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Construction Operating Agreement Template for England and Wales

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Key Requirements PROMPT example:

Construction Operating Agreement

"I need a Construction Operating Agreement for a large commercial building project in Manchester, where we'll be managing multiple subcontractors and requiring specific provisions for crane operations and high-rise construction safety protocols, with the agreement to commence from March 2025."

What is a Construction Operating Agreement?

The Construction Operating Agreement is essential for projects requiring detailed operational procedures in England and Wales. It's particularly relevant when multiple parties need clear guidelines for day-to-day construction activities, safety protocols, and regulatory compliance. This agreement type addresses key operational aspects including site management, safety procedures, reporting requirements, and interface management between different contractors. It ensures compliance with UK construction legislation while providing a framework for efficient project delivery.

What sections should be included in a Construction Operating Agreement?

1. Parties: Identification and details of all contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Scope of Works: Detailed description of construction operations covered

5. Operating Procedures: Standard procedures for daily operations

6. Health and Safety: Safety requirements and procedures in accordance with Health and Safety at Work Act 1974 and CDM Regulations 2015

7. Payment Terms: Payment structure, timing, and mechanisms as per Construction Act 1996

8. Term and Termination: Duration and termination provisions

What sections are optional to include in a Construction Operating Agreement?

1. Environmental Management: Environmental compliance procedures - include when project has significant environmental impact

2. Interface Management: Managing interactions with other contractors - include when multiple contractors are involved

3. Technology Requirements: Specific technology or systems requirements - include when specialized equipment or systems are involved

What schedules should be included in a Construction Operating Agreement?

1. Schedule of Rates: Detailed pricing and rate information

2. Site Rules: Specific rules and procedures for site operations

3. Equipment Schedule: List of equipment to be used and maintenance requirements

4. Key Personnel: Details of key staff and their responsibilities

5. Performance Standards: Specific performance metrics and requirements

6. Insurance Requirements: Details of required insurance coverage

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Construction Act 1996: Housing Grants, Construction and Regeneration Act - covers payment provisions, adjudication rights, and notice requirements for construction contracts

Local Democracy, Economic Development and Construction Act 2009: Provides important amendments to the Construction Act 1996, updating various provisions for modern construction practices

CDM Regulations 2015: Construction (Design and Management) Regulations governing health and safety requirements, principal contractor duties, and client obligations in construction projects

Building Act 1984: Primary legislation governing building works and control, setting out basic requirements for construction projects

Building Regulations 2010: Detailed technical requirements and standards for building works, ensuring compliance with safety and performance standards

Health and Safety at Work Act 1974: Fundamental health and safety legislation establishing general safety obligations and risk management requirements

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing payment terms and interest on late payments in commercial contracts

Contracts (Rights of Third Parties) Act 1999: Legislation allowing third parties to enforce terms of contracts in certain circumstances

Environmental Protection Act 1990: Environmental legislation affecting construction operations and waste management

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

JCT Standards: Joint Contracts Tribunal standard forms and guidance for construction contracts

NEC Framework: New Engineering Contract principles and standardized contracts for construction projects

FIDIC Principles: International Federation of Consulting Engineers contract principles applicable to construction projects

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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