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Construction Project Management Contract

Construction Project Management Contract Template for Malaysia

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Key Requirements PROMPT example:

Construction Project Management Contract

"I need a Construction Project Management Contract for a mixed-use development project in Kuala Lumpur, with special emphasis on green building requirements and BIM implementation, where the project manager will oversee multiple contractors and consultants starting March 2025."

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Document background
The Construction Project Management Contract is essential for construction projects in Malaysia where professional project management services are required to ensure successful project delivery. This document is typically used when a client or developer needs to engage a dedicated project management consultant to oversee and coordinate all aspects of a construction project. The contract incorporates requirements from Malaysian legislation, including the Construction Industry Development Board Act 1994, Contracts Act 1950, and the Construction Industry Payment and Adjudication Act 2012. It provides comprehensive coverage of project management services, from pre-construction planning through to project completion and handover, while ensuring compliance with local regulatory requirements and industry standards. The document is structured to protect both parties' interests while facilitating efficient project delivery within the Malaysian construction industry framework.
Suggested Sections

1. Parties: Identification and details of the Client and the Project Management Consultant

2. Background: Context of the agreement, project overview, and basis for engagement

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

4. Appointment and Scope of Services: Formal appointment and detailed scope of project management services

5. Project Manager's Obligations: Core duties, responsibilities, and standard of care expected

6. Client's Obligations: Client's responsibilities, including provision of information and approvals

7. Project Timeline: Project phases, milestones, and completion dates

8. Fees and Payment Terms: Fee structure, payment schedule, and invoicing procedures

9. Personnel and Resources: Key personnel commitments, staffing requirements, and resource allocation

10. Reporting and Communications: Reporting requirements, meetings, and communication protocols

11. Variations and Changes: Procedures for handling changes to scope, timeline, or fees

12. Risk Management: Risk allocation, insurance requirements, and mitigation strategies

13. Intellectual Property: Ownership and usage rights of project documents and materials

14. Confidentiality: Protection and handling of confidential information

15. Liability and Indemnification: Limitation of liability and indemnification provisions

16. Termination: Grounds and procedures for contract termination

17. Dispute Resolution: Procedures for resolving disputes, including arbitration

18. General Provisions: Standard boilerplate clauses including notices, governing law, etc.

Optional Sections

1. Performance Bonds: Required when specific performance guarantees are needed for the project

2. Environmental Management: For projects with significant environmental impact considerations

3. Quality Assurance: Detailed quality management requirements for complex projects

4. Value Engineering: For projects requiring cost optimization and alternative solutions

5. BIM Requirements: For projects utilizing Building Information Modeling

6. Local Content Requirements: When project must comply with local content or bumiputera participation requirements

7. Multiple Phase Provisions: For projects delivered in distinct phases requiring separate handling

8. Force Majeure: Detailed provisions for handling unforeseen circumstances, particularly relevant post-COVID

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed breakdown of project management services and deliverables

2. Schedule 2 - Fee Schedule: Detailed fee breakdown, rates, and payment milestones

3. Schedule 3 - Project Program: Detailed project timeline, milestones, and delivery dates

4. Schedule 4 - Key Personnel: CVs and commitment levels of key project team members

5. Schedule 5 - Client's Requirements: Detailed technical and operational requirements

6. Schedule 6 - Reporting Templates: Standard formats for project reports and documentation

7. Schedule 7 - Communication Protocols: Detailed procedures for project communications and meetings

8. Schedule 8 - Quality Management Plan: Quality standards, procedures, and control mechanisms

9. Appendix A - Project Site Details: Site information, access requirements, and constraints

10. Appendix B - Statutory Approvals: List of required permits and approvals

11. Appendix C - Insurance Requirements: Details of required insurance coverage and limits

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Laws
Approved Documents
Authorities
CIDB
Client
Client Representative
Completion Date
Confidential Information
Construction Works
Contract Documents
Contract Sum
Contractor
Defects Liability Period
Deliverables
Design Documents
Effective Date
Extension of Time
Fees
Force Majeure
Good Industry Practice
Intellectual Property Rights
Key Personnel
Material Breach
Milestone
Notice
Payment Certificate
Performance Bond
Project
Project Manager
Project Program
Project Site
Quality Management Plan
Retention Sum
Schedule of Rates
Services
Site Instructions
Specifications
Subcontractor
Substantial Completion
Variation
Works
Relevant Industries

Real Estate Development

Commercial Construction

Industrial Construction

Residential Development

Infrastructure Development

Healthcare Construction

Education Facilities

Retail Development

Hospitality Construction

Mixed-use Development

Relevant Teams

Legal

Operations

Construction

Commercial

Project Management Office

Contract Administration

Risk Management

Quality Assurance

Technical Services

Development

Procurement

Relevant Roles

Project Director

Construction Manager

Project Manager

Contract Administrator

Development Manager

Construction Director

Technical Director

Commercial Manager

Risk Manager

Quality Assurance Manager

Site Manager

Project Control Manager

Cost Manager

Planning Manager

Client Representative

Legal Counsel

Industries
Construction Industry Development Board Act 1994 (Act 520): Primary legislation governing the construction industry in Malaysia, establishing CIDB's authority to regulate and develop the construction industry
Contracts Act 1950: Fundamental law governing contractual relationships in Malaysia, including formation, validity, and enforcement of contracts
Architects Act 1967: Regulates architectural services and professional conduct of architects in construction projects
Registration of Engineers Act 1967: Governs the registration and practice of professional engineers involved in construction projects
Street, Drainage and Building Act 1974: Controls building works and establishes requirements for construction permits and approvals
Occupational Safety and Health Act 1994: Ensures workplace safety standards and responsibilities in construction projects
Construction Industry Payment and Adjudication Act 2012 (CIPAA): Facilitates regular and timely payment, provides remedies for recovery of payment in the construction industry
Environmental Quality Act 1974: Regulates environmental protection requirements for construction projects
Local Government Act 1976: Establishes local authority requirements and building by-laws affecting construction projects
Arbitration Act 2005: Provides framework for arbitration as a dispute resolution mechanism in construction contracts
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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