[Member] Construction Agreement with Main Contractor (Short Form)

Samples of Agreements to download
@ It is important to note that the sample agreement may not be identical to your factual situation that you intended, therefore, these sample agreement only serve as a guideline in order for you to achieve greater understanding towards the law and the general clauses stated therein. 
***   AGREEMENT   ***
            THIS AGREEMENT is made on the              day  of                       , 20     , between [Company Name], a company incorporated in Malaysia and having its business office at [Address] (hereinafter referred to as “the Project Manager”) of the one part and [Company Name] of [Address] (hereinafter referred to as “the Main Contractor”) of the other part.
WHEREAS the Main Contractor is to construct [insert project name]approved by all relevant authorities and the MPSP Building Plan reference number .4           on lot [Address] (hereinafter referred to as “the Project”)  for [Company Name] (hereinafter referred to as “the Developer”).
1.         Scope of Works
The scope of works under this contract shall include:-
1.1              The Main Contractor will provide labour and materials to carry out the following works :-
(a)                Building Works – Architectural and Civil Engineering works (Structural).
(b)               Plumbing and Sanitary Works (Internal and External).
(c)                Mechanical and Electrical Works (Internal and External).
(d)               Roads and Drainage.
(e)                Lift.
(f)                 Miscellaneous works such as fencing/work-shed/worker’s quarters/shifting of water pipes, electrical and telephone posts and cables/squatter’s structural together with it’s infrastructure.
1.2              The Main Contractor is to supply and install of all labour, materials, machinery and tools for the execution and completion for the project.
1.3              All works shall be carried out in accordance to specification and drawing as per condition of the Main Contract signed between the Developer and Main Contractor. The workmanship are to be strictly complied with the relevant preambles, specification of documents, failing which any rectification works required shall be at Main Contractor’s cost.
1.4              The works and designs are to follow those specify on Annexure 1 and 2. If they were not listed or specified then they should refer to completed works at Block A and B.
2.         Building Materials
(a)                All materials to be use for the abovesaid works are provided by the Main-Contractor. The materials must be according to approved plan, project’s consultants drawings and specification and the Project Manager’s approval.
(b)               Materials and it’s specification if not stated, should then refer to Block A and B of [insert project name]’s project.
(c)                Specify for the materials are listed on Annexure 1.
(d)               Any changes in materials are subject to the approval by the Consultants of the Project and the Project Manager.
3.         Value of Contractual Works
All quantities and rates for the relevant works quoted on Annexure 1 are final. Works whereby the quantities, rates, materials and design are not stated in Annexure 1, should then follow Block A or Block B of [insert project name] (Phase 1) project.
The Main Contractor also confirm that the final contract sum is to complete the whole project with works and materials specifications according to relevant plans and completed works at Block A and Block B of [insert project name] project.
4.         Date of Site Possession and Completion Period
The contract period shall be twenty four months from the  [Insert Date].            The date of completion of works is therefore on the [Insert Date] .
The progress of all works should be according to the Work Schedule as stated on Annexure 3.
Time is of essence in this contract.
Liquidated  and  Ascertained  Damages   ( L. A. D )  is    Ringgit    Malaysia      {Insert Amount] per day .  
            Period of Delay allow is   two months .
5.         Progress Payment Valuation and Retention
The Project Manager reserves the rights to value the works of the Main Contractor and will only pay according to the amount which the Project Manager  has valued.
The Project Manager will retain only Five percent (5%) on all claims by the Main Contractor as retention sum.
The Main Contractor shall made his payment valuation to the Project Manager at  a monthly interval.
Release of Retention Sum :-
(1)        Stage 1 (2.5%) –   9 months after full completion of works.
(2)        Stage 2 (2.5%) – 18 months after full completion of works.
6.         Site Representative
The Main Contractor is to maintain a competent site representative on site at all times to take instruction, liaison and co-ordination from the site representatives must comply and coordinate Main Contractor’s works with respect to Project Manager’s schedule of works and programme for the proper completion of the contract works. The Main Contractor must ensure that he provides full personal attention and inspection to the abovesaid works on a daily basis.
            The site representatives are [Name] and [Name].
7.         Variations or Alterations
The Project Manager reserve the rights to make variations or alterations on the works concern as and when advice or instructed by the relevant Authorities, the Consultants of the said project and the said Developer.
Should such variations or alterations arises and incurs changes in the costs as confirm by the Consultants of the project, the Main Contractor hereby agree to charge the Project Manager according to the rate on both the labour and material which are determine by the Consultants of the project.
8.         Land and Building Surveyor
The Main Contractor to provide a licensed land and building surveyor to carry out survey works for the project. The Main Contractor agrees to extend a copy of plan for each survey work to the Project Manager.
9.         Correspondence
All dealings and correspondence with clients, consultants and authorities with regard to this project must go through the Project Manager. Any dealing which does not go through the Project Manager will not be recognised and no extra claims will be entertained on works carried out on the Main Contractor own accord.
10.       Sub-Letting of The Work
The Sub-Contractor and it’s principle’s names and identity card number are as follows :-
(a)                Plumbing & Sanitary
(b)               Mechanical & Electrical
(c)                Lift
(d)               Roads & Drainage
The Project Manager reserves the right to request the Main Contractor to terminate and change a new Sub-Contractor should the Project Manager is not satisfied with the work of the Sub-Contractor.
The Main Contractor shall not without the written consent of the Project Manager assign this contract or any part thereof of the obligation to carry out and the right to receive payment for any part of the work to be carried out under contract or the right to receive the whole or any part of the contract sum.
