The Contractor Subcontractor Agreement is essential for construction and development projects in Malaysia where specialized work needs to be delegated to qualified subcontractors. This document is crucial when a main contractor needs to engage specialist contractors for specific aspects of a larger project, ensuring compliance with Malaysian construction laws including CIPAA 2012 and CIDB regulations. The agreement defines the scope of work, payment terms, quality standards, and safety requirements while protecting both parties' interests through clear risk allocation and dispute resolution mechanisms. It's particularly important for projects requiring specialized skills, equipment, or licenses that the main contractor may not possess directly.
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1. Parties: Identification of the main contractor and subcontractor, including registration numbers and addresses
2. Background: Context of the main contract and the need for subcontracting
3. Definitions: Key terms used throughout the agreement
4. Scope of Works: Detailed description of the subcontractor's obligations and deliverables
5. Contract Sum and Payment Terms: Price, payment schedule, and payment procedures in compliance with CIPAA 2012
6. Duration and Timeline: Project schedule, milestones, and completion dates
7. Performance Standards: Quality requirements and acceptance criteria
8. Compliance and Safety: Obligations regarding laws, regulations, and safety requirements
9. Insurance and Indemnity: Required insurance coverage and indemnification provisions
10. Warranties and Representations: Guarantees regarding capacity, quality, and performance
11. Termination: Grounds and procedures for contract termination
12. Dispute Resolution: Procedures for handling disputes including arbitration provisions
13. General Provisions: Standard clauses including notices, amendments, and governing law
1. Performance Bond: Required when project value exceeds certain threshold or when specified by main contract
2. Intellectual Property Rights: Needed when work involves design elements or proprietary information
3. Liquidated Damages: Specific penalties for delay or non-performance
4. Worker Accommodation: Required when contractor provides housing facilities
5. Equipment and Materials: Detailed when substantial equipment or materials are provided by either party
6. Environmental Requirements: For projects with specific environmental impact considerations
7. Security Requirements: For projects requiring specific site security measures
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Bill of Quantities: Itemized list of works and corresponding prices
3. Schedule 3 - Project Timeline: Detailed project schedule with milestones
4. Schedule 4 - Payment Schedule: Detailed payment terms and milestone payments
5. Schedule 5 - Site Rules and Safety Requirements: Specific site regulations and safety protocols
6. Schedule 6 - Insurance Requirements: Detailed insurance specifications and coverage amounts
7. Schedule 7 - Forms and Certificates: Standard forms for notices, variations, and completion certificates
8. Schedule 8 - Key Personnel: List of key personnel from both parties with roles and responsibilities
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