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Contractor Subcontractor Agreement Template for Malaysia

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Key Requirements PROMPT example:

Contractor Subcontractor Agreement

"I need a Contractor Subcontractor Agreement for a high-rise residential development project in Kuala Lumpur, with special emphasis on safety requirements and performance bonds, as the project involves specialized foundation work valued at RM 5 million to commence in March 2025."

Document background
The Contractor Subcontractor Agreement is essential for construction and development projects in Malaysia where specialized work needs to be delegated to qualified subcontractors. This document is crucial when a main contractor needs to engage specialist contractors for specific aspects of a larger project, ensuring compliance with Malaysian construction laws including CIPAA 2012 and CIDB regulations. The agreement defines the scope of work, payment terms, quality standards, and safety requirements while protecting both parties' interests through clear risk allocation and dispute resolution mechanisms. It's particularly important for projects requiring specialized skills, equipment, or licenses that the main contractor may not possess directly.
Suggested Sections

1. Parties: Identification of the main contractor and subcontractor, including registration numbers and addresses

2. Background: Context of the main contract and the need for subcontracting

3. Definitions: Key terms used throughout the agreement

4. Scope of Works: Detailed description of the subcontractor's obligations and deliverables

5. Contract Sum and Payment Terms: Price, payment schedule, and payment procedures in compliance with CIPAA 2012

6. Duration and Timeline: Project schedule, milestones, and completion dates

7. Performance Standards: Quality requirements and acceptance criteria

8. Compliance and Safety: Obligations regarding laws, regulations, and safety requirements

9. Insurance and Indemnity: Required insurance coverage and indemnification provisions

10. Warranties and Representations: Guarantees regarding capacity, quality, and performance

11. Termination: Grounds and procedures for contract termination

12. Dispute Resolution: Procedures for handling disputes including arbitration provisions

13. General Provisions: Standard clauses including notices, amendments, and governing law

Optional Sections

1. Performance Bond: Required when project value exceeds certain threshold or when specified by main contract

2. Intellectual Property Rights: Needed when work involves design elements or proprietary information

3. Liquidated Damages: Specific penalties for delay or non-performance

4. Worker Accommodation: Required when contractor provides housing facilities

5. Equipment and Materials: Detailed when substantial equipment or materials are provided by either party

6. Environmental Requirements: For projects with specific environmental impact considerations

7. Security Requirements: For projects requiring specific site security measures

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings

2. Schedule 2 - Bill of Quantities: Itemized list of works and corresponding prices

3. Schedule 3 - Project Timeline: Detailed project schedule with milestones

4. Schedule 4 - Payment Schedule: Detailed payment terms and milestone payments

5. Schedule 5 - Site Rules and Safety Requirements: Specific site regulations and safety protocols

6. Schedule 6 - Insurance Requirements: Detailed insurance specifications and coverage amounts

7. Schedule 7 - Forms and Certificates: Standard forms for notices, variations, and completion certificates

8. Schedule 8 - Key Personnel: List of key personnel from both parties with roles and responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





































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Relevant Industries

Construction

Infrastructure Development

Real Estate Development

Mining

Oil & Gas

Industrial Development

Commercial Development

Residential Development

Manufacturing

Energy

Telecommunications

Relevant Teams

Legal

Procurement

Operations

Project Management

Commercial

Risk & Compliance

Health & Safety

Quality Control

Technical Services

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Contract Manager

Procurement Manager

Legal Counsel

Commercial Director

Operations Director

Site Supervisor

Quality Control Manager

Health and Safety Manager

Risk Manager

Compliance Officer

Chief Operating Officer

Technical Director

Construction Director

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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