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Commercial Construction Agreement Template for England and Wales

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Key Requirements PROMPT example:

Commercial Construction Agreement

"I need a Commercial Construction Agreement for a £5M office building project in Manchester, where we'll be the main contractor responsible for both construction and some design elements, with completion required by March 2025."

Document background
The Commercial Construction Agreement is essential for any significant construction project in England and Wales. It provides a comprehensive framework for managing construction projects, protecting both parties' interests, and ensuring compliance with relevant legislation. This agreement is particularly important as it addresses key aspects such as payment mechanisms, dispute resolution, and health and safety requirements. The document should be tailored to specific project requirements while maintaining compliance with statutory requirements such as the Housing Grants, Construction and Regeneration Act 1996 and CDM Regulations 2015.
Suggested Sections

1. Parties: Identifies and defines the contracting parties

2. Background: Sets out context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Works: Detailed description of construction works to be performed

5. Contract Price and Payment Terms: Payment amounts, mechanisms, and schedules

6. Programme and Completion: Timing, completion dates, and delay provisions

7. Contractor Obligations: Key responsibilities and duties of the contractor

8. Employer Obligations: Key responsibilities and duties of the employer

9. Insurance and Liability: Insurance requirements and liability allocation

10. Termination: Circumstances and processes for contract termination

Optional Sections

1. Design Responsibility: Required when contractor has design obligations in design and build contracts

2. Performance Bonds: Security for performance, typically used in high-value projects or where required by employer

3. Parent Company Guarantee: Additional security from contractor's parent company, used when contractor is subsidiary of larger group

4. Liquidated Damages: Pre-agreed damages for delay, used when specific completion date is crucial

Suggested Schedules

1. Schedule of Works: Detailed specification of construction works

2. Programme: Detailed timeline of works

3. Payment Schedule: Breakdown of payments and milestone dates

4. Site Information: Details about the construction site

5. Forms of Bonds/Guarantees: Standard forms for any required security

6. Insurance Requirements: Detailed insurance specifications

7. Design Drawings: Technical drawings and specifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Housing Grants, Construction and Regeneration Act 1996: Core construction legislation covering payment provisions, statutory right to adjudication, and payment notice requirements. Amended by Local Democracy, Economic Development and Construction Act 2009.

Supply of Goods and Services Act 1982: Governs quality of work standards and establishes the requirement for reasonable care and skill in construction services.

Construction (Design and Management) Regulations 2015: Regulates health and safety in construction, including specific duties for principal contractors and client obligations.

Late Payment of Commercial Debts (Interest) Act 1998: Establishes framework for payment terms and statutory interest on late payments in commercial contracts.

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract to which they are not a direct party.

Defective Premises Act 1972: Imposes duties regarding the quality of workmanship and materials in construction of dwellings.

Building Act 1984: Primary legislation governing building works and setting framework for Building Regulations.

Building Regulations 2010: Detailed technical requirements for construction works ensuring buildings meet health, safety, welfare and sustainability standards.

Party Wall etc. Act 1996: Provides framework for resolving disputes related to party walls, boundary walls and excavations near neighboring buildings.

Environmental Protection Act 1990: Controls environmental impact of construction activities including waste management and pollution control.

Common Law - Liquidated Damages: Legal principle governing predetermined damages for specific breaches of contract.

Common Law - Time of the Essence: Legal principle determining when time stipulations in construction contracts are strictly enforced.

Common Law - Variations: Principles governing changes to scope of works and contract terms during construction.

Common Law - Retention Rights: Legal principles governing the withholding of payment as security for performance.

Common Law - Set-off Rights: Legal principles governing the right to deduct cross-claims from payments due under the contract.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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