The Engineering Procurement And Construction Agreement is a crucial document for major capital projects in Malaysia, typically used for complex industrial, infrastructure, or energy facilities where single-point responsibility is required. This agreement type is particularly relevant when the project owner (Employer) wants to transfer the majority of project risks to a single contractor who takes full responsibility for design, procurement, and construction through to completion. The document must comply with Malaysian laws including the Street, Drainage and Building Act 1974, Registration of Engineers Act 1967, and relevant environmental regulations. It includes comprehensive technical specifications, commercial terms, performance guarantees, and project execution requirements while incorporating local content requirements and industry standards. This agreement type is commonly used in sectors such as power generation, oil and gas, and infrastructure development where project complexity demands detailed risk allocation and performance requirements.
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1. Parties: Identification and details of the contracting parties including Employer and Contractor
2. Background: Project context, purpose, and basic understanding between parties
3. Definitions and Interpretation: Detailed definitions of terms used and rules for contract interpretation
4. Scope of Work: Detailed description of engineering, procurement, and construction obligations
5. Contract Price and Payment: Price structure, payment terms, milestones, and invoicing procedures
6. Project Schedule: Timeline, key milestones, completion dates, and delay consequences
7. Contractor Obligations: Detailed responsibilities including permits, materials, workmanship standards
8. Employer Obligations: Responsibilities including site access, approvals, and information provision
9. Quality and Standards: Required quality levels, testing procedures, and applicable standards
10. Changes and Variations: Procedures for handling changes to scope, price, or schedule
11. Testing and Completion: Commissioning procedures, acceptance tests, and completion certificates
12. Defects Liability: Warranty period, remedial obligations, and defect correction procedures
13. Risk and Insurance: Risk allocation and required insurance coverage
14. Force Majeure: Definition of force majeure events and consequences
15. Termination: Grounds for termination and consequences
16. Disputes Resolution: Procedures for resolving disputes including arbitration
17. Governing Law: Malaysian law as governing law and jurisdiction provisions
1. Performance Security: Requirements for performance bonds or guarantees, used for high-value projects
2. Intellectual Property: IP rights and licenses, important for projects involving proprietary technology
3. Environmental Compliance: Specific environmental obligations, needed for environmentally sensitive projects
4. Local Content Requirements: Malaysian content requirements, relevant for government or regulated projects
5. Interface Management: Procedures for managing multiple contractors, needed for complex projects
6. Training and Technology Transfer: Requirements for training employer's personnel, relevant for specialized facilities
7. Spare Parts and Maintenance: Long-term maintenance obligations, important for operational facilities
8. Step-in Rights: Employer's right to take over work, relevant for critical infrastructure projects
1. Schedule 1 - Scope of Work: Detailed technical specifications and scope breakdown
2. Schedule 2 - Project Schedule: Detailed timeline with all milestones and critical paths
3. Schedule 3 - Price Schedule: Detailed pricing breakdown and payment milestones
4. Schedule 4 - Site Information: Site details, conditions, and access requirements
5. Schedule 5 - Testing and Commissioning: Detailed testing procedures and acceptance criteria
6. Schedule 6 - Forms of Certificates: Templates for various certificates including completion certificates
7. Schedule 7 - Key Personnel: List of key personnel and their responsibilities
8. Schedule 8 - Forms of Securities: Templates for bonds and guarantees
9. Schedule 9 - Insurance Requirements: Detailed insurance specifications
10. Schedule 10 - HSE Requirements: Health, safety, and environmental requirements
11. Appendix A - Technical Specifications: Detailed technical requirements and standards
12. Appendix B - Drawings: Project drawings and designs
13. Appendix C - Permits and Licenses: List of required permits and responsible parties
Relevant legal definitions
Clauses
Relevant Industries
Oil and Gas
Power Generation
Renewable Energy
Chemical and Petrochemical
Infrastructure Development
Industrial Manufacturing
Mining and Resources
Water Treatment
Waste Management
Transportation Infrastructure
Data Centers
Healthcare Facilities
Relevant Teams
Legal
Engineering
Procurement
Construction
Commercial
Finance
Risk Management
Project Controls
Quality Assurance
Health Safety Environment
Operations
Technical Services
Contract Administration
Relevant Roles
Project Director
Contract Manager
Engineering Manager
Procurement Manager
Construction Manager
Legal Counsel
Commercial Director
Technical Director
Risk Manager
Finance Director
Project Controls Manager
Quality Assurance Manager
HSE Manager
Operations Director
Chief Executive Officer
Chief Financial Officer
Project Sponsor
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