typically employed when there are material breaches of contract, force majeure events, or mutual agreement to terminate. The document must comply with Malaysian construction law, particularly the Contracts Act 1950 and Construction Industry Development Board regulations. This letter serves multiple purposes: it formally notifies the other party of the cancellation, documents the grounds for termination, outlines immediate actions required, addresses site security and handover procedures, and specifies financial settlement terms. It's essential for protecting both parties' interests and maintaining a clear legal record of the contract termination.
Suggested Sections

1. Letter Header: Formal business letter header including date, reference number, and addresses of both parties

2. Contract Reference: Clear identification of the construction contract being cancelled, including original contract date, project name, and contract reference number

3. Notice of Cancellation: Clear and unambiguous statement of contract cancellation

4. Grounds for Cancellation: Specific reasons for contract cancellation with reference to relevant contract clauses

5. Effective Date: Clear statement of when the cancellation takes effect

6. Immediate Actions Required: List of immediate actions required from the contractor (e.g., cease work, secure site, remove equipment)

7. Settlement Terms: Overview of financial settlement, including final payments or deductions

8. Closing and Signature: Formal closing, signature block, and company stamp if required

Optional Sections

1. Site Safety and Security Measures: Include when there are specific site safety concerns that need to be addressed during the transition

2. Intellectual Property Rights: Include when there are designs, plans, or other IP that need to be addressed

3. Confidentiality Reminder: Include when there are sensitive aspects of the project that need continued protection

4. Dispute Resolution Process: Include when there is a likelihood of dispute or when required by the original contract

5. Insurance and Bonds: Include when there are specific insurance or performance bond matters to be addressed

6. Subcontractor Relations: Include when there are subcontractors involved whose rights need to be addressed

Suggested Schedules

1. Schedule A - Project Status Report: Current status of construction work and completion percentage

2. Schedule B - Outstanding Payments Schedule: List of all outstanding payments, claims, and financial matters

3. Schedule C - Asset Inventory: Inventory of materials, equipment, and other assets on site

4. Schedule D - Handover Checklist: Detailed checklist for site handover procedures

5. Appendix 1 - Photographic Evidence: Current site conditions and status documentation

6. Appendix 2 - Relevant Contract Clauses: Copy of relevant clauses from original contract supporting cancellation

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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

Transportation Infrastructure

Relevant Teams

Legal

Operations

Construction Management

Project Management

Contract Administration

Risk Management

Commercial

Procurement

Property Development

Site Operations

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Property Developer

Site Manager

Development Director

Chief Operating Officer

Construction Director

Procurement Manager

Quantity Surveyor

Risk Manager

Commercial Director

General Counsel

Operations 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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