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Construction Agreement Between Client And Contractor for the United Kingdom

Construction Agreement Between Client And Contractor Template for England and Wales

A legally binding agreement governed by the laws of England and Wales that establishes the relationship between a client and a contractor for construction works. The agreement details the scope of works, payment terms, programme, quality standards, and responsibilities of both parties. It incorporates key construction legislation including the Housing Grants, Construction and Regeneration Act 1996 and ensures compliance with relevant building regulations and health and safety requirements.

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What is a Construction Agreement Between Client And Contractor?

The Construction Agreement Between Client And Contractor is a fundamental document in construction projects under English and Welsh law. It's essential for projects where a client engages a contractor to carry out construction works, whether for new builds, renovations, or infrastructure projects. The agreement provides clarity on scope, cost, time, quality, and risk allocation, while ensuring compliance with UK construction legislation, including the Construction Act and CDM Regulations. It serves as the primary reference point for project delivery and dispute resolution.

What sections should be included in a Construction Agreement Between Client And Contractor?

1. 1. Parties: Identification and details of the Client and Contractor

2. 2. Background: Context of the agreement and brief project overview

3. 3. Definitions: Key terms used throughout the agreement

4. 4. Scope of Works: Detailed description of works to be performed

5. 5. Contract Price and Payment Terms: Payment amounts, schedule, and mechanisms

6. 6. Programme and Completion: Project timeline, completion dates, and milestones

7. 7. Contractor Obligations: Key responsibilities and duties of the contractor

8. 8. Client Obligations: Key responsibilities and duties of the client

9. 9. Variations: Process for handling changes to scope or specifications

10. 10. Defects: Defects liability period and remediation process

11. 11. Insurance and Liability: Insurance requirements and liability allocation

12. 12. Termination: Grounds and procedures for contract termination

13. 13. Dispute Resolution: Procedures for resolving disputes including adjudication

14. 14. General Provisions: Boilerplate clauses including notices, governing law

What sections are optional to include in a Construction Agreement Between Client And Contractor?

1. Design Responsibility: Required when contractor has design obligations in design and build contracts

2. Performance Bonds: Security for performance requirements for high-value projects

3. Parent Company Guarantee: Additional financial security when contractor is subsidiary of larger organization

4. Collateral Warranties: Third-party rights and warranties for funders, purchasers or tenants

5. BIM Protocol: Building Information Modeling requirements where BIM is being used

What schedules should be included in a Construction Agreement Between Client And Contractor?

1. Schedule 1 - Contract Documents: List of all documents forming part of the contract

2. Schedule 2 - Specification: Detailed technical requirements and standards

3. Schedule 3 - Drawings: All construction drawings and plans

4. Schedule 4 - Programme: Detailed project timeline and milestones

5. Schedule 5 - Payment Schedule: Detailed breakdown of payments and milestone payments

6. Schedule 6 - Site Information: Details about the construction site and conditions

7. Schedule 7 - Insurance Requirements: Detailed insurance obligations and coverage levels

8. Schedule 8 - Forms of Bonds/Guarantees: Template forms for any required bonds or guarantees

9. Schedule 9 - Collateral Warranty Forms: Template forms for collateral warranties if required

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Project Agreement

Cost

Free to use

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