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The Construction Management Agreement is a crucial document used in Malaysian construction projects when an owner/developer requires professional construction management services. This agreement, governed by Malaysian law and regulated under the Construction Industry Development Board (CIDB) framework, establishes the terms under which a construction manager will oversee and coordinate construction activities. It typically includes detailed provisions for project coordination, cost control, schedule management, quality assurance, and risk management. The document is particularly important in complex construction projects where specialized expertise is needed to manage multiple contractors, ensure compliance with local regulations, and maintain project efficiency. The agreement must align with Malaysian construction industry standards, local building codes, and relevant statutory requirements while providing clear frameworks for project execution and dispute resolution.

1. Parties: Identification and details of the contracting parties (Owner/Employer and Construction Manager)

2. Background: Context of the agreement, project overview, and purpose of engaging the construction manager

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

4. Appointment and Scope of Services: Formal appointment and detailed scope of construction management services

5. Construction Manager's Obligations: Detailed responsibilities, duties, and standard of care expected from the construction manager

6. Client's Obligations: Responsibilities and obligations of the client/owner including provision of information and approvals

7. Project Parameters: Key project details including location, timeline, budget, and quality requirements

8. Authority and Limitations: Extent and limitations of construction manager's authority to act on behalf of the client

9. Fees and Payment: Fee structure, payment terms, and mechanisms for additional services

10. Project Team and Personnel: Key personnel requirements, staffing obligations, and replacement procedures

11. Time and Program: Project schedule, milestones, and time management obligations

12. Quality Management: Quality control procedures, standards, and compliance requirements

13. Reporting and Communications: Reporting requirements, communication protocols, and documentation standards

14. Variations and Changes: Procedures for handling changes to scope, schedule, or budget

15. Risk Management: Risk allocation, insurance requirements, and risk mitigation procedures

16. Intellectual Property: Ownership and usage rights of project documents and intellectual property

17. Confidentiality: Confidentiality obligations and permitted disclosures

18. Liability and Indemnification: Limitation of liability, indemnification provisions, and warranties

19. Term and Termination: Duration of agreement, termination rights, and consequences of termination

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

21. General Provisions: Standard boilerplate clauses including notices, governing law, and entire agreement