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Residential Building Contract Agreement for Malaysia

Residential Building Contract Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions between a property owner and a building contractor for residential construction works. This document complies with the Housing Development (Control and Licensing) Act 1966 and related Malaysian construction regulations, outlining detailed specifications, payment terms, timelines, quality standards, and respective obligations of all parties involved. It includes provisions for dispute resolution, variations, and defects liability, all tailored to meet Malaysian construction industry standards and legal requirements.

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Residential Building Contract Agreement

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What is a Residential Building Contract Agreement?

The Residential Building Contract Agreement is a crucial legal document used in Malaysia when engaging a contractor for residential construction projects. It provides a comprehensive framework for managing the construction process, protecting both the property owner's and contractor's interests while ensuring compliance with Malaysian construction laws and regulations. This document is essential for projects ranging from new house construction to major residential renovations, incorporating specific requirements under the Housing Development (Control and Licensing) Act 1966, Construction Industry Development Board Act 1994, and other relevant Malaysian legislation. It includes detailed provisions for project scope, payment terms, quality standards, timelines, and dispute resolution mechanisms, making it suitable for both standard residential projects and custom home builds in Malaysia.

What sections should be included in a Residential Building Contract Agreement?

1. Parties: Identification of the property owner (employer) and the building contractor, including full legal names and addresses

2. Background: Brief context of the agreement, including the property location and general nature of the works to be performed

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Works: Detailed description of the construction works to be carried out, including general specifications and standards

5. Contract Sum and Payment Terms: Total contract price, payment schedule, progress payments, and payment procedures

6. Commencement and Completion: Start date, completion date, and provisions for extensions of time

7. Contractor's Obligations: Key responsibilities including workmanship, materials, safety, compliance with laws and regulations

8. Employer's Obligations: Property owner's responsibilities including site access, permits, and timely payments

9. Variations: Procedures for handling changes to the original scope of works

10. Quality and Inspections: Quality standards, inspection procedures, and acceptance criteria

11. Defects Liability: Defects liability period, rectification procedures, and warranties

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

13. Termination: Grounds and procedures for contract termination by either party

14. Dispute Resolution: Procedures for handling disputes, including mediation and arbitration

15. General Provisions: Standard contract clauses including notices, governing law, and entire agreement

What sections are optional to include in a Residential Building Contract Agreement?

1. Performance Bond: Required when project value exceeds certain threshold or when specifically requested by the employer

2. Liquidated Damages: Specific provisions for compensation in case of delay, included when project timing is critical

3. Environmental Requirements: Additional environmental protection measures for environmentally sensitive areas

4. Security of Payment: Enhanced payment security provisions for high-value contracts

5. Intellectual Property: Required when custom designs or innovative construction methods are involved

6. Nominated Sub-Contractors: Included when specific parts of the work require employer-nominated specialists

7. Force Majeure: Detailed provisions for handling unforeseen circumstances, particularly relevant in long-term projects

What schedules should be included in a Residential Building Contract Agreement?

1. Schedule 1 - Drawings and Specifications: Detailed architectural and engineering drawings, technical specifications

2. Schedule 2 - Bill of Quantities: Itemized list of materials, quantities, and prices

3. Schedule 3 - Payment Schedule: Detailed breakdown of payment milestones and amounts

4. Schedule 4 - Construction Timeline: Detailed project schedule including milestones and critical paths

5. Schedule 5 - Material Specifications: Detailed specifications for all materials to be used

6. Schedule 6 - Permits and Approvals: List of required permits and responsibilities for obtaining them

7. Appendix A - Site Plan: Detailed plan showing site boundaries, access points, and relevant features

8. Appendix B - Quality Assurance Plan: Detailed procedures for quality control and testing

9. Appendix C - Safety Management Plan: Safety procedures and requirements for the construction site

Authors

Alex Denne

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

Jurisdiction

Malaysia

Cost

Free to use
Relevant legal definitions
































Clauses
































Relevant Industries

Construction

Real Estate

Residential Development

Architecture

Building Materials

Construction Management

Property Development

Housing Development

Relevant Teams

Legal

Construction

Project Management

Procurement

Risk & Compliance

Property Development

Operations

Contract Administration

Quality Assurance

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Quantity Surveyor

Building Contractor

Site Supervisor

Architect

Legal Counsel

Property Developer

Construction Director

Procurement Manager

Risk Manager

Building Inspector

Development Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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