Date: [Insert Date]
Re: BUILDING CONTRACT FOR [Insert Project Name]
We refer to our memorandum of understanding to undertake the construction of the abovementioned. We hereby confirm that [Name] has been accepted subject to the terms and conditions contained in this Letter of Award the letter of Acceptance and the relevant correspondences constituting agreement on terms not specifically covered herein and the following:-
1. The agreed price for this contract (hereinafter referred to as “the Contract Price”) subject always to the confirmation of the price as stated in the final QS report, and or as mutually agreed by both parties.
2. In this contract the following shall have the meanings hereby assigned to them except where the context otherwise requires:-
a) The Contract
Means the contract entitled Construction and completion of [Name] comprising 100 units of Bungalows lots, Phase I, on land lot ,
b) The Employer
Means [Name] (Company No: ) whose registered office is at
c) The Contractor
Means [Name] whose registered office is at
d) The Contract
Means
(i) All terms and conditions of this Letter of Award;
(ii) All terms and conditions ascertainable from all past agreed memorandum of understanding, present and future correspndence constituting the additional terms and conditions not specifically covered herein;
(iii) All applicable General Terms and conditions of the Akitek Malaysia’a “Agreement and Schedule, Schedule of conditions of Building Contract”. Under the discretion of the project Architect & Consultants and approved by Developer.
e) The scope of work under the agreement includes:-
Erection and completion of:-
(i) infrastructure work
(ii) earth work
(iii) piling
(iv) building
(v) etc, as depicted in Detailed Plan
3. Terms and conditions of the contract
a) You shall undertake the construction at the cost as mutually agreed and completion of the contract on a Main Contract basis (hereinafter referred to as “the said Works”) within 24 months from date of site possession.
b) You shall be allowed to take possession of site one week from the date of Earth work plan is approved. Meanwhile this serves as a firm order for you to mobilise your resources and preparation work for commencement of work.
c) Any delay in the completion of the said Work shall be subjected to Liquidated and Ascertained Damages of RINGGIT MALAYSIA [Insert amount] per day.
d) The defects liability period for this Constract shall be for a period of twelve (12) months from the date of issuance of Certificate of Practical Completion.
e) You shall procure and maintain at your own cost and expense throughout the duration of this Contract the following insurance policies:-
i) Insurance Policy for the Public Liability (i.e. insurance against injury to persons and damage to property).
ii) Insurance Policy for Workmen’s Compensation (i.e. for workmen not registered under the SOCSO scheme. Where the workmen are registered under the said scheme, you shall supply us with their respective registration numbers).
iii) Contractor’s All Risk Policy for the full value of the Contract Price.
iv) The period of coverage for the abovesaid insurance policies shall be from the date of taking possession of site to the date of issuance of Certificate of Practical Completion. The insurance policies and coverage amount shall be as per Statutory requirement and existing laws in force. The abovementioned document shall be deposited to the Senior Officer Architect before commencement of work (with receipts of premium paid).
f) Term of Payment
PAM CONTRACT clause
i) percentage of value retained = 10%
ii) limits of retention fund = 5% at total contract value
iii) period of interim Certificate = 1 months
iv) period of Honouring of Certificate = 1 month from presentation
v) this is a cost-plus contract the contractor upon satisfactory completion, acceptance accounting will be undertaken to and confirm all expenditures and adjustments undertaken. The percentage shall be 20% of actual costs and paid as above certificate submitted
vi) At final job completion and accounting review if the overall project has been completed below mutually agreed contracted price the contractor and developer shall devide the profits equally on a 50%-50% basis.
g) You will advance a sum of [Insert amount] as advancement payment to be arranged through bank to the Developer. This amount will be returned to contractor before the end of December 1996.
h) You will undertake the construction of the said Works under this Contract and shall be assigned with the appointed consultants. We may at our own discretion grant to you any request for extension of time or cost variations if such extension of time or cost variations is deemed necessary and mutually agreed.
j) Time wherever mentioned shall be of essence of this Contract.
k) You are required to furnish the following documents to us for the due execution of the formal contract:-
i) All insurance certification see 3 e
ii) Signed memorandum of understanding
iii) Award Agreement
iv) Contractor Certification
l) Should any dispute or difference arise between the parties hereto touching or concerning this Contract then the other party shall give notice in writing of such dispute or differences and such dispute or differences shall be referred to arbitration in accordance with the Arbitration Clause of the Persatuan Akitek Malaysia’s “Agreement and Schedule of Conditions of Building Contract” for a formal decision of a person appointed by mutual consent or failing which appointed by the prevailing President of the Persatuan Akitek Malaysia and the Award shall be binding on both parties.
m) The Contract shall ensure for the benefit of an be binding upon the parties hereto and their respective seccessors in title and permitted assigns.
n) Any notice to be given hereunder shall be given in writing addressed to the other at its registered address or such other address as may be given by the other in writing. Any such notice may be delivered by hand or sent out by prepaid registered post and shall be deemed to have been served in the ordinary course of post.
By signing and witnessing in the space provided hereinbelow, binding and legally enforceable contract shall exit between the
parties.
FOR : FOR :
NAME : NAME :
POSITION : POSITION :
WITNESS BY
NAME : NAME :
POSITION : POSITION :
SIGNATURE : SIGNATURE :
