Standard Builders Contract

Standard Builders Contract Template for Malaysia

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Key Requirements PROMPT example:

"I need a Standard Builders Contract for a 20-story commercial building project in Kuala Lumpur, with a contract value of RM50 million and completion date of March 2025, including provisions for green building certification and phased completion."

Document background

The Standard Builders Contract is designed for use in construction projects within Malaysia where a formal, comprehensive agreement is required between the project owner (employer) and the main contractor. This document is particularly suited for medium to large-scale construction projects and complies with Malaysian construction law, including CIDB requirements and the Construction Industry Payment and Adjudication Act (CIPAA). The contract incorporates essential elements such as payment security, quality standards, dispute resolution mechanisms, and risk allocation specific to the Malaysian construction industry. It is structured to provide clear guidance on project execution while maintaining flexibility for project-specific requirements and can be used for both public and private sector construction projects.

Suggested Sections

1. Parties: Identification of the Employer and the Contractor, including registration details and addresses

2. Background: Context of the construction project and basis for the contract

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

4. Contractor's Obligations: Core obligations including works execution, compliance with laws, and quality standards

5. Employer's Obligations: Key responsibilities including site access, permits, and payment obligations

6. Contract Sum and Payment: Contract price, payment terms, and mechanisms following CIPAA requirements

7. Time for Completion: Project timeline, completion dates, and extension of time provisions

8. Variations: Procedures for handling changes to the scope of works

9. Quality and Defects: Quality standards, inspection procedures, and defects liability period

10. Insurance and Indemnities: Required insurance coverage and indemnification obligations

11. Suspension and Termination: Grounds and procedures for suspension and termination of works

12. Dispute Resolution: Procedures for dispute resolution including mediation and arbitration

13. General Provisions: Miscellaneous clauses including notices, governing law, and assignment

Optional Sections

1. Performance Bond: Required when project value exceeds certain threshold or when specifically requested by Employer

2. Advance Payment: Include when advance payment is agreed upon, specifying recovery mechanism

3. Nominated Sub-contractors: Include when project involves employer-nominated subcontractors

4. Professional Consultants: Include when project requires coordination with specific professional consultants

5. Environmental Requirements: Include for projects with specific environmental impact considerations

6. Force Majeure: Detailed force majeure provisions for high-risk or long-term projects

7. Intellectual Property Rights: Include for projects involving design elements or proprietary methods

Suggested Schedules

1. Schedule 1 - Contract Documents: List of all documents forming part of the contract

2. Schedule 2 - Works Description: Detailed description of the works to be performed

3. Schedule 3 - Contract Sum Analysis: Breakdown of the contract sum and pricing details

4. Schedule 4 - Construction Program: Detailed timeline and milestones for the works

5. Schedule 5 - Technical Specifications: Detailed technical requirements and standards

6. Schedule 6 - Site Information: Details about the construction site and conditions

7. Schedule 7 - Required Insurances: Specific insurance requirements and coverage levels

8. Schedule 8 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees

9. Appendix A - Drawings: Complete set of construction drawings

10. Appendix B - Bills of Quantities: Detailed quantification of works items

11. Appendix C - Quality Assurance Requirements: Specific quality control procedures and standards

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok��˰� | 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

Clauses

Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Development

Public Works

Healthcare Facilities

Educational Institutions

Hospitality

Retail Development

Relevant Teams

Legal

Operations

Commercial

Procurement

Construction

Project Management

Contract Administration

Risk & Compliance

Technical

Finance

Business Development

Relevant Roles

Construction Manager

Project Director

Contract Administrator

Legal Counsel

Commercial Manager

Quantity Surveyor

Project Manager

Site Engineer

Procurement Manager

Risk Manager

Compliance Officer

Operations Director

Technical Director

Chief Executive Officer

Finance Director

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