The Construction Service Contract serves as a fundamental legal instrument in Malaysia's construction industry, establishing the rights, obligations, and responsibilities of parties involved in construction projects. This contract type is essential for any construction project in Malaysia, whether it involves building development, infrastructure works, or renovation projects. The document incorporates requirements from Malaysian construction law, including CIDB regulations and CIPAA 2012, while addressing project-specific needs such as scope definition, payment mechanisms, quality standards, and dispute resolution procedures. It provides a comprehensive framework for project execution while ensuring compliance with local regulations and industry standards.
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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 construction works to be performed
5. Contract Sum and Payment Terms: Project cost, payment schedule, and payment mechanisms in compliance with CIPAA 2012
6. Project Timeline: Commencement date, completion date, and key milestones
7. Contractor's Obligations: Key responsibilities including workmanship, materials, and compliance with laws
8. Employer's Obligations: Site access, permits, approvals, and other client responsibilities
9. Quality and Standards: Required quality standards, inspections, and testing procedures
10. Health, Safety and Environment: HSE requirements and compliance with relevant regulations
11. Variations: Procedures for handling changes to scope or specifications
12. Extensions of Time: Circumstances allowing time extensions and related procedures
13. Defects Liability: Defects liability period and rectification procedures
14. Insurance and Indemnities: Required insurance coverage and indemnification provisions
15. Termination: Grounds and procedures for contract termination
16. Dispute Resolution: Procedures for resolving disputes including mediation and arbitration
17. General Provisions: Standard legal provisions including notices, governing law, and assignment
1. Performance Bond: Required for larger projects or when specified by employer
2. Advance Payment: Include when advance payment is required with associated bank guarantee
3. Nominated Subcontractors: Include when specific subcontractors are nominated by the employer
4. Liquidated Damages: Include specific compensation for delay or performance failures
5. Intellectual Property Rights: Include for projects involving design elements or proprietary technology
6. Force Majeure: Detailed provisions for unforeseen circumstances beyond parties' control
7. Environmental Management: Detailed environmental requirements for environmentally sensitive projects
8. Security Requirements: For projects requiring specific security measures or clearances
9. Quality Assurance Program: Detailed quality management requirements for complex projects
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Project Timeline: Detailed project schedule with milestones
3. Schedule 3 - Bill of Quantities: Itemized list of quantities and rates
4. Schedule 4 - Payment Schedule: Detailed payment terms and milestone payments
5. Schedule 5 - Site Information: Site details, access points, and existing conditions
6. Schedule 6 - Technical Specifications: Detailed technical requirements and standards
7. Schedule 7 - Forms and Certificates: Standard forms for variations, completion certificates, etc.
8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental requirements
9. Appendix A - Insurance Requirements: Detailed insurance coverage requirements
10. Appendix B - Performance Bond Format: Standard format for performance bond if required
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Infrastructure
Real Estate Development
Industrial Development
Commercial Development
Residential Development
Energy
Transportation
Healthcare
Education
Hospitality
Relevant Teams
Legal
Operations
Commercial
Project Management
Construction
Procurement
Risk & Compliance
Technical
Finance
Business Development
Relevant Roles
Project Manager
Construction Manager
Contract Manager
Legal Counsel
Commercial Director
Project Director
Chief Executive Officer
Operations Manager
Site Manager
Quantity Surveyor
Project Engineer
Procurement Manager
Risk Manager
Compliance Officer
Technical Director
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