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Construction Framework Agreement

Construction Framework Agreement Template for Malaysia

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Key Requirements PROMPT example:

Construction Framework Agreement

"I need a Construction Framework Agreement for a private property developer in Malaysia who plans to build multiple residential developments starting January 2025, with specific provisions for sustainable building practices and local contractor engagement."

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Document background
The Construction Framework Agreement is designed for use in the Malaysian construction industry where a client anticipates requiring regular construction services over an extended period. This document type is particularly valuable for organizations planning multiple construction projects or requiring ongoing construction services, as it eliminates the need to repeatedly negotiate and tender for individual projects. The agreement must comply with Malaysian construction law, including the Construction Industry Development Board Act 1994 and the Construction Industry Payment and Adjudication Act 2012 (CIPAA). It typically includes detailed provisions for work allocation, pricing mechanisms, quality standards, and dispute resolution procedures, while incorporating specific Malaysian regulatory requirements and industry standards. The framework structure allows for efficient procurement while maintaining flexibility in project execution.
Suggested Sections

1. Parties: Identification of the framework contractor and client, including registration details and CIDB licenses

2. Background: Context of the framework agreement, including its purpose and scope

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Framework Operation: Mechanisms for awarding work, call-off procedures, and work order processes

5. Duration and Extension: Term of the framework agreement and extension provisions

6. Contractor Obligations: Core obligations, including compliance with Malaysian construction regulations

7. Client Obligations: Key responsibilities of the client

8. Pricing and Payment: Rate cards, payment terms, and compliance with CIPAA requirements

9. Quality and Standards: Required quality standards and compliance with Malaysian building regulations

10. Health and Safety: Safety requirements under Malaysian law

11. Insurance and Liability: Required insurance coverage and liability provisions

12. Termination: Termination rights and procedures

13. Dispute Resolution: Dispute resolution procedures including CIPAA requirements

14. General Provisions: Standard boilerplate clauses under Malaysian law

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, used for higher-value frameworks

2. Environmental Requirements: Specific environmental obligations, used for environmentally sensitive projects

3. Local Content Requirements: Provisions for local content and bumiputera participation, used for government or regulated projects

4. Value Engineering: Provisions for cost optimization and innovation, used for complex technical projects

5. Building Information Modeling: BIM requirements and protocols, used for technically complex projects

6. Multiple Contractor Provisions: Used when the framework involves multiple contractors

7. Intellectual Property Rights: IP provisions for design-intensive works

8. Force Majeure: Detailed force majeure provisions, important for long-term frameworks

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed description of types of work covered under the framework

2. Schedule 2 - Rate Card: Pricing structure and rates for different types of work

3. Schedule 3 - KPIs and Service Levels: Performance metrics and service level requirements

4. Schedule 4 - Call-off Procedures: Detailed procedures for awarding work under the framework

5. Schedule 5 - Form of Work Order: Template for individual work orders

6. Schedule 6 - Required Insurances: Details of insurance requirements and minimum coverage

7. Schedule 7 - Safety Requirements: Detailed health and safety requirements and procedures

8. Schedule 8 - Required Personnel: Key personnel requirements and qualifications

9. Schedule 9 - Forms and Templates: Standard forms for various framework operations

10. Schedule 10 - Special Conditions: Any special terms or requirements specific to the framework

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

Energy

Transportation

Healthcare Facilities

Education Facilities

Retail Development

Relevant Teams

Legal

Operations

Procurement

Commercial

Construction

Project Management

Risk & Compliance

Business Development

Technical Services

Contract Administration

Relevant Roles

Construction Director

Project Manager

Commercial Director

Contracts Manager

Procurement Manager

Legal Counsel

Construction Manager

Operations Director

Facilities Manager

Chief Executive Officer

Development Director

Technical Director

Risk Manager

Compliance Officer

Quantity Surveyor

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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