Design Build Contract

Design Build Contract Template for Malaysia

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Key Requirements PROMPT example:

"I need a Design Build Contract for a new technology park development in Penang, with construction scheduled to commence in March 2025. The contract should include specific provisions for green building certification and smart building technology integration."

Document background

The Design Build Contract is essential for construction projects in Malaysia where a single contractor is responsible for both design and construction phases. This approach streamlines project delivery by having one entity accountable for the entire process, from initial design through to construction completion. The document is structured to comply with Malaysian legislation, including the Construction Industry Development Board Act 1994, Architects Act 1967, and other relevant regulations. It includes comprehensive provisions for design development, construction standards, payment terms, and dispute resolution mechanisms specific to the Malaysian construction industry. This contract type is particularly suitable for complex projects where coordination between design and construction is crucial for project success, and where the employer seeks to minimize interface risks between different project phases.

Suggested Sections

1. Parties: Identification of the Employer and the Design-Build Contractor, including their registered addresses and company details

2. Background: Context of the project, including brief description of the works and the basis for engaging in a design-build arrangement

3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the contract

4. Contract Documents: Hierarchy and list of documents forming the contract

5. Design-Builder's Obligations: Core obligations including both design and construction responsibilities

6. Employer's Obligations: Key responsibilities of the employer including site access, permits, and payments

7. Design Development: Process for design submission, review, and approval

8. Construction Works: Requirements for executing the construction phase

9. Time for Completion: Project timeline, milestones, and completion requirements

10. Contract Price and Payment: Price, payment terms, and mechanisms for payment

11. Variations: Procedures for handling changes to scope, design, or works

12. Quality and Testing: Quality standards, inspection requirements, and testing procedures

13. Defects Liability: Obligations during defects liability period and remediation process

14. Insurance and Indemnities: Required insurance coverage and indemnification obligations

15. Force Majeure: Definition and consequences of force majeure events

16. Termination: Grounds and procedures for contract termination

17. Dispute Resolution: Procedures for resolving disputes including mediation and arbitration

18. Governing Law: Specification of Malaysian law as governing law and jurisdiction

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, used for larger projects

2. Intellectual Property Rights: Ownership and licensing of design documents and innovations, important for projects with significant design elements

3. Environmental Compliance: Specific environmental obligations, necessary for projects with significant environmental impact

4. Local Content Requirements: Requirements for local material or labor usage, relevant for government projects

5. Interface Management: Procedures for managing interfaces with other contractors, needed for complex projects

6. Building Information Modeling (BIM): BIM requirements and protocols, relevant for projects using BIM

7. Advance Payment: Terms for advance payment and recovery, used when advance payments are required

8. Price Adjustment: Formula and procedures for price adjustment, relevant for long-term projects

Suggested Schedules

1. Schedule 1 - Employer's Requirements: Detailed technical specifications and requirements for the works

2. Schedule 2 - Site Information: Site details, surveys, and existing conditions

3. Schedule 3 - Time Schedule: Detailed program of works including key dates and milestones

4. Schedule 4 - Payment Schedule: Payment terms, milestones, and breakdown of contract price

5. Schedule 5 - Key Personnel: List of key personnel and their roles

6. Schedule 6 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees

7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and coverage limits

8. Schedule 8 - Design Submission Procedure: Detailed procedures for design submissions and approval

9. Appendix A - Design Drawings: Initial design drawings and concepts

10. Appendix B - Testing and Commissioning Requirements: Detailed requirements for testing and commissioning

11. Appendix C - Quality Assurance Requirements: Quality management system requirements and procedures

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Construction

Infrastructure Development

Real Estate

Industrial Development

Commercial Development

Healthcare Facilities

Educational Institutions

Transportation

Energy and Utilities

Manufacturing Facilities

Technology Parks

Hospitality

Relevant Teams

Legal

Commercial

Operations

Project Management

Engineering

Architecture

Construction

Procurement

Finance

Risk Management

Quality Assurance

Health and Safety

Contract Administration

Technical Services

Relevant Roles

Project Director

Construction Manager

Design Manager

Contract Manager

Project Manager

Chief Executive Officer

Commercial Director

Legal Counsel

Quantity Surveyor

Procurement Manager

Risk Manager

Technical Director

Operations Director

Finance Director

Chief Engineer

Architect

Construction Supervisor

Quality Assurance Manager

Health and Safety Manager

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