The Cost Plus Construction Agreement is particularly suitable for complex construction projects in Malta where the scope of work cannot be fully defined at the outset or where flexibility is required in the execution of works. This contract type is commonly used in renovation projects, emergency works, or projects with numerous unknown variables. The agreement carefully balances the interests of both the employer and contractor, providing transparency in cost calculation while ensuring quality control. It includes comprehensive provisions for cost verification, markup calculations, and payment procedures, all aligned with Maltese construction laws and regulations. The document addresses specific requirements under Maltese law, including compliance with the Building Regulation Act, planning permissions, and local construction standards. It's designed to provide clarity on cost components, approval processes, and project management procedures while maintaining flexibility for project modifications.
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1. Parties: Identification and details of the contractor and employer
2. Background: Context of the agreement and high-level project description
3. Definitions and Interpretation: Definitions of key terms and interpretation rules
4. Scope of Works: Detailed description of the construction works to be performed
5. Cost Plus Mechanism: Definition of costs, contractor's fee, and markup structure
6. Payment Terms: Payment procedures, timing, and documentation requirements
7. Contractor's Obligations: Key responsibilities and duties of the contractor
8. Employer's Obligations: Key responsibilities and duties of the employer
9. Project Timeline: Construction schedule, milestones, and completion dates
10. Changes and Variations: Process for handling changes to scope or specifications
11. Quality Control: Quality standards, inspections, and approval processes
12. Health and Safety: Safety requirements and compliance with Maltese regulations
13. Insurance and Indemnity: Required insurance coverage and indemnification provisions
14. Defects Liability: Defects correction period and remediation process
15. Termination: Grounds and process for contract termination
16. Force Majeure: Provisions for unforeseen circumstances and their handling
17. Dispute Resolution: Process for resolving disputes under Maltese law
18. General Provisions: Standard boilerplate clauses including notices, amendments, etc.
1. Design Responsibilities: Include when contractor has design obligations in addition to construction
2. Environmental Compliance: Include for projects with significant environmental impact or requirements
3. Financing Requirements: Include when project involves third-party financing arrangements
4. Multiple Contractor Coordination: Include when works involve multiple contractors requiring coordination
5. Equipment Supply: Include when contractor is responsible for supplying significant equipment
6. Permits and Approvals: Detailed section when complex permitting is required
7. Site Security: Include for projects requiring specific security arrangements
8. Temporary Works: Include when significant temporary works are required
9. Testing and Commissioning: Include for projects requiring specific testing procedures
1. Schedule 1 - Works Specification: Detailed technical specifications of the construction works
2. Schedule 2 - Site Plans and Drawings: Technical drawings and site layout plans
3. Schedule 3 - Cost Components: Breakdown of cost elements and markup calculations
4. Schedule 4 - Project Timeline: Detailed construction schedule and milestones
5. Schedule 5 - Key Personnel: List of key personnel from both parties with roles and responsibilities
6. Schedule 6 - Required Insurance: Detailed insurance requirements and coverage levels
7. Schedule 7 - Form of Payment Application: Template for monthly cost-plus payment applications
8. Schedule 8 - Health and Safety Requirements: Detailed health and safety procedures and requirements
9. Schedule 9 - Quality Control Procedures: Detailed quality control and testing requirements
10. Schedule 10 - Required Permits: List of required permits and responsible parties
11. Appendix A - Cost Records and Documentation: Templates and requirements for cost recording
12. Appendix B - Form of Variation Order: Template for processing variations to the works
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