Standard Terms of Construction Contract for Renovation and Small Projects

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BACKGROUND

This contract was written to fill a gap within the Malaysian construction industry. Although there are several construction contracts published for the Malaysian construction industry – so far, none of the main contracts are written entirely in plain language and none cater specically for renovation or small projects. While contracts can be entered into orally, written contracts avoid uncertainty. Well-written plain language standard contracts can also help achieve greater eficiency and help avoid unwarranted disputes.

This set of standard terms of contract may be used together with other documents such as drawings, specications, and bills of quantities to form a complete construction contract. It may be used for any construction project – although it was originally targeted at renovation and smaller projects. No minimum or maximum price has been specied for the size of projects this contract may be suitable for because it may well serve a wide range of project types and sizes.

Usage of this contract

This contract is uncommon in several ways.

Most construction contracts published in Malaysia are written in traditional legal language. This contract is written in modern plain language. It is the first construction contract in the world to be accredited with the Clear English Standard by the Plain English Commission, United Kingdom. The contract has about 5,000 words. It fullls most of the criteria of what would be expected of a plain language contract. Among these: the contract has a low average words per sentence of about 20, adopts gender-neutral style, uses mainly active sentences, has good use of numbering and listing, has no multiple cross-referencing, and uses plain language but retains terms of art where necessary. This contract hopes to set the trend for other construction contracts to emulate its structure and style.

This contract was drafted afresh from a blank ‘screen’. It has the benefit of not being influenced by dated habits. Most notably the structure follows a clear and logical ‘project management’ approach where the clauses are clustered under general obligations, contract administration, time obligations, financial obligations, quality obligations, subcontracting, termination, and dispute resolution.

This contract has two parts – Parts A and B. Only part A needs to be filled. There are some default provisions if some of these are to be filled. The contract is written with built-in exibility.



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