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The Pre-Construction Agreement serves as a crucial document in the Malaysian construction industry, typically used before the main construction phase begins. It is essential when clients require professional services for project planning, feasibility assessment, and preliminary design work. This agreement, governed by Malaysian law and regulations, establishes the scope of pre-construction services, payment terms, and responsibilities of all parties involved. It covers key aspects such as design review, cost planning, value engineering, and program development, while ensuring compliance with local building codes and environmental regulations. The document is particularly important for managing expectations and deliverables during the critical planning phase of construction projects.

1. Parties: Identifies and provides details of the contracting parties - typically the employer/client and the contractor/consultant

2. Background: Sets out the context of the agreement and the project overview

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Scope of Pre-Construction Services: Details the specific pre-construction services to be provided, including design review, cost planning, and feasibility studies

5. Contractor's Obligations: Outlines the specific duties and responsibilities of the contractor during the pre-construction phase

6. Client's Obligations: Specifies the client's responsibilities including provision of information and timely decision-making

7. Duration and Programme: Sets out the timeline for pre-construction services and key milestones

8. Payment Terms: Details the fee structure, payment schedule, and invoicing requirements

9. Personnel and Resources: Specifies key personnel requirements and resource commitments

10. Intellectual Property: Addresses ownership and usage rights of designs, documents, and other materials

11. Confidentiality: Sets out obligations regarding confidential information

12. Insurance and Liability: Specifies required insurance coverage and liability limitations

13. Termination: Details circumstances and procedures for agreement termination

14. Governing Law and Dispute Resolution: Specifies Malaysian law as governing law and outlines dispute resolution procedures