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.
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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
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
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
Relevant legal definitions
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