Real Estate Construction Contract Template for England and Wales

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Real Estate Construction Contract

"I need a Real Estate Construction Contract for a new residential development project in Manchester, with a contract value of £5.2 million and completion date of March 2025, including specific provisions for sustainable building materials and renewable energy systems."

What is a Real Estate Construction Contract?

The Real Estate Construction Contract is essential for any construction project in England and Wales, providing a comprehensive framework for the relationship between the employer and contractor. It is typically used when undertaking new builds, renovations, or major structural alterations. The contract addresses crucial aspects including payment mechanisms, quality standards, project timeline, risk allocation, and dispute resolution procedures. It ensures compliance with key legislation such as the Housing Grants, Construction and Regeneration Act 1996 and Construction (Design and Management) Regulations 2015, while protecting the interests of all parties involved.

What sections should be included in a Real Estate Construction Contract?

1. Parties: Identification of the Employer and Contractor, including full legal names and addresses

2. Background: Context of the construction project and purpose of the agreement

3. Definitions: Key terms used throughout the contract including relevant legislation such as HGCRA 1996, Building Act 1984, and CDM Regulations 2015

4. Scope of Works: Detailed description of construction works to be performed, including compliance with Building Regulations and relevant standards

5. Contract Sum: Agreed price, payment terms, and provisions under the Late Payment of Commercial Debts Act 1998

6. Programme: Project timeline, completion dates, and key milestones

7. Contractor Obligations: Core responsibilities including CDM duties, health and safety obligations, and quality standards under relevant legislation

8. Employer Obligations: Core responsibilities including site access, permits, and statutory compliance

9. Insurance and Liability: Required insurance coverage under Employers' Liability Act and professional indemnity requirements

10. Termination: Circumstances and procedures for contract termination

What sections are optional to include in a Real Estate Construction Contract?

1. Design Responsibility: Allocation of design responsibilities and compliance with Building Regulations

2. Performance Bonds: Requirements for performance security and bonding arrangements

3. Liquidated Damages: Pre-agreed damages for delay or performance failure

4. Parent Company Guarantee: Guarantee provisions from contractor's parent company

5. Environmental Compliance: Specific obligations under Environmental Protection Act and pollution control regulations

What schedules should be included in a Real Estate Construction Contract?

1. Schedule of Works: Detailed specification of construction works and compliance requirements

2. Programme Schedule: Detailed project timeline and milestones

3. Payment Schedule: Payment amounts, dates, and mechanisms compliant with HGCRA

4. Drawing Schedule: List of all relevant construction drawings and specifications

5. Schedule of Rates: Agreed rates for variations or additional works

6. Insurance Schedule: Details of required insurance policies and coverage levels

7. CDM Requirements: Health and safety documentation and compliance requirements

8. Quality Standards: Specified quality requirements and applicable British Standards

9. Site Information: Details about the construction site, conditions, and any Party Wall considerations

Authors

Alex Denne

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Residential Construction
Commercial Real Estate
Industrial Development
Mixed-use Development
Healthcare Facilities
Educational Institutions
Retail Development
Hospitality Sector

Relevant Teams

Legal
Construction
Commercial
Property Development
Project Management
Procurement
Risk Management
Finance
Operations
Technical Services

Relevant Roles

Construction Manager
Project Director
Commercial Director
Legal Counsel
Contract Manager
Development Manager
Property Director
Quantity Surveyor
Site Manager
Procurement Manager

Industries

Housing Grants, Construction and Regeneration Act 1996: Core construction legislation covering payment provisions, statutory adjudication rights, and notice requirements for construction contracts

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract and their rights under construction contracts

Building Act 1984: Primary legislation for building regulations compliance and health and safety requirements in construction

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

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

Defective Premises Act 1972: Sets out quality standards and fitness for habitation requirements for construction works

Supply of Goods and Services Act 1982: Establishes standards for quality of materials and workmanship in construction contracts

Party Wall etc. Act 1996: Legislation governing works affecting neighboring properties and party wall considerations

Health and Safety at Work etc. Act 1974: Primary legislation for workplace health and safety requirements in construction

Working at Height Regulations 2005: Specific regulations for managing work at height in construction projects

Control of Substances Hazardous to Health Regulations 2002: Regulations governing the use and handling of hazardous substances in construction

Environmental Protection Act 1990: Primary environmental legislation affecting construction activities and waste management

Control of Pollution Act 1974: Legislation controlling pollution aspects of construction works

Town and Country Planning Act 1990: Primary planning legislation affecting construction projects

Planning and Compulsory Purchase Act 2004: Additional planning legislation relevant to construction projects

Building Regulations: Current technical requirements and standards for building works

Employers' Liability (Compulsory Insurance) Act 1969: Mandatory insurance requirements for construction employers

Standard Form Contracts: Industry-standard contract forms such as JCT and NEC, commonly used in construction projects

Common Law Principles: Established legal principles from case law affecting construction contracts

Local Authority Requirements: Specific local planning and building control requirements affecting construction projects

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Let's create your Real Estate Construction Contract

What is a Real Estate Construction Contract?

What sections should be included in a Real Estate Construction Contract?

What sections are optional to include in a Real Estate Construction Contract?

What schedules should be included in a Real Estate Construction Contract?

Authors

Alex Denne

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