The Real Estate Construction Contract is a vital legal instrument used in Nigeria when engaging contractors for construction projects on real estate properties. This document is essential for any property development project, whether commercial, residential, or industrial, where construction works are to be undertaken. It provides a comprehensive framework that ensures compliance with Nigerian construction laws, including the Land Use Act, National Building Code, and Environmental Protection regulations. The contract typically includes detailed specifications of the construction work, payment structures, timelines, quality standards, and dispute resolution mechanisms. It's particularly important in the Nigerian context where proper documentation and clear contractual terms are crucial for project success and regulatory compliance. The document serves to protect both the property owner's interests and the contractor's rights while ensuring that the construction project meets all legal and technical requirements.
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1. Parties: Identification of the contracting parties including the employer/owner and the contractor, with their full legal names and addresses
2. Background: Context of the construction project, including brief description of the property and purpose of the development
3. Definitions: Detailed definitions of key terms used throughout the contract
4. Scope of Work: Detailed description of the construction work to be performed, including general obligations of the contractor
5. Contract Price and Payment Terms: Total contract sum, payment schedule, and payment conditions
6. Project Timeline: Construction schedule, completion date, and any milestone dates
7. Contractor's Obligations: Specific duties and responsibilities of the contractor including quality standards, supervision, and safety measures
8. Employer's Obligations: Responsibilities of the employer including site access, permits, and approvals
9. Materials and Workmanship: Standards for materials, quality requirements, and inspection procedures
10. Variations and Changes: Procedures for handling changes to the scope of work and their cost implications
11. Insurance and Indemnities: Required insurance coverage and indemnification obligations
12. Warranties and Defects Liability: Warranty periods, defects correction procedures, and quality guarantees
13. Termination: Grounds and procedures for contract termination by either party
14. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions
15. Force Majeure: Provisions for handling unforeseen circumstances and their impact on the contract
16. Governing Law: Specification of Nigerian law as governing law and relevant jurisdiction
1. Environmental Protection: Special environmental requirements and compliance measures, used when project has significant environmental impact
2. Local Content Requirements: Provisions for local workforce and material usage, required for projects subject to Nigerian local content laws
3. Performance Bond: Requirements for performance security, used for larger construction projects
4. Advance Payment: Terms for advance payment and associated guarantees, used when advance payment is required
5. Subcontractors: Provisions governing the use and management of subcontractors, used when subcontracting is anticipated
6. Equipment and Temporary Works: Provisions for construction equipment and temporary structures, used for complex projects
7. Site Security: Special security requirements, used for projects in sensitive or high-risk areas
8. Intellectual Property Rights: Protection of design rights and other IP, used when custom designs are involved
1. Schedule 1 - Construction Drawings and Specifications: Detailed technical drawings and specifications for the construction work
2. Schedule 2 - Bill of Quantities: Itemized list of materials, labor, and costs
3. Schedule 3 - Construction Schedule: Detailed timeline of construction activities and milestones
4. Schedule 4 - Payment Schedule: Detailed breakdown of payment installments and timing
5. Schedule 5 - Quality Control Requirements: Specific quality standards, testing procedures, and acceptance criteria
6. Schedule 6 - Site Information: Details about the construction site, including surveys and existing conditions
7. Schedule 7 - Required Permits and Approvals: List of necessary regulatory permits and approvals
8. Schedule 8 - Key Personnel: List of key project personnel and their responsibilities
9. Appendix A - Insurance Requirements: Detailed insurance specifications and coverage requirements
10. Appendix B - Forms of Guarantees and Bonds: Ƶ for required guarantees and bonds
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