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.
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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
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
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
Relevant legal definitions
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