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The Building Work Agreement is a crucial legal document used in the Malaysian construction industry when engaging contractors for construction projects. It is designed to protect both the property owner/developer and the contractor by clearly defining the scope of work, responsibilities, and rights of each party. This agreement is essential for projects ranging from commercial buildings to residential developments, incorporating Malaysian construction laws, CIDB requirements, and local building regulations. The document typically includes detailed specifications, payment mechanisms, project timelines, quality standards, and dispute resolution procedures. It should be used whenever engaging a contractor for substantial construction work in Malaysia, ensuring compliance with local legal requirements while providing a clear framework for project execution.

1. Parties: Identification of the Employer and the Contractor, including their full legal names, registration numbers, and registered addresses

2. Background: Brief context of the project and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

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

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

6. Duration and Programme: Project timeline, completion date, and key milestones

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

8. Employer's Obligations: Key responsibilities including site access, permits, and information provision

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

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

11. Health, Safety and Environment: Safety requirements, environmental protection measures

12. Insurance and Securities: Required insurance coverage and performance securities

13. Defects Liability: Defects liability period and rectification procedures

14. Termination: Grounds and procedures for contract termination

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

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