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Construction Project Agreement for the United Kingdom

Construction Project Agreement Template for England and Wales

A comprehensive legal agreement governed by the laws of England and Wales that establishes the terms and conditions for construction projects. It defines the relationship between the employer and contractor, outlining scope of works, payment terms, timelines, and responsibilities. The agreement incorporates key construction legislation including the Housing Grants, Construction and Regeneration Act 1996 and CDM Regulations 2015, providing a framework for project delivery and risk allocation.

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Construction Project Agreement

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What is a Construction Project Agreement?

The Construction Project Agreement is a fundamental contract used in the construction industry across England and Wales. It serves as the primary agreement between parties undertaking construction works, establishing their respective rights, obligations, and remedies. This document is essential when embarking on any significant construction project, incorporating statutory requirements from relevant legislation and industry standards. The agreement typically covers project scope, payment mechanisms, completion criteria, and risk allocation, while ensuring compliance with English construction law principles.

What sections should be included in a Construction Project Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and project overview

3. Definitions: Key terms used throughout the agreement

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

5. Contract Price and Payment Terms: Financial terms, payment schedule, and mechanisms

6. Programme and Completion: Project timeline, milestones, and completion requirements

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

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

9. Health and Safety: Requirements for site safety and CDM Regulations compliance

10. Insurance and Liability: Insurance requirements and liability allocation

11. Variations: Process for managing changes to the works

12. Termination: Grounds and procedures for contract termination

13. Dispute Resolution: Procedures for resolving disputes including adjudication

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

1. Design Responsibilities: Detailed provisions for contractor design obligations, applicable in design and build contracts

2. Value Engineering: Provisions for cost optimization and efficiency improvements in large complex projects

3. Sectional Completion: Provisions for completing work in sections, used in phased projects

4. Building Information Modelling: BIM protocols and requirements when BIM is being used on the project

5. Sustainable Construction: Environmental and sustainability requirements for projects with specific green building targets

What schedules should be included in a Construction Project Agreement?

1. Schedule 1 - Scope of Works: Detailed specification of works including drawings and technical requirements

2. Schedule 2 - Programme: Detailed project timeline including key dates and milestones

3. Schedule 3 - Site Information: Details about the construction site including surveys and existing conditions

4. Schedule 4 - Pricing Schedule: Detailed breakdown of costs, rates and pricing mechanisms

5. Schedule 5 - Performance Bonds: Form of performance security and bonds required

6. Schedule 6 - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

7. Appendix A - Drawings: Technical drawings, plans and design documents

8. Appendix B - Specifications: Technical specifications, standards and quality requirements

Authors

Alex Denne

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

Jurisdiction

England and Wales

Document Type

Project Agreement

Cost

Free to use
Relevant legal definitions














































Clauses





































Industries

Housing Grants, Construction and Regeneration Act 1996: Primary legislation for construction contracts, including payment provisions and statutory right to adjudication. Amended by Local Democracy, Economic Development and Construction Act 2009.

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract and their rights, particularly relevant for subcontractors and stakeholders.

Supply of Goods and Services Act 1982: Sets standards for quality of work and materials in construction projects, including implied terms about quality and fitness for purpose.

Late Payment of Commercial Debts (Interest) Act 1998: Regulates payment terms and statutory interest on late payments in commercial transactions.

Construction (Design and Management) Regulations 2015: Key health and safety regulations specifying duties of all parties involved in construction projects, including client, contractor, and designers.

Building Act 1984 and Building Regulations 2010: Establishes building standards and regulatory framework for construction works in England and Wales.

Defective Premises Act 1972: Imposes duties on construction professionals to ensure buildings are fit for habitation and addresses liability for defective work.

Environmental Protection Act 1990: Controls environmental impacts of construction activities including waste management and pollution prevention.

Party Wall etc. Act 1996: Provides framework for resolving disputes related to party walls, boundary walls and excavations near neighboring buildings.

Health and Safety at Work etc. Act 1974: Establishes general duties for workplace health and safety, fundamental to construction site management.

Equality Act 2010: Ensures non-discrimination in construction projects, particularly regarding accessibility requirements and employment practices.

Modern Slavery Act 2015: Requires businesses to ensure their supply chains are free from slavery and human trafficking, including in 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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