Building and construction works contract template

Building and Construction Works Contract

Parties: Contractor · Client

1. Purpose

This contract sets out the terms on which the Contractor carries out the building and construction works described below for the Client, and what each party must do for the project.

2. Works and documents

The Contractor carries out the following works at the site stated here:

[[Describe the works, e.g. new house, extension, structural work]]

Site address: [[Address of the site]]

The works are described in these documents: [[List of plans, specifications and quantities, with their dates]]

If the documents conflict, the later and more detailed one applies, and the Contractor points out any conflict it notices before it starts the work concerned. Work that is not described in them is outside this contract unless the parties agree it as a variation.

3. Licences, permits and approvals

The Contractor confirms that it holds the licences, registrations and qualifications that the law that applies requires for these works: [[Licence or registration details, or none required]] It keeps them in force until handover.

The building permission and the other approvals needed for the works are obtained by [[the Client / the Contractor]] and paid for by [[the Client / the Contractor]]. The works start only when the permits that the law requires before starting are in place, and the parties give each other the documents the authorities ask for without delay.

4. Site, access and safety

The Client gives the Contractor access to the site from the start date and provides water and electricity as follows: [[Utilities available on site and who pays for them]] The Client also tells the Contractor what it knows about the ground, existing structures, pipes, cables and other conditions on the site.

The Contractor is responsible for the way it carries out the works, for the safety of its staff and subcontractors on the site and for protecting neighbours and passers-by, as the safety rules that apply require. It keeps the site secure and reasonably tidy, removes its waste lawfully and reports any accident on the site to the Client without delay.

5. Programme and delays

The Contractor starts the works on [[Start date]] and completes them by [[Completion date]]. It tells the Client within [[7]] days of becoming aware that the time needs to be extended, and why.

The time is extended by the length of a delay caused by the Client, by late permits or decisions, by variations, by weather that prevents the work or by other causes outside the Contractor’s control. If the Contractor is late for other reasons, [[no compensation for delay / the Client may deduct the amount stated here per day or week: Amount]], as far as the law that applies allows.

6. Price and payment

The Client pays the price shown in the price schedule of this contract. The price is [[a fixed price / an estimate that is settled on the work actually measured]] and excludes tax unless the price schedule says otherwise.

Payment is made in these stages: [[Payment stages, e.g. 20% on signing, stage payments on completed milestones, balance on handover]]

The Client may hold back [[Percentage held back, or none]] of the price until [[the end of the defects period / handover]]. If a payment is more than [[14]] days late, the Contractor may stop work after notifying the Client until it is paid, as far as the law that applies allows.

7. Variations and hidden conditions

Either party may ask for a change to the works. The Contractor tells the Client in writing or in electronic form what the change costs and how it affects the time, and carries it out only when the Client has approved it in the same way.

If the Contractor finds conditions that could not reasonably have been foreseen, such as unexpected ground conditions or hidden defects in an existing structure, it stops the affected work, tells the Client at once and proposes how to deal with them, at what cost and with what delay. Where it is necessary to keep people safe or to prevent damage, the Contractor may act at once without approval and tells the Client afterwards.

8. Materials and subcontractors

The Contractor uses new materials and fittings of the quality described in the documents, or equal ones, and carries out the works with the care and skill expected of a competent contractor and in line with the rules and standards that apply to them.

The Contractor may use subcontractors. It remains responsible to the Client for their work, makes sure they hold the licences the law requires for their part and pays them on time.

9. Completion and handover

The Contractor tells the Client when the works are complete. The parties then inspect them together within [[7]] days and record minor defects in a list. The Client accepts the works or states in writing or in electronic form the defects that prevent acceptance, and the Contractor corrects them without delay.

At handover the Contractor gives the Client the keys, the drawings of the work as built, the instructions for the installed equipment and the certificates that the law requires. The risk of damage to the works passes to the Client at handover. The Client may not refuse to accept the works because of minor defects that do not affect their use.

10. Defects and warranty

The Contractor corrects, free of charge and within a reasonable time, defects that are caused by its work or its materials and that the Client reports within the defects period of [[12]] months from handover, or any longer period that the law that applies requires.

The Contractor’s obligations for defects under the law that applies, including any statutory warranty for building work, remain as that law requires and are not limited by this contract. Damage caused by wear and tear, misuse, lack of maintenance or the work of others is not covered.

11. Insurance

The Contractor holds insurance for the works and for its liability for damage to people and property caused by the works, with cover of at least [[Amount]] per claim, and gives the Client a certificate before starting. The Client keeps its own insurance for the existing building and its contents and tells its insurer about the works. Each party tells the other without delay of any claim or event that could affect the cover.

12. Termination

Either party may terminate this contract by notice in writing or in electronic form if the other party seriously breaches it and does not remedy the breach within [[14]] days of being asked to.

The Client may also end the contract at any time on [[30]] days’ notice. In that case it pays for the work done and the materials ordered up to the end date, plus the reasonable costs of winding down, as far as the law that applies allows.

On termination the Contractor makes the site safe, hands over the work done and the documents for it, and the parties settle the account.

13. Liability

Each party is liable for damage it causes, as the law provides. Except for intent, gross negligence, personal injury or where the law does not allow a limitation, the Contractor’s total liability under this contract is limited to [[the contract price / Amount]], and neither party is liable for indirect loss such as lost profit or loss of use.

14. Governing law and disputes

This agreement is governed by the law stated under Governing law. The parties will first try to settle any dispute in good faith. Otherwise the courts stated under Jurisdiction decide, unless mandatory law provides otherwise.

Payment terms

Invoices for each stage are payable within [[14]] days of receipt, by bank transfer to the account stated on the invoice. Invoices for variations are payable on the same terms.

Governing law

[[Country or state whose law applies]]

Jurisdiction

[[Courts that decide disputes, e.g. the courts of your city]]