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Project Service Agreement for Malaysia

Project Service Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions under which a service provider will deliver specific project-based services to a client. The document outlines the scope of services, delivery timelines, payment terms, and performance standards while incorporating relevant Malaysian legal requirements, including those under the Contracts Act 1950 and other applicable regulations. It provides a structured framework for project execution, risk allocation, and dispute resolution, ensuring compliance with local legal requirements while protecting both parties' interests.

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What is a Project Service Agreement?

The Project Service Agreement serves as a crucial legal instrument for businesses operating in Malaysia that engage external service providers for specific projects. This document is essential when organizations require specialized project-based services, whether for technology implementation, consulting work, construction projects, or other professional services. The agreement, governed by Malaysian law, comprehensively addresses service scope, deliverables, timelines, payment terms, and performance standards while ensuring compliance with local regulations. It is particularly valuable for complex projects requiring clear delineation of responsibilities, risk allocation, and specific delivery milestones. The Project Service Agreement incorporates necessary protections for both parties, including intellectual property rights, confidentiality provisions, and dispute resolution mechanisms aligned with Malaysian legal requirements.

What sections should be included in a Project Service Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and relationship between the parties

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

4. Scope of Services: Detailed description of services to be provided

5. Term and Timeline: Duration of the agreement and key project milestones

6. Payment Terms: Fees, payment schedule, and invoicing requirements

7. Service Provider's Obligations: Key responsibilities and commitments of the service provider

8. Client's Obligations: Key responsibilities and commitments of the client

9. Change Management: Process for handling changes to scope or requirements

10. Warranties and Representations: Standard warranties from both parties

11. Liability and Indemnification: Allocation of risks and liability caps

12. Confidentiality: Protection of confidential information

13. Force Majeure: Provisions for unforeseen circumstances

14. Termination: Grounds and process for termination

15. Dispute Resolution: Process for resolving disputes

16. General Provisions: Standard boilerplate clauses

What sections are optional to include in a Project Service Agreement?

1. Intellectual Property Rights: Required when the services involve creation or use of intellectual property

2. Data Protection: Required when personal data processing is involved

3. Compliance with Specific Regulations: Required for regulated industries or specific compliance requirements

4. Insurance: Required for high-risk projects or when specific insurance coverage is needed

5. Security Requirements: Required when dealing with sensitive information or systems

6. Personnel Requirements: Required when specific qualifications or security clearances are needed

7. Business Continuity: Required for critical services or long-term projects

8. Environmental Compliance: Required for projects with environmental impact

9. Anti-Bribery and Corruption: Required for high-value contracts or government-related projects

What schedules should be included in a Project Service Agreement?

1. Schedule 1 - Service Specifications: Detailed technical specifications of the services

2. Schedule 2 - Pricing and Payment Schedule: Detailed breakdown of fees and payment milestones

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

4. Schedule 4 - Project Timeline: Detailed project schedule and milestones

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

6. Schedule 6 - Required Documentation: List of deliverables and documentation requirements

7. Schedule 7 - Change Request Form: Template for requesting and documenting changes

8. Schedule 8 - Acceptance Criteria: Criteria for accepting deliverables

9. Schedule 9 - Contact Details: Contact information for key stakeholders

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

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Project Agreement

Cost

Free to use
Relevant legal definitions
































Clauses




































Relevant Industries

Information Technology

Construction

Engineering

Professional Services

Management Consulting

Manufacturing

Energy

Telecommunications

Healthcare

Education

Research and Development

Infrastructure

Digital Transformation

Environmental Services

Relevant Teams

Legal

Procurement

Operations

Finance

Project Management Office

Risk and Compliance

Commercial

Business Development

Technical Services

Quality Assurance

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Project Manager

Procurement Manager

Legal Counsel

Contract Manager

Operations Director

Commercial Director

Finance Manager

Risk Manager

Compliance Officer

Technical Director

Business Development Manager

Department Head

Program 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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