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Sub Contract Work Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions between a main contractor and a subcontractor for the execution of specific works or services. The document outlines detailed provisions for scope of work, payment terms, timeline, quality standards, and compliance requirements in accordance with Malaysian regulations, including the Construction Industry Development Board Act 1994 and related legislation. It includes provisions for risk allocation, insurance requirements, dispute resolution mechanisms, and specific performance obligations tailored to the Malaysian business environment.

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What is a Sub Contract Work Agreement?

The Sub Contract Work Agreement is an essential document in the Malaysian construction and development landscape, used when a main contractor needs to delegate specific portions of a project to specialized contractors. This agreement type is particularly relevant under Malaysian law, which requires clear documentation of subcontracting arrangements, especially in regulated industries. The document ensures compliance with local regulations including the Construction Industry Development Board Act 1994, Employment Act 1955, and other relevant legislation. It typically includes comprehensive details about work scope, payment terms, safety requirements, and quality standards, while incorporating specific provisions required by Malaysian law for subcontracting arrangements. The agreement is crucial for risk management, establishing clear lines of responsibility, and ensuring proper project execution within the Malaysian legal framework.

What sections should be included in a Sub Contract Work Agreement?

1. Parties: Identifies and provides full details of the main contractor and subcontractor, including registration numbers and addresses

2. Background: Outlines the context of the main contract and the need for subcontracting specific works

3. Definitions: Defines key terms used throughout the agreement to ensure clear interpretation

4. Scope of Works: Detailed description of the subcontracted works to be performed

5. Contract Sum and Payment Terms: Specifies the agreed price and payment schedule, including payment milestones

6. Duration and Timeline: Sets out the commencement date, completion date, and any intermediate milestones

7. Obligations of the Subcontractor: Details the subcontractor's responsibilities, including quality standards and compliance requirements

8. Obligations of the Main Contractor: Outlines the main contractor's duties and responsibilities

9. Safety and Compliance: Specifies safety requirements and compliance with relevant regulations

10. Insurance and Indemnity: Details required insurance coverage and indemnification obligations

11. Termination: Sets out grounds and procedures for contract termination

12. Dispute Resolution: Establishes procedures for handling disputes

13. Governing Law: Confirms Malaysian law as the governing law and jurisdiction

What sections are optional to include in a Sub Contract Work Agreement?

1. Performance Bond: Required when a performance guarantee is needed from the subcontractor

2. Intellectual Property Rights: Included when the work involves creation or use of intellectual property

3. Confidentiality: Added when sensitive information will be shared during the project

4. Force Majeure: Included to address unforeseen circumstances preventing performance

5. Environmental Requirements: Required for projects with specific environmental compliance needs

6. Quality Assurance: Added for projects requiring specific quality management systems

7. Variations: Detailed procedure for handling changes to scope, when significant variations are anticipated

8. Defects Liability: Included when specific warranty periods are required post-completion

What schedules should be included in a Sub Contract Work Agreement?

1. Schedule 1: Scope of Works: Detailed technical specifications and drawings of the works to be performed

2. Schedule 2: Bill of Quantities: Itemized list of quantities, rates, and prices for the works

3. Schedule 3: Project Timeline: Detailed project schedule with milestones and completion dates

4. Schedule 4: Payment Schedule: Detailed breakdown of payment terms, milestones, and amounts

5. Schedule 5: Safety Requirements: Specific safety procedures and requirements for the project

6. Schedule 6: Required Insurance: Details of insurance types and coverage amounts required

7. Appendix A: Main Contract Extract: Relevant excerpts from the main contract affecting subcontract works

8. Appendix B: Technical Specifications: Detailed technical requirements and standards for the works

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

Jurisdiction

Malaysia

Cost

Free to use

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