The Standard Form of Agreement Between Owner and Contractor serves as the primary contract document for construction projects in Nigeria, establishing the legal and commercial framework for project execution. This agreement is typically used when a project owner needs to engage a main contractor for construction works, whether for new builds, renovations, or infrastructure projects. It includes comprehensive provisions for project execution, payment mechanisms, quality control, and risk allocation, while ensuring compliance with Nigerian construction laws, environmental regulations, and local content requirements. The document is designed to be adaptable to various project sizes and types while maintaining consistency with Nigerian legal requirements and construction industry best practices. It provides essential protection for both parties' interests through clear delineation of responsibilities, robust dispute resolution mechanisms, and standard industry procedures for contract administration.
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1. Parties: Identification and details of the Owner and Contractor, including registration numbers and addresses
2. Background: Context of the agreement, project overview, and basis for the contractual relationship
3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpreting the contract
4. Scope of Work: Detailed description of the work to be performed by the Contractor
5. Contract Price and Payment: Amount payable, payment schedule, payment terms, and invoicing requirements
6. Project Timeline: Commencement date, completion date, project milestones, and extension provisions
7. Contractor's Obligations: Key responsibilities and duties of the Contractor including quality standards
8. Owner's Obligations: Key responsibilities and duties of the Owner including site access and approvals
9. Materials and Workmanship: Standards for materials, quality requirements, and workmanship specifications
10. Variations and Changes: Process for handling changes to scope, pricing, or timeline
11. Health and Safety: Safety requirements, protocols, and responsibilities
12. Insurance and Indemnity: Required insurance coverage and indemnification obligations
13. Defects Liability: Defects notification period, remediation process, and warranties
14. Suspension and Termination: Grounds and process for suspension or termination of the contract
15. Dispute Resolution: Process for resolving disputes including mediation and arbitration
16. General Provisions: Standard contractual provisions including notices, governing law, and assignment
1. Performance Security: Requirements for performance bonds or guarantees, used for high-value projects
2. Local Content Requirements: Specific provisions for local content compliance, required for oil/gas sector projects
3. Environmental Management: Detailed environmental requirements, needed for environmentally sensitive projects
4. Advance Payment: Terms for advance payments and associated guarantees, used when advance funding is required
5. Force Majeure: Provisions for unforeseen circumstances, recommended for long-term projects
6. Intellectual Property: IP rights and obligations, needed for projects involving design or technology elements
7. Liquidated Damages: Pre-agreed damages for delays or performance failures, used for time-critical projects
8. Quality Management System: Detailed quality management requirements, for complex technical projects
9. Subcontracting: Rules and restrictions on subcontracting, for projects allowing subcontractors
1. Schedule 1 - Scope of Works: Detailed technical specifications and scope breakdown
2. Schedule 2 - Contract Price Breakdown: Detailed pricing, rates, and payment milestones
3. Schedule 3 - Project Timeline: Detailed program of works and milestone dates
4. Schedule 4 - Key Personnel: List of key personnel from both parties and their roles
5. Schedule 5 - Technical Specifications: Detailed technical requirements and standards
6. Schedule 6 - Site Information: Site details, access requirements, and existing conditions
7. Schedule 7 - Forms and Procedures: Standard forms for variations, payments, and certificates
8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and coverage limits
9. Appendix A - Drawings: Project drawings and design documents
10. Appendix B - Permits and Approvals: Required permits and regulatory approvals
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