The New Construction Agreement is a fundamental legal document used in Nigeria when engaging contractors for new building or infrastructure projects. It serves as the primary contract between the project owner/employer and the construction contractor, establishing their legal relationship and project parameters. This agreement is essential for any new construction project in Nigeria, whether commercial, residential, or industrial, and must comply with various Nigerian regulations including the Public Procurement Act, National Building Code, and Environmental Impact Assessment Act. The document typically includes detailed specifications, timelines, payment structures, and quality requirements, while incorporating necessary provisions for local content requirements and environmental protection measures specific to Nigerian law.
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1. Parties: Identification of the contracting parties - employer/owner and contractor
2. Background: Context of the agreement and brief project overview
3. Definitions and Interpretation: Definitions of key terms and interpretation rules
4. Scope of Work: Detailed description of construction works to be performed
5. Contract Price and Payment Terms: Price, payment schedule, and payment mechanisms
6. Project Timeline: Commencement date, completion date, and key milestones
7. Contractor Obligations: Key responsibilities and obligations of the contractor
8. Employer Obligations: Key responsibilities and obligations of the employer
9. Materials and Workmanship: Quality standards and specifications for materials and work
10. Variations: Process for handling changes to scope or specifications
11. Health and Safety: Safety requirements and responsibilities
12. Insurance and Indemnities: Required insurance coverage and indemnification provisions
13. Default and Termination: Events of default and termination procedures
14. Dispute Resolution: Process for resolving disputes between parties
15. Force Majeure: Provisions for unforeseen circumstances and their handling
16. Governing Law: Specification of Nigerian law as governing law
17. General Provisions: Standard boilerplate clauses including notices, amendments, etc.
1. Environmental Protection: Required for projects with significant environmental impact or when specifically required by regulations
2. Local Content Requirements: Required for projects subject to Nigerian local content laws
3. Performance Bond: Include when contractor is required to provide performance security
4. Advance Payment: Include when advance payments are part of the payment structure
5. Defects Liability Period: Include for projects requiring extended warranty periods
6. Subcontracting: Include when subcontracting will be permitted
7. Intellectual Property: Include when design or technological elements are involved
8. Site Security: Include for projects in sensitive or high-risk areas
9. Testing and Commissioning: Include for projects requiring specific testing procedures
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Project Timeline: Detailed project schedule with milestones
3. Schedule 3 - Price Schedule: Detailed breakdown of contract price and payment schedule
4. Schedule 4 - Site Information: Details about the construction site and conditions
5. Schedule 5 - Quality Standards: Specific quality requirements and standards
6. Schedule 6 - Required Insurances: Details of required insurance coverage
7. Schedule 7 - Forms of Certificates: Templates for various certificates (completion, payment, etc.)
8. Schedule 8 - Key Personnel: List of key personnel from both parties
9. Appendix A - Health and Safety Requirements: Detailed health and safety procedures
10. Appendix B - Environmental Management Plan: Environmental protection measures and requirements
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