The Terminate Building Contract document is essential for properly concluding construction projects in Hong Kong where the contractual relationship needs to be ended before or upon completion. It is used in situations where parties agree to terminate the contract mutually, or where one party exercises their right to terminate under the contract terms. This document ensures compliance with Hong Kong's building regulations and contract law, while addressing crucial aspects such as work handover, payment settlements, and ongoing liabilities. It includes specific provisions required by Hong Kong construction legislation, manages risk allocation between parties, and provides clear procedures for project closure. The document is particularly important for protecting all parties' interests and ensuring a smooth transition in construction projects.
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1. Parties: Identification of all parties to the termination agreement, including the employer and contractor
2. Background: Details of the original building contract, project description, and relevant history
3. Definitions: Key terms used in the termination agreement
4. Termination Statement: Clear statement of contract termination and effective date
5. Grounds for Termination: Specific reasons for termination, referring to relevant clauses in original contract
6. Work Status and Handover: Current status of works, handover procedures, and documentation requirements
7. Financial Settlement: Settlement of accounts, final payments, and retention money
8. Materials and Equipment: Disposition of materials, equipment, and temporary works on site
9. Documentation: Requirements for handover of drawings, specifications, and other project documents
10. Release and Discharge: Mutual release of obligations and claims
11. Surviving Obligations: Obligations that continue after termination (warranties, confidentiality, etc.)
12. Governing Law: Confirmation of Hong Kong law governance and jurisdiction
1. Third Party Rights: Section addressing rights of subcontractors and suppliers, used when significant third-party relationships exist
2. Insurance and Bonds: Provisions for insurance policies and performance bonds, included when these need specific handling
3. Intellectual Property: IP rights transfer or retention, used when significant design or technical elements are involved
4. Environmental Compliance: Environmental obligations and responsibilities, included for projects with significant environmental impact
5. Confidentiality: Detailed confidentiality provisions, used when sensitive information is involved
6. Dispute Resolution: Specific dispute resolution procedures, included when standard provisions need modification
7. Employee Matters: Provisions regarding site personnel and workers, used when direct employment issues exist
1. Schedule 1 - Project Details: Details of the construction project, including location, scope, and contract reference
2. Schedule 2 - Outstanding Works: List of incomplete works and their status at termination
3. Schedule 3 - Financial Statement: Detailed breakdown of final account, including payments made and outstanding
4. Schedule 4 - Site Materials Inventory: Inventory of materials and equipment on site
5. Schedule 5 - Required Handover Documentation: List of documents, certificates, and warranties to be handed over
6. Appendix A - Site Handover Protocol: Detailed procedures for site handover
7. Appendix B - Form of Release: Template for mutual release documentation
8. Appendix C - Outstanding Claims Schedule: List of any outstanding claims and their status
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