This Simple Construction Contract is specifically designed for construction projects in Malaysia where parties require a clear, comprehensive, yet uncomplicated agreement. It is particularly suited for small to medium-sized construction projects where the full complexity of standard forms (like PAM or CIDB forms) may not be necessary. The document incorporates essential requirements under Malaysian law, including compliance with the Construction Industry Development Board Act 1994 and the Construction Industry Payment and Adjudication Act 2012. It provides a balanced framework for both employer and contractor, covering crucial aspects such as payment terms, variations, and dispute resolution, while maintaining accessibility and practical utility for typical construction projects.
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1. Parties: Identification and details of the contracting parties (employer and contractor)
2. Background: Context of the agreement and brief project overview
3. Definitions: Definitions of key terms used throughout the contract
4. Scope of Works: Detailed description of the construction works to be performed
5. Contract Sum and Payment Terms: Agreement on price and payment schedule, including progress payments
6. Duration and Completion: Project timeline, completion date, and provisions for extensions of time
7. Contractor's Obligations: Key responsibilities and duties of the contractor
8. Employer's Obligations: Key responsibilities and duties of the employer
9. Materials and Workmanship: Quality standards and requirements for materials and work
10. Variations: Process for handling changes to the scope of work
11. Defects Liability: Contractor's obligations regarding defects and rectification period
12. Insurance and Indemnity: Required insurance coverage and indemnification provisions
13. Termination: Grounds and procedures for contract termination
14. Dispute Resolution: Procedures for resolving disputes, including reference to CIPAA
15. Governing Law: Specification of Malaysian law as governing law
16. Notices: Process for formal communications between parties
17. Execution: Signature blocks and execution formalities
1. Performance Bond: Required when project value exceeds certain threshold or upon employer's requirement
2. Liquidated Damages: Specific damages for delay, included when time is of essence
3. Site Conditions: Included when specific site challenges or conditions need addressing
4. Safety Requirements: Detailed safety provisions for high-risk projects
5. Environmental Requirements: Required for projects with significant environmental impact
6. Subcontracting: Included when subcontracting is anticipated or needs regulation
7. Retention Sum: When employer requires retention of portion of payment as security
8. Force Majeure: Detailed provisions for unforeseen events, particularly relevant in longer projects
1. Schedule 1 - Scope of Works: Detailed specifications and drawings of the works
2. Schedule 2 - Contract Sum Breakdown: Detailed breakdown of costs and bill of quantities
3. Schedule 3 - Project Timeline: Detailed project schedule and milestones
4. Schedule 4 - Payment Schedule: Detailed payment terms and milestone payments
5. Schedule 5 - Technical Specifications: Detailed technical requirements and standards
6. Schedule 6 - Site Details: Site plan and relevant site information
7. Schedule 7 - Required Insurances: Details of required insurance coverage
8. Schedule 8 - Forms and Notices: Standard forms for variations, completion certificates, etc.
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Residential Development
Commercial Development
Industrial Construction
Civil Engineering
Property Management
Architecture
Building Materials
Relevant Teams
Legal
Construction
Project Management
Procurement
Commercial
Operations
Risk & Compliance
Property Development
Technical Services
Contract Administration
Relevant Roles
Construction Manager
Project Manager
Contract Administrator
Legal Counsel
Quantity Surveyor
Site Manager
Construction Director
Procurement Manager
Risk Manager
Commercial Manager
Development Manager
Chief Operating Officer
Managing Director
Architect
Civil Engineer
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