Construction Contract

Construction Contract

An Introduction

Nature o Nature of Construction Contract

1. Definition

2. Applicable Law

3. Contract between employer and contractor

4. Contract of supply and fix

5. Regulates employer / contractor relationship

6. Procurement methods

7. Standard forms

8. Contract documents

9. Use of subcontracts

10. Important terms

Definition

- There is no one clear and definite definition of what construction contract is.

- It is a contract between an “employer” and a “contractor”.

- Its main purpose is for the employer to get the contractor’s services for the construction of a project in consideration for the employer’s payment of the contract’s sum.

Applicable Laws

- Unlike UK, Malaysia has no specific statute on construction contract.

The law applicable is:

A combination of common law of several statutes that form the legal basis of the terms of the contract.

> The main statute is the Contract Act 1950.
- National Land Code

> Other statutes include:
- T & CP Act
- Sales of Goods Act
- Company Act
- Insurance Act
- Employment Act
- EQA
- Bankruptcy Act
- Arbitration Act
- Antiquity Act
- OSHA
- Factory & Machinery Act
- Others

Download the full lecture slide presentation here: construction contract