The Prime Contractor Agreement is a fundamental document used in construction projects in Hong Kong when an owner/employer wishes to engage a single main contractor to take overall responsibility for the execution of construction works. This agreement is essential for projects where centralized responsibility and clear risk allocation are required, particularly in commercial, industrial, or infrastructure developments. It incorporates Hong Kong's specific regulatory requirements, including compliance with the Buildings Ordinance, Construction Industry Council regulations, and local safety standards. The document typically includes detailed provisions for project execution, payment mechanisms, quality control, and dispute resolution, while allowing flexibility to accommodate project-specific requirements. It serves as the primary contract document governing the relationship between the project owner and the main contractor, establishing clear lines of responsibility and performance expectations.
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1. Parties: Identification of the employer and prime contractor, including registered addresses and company details
2. Background: Context of the project and basis for the agreement
3. Definitions and Interpretation: Defined terms, rules of interpretation, and governing language
4. Scope of Works: Detailed description of the works to be performed by the contractor
5. Contract Price and Payment: Payment terms, mechanism, and conditions for payment
6. Project Timeline: Commencement date, completion date, and key milestones
7. Contractor's Obligations: Key responsibilities including quality, safety, and compliance requirements
8. Employer's Obligations: Responsibilities of the employer including site access and information provision
9. Variations: Process for handling changes to scope, price, or timeline
10. Quality and Inspection: Quality standards, testing requirements, and inspection procedures
11. Health, Safety and Environment: HSE requirements and compliance with Hong Kong regulations
12. Insurance and Indemnities: Required insurance coverage and indemnification provisions
13. Default and Termination: Events of default, termination rights, and consequences
14. Dispute Resolution: Dispute resolution procedures including mediation and arbitration
15. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. Performance Security: Required when employer needs performance bond or parent company guarantee
2. Intellectual Property Rights: Needed when project involves significant design elements or proprietary technology
3. Environmental Requirements: Additional section for projects with specific environmental impacts or requirements
4. Local Content Requirements: Include when project has specific local content or employment obligations
5. Force Majeure: Detailed force majeure provisions for high-risk or long-term projects
6. Liquidated Damages: Specific LD provisions for delay or performance shortfalls
7. Defects Liability: Extended defects liability provisions for complex construction works
8. Step-In Rights: Required for critical infrastructure or public works projects
9. Security of Payment: Additional payment security provisions for high-value contracts
10. Building Information Modeling: Include for projects requiring BIM implementation
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Contract Price and Payment Schedule: Detailed breakdown of prices and payment milestones
3. Schedule 3 - Project Timeline: Detailed program of works including key dates and milestones
4. Schedule 4 - Site Information: Site details, access points, and existing conditions
5. Schedule 5 - Key Personnel: List of key personnel from both parties and their roles
6. Schedule 6 - Forms and Procedures: Standard forms for variations, certificates, and notices
7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and minimum coverage
8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental requirements
9. Schedule 9 - Quality Assurance Plan: Quality management procedures and requirements
10. Schedule 10 - Subcontractors: List of approved subcontractors and their scope
11. Appendix A - Performance Security Forms: Templates for bonds and guarantees
12. Appendix B - Testing and Commissioning: Detailed testing and commissioning procedures
Relevant legal definitions
Clauses
Relevant Industries
Construction
Infrastructure
Real Estate Development
Commercial Property
Industrial Development
Residential Development
Energy
Transportation
Healthcare Facilities
Education Facilities
Retail Development
Hospitality
Data Centers
Manufacturing Facilities
Public Works
Relevant Teams
Legal
Operations
Commercial
Procurement
Project Management
Risk Management
Finance
Technical
Health Safety and Environment
Quality Assurance
Design
Construction
Contract Administration
Claims Management
Relevant Roles
Project Director
Construction Manager
Contract Manager
Legal Counsel
Project Manager
Commercial Director
Chief Executive Officer
Operations Director
Risk Manager
Procurement Manager
Quality Assurance Manager
HSE Manager
Finance Director
Technical Director
Site Manager
Quantity Surveyor
Cost Controller
Claims Manager
Design Manager
Commercial Manager
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