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New Construction Agreement

New Construction Agreement Template for Malaysia

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Key Requirements PROMPT example:

New Construction Agreement

"I need a New Construction Agreement for a 20-story commercial building project in Kuala Lumpur with a contract value of RM50 million, including provisions for green building certification and BIM requirements."

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Document background
The New Construction Agreement serves as the primary contract document for construction projects in Malaysia, establishing the legal relationship between the employer/developer and the contractor. This document is essential when initiating any new construction project, whether commercial, residential, or infrastructure-related. It must comply with Malaysian construction laws, including the Construction Industry Development Board Act 1994 and related regulations. The agreement covers crucial aspects such as scope definition, payment mechanisms, quality standards, and dispute resolution procedures, while incorporating local building codes and industry standards. It's particularly important for risk management and establishing clear lines of responsibility in construction projects within the Malaysian jurisdiction.
Suggested Sections

1. Parties: Identification and details of the Employer and Contractor

2. Background: Context of the agreement and brief project overview

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

4. Scope of Works: Detailed description of construction works to be performed

5. Contract Sum and Payment Terms: Price, payment schedule, and payment mechanisms

6. Commencement and Completion: Project timeline, completion dates, and milestone requirements

7. Contractor's Obligations: Key responsibilities and duties of the contractor

8. Employer's Obligations: Key responsibilities and duties of the employer

9. Variations: Procedures for handling changes to scope or specifications

10. Quality and Standards: Required quality levels and applicable construction standards

11. Site Access and Conditions: Rules regarding site access, security, and working conditions

12. Materials and Workmanship: Standards for materials and execution of works

13. Testing and Inspection: Procedures for testing works and materials

14. Defects Liability: Obligations regarding defect rectification post-completion

15. Insurance and Indemnities: Required insurance coverage and indemnification provisions

16. Force Majeure: Provisions for unforeseen circumstances and their handling

17. Termination: Grounds and procedures for contract termination

18. Dispute Resolution: Procedures for handling disputes

19. Governing Law: Specification of Malaysian law as governing law

20. Notices: Procedures for formal communications between parties

21. Execution: Signature blocks and execution formalities

Optional Sections

1. Performance Bond: Required when project value exceeds certain threshold or upon employer's request

2. Advance Payment: Include when advance payment is part of payment structure

3. Nominated Sub-Contractors: Include when employer nominates specific sub-contractors

4. Liquidated Damages: Include specific compensation for delay or performance failures

5. Environmental Compliance: Required for projects with significant environmental impact

6. Heritage Requirements: Include for construction involving heritage buildings or areas

7. Building Information Modeling (BIM): Include when BIM is required for project delivery

8. Value Engineering: Include when cost optimization provisions are required

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings

2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of contract sum and bill of quantities

3. Schedule 3 - Project Timeline: Detailed construction schedule and milestones

4. Schedule 4 - Payment Schedule: Detailed payment terms and milestone payments

5. Schedule 5 - Site Plans: Site layout, access points, and boundaries

6. Schedule 6 - Required Insurances: Details of required insurance coverage

7. Schedule 7 - Forms and Notices: Standard forms for variations, completion certificates, etc.

8. Schedule 8 - Quality Assurance Plan: Quality control procedures and requirements

9. Appendix A - Technical Specifications: Detailed technical requirements and standards

10. Appendix B - Material Specifications: Approved materials and products specifications

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





































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Relevant Industries

Real Estate Development

Commercial Construction

Infrastructure Development

Industrial Construction

Residential Development

Public Works

Healthcare Construction

Education Infrastructure

Retail Development

Hospitality Construction

Relevant Teams

Legal

Operations

Construction

Commercial

Procurement

Risk Management

Project Management

Technical Services

Contract Administration

Business Development

Relevant Roles

Construction Manager

Project Director

Contract Manager

Legal Counsel

Chief Executive Officer

Development Manager

Quantity Surveyor

Project Manager

Site Engineer

Procurement Manager

Risk Manager

Commercial Director

Technical Director

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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