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Residential Construction Contract Template for Malaysia

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Key Requirements PROMPT example:

Residential Construction Contract

"I need a Residential Construction Contract for building a new three-story family home in Penang, Malaysia, with a contract value of RM2.5 million and completion deadline of March 2025, including specific provisions for sustainable building materials and solar panel installation."

Document background
The Residential Construction Contract is a fundamental legal document used in Malaysia for managing residential building projects. It serves as the primary agreement between property owners and contractors, establishing clear parameters for construction work, payment schedules, and quality standards. This document is essential when undertaking any residential construction project in Malaysia, whether it's a new build, major renovation, or home extension. It incorporates requirements from Malaysian construction laws and regulations, including the Street, Drainage and Building Act 1974, Housing Development Act, and Uniform Building By-Laws. The contract provides protection for both parties by clearly defining responsibilities, managing risks, and establishing dispute resolution procedures, while ensuring compliance with local authority requirements and industry standards.
Suggested Sections

1. Parties: Identification of the property owner/employer and the contractor, including full legal names, registration numbers, and addresses

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

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

4. Scope of Works: Detailed description of the construction work to be performed, including specifications and standards

5. Contract Sum: Total contract price, payment schedule, and payment terms

6. Duration and Completion: Project timeline, completion date, and provisions for extensions of time

7. Contractor's Obligations: Detailed responsibilities of the contractor including quality standards, compliance with laws, and safety requirements

8. Owner's Obligations: Responsibilities of the property owner including site access, approvals, and payment obligations

9. Variations: Process for requesting, approving, and implementing changes to the scope of work

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

11. Defects Liability: Duration and scope of defects liability period and rectification procedures

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

13. Termination: Grounds and procedures for contract termination by either party

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

15. General Provisions: Standard contract clauses including notices, governing law, and assignment

Optional Sections

1. Nominated Subcontractors: Include when specific parts of the work will be performed by owner-nominated subcontractors

2. Materials Supply: Include when the owner will supply certain materials for the construction

3. Environmental Requirements: Include for projects with specific environmental compliance requirements

4. Heritage Considerations: Include when construction involves or is near heritage buildings

5. Temporary Works: Include when significant temporary structures or facilities are required

6. Multiple Phase Completion: Include when the project will be completed and handed over in phases

7. Antiquities: Include when there's potential for discovering artifacts during construction

8. Force Majeure: Include detailed force majeure provisions for areas prone to natural disasters

Suggested Schedules

1. Schedule 1 - Drawings and Specifications: Detailed architectural and engineering drawings, technical specifications

2. Schedule 2 - Bill of Quantities: Itemized list of materials, quantities, and rates

3. Schedule 3 - Payment Schedule: Detailed breakdown of payment milestones and amounts

4. Schedule 4 - Construction Program: Detailed project timeline showing key milestones and activities

5. Schedule 5 - Site Plan: Plans showing site boundaries, access points, and temporary facilities

6. Schedule 6 - List of Approved Materials: Specifications of approved materials and suppliers

7. Schedule 7 - Forms and Notices: Standard forms for variations, completion certificates, and other notices

8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

9. Appendix A - Statutory Compliance Checklist: List of required permits, approvals, and compliance requirements

10. Appendix B - Quality Assurance Plan: Detailed quality control procedures and standards

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

Construction

Real Estate

Architecture

Engineering

Property Development

Building Materials

Construction Management

Insurance

Banking and Finance

Relevant Teams

Legal

Construction

Project Management

Architecture

Engineering

Procurement

Risk Management

Compliance

Quality Assurance

Contract Administration

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Quantity Surveyor

Architect

Civil Engineer

Structural Engineer

Legal Counsel

Risk Manager

Property Developer

Construction Site Supervisor

Building Inspector

Procurement Manager

Cost Controller

Compliance Officer

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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