Construction Referral Fee Agreement Template for Malaysia

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Key Requirements PROMPT example:

Construction Referral Fee Agreement

"I need a Construction Referral Fee Agreement under Malaysian law for my engineering consultancy to pay 5% referral fees to property developers who introduce new construction projects, with the agreement to start from March 2025."

Document background
The Construction Referral Fee Agreement is essential for Malaysian construction industry participants who wish to formalize arrangements for business referrals and associated compensation. This document is particularly relevant in situations where construction companies, contractors, or consultants refer potential clients or projects to other industry participants in exchange for agreed-upon fees. The agreement ensures compliance with Malaysian legislation, including construction industry regulations, contract law, and anti-corruption provisions. It typically includes detailed provisions for referral processes, fee calculations, payment terms, and obligations of both parties. This type of agreement has become increasingly important in the Malaysian construction sector as businesses seek to expand their networks while maintaining legal compliance and professional standards.
Suggested Sections

1. Parties: Identification of the referring party and the recipient of referrals, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, nature of the construction business, and purpose of the referral arrangement

3. Definitions: Key terms used throughout the agreement, including 'Referral', 'Successful Introduction', 'Construction Project', 'Referral Fee', etc.

4. Scope of Services: Details of the referral services, including how referrals will be made and what constitutes a valid referral

5. Referral Process: Step-by-step process for making and accepting referrals, including notification requirements

6. Fee Structure: Calculation method for referral fees, payment terms, and conditions for fee eligibility

7. Payment Terms: Timing of payments, invoicing requirements, and payment methods

8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

9. Confidentiality: Protection of confidential information shared during the referral process

10. Non-Solicitation: Restrictions on directly approaching referred clients outside the agreement

11. Representations and Warranties: Parties' assurances regarding their authority, compliance with laws, and professional status

12. Governing Law: Specification of Malaysian law as governing law and jurisdiction

13. General Provisions: Standard clauses including notices, amendments, assignment, and severability

Optional Sections

1. Exclusivity: Used when the referral arrangement is exclusive, preventing parties from entering similar arrangements with others

2. Performance Targets: Include when specific referral targets or minimum performance levels are required

3. Marketing and Promotion: Required when parties agree to specific marketing activities or brand usage

4. Professional Indemnity Insurance: Include when parties must maintain specific insurance coverage

5. Dispute Resolution: Detailed dispute resolution procedures, including mediation or arbitration, if not covered in general provisions

6. Anti-Corruption Compliance: Detailed compliance requirements when dealing with public sector projects or high-value referrals

7. Data Protection: Include when personal data processing is involved in the referral process

Suggested Schedules

1. Schedule 1: Fee Structure and Calculation Method: Detailed breakdown of referral fees, including percentages, tiers, and calculation examples

2. Schedule 2: Referral Process Flowchart: Visual representation of the referral process and timeline

3. Schedule 3: Approved Project Types: List of construction project types covered by the agreement

4. Schedule 4: Reporting Templates: Standard forms for referral submissions and tracking

5. Schedule 5: Contact Details: Key contact persons and their details for both parties

6. Appendix A: Code of Conduct: Guidelines for ethical referral practices and professional behavior

7. Appendix B: Compliance Checklist: Regulatory and internal compliance requirements for referral activities

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

Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Construction

Civil Engineering

Architecture

Building Materials

Construction Consulting

Relevant Teams

Legal

Business Development

Operations

Commercial

Sales

Procurement

Contract Administration

Executive Leadership

Project Management

Risk Management

Relevant Roles

Construction Manager

Business Development Director

Managing Director

Construction Project Manager

Legal Counsel

Contract Manager

Chief Executive Officer

Operations Director

Commercial Director

Business Development Manager

Sales Manager

Partnership Manager

Construction Consultant

Project Director

Procurement Manager

Industries
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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