This Design And Construct Contract is specifically tailored for use in Malaysia, where it serves as a comprehensive agreement between project owners and contractors who take on both design and construction responsibilities. It is particularly suitable for complex projects where single-point responsibility is desired, such as infrastructure developments, commercial buildings, or industrial facilities. The document incorporates requirements from Malaysian construction law, including CIDB regulations, architectural and engineering professional requirements, and payment security provisions. It addresses key aspects such as design development, construction methodology, quality standards, testing and commissioning, while providing mechanisms for variations, dispute resolution, and risk allocation in accordance with Malaysian legal framework and industry practice.
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1. Parties: Identifies the contracting parties - typically the Employer and the Design-Build Contractor
2. Background: Sets out the context of the agreement and key assumptions
3. Definitions and Interpretation: Defines key terms and establishes interpretation principles
4. Contractor's Obligations: Details the core design and construction obligations of the contractor
5. Employer's Obligations: Specifies the employer's duties including site access and payment
6. Contract Price and Payment: Details the contract sum, payment terms, and mechanisms
7. Time for Completion: Establishes project timeline, milestones, and completion requirements
8. Design Responsibilities: Specifies design obligations, standards, and approval processes
9. Quality and Workmanship: Sets standards for materials and workmanship
10. Variations: Procedures for changes to scope, price, or timeline
11. Testing and Completion: Requirements for testing, commissioning, and completion
12. Defects Liability: Obligations during defects liability period
13. Insurance and Indemnities: Required insurance coverage and indemnification provisions
14. Force Majeure: Handling of unforeseen events and their consequences
15. Suspension and Termination: Rights and procedures for suspension and termination
16. Dispute Resolution: Procedures for resolving disputes including arbitration
17. General Provisions: Standard contractual provisions including notices, governing law
1. Performance Security: Required when performance bonds or guarantees are needed
2. Intellectual Property Rights: Important when design involves significant IP considerations
3. Environmental Obligations: Required for projects with significant environmental impact
4. Local Content Requirements: Needed when project must meet local content quotas
5. Interface Management: Required when multiple contractors are involved
6. Value Engineering: Optional provision for cost optimization proposals
7. Advance Payment: When advance payments are part of the payment structure
8. Nominated Subcontractors: Required when employer nominates specific subcontractors
9. Archaeological Findings: For sites with potential archaeological significance
10. Building Information Modeling: When BIM is required for the project
1. Schedule 1 - Employer's Requirements: Detailed technical and functional requirements
2. Schedule 2 - Site Information: Site details, surveys, and existing conditions
3. Schedule 3 - Time Schedule: Detailed program, milestones, and completion dates
4. Schedule 4 - Payment Schedule: Payment terms, milestones, and procedures
5. Schedule 5 - Design Deliverables: Required design submissions and approval process
6. Schedule 6 - Testing and Commissioning: Testing requirements and acceptance criteria
7. Schedule 7 - Forms of Bonds and Guarantees: Templates for required security documents
8. Schedule 8 - Insurance Requirements: Details of required insurance coverage
9. Schedule 9 - Key Personnel: List of key personnel and their responsibilities
10. Schedule 10 - Forms of Certificates: Templates for various project certificates
11. Appendix A - Contract Price Breakdown: Detailed breakdown of contract price
12. Appendix B - Technical Specifications: Detailed technical specifications
13. Appendix C - Drawings: List of contract drawings and requirements
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