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Prime Contractor Agreement Template for England and Wales

A Prime Contractor Agreement is a comprehensive legal document governed by the laws of England and Wales that establishes the contractual relationship between an employer/client and a main contractor. It sets out the terms and conditions for project delivery, including scope of works, payment terms, programme requirements, and risk allocation. The agreement incorporates key legislative requirements from UK construction law and provides a framework for project execution and dispute resolution.

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What is a Prime Contractor Agreement?

The Prime Contractor Agreement is essential for projects where a single contractor takes primary responsibility for delivering works. Used extensively across construction and engineering sectors in England and Wales, this agreement defines the contractual framework between the employer and the prime contractor. It typically includes detailed provisions for scope, payment, programme, variations, and risk allocation, while ensuring compliance with UK construction legislation including the Construction Act 1996 and CDM Regulations 2015. The agreement is particularly crucial for managing complex projects where coordination of multiple subcontractors is required.

What sections should be included in a Prime Contractor Agreement?

1. Parties: Identifies and defines the contracting parties - the client/employer and the prime contractor

2. Background: Sets out context and purpose of the agreement, including project overview

3. Definitions and Interpretation: Defines key terms used throughout the agreement and rules of interpretation

4. Scope of Works: Details the works to be performed by the Prime Contractor, including general obligations

5. Contract Price and Payment: Specifies pricing, payment schedule, payment mechanisms, and provisions for late payment

6. Programme and Completion: Timeframes, milestones, completion requirements, and extension of time provisions

7. Contractor Obligations: Key responsibilities including quality standards, compliance with laws, and health and safety

8. Client Obligations: Key responsibilities including site access, approvals, and information provision

9. Variations: Process for managing changes to scope, specifications or contract terms

10. Testing and Completion: Requirements for testing, commissioning, and achieving practical completion

11. Defects: Handling of defects, defects liability period, and rectification obligations

12. Insurance and Liability: Insurance requirements and liability limitations

13. Termination: Grounds and process for contract termination and consequences

14. Dispute Resolution: Procedures for resolving disputes including mediation and arbitration

15. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

What sections are optional to include in a Prime Contractor Agreement?

1. Design Responsibility: Detailed provisions for contractor's design obligations and professional indemnity requirements - used when contractor has design responsibilities

2. Value Engineering: Process for contractor to suggest cost optimization measures - typically used in complex or high-value projects

3. Performance Security: Requirements for performance bonds or parent company guarantees - used when additional financial security is required

4. Subcontracting: Detailed provisions for appointment and management of subcontractors - used when subcontracting is anticipated

5. BIM Protocol: Building Information Modeling requirements and protocols - used when BIM is required for the project

6. Environmental Requirements: Specific environmental obligations and sustainability requirements - used for projects with significant environmental impact

What schedules should be included in a Prime Contractor Agreement?

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

2. Schedule 2 - Programme: Detailed timeline, milestone dates, and critical path requirements

3. Schedule 3 - Payment Schedule: Detailed payment terms, rates, and mechanisms including milestone payments

4. Schedule 4 - Key Personnel: Lists key staff and their roles, including qualification requirements

5. Schedule 5 - Site Information: Details about the construction site, access requirements, and existing conditions

6. Schedule 6 - Forms of Securities: Template documents for required bonds, warranties, and guarantees

7. Schedule 7 - Insurance Requirements: Detailed insurance specifications including types and levels of coverage

8. Schedule 8 - Quality Management Plan: Quality assurance and control requirements and procedures

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

Jurisdiction

England and Wales

Cost

Free to use

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