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Construction Subcontract Template for Malaysia

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Key Requirements PROMPT example:

Construction Subcontract

"I need a Construction Subcontract for electrical installation works in a commercial building project in Kuala Lumpur, with work scheduled to commence on March 1, 2025, including provisions for phased completion and specialized testing requirements."

Document background
The Construction Subcontract is essential for delegating specific portions of construction projects to specialized contractors in Malaysia. It is typically used when a main contractor needs to engage specialist trades or additional labor resources for project execution. The document must comply with Malaysian construction law, particularly the CIDB Act 1994 and CIPAA 2012, and typically includes detailed provisions for scope, payment, timing, quality, and safety requirements. The agreement protects both parties' interests by clearly defining responsibilities, risk allocation, and dispute resolution procedures, while ensuring alignment with the main construction contract. It's particularly important for projects requiring specialized expertise or where work packages need to be distributed among multiple contractors.
Suggested Sections

1. Parties: Identification of the main contractor and subcontractor, including registration details and CIDB license numbers

2. Background: Context of the main contract, project details, and basis for the subcontract

3. Definitions and Interpretation: Defined terms, interpretation rules, and hierarchy of documents

4. Scope of Works: Detailed description of the subcontract works, specifications, and standards

5. Contract Sum and Payment: Price, payment terms, progress payments, and CIPAA compliance provisions

6. Time for Completion: Commencement date, completion date, and programming requirements

7. Subcontractor's Obligations: General and specific obligations, including workmanship, materials, and compliance requirements

8. Main Contractor's Obligations: Access, information, and coordination responsibilities

9. Variations: Procedures for changes to scope, valuation, and time implications

10. Health, Safety and Environment: Safety requirements, environmental compliance, and site regulations

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

12. Defects Liability: Defects correction period, procedures, and warranties

13. Suspension and Termination: Rights and procedures for suspension and termination

14. Dispute Resolution: Dispute resolution procedures, including CIPAA provisions

15. General Provisions: Assignment, notices, governing law, and other standard provisions

Optional Sections

1. Performance Security: Required when the main contractor requires performance bond or retention sum

2. Intellectual Property: Needed when the works involve design responsibilities or proprietary systems

3. Confidentiality: Required for projects involving sensitive information or proprietary technology

4. Force Majeure: Specific force majeure provisions beyond standard provisions

5. Back-to-Back Provisions: Detailed flow-down provisions from main contract when requiring specific alignment

6. Quality Assurance: Specific quality management requirements for complex technical works

7. Testing and Commissioning: Detailed testing requirements for mechanical/electrical works

8. Materials and Goods: Specific provisions for supplier-nominated materials or special materials

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings

2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of contract sum and bills of quantities

3. Schedule 3 - Programme of Works: Detailed construction schedule and milestones

4. Schedule 4 - Site Rules and Regulations: Site-specific requirements and procedures

5. Schedule 5 - Forms and Notices: Standard forms for variations, claims, and other notices

6. Schedule 6 - Insurance Requirements: Detailed insurance specifications and coverage requirements

7. Schedule 7 - Key Personnel: List of key personnel and their responsibilities

8. Schedule 8 - Performance Bond Form: Standard form for performance security if required

9. Appendix A - Main Contract Excerpts: Relevant excerpts from main contract affecting subcontract works

10. Appendix B - Technical Drawings: Complete set of relevant technical drawings

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions










































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Relevant Industries

Commercial Construction

Residential Construction

Industrial Construction

Infrastructure Development

Civil Engineering

Mechanical and Electrical

Interior Fit-out

Renovation and Refurbishment

Healthcare Construction

Educational Facilities

Retail Construction

Hospitality Construction

Relevant Teams

Legal

Construction

Operations

Commercial

Procurement

Project Management

Contract Administration

Risk Management

Technical Services

Site Operations

Quality Assurance

Relevant Roles

Project Manager

Contract Manager

Construction Manager

Site Manager

Quantity Surveyor

Project Engineer

Construction Director

Legal Counsel

Commercial Manager

Procurement Manager

Risk Manager

Operations Manager

Technical Director

Chief Operating Officer

Contracts Administrator

Site Supervisor

Project Coordinator

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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