The Framework Agreement (Construction) is designed for use in the Hong Kong construction industry where an employer anticipates requiring regular construction services over an extended period. It provides an efficient procurement mechanism by pre-agreeing terms, rates, and standards, eliminating the need to negotiate these for each project. The document incorporates Hong Kong regulatory requirements, including compliance with the Buildings Ordinance and Construction Industry Council guidelines. It typically covers a period of 3-5 years and includes provisions for individual project call-offs, pricing mechanisms, quality standards, safety requirements, and performance management. This type of agreement is particularly valuable for organizations with ongoing construction needs, such as developers with multiple projects or public bodies with regular construction requirements.
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Key Requirements PROMPT example:
Framework Agreement (Construction)
"I need a Construction Framework Agreement governed by Hong Kong law for a 3-year period starting March 2025, to cover multiple residential development projects across the New Territories, with an estimated total value of HKD 500 million."
1. Parties: Identification of the contracting parties
2. Background: Context of the framework agreement and general intentions of the parties
3. Definitions and Interpretation: Key terms used throughout the agreement and interpretation rules
4. Framework Structure: Overview of how the framework operates and process for awarding work
5. Call-off Procedure: Detailed process for initiating individual projects under the framework
6. Contract Formation: How individual contracts are formed under the framework
7. Contractor Obligations: General obligations including quality, safety, and compliance requirements
8. Employer Obligations: Key responsibilities of the employer including information provision and access
9. Quality Standards: Required quality standards and quality management systems
10. Health and Safety: Safety requirements and responsibilities
11. Pricing and Payment: Framework rates, pricing mechanism, and payment terms
12. Performance Management: KPIs, monitoring, and reporting requirements
13. Insurance and Liability: Insurance requirements and liability provisions
14. Intellectual Property: Ownership and usage rights of project materials and innovations
15. Confidentiality: Protection of confidential information
16. Term and Termination: Duration of framework and termination provisions
17. Dispute Resolution: Process for resolving disputes
18. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Building Information Modeling (BIM): Required when BIM will be used in projects
2. Environmental Requirements: For projects with specific environmental compliance needs
3. Innovation and Continuous Improvement: When parties want to formally encourage and manage innovation
4. Supply Chain Management: For agreements requiring management of key suppliers
5. Community Engagement: When projects require interaction with local communities
6. Training and Skills Development: When agreement includes commitment to workforce development
7. Government Subsidies: When projects may qualify for government support schemes
1. Schedule 1 - Definitions: Detailed definitions of terms used in the agreement
2. Schedule 2 - Framework Rates: Agreed rates and pricing structure
3. Schedule 3 - Form of Call-off Contract: Template contract for individual projects
4. Schedule 4 - KPIs and Performance Criteria: Detailed performance measurements and targets
5. Schedule 5 - Insurance Requirements: Specific insurance types and coverage levels
6. Schedule 6 - Required Personnel: Key roles and qualifications required
7. Schedule 7 - Quality Management System: Detailed quality management requirements
8. Schedule 8 - Health and Safety Requirements: Detailed safety procedures and requirements
9. Schedule 9 - Form of Performance Bond: Template for required performance security
10. Schedule 10 - Parent Company Guarantee: Form of parent company guarantee if required
11. Appendix A - Site Access Requirements: Standard procedures for accessing work sites
12. Appendix B - Reporting Ƶ: Standard forms for required reports and notifications
Authors
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Residential Development
Infrastructure Development
Industrial Construction
Healthcare Construction
Education Construction
Transportation Construction
Retail Development
Mixed-use Development
Public Works
Relevant Teams
Legal
Commercial
Operations
Procurement
Construction
Development
Technical
Finance
Risk Management
Project Management
Relevant Roles
Construction Director
Project Director
Commercial Director
Legal Counsel
Contract Manager
Procurement Manager
Project Manager
Commercial Manager
Operations Director
Risk Manager
Technical Director
Development Director
Quantity Surveyor
Chief Executive Officer
Finance Director
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