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Construction Subcontracts

Construction Subcontracts Template for Malaysia

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Key Requirements PROMPT example:

Construction Subcontracts

"I need a Construction Subcontract for a high-rise residential project in Kuala Lumpur, where we'll be subcontracting the mechanical and electrical works for RM 5 million, with work scheduled to commence in March 2025."

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Document background
Construction Subcontracts are essential documents in the Malaysian construction industry, used when a main contractor delegates specific portions of construction work to specialized subcontractors. This document type is crucial for projects governed by Malaysian law, particularly those requiring registration with the Construction Industry Development Board (CIDB). The agreement details the scope of works, payment mechanisms compliant with CIPAA 2012, safety requirements under OSHA 1994, and various other obligations specific to Malaysian construction practices. Construction Subcontracts are typically used for both large-scale developments and smaller construction projects, requiring careful consideration of local building regulations, environmental requirements, and industry standards. The document serves as a crucial link in the construction chain, ensuring clear delineation of responsibilities while maintaining alignment with the main contract requirements.
Suggested Sections

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

2. Background: Context of the main contract and the relationship between the works under the main contract and subcontract

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

4. Scope of Subcontract Works: Detailed description of the works to be performed by the subcontractor

5. Contract Sum and Payment Terms: Pricing, payment schedule, and mechanisms compliant with CIPAA 2012

6. Duration and Programme: Timeframe for completion, key milestones, and programming requirements

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

8. Main Contractor's Obligations: Main contractor's responsibilities including site access and coordination

9. Safety and Environmental Requirements: Compliance with OSHA 1994 and environmental regulations

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

11. Variations: Procedures for changes to the scope of works

12. Extensions of Time: Circumstances allowing time extensions and claim procedures

13. Defects Liability: Defects liability period and remediation obligations

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

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Dispute resolution procedures including CIPAA adjudication and arbitration

17. General Provisions: Standard contractual provisions including notices, governing law, and assignment

Optional Sections

1. Performance Bond: Required when the subcontract value exceeds a certain threshold or when specified by the main contract

2. Advance Payment: Included when advance payment is to be provided to the subcontractor

3. Materials on Site: Special provisions for materials storage and payment for materials on site

4. Nominated Suppliers: Provisions for dealing with nominated suppliers if applicable

5. Intellectual Property Rights: Required when the subcontract works involve design or specialized technical solutions

6. Liquidated Damages: Included when specific completion dates are critical

7. Back-to-Back Provisions: Specific provisions flowing down from the main contract when required

8. Force Majeure: Detailed force majeure provisions when required beyond standard provisions

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings for the subcontract works

2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of the contract sum including bill of quantities

3. Schedule 3 - Programme of Works: Detailed timeline and sequence of works

4. Schedule 4 - Special Conditions: Any special conditions or modifications to standard terms

5. Schedule 5 - Form of Payment Certificate: Standard form for payment applications and certificates

6. Schedule 6 - Safety Requirements: Detailed safety procedures and requirements

7. Schedule 7 - Quality Assurance Plan: Detailed quality control procedures and requirements

8. Schedule 8 - List of Drawing and Documents: Complete list of contract drawings and technical documents

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

10. Appendix B - Insurance Requirements: Detailed insurance requirements and minimum coverage amounts

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

















































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Relevant Industries

Construction

Infrastructure

Real Estate Development

Civil Engineering

Building Services

Industrial Construction

Commercial Construction

Residential Construction

Energy Infrastructure

Transportation Infrastructure

Public Works

Mining Construction

Healthcare Construction

Educational Facilities

Relevant Teams

Legal

Operations

Construction

Commercial

Procurement

Risk Management

Project Management

Contract Administration

Technical

Compliance

Engineering

Health and Safety

Relevant Roles

Contract Manager

Project Manager

Construction Manager

Legal Counsel

Quantity Surveyor

Site Supervisor

Procurement Manager

Commercial Manager

Risk Manager

Operations Director

Construction Director

Legal Director

Contracts Administrator

Project Engineer

Chief Engineer

Technical Director

Compliance Officer

Safety 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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