# What a Design and Build Factory Contract Covers

> Design and build and

URL: https://factorybuilder.my/guide/what-is-design-and-build-factory/
Last-Modified: 2026-11-10
Tags: what is design and build factory, turnkey factory meaning, design and build contract malaysia, design and build scope

menu\_book Explainer // Design and Build Factory

# What a Design and Build Factory Contract Covers

Design and build and 'turnkey' explained: scope under one contract, consultants appointed and what stays with you.

Published 10 November 2026 · 5 min read

![Design team reviewing factory elevations on a large monitor](/images/featured/design-team-reviewing-factory-elevations-on-large-.webp)

## Design and Build in One Sentence

Most SME owners with industrial land ask the same thing first: who is responsible for what in a design and build contract in Malaysia?

A **design and build contract** puts one party, the contractor, in charge of both designing and constructing your factory. Instead of hiring an architect and engineers yourself and then tendering to builders, you sign one contract that runs from brief to handover.

An overview of Malaysian contract types from IPM (2025) says design and build combines both jobs under one agreement. The client can still shape key decisions during the design phase.

It is the route most of our clients with land but no drawings choose. Our 

design and build factory

[/design-and-build-factory/ →](/design-and-build-factory/)

 service explains how we run it. This guide explains what the contract itself usually covers, who the contractor brings in, what stays with you, and when the route fits.

### Scope Under One Contract

A typical design and build scope for a factory includes:

-   **Design development** from your brief: layout, elevations, office frontage and specification
-   **Detailed engineering** for the structure, piping, mechanical, electrical and civil works
-   **Coordination** of the design team and the trades
-   **Construction** of the building and site works to the agreed specification
-   **Handover**, including support with the CCC

What exactly is included varies by project, so it must be written down. A written scope also protects you legally. According to DLA Piper’s 2025 briefing on CIPAA (the Construction Industry Payment and Adjudication Act 2012), the Act applies to construction contracts made in writing, and one of its two dedicated construction courts sits in Shah Alam.

Ask about design responsibility too. IPM notes that under CIDB’s standard form, the contractor may have others prepare the design. It must still meet the agreed performance and safety standards, and the contractor must secure direct warranties from any design consultants it engages. Check that your contract says the same.

The CCC is the Certificate of Completion and Compliance. PropertyGuru’s 2025 guide describes it as the document confirming a building is safe, properly constructed and suitable for occupation. Without it, you can’t legally occupy the building, so ask exactly what “support” means in your quotation.

![Factory under construction matching drawings pinned on the site office wall](/images/content/factory-under-construction-matching-drawings-pinne.webp)

## The Consultants the Contractor Appoints

Under design and build, the contractor brings the design team. For a factory, that usually means:

| Consultant | Role |
| --- | --- |
| Architect | Layout, elevations, planning and building plan drawings |
| Civil and structural engineer | Foundations, frame, floors, drainage |
| M&E engineer | Power, piping, ventilation, fire services |
| Quantity surveyor | Measurement, cost control, progress valuations |

At Factory Builder Malaysia, the factory and warehouse arm of Cheras-based contractor QDB Ventures Sdn Bhd, engineering, project management and quantity surveying are handled within the team. Associate architectural and interior designers cover the building and office areas. The quotation states which consultants are included and who acts as **principal submitting person**.

That last detail matters more than it looks. The principal submitting person (PSP) is the registered architect, engineer or building draughtsman who submits the building plan to the local authority. According to IPM’s CCC FAQ, only the PSP can issue the CCC, and the PSP’s responsibility under section 71 of the Street, Drainage and Building Act 1974 continues after the certificate is issued.

## What Usually Stays With the Owner

Even under design and build, some items normally stay with you:

-   **Production machinery** and specialist process equipment
-   **Business and manufacturing licences**
-   **Loose furniture, IT and fit-out** beyond what is specified
-   **Land matters**, such as title and conditions

Machinery stays with you because your process decides it, not the building. Licences and land conditions belong to you as the owner and the applicant.

> **Read the exclusions as carefully as the inclusions**
> 
> The most common design and build disputes come from assumptions about what was included. A clear exclusions list prevents them.

A 2026 steel building guide for Selangor, Johor and Penang projects from SteelStructurePrefab gives similar advice. It tells buyers to confirm whether a quote includes design drawings, shop drawings and installation drawings, and to ask for the commercial exclusions in writing.

## Design and Build vs “Turnkey”

“Turnkey” is often used to mean design and build, but the formal meaning is wider. IPM describes a turnkey contract as one where the contractor delivers a complete, operational facility, including design, construction, fit-out, testing and commissioning.

| Contract type | Design | Construction | Fit-out, testing and commissioning |
| --- | --- | --- | --- |
| Design and build | Yes | Yes | Only if written into the scope |
| Turnkey (formal meaning) | Yes | Yes | Yes |

The word also suggests you turn a key and start production, which can lead owners to expect machinery, furniture and licences to be included. Rarely are they. Rather than relying on the label, check the scope line by line.

## Is It the Right Route for You?

Design and build suits owners who have land and a clear business need but no drawings, and who want one party responsible. IPM says the method promotes coordination and faster completion compared with the traditional design-bid-build route.

| Your situation | Likely better fit |
| --- | --- |
| Land, a brief, no drawings | Design and build |
| Drawings already done | Build-from-drawings contract |
| Want to manage each consultant yourself | Separate architect and contractor |

For a side-by-side comparison, read 

design and build vs separate architect and contractor

[/guide/design-and-build-vs-architect-and-contractor/ →](/guide/design-and-build-vs-architect-and-contractor/)

. To see each stage, read 

the design and build process

[/guide/design-and-build-process-factory/ →](/guide/design-and-build-process-factory/)

.

Already have a plot in Selangor? Send us your land details and rough brief, and we’ll show you what a clear design and build scope would look like for your factory.

helpQuick answers

## Frequently Asked Questions

### Is design and build the same as turnkey?

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The terms are often used interchangeably, but 'turnkey' can suggest more is included than really is. Check exactly what the scope includes and excludes rather than relying on the label.

### Who appoints the architect?

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Under design and build, the contractor appoints and coordinates the design consultants, including the architect and engineers. The quotation should state which consultants are included.

### Is machinery included?

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Usually not. Production machinery and licences stay with the owner. The building is designed around your machinery, so we need its details early.

### Do I still approve the design?

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Yes. You sign off the design at agreed points before the specification is fixed and construction starts.

menu\_bookKeep reading

## Related Guides

### Design and Build vs Separate Architect and Contractor

Design and build vs separate architect and contractor: responsibility, coordination, timing and when each suits.

[Design and Build vs Separate Architect and Contractor →](/guide/design-and-build-vs-architect-and-contractor/)

### Keeping Control in Design and Build: Approvals, Specifications and Variations

Stay in control in design and build: design sign-off points, written specifications, variations and regular updates.

[Keeping Control in Design and Build: Approvals, Specifications and Variations →](/guide/design-and-build-control-variations/)

### The Design and Build Process for a Factory, Step by Step

From brief to handover: plan and budget, design, engineering, quotation, approvals, construction and owner decisions.

[The Design and Build Process for a Factory, Step by Step →](/guide/design-and-build-process-factory/)

### How Progress Payments Work in a Factory Design and Build Contract

How factory design and build payments are staged: progress claims, retention, liquidated damages and what to check.

[How Progress Payments Work in a Factory Design and Build Contract →](/guide/factory-progress-payments/)

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## Learn more about Design and Build Factory

One contract covering design, engineering and construction for owners who have industrial land but no drawings yet. Every quotation lists inclusions, exclusions and responsibilities.

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