A Construction Settlement Agreement is utilized when parties involved in a construction project need to resolve disputes or claims without resorting to formal litigation or arbitration. This document, governed by English and Welsh law, provides a structured framework for settling various issues such as payment disputes, delay claims, defective works, or variations. It includes essential elements such as settlement sum, release of claims, ongoing obligations, and future responsibilities. The agreement ensures compliance with construction legislation while offering a cost-effective and efficient resolution to construction disputes.
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1. Parties: Identification and details of all parties to the settlement
2. Background: Context of the dispute and construction project details
3. Definitions: Key terms used throughout the agreement
4. Settlement Sum: Agreed payment amount and payment terms
5. Release of Claims: Scope of claims being settled and released
6. Confidentiality: Terms regarding confidentiality of the settlement
7. Governing Law: Jurisdiction and applicable law
1. Ongoing Obligations: Continuing responsibilities of parties, used when project work continues post-settlement
2. Third Party Rights: Rights of third parties affected by the settlement
3. Insurance Provisions: Insurance-related terms and obligations
4. Non-Disparagement: Restrictions on parties making negative statements about each other
1. Schedule of Outstanding Works: List of any remaining works to be completed
2. Schedule of Payments: Breakdown of settlement payments and timing
3. Schedule of Released Claims: Detailed list of claims being settled
4. Schedule of Documents: Key project documents referenced in settlement
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