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Builder Development Agreement

Builder Development Agreement Template for Malaysia

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Key Requirements PROMPT example:

Builder Development Agreement

"I need a Builder Development Agreement for a high-rise residential project in Kuala Lumpur with a contract value of RM50 million, including provisions for green building certification and phased completion by March 2025."

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Document background
The Builder Development Agreement is a crucial document in Malaysian construction projects that formalizes the relationship between property developers and construction companies. It is primarily used when engaging a builder for significant development projects, whether residential, commercial, or industrial. The agreement must comply with Malaysian legislation, particularly the Construction Industry Development Board Act 1994 and related regulations. This document typically includes comprehensive details about construction specifications, payment mechanisms, project timelines, quality standards, and risk allocation. It serves as the primary reference point for project execution and dispute resolution, incorporating both mandatory regulatory requirements and project-specific provisions. The agreement is essential for projects requiring CIDB compliance and local authority approvals in Malaysia.
Suggested Sections

1. Parties: Identification of the developer and builder, including registration details and CIDB licenses

2. Background: Context of the development project, including property details and development approvals

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Appointment and Scope of Works: Formal appointment of builder and detailed scope of construction works

5. Contract Sum and Payment Terms: Total contract value, payment schedule, and payment mechanisms

6. Project Timeline: Construction schedule, milestone dates, and completion requirements

7. Builder's Obligations: Comprehensive list of builder's duties, responsibilities, and warranties

8. Developer's Obligations: Developer's responsibilities including site access and approvals

9. Quality and Standards: Construction quality requirements and applicable building standards

10. Variations: Procedures for handling changes to scope or specifications

11. Testing and Commissioning: Requirements for testing works and commissioning of systems

12. Practical Completion: Conditions and procedures for achieving practical completion

13. Defects Liability: Defects liability period and rectification obligations

14. Insurance and Indemnities: Required insurance coverage and indemnification provisions

15. Performance Security: Requirements for performance bonds or other security

16. Termination: Grounds and procedures for contract termination

17. Dispute Resolution: Procedures for resolving disputes including mediation and arbitration

18. General Provisions: Standard boilerplate clauses including notices and governing law

Optional Sections

1. Environmental Management: Additional environmental obligations when project requires specific environmental management plans

2. Community Relations: Procedures for managing community impact when project is in sensitive or densely populated areas

3. Heritage Protection: Special requirements when construction involves or is near heritage sites

4. Green Building Requirements: Specific provisions when project aims for green building certification

5. Value Engineering: Procedures for cost optimization when project allows for alternative solutions

6. Building Information Modeling: BIM requirements when project utilizes BIM technology

7. Phased Completion: Additional provisions when project requires completion in stages

8. Intellectual Property: IP provisions when custom designs or innovative methods are involved

Suggested Schedules

1. Schedule 1 - Project Specifications: Detailed technical specifications and requirements

2. Schedule 2 - Contract Drawings: Approved construction drawings and design documents

3. Schedule 3 - Bill of Quantities: Detailed breakdown of quantities and rates

4. Schedule 4 - Payment Schedule: Detailed payment milestones and amounts

5. Schedule 5 - Construction Program: Detailed construction timeline and milestone dates

6. Schedule 6 - Site Plans: Site layout, access points, and temporary works areas

7. Schedule 7 - Forms and Certificates: Template forms for various notices and certificates

8. Schedule 8 - Quality Assurance Plan: Detailed quality control procedures and requirements

9. Schedule 9 - List of Approved Subcontractors: Pre-approved subcontractors for specific works

10. Schedule 10 - Performance Bond Format: Required format for performance security

11. Appendix A - Development Approvals: Copies of relevant permits and approvals

12. Appendix B - Insurance Requirements: Detailed insurance coverage requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions












































Clauses































Relevant Industries

Real Estate Development

Construction

Infrastructure Development

Commercial Property

Residential Property

Industrial Development

Urban Planning

Project Management

Relevant Teams

Legal

Construction

Development

Project Management

Commercial

Operations

Finance

Risk & Compliance

Technical Services

Procurement

Relevant Roles

Development Director

Construction Manager

Project Manager

Legal Counsel

Contract Manager

Chief Executive Officer

Technical Director

Commercial Director

Site Manager

Quantity Surveyor

Risk Manager

Compliance Officer

Finance Director

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

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