Construction Contract Agreement Form - England and Wales

Construction Contract Agreement Form for the United Kingdom

Construction Contract Agreement Form Template for England and Wales

A Construction Contract Agreement Form is a legally binding document governed by the laws of England and Wales that establishes the terms and conditions between an employer and a contractor for construction works. It details the scope of work, payment terms, timeline, quality standards, and obligations of all parties involved. The agreement incorporates requirements from the Construction Act 1996 and relevant regulations, including payment mechanisms, dispute resolution procedures, and health and safety obligations.

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What is a Construction Contract Agreement Form?

The Construction Contract Agreement Form is essential for any construction project in England and Wales, providing a comprehensive framework for the relationship between employers and contractors. This document is crucial when undertaking any significant construction work, whether commercial, residential, or industrial. It incorporates mandatory provisions from the Housing Grants, Construction and Regeneration Act 1996, CDM Regulations 2015, and other relevant legislation. The agreement covers essential elements including scope of works, payment terms, programme, variations, and dispute resolution procedures, while ensuring compliance with English and Welsh construction law requirements.

What sections should be included in a Construction Contract Agreement Form?

1. Parties: Identification and details of the contracting parties (employer and contractor)

2. Background: Context of the construction project and purpose of the agreement

3. Definitions: Key terms used throughout the contract

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

5. Contract Sum: Price, payment terms, and mechanism for variations

6. Programme and Completion: Project timeline, completion dates, and liquidated damages

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

8. Employer Obligations: Key responsibilities and duties of the employer

9. Insurance and Liability: Required insurance coverage and liability provisions

10. Termination: Circumstances and procedures for contract termination

What sections are optional to include in a Construction Contract Agreement Form?

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

2. Performance Bond: Requirements for performance security in high-value projects or where risk mitigation is required

3. Parent Company Guarantee: Additional security from contractor's parent company when dealing with subsidiary companies

4. Collateral Warranties: Third-party rights and warranties when third-party beneficiaries are involved

What schedules should be included in a Construction Contract Agreement Form?

1. Schedule of Works: Detailed specification of construction works

2. Programme: Detailed timeline and milestone dates

3. Payment Schedule: Breakdown of payments and milestone payments

4. Site Information: Details about the construction site and conditions

5. Drawing Schedule: List of all relevant drawings and specifications

6. Insurance Requirements: Detailed insurance specifications and levels

7. Form of Bonds/Guarantees: Templates for required security documents

8. Quality Standards: Specific quality requirements and standards

Authors

Alex Denne

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

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Free to use

Relevant legal definitions

Clauses

Relevant Industries

Commercial Construction
Residential Development
Infrastructure
Industrial Construction
Public Sector Construction
Healthcare Construction
Education Construction
Retail Development

Relevant Teams

Legal
Construction
Commercial
Operations
Procurement
Project Management
Risk Management
Finance
Compliance
Technical Services

Relevant Roles

Construction Manager
Project Director
Commercial Director
Contracts Manager
Quantity Surveyor
Project Manager
Construction Director
Legal Counsel
Risk Manager
Procurement Manager

Industries

Construction Act 1996: Housing Grants, Construction and Regeneration Act 1996, as amended by the Local Democracy, Economic Development and Construction Act 2009. Covers payment provisions, adjudication rights, and notice requirements.

Supply of Goods and Services Act 1982: Governs the quality of work and requirements for reasonable care and skill in construction contracts.

Contracts (Rights of Third Parties) Act 1999: Regulates third-party rights and their ability to enforce terms of the construction contract.

Late Payment of Commercial Debts Act 1998: Sets out payment terms and interest provisions for late payments in commercial contracts.

CDM Regulations 2015: Construction (Design and Management) Regulations covering health and safety requirements, principal contractor duties, and client obligations.

Public Contracts Regulations 2015: Regulations governing public sector construction projects and procurement processes.

Building Regulations 2010: Sets standards for building work and compliance requirements in construction projects.

Standard Form Contracts: Industry standard forms such as JCT (Joint Contracts Tribunal) or NEC (New Engineering Contract) serving as reference points.

Common Law Principles: Legal principles regarding contract formation, breach, damages, and variations established through case law.

Party Wall Act 1996: Legislation governing works affecting party walls and adjacent properties.

Health and Safety at Work Act 1974: Primary legislation for workplace health and safety requirements in construction projects.

Environmental Regulations: Various environmental protection requirements and compliance standards for construction works.

VAT and Tax Regulations: Tax implications and VAT requirements specific to construction contracts and projects.

Insurance Requirements: Mandatory and recommended insurance coverage for construction projects including professional indemnity and contractors all-risk insurance.

Planning Legislation: Requirements for obtaining necessary planning permissions and complying with local planning regulations.

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What is a Construction Contract Agreement Form?

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What sections are optional to include in a Construction Contract Agreement Form?

What schedules should be included in a Construction Contract Agreement Form?

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