11.       Defect Liability Period
The Defect Liability Period shall be for a period of Eighteen (18) months from the date of practical completion of the Project. The date of practical completion will be determine by the Project Manager.
12.        Insurance Policies and SOCSO
12.1          The Main Contractor is to register his workers and contribute towards the Social Security Scheme (SOCSO) and comply with all provisions under this ACT.
12.2          The Contractors’ All Risk, Workmen’s Compensation and Public Liability Insurance Policies should be provided by the Main Contractor and assign it to the Developer’s name as joint beneficiary.
13.       Internal Security Act
To comply with the Internal Security Act, the Main Contractor is to maintain a register of workers, giving all the particulars required by Regulation of the ACT.
14.       Immigration Act
The Main Contractor confirm that all his workers have legal and valid work permits issued by the Immigration Department of Malaysia. Should the Project Manager or the Developer be charge under the Court of Law due to an illegal worker belonging to the Main Contractor, the Main Contractor agrees to indemnity the Project Manager and the Developer against any loss or damages which the Project Manager and Developer may suffered.
15.       Employment Act
To comply with the Employment Act, the Main Contractor is required to
contribute Employment Provident Fund for his workers. All foreign workers must have legal work permits.
16.       Termination of Contract
16.1          The Project Manager reserve the rights to terminate this contract within five days after written notice of defaults if any of the following defaults are made by the Main Contractor and if any of such defaults continues for five days after such notice :-
(a)                Without reasonable cause suspended the carrying out of the work before completion.
(b)               Fails to proceed regularly and diligently with the works.
(c)                Refuse or persistently neglects notice in writing from the Project Manager to remove defective work or improper materials.
(d)               Refuse or persistently neglects notice in writing from the Project Manager to expedite his work.
(e)                Fail to cooperation with the Project Manager.
(f)                 Fail to perform works of a high standard.
(g)                The completion period has expired. The Project Manager rejects the request for extension of time by the Main Contractor. The Project Manager reserves the right to decide on the extension of time.
16.2          The Project Manager shall have the right to recover/deduct or off-set against any balance of amount due. The amount of damaged suffered and/or loss and expenses incurred by Project Manager to complete the uncompleted works or for any rectification of defective works or improper workmanship IN FULL from the Main Contractor by reason of this termination of the contract work.
16.3          The Main Contractor agrees not to seek or to take to resort to legal action in the event the Project Manager terminates this contract on the reasons as stated on Clause 16.1. The Main Contractor also agrees to appoint the professional Consultants of the project as the arbitrator for mediation purposes. The Main Contractor must make put all effort to settle amicably or through arbitrator with the Project Manager in within two weeks from the date of termination by the Project Manager.
16.4          The Main Contractor agrees not to lodge caveat on the properties of the project.
17.       Usage of Site Water and Electricity
The Main Contractor will pay for the site water and electricity bills during the construction as well as maintenance period.
18.       Clearing Up Upon Completion
Upon completion of works, all rubbish and debris and the like arising out of your works shall be cleared and left the site cleaned and tidy. Any delay in clearing the rubbish and debris belonging to your work, the Project Manager reserves the right to deduct any money due to the Main Contractor for the expenses incurred by the Project Manager in clearing the rubbish. Excess earth or sand must be remove by the Main Contractor.
19.       Completion of Work
The completed works of the Main Contractor must be according to a standard of works whereby it would not cause any obstruction to the Developer applying for the Certificates of Fitness for Occupation for the said Project. The Main Contractor must assist the Developer at all times when applying for Certificates of Fitness for Occupation.
20.       Application for Certificate of Fitness for Occupation
The Main Contractor is responsible to obtain letters of support for certificate of fitness for occupation from the following authorities :-
(1)               Pihak Berkuasa Air
(2)               Tenaga Nasional Berhad
(3)               Telekom Malaysia
(4)               Jabatan Bomba Dan Penyelamat
(5)               Jabatan Pengairan Dan Saliran
(6)               Jabatan Perkhidmatan Pembetungan / Indah Water Konsortium
(7)               MPSP – Engineering Department
(8)               Jabatan Kerja Raya
The applications for the abovesaid letters should commence immediate upon notification by the Project Manager. The letters should be obtain from each relevant authorities in within one month from the date of each notice. The Project Manager reserves the right with hold a sum of monies from the Main Contractor’s progressive claim for purpose of obtaining these letters.
21.       Attendance To The Complaints Made By The Purchase
The Main Contractor must also undertake to assist the Project Manager (at the request of the Project Manager) to attend to any complaints by the Purchasers of the Project on any defects of works which are of concern or related to the Main Contractor works. The Main Contractor agrees to rectify the defects in within seven days from the date of our notice. Should the Main Contractor fail to rectify the defects in within the stipulated period, the Project Manager reserves the right to engage other contractor to attend to the rectification works. The cost for the rectification works shall be borne by the Main Contractor and shall be deducted from the retention sum.
22.          Once the Main Contractor has agreed to all the above terms and conditions, the Main Contractor will have to sign and initial on this Agreement.
Signed by :-
For and On Behalf of The Main Contractor
[Name]   the Project Manager
……………………………                                        ……………………………………..
Name :                                                                Name :
Nric No:                                                              Nric No:
Witness By :-                                                     Witness By :-
………………………….                                           …………………………….
Name :                                                                Name :
Nric No:                                                              Nric No:

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