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Project Agreement Between Two Companies Template for Malaysia

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Key Requirements PROMPT example:

Project Agreement Between Two Companies

"I need a Project Agreement Between Two Companies under Malaysian law for a software development project starting March 2025, where a local tech company will develop a custom ERP system for a manufacturing company, including provisions for data protection and software licensing."

Document background
The Project Agreement Between Two Companies serves as a fundamental legal instrument in Malaysian business transactions, designed to govern project-based collaborations between corporate entities. This document is essential when companies engage in specific project undertakings that require detailed documentation of scope, responsibilities, and commercial terms. Governed by Malaysian law, particularly the Contracts Act 1950 and other relevant legislation, it provides comprehensive coverage of project execution parameters, risk allocation, and performance standards. The agreement is commonly used across various industries for projects ranging from technology implementation to infrastructure development, ensuring clear definition of deliverables, timelines, and payment terms while incorporating necessary safeguards for both parties' interests.
Suggested Sections

1. Parties: Identifies the contracting parties with their full legal names, registration numbers, and registered addresses

2. Background: Sets out the context of the agreement, including the project overview and parties' intentions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Scope of Project: Detailed description of the project deliverables, objectives, and boundaries

5. Duration and Timelines: Project commencement, completion dates, and key milestones

6. Payment Terms: Payment structure, amounts, invoicing process, and payment schedules

7. Obligations and Responsibilities: Specific duties and responsibilities of each party

8. Project Management: Governance structure, reporting requirements, and communication protocols

9. Intellectual Property Rights: Ownership and usage rights of project-related IP

10. Confidentiality: Protection of confidential information and trade secrets

11. Warranties and Representations: Guarantees and assurances provided by each party

12. Liability and Indemnification: Allocation of risks and responsibilities for damages

13. Force Majeure: Provisions for unforeseen circumstances affecting project execution

14. Termination: Conditions and procedures for ending the agreement

15. Governing Law and Jurisdiction: Applicable law and courts for dispute resolution

16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Insurance: Required when specific insurance coverage needs to be maintained for the project

2. Security Provisions: Used when performance bonds or other security instruments are required

3. Health and Safety: Necessary for projects involving on-site work or physical operations

4. Environmental Compliance: Required for projects with environmental impact considerations

5. Subcontracting: Include when subcontracting is permitted under the agreement

6. Change Management: Required for complex projects where scope changes are likely

7. Testing and Acceptance: Necessary for projects delivering specific products or systems

8. Training and Knowledge Transfer: Include when the project involves capability building or system handover

9. Data Protection: Required when personal or sensitive data processing is involved

10. Local Content Requirements: Include when there are specific local content obligations under Malaysian law

Suggested Schedules

1. Schedule 1 - Project Scope and Specifications: Detailed technical specifications and scope of work

2. Schedule 2 - Project Timeline: Detailed project schedule, milestones, and delivery dates

3. Schedule 3 - Pricing and Payment Schedule: Detailed breakdown of costs, payment milestones, and payment terms

4. Schedule 4 - Key Personnel: List of key team members and their roles from both parties

5. Schedule 5 - Service Levels and KPIs: Performance metrics and measurement criteria

6. Schedule 6 - Testing and Acceptance Criteria: Detailed acceptance testing procedures and criteria

7. Schedule 7 - Required Insurances: Details of insurance types and coverage requirements

8. Schedule 8 - Forms and Templates: Standard forms for project documentation, reports, and notices

9. Appendix A - Technical Documentation: Relevant technical documents and specifications

10. Appendix B - Company Policies: Applicable corporate policies and procedures

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






























Clauses































Relevant Industries

Information Technology

Construction

Manufacturing

Energy and Utilities

Telecommunications

Professional Services

Infrastructure Development

Oil and Gas

Healthcare

Education and Training

Research and Development

Engineering Services

Relevant Teams

Legal

Project Management Office

Operations

Commercial

Finance

Procurement

Risk and Compliance

Technical Operations

Quality Assurance

Business Development

Relevant Roles

Chief Executive Officer

Project Manager

Contract Manager

Legal Counsel

Commercial Director

Technical Director

Chief Financial Officer

Operations Manager

Procurement Manager

Risk Manager

Business Development Manager

Account Manager

Compliance Officer

Technical Lead

Quality Assurance 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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